Sats Asa · OSL:SATS
Sats Asa — Q1 2025 Earnings Presentation
25 slides from Sats Asa's earnings presentation, May 7, 2025
Slide 1: Q1 2025 Interim Report January-March 2025
QI 2025 INTERIM REPORT JANUARY-MARCH 2025 CEO SONDRE GRAVIR CFO CECILIE ELDE
Slide 2: Clubs and members by country and city
118 clubs and 346 000 members 95 clubs and 254 000 members 2 31 clubs and 71 000 members 29 clubs and 86 000 members 4 4 5 11 22 67 Greater Oslo Greater Helsinki 10 3 10 73 11 Greater Stockholm 13 2 7 29 Greater Copenhagen 1) Before IFRS 16 and EO items 2 2
Slide 3: Record-high member growth of 24 000 in Q1 2025
Record-high member growth of 24 000 in Q1 2025, bringing the total member base to 757 000 members, combined with an ARPM increase of 6% – growth is driven by successful sales activities, effective marketing push and healthy churn Continued strong activity levels in our clubs, driven by successful pr
Slide 4: Financial Review Q1 2025
FINANCIAL REVIEW Q12025
Slide 5: Group financial key figures
1) Before IFRS 16 2) Net debt to EBITDA before IFRS 161) Delayed covid compensation of NOK 18 million received in Denmark in Q1 2024 3) Excl. delayed covid compensation of NOK 18 million received in Denmark in Q1 2024 5 5
Slide 6: Member growth and healthy churn
• Unusually strong Q1 sales and healthy churn levels drove member growth - Do not expect Q1 level of growth compared to last year to continue throughout 2025 • Price increases implemented with lower-than-expected impact on incremental churn • Strong results driven by product improvements, brand stre
Slide 7: Total revenues rose 8% y/y
• Total revenues rose 8% y/y, mainly price- driven with some support from volume increase during the first quarter • ARPM uplift supported by a structured approach to price adjustments, following sustained enhancements to the product offering • Last year’s other revenues affected by extraordinary re
Slide 8: 8% increase in club operating costs
• 8% increase in club operating costs, driven in part by higher direct costs linked to increased revenues from personal training and retail • Excluding direct costs, costs increased by 6%, reflecting additional spend on anniversary celebrations, marketing efforts, and member engagement campaigns • S
Slide 9: EBITDA and EBIT development
1) Delayed covid compensation of NOK 18 million received in Denmark in Q1 2024 9 9
Slide 10: Club openings and investment levels
Oslo (Fresh Fitness) Q1 2025 • One club opening in the quarter Oslo (Fresh Fitness) Q2 2025 • Actively scouting locations in key Larvik (Fresh Fitness) Q3 2025 clusters and major Nordic cities, Helsinki Q3 2025 targeting a run-rate of 8-12 new Oslo 2026 clubs per year Oslo 2027 No planned club closu
Slide 11: Free cash flow of NOK 99 million in Q1
• Delivered free cash flow of NOK 99 million in Q1, somewhat affected by negative working capital effects • Maintenance capex skewed towards the end of Q4, resulted in some capex cash carryover to Q1 • Free cashflow of NOK 384 million over the past 12 months • Positive working capital effects LTM fo
Slide 12: Stable liquidity position
• Stable liquidity position, despite completion of share buyback program • Net effect of share buybacks of NOK 67 million in the quarter, following partial allocation to employee investment program and related payments • Continued deleveraging over the past year, stabilizing at a leverage ratio slig
Slide 13: Leverage target, dividends and share buybacks
Keep leverage in the lower end of • First payment expected in H2 2025 • First buyback program completed in Q1 the communicated target range of based on H1 2025 financials, in line 2025 1.5x-2.0x net debt to EBITDA with previous communication • 3.2 million shares at a total consideration of NOK 100 m
Slide 14: Outlook
OUTLOOK
Slide 15: Outlook to be presented at the Capital Markets Day
OUTLOOK TO BE PRESENTED AT THE CAPITAL MARKETS DAY PRESENTATION LATER TODAY Lg AGENDA wW SATS CAPITAL MARKETS é 10:50 MARKET AND POSITION: STRENGTH IN A GROWING MARKET ~ P ais DAY a 7MAY 2025 10:55 PRODUCT: BEST-IN-CLASS FITNESS OFFERING ELLEN VANBERG, CHIEF PRODUCT OFFICER -_ N10 ‘DATA AND TECHNOLO
Slide 16: Appendix
APPENDIX
Slide 17: Forward-looking statements
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
Slide 18: Norway
NORWAY COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE ARPM AND YIELD TOTAL REVENUES IMPACT OF IFRS 16 000 NOK/MONTH MNOK NOK [ll MEMBERSHIP YIELD [lll MEMBERSHIP REVENUES — MARGIN WM OTHER YIELD I OTHER REVENUES i ceiTDA 546 531594529532 | Q12024 Q22024 Q32024 Q42024 Qi 2025 109 633 575 103 m 180 156 12
Slide 19: Sweden
SWEDEN COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE ARPM AND YIELD TOTAL REVENUES IMPACT OF IFRS 16 000 NOK/MONTH MNOK NOK [ll MEMBERSHIP YIELD [lll MEMBERSHIP REVENUES — MARGIN WM OTHER YIELD I OTHER REVENUES i ceiTDA Q12024 Q22024 Q32024 Q42024 Qi 2025 +7% (+5% CURR. AD) 581 114 122 +8% (+6% CURR. A
Slide 20: Finland
FI LAND COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE ARPM AND YIELD TOTAL REVENUES IMPACT OF IFRS 16 000 NOK/MONTH ‘MINOK ‘NOK [ MEMBERSHIP YIELD [) MEMBERSHIP REVENUES — MARGIN I oner viELD Il OTHER REVENUES carroa 72 70 «70 7 7 Q12024 Q22024 Q32024 Q42024 Qi 2025 +7% (+5% CURR. ADJ.) 586 2 45% (#3%
Slide 21: Denmark
DENMARK COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE ARPM AND YIELD TOTAL REVENUES IMPACT OF IFRS 16 000 ‘NOK/MONTH MNOK MNOK 1) covip COMPENSATION (MEMBERSHIP REVENUES — MARGIN Ml OTHER YIELD Wl OTHER REVENUES (cov COMPENSATION (0 MEMBERSHIP YIELD | cov COMPENSATION eiTDA > 1% > -2% CURR. ADJ.) (-3%
Slide 22: IFRS 16 impact on balance sheet and income statement
Property, plant and equipment 800 0 800 Right-of use assets 4 675 4 675 0 Deferred tax assets 135 76 59 Prepaid expenses and accrued income 228 -104 332 Total assets 9 269 4 647 4 621 Equity 1 344 -378 1 722 Non-current lease liability 4 100 4 100 0 Current lease liability 963 963 0 Other current li
Slide 23: Definitions of key terms and measures
Average number of members Outgoing member base divided by outgoing number of Consists of group services such as commercial per club clubs Group overhead functions, IT, finance and administration Average revenue per member Calculated as monthly total revenue divided by the Net debt divided by last tw
Slide 24: Free cash flow reconciliation
Profit before tax Depreciation, amortization and impairment EBITDA before impact of IFRS16 Net financial items Installments on lease liabilities Interests on lease liabilities Maintenance capex Purchase of property, plant and equipment (contains both maintenance capex and expansion capex) Change in
Slide 25: SATS
SATS