Technogym — Investor Presentation 2023

Mar 29, 2023

FY 2022 Financial Results

Cesena, March 29th 2023

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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.

William Marabini, 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

Global Wellness Economy

continuous growth support a strong recovery across sectors (+9.7% CAGR expected to 2025)

In 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 continued investing in Wellness programs to attract employees back to the office

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

Clubs recovered pre-COVID activity level with +32% Y/Y in visits in Jan-23

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.

Financial Results FY 2022

Revenue +18% with improving profitability

€ million

* Excluding buyback release impact: 18.5% (Like-For-Like with prev. years)

*

Revenue growth by 18% in 2022

€ million

Revenue Key comments

• Strong rebound in BtoB business with Health, Corporate & Performance and Hospitality & Residential segments well above 2019 level with a sound recovery path ahead for Club
• Most geographies recorded a double digit growth led by North America (+46,4% Y/Y)

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

Overall double-digit growth led by North America

BtoB continue in a sound growth path

Strong growth in Field Sales and Distributors

€ million

Statutory Profit & Loss FY 2022

€ million					Comments
(€m)	Dec 2021	Dec 2022	Delta	2022 vs 2021
Total revenue	611,4	721,49	110,1	18,0%
Cost of raw, ancillary and consumable materials and goods for resale	(209,4)	(248,1)	(38,7)	18,5%	mainly driven by the B2B growth
of which (cost) not recurrent	(0,0)	(0,0)	0,0
Service, Rentals and leases	(158,2)	(189,2)	(31,0)	19,6%	cost and logistic cost inflation
of which (cost) not recurrent	(0,5)	(0,7)	(0,2)
Personnel cost	(133,3)	(151,3)	(18,0)	13,5%
of which (cost) not recurrent	(1,4)	(1,4)	(0,0)		sales growth
Depreciations, amortisations and write-downs	(36,4)	(40,4)	(4,0)	10,8%
Provision for risk and charges	(3,5)	(6,2)	(2,7)	77%
Other operations cost	(6,9)	(5,3)	1,7	(23,9%)	boutiques
of which (cost) not recurrent	(0,2)	(0,4)	(0,2)
Share of result joint venture and impairment	15,4	1,8	(13,6)	h.v.
of which (cost) not recurrent	14,0	0,0	(14,0)
Net operating income	78,9	82,8	3,9	4,9%
Margin (%)	12,9%		11,5% (1,4%)
Financial income and (expenses) and from investments	0,8	0,6	(0,3)	(32,9%)
Profit (loss) before tax	79,7	83,3	3,6	4,5%
Taxes	(16,5)	(19,4)	(3,0)	18%	participation (14.0 m€)
Profit (loss)	63,3	63,9	0,6	1,0%
Margin (%)	10,3%		8,9% (1,5%)
Profit (loss) for the year of minority interests	(0,2)	(0,3)	(0,1)	43,9%
Profit (loss) attributable to owners of the parent	63,1	63,6	0,5	0,8%	17.5% in 2022
Adjusted EBITDA	107,0	131,9	24,9	23,3%
Margin (%)	17,5%	18,3%	0,8%
Profit (loss) adjusted	51,2	66,1	14,9	29,1%
Percentage (%)	8,4%	9,2%	0,8%

• Top line +18.0% (constant F/X +14.9%) mainly driven by the B2B growth
• Price increases and product mix offset input cost and logistic cost inflation
• After sales costs increase together with BtoB sales growth
• Rental costs growth driven by new offices and boutiques
• Increase in personnel costs related to continuous investments in new skills
• Amortization increase driven by continuing investments in Digital transformation
• JV result impacted last year by gains from participation (14.0 m€)
• EBITDA adjusted at 18.3%, improving from 17.5% in 2022

Trade Working Capital

€ million

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

Reduction vs June figure driven by higher sales in H2

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

Trade Payable: positive trend supported by a different seasonality in component and semi-finished products purchases

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

Capex at 4.8% on revenue: investing in Digital and IT

Comments

Tangibles Capex

• Tools and molds for new products
• Ugrades in production lines and manufacturing equipment
• Facilities expansion (i.e. new offices and showrooms)

Intangibles Capex

• Digital and contents development
• IT
• Development of digital platform for new products

Net Financial Position

€ million

Net Financial Position

Cash and cash equivalent and deposits
Bank debt

Cash, cash equivalent and deposit at 225m€

Bank debt at 12€ millions, decreasing by over 50€ millions compared to Dec.'21

Other financial debts:

• Leasing exposure at 54€ millions vs 45€ millionsas of Dec.'21
• IFRS 16 impact at 38€ millions vs 24€ millions of Dec.'21

Net Financial Position at 121.6 € millions

€ million

• * Payment rental IFRS16 -7,9 m€ ; Lease DLL -9.4 m€;

• Impact of converting liquidity in currency and others +8.7 m€

Balance Sheet December 2022

€ million

€m	Dec 2021	% LTM on Revenues	Dec 2022	% LTM on Revenues
Inventories	108 5 ,	17 8% ,	100 7 ,	14 0% ,
Trade receivables	104 2 ,	17 0% ,	110 8 ,	15 4% ,
Trade payables	(159 8) ,	(26 1%) ,	(173 6) ,	(24 1%) ,
Trade Working Capital	53 0 ,	8 7% ,	37 9 ,	5 3% ,
Other assets/(liabilities) current	(65 3) ,	(10 7%) ,	(61 4) ,	(8 5%) ,
Current liabilities tax	(6 0) ,	(1 0%) ,	(9 2) ,	(1 3%) ,
Provisions	(11 7) ,	(1 9%) ,	(14 2) ,	(2 0%) ,
Capital Net Working	(30 0) ,	(4 9%) ,	(46 8) ,	-6 5% ,
Property , plant and equipment	153 6	25 1%	164 1	22 7%
Intangible assets	, 50 7	, 8 3%	, 55 7	, 7 7%
Investments in joint ventures	, 4 4 ,	, 0 7% ,	, 4 1 ,	, 0 6% ,
benefit Employee obligations	(3 1) ,	(0 5%) ,	(2 6) ,	(0 4%) ,
Other (liabilities) and current asset non	39 1 ,	6 4% ,	49 6 ,	6 9% ,
Net Fixed Capital	244 8 ,	40 0% ,	270 9 ,	37 5% ,
Capital Net Invested	214 8 ,	35 1% ,	224 1 ,	31 1% ,
Shareholders' Equity	311 6 ,	51 0% ,	345 9 ,	47 9% ,
Net financial position adj for Trade due > 12m * pay	(96 8) ,	(15 8%) ,	(121 9) ,	(16 9%) ,
Source of Funding Total	214 8 ,	35 1% ,	224 1 ,	31 1% ,
NFP (Cash) (120 m€) excluding IFRS16		NFP (Cash) (159.4 m€) 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 on 4th March 2021