Sats : Q3 Report 2023

The Group, through our brands and concepts SATS, ELIXIA, Fresh Fitness, SATS Yoga, and SATS Online, is the leading provider of fitness and training services in the Nordics with 275 clubs, more than 9 700 employees, and 731 000 members.

Everyone is welcome at SATS, and our members have full flexibility to tailor their membership package to address their individual needs. We offer cutting-edge studio facilities for individual training, the broadest selection of group training with superior programming, and highly qualified personal trainers for specialized training and individual coaching. We also have a strong focus on supporting our members through online training and digital tools for when they are not able to physically visit our club facilities. We are also constantly working with trend research and innovation to be the industry's best and most forward-looking fitness chain.

Words from the CEO	3
Highlights	4
Board of Directors' Report	5
Consolidated Income Statement	11
Consolidated Statement of Comprehensive Income	12
Consolidated Balance Sheet	13
Consolidated Statement of Changes in Equity	14
Consolidated Statement of Cash Flows	15
Notes to the Consolidated Interim Financial Statements	16
Appendix	28
Definitions	30

SATS ASA © 2023

"We have delivered strong financial results three quarters in a row, but these are not extraordinary results, this is the new normal and illustrates the financial strength of SATS."

A new quarter is closed, and we rounded off with a robust member base of 731 000 members, up 3% from last year. The members worked out 13% more on average. In sum, this led to 17% more workouts at our clubs than in the third quarter last year. Our members are making a substantial contribution to reducing physical inactivity and improving public health. In the last 12 months, our members have contributed with around 16 000 quality-adjusted life years (QALYs) - in other words, years of good health - which translates into around NOK 22.6 billion in socio-economic welfare gain.

As the quarters fly by, it is interesting to zoom out and look at where we are heading. One year ago, we hosted a Capital Markets Day (CMD) and provided a comprehensive presentation of the company's history, current situation, and outlook. When revisiting the key messages from the CMD presentation, the main takeaways are that we have followed the road outlined closely and achieved good operational and financial results. SATS' long-term strategy remained unchanged but given the macro-economic environment and the challenges SATS was facing, we chose to go back to basic and focus on the core business; increase the utilization of the current club portfolio by growing the members base, increase the revenue per member, and maintain a high cost discipline.

Further on, we wanted to pause additional club expansion, prioritizing to reduce the net debt. As a result of the disciplined approach to the focus areas as outlined in the CMD, we have managed to increase the member base per square meter compared to pre- pandemic levels, lift the price level in line with inflation, hold the cost base stable, and reduce the financial leverage significantly. There is still a lot of potential to improve further, but the steps taken in the past year have been important. We will still focus on the core business and on delivering outstanding training experiences, but we are now in better a position to continue investing in our club portfolio and make the product even more attractive for our members.

It is great to see that our members are happy with the SATS product. We follow the member satisfaction closely through a Net Promoter Score (NPS) on a range from -100 to 100, where scores above 30 are considered to be high. In the third quarter, the average NPS was as high as 58. This is thanks to all our hard-working employees, helping our members to succeed with their training. Thanks to every single one of you. You are extraordinary!

Sondre Gravir

CEO

	Clubs		Members		Revenues		EBITDA1
				'000		NOK million	NOK million / margin
	0%	3%	14%	673%
	275	275	708	731	967	1 106
									14%
											155
									2%
									20
	Q3	Q3		Q3	Q3		Q3	Q3		Q3	Q3
	2022	2023	2022	2023	2022	2023	2022	2023

1) EBITDA before impact of IFRS 16. For further information regarding definitions and Alternative Performance Measures, please see Appendix.

