StrongPoint

Quarterly Report • Apr 25, 2024

Q1 2024

Financial report and status

CEO's Perspective

The start of 2024 continued much like the end of 2023: economic uncertainty and relatively high interest rates, pushing many of our grocery customers' investment decisions out in time. Furthermore, we are continuing to face the impact of unfavorable foreign exchange rates in two of our important markets, Norway and Sweden, which

further amplifies the investment cautiousness of our customers in those core markets. Finally, although we in the UK landed the very important E-commerce Order Picking solution agreement with Sainsbury's, the original ALS shopfitting business has been slow. Our focus now is to deliver on the important Sainsbury's deal and capitalize on the opportunities in the wake of this, whilst improving our shopfitting business' performance.

As a result of the above, our quarteriv revenues are As a result of the above, our qualtery revenues are
somewhat down compared to last year. Despite having
completed the announced cost reduction effort in Q4, the revenue decline has put significant pressure on our shortterm profitability - and more so than expected. Therefore, we are again taking further actions to cushion the hit on profitability by initiating an organizational restructuring and promability by innualing an organizational rooddotioning and
cost reduction program aimed at saving and one of any and the only one
to the already completed and ongoing s reduction actions we have announced, we are continuously assessing additional measures to adapt our business.

Whereas our financial results certainly are taking a hit, we o mos sais and with our long-cent and canbition hip not the first and the first and the first of the first of the first of the first of the first befor
Sainsbury's Order Pick stand by that. This win is only rivalled by our long-awaited innovative cash management solution announcement, which came at the start of Q2, with the by far largest grocery chain in Spain: Mercadona, Both projects are in themselves than in brunn more, these customer plantorms of only of one of one of one of one of one of one of one of one of one one over
important and unique stamment the UK and Spain A markets to deliver on the demand from these customers and to set up for a significant growth in the years to come

Following our year-end results, we announced that our financial ambitions for 2025 would not be met. This follow manolor amblions for 2020 frould not be model rind rolon
the rapid deterioration of the economic conditions for our in addition to longer-than-expected announcement of major breakthrough customer deals. In our annual Strategy Update Session following the Q1 results we are updating investors both on our 2025 estimates as well as on our long-term financial aspirations

imancial aspirations.
Our revenue in the first quarter of 2024 was 359 MNOK.
reflecting a 6% decline compared to same quarter in 2023.
The development has a two-folded ex macroeconomic headwinds across our markets, which is amplified in Norway and Sweden due to unfavorable foreign exchange rate development. Whereas our operations in the oxonaligo rato do volophidial versis solo financial in and the lines
Baltics have consistentify delivered sold financial in Callerial in Ca
throughout 2023, we did use quar negative impact on our shopfitting business in the UK

Our LDF TDA for the quarter last year. The decline a
positive 13.5 MNOK (4%) same quarter last year. The decline
stems primarily from our operations in the UK and the B whilst the decline was exacerbated by poorer results in Spain compared to last year. In the quarter we also continued to invest in the delivery of our Order Picking solution delivery to Sainsbury's and in ensuring a successful cash management pilot and set up for roll-out with Mercadona. These investments phot and set up for for for for with Mercedonal "These invest
are crucial for our future success, atthough they have a
negative short term impact in this quarter.

In light of the worse-than expected business development and poor quarterly results we are embarking on a restructuring process of our traditional core markets. In Norway and Sweden we will now be leading the operations under one Shouor no will nother than one Shockuor eperisations on one of only
SVP, Magines Rosen, rather than one Stocklor eperisalism, whiles
historios reserve specific qurogramic com all StrongPoint countries. This is expected to be an important contribution to the customer service of new and emerging customers in the UK and Spain, In addition, we are rightsizing our remaining organization, which in total is expected to bri our remaining organization, which in total is expected to bring
us approx 20 MNOK savings p. a with full effect as ef en en all online
this year. Related restructuring cos

environment is hard, in particular in the short term. Hence, we are cautious about promising or expecting any short term improvements vs. today's observed business development. That said, we remain confident in the bright future demand and Frice our wo romain obmitions. Our recently announced innovative
cash management system in Spain with Mercadona and our Order Picking solution win with Sainsbury's in the UK are testimonies of our relevance now and in the future. Whereas these projects are big and important in themselves, the customer dialogues in the UK and Spain on the back of these occomer didlogaoo in the OR and Opain on the business and one of the occ
profitability, in particular in the medium and long run.
profitability, in particular in the medium a

StrongPoint team, our valued customers, our partners, and our shareholders for their support in these turbulent times. Together, we will continue to uphold our commitment to oroviding retail technology in every shopping experience for a smarter and better world.

