StrongPoint

Investor Presentation • Apr 25, 2024

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

Finally, although we in the UK landed the very important E-commerce Order Picking slow. Our focus now is to deliver on the important Sainsbury's deal and capitalize on the

As a result of the above, our quarterly revenues are somewhat down compared to last year. Despite having we are again taking further actions to cushion the hit on cost reduction program aimed at saving an additional 20 to the already completed and ongoing short-term cost reduction actions we have announced, we are continuously assessing additional measures to adapt our business.

most important customer win in StrongPoint's history and stand by that. This win is only rivalled by our long-awaited innovative cash management solution announcement, chain in Spain: Mercadona. Both projects are in themselves large and furthermore, these customer platforms create an important and unique starting point for our continued growth in our largest-potential-markets: the UK and Spain. Hence, we are continuing to nurture the organizational needs in these markets to deliver on the demand from these customers and

Following our year-end results, we announced that our the rapid deterioration of the economic conditions for our customers' immediate and short-term investment appetite, in addition to longer-than-expected announcement of major

The development has a two-folded explanation: One, macroeconomic headwinds across our markets, which is exchange rate development. Whereas our operations in the 2024 compared to previous quarters. And two, short-term

Jacob Tveraabak CEO of StrongPoint

stems primarily from our operations in the UK and the Baltics, whilst the decline was exacerbated by poorer results in Spain 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 are crucial for our future success, although they have a negative short-term impact in this quarter.

and poor quarterly results we are embarking on a restructuring Sweden we will now be leading the operations under one SVP, Magnus Rosén, rather than one SVP for each country. Furthermore, we are reorganizing our product specialists, now also making these experts available to customer teams in all StrongPoint countries. This is expected to be an important contribution to the customer service of new and emerging our remaining organization, which in total is expected to bring

Forecasting in an uncertain macro climate and business 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. outlook for our solutions. 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 projects are likely even more important for our growth and

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 providing retail technology in every shopping experience for a smarter and better world.

Stay safe, strong, and passionate!

HIGHLIGHTS

macro environment

Financial performance 1st quarter

-

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

• aspirations, will be presented
• grocery retailers

MNOK
Revenue
	4.0
	-44.2
Disposable funds
		-0.77
Earnings per share, adjusted

StrongPoint Q1 2024
StrongPoint is a grocery-focused retail tech company that serves customers with products
and solutions for in-store and online shopping.
Revenue MNOK	Q1		Year
Scandinavia
ASA/Elim	-	-	-
Total
EBITDA	Q1		Year
MNOK
Scandinavia

MNOK
Scandinavia
ASA/Elim		-32.4
Total
Number of employees

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

to the same quarter last year. The segment Scandinavia last year. Overall, the weak market conditions continue, with generally lower customer spending and longer lead times on investment decisions in all regions. The positive numbers from the Scandinavian segment were driven by the previously planned roll-outs of Pricer ESLs from pre-existing

large rollouts of Pricer ESLs. The cost of goods sold is of the NOK compared USD and EUR, consequently to protect and improve the gross margin on both our own products as well as third party products.

and weakening of the NOK during the period. For the same Tech and Finland, as well as price increases and currency

compared to the year-end 2023. The reduction of net interest debt is attributable to improvements in working capital, repayment of advance tax payments and postponing of discretionary capex projects.

second largest grocery retailer, Sainsbury's, selecting StrongPoint to provide its Order Picking solution to all stores where they conclude in-store manual picking for online grocery orders. Sainsbury's is one of Europe's supermarkets and convenience stores in the UK, employing e-commerce orders via picking in-store and StrongPoint's solution will start to be rolled out in 2024.

Outlook

Based on the uncertainties in the market, we are cautious term. Consequently, adjustments to the organization have been made and additional measures have recently been announced.

Although an improvement in customer spend and release of postponed investments are needed, the customers' interest in our solutions remains, as we are observing an about our market position and are committed to delivering on our strategy.

Post balance sheet events

order to continue the growth investments and deliver on contracts to bigger and more demanding international This will comprise both a revolving credit facility and working removed. Consequently, a covenant waiver will no longer be required.

maintain their already razor-thin margins, as well as ensuring a safe and secure working and shopping environment.

StrongPoint focuses on providing smart retail technologies to grocery retailers to boost

From in-store self-checkouts, electronic shelf labels, cash management solutions to costs and create outstanding customer experiences.