SATS Q3 2023

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• Successful measures implemented the past year focused on the core business, fully in line with the road outlined on the Capital Markets Day in October last year
• The total number of workouts at SATS' clubs increased by 17% in the quarter, driven by both member growth and higher activity per member
• The member base counted 731 000 members by the end of the quarter, representing a 2% increase in members per sqm from the pre-pandemic Q3 2019 and thus a higher utilization of the asset base
• The average revenue per member (ARPM) YTD increased by 7% (curr. adj.) from last year, and the average price for new memberships increased by 18% (curr.adj.) in the quarter, which in combination with the member growth, prove a continued willingness to pay for gym memberships

• Total revenues summed up to NOK 3 507 million YTD, up 12% (curr. adj.) from YTD 2022
• Maintained a strong cost discipline, resulting in a 1% (curr.adj.) increase in total operating costs YTD, and a conservative capex spend
• EBITDA before IFRS 16 reached NOK 486 million YTD, significantly lifted from NOK 133 million in the corresponding period last year
• Deleveraging at a high pace, reporting a leverage ratio of 3.1x net debt to EBITDA before IFRS 16, compared to 10.5x in Q3 2022

Key Financial Figures and Alternative Performance Measures (APM)	1
	Q3	Q3	YTD	YTD
	2023	2022	2023	2022
Amounts in NOK million (unless otherwise stated)
Membership revenue	923	803	2 866	2 384
Other revenues	183	165	641	617
Total revenues	1 106	967	3 507	3 001
EBITDA	445	281	1 360	911
Margin (%)	40%	29%	39%	30%
Operating profit	156	5	483	86
Profit/loss for the period	31	-52	189	-96
Earnings per share (NOK)	0.15	-0.26	0.93	-0.49
Total overhead costs	-135	-137	-393	-408
EBITDA before impact of IFRS 16	155	20	486	133
Margin (%)	14%	2%	14%	4%
Maintenance Capex	22	62	57	116
Total Capex	34	121	86	228
Net debt	1 555	1 662	1 555	1 662
Operating cash flow	139	-15	309	-171
Clubs	275	275	275	275
Members ('000)	731	708	731	708
ARPM (NOK/month)	510	468	537	484
1) As defined in Appendix under Alternative Performance Measures

SATS Q3 2023

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ANALYSIS OF THE Q3 2023 FINANCIAL STATEMENTS

All financial statements show the period

1 July 2023 to 30 September 2023, compared to the accounts for the period 1 July 2022 to 30 September 2022.

Statement of comprehensive income Total revenues increased by 14% (11% currency adjusted) to NOK 1 106 million in Q3 2023, compared to NOK 967 million in Q3 2022, mainly due to higher membership revenues. Membership revenues increased in all countries in Q3 2023 compared to Q3 2022. After a 2%-membergrowth during the quarter, the total member base ended 3% above last year. ARPM increased by 9% (6% currency adjusted), as a result of price increases in Q4 2022 and Q1 2023 and lower campaign activity.

Total operating expenses decreased by 1% (-5% currency adjusted) to NOK 950 million in Q3 2023, while operating expenses excluding depreciation and amortization decreased by 4% (-8% currency adjusted) to NOK 661 million. The decrease in operating expenses from last year is mainly due to lower electricity prices and a more restrictive marketing spend, outweighing the increase in rent and general inflation.

The operating profit increased from NOK 5 million to NOK 156 million in the quarter. Operating profit increased in all countries compared to Q3 2022.

Net financial expense in Q3 2023 was NOK 107 million, an increase of NOK 48 million compared to Q3 2022. The increase was mainly driven by increased interest rates on bank loans and IFRS 16 interest rates, as well as increased unrealized currency effects on internal loans. Income tax expense in Q3 2023 was NOK 18 million.

Profit before tax was NOK 49 million in Q3 2023, compared to a loss of NOK 54 million in Q3 2022. Profit for the period was NOK 31 million in Q3 2023, compared to a loss of NOK 52 million in Q3 2022. The total comprehensive income was NOK 45 million, compared to a loss of NOK 58 million in Q3 2022.

Statement of financial position

Consolidated assets increased by NOK 578 million to NOK 9 009 million in Q3 2023, compared to Q3 2022. A significant driver of the increased consolidated assets was the increase in rights-of-use assets and cash and cash equivalents. Right-of-use assets and intangible assets were the most significant components of consolidated assets, amounting to NOK 4 423 million and

NOK 2 621 million, respectively, on September 30, 2023. Non-current assets increased by NOK 262 million, while current assets increased by NOK 317 million. The increase in non-current assets was mainly driven by the increase in rights-of-use and other non-current receivables. The increase in current assets was primarily driven by the increase in cash and cash equivalents.

