XXL

Investor Presentation • Apr 24, 2024

XXL ASA – Q1 2024

LOW AVAILABILITY HOLDING BACK SALES, WHILE RESET & RETHINK CONTINUES TO PROGRESS

*** PRE-SOUNDING DRAFT *** *** PRE-SOUNDING DRAFT ***

Presentation of Financial Results April 24th, 2024

XXL Q1 2024 Presentation

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 first quarter 2024, held on 24th April 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.

CEO agenda

Low availability holding back sales, while inventory and cost are under control and a successful private placement securing financial runway

Concrete measures are being taken to return XXL "back to shape" by 2024/25

RESET

Top line quick wins and cost control through the MWBs

RETHINK

Accelerate key top line levers through the four strategic pillars

XXL Q1 2024 Presentation

RESET: Our 5 "Must Win Battles" - continue to progress well!

MWB indicators | Increased focus towards lower price points, which will also improve availability gradually during Q2 and onwards

CATEGORY RESET: Successfully hosted our first digital supplier conference, to further strengthen supplier partnerships and launch new joint opportunities

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

Efficiency in store operations continuing to improve during the quarter

Example: Workshop EBITDA (calculated) (mNOK)

Stronger price control driving improved gross margin moving towards target

Gross margin development (%)

STORE OPERATIONS PRICING E-COMMERCE PROFITABILITY

Continued e-commerce improvements driving positive shift in online profitability

Total online conversion rate improvement (%-points)

+0,2pp

Pct. point growth in E-commerce gross margins

Restructuring and cost out program are materializing

EXECUTING PLAN TO OPTIMIZE STORE FOOTPRINT

• Redi (Helsinki) store closed
• Initiated execution of ambitious plan to downscale and re-locate stores to better locations to increase profitability
• Increased reduction in store footprint, now ~16k sqm in 2024 while pipeline for 2025 also materializing

Reduced cost and complexity – increased focus on core business and core markets

The sporting goods market continues to go through a challenging period

Q1 financial summary

Financial Review Q1 2024

13

Private placement

• On 21 March 2024, XXL announced a private placement of NOK 500 million, with a potential subsequent offering to other existing shareholders
• Approved by an Extraordinary General Meeting the 12 of April 2024

1	More flexible covenants	▪ Minimum liquidity covenant reduced from NOK 300 million (applicable from 30 June 2024) to NOK 200 million until maturity (25 June 2026) ▪ Leverage covenant holiday extended by six months, from Q4 2024 to Q2 2025 ▪ Leverage covenant amended from 4.0x to the following path: − Q2 2025: 5.50x − Q3 2025: 4.75x − Q4 2025: 4.00x
2	Increased available liquidity	▪ Gross equity proceeds of NOK 500 million, parts of this may be used to pay down bank debt ▪ Available liquidity increased by ~NOK 308 million, of which: − ~NOK 200 million in assumed retained cash − ~NOK 108 million in assumed liquidity release ▪ RCF facility will be reduced from NOK 1.150 million to 850 million

Key Figures

(Amounts in NOK million)	Q1 2024	Q1 2023	FY 2023
GROUP - Continuing Operations	1 558 1 984 -21,5 % 6,4 % 605 622 38,8 % 31,4 % 38,0 % 33,6 % 1 2 -45 0,8 % -2,3 % -188 -239 -12,0 % -12,0 % - - -188 -239 -12,0 % -12,0 % -209 -225 -209 -225
Operating revenue			7 961
Growth (%)			-5,5 %
Gross profit			2 509
Gross margin (%)			31,5 %
OPEX %			32,5 %
EBITDA			-80
EBITDA margin (%)			-1,0 %
EBIT			-1 409
EBIT margin (%)			-17,7 %
Impairment losses			576
EBIT adj.			-833
EBIT adj. margin (%)			-10,5 %
Net Income			-1 590
Net Income adj.			-1 014
**Basic Earnings per share (NOK)	-0,13	-0,86	-2,18

• Revenue down by NOK 427 million vs. last year
  • Challenging market driven by low consumer confidence and reduced demand for sporting goods
  • Low product availability holding back sales, as well as fewer sales days
  • Also, part of the reduction was explained by the extraordinary sales campaign last year ("Prisskred")
• Gross margin ended at 38.8%, up from 31.4% last year
• OPEX in % is 4.4 p.p higher than last year
  • Operating expenses as percentage of sales increased to 38.0% in Q1 24 (33.6% in Q1 23) impacted by the negative like for like growth hampering scale in the operations
  • The cost out program has reduced OPEX with NOK 75 million vs Q1 23
• EBITDA NOK 12 million
• Net income of negative NOK 209 million in Q1 2024.

Gross Margin Development

XXL ASA Q1 2024 - Gross margin per segment

Q1 23 Q1 24

• Improved gross margin development in the quarter, up from 31.4% in Q1 2023 to 38.8% in Q1 2024.
• Gross margin in Q1 2023 was significantly affected by large clearance sales. However, gross margin has steadily improved during the last quarters, and this continued in Q1 2024
• The reduction of inventory with high price-points triggered obsolete inventory reversal of NOK 30 million, explaining 1.9 p.p of the margin uplift in Q1 2024.
• The current market demands strict focus on inventory levels and liquidity control, which will lead to fluctuations in the gross margin between quarters and seasons

OPEX Development

XXL ASA Q1 2024 - OPEX per segment (in %)

• Group OPEX% in Q1 increased to 38.0% (up 4.4 points vs Q1 23), impacted by the negative like for like growth hampering scale in the operations
• Operating expenses NOK 75 million lower in Q1 24 vs Q1 23, mainly explained by a reduction in personnel and marketing cost
• Cost out program and restructuring are thus starting to materialize

EBITDADevelopment

Q1 23 Q1 24

• Positive EBITDA development vs LY in all segments except Finland. The positive development in EBITDA is explained

by the improved gross margin and reduced cost.

• Norway segment improved EBITDA by NOK 11 million by reducing OPEX of NOK 22 million, partly offset by sales shortfall of NOK 202 million and gross profit of NOK 11 million.
• Sweden improved EBITDA by NOK 33 million by increasing gross profit of NOK 17 million and reducing OPEX of NOK 16 million.
• The negative development in Finland is mainly explained by shortfall of sales of NOK 106 million and gross profit of NOK 24 million. Finland has mitigated the loss by reducing OPEX of NOK 16 million.
• XXL's HQ overhead cost is reduced with NOK 23 million.
• EBITDA margin of 0.8% in Q1 2024 vs. 2.3% in Q1 2023

Net debt increased by NOK 194 million

Net debt development (mNOK)

Financial position

Summary and final remarks

We are great brands & great prices...

XXL Q1 2024 Presentation

...and all sports united – sport unite all!

THANK YOU!

Q&A

All sports united. Sports unite all.