Stay safe, strong, and passionate

っ

Our EBITDA for the quarter was -6.2 MNOK (-2%) vs

• EBITDA for the quarter ended at -6.2 MNOK (13.5), with gross margin of 36% (37%) · Cash flow from operations was 15,3 MNOK (-44.2) for the quarter

macro environment

HIGHLIGHTS

Financial performance 1st quarter

Continued customer success in priority areas

• UK's second largest grocery retailer Sainsbury's selected StrongPoint to replace its Order Picking solution for all its in-store picking across the UK

• Revenue declined 6% to 359 MNOK (381) in the first quarter compared to the same quarter last

year, while the rolling twelve months recurring revenue increased by 7% for the same period

Financial performance continues to be affected by an uncertain global

Progress on 2025 strategic ambitions

• In the Strategy Update Session on 25th April, the 2025 estimates and new long-term financial aspirations, will be presented
• Secured new financing, replacing the current bank overdraft facility with RCF and working capital financing, to deliver on strategy with continued growth investments and serving larger grocery retailers

Key figures

MNOK	Q1 2024	Q1 2023	Year 2023
Revenue	359.0	381.4	1.342.4
EBITDA	-6.2	13.5	-1.3
EB TDA marqin	-1.7%	3.5%	-0.1%
EBITDA excluding option cost	-4.8	15.0	5.1
Operating profit (EBIT)	-16.8	4.0	-39.4
Ordinary profit before tax (EBI)	-14.8	7.6	-45.3
Cash flow from operational activities	15.3	-44.2	25.2
Disposable funds	95.2	73.5	95.2
Earnings per share (NOK)	-0.26	0.12	-0.77
Earnings per share, adjusted	-0.19	0.18	-0.52

2

cob Tveraabak CEO of StrongPoint StrongPoint | Q1 2024

			Financial performance continues to be
			macro environment
Revenue	Q1	Year
MNOK
EBITDA	Q1	Year
MNOK
1	523

1) This includes 8 employees who were employees as of 31 March 2024, but who will be leaving during 2024 as part of the restructuring process completed in Q4 2023. Moreover, there were six employees added from the acquisition of Hamari in Finland in Q4 2023, and another 12 employees from the Spanish joint venture, consolidated in Q2 2023.

2) The Q4 2023 EBITDA was -20.6 MNOK), including non-recurring restructuring and M&A costs of 7.3 MNOK and write-downs 10.6 MNOK. Excluding these adjustments, the Q4 2023 EBITDA was -2.7 MNOK.

Financial performance continues to be macro environment

StrongPoint | Q1 2024 StrongPoint | Q1 2024

Outlook

Post balance sheet events

-

⁶ Double

Online

Last mile

EBITDA
EBT
	Q1	Year		Q1	Year
MNOK			MNOK
Revenue			Revenue

	Q1		Year
MNOK	2024	2023	2023
Products	109.1	98.8	230.4
Services	31.1	28.1	109.8
Revenue	140.2	126 9	340.3

Revenue

EBITDA
EBT

	01	Year
MNOK	2024	2023	2023
Products	23.7	19.3	131.1
Services	29.6	26.7	124.4
Revenue	53.3	46.0	255 5

	01		Year
MNOK	2024	2023	2023
Products	10.9	15.3	67.6
Services	5.6	4.8	20.0
Revenue	16.5	20.1	87.6

Revenue

Spain

Revenue

		C
MNOK	2024	2023	2023
Products	136.4	78.7	219.7
Services	29.0	24.5	100.1
Revenue	165.4	103.2	319.7

		Q1
MNOK	2024	2023	2023
Products	27.9	44.3	148.2
Services	29.4	28.4	111 3
Revenue	52.4	72.7	259.5

		01
MNOK	2024	2023	2023
Products	19.2	18.7	117.6
Services	11.9	94	44.4
Revenue	31.1	28.1	162.0

Revenue

	Q1		Year
MNOK	2024	2023	2023
Products	14.5	20.1	89.7
Services	25.4	22.8	101.5
Revenue	39.9	42 9	191.1

-commerce logistics

revenue (MNOK)

JANUARY

The fact that we now serve the UK's second largest grocery retailer is a perfect testament to the quality of our solution.

Jacob Tveraabak,

StrongPoint | Q1 2024

per share

KNOK

2022	21.04 2023		0.9
2021	28.04.2022		0.8
2020	28.04.2021		0.7
2019	22.10.2020		0.6
2018	26.04.2019		0 5
2017	24.04.2018		05
2016	20.04 2017		0 5
2016	05.01.2017	Extraordinary	1.0
2015	28.04.2016		0 4
2014	30.04.2015		0.3
2013	25.04.2014		0.3
2012	26.04.2013		0.2
2011	08.05.2012		0.2

Statement from the Board

Statement Promo Province Property Manager Particular Province Provins Provins Province Province Province Province Province Province Portugios Comments.
Portugues and Proporta