Total liabilities increased from NOK 7 447 million as of September 30, 2022 to

NOK 7 987 million as of September 30, 2023, primarily due to increased borrowings and lease liability.

As of September 30, 2023, consolidated equity amounted to NOK 1 022 million, representing an equity ratio of 11.3%, compared to NOK 984 million and 11.7% in Q3 2022.

Statement of cash flows

In Q3 2023, consolidated cash and cash equivalents increased net by NOK 79 million, compared to a decrease of NOK 106 million in Q3 2022.

As of the balance sheet date, the Group had cash and cash equivalents of NOK 442 million, compared to NOK 125 million as of September 2022. In addition, the Group had NOK 380 million available in undrawn amount on the rolling credit facility.

Net cash flow from the Group's operations was NOK 439 million in Q3 2023, compared to NOK 303 million in Q3 2022. The increased cash flow from operations of NOK 136 million was mainly due to increased profit before tax. The net working capital has high seasonal fluctuations, typically being lower in Nov-May and higher in Jun-Oct. In the quarter, the net working capital effect was positive by NOK 7 million, compared to 27 million in Q3 2022, mainly driven by change in account receivables and trade payables.

Net cash outflow from investing activities amounted to NOK 34 million in Q3 2023, compared to an outflow of NOK 122 million in Q2 2023.

Net cash outflow from financing was NOK 327 million in Q3 2023, compared to a cash outflow of NOK 287 million in Q3 2022.

Segment development

The following sections of this report review each operating segment. Unless otherwise stated, comments regarding development reflect a comparison between Q3 2023 and Q3 2022.

SATS Q3 2023

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Norway is the largest operating segment in the Group, with 46% of the consolidated total revenues YTD 2023. SATS Norway had 326 000 members at the end of Q3 2023. SATS is a well- known brand in Norway and the largest operator of fitness clubs.

SATS Norway, including both the SATS and the Fresh Fitness brand, counted

119 clubs by the end of Q3 2023. The member base has grown by 1% since Q3 2022, despite a 2% reduction in the number of clubs, after closing selected clubs as a part of the club portfolio optimization.

The average revenue per member (ARPM) was lifted by 7% to NOK 531, as a result of successful price adjustments during the winter.

The result of the positive volume and price development was an 11% increase in total revenues to NOK 514 million.

Country EBITDA increased by 104% to NOK 146 million, resulting in a quarterly Country EBITDA margin of 28%, 13 p.p. higher than in Q3 2022.

Key Financial figures and Alternative Performance Measures (APM)
	Q3	Q3	YTD	YTD
	2023	2022	2023	2022
Amounts in NOK million (unless otherwise stated)
Membership revenue	429	384	1 317	1 135
Other revenues	85	80	293	292
Total revenues	514	464	1 610	1 428
EBITDA	222	138	662	461
Margin (%)	43%	30%	41%	32%
Operating profit	117	31	346	145
Profit/loss for the period	74	5	215	54
Country EBITDA before impact of IFRS 16	146	72	431	267
Margin (%)	28%	15%	27%	19%
EBITDA before impact of IFRS 16	103	24	307	124
Margin (%)	20%	5%	19%	9%
Clubs	119	122	119	122
Members ('000)	326	322	326	322
ARPM (NOK/month)	531	496	549	508

2

Revenues	Country EBITDA1)
NOK million	NOK million / margin
11%	104%
464	514
			28%
						4
		15%			1
				146		11
					66
		72
				10
						3
Q3	Q3		Q3	Q3	11
202 2	202 3
202 2	202 3		11

1. Country EBITDA before impact of IFRS 16

SATS Q3 2023

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Sweden is the second-largest segment in the Group, with 33% of the total consolidated revenues YTD 2023. SATS Sweden had 250 000 members at the end of Q3 2023. SATS has maintained a strong position in Sweden over many years.

The member base has increased by 5% since the comparable period last year, despite only a 2% increase in the club count, up to 95 clubs across Sweden.

The average revenue per member (ARPM) was lifted through several price initiatives during the winter, leading to an 8% increase (5% curr. adj.) to NOK 492.

Total revenues increased by 14% (12% curr. adj.) to NOK 365 million in the quarter, driven equally by membership revenue and other revenue.

