Slide 1: Q2 2024 Interim Report April-June 2024
Q2 2024 INTERIM REPORT APRIL-JUNE 2024 CEO SONDRE GRAVIR CFO CECILIE ELDE INVESTOR RELATIONS: JONAS.SORTLAND FOUGNER@SATS.NO +4794 8058 51
Slide 2: Clubs and members by Nordic region
117 clubs and 324 000 members 96 clubs and 244 000 members 2 32 clubs and 70 000 members 29 clubs and 81 000 members 4 4 5 11 23 66 Greater Oslo Greater Helsinki 10 3 10 73 11 Greater Stockholm 13 2 1 7 29 Greater Copenhagen 1) Before IFRS 16 and EO items 2 2
Slide 3: Consistently improving revenues and profitability
Consistently improving revenues and profitability, in notably better shape today than prior to the pandemic Deleveraging well within the communicated target range, expecting to reach lower end of targeted interval of 1.5x – 2.0x by the end of 2024 Successfully refinanced the NOK 2.5 billion revolvin
Slide 4: = S 2% = i & S y Ss
= S 2% = i & S y Ss
Slide 5: Net debt to EBITDA before IFRS 16
1) Before IFRS 16 2) Net debt to EBITDA before IFRS 16 5 5
Slide 6: Member base development
• The second quarter is typically a period with a decline in members due to lower activity levels and sales • Member base slightly up compared to last year (+1%), and members per sqm up with 2% driven by continued tuning of the club portfolio • We continue to see the effects of price/volume trade-of
Slide 7: Total revenues grew 5% compared to Q2 2023
• Total revenues grew by 5% compared to Q2 2023, primarily driven by an increase in average revenue per member • The 6% increase in membership revenue this quarter demonstrates our ability to maintain a strong member base while charging a fair price for memberships • Personal Training revenues incre
Slide 8: Club operating costs up 5% driven by inflation
• Increase in club operating cost before direct cost +5%, mainly driven by inflation • Somewhat lower direct costs following improvement in margins • Lower overhead cost in Q2 due to typical seasonality effects (primarily vacation), but cost continues to decline as % of revenues • Cost base expected
Slide 9: Revenue growth contributes to substantial improvement in profitability
REVENUE GROWTH CONTRIBUTES TO A SUBSTANTIAL IMPROVEMENT IN PROFITABILITY COMPARED TOLAST YEAR, EBITDA +13% AND EBIT+13% REPORTED EBITDA EBITDA BEFORE IFRS 16 EBIT BEFORE IFRS 16 MNOK MNOK MINOK Mi cirpa [ll EBITDA BEFORE IFRS 16 — EBIT BEFORE IFRS 16 MARGIN — EBITDA MARGIN — EBITDA BEFORE IFRS 16 MA
Slide 10: Club closures, greenfields and capex
Mölndal Q3 2024 • Two club closures in the quarter and Haga Norra Q3 2024 additional three clubs in H2 2024 Munkkiniemi Q4 2024 NEW • Four Greenfields planned for H2 Larvik (Fresh Fitness) 2025 NEW 2024 and 2025 Porsgrunn Closed Q2 2024 Helsinki Closed Q2 2024 3 clubs Sweden Closing Q3/Q4 2024 1 clu
Slide 11: Operating cash flow and free cash flow
• Operating cash flow of NOK 154 million and free cash flow of 132 million in the quarter • Negative impact from working capital reflects the seasonal settlement of deferred liabilities, mainly related to holiday pay in Norway • However, timing of payments related to quarterly rent has led to a favo
Slide 12: Liquidity position and deleveraging
• Liquidity position improved by 165 million • Solid cash generation leaves room for repayment of debt, 102 MNOK in the quarter • Continued high-paced deleveraging from 4.7x last year to 1.7x in Q2 2024, aiming to keep leverage in the lower end of the communicated target range *) Net debt to EBITDA
Slide 13: New NOK 2.5 billion revolving credit facility
• A new NOK 2.5 billion unsecured revolving credit facility was signed in July, refinancing the existing RCF which was set to mature in September 2025 • The new 3-year revolving credit facility matures in July 2027, with options for extension for up to two one-year terms • The credit facility does n
