XXL

Investor Presentation • Apr 29, 2025

XXL ASA – Q1 2025

Strong topline growth of 7 per cent, driven by "Reset and Rethink" turnaround plan

Presentation of Financial Results April 29th, 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 first quarter 2025, held on April 29th, 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.

First growth quarter since Q1 2023 | Return to growth despite challenging market conditions

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

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

RESET

Top line quick wins and cost control

Accelerate key top line levers

RESET indicators | Increasingly positive indicators across all Must Win Battles

Revenue growing due to increased availability, driven by strengthened inventory composition

Development private label sales share (%-points)

Significant increase in # of pieces

STORE OPERATIONS

+9%

Conversion rate Q1 improvement vs. LY (%-points)

+3,3pp Conversion

E-COMMERCE PROFITABILITY

Development online profit margins (%)

RETHINK | We are accelerating and driving positive development across all rethink pillars

Restructure physical stores | We have many exciting projects planned for 2025, and have already closed, opened, and re-structured several stores to optimize our footprint

Double down on Private Label | Our latest in-house brand launch, with a very promising start in Q1

Reset & rethink strategy increasingly bearing fruit as we are Back to Growth!

XXL ASA Q1 financial summary

Category development | All sectors show growth despite challenging winter driven by successful inventory de-risking and capital allocation as well as dual campaign execution

*Note: Category figures fom internal reporting system (not accounting consolidation system), meaning some discrepancy vs consolidated & audited figures will occur

EBITDA | Marginally improved, driven by revenue increase

Cost-out program progressing well, ~300 mNOK done – Ambition to achieve additional 300 mNOK in cost and capital out by end of 2026

• Phase one of our cost out program was delivered in 2024

• To further secure profitability improvements XXL has established a phase II targeting a MNOK 300 reduction in cost and net working capital by end 2026
• The cost and capital reductions will be achieved through a broad range of measures including:
  • o Logistics & supply chain optimization
  • o Real estate portfolio optimization
  • o Labor efficiency
  • o Procurement, utilizing scale from our Nordic platform
  • o Technology implementation in core process including supply chain, category management & marketing
  • o General cost efficiency within selling, general and administrative Expenses

XXL ASA Q1 2025 balance sheet and cash flow

Rights issue completed – mandatory offer expire May 13th

• NOK 600 million rights issue closed in March

• NOK 300 million bridge loan repaid

• Mandatory offer from Frasers Group launched April 15th, with expiry May 13th 2025

A statement from the Board of Directors regarding the mandatory offer expected on or about May 5th

2025 outlook | Driving "Rethink" initiatives to fuel continued growth

Fundamentally we are seeing the Reset & Rethink strategy bearing fruit

But we are now adding new cost out | targets and reinforcing NWC focus

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 12 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.