Country EBITDA increased by 81% (77% curr. adj.) to NOK 83 million, resulting in a quarterly Country EBITDA margin of 23%, 8 p.p. up from Q3 2022.

Key Financial Figures and Alternative Performance Measures (APM)
	Q3	Q3	YTD	YTD
	2023	2022	2023	2022
Amounts in NOK million (unless otherwise stated)
Membership revenue	303	264	944	806
Other revenues	63	55	230	211
Total revenues	365	319	1 175	1 016
EBITDA	149	96	454	299
Margin (%)	41%	30%	39%	29%
Operating profit	49	6	149	33
Profit/loss for the period	23	-6	72	-10
Country EBITDA before impact of IFRS 16	83	46	247	155
Margin (%)	23%	14%	21%	15%
EBITDA before impact of IFRS 16	47	6	144	35
Margin (%)	13%	2%	12%	3%
Clubs	95	93	95	93
Members ('000)	250	238	250	238
ARPM (NOK/month)	492	457	529	484

Revenues	Country EBITDA1)
NOK million	NOK million / margin
14%	81%
	365			23%
319
		14%
							73
		46	83		12	2
Q3	Q3		Q3	Q3
202 2	202 3	202 2	202 3
							8

1. Country EBITDA before impact of IFRS 16

SATS Q3 2023

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In Finland, the business is operated under the brand ELIXIA, and the Finnish operations constituted 10% of consolidated total revenues YTD 2023. At the end of Q3 2023, ELIXIA Finland had 71 000 members. The Finnish fitness market is highly fragmented, and ELIXIA is the market leader.

The number of clubs has been fairly stable in Finland, up 3% year-on-year, with the main focus of club optimization being on relocations. The member base growth has outperformed the club growth in Finland, as in the other markets, up 5% since Q3 2022.

Adding on to the volume growth, the average revenue per member (ARPM) is up 17% (3% curr. adj.) to NOK 515.

As a result of the abovementioned increases, total revenues increased by 26% (11% curr. adj.) to NOK 109 million. The increase was mainly driven by membership revenues.

Country EBITDA increased by NOK 17 million to NOK 16 million in the quarter. Quarterly Country EBITDA margin was consequently 14%, up 16 p.p. from Q3 2022.

Revenues	Country EBITDA1)
NOK million	NOK million / margin
26%		n.a.
				14%
	109			16
86
		-1
		-2%
			Q3	Q3
Q3	Q3
202 2	202 3	202 2	202 3

1. Country EBITDA before impact of IFRS 16

Key Financial Figures and Alternative Performance Measures (APM)
	Q3	Q3	YTD	YTD
	2023	2022	2023	2022
Amounts in NOK million (unless otherwise stated)
Membership revenue	93	72	288	197
Other revenues	15	14	57	63
Total revenues	109	86	345	260
EBITDA	43	20	129	63
Margin (%)	40%	23%	37%	24%
Operating profit	11	-7	32	-20
Profit/loss for the period	5	-12	14	-36
Country EBITDA before impact of IFRS 16	16	-1	46	-2
Margin (%)	14%	-2%	13%	-1%
EBITDA before impact of IFRS 16	10	-7	30	-17
Margin (%)	9%	-8%	9%	-7%
Clubs	32	31	32	31
Members ('000)	71	67	71	67
ARPM (NOK/month)	515	439	544	439

3

5

24

SATS Q3 2023

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The Danish operation constituted 11% of consolidated total revenues YTD 2023. SATS Denmark, with 84 000 members at the end of the quarter, is one of the largest fitness operators in the Greater Copenhagen area, and the number two operator in the Danish fitness club market.

SATS Denmark ended the second quarter with 29 clubs, unchanged from last year. However, the member base grew by 4% in the same period.

On top of the member base increase, the revenue per member (ARPM) increased by 15% (1% curr. adj.). As a result, total revenues increased by 20% (6% curr. adj.) to NOK 117 million.

Country EBITDA increased by 38% (45% curr. adj.) to a negative NOK 8 million, resulting in a negative quarterly Country EBITDA margin of 7%, 7 p.p. higher than in Q3 2022.