The Board of Directors of StrongPoint ASA Oslo, 24 April 2024

Morthen Johannessen

Ingeborg Molden Hegstad
Director

Cathrine Laksfoss

Audun Nordtveit Director

Peter Wirén Director

16

Jacob Tveraabak CEO

Consolidated income statement

Q1 2024 Q1 2023	Chg. %	Year 2023
358,958 381,396	-5 9 %	1,342,398
229,148 242,037	-5.3 %	805,266
93.765 87,869	6.7 %	366,782
1,409 1,517	-7.1 %	6,395
40,820 36,500	11.8 %	165.244
365,143 367,923	-0 8 %	1,343,687
-6,184 13,473	-145 9 %	-1,288
7.624 6,838	11.5 %	26,996
2,976 2,614	13.8 %	11,163
-16,785 4,021	-517 4 %	-39,448
3,327 2,130	56.2 %	9,617
-5,275 -5,613	6.0 %	-3,543
ਰੇਰੇ	-58.7 %	191
7,603	-294 6 %	-45,331
2,407	-241.9 %	-11,132
5,196	-319 0 %	-34,200
44,888,352		44,888,352
44,319,256		44,397,547
46,638,006		47,820,047
0.12		-0.77
0.11		-0.72
0.30		-0.03
0.29		-0.03
5.196	-319.0 %	-34,200
38,373	-77.2 %	32,894
43,569	-106 0 %	-1,305
43,569	-103 6 %	606
		-1,911
	41 -14,796 -3.417 -11,379 44,888,352 44,548,581 47,808,581 -0.26 -0.24 -0.14 -0.13 -11,379 8,759 -2,619 -1,561 -1,058

StrongPoint | Q1 2024

255 265			KNOK
1) The balance sheet is converted with the closing rate at the balance sheet date, while the income statement is converted with the
	income and expenses. Due to weaker NOK after 31.12.2023, the value of the balance sheet from our foreign companies has increased
	265
18 19

KNOK	Share capital	shares	Other Translation variances	Share Option	Other	Total	interest	Total
					255	265		265

KNOK
		162
	265
1) See note 2

KNOK
EBITDA
EBITA
	523	523	519		523
		521		513		513
EBT

	Q1 2024				Q1 2023		Year 2023
MNOK		Revenue EBITDA		EBT Revenue EBITDA			EBT Revenue EBITDA		EBT
Scandinavia	219.8			19.5 18.0 213.6	15.3 - -	13.6 - -	636.0	41.5	35.1
International incl R&D	139.1		-17.3 -26.6	167.8	64	-1.6 ------	706.4	-10.4	-51 5
ASA/Elim	-	-8.4	-6.1		-82	-4.3		-32.4	-29.0
Total	359.0	-6.2		-14.8 381.4	13.5		7.6 1.342.4	-1-3 --	-45.3

	Q1 2024		Q1 2023		Year 2023
MNOK	Products	Services *	Products	Services *	Products	Services *
Scandinavia	151.9	67.9	152.0	61.6	387.8	248.2
International incl R&D	44.9	94.2	55.9	111.9	274.2	432.1
Elim / ASA	=	=	-	-	-
Total	196.8	162.1	207.9	173.5	662.0	680.4

StrongPoint Q1 2024		StrongPoint Q1 2024
	No. Name	No. of shares
	1
	2 3
	5 6 NORDNET BANK AB
	8
	9
	11
	12
MNOK Revenue EBITDA EBT Revenue EBITDA EBT Revenue EBITDA EBT	13
	15
	16
	18
	19
MNOK Services Services Services *
*) Services and licenses		Total
	36
	Number of instruments
22	23

			Total
36

Number of instruments

Method of valuation:

The fair vicine of share opinated at the date of grant using the Back-Scheles-Merco Option Pricing Model.
The fair values the following parameters; the life of the option, th option.

Vesting requirements:

The vesting of the options is dependent on the participant still being employed at Strongpoint at the time of the vesting.

Method of settlement:

All StrongPoint ASA options are intended to be settled in equity, but can be fulfilled through a cash-out settlement at the Boards'
discretion.

Vesting period

The options will vest over three years, with ¼ vesting after one years, and the remaining 24 after three years.
The split in vesting underpins the retention of the program. A

Definitions
Working capital	Inventories + accounts receivables - accounts payable
Equity per share	Book value equity / number of shares
Operating revenue	Sales revenue
FRITDA	Operating profit + depreciation fixed assets and intangible assets
FRITA	Operating profit + amortization of intangible assets
FRIT	Operating profit
EBITDA-margin	EBITDA / operating revenue
FRT	Profit before tax
EBT-margin	EBT / operating revenue
Equity ratio	Book value equity / total assets
Liquidity ratio	Current assets / short term debt
Earnings per share	Profit after tax / number of shares
Diluted	Number of shares minus own shares plus shares granted in share option program
Earnings per share, excl. M&A amortization	Profit after tax + amortization of intangible assets from historic M&A / number of shares
Net leverage multiple	Net Interest Bearing Debt including IFRS 16 / 12 months rolling EBITDA
Net change in liquid assets	The total changes in cash flow from operational activities, investment activities and financing activities
Minority interest	The minority part of the net profit /equity in companies where StrongPoint owns between 50,1%-99% of the shares.

24

StrongPoint ASA | Brynsengveien 10, 0667 Oslo | strongpoint.com