Pre-Close Call Scripts

SATS conducts pre-close calls with analysts covering the stock before entering into the silent period three weeks ahead of each quarterly results. During the calls, SATS reiterates information made publicly available in previous quarterly reports without sharing any new material information.

The scripts for the calls will be made available at 9:00 AM CET on the same day as the first pre-close call.

Q4 2024 pre-close call script (published on 13 December 2024 at 09.00am:

In preparation for our Q4 2024 pre-close calls, we would like to provide an update on key developments and expectations. We remain consistent with the outlook shared in our previous investor communications, as there are no material changes to report, either operationally or financially. The following outlines our progress and plans.

Product and Club Updates: We have continued to focus on improving the product through club upgrades and investments in the group training offering, aiming to enhance capacity utilization and member activity. Except for one club opening being postponed from 2025 to 2026, there are no changes to the club expansion pipeline since the Q3 update. The club portfolio will thus be reduced by one club in Q4, compared to an increase of one club in Q4 2023.

Financials: Costs are expected to align with inflation going forward, except for salaries, which will follow local collective bargaining agreements and extra investments in the group training offering. To reduce risk, we have hedged the electricity price for approximately 50% of the total estimated consumption from Q4 2024 through the end of 2026. The hedge is performed for the power regions NO1 and SE2 at a weighted average price of NOK 63 øre per kWh. Significant upgrades to the club portfolio have been made during Q4. Maintenance capex is thus heavily skewed towards Q4, as previously communicated. Final maintenance capex is pending degree of completion before year-end, but the activity level corresponds to 5% of revenues for the year as a whole, though some cash flow may spill over into 2025.

Price Adjustments: List prices were adjusted effective December 1st, with the “One club” product being lifted relatively more than the “Region” product. On average, list prices were raised slightly above inflation. Price adjustments for existing members are expected in January and February. Members will be adjusted based on October inflation, with those deviating significantly from list prices being brought closer to alignment.

Seasonal Focus: We are currently preparing for the peak season in January, which is one of the most crucial periods of the year. This involves ramping up marketing efforts to attract new members, optimizing club operations to handle increased visits, and ensuring staff are well-trained and ready to provide extraordinary service.

Shareholder Distribution: We maintain our commitment to distribute at least 50% of annual net profit through a combination of share buybacks and semi-annual dividends.

We look forward to discussing these updates during the pre-close calls with analysts.