Key Financial Figures and Alternative Performance Measures (APM)
	Q3	Q3	YTD	YTD
	2023	2022	2023	2022
Amounts in NOK million (unless otherwise stated)
Membership revenue	98	82	317	246
Other revenues	18	15	59	50
Total revenues	117	97	376	295
EBITDA	21	11	96	41
Margin (%)	18%	11%	25%	14%
Operating profit	-19	-24	-26	-65
Profit/loss for the period	-38	-35	-77	-98
Country EBITDA before impact of IFRS 16	-8	-13	7	-34
Margin (%)	-7%	-14%	2%	-12%
EBITDA before impact of IFRS 16	-15	-20	-13	-54
Margin (%)	-13%	-20%	-3%	-18%
Clubs	29	29	29	29
Members ('000)	84	81	84	81
ARPM (NOK/month)	470	410	504	426

Revenues	Country EBITDA1)
NOK million	NOK million / margin
20%	38%
97				-7%
		-13	-8
		-14%
			Q3	Q3
Q3	Q3
202 2	202 3
2022	2023

29

1. Country EBITDA before impact of IFRS 16.

SATS Q3 2023

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BUSINESS AND INDUSTRY OUTLOOK The health and wellness sector is growing due to society's increased focus on health and well-being.Strong global trends, such as political initiatives for health and digitalization, are fueling health and fitness awareness.

There are no signs of people decreasing their spending on fitness memberships due to lower purchasing power. With a combination of the underlying health and fitness wave and SATS' strong market, the member base per club is also expected to develop favourably over time.

SATS will focus on offering a comprehensive and high-quality equipment park, leading personal training, and a range of highly regarded niche concepts. The Company will continue to offer flexible memberships ensuring that SATS is relevant for everyone.

The Company will continue participating in the fitness industry's digitalization as exciting opportunities exist to expand the product offering. SATS is committed to participating in this trend and developing an attractive, high-quality hybrid offering, to stay relevant both for people who want to work out at a fitness club, outdoors, and at home.

In the short to medium term, SATS will keep a cautious approach to further club growth, prioritizing reducing net debt.

SHAREHOLDER INFORMATION SATS ASA's share capital was NOK 435 million as at September 30, 2023, divided into 204 694 588 ordinary shares, each with a par value of NOK 2.125. All the shares have been fully paid and have equal rights. SATS owned 650 904 treasury shares as at the balance sheet date. The number of shareholders as at September 30, 2023 was 5 643.

FINANCIAL POLICY AND DIVIDEND The Company has an unsecured revolving credit facility ("RCF") agreement, consisting of a multicurrency revolving credit facility with a maximum principal amount of NOK 2 500 million.

In February 2022, the company signed an addendum to the NOK 2 500 million facility, extending the RCF by one year until September 2025. The addendum also includes adjusted covenants that will be applicable up to and including December 31, 2023, subject to voluntary cancellation by SATS at any time. The financial covenants set out quarterly minimum levels for liquidity and EBITDA. SATS cannot distribute any dividend to the shareholders during the amendment period and shall comply with the original covenants once the amendment period expires.

SATS has chosen to voluntarily cancel the covenant waiver prior to expiration and will return to the original financial covenants with effect from November 2023. The financial covenant of the original agreement requires the leverage ratio, Net Debt to EBITDA before IFRS 16, not to exceed 4.0x. The facility agreement does not contain any restrictions on dividend payments.

RISK AND UNCERTAINTY FACTORS SATS operates in a broad range of geographical markets in the highly competitive health and fitness industry. In achieving its long-termstrategic objectives, SATS is inherently involved in taking risks. Please see the Group's 2022 Annual Report (Board of Directors' Report and Note 25), for a detailed description of the Group's risk factors and risk management policies and procedures.

EVENTS AFTER THE BALANCE SHEET DATE

There have been no material events subsequent to the reporting period that might significantly affect the consolidated interim financial statements for the third quarter of 2023.

DISCLAIMER

This report includes forward-looking statements based on our current expectations and projections about future events. Statements herein regarding future events or prospects, other than statements of historical facts, are forward-looking statements. All such statements are subject to inherent risks and uncertainties, and many factors can lead to actual profit and developments deviating substantially from what has been expressed or implied in such statements. As a result, undue reliance should not be placed on these forward- looking statements.

Oslo, October 25, 2023

The Board of Directors

SATS Q3 2023

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