SATS

Interim / Quarterly Report • Aug 21, 2025

Q2 2025 INTERIM REPORT

APRIL-JUNE 2025

CEO SONDRE GRAVIR CFO CECILIE ELDE

INVESTOR RELATIONS: STINE.KLUND@SATS.NO +47 98 69 92 59

• The activity level keep growing due to both member growth and higher activity level per member
• Active members are happy members who stay longer
• Slight negative Easter effect compared to Q2 2024

• The increase in # of group training workouts at 9% exceeding the increase in # of classes at 7%
• The investments in the group training product over the past few years yields results though more workouts as well as higher share of group training members

• Through years of experience, we have created a group training setup that is difficult to replicate

• Senior members increasingly active, indicating relevance across life stages and signals that product and messaging resonate across age groups

• Positive indicator of health awareness and inclusive brand positioning
• The younger generations tend to keep their fitness habits when moving up the age ladder, leading to a clear generation effect as they replace older generations
• Growth in the youth and senior segment improves capacity utilization throughout the day

≤ ≥

• Replacing worn equipment
• Adding more equipment

• Improving layout and flow

• Upgrading look and feel

• Downsizing (if too much space and high rent)
• Re-negotiating lease agreements

Rolling out popular group training concepts

• Using existing equipment and facilities to offer a rapidly growing concept

• Hyrox is a global functional fitness trend, and a race comprised of eight workout stations, broken up with a 1K run between each

• Running program and group classes designed to prepare participants for upcoming races

• Building on the surge in running

• Continuing to roll out newly launched concepts

• Strong member interest in yoga and Pilates reflects broader wellness trends

• Proven uplift from previous class schedule expansion reinforces confidence in continued growth potential
• Autumn schedule set to expand by 16% in total class hours compared to last year
• Higher percentage growth in Sweden, Finland, and Denmark, reflecting the fact that Norway is further ahead in the growth curve

• Stepping up efforts in the strategically important corporate segment
• Proven impact on partner companies' employee engagement and retention
• Launching the initiative "The Workout Hour" to promote workouts as a part of the work week
  • Campaign with a clear message to employers, leaders, and policymakers: investing in physical activity pays off for individuals, workplace culture, and society
  • Simple yet high-impact concept aimed at lowering the threshold for getting started, freeing up time, and fostering a workplace culture where movement is valued
  • Opportunity to position SATS as a partner of choice for corporate wellbeing

FINANCIAL REVIEW Q2 2025

ATS

PRECORE

• Total members up 3% year-over-year, adding 19 000 members since Q2 2024
• The net decline of members in Q2 is consistent with historical second quarter trends, due to lower activity levels during spring and summer
• Members per sqm up 4%, reflecting continued portfolio optimization and better space utilization

• Total revenues lifted by 8% y/y (currency adjusted), following effective pricing initiatives and steady membership growth
• Membership revenues remain the dominant contributor to total revenues, reflecting a healthy and loyal member base
• Membership revenues rose on both higher prices and a larger active member base
• Membership yield strengthened through structured price adjustments, ongoing product enhancements, and stronger uptake of premium products
• Other yield growth supported by higher uptake in both personal training, retail and ancillary service

• Club operating costs up 3% (currency adjusted), reflecting effective cost control
• Continuing to improve the product offering, with 7% more group training classes than the same quarter last year, delivering measurable improvements in churn and upsell performance
• Energy cost stability secured through extended hedging agreements to 2027, with reduced hedge ratios in the later years for flexibility
• Overhead costs in Q2 2024 positively affected by a one-off, and excluding this, overhead increased by 6% year-overyear (currency adjusted), in line with wage increases and targeted investments
• Forward cost outlook affected by price changes on key input factors and wage adjustments from local agreements, combined with ongoing targeted investments in member experience and product quality

SOLID AND IMPROVING PROFITABILITY ACROSS CONSECUTIVE QUARTERS

DISCIPLINED CAPEX SUPPORTING STRENGTHENED MEMBER EXPERIENCE AND SELECTIVE CLUB EXPANSION

SATS

• Underlying strong cash generating capability, supporting expansion and further shareholder distributions
• Negative impact from working capital in the quarter reflects the seasonal settlement of deferred liabilities, mainly related to holiday pay in Norway
• The tax payments reflects improved profitability in recent years, as previously communicated
• Maintenance capex temporarily above the target of 5% of revenues LTM due to timing effects
• Please note: Timing of quarterly rent payments provided a NOK 85 million working capital benefit in Q2 2024, reversed in Q3 2024

• Maintained a strong liquidity position, despite ongoing share buyback programs

• Continued deleveraging, with leverage ratio now slightly below the target range
• Extended the revolving credit facility by one year, moving full maturity to July 2028, with an additional one-year extension option available

Keep leverage in the lower end of the communicated target range of 1.5x-2.0x net debt to EBITDA

Return >50% of annual net profit via a combination of semi-annual dividends and periodic share buybacks

• Distributing 50% of H1 2025 net profit as dividend, as previously communicated

• Dividend per share of NOK 0.63 and a total payout of NOK 127 million

• NOK 100 million share buyback program completed in Q1 2025, including an allocation to the share incentive program

