First phase for increased profitability implemented- Action plan for facilities that do not perform

Actic has for several years established and acquired individual facilities or gym chains to build clusters. The strategy has led to a leading position in a number of local markets in the countries Actic operates. Through a clearer conceptualisation of the offering, where support and operations are streamlined and simplified, and where economies of scale are utilised, there is a significant earnings potential that has not yet been realised.

Strategic focus for Actic going forward is a clearer conceptualisation of the offering, where support and operations are streamlined and simplified in order to achieve economies of scale and synergies for increased profitability. As the first phase of the work, Actic has made changes to the organisation. Partly in Group management where new roles were created, partly in the finance department where staff were replaced as well as change of central support systems. All to increase support and proximity to facilities and site managers in order to strengthen the offer to Actic's members.

In the short term, these drives costs, which charged the two most recently reported quarters with increased support costs of a total of SEK 10 million. A majority of these costs have consisted of personnel changes, external consultants and increased IT support to simplify and improve the quality of financial management and reporting. The increased support costs of SEK 5 million per quarter will also impact the current quarter, but are expected to be phased out during the third quarter, and in the first step return to last year's cost level.

In addition to conceptualisation, Actic has identified about 10 facilities that are not profitable and another some 25 facilities that do not meet the internal profitability target. Actic's action plan for achieving the right profitability is to utilise Group-wide platform, economies of scale and to take the help of the most successful site managers. Unless the plants that are not profitable reach their targets within nine months, they will be divested or closed. The effect of this work will result in an earnings improvement in the range of SEK 12-15 million annually.

Further strategic measures for increased profitability through conceptualisation will be communicated during the second half of the year.

For further information, please contact:

Anders Carlbark, CEO, anders.carlbark@actic.se, +46 72-980 53 94

Niklas Alm, Investor Relations, niklas.alm@actic.se, +46 70 824 40 88

The information above is such that Actic Group AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 10:00 CET on June 3rd 2019.

Actic (formerly Nautilus Gym) was founded in 1981 and launched the Gym & Swim club concept. The company began its international expansion in 1995 and as per 31 March 2019, Actic had 180 facilities and 228,000 members in four countries. Actic’s main markets are Sweden, Norway as well as Germany and Austria. Actic offers a well-established exercise method known as high-intensity training (HIT) and offers its members personal training programmes including follow-up sessions with trained instructors. Together with swimming, this forms the core of Actic’s offering and differentiates us in the market.

Actic’s vision is to create a healthier society by attracting a broad target group and thereby expanding the market. The facilities engage in the local community to contribute to a healthier society. Actic, which has its head office in Solna, Stockholm, has approximately 800 full-time equivalent employees and had net sales of SEK 941 million in 2018. Actic is led by its President and CEO Anders Carlbark.