Slide 14: Capital allocation priorities
Maintenance CAPEX of 5% Leverage1 ratio ranging from Investing in high-returning Initiate share buy-back Semi-annual dividends, first of revenues 1.5-2.0x growth opportunities program payment expected in H2 2025 based on H1 2025 financials Continuous investments in Conservative approach to Expected
Slide 15: x Ss S) R > S)
x Ss S) R > S)
Slide 16: Outlook and key drivers going forward
Strengthened member product offering enables volume and ARPM growth, fueling revenue going forward Still unleashed potential in existing club portfolio driven by sqm and equipment optimization and increased operational efficiency… …as a key driver for improved financial performance, accelerated by o
Slide 17: ~ Q = a Q x
~ Q = a Q x
Slide 18: Norway
NORWAY COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE ARPM AND YIELD TOTAL REVENUES IMPACT OF IFRS 16 ‘000 NOK/MONTH MNOK MNOK (MEMBERSHIP YIELD [MEMBERSHIP REVENUES 319 526326 531324 22023 Q32023 Q42023 Q12023 Q22024 WM OTHER YIELD 554 5835 I OTHER REVENUES [? 160 Q2 2023 Q22024 Q2 2023 Q22024 Q2 2023
Slide 19: Sweden
SWEDEN COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE ARPM AND YIELD TOTAL REVENUES IMPACT OF IFRS 16 ‘000 NOK/MONTH MNOK MNOK (MEMBERSHIP YIELD [MEMBERSHIP REVENUES 245 250 249 248 244 22023 Q32023 Q42023 Q12023 Q22024 WM OTHER YIELD I OTHER REVENUES pe —_@&—_, 8s eI 552 578 409 427 2 83 Q2 2023 Q22024
Slide 20: Finland
FINLAND COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE ARPM AND YIELD TOTAL REVENUES IMPACT OF IFRS 16 000 NOK/MONTH MNOK MNOK [ll MEMBERSHIP YIELD [lll MEMBERSHIP REVENUES WM OTHER YIELD I OTHER REVENUES 70 7 71 72 70 560 584 i 125 16 M 88 22023 Q32023 Q42023 @I2023 022024 022023 022024 022023 Q22024 Q
Slide 21: Denmark
DENMARK COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE ARPM AND YIELD TOTAL REVENUES IMPACT OF IFRS 16 000 NOK/MONTH MNOK MNOK [ll MEMBERSHIP YIELD [lll MEMBERSHIP REVENUES WM OTHER YIELD I OTHER REVENUES 81 84 85 84 81 570 142 537 133 23 20 10 7 Q22023 Q32023 Q42023 QI2023 Q22024 Q2 2023 Q22024 Q2 2023
Slide 22: Key figures
Amounts in NOK million Number of clubs, EOP 274 273 Outgoing member base ('000s) 719 715 Average number of members per club 2 625 2 680 ARPM (NOK) 580 552 Yield (NOK) 478 452 Reported EBITDA (MNOK) 521 491 EBITDA before impact of IFRS 16 (MNOK) 219 194 EBITDA before impact of IFRS 16 margin 17% 16%
Slide 23: IFRS 16 impact on financial statements
Property, plant and equipment 649 0 649 Right-of use assets 4 575 4 575 0 Deferred tax assets 177 72 105 Prepaid expenses and accrued income 166 -92 258 Total assets 8 906 4 556 4 351 E qui ty 1 211 -359 1 571 Non-current lease liability 4 013 4 013 0 Current lease liability 940 940 0 Other current
Slide 24: Definitions of alternative performance measures
EBITDA adjusted for (i) closed clubs; (ii) certain Adjusted EBITDA before impact Consists of group services such as commercial comparability items; and (iii) the impact of Group overhead of IFRS 16 functions, IT, finance and administration implementation of the IFRS 16 lease standard Average number
Slide 25: Reconciliation of EBITDA, capex and cash flow items
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 26: Health effect of SATS members
• Calculated health effect of all SATS members who meet WHO’s recommendation of minimum 75-100 minutes of vigorous-intensity aerobic physical activity per week at SATS alone (World Health Organization, 2022) • Midpoint of 87.5 minutes applied • Assuming an average of 60 minutes per SATS workout • Me
Slide 27: Why invest in SATS?
