Sats Asa · OSL:SATS
Sats Asa — Investor Day (May 2025)
81 slides from Sats Asa's investor day presentation, May 7, 2025
Slide 1: SATS Capital Markets Day 7 May 2025
SATS CAPITAL MARKETS DAY 7 MAY 2025
Slide 2: Agenda
AGENDA 10:30 10:55 11:10 1:25 11:35 12:15 bn rf P iTS MARKET AND POSITION: STRENGTH IN A GROWING MARKET SONDRE GRAVIR, CHIEF EXECUTIVE OFFICER PRODUCT: BEST-IN-CLASS FITNESS OFFERING ELLEN VANBERG, CHIEF PRODUCT OFFICER DATA AND TECHNOLOGY: FROM INSIGHTS TO IMPACT GAUTE SANDAL, CHIEF DIGITAL OFFICER
Slide 3: Market and Position: Strength in a Growing Market
MARKET AND POSITION: STRENGTH IN A GROWING MARKET SONDRE GRAVIR CHIEF EXECUTIVE OFFICER
Slide 4: Delivered according to the plan from the 2022 Capital Markets Day
We have delivered according to the plan communicated at the 2022 Capital Markets Day – from short-term actions to improve profitability, to disciplined capital allocation and execution: Grow members per club Grow average revenue per member Manage cost through club and overhead discipline Reduce debt
Slide 5: SATS has delivered on all key actions outlined at the 2022 CMD
SATS has delivered on all key actions outlined at the 2022 CMD– and the outlook for continued growth remains strong • Mid-term EBITDA1 ambition of NOK 1.1 billion Clear market leader in a growing market, supported by • High cash conversion of 55% a powerful health and wellness megatrend • Maintenanc
Slide 6: Fitness industry supported by multiple reinforcing consumer trends
Physical inactivity is one The fitness industry has Our club network is Younger generations are The fitness industry is of the major public health historically shown strong strategically positioned in more fitness-oriented supported by multiple issues globally, resilience to economic the most attrac
Slide 7: Significantly better located clubs than competitors
Share of clubs by location type Population per km2 ; 2024 Population share by age; 2024; percent Median income levels; Indexed to 1001 Significantly better located clubs than High population density enable us to competitors in the capitals, with most utilize scale of support functions clubs close to
Slide 8: Training activity in the Nordic countries
Nordic countries1 Training activity last 12 months (%, 16+ years in Norway)2 1) EuropeActive Consumer Survey 2022,2023,2024, Nordic Countries. Regular fitness practitioners = do fitness at least “once per week”. Share of respondents doing fitness at least once per week. Corresponding survey question
Slide 9: Share of actives working out at a gym
Share of actives working out at a gym (“Treningssenter”)1 The younger generations tend to keep their fitness habits when moving up the age ladder, leading to a clear generation effect as they replace older generations 1) Virkes befolkningsundersøkelse (Norway) 2019-2023. 9
Slide 10: Global health challenges and opportunities for fitness
• Overweight and mental health disorders is an increasing global challenge • The yearly cost of preventable noncommunicable diseases (cardiovascular disease, diabetes, etc.) is estimated at USD 27 billion annually1 • It is estimated that 4-5 million deaths per year could be averted if the global pop
Slide 11: Fitness resilience in inflationary periods
Areas in which respondents aim to save cost due to inflationary situation1 CAGR CAGR ‘22-’23 ‘19-’24 Phase of shrinking household purchasing Declining revenues from power (‘22-’23) Q2 ’20 to Q3 ’21 driven by COVID-19 shutdown 10.7% 4.8% 5.2% 3.6% Real income growth 2.0% 1.1% 4.1% -3.4% -1.7% 2.4%4 (
Slide 12: Largest fitness club chain in the Nordics
2 4 4 5 22 11 67 Greater Oslo • Largest fitness club chain in the Nordics1 10 3 73 Greater Helsinki • Particularly strong position in the key urban clusters 10 11 2 Greater Stockholm • Extensive and accessible club network • Strong value proposition and wide offering 13 7 29 Greater Copenhagen 1) As
Slide 13: Club offering for members
