Technogym — Investor Presentation 2017

Aug 4, 2017

Disclaimer

This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person.

This presentation might contain certain forward-looking statements that reflect the Company's management's current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are based on Technogym S.p.A.'s current expectations and projections about future events. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of Technogym S.p.A. to control or estimate. Youare cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. Technogym S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forward-lookingstatements to reflect events or circumstances after the date of this presentation.

Any reference to past performance or trends or activities of the Technogym Group shall not be taken as ^a representation or indication that such performance, trends or activities will continue in the future.

This presentation does not constitute an offer to sell or the solicitation of an offer to buy Technogym's securities, nor shall the document form the basis of or be relied on in connection with any contract or investment decision relating thereto, or constitute ^a recommendation regarding the securities of Technogym.

Technogym's securities referred to in this document have not been and will not be registered under the U.S. Securities Act of ¹⁹³³ and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Stefano Zanelli, the Manager in charge of preparing the corporate accounting documents, declares that, pursuant to art. 154-bis, paragraph 2, of the Legislative Decree no. ⁵⁸ of February 24, 1998, the accounting information contained herein correspond to document results ,books and accounting records.

Revenues showing mid single-digit growth

Revenue growth driven primarily by LATAM, NA & APACRevenue breakdown by geography - €m, percentage incidence & change

H1 2017

High single-digit growth on wholesale and field sales

Revenue breakdown by channel - €m, percentage incidence & change

Strictly Private and ConfidentialH1 2017

Cost base impact substantially in line with Y-1 performance excluding non-recurring costs

(*) excluding non recurrent costs

EBITDA adjusted growing at ∼20% vs Y-1 with positive impact on profitability (15,8% vs 14,1% of Y-1)

% REV

Key comments

EBITDA adjusted margin increase:

• • Positive price effect, especially thanks to cardio products family
• • Improving product mix due to higher weight of cardio family
• • Labor direct costs improving thanks to production processes optimization
• • Raw material direct costs benefiting by improving purchasing negotiation and product re-engineering

Trade Working Capital at 11,5% on revenues from 10,4% of Y-1

Working Capital (€m)

€ m	J 2 0 1 6 n u	J 2 0 1 7 n u
I i t n e n o r e s v	6 8, 0	7 5, 7
T d i b l r a e r e c e v a e s	8 8, 6	8 9, 6
T d b l r a e p a y a e	( ) 1 0 0, 8	( ) 9 9, 4
C T d W k i i l t r a e o r n g a p a	5 5, 9	6 5, 9
% L T M f l t t o o a r e v e n u e	1 0, 4 %	1 1, % 5
O h / ( l i b i l i i ) t t t t e r c r r e n a s s e s a e s u	( ) 2 6, 8	( ) 4 5, 3
C l i b i l i i t t t r r e n a a e s u x	( ) 4, 4	( ) 4, 6
P i i r o v s o n s	( ) 1 6, 4	( ) 1 2, 7
C N W k i i l t t e o r n g a p a	8, 4	3, 3
L T M f l % t t o o a r e v e n u e	1, 6 %	0, 6 %
I T 1 t n v e n o r y u r n o v e r	6, 0	6 5,
D S l O d i ( D S O ) 2 t t a s a e s s a n n g y u	5 0, 5	4 8, 0
O ( O ) D P b l d i D P 3 t t a y s a y a e s u s a n n g	1 0 4, 4	9 8, 5

Key comments

Inventories

• Mainly formed by finished products (60,2m€) and raw production materials (15,5m€)

Trade receivables

• •Slightly increasing vs. June 2016 (1m€)
• •Good quality of trade receivables in each country
• •Improving DSO (-2,5 days vs. Y-1)

Trade payables

• • Slightly decreasing vs. Y-1, mainly due to production plant suppliers
• •DPO lower compared to Y-1 (-6 days vs Y-1)
• • Higher incidence of services purchase showing lower DPO

Other assets and liabilities (June 2017)

• • Mainly impacted by:
• •VAT tax receivables (5,5m€)
• •Advances to suppliers and accruals (5m€)
• •Payables to employees (10m€)

• •Advances from customers (18,3m€)

• Calculated as revenues for products, spares parts, hardware ^e software divided by gross inventory;

• Calculated as trade receivables net of VAT (∼11%) divided by revenues; 3. Calculated as trade payables net of VAT (~7%) divided by cost of products and cost of service

Excluding non recurrent property investment, CAPEX would be higher than Y-1

Strictly Private and Confidential

Net Financial Debt (€m)

