XXL

Investor Presentation • Nov 6, 2024

XXL ASA – Q3 2024

Navigating the downturn while preparing for market recovery in 2025

Presentation of Financial Results November 6th, 2024

Disclaimer

Important notice

The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ("relevant persons"). Any person who is not a relevant person should not act or rely on this presentation or any of its contents.

This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in any company within the XXL Group. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.

This presentation includes and is based, inter alia, on forward-looking information and contains statements regarding the future in connection with the XXL Group's growth initiatives, profit figures, outlook, strategies and objectives. All forward-looking information and statements in this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for the XXL Group and its lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions.

Important factors may lead to actual profits, results and developments deviating substantially from what has been expressed or implied in such statements. Although XXL believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation.

XXL is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither XXL nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

This presentation was prepared for the interim results presentation for the third quarter 2024, held on November 6th, 2024. Information contained herein will not be updated. The following slides should also be read and considered in connection with the information given orally during the presentation.

Agenda

6 November 2024

The Nordic sporting goods & outdoor market has now seen ten consecutive negative quarters, but we are convinced of its long-term resilience and growth

We believe in a gradual recovery during 2025, with Sweden already leading the way with ✓ interest rate cuts as well as early indicators of improved revenues and EBITDA in the quarter

Sales recovery since Q1, but top line hampered by low inventory of fast-moving goods

• Three store re-openings in Sweden with 16 closed days due to relocation activities during Q3
• Record low inventory level is holding back sales vs. last full year pre-covid
• Capital-intensive products remain challenging

We are in the midst of Resetting and Rethinking XXL by leveraging the group's unique strengths

We are consolidating to three core markets, in a region where we remain the market leader

We are leveraging our highly centralized business model & leading omnichannel offering 1 2 3

We are increasing utilization of our leading customer reach and restoring our low-price position

3

4

Leverage service

offering

"Reset" progressing well, while we have also begun to "Rethink"

Market recovery expected during 2025 vs. previous assumptions of recovery in 2024

MWB indicators | Strengthened inventory composition with regards to healthy stock and quantities, with a continued positive gross margin trend

CATEGORY RESET AVAILABILITY

Healthy share of inventory improving, i.e. less clearance stock

Development share of active assortment in inventory (%)

Significant decrease of inventory value, while # of pieces in stock stable, however availability on top 1000 products still lagging behind

Development inventory

Availability top 1000 products (%)

PRICING

GM improvement vs. last year with YTD improvement of 5,2%-points 24 vs. 23

Gross margin development vs. LY (%-points)

MWB indicators | Further indicators pointing towards underlying progress in our turnaround

* Incl. pure online purchases & C&C

6 November 2024

Accelerating "Rethink" in the quarter

More to come...

Our new communication platform launched!

PL soft goods revenue growth & GM- %points improvement vs A-brands in Q3 Sweden store elevation in Q3 Private label & lower price points Great comeback REWARD milestone achieved +34% +10,2%p Revenue GM

Increasing our PL* portfolio and focus on low price points, improving product volumes and GM

Q3 2024 financials

Cost savings partially

XXL ASA Q3 financial summary

EBITDA | Continued cost and margin improvements offset by reduced sales in Q3

• Sales shortfall and adverse currency change solely explain the decline in EBITDA vs LY
• Cost savings of 22 mNOK from salaries and other OPEX
• Margin improvement more than offsets the effect of sales shortfall YTD
• Cost savings adjusted for last years currency of 111 mNOK
• Adverse currency effect on EBITDA of 7 mNOK from NOK depreciation

COST-OUT | From 2022 baseline, 242 mNOK savings adjusted for currency and inflation

Comments

• Cost base increased through currency translation effects as well as inflation on store rental contracts and salary adjustments
• Significant cost reductions within personnel cost across all segments and levels (stores, value chain & administrative functions)
• Expect additional cost reductions particularly within property rents as effects of right sizing of the store portfolio is delivered throughout 2025
• Additional cost savings under execution within other operating costs, procurement initiatives and marketing

XXL ASA Q3 2024 balance sheet and cash flow

XXL contemplating the launch of a holistic financing solution

• XXL is in the process of securing a financial solution that is expected to cover both short-term liquidity needs and allow for working capital investments
• The Company contemplates that the financing will be a combination of a fully underwritten rights issue in the amount of approximately NOK 600 million, a prolongation of the Company's existing loan facilities and a bridge loan
• This will enable working capital investments to support efforts in strengthening top line growth and continue to deliver on the "Reset & Rethink" plan.

Summary and final remarks

Turnaround progressing well with increasing efforts on top line improvements

We are convinced that we are moving in the right direction | But macro and market conditions, financing and long industry lead times is holding us back

Thank you!

Q&A

Sports unite all.