Technogym — Earnings Release 2019

Oct 23, 2019

Informazione Regolamentata n. 1845-25-2019		Data/Ora Ricezione 23 Ottobre 2019 13:26:05	MTA
Societa'	:	TECHNOGYM
Identificativo Informazione Regolamentata	:	123844
Nome utilizzatore	:	TECHNOGYMN02 - Alghisi
Tipologia	:	REGEM
Data/Ora Ricezione	:	23 Ottobre 2019 13:26:05
Data/Ora Inizio Diffusione presunta	:	23 Ottobre 2019 13:26:06
Oggetto	:	Press release revenues 9 months 2019
Testo del comunicato

Vedi allegato.

The Technogym Board of Directors approved the consolidated revenues of the first nine months of 2019

TECHNOGYM: SALES GROW

• CONSOLIDATED REVENUES: Euro 465 millions, +7,2% vs first nine months of 2019
• Revenues grow in all areas, in particular North America (+17%) and Asia Pacific (+25%)

Nerio Alessandri, Chairman and CEO, commented:

"After the first half good performance, Technogym confirms a growth above the reference market over the nine months. The robust growth trend continues in high-potential areas such as North America (+ 17%) and Asia Pacific (+ 25%).

All-round innovation, from the product, to the service, to the digital ecosystem continue to represent the priorities of our strategy. Technogym continues to be focused on spreading the CLUB 4.0 solution aimed at transforming the offer of fitness centers: from a one-fits-all approach to a customized offer thanks to the introduction of shop-in-shop style formats able to offer different training experiences dedicated to users with different profiles, needs and passions.

Within this scenario the company has recently launched BIOCIRCUIT, one of the seven new formats, the circuit of connected products not only for the fitness market, but also for the rehabilitation sector. BIOCIRCUIT is able to offer users of various levels, including beginners and the elderly, a guided training experience that adapts automatically to the needs of each individual user thanks to artificial intelligence.

The revenue trend for the first nine months therefore makes us confident that we will achieve our growth targets for the year"

Cesena (Italy), 23 October 2019 – The Board of Directors of Technogym (MTA: TGYM), a globally leading company operating in the fitness equipment area and active in the broader wellness sector, has reviewed today the consolidated revenues of the first nine months of 2019.

Revenue trend at September 30th 2019

Consolidated results have been prepared in compliance with the International Reporting Standards issued by the International Accounting Standards Board.

After the sales growth reported in 2018 and in the first half of 2019, also in the first nine months of this year the Company posted a 7.2% consolidated revenues increase compared to the same period of 2018. At constant exchange rates, consolidated revenues growth stands at 5.4%

In the first nine months of 2019, sales stood at Euro 464.8 million versus Euro 433.5 million recorded in the same period of 2018. It's worth noting the increase in sales posted in hi-potential markets - North America (+17.4%) and Asia Pacific (+24.9%)

Here below we provide a short analysis of revenues broken down by:

• geographic areas
• distribution channels

Revenues by geographic areas

(In thousands of Euro and percentage of total revenues)	Data at September 30th
	2019	2018	'19 VS '18	%
Europe (ex Italy)	227.400	224.689	2.711	1,2%
APAC	86.600	69.309	17.291	24,9%
North America	60.100	51.194	8.906	17,4%
Italy	41.400	41.239	161	0,4%
MEIA	34.300	32.945	1.355	4,1%
LATAM	14.963	14.136	827	5,9%
Total Revenues	464.763	433.512	31.251	7,2%

During the first nine months of 2019 the Technogym Group continues to grow in all geographical areas. A significant result was confirmed in Asia Pacific and North America, strategic markets for the future development of the company, with growths of + 25% and + 17% respectively. South America and the Middle East India and Africa area also show a growth performance compared to the first nine months of 2018. In Europe, which represents the main market, the company maintained its 2019 market shares with excellent performance in Germany, France and Benelux partially balanced by the difficult economic environment in Russia and by the growing uncertainties linked to Brexit in the UK. In Italy the growth trend is confirmed after the excellent result of 2018.