€m	3 0 Ju 2 0 1 6 n	3 0 Ju 2 0 1 7 n
C h & h iv le t a s c a s e q a n u	( ) 5 3, 1	( ) 3 9, 0
Cu f in ia l r iv b le t rre n a nc e c e a s	( 0, 4 )	( 0, 6 )
Cu ba k de b t t rre n n	7 7, 5	4 6, 6
f w h ic h g d by Co i d Cr d i fac i l i ies te t te t t o ran mm e	4 1	1 0 5,
f w h ic h g d by Un i d Cr d i fac i l i ies te t te t t o ran co mm e	3 6, 5	3 1, 6
Cu f n ion de b t p t t t rre n or o on c ur re n	2 4, 8	1 9, 6
O f he ina ia l de b t t t r c ur re n nc	9 7,	6, 8
Ne f in ia l d b t c t t u rre n a nc e	1 1 0, 2	7 3, 0
No f in ia l d b t t n cu rre n a nc e	8 8, 5	7 6, 2
F in ia l n d b t t a nc e e	1 4 5, 2	1 0 9, 6
N F D / E B I T D A ( L T M 1 2m )	1, 4x 5	1, 0 2x

Key comments

Solid cash position despite €13m dividend pay out

Current bank debt

• • Mainly composed of credit lines stand-by and short-term financing. As of 30/06/2017
• Lines of credit and overdrafts uncommitted for ~76€m of which €31,6m drawn (revocable / floating rate: EURIBOR + spread)
• − Committed credit line (medium-long term) for ~€45m o/w €15m drawn (floating: EURIBOR + spread)

Current portion of non-current debt / Non current financial debt

• • Flexible financial structure based on bank amortizing loans with ~2,1y duration (floating: EURIBOR + spread)
• • During H1-17 one amortizing loan has been hedged with a plain vanilla interest swap (Notional: 18m€, maturity 2020)

Net Financial Debt walk

Profit and Loss statement

€m	Ju 2 0 1 6 n	Ju 2 0 1 7 n	Ju 2 0 1 6 n vs Ju ∆ 2 0 1 7 % n
To l re ta ve nu e	2 5 0, 0	2 6 6, 4	6, 6 %
Co i l lar d c b le ia ls d t o te s r ra w, a nc y an on su m a ma r an ds fo le g oo r re sa	( 8 8, 6 )	( 9 0, 9 )	2, 6 %
Se ice Re ls d lea ta rv n an se s ,	( 6 9 ) 7,	( 6 8, 1 )	0, 3 %
f w h ic h ( ) t t re nt o co s no cu rre	( ) 2, 2	( ) 0, 0
Pe l c t rso nn e os	( ) 5 8, 1	( ) 6 2, 0	6, 7 %
f w ( ) h ic h t t re nt o co s no cu rre	( ) 0, 1	( ) 0, 0
De ia ion isa ion d w i do t t t te- p rec s, am or s a n r wn s	( ) 1 0, 7	( ) 1 1, 4	6, 6 %
Pr is ion fo is k a d c ha ov r r n rg es	( ) 1, 6	( ) 1, 5	( ) 4, 2 %
O he ion t t t r o p er a s c os f w h ic h ( ) t t re nt o co s no cu rre	( ) 5, 3 ( 2, ) 7	( ) 2, 5 0, 2	( ) 5 2, 3 %
S ha f re l j in t t v tu re o su o en re	0, 1	( 0, 6 )	( 1 4, % ) 5 5
Ne ing inc t o t p er a om e	1 7, 9	2 9, 4	6 4, 6 %
Ma in ( ) % rg	7, 2 %	1 1, 0 %
F ina ia l inc d ( ) nc om e a n ex p en se s	( 1, 1 )	( 2, 8 )	1 6 0, 9 %
Pr f i ( los ) be fo t ta o s re x	1 6, 8	2 6, 6	5 8, 4 %
Ta xe s	( ) 7, 6	( ) 8, 0	5, 9 %
Pr f i ( los ) be fo ino i in t ty te t o s re m r re s	9, 2	1 8, 6	1 0 1, 8 %
( ) Ma in % rg	3, 7 %	7, 0 %
f ( ) fo f m Pr i los he ino i in t t ty te ts o s r ea r o r res y Pr f i fo he t t o r ea r	( ) 0, 1 9,	( ) 0, 1 1 8, 5	( ) 2 5, 9 % 1 0 3, 0 %
y	1