Manned reception welcoming and Well-equipped fitness floor with the Personal guidance and training Wide offering of group training helping members with a well- broadest equipment mix in the programs to members on the fitness classes enabling members to find a equipped retail area Nordics floor class
Slide 14: Club usage patterns across the day
Morning peak Senior peak with Lunch peak with Early afternoon Wide offering of from working senior classes all ages peak from group training adult members younger expands peak members capacity Examples • The young segment works out in the afternoon, but with a longer evening peak • Adults work out i
Slide 15: Club clusters create a unique offering and barrier to entry
Share of members in capital cities using more than one club % of all SATS members with minimum 10 visits during 2024 2% – 5% 5% – 15% 15%+ • Our strong club clusters create a unique training offering and a barrier to entry, especially in central areas • Members get a unique option to workout where t
Slide 16: Powered by passionate, skilled people
We are powered by passionate, skilled, and energetic people who deliver exceptional service, helping every member succeed, feel valued and recognized as an individual. We are the inspirators 16
Slide 17: Service and club experience
• Welcoming staff • Clean and tidy • Organized and tidy • Instructors create a • Highly educated PTs • Welcoming club greeting members wardrobes from fitness floor from high-energy and ensures motivation atmosphere with a smile frequent cleaning frequent “club resets” enjoyable and guiding for • Saf
Slide 18: Member activity and satisfaction improvements
Passive share Increase in visits, full NPS increase, Mar. reduction, Mar. 2024 year 2024 vs. 2019 2024 vs. Mar. 2019 vs. Mar. 2019 Reduced member base churn, full year 2024 vs. 2019: 18
Slide 19: Unmanned low-cost versus fully manned model
• Unmanned • Fully manned • No group training • Strong group training • Small premises • Medium to large premises • Flexible on location • Triple A locations • Cluster effect not critical • Strong cluster effect • Suitable for all geographies, • Medium to large cities both in terms of size of city •
Slide 20: Low-cost brand expanding market coverage
Currently operates 40 clubs across Norway: Attracts price-conscious members and enables expansion in smaller cities and smaller premises where SATS would not be a natural fit, expanding the group’s total market coverage A distinct low-cost offering prevents brand dilution and strengthens market segm
Slide 21: Visits in all clubs, full year
Visits in all clubs, full year 21
Slide 22: Product: Best-in-class Fitness Offering
PRODUCT: BEST-IN-CLASS FITNESS OFFERING ELLEN VANBERG CHIEF PRODUCT OFFICER
Slide 23: Active members are loyal members
Active members are loyal members – the myth of ghost members being profitable does not stand up to scrutiny We activate members by providing a strong product range that encourages and inspires our members to work out on a regular basis 23
Slide 24: Retail and nutrition offering in clubs
Strengthens the club experience from the moment members walk in Everything needed for a workout is available on-site Provides essential nutrition before, during, and after training Exclusive SATS products boost recognition, like the iconic SATS backpack Encourages a proactive sales mindset among emp
Slide 25: Personal trainers and physiotherapists
Our more than 1 100 Personal trainers (PTs) and Physiotherapists offer tailored guidance that adapts to individual goals and life stages whether it is recovery, performance, prevention or simply staying active We are the market leader in the Nordics within Personal Training. PT is a strong, profit g
Slide 26: Group training and fitness floor visits growth
Group training visits Annual growth rate of 20% since 2022, by: • Added more classes to the schedules • Extended popular concepts (like HIIT and Pilates) to a family of classes to engage more • Developed new concepts to capitalize on new trends (like meditation and breathing classes) Fitness floor v
Slide 27: Fitness floor product
