Slide 1: Why invest in SATS?
WHY INVEST IN SATS? 1
Slide 2: SATS key investment highlights
SATS KEY INVESTMENT HIGHLIGHTS 1 Operating in a growing market, supported by a powerful health and wellness megatrend 2 Clear market leader with strategic strongholds in key capital cities 3 Superior member value proposition and high entry barriers enabled by scale 4 Strong financial performance and
Slide 3: Operating in a growing market, supported by a powerful health and wellness megatrend
1. Operating in a growing market, supported by a powerful health and wellness megatrend Proven resilience Strong presence in Favourable through economic high -growth Riding a health and generation Addressing a global cycles regions wellness dynamics health challenge megatrend Physical inactivity is
Slide 4: Market leader position with a strong member value proposition
2. MARKET LEADER POSITION WITH A STRONG MEMBER VALUE PROPOSITION 119 clubs and 351 000 members 93 clubs and 262 000 members 2 32 clubs and 72 000 members 28 clubs and In the #1 84 000 members 3 4 Nordics 11 5 23 • Largest fitness club chain in the Nordics1 68 Greater Oslo Greater Helsinki • Particul
Slide 5: We have the strongest footprint across the growing Nordic capitals
2. WE HAVE THE STRONGEST FOOTPRINT ACROSS THE GROWING NORDIC CAPITALS Most SATS clubs are located …with high population …demographics with a strong …and strong income levels in the capital areas… density,… preference for working out… driving willingness to pay Share of clubs by location type Populat
Slide 6: One-stop shop for training covering all our members' training needs
3. ONE -STOP SHOP FOR TRAINING COVERING ALL OUR MEMBERS’ TRAINING NEEDS Reception and retail Fitness floor Personal Training Group Training Manned reception welcoming and Well-equipped fitness floor with the Personal guidance and training Wide offering of group training helping members with a well-
Slide 7: Our lifetime commitment to our members drives activity and enables efficient club utilization
3. OUR LIFETIME COMMITMENT TO OUR MEMBERS DRIVES ACTIVITY AND ENABLES EFFICIENT CLUB UTILIZATION Different member segments enable capacity Our products appeal across life stages and needs utilization throughout the day Younger Older Early Afternoon/ Morning Late morning Lunch afternoon Evening BROAD
Slide 8: Our strong clusters offer value to our members and represent a significant barrier to entry
3. OUR STRONG CLUSTERS OFFER VALUE TO OUR MEMBERS AND REPRESENT A SIGNIFICANT BARRIER TO ENTRY We offer a superior network to our members 70% of the members in capital cities use across all key Nordic cities more than one SATS club OSLO Share of members in capital cities using more than one club % o
Slide 9: Our fantastic staff ensure exceptional service, support and motivation for all members
3. OUR FANTASTIC STAFF ENSURE EXCEPTIONAL SERVICE, SUPPORT AND MOTIVATION FOR ALL MEMBERS Manned clubs ensure high -quality service and safety Entrance Wardrobe Fitness floor Group Training Personal trainers Overall • Welcoming staff • Clean and tidy • Organized and tidy • Instructors create a • Hig
Slide 10: SATS' high quality value proposition drives member activity and financial results
3. SATS’ HIGH QUALITY VALUE PROPOSITION DRIVES MEMBER ACTIVITY A ND FINANCIAL RESULTS, WITH FURTHER ROOM FOR CONTINUED GROWTH -17% +31% +20% Passive share Increase in workouts, NPS increase, Mar. reduction, Mar. 2024 full year 2024 vs. 2024 vs. Mar. 2019 vs. Mar. 2019 2019 Record high activity level
Slide 11: Robust business model and attractive financial characteristics
4. ROBUST BUSINESS MODEL AND ATTRACTIVE FINANCIAL CHARACTERISTICS A DIVERSIFIED, LOW -RISK STRONG PERFORMANCE ATTRACTIVE AND GROWING STRONG CASH GENERATION BUSINESS TRACK RECORD PROFITABILITY Attractive business model with a Continued volume growth Revenue growth in mature clubs has strong market po
Slide 12: Strong top-line growth and solid margin expansion over time
4. STRONG TOP -LINE GROWTH AND SOLID MARGIN EXPANSION OVER TIME Member growth Despite Robust business model with solid EBITDA margin Well invested club portfolio decline in # clubs strong revenue growth expansion and high cash conversion Clubs Total revenues NOK million EBITDA margin NOK million Cas
Slide 13: Value creation strategy has been successful, and we will continue along the same path
5. VALUE CREATION STRATEGY HAS BEEN SUCCESSFUL, AND WE WILL CONTINUE ALONG THE SAME PATH IN THE COMING PERIOD adjacent • Further expansion of adjacent products, services and products and services partnerships by leveraging the strong SATS brand • Continued club expansion Further club Building sats f
Slide 14: Beyond NOK 1.1 billion: mid-term delivery builds the base, while expansion unlocks long-term EBITDA growth
5. BEYOND NOK 1.1 BILLION: MID-TERM DELIVERY BUILDS THE BASE, WHILE EXPANSION UNLOCKS LONG -TERM EBITDA 1 GROWTH long -term Ebitda 1 ambition (illustrative) MNOK • The current club portfolio still has significant financial upside driven by both volume growth and ARPM improvements 1100 • We have a pr
Slide 15: Delivering on our mid-term ambition will result in target EBIT margin of 15%
5. DELIVERING ON OUR MID -TERM AMBITION WILL RESULT IN TARGET EBI T MARGIN OF 15% AND FREE CASH FLOW CONVERSION OF 55% BEFORE CLUB EXPANSIO N profitability framework Cash conversion framework Margin% % Direct cost 10% Maintenance capex 25% Tax & Interest 20% Club OPEX 60% 100% 100% 90% 75% Overhead
Slide 16: Clear plan for disciplined capital deployment, targeting earnings distribution of at least 50% of net profit
5. CLEAR PLAN FOR DISCIPLINED CAPITAL DEPLOYMENT, TARGETING EARNINGS DISTRIBUTION OF AT LEAST 50% OF NET PROFIT Re -investment in Leverage growth Share buyback and dividend policy existing clubS Maintenance CAPEX of Leverage1 ratio ranging Investing in high- Periodic share Semi-annual 5% of revenues
Slide 17: Summary: well-positioned for further growth and value creation
SUMMARY WELL -POSITIONED FOR FURTHER GROWTH AND VALUE CREATION SATS has delivered on all key actions outlined at the 2022 CMD– and the outlook for continued growth remains strong Will deliver solid financial growth and shareholder return going forward • Mid-term EBITDA1 ambition of NOK 1.1 billion C
Slide 18: SATS
SATS