Technogym — Investor Presentation 2021

Mar 24, 2021

Technogym Financial Results 2020

Investor presentation

Cesena, March 24th 2021

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. You are 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-looking statementsto 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.

Massimiliano Moi, 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.

Some figures related to previous periods were reclassified for a better representation of balance sheet and the profit and loss statements.

Strategic overview

Wellness: a top-priority even before COVID 19

End-User wellness needs

Technogym always focused on end-user needs

Source: Source: SRI, Spas and Global Wellness Market

COVID Impact on people's life

Source: Jefferies survey

Covid19: impact & opportunities for Technogym

► In 2020 Covid19 led to a significant increase in health related risks:

• 60% of people is more stressed
• 51% experiences anxiety
• 44% gained weight
• 40% experiences lack of sleep
• 37% has depressions issue

These factors paved the way to a significantly higher risk of obesity, diabete, mental diseases and tumors

► In 2021 «wellness & prevention» demand becomes a top priority:

• 77% will look for healthier life style
• 80% show interest in exercising (only 25% had previously a gym membership)
• 81% consider exercising as a key component of their wellness goals
• 65% want to come back to gym training once possible
• Vast majority of the people will go on with an hybrid & on-the-go training, coupling at-home and at-the-gym locations
• Broad diffusion of digital training solutions to represent a material induction for phisical exercise: all these beginners are expected to continue their training at home or in gyms
• Increasing demand for respiratory cardio and muscolar rehab folowing COVID-19 supported a strong growth in the health & rehab centers market
• During the pandemic the training directed to vertical disciplines (e.g. cycling, running or rowing) increased significantly

COVID 19 largely increased the Technogym SAM

Source: Jefferies survey

~ € 1.0bn Group revenues in 2024

~ € 300mln BtoC revenues in 2022 (anticipated from previous 2023)

BtoC contribution to total revenues to increase over the next years

Confirmed long term focus on sustainable & profitable growth

2020 financial results

2020 results at a glance: good profitability level in a tough year

* 2020A Net Profit includes not recurring costs

Strong growth in Home partially offset B2B performance

• limited the performance from COVID affected sectors in Commercial
• Italy (+1.9%) outpaced the trend in 2020 driven by Home exposure. APAC showed recovery signs in Q4 (c. -13% vs. -35% in Q3)
• Inside Sales and Retail grew double digit
• Digital fitness solutions posted a high growth in 2020, confirming in Q4 the sound performance of 9 months

Excluding FX impact, drop would have been -22,6%. Major impacts:

• USD, BRL, RUB

+71% in Home, representing 30% of total revenues

Top Home performance in Italy & MEIA supported FY20 revenues trend

Inside Sales (including e-commerce) and Retail strong performance

Good profitability level achieved despite the pandemic

€m

Profit & Loss statement Key comments

(€m)	Dec 2019	Dec 2020
Total revenue	668,9	% on sales	509,7	% on sales
Cost of raw, ancillary and consumable materials and goods for resale	(219,3)	(32,8%)	(166,4)	(32,6%)
of which (cost) not recurrent	(0,1)		(0,7)
Service, Rentals and leases	(163,6)	(24,5%)	(128,5)	(25,2%)
of which (cost) not recurrent	(1,3)		(1,2)
Personnel cost	(136,2)	(20,4%)	(112,6)	(22,1%)
of which (cost) not recurrent	(2,4)		(1,0)
Depreciations, amortisations and write-downs	(31,1)	(4,7%)	(35,1)	(6,9%)
Provision for risk and charges	(4,1)	(0,6%)	(3,3)	(0,6%)
of which (cost) not recurrent	0,0		(0,5)
Other operations cost	(7,3)	(1,1%)	(10,3)	(2,0%)
of which (cost) not recurrent	(0,4)		(1,1)
Share of result joint venture and impairment	1,0	0,1%	0,9	0,2%
Net operating income	108,4	16,2%	54,4	10,7%
Margin (%)	16,2%		10,7%
Financial income and (expenses) and from investments	(1,9)	(0,3%)	(6,3)	(1,2%)
of which (cost) not recurrent	0,0		(2,6)
Profit (loss) before tax	106,4	15,9%	48,0	9,4%
Taxes	(22,7)	(3,4%)	(11,6)	(2,3%)
of which (cost) not recurrent	2,2		(0,3)
Profit (loss)	83,7	12,5%	36,4	7,2%
Margin (%)	12,5%		7,2%
Profit (loss) for the year of minority interests	(0,5)	(0,1%)	(0,4)	(0,1%)
Profit (loss) attributable to owners of the parent	83,2		36,0
Adjusted EBITDA	147,8		96,9
Margin (%)	22,1%		19,0%
Profit (loss) adjusted	85,2		43,4
Percentage (%)	12,7%		8,5%

• Purchase costs substantially stable at 32,6% on sales
• Operating cost reduction driven by efficiencies achieved in 2020
• Labor costs reduction driven by unemployment programs in different countries
• D&A at 6,9% on sales, driven by last year investments in IT projects and digital transformation
• Increase in financial costs due to impairment and loss on forex rate

Trade Working Capital: positive performance in both DSO and DPO

• Inventories: growth mainly driven by product mix shift
• Trade receivables: DSO improved thanks to actions to further reduce credits and growth in Home consumer segment
• Trade payable: DPO improved from 112 to 130

IT: Calculated as the ratio of Turnover for products, spare parts, hardware and software / Inventory w/o deval. DSO: Calculated as Account receivables net of VAT (~ 11%) / Total turnover

DPO: Calculated as Trade payables net of VAT (~ 7%) / (Total costs for raw materials, semi-finished products and services)

Capex stood at 23 m€ (4.5% on revenues) driven by digital & content focus

* CAPEX: excluding financial investments (investment in JV.) and IFRS16 impact

Free Cash Flow pre tax at 95.4m € in 2020, with a 103% conversion rate.

Other financial debt

• Leasing exposure stands at 31,4m € on Dec 2020 increasing vs Y-1 (26,1m €).
• IFRS 16 impact on financial debt is 23,7m € on Dec 2020

Without considering IFRS16 impact, NFP is 83,2m€ (net cash) vs 25,3€ (net cash) as at Dec 2019

Bank credit lines for 268 m€, utilized for 33%, available for 180 m€

Net Financial Position from 3,7 m€ to 59,5