The fitness floor is our largest product in terms of space and visits, and it is thus key for us to deliver the best offering. We have strong, favourable NPS scores for both range and availability of equipment but are always looking to further lift the member satisfaction The fitness floor product i
Slide 28: Group training members stay longer and pay more
Group training members stay 1.8x as Number of group training Number of unique, active long as gym-only members classes group training members Group training members pay on average NOK 100 more than gym-only members Group training members with NPS=77, indicating highly satisfied members1 ~ A group tr
Slide 29: Group training capabilities
• Inhouse production team building world class “pre-choreographed classes” • Strong group training team, pioneers • Inhouse competence on product • Recruitment setup ready to attract in the industry development and innovation more than 700 new instructors every year • 6 000 active instructors and 70
Slide 30: Hot studio class concepts
Hot Vinyasa Yoga Hot Yin Yoga Hot Interval Training Hot Power Pilates Hot Pilates Hot Gentle Vinyasa Yoga Hot Flexibility Hot Pilates HIIT Hot Tabata Hot Yoga Calm Hot BODYBALANCE Hot ABSolution Hot Yoga Strong 30
Slide 31: Adapting boutique gym concepts to a broader audience
• We identify key insights from boutique gyms and adapt the concepts to appeal to a broader audience • Our approach focus on making the concepts more inclusive and accessible to a wider range of members • We combine trends. For example, with the reformer concept being strategically connected to two
Slide 32: Micro clusters enable a broader training selection
STRONG MICRO CLUSTERS ALLOW US TO OFFER A BROADER AND MORE VARIED SELECTION OF TRAINING THAN EVEN THE LARGEST FITNESS AGGREGATORS WE OFFER A DIVERSE RANGE OF TRAINING ACTIVITIES - OUR DIVERSE OFFERING ENABLES US TO BUILD STRONG MICRO FROM HIGH-INTENSITY TO RELAXING SESSIONS ORSPORTS CLUSTERS CLUBI C
Slide 33: Class volumes per week by city
500+ running classes per week in Oslo 500+ Yoga classes, with 200 in Hot yoga rooms in Stockholm each week Almost 200 cycling classes each week in Copenhagen All numbers based on winter schedule 2025 33
Slide 34: Growth potential in product offering
With 16-21%1 fitness club market penetration in the Nordic countries, there is significant potential for further growth by reaching more people and activating a broader audience through a compelling and motivating product offering We are the undisputed market leader in group training across all the
Slide 35: Data and Technology: From Insights to Impact
DATA AND TECHNOLOGY: FROM INSIGHTS TO IMPACT GAUTE SANDAL CHIEF DIGITAL OFFICER
Slide 36: Unified in-house data and technology platform
• With data abundance defining the industry, Club Tracker App Web Workouts success hinges on the technology and expertise to data data usage usage harness it — creating both a powerful competitive edge and a high barrier to entry • SATS stands out as one of the few with a fully in- house team spanni
Slide 37: Building member profiles and insights
• New members are typically unknown to us, • Within the first 1-2 months, we build a rich • Over time, this creates a deep, GDPR- but if they quit <6 months ago, and/or have member profile — drawing from survey compliant insights base at the individual level kept their app access, we can track and r
Slide 38: Insight used across stakeholder groups: Members
THIS DETAILED INSIGHT IS LEVERAGED FOR USE ACROSS STAKEHOLDER GROUPS MEMBERS OPERATIONS MANAGEMENT SATS
Slide 39: Member app drives loyalty and habit formation
• 200 000+ unique users every day • Member app drives loyalty and habit formation: During one month, close to all members use the app for inspiration and planning, also ghost members • State-of-the-art AI tools integrated, to distribute visits between clubs and to fill up classes with predicted avai
Slide 40: App enhances all customer journeys