Key comments

Net operating income

• • Non recurring items not present in 1H 2017
• • Increase both in sales volume and sales price
• • Optimization of production processes with positive impact on manufacturing direct costs
• • Lower opex despite increase in sales

Positive FX impact driven primarily by USD, RUB and BRL partially compensated by negative impact of GBP (vs 1H2016)

• •+€1,5m on revenues
• •+€1,0m on EBITDA ADJ
• •+€1,0m on NET RESULT

Tax rate

• • Italian tax rate (IRES) reduced from 27,5% H1 2016 to 24% H1 2017
• • Subsidiary earning harmonization

EBITDA Reconciliation

			B o
€ m	J 2 0 1 6 u n	J 2 0 1 7 u n J	B A u J 2 0 1 6 n s u v A 2 0 1 7 ∆ % u n
i i N t t e o p e r a n g n c o m e	1 7, 9	2 9, 4	6 4, 6 %
L T M I P b f 2 0 1 5 e o r e
R i t t t e s r c r n g c o s s u u	0, 6	( ) 0, 0
C l i t t o n s u a n c e s c o s s
O C I P t o s	2 3 ,	( 0, 2 )
B i l ( i ) t r a s a p r e o s e a r x v u y	2 1 ,	0, 0
C h i W H l i i i t t n a g a o n s
T l i i t t t o a n o r e c u r r n g e m s	5, 0	( ) 0, 2	( ) 1 0 3, 5 %
A d j d N i i t t t u s e e o p e r a n g n c o m e	2 2, 9	2 9, 3	2 7, 9 %
D i i i i d i d t t t t e p r e c a o n s, a m o r s a o n s a n w r e- o w n s	( ) 1 0, 7	( ) 1 1, 4	6, 6 %
f P i i i k d h r o v s o n o r r s a n c a r g e s	( ) 1, 6	( ) 1, 5	( ) 4, 2 %
E B I T D A d j d t a s e u	5, 3 2	4 2, 2	2 0, 0 %
M i % a r g n	1 4, 1 %	1 8 % 5,
N i o n r e c u r r n g	5, 0	( ) 0, 2
E B I T D A	3 0, 2	4 2, 4
i M % a r g n	1 2, 1 %	1 5, 9 %

Cash Flow statement

€m	Ju 2 0 1 6 n	Ju 2 0 1 7 n	Ju 2 0 1 6 n vs Ju 2 0 1 7 ∆ n as s.	Ju 2 0 1 6 n vs Ju 2 0 1 7 ∆ % n
Pr f i fo he t t o r y ea r	9, 2	1 8, 6	9, 4	1 0 1, 8 %
De ia ion iza ion d im irm los t t t t p rec am or a n p a en se s ,	1 0, 7	1 1, 4
Pr is ion ov s	1, 6	1, 5
S ha f n l fro j in t re t t v tu re o e su m o en res	( 0, 1 )	0, 6
f Ne ina ia l e t nc xp en se s	1, 2	2, 6
Inc / ( ) fro inv tm ts om e ex p en se s m es en	( ) 0, 1	0, 2
Inc tax om e ex p en se s	7, 6	8, 0
Ca h f low fro ing iv i ies be fo ha in k ing i l t t t ta s s m op er a ac re c ng es wo r ca p	3 0, 0	4 2, 9	1 2, 9	4 2, 9 %
C ha in inv to ng e en ry	( ) 7, 8	( ) 3, 7
C ha in de iva b les tra ng e re ce	( 1, 3 )	2, 5
C ha in de b les tra ng e p ay a	7, 7	( ) 2 6, 8
C ha in he ing d l ia b i l i ies t t ts t ng e o r o p er a as se an	( ) 9, 5	( ) 1 1, 4
No f isc l p t t n- rec ur re n a ay m en	( 1 2, 0 )	0, 0
Inc i d tax om e es p a	( 1 1 ) 7,	( 6, 4 )
( ) Ne h in f low fro ing iv i ies A t c t t t as m op er a ac	( ) 1 0, 0	( ) 2, 9	7, 2	( ) 7 1, 5 %
Inv in lan d e ip tm ts ty, t a t es en p ro p er p n q m en u	( ) 2 4, 9	( ) 4, 5
D isp ls f p lan d e ip ty, t a t os a o ro p er p n q u m en	0, 0	0, 0
Inv in in i b le tm ts ta ts es en ng as se	( 4, 1 )	( 6 ) 7,
D isp ls f in i b le tan ts os a o g as se	0, 0	0, 0
D iv i de ds ive d fro ia tes n re ce m as so c	0, 0	0, 0
D iv i de ds ive d fro he i ies t t t n re ce m o r e n	0, 1	0, 1
D iv i de ds ive d fro j in t v tu n re ce m o en res	0, 7	0, 0
M ino i In ty te t r re s	0, 0	( ) 0, 0
Inv in bs i d iar ies ia d o he i ies tm ts tes t t t es en su as so c a n r e n ,	( 1 9, 0 )	( 0, 3 )
D isp l o f s bs i d iar ies ia d o he i ies tes t t t os a u as so c a n r e n ,	0, 0	0, 0
Ne h in f low ( f low ) fro inv ing iv i ies ( B ) t c t t t t as ou m es ac	( 4 7, 3 )	( 1 2, 4 )	3 4, 9	( ) 7 3, 8 %
Pr ds fro bo ing oc ee m ne rro s w w	9 7, 9	0, 0
Re f bo ing t o p ay m en rro w s	( ) 9, 2	( ) 1 0, 9
Ne inc ( de ) f c f ina ia l a d l ia b i l i ies t t ts t rea se cre as e o ur re n nc ss e an	( 4 3, 9 )	2 0 7,
D iv i de ds i d n p a	0, 0	( ) 1 3, 0
f n f Pa ina ia l e ts t m en o e nc xp en se s y	( ) 3, 2	( ) 1, 5
( ) ( C ) Ne h in f low f low fro f ina ing iv i ies t c t t t as ou m nc ac	4 1, 5	1, 6	( ) 3 9, 9	( ) 9 6, 1 %
Ne inc ( de ) in h a d c h e iva len ( D ) ( A ) ( B ) ( C ) t ts re as e cr ea se ca s n as q u + + =	( 1 5, 8 )	( 1 3, 6 )	2, 2	( 1 3, 9 ) %

