Technogym — Earnings Release 2021

May 12, 2021

Informazione Regolamentata n. 1845-28-2021		Data/Ora Ricezione 12 Maggio 2021 14:02:24	MTA
Societa'	:	TECHNOGYM
Identificativo Informazione Regolamentata	:	146983
Nome utilizzatore	:	TECHNOGYMNSS01 - -
Tipologia	:	3.1
Data/Ora Ricezione	:	12 Maggio 2021 14:02:24
Data/Ora Inizio Diffusione presunta	:	12 Maggio 2021 14:02:25
Oggetto	:	quarter 2021	Press Release consolidated revenues first
Testo del comunicato

Vedi allegato.

The Technogym Board of Directors reviewed the consolidated revenues of the first quarter of 2021

TECHNOGYM GROWS DOUBLE DIGIT

• CONSOLIDATED REVENUE: Euro 128,7 million (+10.2% Vs first quarter 2020). At constant exchange rates: +13.1% Vs 2020
• Home Fitness BtoC growth accelerates, +129.2% at Euro 51.3 million in the period, with an incidence on revenues of 40% (Vs 15% in Q1 2020)
• BtoB recovers in the geographical areas that are restarting

Nerio Alessandri, Chairman and CEO, commented:

"Technogym closes the first quarter of 2021 with double-digit growth in revenue, substantially in line with the first quarter of 2019, and a more than proportional growth in profitability. This is the result of a further acceleration in home fitness sales at +130% and the recovery of BtoB, starting from the health segment. The Fitness Club segment is also restarting, especially in Asia Pacific and UK, areas in which end-users are enthusiastically going back to gyms and operators have confirmed their investment plans. In the coming months also the rest of Europe and North America are expected to restart.

Within the wellness sector, at global level, the hybrid model is emerging as the new trend: training not only in the gym but also at home and vice versa. Technogym's strategy has been, for years, represented by "Wellness on the go" - thanks to our exclusive digital ecosystem, we are the only ones to offer people an online and offline training experience at home, in the gym, in the office or on vacation – that is proving to be more innovative than ever in the current post covid scenario.

For many years we have spread our ecosystem of connected products in thousands of fitness centers and in July we will launch the Technogym app, to offer people better results in less time with an unprecedented level of personalization, engagement and customer experience. The Technogym app, connected to the equipment, is also equipped with a vast library of video on-demand workouts and an AI-based coach. The coach follows the user and optimizes the program according to his needs allowing him to feel part of the community.

In recent weeks we are already working on the upcoming Tokyo Olympics, the eighth for Technogym, to support the athletic training of over 12,000 champions from all over the world. We look to the rest of 2021 with confidence: in the second quarter we are seeing an increase in the growth rate compared to the first and, with a passionate and competent management, we are focused on our path to reach a billion in turnover in 2024.

I would like to thank our customers who, all over the world, are showing confidence in our products and solutions for the maximum satisfaction of end users and the team for their commitment and dedication in the last difficult year".

Cesena (Italy) 12 May 2021 – 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 three months of 2021.

Revenue Performance at 31 March 2021

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

The results of the first quarter of the year continue to be impacted by the global health crisis triggered by the COVID 19 epidemic, although the first signs of improvement are beginning to be registered in the geographical areas where, thanks to the advancement of the vaccination campaign, a gradual training of restrictions and a consequent return to the pre-COVID situation.

In this scenario, the company recorded a growth in consolidated revenues of 10.2% during the first three months of 2021 compared to the same period in 2020. At constant exchange rates the growth is +13.1%.

Sales in the first three months of 2020 stood at 128.7 million Euros compared to 116.8 million in the same period of 2020.