MEMBERS | OUR APP ENHANCES ALL PHYSICAL CUSTOMER JOURNEYS AND TOUCHPOINTS CLASS BOOKING PT BOOKING INVITE FRIENDS: CLUB CAPACITY SELF SERVICE CLUB CHECK-IN CLASS TICKET INDOOR RUNNING WAIT LIST TRAINING PROGRAM FRIENDS: SCHEDULE WORKOUT PREDICTION LOYALTY PROGRAM CONNECT WATCH SATS
Slide 41: Insight used across stakeholder groups: Operations
THIS DETAILED INSIGHT IS LEVERAGED FOR USE ACROSS STAKEHOLDER GROUPS MEMBERS OPERATIONS MANAGEMENT SATS
Slide 42: Operational data examples
EXAMPLES • 30-40 000 monthly member • All relevant internal and feedbacks… external data measures in • …of which 7-9 000 one view qualitative responses • Regional manager daily tool for performance management and follow-up • Heat zones for equipment • Simple and intuitive tool to on all clubs follow
Slide 43: Digital tool for all staff
DIGITAL TOOL FOR ALL STAFF BUILDS CONSISTENT MEMBER EXPERIENCES, AND ADHERENCE TO TASKS AND ROUTINES IS VERY SIMPLE TO FOLLOW UP NORDIC ROLL-OUT OF TOOL 50% COMPLETED - REMAINING CLUBS DURING Q2 SATS
Slide 44: Insight used across stakeholder groups: Management
THIS DETAILED INSIGHT IS LEVERAGED FOR USE ACROSS STAKEHOLDER GROUPS MEMBERS OPERATIONS MANAGEMENT SATS
Slide 45: Management use of data and follow-up
• Day to day follow-up of own • Follow-up of club ambition level club, based on full and performance across a wide transparency a wide range of parameters influencing range of operational member experience KPIs and financials • Fact-based • Club-by-club and decisions on all region-by-region strategi
Slide 46: Performance dashboard examples
Example: Performance dashboard per club – across all KPIs Example: Group training performance – across all clubs Gives ability to drill-down to all performance KPIs per club in all Gives ability to compare group training performance within aspects of operations clusters or across countries on the sa
Slide 47: Member segmentation and nudging
• Nudging members that show signs of • Daily member segmentation behaviour changes • Churn prediction by segments and • Rigid measuring of activity effect vs. personas control groups • Segmented offers and incentives • Segmented communication and nudging 47
Slide 48: Next-generation digital services and AI
We will harness our scale and capabilities to create innovative, next-generation digital services that empower our members on their journey toward healthier, more active lives — helping them build consistency, achieve their goals, and experience success We will accelerate the evolution of our techno
Slide 49: Financials and Growth: Strong Track Record, Clear Path Ahead
FINANCIALS AND GROWTH: STRONG TRACK RECORD, CLEAR PATH AHEAD CECILIE ELDE CHIEF FINANCIAL OFFICER
Slide 50: Attractive business model with a strong market position
Attractive business model with a Continued volume growth Revenue growth in mature clubs has strong market position across portfolio high drop-through to EBITDA Maintenance and expansion capex discipline High visibility subscription model Positive momentum in yield and Profitable and efficient club a
Slide 51: Financial development in NOK million
NOK million NOK million NOK million 1) EBTDA before IFRS 16 51
Slide 52: Revenue and EBITDA development drivers
MNOK Member growth from new Favorable membership Despite lower volumes, Overhead and club cost and maturing clubs, partly mix and implemented price increases and reductions, partly offset offset by club closures price adjustments have margin improvements by underlying cost contributes to NOK 200 sig
Slide 53: Member growth and retention
Avg. 2 700 • Member growth alongside price initiatives demonstrates strong member retention • Successful portfolio tuning has increased utilization of asset base • Varying but strong potential for member growth across all markets 53
Slide 54: Pricing and product mix driving revenue per member
NOK, constant currency Product development is strengthening our brand and driving member engagement, making add-on products, like group training, more appealing, contributing to a more premium membership mix Membership list prices are reviewed and adjusted annually, with average increases aligned to
