QUARTERLY STATEMENT Q4 2021 – LifeFit Group still with strong cash balance

Frankfurt/Main, 31 December 2021. LifeFit Group, a leading fitness and health platform in Germany
and operator of the Fitness First, Elbgym, smile X, Barry’s, The Gym Society Germany, Pure Barre and
Club Pilates brands, has published its unaudited quarterly results (1) for LifeFit Group as of 31 October
2021.

Highlights pro forma Financials and KPIs Oct-21 LTM:

• Operational KPIs went down with members from more than 245k in Q1/20 to around 180k post
• second lockdown (driven by lack of joiners)
• Reopening of all clubs in June 2021 came along with encouraging membership recovery, now
• slowing down due to stronger restrictions in Germany (2 studios currently closed)
• Total revenues in core business2 decreased by 4.6% vs. FY20 to EUR 112.4m and will be affected
• further in future due to missing members resulting from the lockdown and forthcoming
• compensations
• Oct-21 LTM Adjusted EBITDA in core business increased by 103.4% vs. FY20 to EUR 33.5m, clearly
• driven by governmental support
• Adjusted EBITDA margin at 29.8% (vs. 14.0% in FY20)
• Q4 Net Cash Flow of EUR +2.6m benefits from governmental support
• Strong cash position at quarter end with EUR 23.0m cash at bank

“The summer saw some real greenshoots with the reopening of clubs and encouraging rebound joiner
numbers and visitation. Our transformation plan with leaner processes, more digitization and much
lower cost base has also proven successful.” says Martin Seibold, CEO of the LifeFit Group. “We have
been taking transparent and decisive actions in support of our staff and members and have
introduced cash preserving activities to mitigate the economic impact. In addition we are utilising
state related economic relief programs and with our good cash position we are in a strong position
to weather this storm and be ready for developing opportunities on the M&A front. Health & fitness
in general and strengthening of the immune system is probably more important than ever which we
anticipate will drive more people into gyms over time.”

Revenue impacted by covid-19 related club closures 

Operational and financial KPIs where significantly impacted by the covid-19 crisis and related
club closures from mid of March to mid of June 20 and from November 20 to mid of June 21
which is partly offset by governmental support. Therefore Total LTM revenues in core business
decreased by -4.6% compared to FY20 to EUR 112.4m. Total revenues have been impacted
negatively by frozen memberships, rejects and refunds as well as missing side revenues (e.g. PT
income, F&B, aggregator income) during the lockdown. Reopening of all clubs in June 2021 came
along with encouraging membership recovery, now slowing down due to stronger restrictions
in Germany (2 studios currently closed). 

EBITDA increase clearly driven by governmental support 

Oct-21 LTM pro forma adjusted EBITDA in core business increased by 103.4% compared to FY20
from EUR 16.5m to EUR 33.5m. Underlying numbers are mainly driven by membership dues
compensation and missing side revenues during and as result of the lockdowns as well as missing
members afterwards. Initiated cost actions during the lockdown (esp. short-time work) and
governmental support packages (EUR 48.8m in LTM period) were able to overcompensate
revenue shortfall in the short term. The EBITDA margin therefore increased from 14.0% in FY20
to 29.8% in Oct 21 LTM.

EUR +2.6m net change in cash as a result of governmental support 

Net Cash Flow for Q4/FY21 was EUR +2.6m, which benefits from governmental support (EUR
12.3m received in Q4). Working capital is primary characterised by further subsidies receivables
and positive IFRS15 deferred revenue effect. The group shows a strong cash position at quarter
end with more than EUR 23.0m cash at bank.

Outlook 

The whole fitness industry was negatively affected by the Covid-19 outbreak. With having had
the LifeFit studios closed again in the course of the second lockdown, the LFG expects further
implications on future financial performance from a short/mid-term perspective. By ensuring
best-in-class hygiene standards we will comfort the members to work-out and come back to
routine since clubs are reopen again from mid of June 2021 onwards. First month’s key drivers
make confident for a rapid operational rebound of the business once restrictions are fully
removed. In the long-term LFG is confident that health and fitness will be even more focused in
the society. 

The negative financial impact of covid-19 will probably lead to a consolidation phase in the
fitness industry with opportunities for growth via acquisitions. The vast experience in managing
different brands in various segments combined with efficient and scalable central services
qualifies LFG as a central future player in the German fitness industry.

Considering the increasing share of the “Omicron” variant there is a risk of a future lockdown in
the course of the fifth wave. In addition to that further restrictions and adjusted framework
conditions are very likely (e.g. “2G”/”2G+”) and could have impact on the business. Thus LFG
continues to focus on resolute cash-flow management to ensure a high level of liquidity.

For further information, please contact:

LifeFit Group
Mareike Scheer
PR Manager
Phone: +49 (0)69 408016-150
Email: presse@lifefit-group.com

Adel & Link Public Relations
PR-Team LifeFit Group
Marisa Puschmann / Natalie Buß
Phone.: +49 (0)69 1534045-48
Email: lifefit-group@adellink.de

(1) Due to the short financial year of Lifefit Group Midco in FY19 and FY20 and for a better understanding of the financial results, the group presents pro forma financial statements considering the 12 month period 1 November 2020 to 31 October 2021 and adjusted for IFRS 16 impacts.
(2) Core business excludes all clubs/services, which have been divested/closed or will not be continued.