Technogym — Investor Presentation 2024

Mar 25, 2024

Financial Results FY 2023

► Investor Presentation - March 25th 2024

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. 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.

Nerio Alessandri (Founder & CEO)

"2023 Healthy Results confirm our longterm sustainable and profitable growth story, as we promised during our IPO"

Nerio Alessandri

TECHNOGYM | FY 2023 Results Highlights

EBITDA

EUR 152 m (new record)

18.8% on revenue

NET INCOME

EUR 78 m

9.7% on revenue

Strictly private & confidential 6

NET CASH POSITION

EUR 127 m

Cash conversion rate 63%

proposed dividend of € 52 million (70% payout)

Michele Bertacco Investor Relations Director

Wellness market growth drivers are EXPANDING with Health as prevention

Growing consumer interest for longevity & wellbeing

1

• From life-span to health-span
• Physical activity for good mental health and balanced lifestyle
• Renewed healthy nutrition focus

2

Ageing population emphasize prevention & health needs Governments aim to reduce healthcare costs

• Prevention
• More activities to secure healthy living
• Elderly people to increase spending on health products

3

• Reduction of increasing healthcare costs
• Increase quality of care and prevention

Focus on employee's wellness & HC cost reduction

4

• Increase workforce productivity & talent retention
• Reduce health expenses
• Provide attractive, but cost-efficient benefit plans

Health is wealth

Our potential market account for \$ 4.4 trillion: a great upside

WELLNESS ECONOMY: ~4.400 B\$ (Health, prevention, nutrition, weight loss…)

William Marabini Chief Financial Officer

All Key Performance Indicators UP

At costant F/X growth was even higher: +14%

€ millions

Strong growth in MEIA, Europe and LATAM

€ millions

Strong growth in BtoB

Strong growth in Field Sales and Retail

€ millions

Statutory Profit & Loss FY 2023

€ millions	Dec 2022		Dec 2023		Var.	Var. %
Total revenue	721.5	% on sales	808.1	% on sales	86.6	12.0%
Cost of raw, ancillary and consumable materials and for resale	(248.1)	(34.4%)	(269.8)	(33.4%)	(21.8)	8.8%
goods of (cost) which not recurrent	(0.0)		(0.0)		0.0
Service, Rentals and leases	(189.2)	(26.2%)	(213.6)	(26.4%)	(24.4)	12.9%
of which (cost) not recurrent	(0.7)		(1.6)		(0.9)
Personnel cost	(151.3)	(21.0%)	(167.7)	(20.7%)	(16.3)	10.8%
of (cost) which not recurrent	(1.4)		(1.8)		(0.3)
Depreciations, amortisations and write-downs	(40.4)	(5.6%)	(45.7)	(5.7%)	(5.3)	13.2%
of which (cost) not recurrent	(0.0)		(0.0)		(0.0)
Provision for risk and charges	(6.2)	(0.9%)	(8.5)	(1.1%)	(2.3)	36.5%
of which (cost) not recurrent	(0.0)		(3.4)		(3.4)
Other operations cost	(5.3)	(0.7%)	(9.8)	(1.2%)	(4.5)	85.6%
(cost) of which not recurrent	(0.4)		(1.5)		(1.2)
Share of result joint venture and impairment	1.8	0.2%	4.4	0.5%	2.6	h.v.
of which (cost) not recurrent	0.0		4.5		4.5
Net operating income	82.8	11.5%	97.4	12.1%	14.6	17.7%
(expenses) Financial income and and from investments	0.6	0.1%	3.0	0.4%	2.5	h.v.
(loss) Profit before tax	83.3	11.5%	100.4	12.4%	17.1	20.5%
Taxes	(19.4)	(2.7%)	(23.2)	(2.9%)	(3.8)	19.5%
of which (cost) not recurrent	0.0		(1.0)		(1.0)
(loss) Profit	63.9	8.9%	77.2	9.5%	13.3	20.8%
(loss) Profit for the year of minority interests	(0.3)	(0.0%)	(3.5)	(0.4%)	(3.2)	h.v.
Profit (loss) attributable to owners of the parent	63.6	8.8%	73.6	9.1%	10.1	15.8%
Adjusted EBIT	85.3	11.8%	101.2	12.5%	15.9	18.6%
Adjusted EBITDA	-2.5 131.9	18.3%	(0.4) 152.0	18.8%	20.1	15.2%
Profit (loss) adjusted	66.1	9.2%	78.4	9.7%	12.3	18.6%

