Technogym — Investor Presentation 2022

Aug 3, 2022

Technogym Financial Results H1 2022

Investor presentation

Cesena, August 3rd 2022

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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 statements 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.

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.

Technogym market update

Recovery ongoing across all the BtoB segments

Hotels activity improved driven by re-openings with daily average rates already above pre-COVID level

Wellness Real Estate / Residences proved to be in a better shape than general construction with a continuous interest from developers

Corporates are investing in Wellness programs to attract employees back to the office

Health & anti-aging are in a strong growth trajectory after COVID

Several existing Clubs are already at a pre-COVID activity level + new openings recorded in the Premium segment across geographies

Home demand in line with pre-pandemic trend

Demand for at-home training solutions is still high in a normalized market scenario across all the geographies where the company operates;

Gradual international expansion is still the key to penetrate new customers leveraging the Technogym unique Luxury & Prestige positioning.

Technogym to catch new opportunities by ……..

The new biocircuit for Health & Medical fitness

Technogym Ecosystem to catch new opportunities by ……

New MyWellness CRM Platform & Technogym App

Clubs Technogym App

Technogym App B2C2B

The A.I. based Technogym Smart Coach, guides end-users among Sessions, Routines and Signature programs customizing their wellness journey according to equipment availability

MyWellness 6.0 B2B2C

The latest version of the Technogym CRM platform now allows professional operators to customize end-users training experience via on-demand videos in a full hybrid approach

Technogym content to catch new opportunities by ……

Training experiences video on-demand library

After years supporting professional operators Technogym started populating the Technogym Live platform with own filmed Precision Training content: any training goal can now be achieved quicker and easier

Proprietary content couples with third party ones already available on Technogym Live

Technogym products to catch new opportunities by ……

New solutions for cyclists & home fitness

Clubs New home products

Technogym is enlarging its product and solution portfolio to serve different end-users needs

In Sport Performance with high intensity training format

In Fitness with Cardio & Strength training

The widest ecosystem of SW, Content, Service & Equipment

Financial Results H1 2022

H1 2022 results at a glance

Top line grew by c. 18% in H1-2022

€ million

Revenue

Key comments

• Strong rebound in BtoB led by a double-digit growth in all the subsegments, from Health to Hotels, from Residential to Clubs
• North America is steering the growth coupled with remarkable growth in Europe and APAC, despite China's lockdowns

Excluding FX impact, growth would have been slightly lower at +14,9%. USD provided the strongest contribution in the first half

Strong revenue growth in North America

€ million

BtoB continue in a sound growth path

Fieldsales and Distributors benefited from BtoB

Statutory Profit & Loss H1 2022

(€m )	June 2021		June 2022			Delta 2022 vs 2021
Total revenue		276,3 % on sales		325,22 % on sales	49,0	17,7%
Cost of raw, ancillary and consumable materials and goods for resale	(91,0)	(32,9%)	(108,2)	(33,3%)	(17,2)	18,9%
of which (cost) not recurrent	(0,0)		(0,0)		0,0
Service, Rentals and leases	(69,9)	(25,3%)	(90,5)	(27,8%)	(20,6)	29,5%
of which (cost) not recurrent	(0,2)		(0,1)		0,1
Personnel cost	(64,8)	(23,5%)	(72,9)	(22,4%)	(8,1)	12,5%
of which (cost) not recurrent	(0,5)		(0,8)		(0,3)
Depreciations, amortisations and write-downs	(17,8)	(6,5%)	(18,8)	(5,8%)	(1,0)	5,4%
Provision for risk and charges	(2,4)	(0,9%)	(3,3)	(1,0%)	(0,9)	39%
of which (cost) not recurrent	0,0		(0,6)		(0,6)
Other operations cost	(4,1)	(1,5%)	(3,1)	(0,9%)	1,0	(24,4%)
of which (cost) not recurrent	(0,1)		(0,0)		0,1
Share of result joint venture and impairment	11,9	0,0	0,4	0,1%	(11,5)	h.v.
of which (cost) not recurrent	11,1		0,0		(11,1)
Net operating income	38,1	13,8%	28,8	8,8%	(9,3)	(24,4)%
Margin (%)	13,8%		8,8%		(4,9%)
Financial income and (expenses) and from investments	(0,1)	(0,0%)	2,3	0,7%	2,3	h.v.
Profit (loss) before tax	38,0	13,8%	31,0	9,5%	(7,0)	(18,4)%
Taxes	(7,5)	(2,7%)	(7,5)	(2,3%)	0,0	0 %
Profit (loss)	30,5	11,0%	23,5	7,2%	(7,0)	(22,8)%
Margin (%)	11,0%		7,2%		(3,8%)
Profit (loss) for the year of minority interests	(0,1)	(0,0%)	(0,1)	(0,0%)	0,1	(44,5%)
Profit (loss) attributable to owners of the parent	30,4		23,5		(6,9)	(22,7%)
Adjusted EBITDA	48,0		51,8		3,9	8,0%
Margin (%)	17,4%		15,9%		(1,4%)
Profit (loss) adjusted	20,0		25,0		5,0	24,7%
Percentage (%)	7,3%		7,7%		0,4%

