SETEMBRO 2017

| Historical Marks

Foundation of Miralago, in Águeda. The company main activity

1956
was the production of specific component for bicycles.

1971 Foundation of ÓRBITA, “Bicicletas Portuguesas, Lda”

1975 Creation of a new manufacturing unit | Strategy Guidelines

Bet on the manufacture of gym equipment and investment in

1980
manufacturing process with new techniques Raising
productive
efficiency
Installation of a new assembly line of fitness equipment (brand
Strengthen
1990 GYMFORCE). Entry into new markets, such as Spain, France, the
Italy, Germany and Brazil. Conquest of YAMAHA as a customer, Generate capabilities
which remains in the present day Management
Information
40% growth of turnover.
2007 Development of Machines for the Female exercise in circuit for
the Range of Fitness Equipment

Development of solutions for shared use of bicycles, creating a Rach new

customers /
2011 new business unit dedicated to sustainable mobility, branded Markets
JustB Smart
Mobility Bet
Enhance
Restructuring the product range with the creation of the margins
2014 trademarks: MIRAL sports, MIRALTECH, MIRAL +Mobility and
Wildselle.

The acquisition of MIRALAGO Group by its actual Management.

2015 With this change, existed some changes in the group strategy
guidelines, which are synthetized in the image on the right

Estritamente Privado e Confidencial 2

 | Performance of the sector

MOTORCYCLING AND CYCLING INDUSTRY

• In 2016, according to ACEM (European Association of Motorcycle Manufacturers), was verified an
9.1% increase in Motorcycle and mopeds registrations (when compared with 2015)
• In Europe, 1.3 million license registration were made , mostly in the markets: France (253k), Italy
(220k), Germany (174k), Spain (172k), among others
• As can be seen in the graph on the right (source: ACEM), in the January to June period of 2016 and
2017, the number of registrations grew up in France and Italy and decreased in Germany, Spain and
United Kingdom

HEALTH AND FITNESS

• From 2009 to 2016, the gym segment, in Europe, have a positive performance and a
growing turnover (although, a slight fall was verified in 2015 – see graph on the left)
• The Gyms and Fitness Clubs had a 4.4% growth (in 2016) and a 3.1% growth in
revenues (the total revenues were 26.3 billion euros)
• According to recent studies, this sector will grow until 2025, reaching 80 million users
• In Portugal, this sector grow (in number of users) 13% in 2015 and 30% in 2016, this
sector also grow (in number of clubs) 5% in 2015 and 14% in 2016

BIKE SHARING
• Bike Sharing started in 1965 (in Amsterdam), were the bicycles were left unblocked in the
town so they can be used. However, a great number of theft and vandalism was verified
• After four generations and many improvements of Bike Sharing, this is considered a trend
of the future. Until 2013, was estimated that more than 535 projects were implemented
across the globe (representing more than 510 thousand bikes)
• As can be seen in the graph on the right, Europe is the continent which represents more
Bike Sharing programmes developed, followed by “Asia and Pacific”, “North America”,
“Latina America” and “Middle East”
Estritamente Privado e Confidencial 3
 | Miralago Strategy

SWOT Analysis
• Immaterial assets and industrial heritage
acquired along 60 years of activitie
• Highly qualified Human Resources in its
functions and with great experience in
the sector
• Wide range of technical competences,
such as: cutting, punching, tapping,
• Lack of strategic vision from the previous
management (which was replaced in Products/Markets Matrix
2015)
• The fitness products resale has no Products
control over the production process
• Insufficient human resources in R&D Existent New
• Physical and resource dispersion
Market Access Development

Existent
milling, turning, among others between ÓRBITA and MIRALAGO

Markets
• Capability to provide customized • Unfavorable working cycle with Bicycles of Products
products, tailored to the needs of significant requirements for ramp-up
customers performance Pieces and Pieces and
• Bet on R&D • Need to make some Portugal 2020 components components
approved investments
Strengths
Weakness Market Diversification

New
Development
Opportunities Health Care and
• Horizon 2020 funding program Threats Smart Mobility Fitness
• The growth of Smart Mobility, which • Raw materials prices oscillation
have a great demand by population and • Entrance of new players with industrial
government entities skills
• Chance to implement the program in • Grow of urban mobility alternative
Lisbon and to replicate it in other Capital products, such as: Segway, Overboard
cities of Europe • Concurrence of major international
• Good relationship with “JC Decaux” – bicycle companies
which have similar projects going on • Lack of Bank support to private
since the Paris implementation companies