  • 1 million shares cancelled
• New NOK 100 million buyback program initiated in Q2 2025
  • All repurchased shares expected to be cancelled
• Total share buybacks YTD: 4.3 million shares repurchased at a total consideration of NOK 136.7 million

OUTLOOK

Clear strategic focus on the core, continuing the accelerating positive performance cycle, supported by:

• Investments in improved product offering, through club optimizations and innovation of training content
• Consistent prioritization of operational execution and efficiency

Mid-term EBITDA¹ ambition of NOK 1.1 billion, with improvements expected to unfold gradually over time, reflecting a steady progression toward the target

Disciplined CAPEX decisions; increasing club capacity in existing footprint improving return per square meter, strengthening the product offering and building the pipeline to deliver on a moderate club expansion with 8-12 new club openings per year

Delivering on our long-term target of distributing at least 50% of net profit through dividends and share buybacks, with 2025 capital returns set to materially exceed this threshold

APPENDIX

This report includes forward-looking statements which are based on our current expectations and projections about future events. Statements herein, other than statements of historical facts, regarding future events or prospects, are forward-looking statements. All such statements are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements. As a result, you should not place undue reliance on these forwardlooking statements.

The Group reports its financial results in accordance with accounting principles IFRS as issued by the IASB and as endorsed by the EU. However, management believes that certain alternative performance measures (APMs) provide management and other users with additional meaningful financial information that should be considered when assessing the Group's ongoing performance. These APMs are non-IFRS financial measures, and should not be viewed as a substitute for any IFRS financial measure. Management, the board of directors and the long term lenders regularly uses supplemental APMs to understand, manage and evaluate the business and its operations. These APMs are among the factors used in planning for and forecasting future periods, including assessment of financial covenants compliance.

NORWAY

SWEDEN

FINLAND

SATS

DENMARK

REPORTING UNDER IFRS 16

AMOUNTS IN NOK MILLION	REPORTED 02 2025	CHANGE IFF School	EXCL. IFRS 16 02 2025
BALANCE SHEET ITEMS - IFRS 16
Property, plant and equipment	835	0	835
Right-of use assets	4 765	4 765	O
Deferred tax assets	136	76	60
Prepaid expenses and accrued income	249	-100	349
Total assets	9 450	4 741	4 708
Equity	1 501	-386	1 886
Non-current lease liability	4 191	4 191	0
Current lease liability	975	975	0
Other current liabilities	308	-39	346
Total liabilities	7 949	5 127	2 822
PROFIT & LOSS ITEMS - IFRS 16
Revenue	1 393	O	1 393
Cost of goods sold	-36	0	-36
Personnel expenses	-491	0	-491
Other operating expenses	-287	310	-597
Depreciation and amortization	-306	-251	-55
Impairment of assets held for sale	O	0	0
Operating profit	274	59	215
Net financial items	-68	-63	-4
Profit/loss before tax	206	-4	210

SATS

DEFINITIONS

TERM	DEFINITION
Average number of members per club	Outgoing member base divided by outgoing number of clubs
Average revenue per member (ARPM)	Calculated as monthly total revenue divided by the average member base
Capex: Expansion capital expenditures	The sum of investments related to acquisitions and greenfields, as well as capex related to the perfect club initiative and digital expansion
Capex: Upgrades and maintenance capital expenditures	Club upgrades and maintenance and IT capital expenditures
Cash conversion	Operating cash flow divided by EBITDA before impact of IFRS 16
Country EBITDA before impact of IFRS 16	EBITDA before impact of IFRS 16 less allocation of Group overhead and cost allocations
EBIT before impact of IFRS 16	EBIT adjusted for the impact of implementation of the IFRS 16 lease standard
EBITDA	Profit/(loss) before net financial items, income tax expense, depreciation and amortization
EBITDA before impact of IFRS 16	EBITDA adjusted for the impact of implementation of the IFRS 16 lease standard

TERM	DEFINITION
Group overhead	Consists of group services such as commercial functions, IT, finance and administration
Leverage ratio	Net debt divided by last twelve months EBITDA before impact of IFRS 16
Member base	Number of members, including frozen memberships, excluding free memberships
Operating cash flow	EBITDA before impact of IFRS 16 less upgrades and maintenance capital expenditures and working capital
Other yield	Calculated as monthly other revenue in the period, divided by the average member base
Total overhead	The sum of country overhead and group overhead
Underlying operating cash flow	Operating cash flow less expansion capital expenditures
Yield	Calculated as monthly member revenue in the period, divided by the average member base

RECONCILIATION OF FREE CASH FLOW BRIDGE AND CONSOLIDATED STATEMENT OF CASH FLOWS

FREE CASHFLOW	CONSOLIDATED STATEMENT OF FLOWS
	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 inventory
	Change in accounts receivables
Working capital	Change in trade payables
	Change in other receivables and accruals
	Purchase of property, plant and equipment (contains both maintenance capex and expansion capex)
Expansion capex	Proceeds from property, plant and equipment
	Acquisition of subsidiary, net of cash acquired
Interest and tax	Taxes paid in the period
	Paid interests on borrowings
Other	Gain/loss from disposal or sale of equipment
Cash flow items not included in free cash flow	Loan to related parties
	Repayments of borrowings
	Proceeds from borrowings
	Proceeds from issues of shares
	Proceeds from sale of own shares
	Transaction costs from issues of new shares
	Other financial items

SATS

WHY INVEST IN SATS?

