This is SATS

SATS is the largest fitness operator in the Nordics and one of the five largest fitness operators in Europe.

Vision

At SATS, we strive toward our vision of making people healthier and happier. Despite the Nordic region being one of the most physically active in the world, with around 20 percent of the population having gym membership, over 60 percent of our waking hours are still spent sitting or resting. We aim to change this trend by helping members become more active and finding joy in activity. Supporting our members in succeeding with their training is also a key element for us in building a profitable business. Based on decades of experience from the fitness industry, we know that active members who stick to their habits over time are the most loyal members.

Values

Our values are Members First, Accountable, Professional, and Extraordinary. They represent the heart of our culture and the “how” when we make decisions. When we interact with members and colleagues, our values are what guides us. We believe in the importance of building a strong value-based culture. Our overall goal is for everyone in the company to know the SATS vision and values, reflect on them, and use them in their daily work. We will continue to work with our culture throughout our clubs and service offices in the Nordics going forward.

Our values serve as the compass that leads our actions and behavior in our daily work.

(i) I put members first

– Our members are the foundation of everything we do and our number one priority. In every situation, we go out of our way to create value for our members. We make our members feel special, we encourage their progress, and we see the individual.

(ii) I am accountable for what I do

– Accountability is about delivering what we promise. We always set a good example for others and perform our duties diligently. In cases where errors are made, we take responsibility for fixing them as quickly as possible.

(iii) I am professional

– We set the standards for our industry and have the most dedicated and competent employees. We all act and contribute to help SATS achieve its goals and be perceived as the preferred partner. We are always good SATS ambassadors.

(iv) I am extraordinary in everything I do

– Together as a team, we create experiences that our members will remember and surpass their expectations. We take every opportunity to glow, and we take advantage of being big, without losing the personal touch.

Strategic aspiration

To achieve our vision, SATS’ strategy aims to help more members succeed with their training. Our strategy is centered around being the best fitness club operator, hence focusing gym efficiency and provide services that help members reach their fitness targets. Specifically, SATS is focusing on four strategic areas – (i) attract new members, (ii) engage our members, (iii) create extraordinary moments, and (iv) provide high-quality clubs.

(i) Attract new members

Inspire members to start exercising and show them how we can help them live healthier lives

A large share of the Nordic population is inactive and would likely experience substantial health benefits from exercise. SATS will inspire people to take the first step to a healthier life by showing them how exercise can be fun, and the joys of being part of a training community. Our goal is to eliminate obstacles to exercise by offering memberships tailored to our members’ needs. Additionally, at SATS, we prioritize making the sign-up process quick and easy, enabling new members to start enjoying an active lifestyle as soon as possible.

(ii) Engage our members

Help members achieve a sustainable activity level by using our people, insights and diverse portfolio of products

At SATS, we help our members achieve a sustainable activity level by using our people, insights, and diverse portfolio of products. Regarding exercise, consistency is key, both for capturing the health benefits from training and for reaching performance targets. SATS help members achieve this consistency and build lasting habits, while recognizing that each member needs to be challenged at their own level. By using member insights and maintaining a diverse portfolio of products, SATS ensures that members find a way to exercise that they enjoy and that brings them closer to their goals.

(iii) Create extraordinary moments

Create an extraordinary SATS experience in all clubs through inspiring staff, instructors and PTs who truly see our members

Our people are at the core of our product and a key part of the SATS experience. SATS’ staff play a crucial role in delivering our product by making people feel welcome at the club, instructing our group training classes, or providing personalized coaching as a PT. SATS aim to attract the best people and provide the support they need to perform in their roles and help the members succeed with their training. Our operating model provides a standardized framework for how we run our clubs and enables us to provide great experiences in all clubs across the Nordics.

(iv) Provide high-quality clubs

Ensure our clubs are of high quality and that members get access to a wide training offering through our clusters

SATS has a strong cluster of clubs across the Nordics, meaning SATS’ members get access to a wide product offering with a cluster perspective. Hence, SATS can deliver a broad product offering on the cluster level while maintaining high utilization in every club. SATS’ clubs have a premium standard and welcoming atmosphere, and as part of this ambition, we also strive to have high uptime on equipment and facilities.

Our position

At SATS, we believe that activity is an important element of a healthy lifestyle, and we aim to inspire people to get active and experience the benefits. We want everyone to feel welcome to join SATS regardless of their current fitness level and previous training experience. It is important for us to lower the threshold for starting to exercise by providing the support our members need and having an offering that is relevant for all fitness levels. Equally important is motivating each member at their own level and recognizing that the goals and ambitions of our member base are diverse. At SATS, members should find a joyful atmosphere that makes going to the gym easier.

Growth routes to drive value creation

SATS sees several paths for growth going forward. In the short term, club expansion will be selective and opportunistic, with a significant focus on increasing the member base at existing clubs. We identify four main strategies to boost the number of members per club.

First, we continue to work with our product offering to make our clusters, as well as single clubs, more attractive for existing and potential members. Second, for some clubs, there is a substantial upside in upgrading or relocating to improve the club quality and micro-location. Third, we optimize the club layout and equipment mix to facilitate more members per square meter at our fullest clubs. Fourth, we downsize and/or relocate clubs with too much space relative to the member base to optimize club layout and improve club space utilization.

In the longer term, we will keep growing the club portfolio, expanding in existing clusters, and potentially entering new attractive clusters. We also see an opportunity to improve the average revenue per member by offering adjacent products and services, and continued development of our personal training and retail offering. We continue to improve the scale and platform advantages as the operating leverage drives a high drop-through of incremental revenues. In addition, we will focus on club and overhead cost discipline.