▪ Comments

• Revenue grew +12.0% to € 808.1 m (+14.2% at constant F/X), mainly driven by BtoB volumes growth and a better product mix
• Product mix and Cost reduction on raw materials and components more than offsetting both DWI costs (due to inflation carryover) and F/X impact
• Rental costs growth driven by new offices and boutiques
• Personnel costs growth aimed at investing in new skills connected to our digital ecosystem
• Amortization increase driven by continuing investments in digital transformation
• JV result impacted by TG Emirates investment evaluation (€ 4.5 m)
• EBITDA adjusted at 18.8%, growing from 18.3% of 2022 and 17.5% of 2021

Trade working capital

€ millions

Comments

Inventories

• Increase is mainly driven by volumes' growth
• Higher Inventory Turnover by 0.4x vs Dec '22.

Trade receivables

▪ DSO improved by 2 days vs Dec '22 despite a customer remix towards BtoB.

Trade payables

▪ Decrease vs Dec. '22 due to the normalization of seasonal payment of purchases

Strictly private & confidential 19 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 4.4% on revenue: investing in Digital and IT

Comments

Tangibles Capex

• Tools and molds for new products
• Production lines and manufacturing equipment
• Facilities expansion (i.e. new offices and boutiques)

Intangibles Capex

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

Free cash flow

* Cash Conversion Rate calculated as FCF before Tax / EBITDA

Strictly private & confidential 21 **Cash Flow from operating activities calculated as EBITDA-JV result-other non moneray changes

Net financial position: a very positive result, showing how healthy is our growth

Bank debt

Othe financial debt

Positive Net Financial Position to € 127 m from € 122 m in 2022

• * Lease DLL -3,3 m€; impact of converting liquidity in currency -5,7 m€; payment rental IFRS16 and others +3,0 m€

Balance Sheet December 2023

€ millions

	Dec 2022	% on Sales	Dec 2023	% on Sales	Var %
Inventories	100 7	14 0%	103 6	12 8%	2 9%
Trade receivables	110 8	15 4%	119 8	14 8%	8 1%
Trade payables	(173 6)	(24 1%)	(155 4)	(19 2%)	(10 5%)
Trade Working Capital	37 9	3% 5	68 0	8 4%	79 2%
Other assets/(liabilities) current	(61 4)	(8 5%)	(78 0)	(9 7%)	27 1%
Current liabilities tax	(9 2)	(1 3%)	(9 2)	(1 1%)	0 2%
Provisions	(14 2)	(2 0%)	(19 5)	(2 4%)	36 9%
Net Working Capital	(46 8)	(6 5%)	(38 7)	(4 8%)	(17 3%)
Property , plant and equipment	164 1	22 7%	171 6	21 2%	4 5%
Intangible assets	55 7	7 7%	55 7	6 9%	0 0%
Goodwill	0 0	0 0%	1 0	0 1%	h .v.
Investments in joint ventures	4 1	0 6%	1 2	0 1%	(71 5%)
benefit Employee obligations	(2 6)	(0 4%)	(2 6)	(0 3%)	0 8%
Other (liabilities) and current asset non	49 6	6 9%	48 7	6 0%	(1 8%)
Capital Net Fixed	270 9	37 5%	275 5	34 1%	1 7%
Net Invested Capital	224 1	31 1%	236 8	29 3%	7% 5
Shareholders' Equity	345 9	47 9%	363 7	45 0%	5 1%
Net financial position adj for Trade due 12m * pay >	(121 9)	(16 9%)	(126 9)	(15 7%)	4 2%
Total Source of Funding	224 1	31 1%	236 8	29 3%	5 7%
NFP (Cash) (€159.3 m) excluding IFRS16		NFP (Cash) (€ 170.6 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

THANK YOU!