• Largest fitness club chain in the Nordics¹
• Particularly strong position in the key urban clusters
• Extensive and accessible club network
• Strong value proposition and wide offering

Manned reception welcoming and helping members with a wellequipped retail area

Well-equipped fitness floor with the broadest equipment mix in the Nordics

Physiotherapy and sports massage to keep your training on track

Let your child be taken good care of in a safe environment while you work out

Personal guidance and training programs to members on the fitness floor

Strong digital offering with famous and high-quality instructors

Wide offering of group training classes enabling members to find a class that is right for them

Energy and support from a strong community of SATS employees and members

	Examples

younger members

training expands peak capacity

• The young segment works out in the afternoon, but with a longer evening peak
• Adults work out in the morning, lunch and after work
• Seniors often work out in the late morning

Share of members in capital cities using more than one club

% of all SATS members with minimum 10 workouts during 2024

• Our strong club clusters create a unique training offering and a barrier to entry, especially in central areas
• Members get a unique option to workout where they live, work and travel
• Differentiated product offerings on clubs give members access to a wide product offering including fitness floor, HIIT, Hot Yoga, Indoor running, Cycling, Sauna, Childcare and more

• Welcoming staff greeting members with a smile
• Sales guiding ensures the best membership and onboarding for all new members
• Support for all questions
• Manned retail shop

• Clean and tidy wardrobes from frequent cleaning rounds
• Ensures a safe environment
• Quickly fixing and reporting issues and damages

• Organized and tidy fitness floor from frequent "club resets"
• Quick fixing and reporting of equipment issues ensures member satisfaction and efficient SQM utilization

• Instructors create a high-energy and enjoyable environment that keeps members coming back
• Manned group training creates a community and accountability to establish lasting training habits

• Highly educated PTs ensures motivation and guiding for optimal progress and training results
• PTs ensure a supportive and positive community on the fitness floor

• Welcoming club atmosphere
• Safe environment
• Emergency response from staff trained in CPR

All governed by our common operating model ensuring consistent high standard

40

Passive share reduction, Mar. 2024 vs. Mar. 2019

Increase in workouts, full year 2024 vs. 2019

NPS increase, Mar. 2024 vs. Mar. 2019

Reduced member base churn, full year 2024 vs. 2019:

4. ROBUST BUSINESS MODEL AND ATTRACTIVE FINANCIAL CHARACTERISTICS

A DIVERSIFIED, LOW-RISK BISINESS	STRONG PERFORMANCE TRACK RECORD	ATTRACTIVE AND GROWING PROFITABILITY	STRONG CASH GENERATION
Attractive business model with a strong market position	Continued volume growth across portfolio	Revenue growth in mature clubs has high drop-through to EBITDA	Maintenance and expansion capex discipline
High visibility subscription model and diversified revenue stream supported by a large member base	Positive momentum in yield and track record in driving other revenue	Profitable and efficient club operations
Diversified revenue structure with ~20% contribution from other revenue	Solid member loyalty with churn rates below industry average	Well-invested local and central overhead and IT backbone	Flexibility to both reinvest in future growth and return excess capital to shareholders via a combination of dividend and buyback of shares
Broad geographic exposure to stable Nordic countries	Historically shown double-digit EBITDA growth enhanced by operating leverage	Value creation potential in lifting newest clubs to SATS standard

4. STRONG TOP-LINE GROWTH AND SOLID MARGIN EXPANSION SINCE 2022

MNOK

• The current club portfolio still has significant financial upside driven by both volume growth and ARPM improvements
• We have a proven track record of unlocking value by working strategically on a club-by-club basis to drive performance improvements
• By prioritizing high-potential clubs and implementing targeted initiatives, we aim for a mid-term EBITDA¹ of NOK 1.1 billion

5. DELIVERING ON OUR MID-TERM AMBITION WILL RESULT IN TARGET EBIT MARGIN OF 15% AND FREE CASH FLOW CONVERSION OF 55% BEFORE CLUB EXPANSION

PROFITABILITY FRAMEWORK

CASH CONVERSION FRAMEWORK

SATS has delivered on all key actions outlined at the 2022 CMD– and the outlook for continued growth remains strong

Clear market leader in a growing market, supported by a powerful health and wellness megatrend

Superior product offering driven by extensive clusters, prime locations, market-leading group training, highquality fitness floor and competent employees

Modern technology and data platform enabling engaging digital member products, operational excellence and strong data-driven decision-making

• Mid-term EBITDA¹ ambition of NOK 1.1 billion
• High cash conversion of 55%
• Maintenance capex at ~5% of revenues
• New club openings of ~8-12 per year
• Continued solid balance sheet with leverage in the lower end of 1.5-2.0x net debt/EBITDA¹
• Significant shareholder distributions of at least 50% of net profit through dividends and share buybacks