Comments

Revenue

▪ Increase in Revenue +17.7% (constant F/X +14.9%) driven by the strong performance of the BtoB

Costs

• The increase in raw material price and inbound logistic costs has been partially offset by better product mix, initial list price adjustments and cost reduction activities
• General activity pick-up and top line growth led to after sales costs increase
• Additional investments in competences via new hires in sales force and new digital skills

Trade Working Capital

€ million

Comments

Inventories: growth driven by inflation components and raw material to avoid supply chain disruption and finished products to allow fast delivery time to our customers

Trade receivables: growth driven by higher sales in the semester and segment mix with more BtoB

Trade Payable: trend driven by the payment of some trade payables due in the first months of 2022

Capex: increasing investments in Digital and IT

Comments

Tangible Capex

• Tools and molds for new products
• Production lines and manufacturing equipment

Intangible Capex

• Digital and content development
• IT activities
• New products development

Net Financial Position

€ million

Net Financial Position

Comments

Cash, cash equivalent and deposit stand at € 154m as of June 2022

Bank debt decreased by € 46m compared to June 2021

Other financial debts:

• Leasing exposure at € 48.8m vs € 32.7m of June 2021
• IFRS 16 impact on financial debt is € 28.9m

Net Financial Position path in H1

€ million

• Impact of converting liquidity in currency +2.5 m€; Financial and others +1.0m€

Balance Sheet as of June 2022 (vs. Dec-21 and June-21)

€ m	June	2021	% LTM on Revenues	Dec 2021	% LTM on Revenues	June 2022	% LTM on Revenues
Inventories		102 3 ,	18 2% ,	108 5 ,	17 8% ,	111 1 ,	16 8% ,
Trade receivables		83 3 ,	14 8% ,	104 2 ,	17 0% ,	114 1 ,	17 3% ,
Trade payables		(130 4) ,	(23 2%) ,	(159 8) ,	(26 1%) ,	(133 6) ,	(20 2%) ,
Capital Trade Working		55 2 ,	9 8% ,	53 0 ,	8 7% ,	91 5 ,	13 9% ,
Other assets/(liabilities) current		(58 6) ,	(10 4%) ,	(65 3) ,	(10 7%) ,	(62 3) ,	(9 4%) ,
Current liabilities tax		(8 2) ,	(1 5%) ,	(6 0) ,	(1 0%) ,	(11 1) ,	(1 7%) ,
Provisions		(10 3) ,	(1 8%) ,	(11 7) ,	(1 9%) ,	(10 7) ,	(1 6%) ,
Net Working Capital		(21 9) ,	(3 9%) ,	(30 0) ,	(4 9%) ,	4 7 ,	1 1% ,
Property , plant and equipment		155 2 ,	27 5% ,	153 6 ,	25 1% ,	157 5 ,	48 4% ,
Intangible assets		48 5 ,	8 6% ,	50 7 ,	8 3% ,	52 1 ,	16 0% ,
Investments in joint ventures		3 9 ,	0 7% ,	4 4 ,	0 7% ,	5 2 ,	1 6% ,
Employee benefit obligations		(3 4) ,	(0 6%) ,	(3 1) ,	(0 5%) ,	(3 1) ,	(0 9%) ,
Other (liabilities) and current asset non		24 3 ,	4 3% ,	39 1 ,	6 4% ,	40 1 ,	12 3% ,
Net Fixed Capital		228 5 ,	40 6% ,	244 8 ,	40 0% ,	251 8 ,	38 1% ,
Capital Net Invested		206 6 ,	36 7% ,	214 8 ,	35 1% ,	259 3 ,	39 3% ,
Shareholders' Equity		277 0 ,		311 6 ,		306 5 ,
Net financial position adj for Trade due pay	> 12m *	(70 4) ,	(12 5%) ,	(96 8) ,	(15 8%) ,	(47 2) ,	(7 1%) ,
Source Total of Funding		206 6 ,	36 7% ,	214 8 ,	35 1% ,	259 3 ,	39 3% ,
	NFP (Cash) = - 94.7m€ excluding IFRS16		NFP (Cash) = 120 m€ excluding IFRS16	-	NFP (Cash) = 75,4m€ excluding IFRS16	-

'*Balance sheet net financial position adj for Trade pay due > 12m excludes all the trade payables that will be due after 12 months from the date of reporting, according to ESMA guidelines of 4 march 2021