Slide 55: Revenue and margin development
MNOK & Margin% Currency adjusted at 2024 FX-rates 55
Slide 56: Revenue and EBITDA in MNOK
MNOK MNOK Currency adjusted at 2024 FX-rates 56
Slide 57: Cost structure and operating leverage
~ • COGS for personal training and retail • Marketing cost • Utility cost variable with consumption and energy prices • Club maintenance and equipment • Efficient and flexible club operating model, fully linked to visits ~ • Scalable overhead organization with capacity for further growth without sig
Slide 58: Mature clubs deliver higher Club EBITDA
MNOK & margin% The 220 mature clubs deliver 19% higher Club EBITDA vs. the all-club average, highlighting upside as newer clubs mature 53 clubs opened since 2020, of which 18 less than 18 months old 18 clubs opened under covid restrictions, delaying member base ramp-up Fixed cost structure in early-
Slide 59: Country results
MNOK & Margin% • Norway delivers the highest profitability and margin, driven by a well-established club base • Sweden’s lower margin reflect a higher proportion of maturing clubs opened between 2020– 2024. Profitability is expected to improve as these clubs mature • Product improvements across all
Slide 60: Capex and club portfolio investment
MNOK • Since the IPO, we have invested almost NOK 1 billion in the club portfolio, resulting in a well-invested club portfolio, with high quality premises and product offering • Going forward, we will continue to invest in clubs as they age, and contracts are up for renegotiation • Additionally, we
Slide 61: Working capital, capex and cash conversion
SATS benefits from structurally negative Target CAPEX of 5% of revenues to cover We expect average operating cash working capital, driven by member both general maintenance and major conversion to remain strong at 70–75% prepayments, with working capital averaging upgrades to support further growth
Slide 62: Free cash flow, net debt and leverage
¥ FREE CASH FLOW OF 700 MILLION GENERATED IN THE PERIOD, PRIMARILY USED TO REDUCE DEBT FREE CASHFLOW NET DEBT AND LEVERAGE —* CASHCONVERSION% ‘(Wl INTEREST Hl BANK DEBT ~*~ LEVERAGE (OPERATING CASHFLOW [Hl TAX Mi casu EXPANSION CAPEX Wl orHeER n2 55% 25 14 ae 406 -24 ui 48% 297 “47 -4 2023 -24, 2024
Slide 63: Growth Potential and Value Creation
GROWTH POTENTIAL AND VALUE CREATION SATS
Slide 64: Existing clubs drive mid-term profitability, expansion long-term value
EXISTING CLUBS ARE THE MAIN ENGINE FOR MID-TERM PROFITABILITY, WHILE EXPANSION LAYS THE FOUNDATION FOR LONG-TERM VALUE CREATION e Mid-term ° e Long-term ° EXISTING CLUBS CONTINUE TAPPING INTO THE POTENTIAL IN EXISTING PORTFOLIO CLUB BUILD PIPELINE OPEN NEW CLUBS FINANCIAL IMPACT OF EXPANSION NEW CLU
Slide 65: Levers to improve existing clubs
Improve schedule (right class, right time) New product (e.g. Indoor running, HIIT, Hot) Replace worn equipment Add more equipment Improve layout and flow Upgrade look and feel Downsize (if too much space and high rent) Re-negotiate lease agreement Improve service level (atmosphere and cleanliness) 6
Slide 66: Improved schedule and new product
Improved schedule • Add more classes to ensure that there is always classes when members want to train • Increase the variety of classes to ensure there is something for all members New product • Add new group training products to attract new member groups and attract more existing members to group
Slide 67: Improve layout and equipment
Improve layout and flow • Re-arrange the placement of equipment and zoning of the fitness floor, to facilitate room for more equipment, as well as make a more efficient flow through the club Add more equipment • Add pieces of equipment which are identified as bottlenecks and creates waiting time for
Slide 68: Upgrade look and feel; downsize
Upgrade look and feel • For clubs with old and worn premises, improving the look and feel through refurbishment, is a way to improve the member experience Downsize • Some clubs have too much space, relative to their existing member base and untapped member potential • For these clubs, reducing the s