Estritamente Privado e Confidencial 4

 | Future Perspectives
Financial indicators 2017 (e) 2018 (p) 2019 (p) 2020 (p) 2021 (p) 2022 (p)
Financial Autonomy 37.0% 38.8% 43.4% 53.0% 62.2% 69.6%
Solvency 58.8% 63.3% 76.8% 112.8% 164.3% 228.5%
Liquidity Ratio 1.51x 1.45x 1.64x 1.96x 2.39x 3.00x
EBITDA / Turnover Positioning from 2017 to 2022
Quick Ratio 0.72x 0.72x 0.93x 1.28x 1.70x 2.25x
35.000.000 50% Debt to Equity Ratio 125.1% 110.6% 78.4% 43.9% 25.0% 14.4%
Ratio Remunerated debt /EBITDA 12.03x 4.30x 1.58x 0.89x 0.58x 0.39x
30.000.000 40%
27,9%
25,2% 27,3% Performance indicators 2017 (e) 2018 (p) 2019 (p) 2020 (p) 2021 (p) 2022 (p)
25.000.000 30%
22,0% Clients average payment term 60 60 60 60 60 60
20.000.000 20,5% 20% Suppliers average payment term 50 60 60 60 60 60
12,8%
12,5%
Average Duration of Inventories
150 120 90 60 60 60
15.000.000 10% (Cost of goods)
32.130.527
28.421.488
24.255.750

Average Duration of Finished

18.315.000

10.000.000 6,3% 0% 60 60 60 60 60 60
products (Turnover)
11.685.000
8.960.000

5.000.000 -10%
Profitability indicators 2017 (e) 2018 (p) 2019 (p) 2020 (p) 2021 (p) 2022 (p)
0 -20% EBITDA/ Equity 10.40% 25.72% 49.52% 49.46% 43.41% 36.74%
2017 (e) 2018 (p) 2019 (p) 2020 (p) 2021 (p) 2022 (p) EBITDA/ Sales and services
6.29% 12.82% 21.99% 25.19% 27.32% 27.91%
Turnover EBITDA/Turnover rendered
Third Quartile Sector Median EBITDA/ Assets 3.85% 9.97% 21.51% 26.22% 26.99% 25.55%

Economic Indicators 2017 (e) 2018 (p) 2019 (p) 2020 (p) 2021 (p) 2022 (p)
Total Gross Margin (Turnover without maintenance) 4,251,060 5,237,000 8,103,500 10,568,950 12,539,393 14,171,816
Total Gross Margin % (Turnover without maintenance) 47.4% 44.8% 44.2% 43.6% 44.1% 44.1%
Bicycles segment margin 40.0% 50.0% 50.0% 50.0% 50.0% 50.0%
Bike Sharing segment margin (sales equipment) 48.4% 50.0% 50.0% 50.0% 50.0% 50.0%
Components segment margin 60.0% 60.0% 60.0% 60.0% 60.0% 60.0%
Other segments margin 70.0% 70.0% 70.0% 70.0% 70.0% 70.0%
Maintenance fee margin 24.5% 20.3% 24.8% 26.6% 26.9% 27.2%
Supply and Servives / Turnover 14.3% 9.6% 7.7% 6.9% 6.5% 6.3%
Personal Expenses / Turnover 26.8% 21.6% 14.5% 11.5% 10.3% 9.5%
EBITDA / Turnover 6.3% 12.8% 22.0% 25.2% 27.3% 27.9%
Operational Result / Turnover -1.2% 6.5% 17.5% 23.2% 25.6% 26.6%
Results Before Taxes / Turnover -3.8% 4.5% 16.3% 22.5% 25.1% 26.2%
Financial Costs / Turnover 2.6% 2.1% 1.2% 0.8% 0.5% 0.4%
Interest Coverage (Rácio EBITDA/Net Financial Costs) 2.4x 6.2x 18.4x 32.7x 50.1x 73.3x
Net Result / Turnover -3.0% 3.5% 12.6% 17.4% 19.5% 20.3%

Estritamente Privado e Confidencial 5