WHY INVEST IN SATS?
Slide 28: Clubs and members by Nordic region
117 clubs and 324 000 members 96 clubs and 244 000 members 2 32 clubs and 70 000 members 29 clubs and 81 000 members 4 4 5 11 23 66 Greater Oslo Greater Helsinki 10 3 10 73 11 Greater Stockholm 13 2 1 7 29 Greater Copenhagen 1) Before IFRS 16 and EO items 28 28
Slide 29: Making our members healthier and happier
SATS HAS A MAKING OUR MEMBERS HEALTHIER AND HAPPIER 1 2 3 WIDE UNPARALLELED COVERING PRESENCE THROUGH HELPING MEMBERS ALL TRAINING NEEDS SUCCEED WITH THEIR TRAINING PDI ED BY 4 LEADING DATA AND INSIGHTS SUPPORTING GQ INSIGHTS AND INFORMED DECISION-MAKING STAFF ; 5 PROVEN OPERATING MODEL AND ENGAGED
Slide 30: Prioritizing employees, product offering and clubs
We prioritize having the best The offering make it easier for our employees, most compelling members to succeed with their and wide product offering, training and maintain a sustainable market-leading clubs, and activity level, evidenced by top-notch locations increased activity By attracting new an
Slide 31: Club offering for members
Manned reception welcoming and Well-equipped fitness floor with the Personal guidance and training Wide offering of group exercise 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 32: Scale advantages in product offering
• Tight club footprints in large • Fast follower of fitness cities enables optimization trends through central of product types and class product innovation function schedules between clubs • High utilization of group • In-house production of training areas due to scale concepts, not dependent of of
Slide 33: Equipment usage monitoring and optimization
• Continuous monitoring of equipment usage in our • Insight based, up to date equipment lists and standardized club largest clubs using sensors layout • Regular feedback from members regarding range • Asset registry designed to help identify possible equipment swaps and availability of equipment bet
Slide 34: Differentiated club offerings
• Members get a unique option to workout where they live, work and travel • Differentiated product offerings on clubs gives members access to a wide product offering including HIIT, Hot Yoga, Indoor running, Cycling, Sauna, Fitness floor and regular Childcare fitness floor and more group training in
Slide 35: Digital member onboarding and engagement
• Branched onboarding first 9 • Invite friends to join workout • Re-book same class next weeks, based on members or class week activity • Let friends know about • Scheduled your own workouts • Tools to succeed with their scheduled workouts or in app training and displaying booked group classes • Wai
Slide 36: Data-driven scheduling and personalization
• Centralized scheduling model • Demography, population, travel • Live segmentation of all members used allocating the GX schedule to optimize distance and competitor data for personalized communication and number of average show-ups per class leveraged for sourcing the best club triggered customer
Slide 37: Operational excellence in club operations
Automated scheduling tool Standardized process for optimizing total labor hours measuring member and role composition based satisfaction and prioritizing on visit forecasts and improvement efforts member satisfaction accordingly Streamlined routine-lists and Annual audit across portfolio manuals acr
Slide 38: Capital allocation priorities
Maintenance CAPEX of 5% Leverage1 ratio ranging from Investing in high-returning Initiate share buy-back Semi-annual dividends, first of revenues 1.5-2.0x growth opportunities program payment expected in H2 2025 based on H1 2025 financials Continuous investments in Conservative approach to Expected
Slide 39: SATS
SATS