Slide 69: Club-by-club improvement approach
Data-driven approach to • Estimate of member potential for each club, based on traffic and population data estimate member • Break-down on member target groups potential club by club Extensive performance • Extensive set of KPIs measuring the performance of each club within all aspects management to
Slide 70: Club improvement levers by club type
New product Improved schedule Improved schedule Add more equipment New product Upgrade look and feel Improve layout and flow Add more equipment Re-negotiate lease agreement Replace worn equipment Replace worn equipment Improve service level 70
Slide 71: Mid-term EBITDA ambition of NOK 1.1 billion
MNOK • The current club portfolio still has significant financial upside driven by both volume growth and ARPM improvements • We have a proven track record of unlocking value by working strategically on a club-by-club basis to drive performance improvements • By prioritizing high-potential Continuou
Slide 72: Target EBIT margin and cash conversion frameworks
DELIVERING ON OUR MID-TERM AMBITION WILL RESULT IN TARGET EBIT MARGIN OF 15% AND FREE CASH FLOW CONVERSION OF 55% BEFORE CLUB EXPANSION Margin% PROFITABILITY FRAMEWORK CASH CONVERSION FRAMEWORK DEPRECIATION TOTAL GROSS CLUB EBITDA % EBITDA% EBITDA OPERATING CASH FLOW FREE CASH FLOW REVENUES MARGIN %
Slide 73: Filling white space in strong clusters
2 Filling out white space in strong clusters to further strengthen product offering and market position 4 Filling out white space in clusters where we lack 4 a tight footprint to reach more potential members 5 11 22 67 Greater Oslo Greater Helsinki 10 3 10 73 11 Greater Stockholm 13 2 Expand in citi
Slide 74: Club expansion approach
• Aim for 8-12 yearly club openings, but pace • We will expand with both the SATS and Fresh depends on availability of attractive locations Fitness brand, clearly distinguishing the two • We are in the process of building a strong • We will expand our club portfolio in all countries, pipeline of new
Slide 75: New club economics
Expansion capex on average NOK 7-8 million per club Mature club EBITDA of the portfolio of new clubs expected to be in line with the average of the current portfolio Average time to break-even approximately 8-12 months after club opening date Average investment payback of ±3 years after club opening
Slide 76: Illustration of future potential
MNOK 1) Before IFRS 16 This illustration of future potential does not relate to any specific time frame and should not be taken as a profit forecast in any way 76
Slide 77: Capital allocation framework
Maintenance CAPEX of Leverage1 ratio ranging Investing in high- Periodic share Semi-annual 5% of revenues from 1.5-2.0x returning growth buybacks dividends opportunities Continuous investments Conservative approach Expected to average 8- Long-term shareholder value is delivered through a in the club
Slide 78: Growth levers going forward
• Further expansion of adjacent products, services and partnerships by leveraging the strong SATS brand • Continued club expansion • The Nordic fitness market is still highly fragmented, with attractive targets for in-fill acquisitions • Manage cost - club and overhead discipline • Scalability to ex
Slide 79: Summary: delivered on 2022 CMD and outlook remains strong
SATS has delivered on all key actions outlined at the 2022 CMD– and the outlook for continued growth remains strong • Mid-term EBITDA1 ambition of NOK 1.1 billion Clear market leader in a growing market, supported by • High cash conversion of 55% a powerful health and wellness megatrend • Maintenanc
Slide 80: Q&A
Q&A SLVS
Slide 81: Disclaimer
This report includes forward-looking statements which are based on our current expectations and projections about future events. Statements herein, other than statements of historical facts, regarding future events or prospects, are forward-looking statements. All such statements are subject to inhe