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

• Client Category;
• Geographical Area;
• Distribution Channels;

Revenue by Client Category

(In thousands of Euro and percentage of total	Data at March 31st
revenues)	2021	2020	'21 VS '20	%
BtoC	51,343	22,402	28,941	129.2%
BtoB	77,382	94,374	(16,992)	(18.0%)
Total Revenue	128,725	116,776	11,949	10.2%

First quarter revenue confirms the strong growth of the Home customer segment compared to the previous year (+ 129% Y / Y, further accelerating compared to the + 97% recorded in the fourth quarter of 2020) thanks to the wide range of products and Technogym services in line with the growing demand for at-home training. On the BtoB side, there is a marked improvement compared to last year thanks to the initial signs of recovery from geographical areas where the incidence of the pandemic is lower and thanks to the satisfactory performance of various Commercial segments including Health. The performance of the BtoB segment is even more important in light of the not particularly favorable comparison basis given the low impact of COVID 19 on the business in the first quarter of last year.

(In thousands of Euro and percentage of total revenues)	Data at March 31st
	2021	2020	2021 vs 2020	%
Europe (ex Italy)	62,000	61,177	823	1.3%
MEIA	13,472	7,952	5,520	69.4%
APAC	22,937	17,771	5,166	29.1%
Italy	15,702	12,466	3,236	26.0%
North America	11,864.	14,773	(2,908)	(19.7%)
LATAM	2,750	2,638	113	4.3%
Total Revenue	128,725	116,776	11,949	10.2%

Revenue by geographic areas

The view by geographical area is influenced by the different stages of evolution of the pandemic as well as by the contribution, in some cases significant, provided by Home sales, which are remembered to be mainly concentrated in the European area. In this context, Technogym recorded a revenue growth in all the geographic areas, with the exception of North America, a territory in which Technogym has yet to finalize the implementation of the home model, already implemented in other geographic areas. In Europe, the main geographical area of the group, growth of 26% is recorded in Italy, while the rest of Europe stands at + 1.3%. Excellent performance in APAC which, after the signs of recovery already highlighted in the last quarter of 2020, exceeds the turnover of Q1 2019. Excellent signs of recovery also from the other emerging geographies of LATAM and MEIA where the recovery of orders previously suspended in 2020 made it possible to return to growth and, in the case of MEIA, to exceed revenue of Q1 2019.

Revenue by distribution channels

(In thousands of Euro and percentage of total revenues)	Data at March 31st
	2021	2020	2021 vs 2020	%
Field sales	68,504	81,097	(12,593)	(15.5%)
Wholesale	33,922	22,181	11,741	52.9%
Inside sales	23,231	11,010	12,221	111.0%
Retail	3,068	2,488	580	23.3%
Total Revenue	128,725	116,776	11,949	10.2%

With regard to the revenue performance by sales channel, the excellent performance generated by the channels most exposed to home fitness should be noted. Retail, meaning the Group 10 flagship stores, recorded a growth in turnover of 23.3% while the Inside Sales, which includes the teleselling and ecommerce channels, recorded a performance of 111%, confirming the triple growth figure recorded in the last quarter of 2020. Field Sales (BtoB) is the channel most impacted by the lock-down with a contraction of 15.5%, an improvement compared to the previous quarters, while the Wholesale channel recorded an increase of 52.9% thanks to the better performances recorded in some countries no longer particularly affected by the pandemic.

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The Manager responsible for preparing the company's financial reports, Massimiliano Moi, 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 Contacts

Technogym Press Office – Enrico Manaresi emanaresi@technogym.com - +393403949108

Technogym Investor Relator – Enrico Filippi investor\_relations@technogym.com - +390547650111

Tancredi Group – Giovanni Sanfelice di Monteforte giovanni@tancredigroup.com - +447775858152

Notes to the press release

Technogym

Founded in 1983, Technogym is a world-leading international brand in products, services and digital solutions for fitness and wellness. With over 2.200 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 was the official supplier for the last seven Olympic Games: Sydney 2000, Athens 2004, Turin 2006, Beijing 2008, London 2012, Rio 2016, PyeongChang 2018 and has been named Official Supplier also for the forthcoming Tokyo Olympic Games

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.