Revenue by distribution channels

(In thousands of Euro and percentage of total revenues)	Data at September 30th
	2019	2018	'19 VS '18	%
Field sales	342.383	315.352	27.031	8,6%
Wholesale	89.100	87.666	1.434	1,6%
Inside sales	27.540	25.713	1.827	7,1%
Retail	5.740	4.781	959	20,1%
Total Revenues	464.763	433.512	31.251	7,2%

Regarding sales performance by sales channel: Field Sales continues to represent the main distribution channel with a growing performance (+ 8.6%). The WholeSales (Distributors) channel shows a slight growth (+ 1.6%), despite the unfavourable situation in many countries covered by distributors. Good growth of the Inside Sales channel (Ecommerce and teleselling) while Retail, which has a marginal weight in the company's business model, performing a showroom function to support the other main direct sales channels from an omni-channel perspective grows more than 20%.

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The Manager responsible for preparing the company's financial reports, Andrea Alghisi, declares that, pursuant to paragraph 2 article 154-bis of the Consolidated Law on Finance (TUF), the accounting data contained in this press release reflects the Company's accounts, books and records.

Media Relations
Technogym Press Office
Enrico Manaresi Tancredi Group	emanaresi@technogym.com	+393403949108
Giovanni Sanfelice di Monteforte	giovanni@tancredigroup.com	+447775858152
Investor Relations Carlo Capelli Enrico Filippi	investor.relations@technogym.com	+39 0547 650111

Notes to the press release

Technogym

Founded in 1983, Technogym S.p.A. is a world-leading international supplier of products, services and solutions in the fields of fitness and wellness. With over 2,000 employees and 14 branches in Europe, the United States, Asia, Middle East, Australia and South America, the company exports 90% of its production to over 100 countries. Technogym S.p.A. was the official supplier for the last seven Olympic Games: Sydney 2000, Athens 2004, Turin 2006, Beijing 2008, London 2012, Rio 2016, PyeongChang 2018.

Forward looking statements

Certain statements in this press release could constitute forward-looking statements, including references that do not exclusively relate to historical data or current events, and as such, uncertain. These statements are based on a number of assumptions, expectations and other factors that could lead to actual results which differ, even substantially, from those forecast. There are numerous factors that could generate results and trends that are notably different from the forward looking information in this press release. These elements include but are not limited to the ability to manage the effects of the current uncertain international economic scenario, ability to acquire new assets and integrate them effectively, ability to forecast future economic conditions and changes in consumer preferences, ability to successfully introduce and market new products, ability to maintain an efficient distribution system, ability to achieve and manage growth, ability to negotiate and maintain favorable license agreements, currency fluctuations, changes in local conditions, ability to protect intellectual property, problems with information systems, risks associated with inventory, credit and insurance risks, changes in tax regulations, and likewise other political, economic, legal and technological factors and other risks and uncertainties. These forwardlooking statements were issued as of today's date and we shall not be under any obligation to provide any updates and they are not a reliable indication of future performance.

Alternative performance indicators

This press release provides a number of alternative performance indicators used by management to allow an improved assessment of the business performance and the financial performance and position of the Group. These indicators are not recognized as accounting measures in the context of IFRS and should therefore not be considered as an alternative way to assess the financial performance of the Group and its financial position. Since the calculation of these measures is not governed by the applicable accounting standards, the calculation methods applied by the Company may not be the same as those used by others and therefore these indicators may not be comparable. Therefore, investors should not place undue reliance on this data or information. This press release also contains certain financial, operating and other indicators that have been adjusted to reflect non-recurring extraordinary events and transactions, known as special items. This 'adjusted' information was included to allow better comparison of the financial information for all periods; however this information is not recognized as economic or financial data within the scope of the IFRS and/or does not constitute an indication of the historical performance of the Company or Group. Therefore, investors should not place undue reliance on this data or information.