• Labour costs going up
• Discounters becoming mainstream
• a challenge

in-store solutions

e-commerce solutions, especially in the UK

Double

Pricer Electronic Shelf Labels ShopFlow Logistics * Digi Scales and Wrapping Systems

Self-Checkout * Self-Scanning Vensafe Sales Automation *

POS Systems Commerce Management System

Online

Order Picking solution * AutoStore Automated

Last mile

Drive-thru * Pick-up in-store * Home delivery with route optimization

^* Proprietary technologies

OUR MARKETS

Key markets

USA and South Africa

							StrongPoint Q1 2024
			The business segment Scandinavia currently consists of the operating business units in
			Norway and Sweden. The revenue also includes some deliveries to Denmark. Q1		Year
MNOK
- Norway					340.3
- Sweden
Total Revenue
EBT
			The weak market conditions continue, with generally lower customer spending and longer
			lead time on investment decisions. The revenue in the Scandinavian segment, however,
	Q1	Year			Q1	Year
MNOK				MNOK
Products		230.4		Products
Services Revenue		340.3		Services Revenue

The weak market conditions continue, with generally lower customer spending and longer lead time on investment decisions. The revenue in the Scandinavian segment, however, Q1 Year

MNOK
Products		230.4
Services
Revenue		340.3

compared to the same quarter last year, due to a few large driven by previous rollouts of Pricer ESL.

MNOK
Products
Services
Revenue

same quarter last year. This includes lower volumes on reduction on Product revenue. Service revenue increased by and ESL service revenue.

International incl. R&D

allocated to this segment. Q1 Year

MNOK
- Spain
- Rest of Europe
Total Revenue
EBT

respectively. Unlike the Baltics, with its relatively high share of recurring revenue, the other regions are impacted by continued challenging market conditions. This particularly relates

support the e-commerce Order Picking solution and the new cash management solution as we seek to leverage new commercial opportunities from these positive commercial developments.

MNOK
Services
Revenue

deliveries of the previously announced Self-Checkout order from Maxima are expected to start during the summer 2024.

Spain

MNOK
Products
Services			20.0
Revenue

in Spain relates to the Horeca industry, in which customer interest rates. StrongPoint Cash Tech S.L., a joint venture the development of the new cash management solution, for which we have high expectations. The company was capitalized, as opposed to other development costs which

MNOK
Services
Revenue

last year. This was a result of low order reserve and low new order intake. Some of our customers are continuing to postpone the implementation of planned projects. Moreover, position in February 2024, with a clear ambition to increase including other products such as Order Picking, Vensafe and largest grocery retailer, Sainsbury's, had chosen StrongPoint orders being picking in-store. The rollout of the solution will start in 2024. Q1 Year Q1 Year Services 2.4 2.3 4.2

Partners

MNOK
Products
Revenue

Lockers.

MNOK
Products
Services
Revenue

revenue stems from previous projects on Pricer ESL, and SFL licenses.

MNOK
Products	44.3
Services
Revenue	72.7

both Norway and Spain.

MNOK
Products
Services		44.4
Revenue

last year, driven by increased product volume of Vensafe in Norway, whereas self-checkout remained stable.

MNOK
Services
Revenue

compared to same quarter last year. The Shop Fitting As explained in the regional section on the previous page, this segment is impacted by the weak market conditions in

Q1	Year		Q1	Year
		MNOK
		Products
		Services

Other retail technology, mainly POS/ERP and software Q1 Year

		MNOK
		Products
		Services
		Revenue
		Other retail technology, mainly POS/ERP and software
Q1	Year	MNOK
		Products
		Services
		Revenue

to the same quarter last year due an AutoStore project delivered last year.

e-commerce continues to be positive and growing. However, the outlook in other markets looks less certain and more uneven as the current macroeconomic challenges continue to impact customers. Consequently, we are focusing our short and medium-term focus to better serve the highly penetrated e-commerce markets in which we are present, especially the UK and even more so on the back of the Sainsbury's Order Picking contract. The fact that one of Europe's largest grocery retailers has chosen StrongPoint for a business critical solution is a testament to the world-class nature of our e-commerce solutions. Q1 Year Q1 Year Products - - - 2022 2023 2024

revenue (MNOK)

JANUARY

StrongPoint was selected by the UK's second largest grocery retailer Sainsbury's to supply order picking in store.

convenience stores across the UK and employs more

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,

holding of own shares at the end of the fourth quarter term incentive program for management and key employees.

The interest-bearing debt mainly relates to the short-term Spanish subsidiary, booked in long-term and short-term rent obligations are extracted from interest-bearing debt, as these are not interest-bearing. The remaining leasing liabilities relate to service cars and company cars from leasing institutions and are thus included in the interestbearing debt.

the year-end 2023.