€ m	J 2 0 1 6 u n	% o n R e v e n u e s	J 2 0 1 7 u n	% o n R e v e n u e s
I i t n e n o r e s v	6 8, 0	2 7, 2 %	7 5, 7	2 8, 4 %
T d i b l r a e r e c e a e s v	8 8, 6	3 5, 4 %	8 9, 6	3 3, 6 %
T d b l r a e p a y a e s	( 1 0 0, 8 )	( 4 0, 3 % )	( 9 9, 4 )	( 3 3 % ) 7,
T d W k i C i l t r a e o r n g a p a	5 5, 9	2 2, 4 %	6 5, 9	2 4, 7 %
O / ( ) h l i b i l i i t t t t e r c u r r e n a s s e s a e s	( ) 2 6, 8	( ) 1 0, 7 %	( ) 4 3 5,	( ) 1 7, 0 %
C l i b i l i i t t t r r e n a a e s u x	( ) 4, 4	( 1, % ) 7	( ) 4, 6	( 1, % ) 7
P i i r o s o n s v	( ) 1 6, 4	( ) 6, 5 %	( ) 1 2, 7	( ) 4, 8 %
C N W k i i l t t e o r n g a p a	8, 4	3, 3 %	3, 3	1, 2 %
P l d i t t t r o p e r p a n a n e q p m e n y, u	1 4 1, 9	5 6, 8 %	1 4 1, 5	5 3, 1 %
I i b l t t n a n g e a s s e s	2 1, 5	8, 6 %	2 1 7,	1 0, 2 %
I i j i t t t t n e s m e n s n o n e n r e s v v u f E l b i b l i i t t m p o e e e n e o g a o n s y	2 2, 3 ( ) 3, 1	8, 9 % ( ) 1, 3 %	2 0, 5 ( ) 3, 2	7, 7 % ( ) 1, 2 %
O h d ( l i b i l i i ) t t t t e r n o n c u r r e n a s s e a n a e s	7, 8	3, 1 %	1 2, 9	4, 8 %
N F i d C i l t t e x e a p a	1 9 0, 3	7 6, 1 %	1 9 8, 9	7 4, 7 %
C i N I d l t t t e n v e s e a p a	1 9 8, 7	7 9, 5 %	2 0 2, 2	7 5, 9 %
S h h l d ' E i t a r e o e r s q u y	5 3, 5		9 2, 6
F i i l N D b t t n a n c a e e	1 4 5, 2	5 8, 1 %	1 0 9, 6	4 1, 1 %
S f i T l F d t o a o u r c e o u n n g	1 9 8, 7	7 9, 5 %	2 0 2, 2	7 5, 9 %