StrongPoint

Earnings Release • Jul 12, 2024

StrongPoint ASA: Second Quarter and First Half Financial Results 2024

StrongPoint ASA: Second Quarter and First Half Financial Results 2024

12.7.2024 07:00:00 CEST | StrongPoint | Half yearly financial reports and audit

reports / limited reviews

(Oslo, 12 July 2024) StrongPoint ASA reported revenues of NOK 297 million in the

second quarter of 2024, NOK 40 million lower than same quarter in 2023 (337).

The EBITDA decreased by NOK 11.2 million to NOK -9.1 million (2.1) including

non-recurring restructuring personnel costs of NOK 10 million.

"Our second quarter 2024 was difficult. Revenue from our product sale was down

across our business units. Even though this was foreseen, and hence additional

cost measures were announced following our first quarter results, the decline in

revenue from many of our solutions was hard to swallow. However, on the positive

side, we have improved both our gross margin, increased our service revenue and

our recurring revenue base. Furthermore, we announced the installation of our

pilot for our innovative new cash management solution, CashGuard Connect, at the

largest grocery retailer in Spain. These are all important achievements and

levers to ensure a healthy business forward," says Jacob Tveraabak, Chief

Executive Officer of StrongPoint.

StrongPoint reported revenues of NOK 297 million (337) in the second quarter of

2024 and an EBITDA of - 9.1 million (2.1). The second quarter EBIT was NOK -

19.6 million and EBT was NOK -27.6 million. The net profit after tax ended at

NOK -21.2 million in the quarter. Cash flow from operating activities was NOK -

9.7 million.

"Beyond looking at just one quarter, we are making progress with major customer

wins with our proprietary products and solutions. The delivery of our Order

Picking solution to Sainsbury's announced in first quarter this year is

progressing well and already resulting in revenue this quarter. We expect to go

live with the first stores of our solution with Sainsbury's in third quarter.

The development of our innovative new CashGuard Connect solution is progressing

with the first deployment of the solution live in-store with Spain's largest

grocery retailer. In addition, we announced additional sales of our proprietary

temperature-controlled Click & Collect grocery lockers to a major grocery retail

customer in the US," Tveraabak continues.

"As we move into the second half of 2024, I recognize that the uncertainty

levels regarding our business performance remain high. Given this uncertainty, I

am cautious about promising any certain financial improvement in the short term.

However I do not expect the weak market conditions to continue in the

medium-term. To summarise, when including the measures we have already taken, I

am hopeful about the financial performance for the second half of this year,"

Tveraabak concludes.

StrongPoint will host an in-person and streamed presentation of the second

quarter results at 07:00 CET followed by a Q&A session at 11:00 CET Friday 12

July 2024. Questions can be submitted online during the Q&A or via email at:

investor@strongpoint.com.

The webcast is available atstrongpoint.com - http://strongpoint.comand can also

be accessed by the following links:

Q2 Presentation:

https://channel.royalcast.com/landingpage/hegnarmedia/20240711_7/ -

https://checkpoint.url-protection.com/v1/url?o=https%3A//channel.royalcast.com/l

andingpage/hegnarmedia/20240711_7/&g=N2ViMWIyNGY2NTFjMGU1Mw==&h=NDdiNzBkZTAwZjZh

YTc3NjVkYWY3NjA2ZTQzZTNjNGZjNTAzMzcxNzI3ZmVhNDZiNzdhMWMwMDgyM2FmMmFlMw==&p=Y3AxZ

TpzdHJvbmdwb2ludDpjOm86N2VmMWMwMWFiYjEzOWVmMTRiY2RjOGQ0ODVkNTg3N2U6djE6aDpU

Live Audiocast :

https://channel.royalcast.com/landingpage/hegnarmedia/20240712_7/ -

https://checkpoint.url-protection.com/v1/url?o=https%3A//channel.royalcast.com/l

andingpage/hegnarmedia/20240712_7/&g=ZGVlNzcyNWY0ZTAxYzMxNQ==&h=Nzc5MjVhMDUyNzcy

NDI4ZDBmMjRhNTk1MDBiODdkMzlhMDlmMDIxMTA5YjJmZmUxOGQ4N2Y3ODAzNWRmNGY4NA==&p=Y3AxZ

TpzdHJvbmdwb2ludDpjOm86ZjJlN2JhMjhmMDljOGU2ZTlkNDY4ODBkM2VkZmQyZWY6djE6aDpU

*EBITDA and other alternative performance measures (APMs) are defined and

reconciled to the IFRS financial statements as a part of the APM section of the

first quarter 2024 financial report on page 23.

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act.

CONTACTS

* Marius Drefvelin, CFO StrongPoint ASA, +47 958 95 690,

marius.drefvelin@strongpoint.com

ABOUT STRONGPOINT

StrongPoint is a grocery retail technology company that provides solutions to

make shops smarter, shopping experiences better and online grocery shopping more

efficient. With over 500 employees in Norway, Sweden, the Baltics, Finland,

Spain, the UK and Ireland and together with a wide partner network, StrongPoint

supports grocery and retail businesses in more than 20 countries. StrongPoint

provides in-store cash management and payment solutions, electronic shelf

labels, self-checkouts, task and labor management software, click & collect

temperature-controlled grocery lockers, in-store and drive-thru grocery pickup

solutions and grocery order picking solutions, both manual and automated.

StrongPoint is headquartered in Norway and is listed on the Oslo Stock Exchange

with a revenue of approx 1.4bn NOK [ticker: STRO].

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17847450/18179686/4762/Download%20announce

ment%20as%20PDF.pdf

StrongPoint Q2 2024.pdf -

https://kommunikasjon.ntb.no/ir-files/17847450/18179686/4759/StrongPoint%20Q2%20

2024.pdf

StrongPoint Q2 2024 print version.pdf -

https://kommunikasjon.ntb.no/ir-files/17847450/18179686/4760/StrongPoint%20Q2%20

2024%20print%20version.pdf

StrongPoint Q2 2024 Presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847450/18179686/4761/StrongPoint%20Q2%20

2024%20Presentation.pdf