			StrongPoint Q1 2024
			per share
2022	27.04.2023
2020			0.70
		Extraordinary
			0.30

KNOK
Long term interest-bearing liabilities
Long term lease liabilities
Short term interest-bearing liabilities
Bank overdraft
Short term lease liabilities	22,372
Cash and cash equivalents
= Net interest-bearing debt

supplementary requirements pursuant to the Norwegian Securities Trading Act. The Board and CEO hereby declare, to the best their knowledge, the report gives a true and fair overview of important events during the accounting period and the impact of

Morthen Johannessen

Chairman Director

Cathrine Laksfoss Director

Audun Nordtveit Director Peter Wirén Director Jacob Tveraabak CEO

KNOK
Operating revenue
Cost of goods sold		242,037
Personnel expenses
Share based compensation
Other operating expenses
Total operating expenses
Depreciation tangible assets
Amortization intangible assets
	3,327
EBT
Taxes		2,407
			-34,200
Earnings per share:
Number of shares outstanding
Av. number of shares - own shares
Av. number of shares diluted- own shares
EPS			-0.77
Diluted EPS	-0.24		-0.72
		0.30	-0.03
			-0.03
Total earnings:
			-34,200
Total earnings
Of which
Majority interest
Minority interest		-

KNOK
ASSETS
Tangible assets
Right-of-use assets
Long term investments
Other long term receivables
Deferred tax
Non-current assets
			230,424
Accounts receivables
Prepaid expenses			22,032
Other receivables
Cash and cash equivalents
Current assets
TOTAL ASSETS
Share capital
Holding of own shares	-207	-320
Other equity
Total equity
Long term interest bearing liabilities
Long term lease liabilities
Other long term liabilities		42
Deferred tax liabilities
Total long term liabilities
Short term interest bearing liabilities
Bank overdraft
Short term lease liabilities		22,372
Accounts payable
Taxes payable
Other short term liabilities
Total short term liabilities

KNOK	Share capital	shares	Other	Translation variances	Share Option	Other	Total	interest	Total
								-
Sale of own shares		74				2,444
Dividend 2022
Share Option Program
Acquisition of Hamari paid in shares		72
									-34,200
Other comprehensive
Sale of own shares
Share Option Program
Other comprehensive
		-207		74,447

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

StrongPoint Q1 2024
KNOK
Net interest	3,327
Tax paid
Ordinary depreciation
		-
Change in inventories
Change in receivables
Change in accounts payable
Change in other accrued items
		-
	-		-
	4	-
	-	-
Dividends received from associated companies	300	-	300
Purchase/sale of own shares
Change in long-term debt
Change in long-term receivables	-	-4,273	-
Change in overdraft
Dividend paid	-	-
	-22,704
Cash and cash equivalents at the start of the period
deposits

1) See note 2

KNOK
Operating revenue
				-7,333
EBT-margin
Balance sheet
Non-current assets				444,004
Current assets
Total assets
Total equity
Total long term liabilities
Total short term liabilities
Working capital
Equity ratio
Liquidity ratio
Net interest-bearing debt
Net leverage multiples	n.m.	n.m.		0.7	0.7	n.m.	0.7
Cash Flow
Net change in liquid assets
Share information
Number of shares
Weighted average shares outstanding
EBT per shares	-0.33		-0.30	-0.02		-0.33
Earnings per share				-0.02
				0.04
Equity per share
Dividend per share					-		-
Employees
Average number of employees
Reduced OPEX
EBT	-	-	-	-	-	-	-

MNOK		Services *	Services *		Services *
Scandinavia
				274.2
Total

				StrongPoint Q1 2024
No.	Name		No. of shares
2
3
4
	NORDNET BANK AB
7	HSBC BANK PLC
	AVANZA BANK AB				2.77
	VERDADERO AS
	EVENSEN, TOR COLKA
	WAALER AS			702,200
	TOHATT AS
	MP PENSJON PK
20
	Sum 20 largest shareholders
	Sum 2 427 other shareholders
	Sum all 2 447 shareholders

Sum 20 largest shareholders
Sum 2 427 other shareholders
Sum all 2 447 shareholders
					Total
	440
	Number of instruments
	-
	-
	Exercised Terminated Vested CB

The fair value of share options granted is estimated at the date of grant using the Black-Scholes-Merton Option Pricing Model. The model uses the following parameters; the exercise price, the life of the option, the current price of the underlying shares, the expected volatility of the share price, the dividends expected on the shares, and the risk-free interest rate for the life of the option.

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

The options will vest over three years, with ¼ vesting after one year, ¼ after two years, and the remaining 2/4 after three years.

option.	The fair value of share options granted is estimated at the date of grant using the Black-Scholes-Merton Option Pricing Model. The model uses the following parameters; the exercise price, the life of the option, the current price of the underlying shares, the expected volatility of the share price, the dividends expected on the shares, and the risk-free interest rate for the life of the
	The vesting of the options is dependent on the participant still being employed at Strongpoint at the time of the vesting.
discretion.
	The options will vest over three years, with ¼ vesting after one year, ¼ after two years, and the remaining 2/4 after three years.
Working capital
Equity per share	Book value equity / number of shares
Operating revenue	Sales revenue
EBT
EBT-margin	EBT / operating revenue
Equity ratio	Book value equity / total assets
Liquidity ratio	Current assets / short term debt
Earnings per share
Diluted	Number of shares minus own shares plus shares granted in share option program
Earnings per share,
Net leverage multiple
Net change in liquid assets
Minority interest

StrongPoint | Q1 2024