XXL

Investor Presentation • Feb 7, 2025

XXL ASA – Q4 2024

Sales turnaround materializing, despite challenging market conditions

Presentation of Financial Results February 7th, 2025

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 fourth quarter 2024, held on February 7th, 2025. 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.

Positive sales trend continued in Q4, with a strong final sprint in November & December

Despite challenging market conditions and a late start of winter vs. 2023

Driven by strong collaboration with brands & suppliers and fantastic efforts by the entire XXL organization

January delivered material growth as our sales turn around continues to materialize

Trading update: January 24 vs. 25 (%) January 24 January 25 +4,4%

Despite challenging market conditions and one less store vs LY

KEY GROWTH DRIVERS:

• Stronger retail performance, through increased conversion rate, traffic and items/basket with stable Y-o-Y gross margin
• All markets driving growth
• A stronger commercial plan to mitigate seasonal risk, leveraging the width of the assortment

3

4

Leverage service

offering

Double down on

private label

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

1

2

Accelerate e-com

Restructure

physical stores

RESET

Top line quick wins and cost control

Accelerate key top line levers

MWB indicators | Still positive indicators for all Must Win Battles

CATEGORY RESET PRICING

Development private label sales share (%-points)

AVAILABILITY

Record low inventory value, while increasing # of pieces

STORE OPERATIONS

Conversion rate Q4 improvement vs. LY (%-points)

+1,5pp

Driven by all three markets

E-COMMERCE PROFITABILITY

Development online gross margins (%)

Indicators for Category reset, Availability (# of pieces), Store operations and E-commerce profitability from internal operational monitoring (non-audited)

We are pleased to have launched a consensus equity solution, in the best interest for all shareholders

• NOK 600 million ✓

• Consensus solution, among all main shareholders ✓

• EGM approved on 29.1.25, expected to be concluded in second half of March ✓

• Capital raised to be used for operational investments, not reducing long-term debt ✓

► REFUEL RESET & RETHINK STRATEGY REALIZATION

Q4 2024 financials

XXL ASA Q4 financial summary

EBITDA | Strengthened, driven by continued cost and margin improvements

• Margin improvement 45 mNOK, underlying cost-saving of 44 mNOK ex. non-recurring
• Reward accruals Q4 2024 around 10 mNOK vs 70 mNOK in Q4 2023
• Underlying EBITDA improvement adjusted for reward, non-recurring and FX 7 mNOK

• Margin improvement more than offsets the effect of sales shortfall in FY24

• Cost savings adjusted for last years currency and non-recurring costs of 149 mNOK

• Adverse currency effect on EBITDA of 6 mNOK from NOK depreciation

COST-OUT | 298 mNOK gross cost savings according to cost program launched Q2 2023

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)
• Freight cost savings calculated on a cost per item level
• Expect additional cost reductions particularly within store rental contracts 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
• Non-recurring costs in Q4 2024 relate to financing, provision for VAT, MAP/APA related costs and reversal of accruals in the Austrian entity in connection with its liquidation process

XXL ASA Q4 2024 balance sheet and cash flow

was 300 mNOK higher in Q4 2023 than Q4 2024

Several materially adverse P&L effects in Q4 2024, amounting to 800 mNOK, majority of which with no cash effect

Description		mNOK impact
	Various non-recurring In the process of securing the holistic financing solution XXL incurred costs within legal advisory, audit, due diligence and other services	~15 (P&L effect)
	Goodwill & Tax XXL has made an impairment of its technical goodwill and deferred tax asset leading to an extra ordinary write-down of 740 mNOK. None of these have cash effects	740 (P&L effect, no cash effect)
	VAT Provision for a VAT claim from the Norwegian Tax Authorities regarding campaigns in the period 2015-2020. The case has been idle since 2021, a conclusion is expected from the authorities in Q2 2025. XXL opposes the claim	44 (P&L effect)

XXL is completing the approved financing solution

• XXL is completing the approved financing solution expected to cover both short-term liquidity needs and allow for working capital investments
• The solution consists 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

Timeline

• EGM approval January 29th
• Subscription period start on or about February 28th
• Subscription period end on or about March 14th
• Payment on or about March 19th
• Registration date on or about March 21st

Summary and final remarks

SUMMARY 2024 | Sales and gross margin are recovering, while OPEX is reduced, but decreased top line holding back further EBITDA improvements

2025 outlook | Driving "Rethink" initiatives to continue growth

Our Reset & Rethink marathon continues in 2025

BACK TO GROWTH

- Driven by continued commercial renewal

LEAN & MODERN OPERATIONS

- Driven by accelerated internal transformation & cost out objectives

DISCIPLINED CAPITAL & INVENTORY STEERING

- Driven by a structured strategic program

Sports unite all

THANK YOU!

Q&A

Appendix

The Nordic sporting goods & outdoor market has now seen 11 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

Sports unite all.