Q3 2022
CEO Jacob Tveraabak CFO Hilde Horn Gilen October 26, 2022
Agenda
- Introduction to StrongPoint
- Highlights Q3 2022
- Other key financial figures
The StrongPoint double opportunity
E-COMMERCE, INFLATION, WAGE INCREASES
Retailers' needs
1. In-store: Pressure on brick & mortar retailers' margin
Opportunity for StrongPoint
Technology solutions in-store to improve retailers' productivity and hence uphold margins
2. E-commerce: Pressure to develop online presence
World-class e-commerce solutions for picking and delivery
Focus on grocery retail
Retail
Solutions that increase efficiency and improve the shopping experience in-store and online
We have a focus on the resilient grocery retail sector with spillover effects to other retail verticals
The StrongPoint sandwich
Sauce Tomorrow's solutions
Toppings E-commerce solutions
Bread & Butter In-store solutions
Reiterating StrongPoint's 2025 financial ambitions
NOK 2.5 bn in 2025
EBITDA 13-15%
Highlights Q3 2022
Highlights Q3 2022
Strong growth despite macro challenges
Continued customer success in priority areas
3
Further progress on 2025 strategic ambitions
Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22
3rd quarter revenue
Revenue
3rd quarter EBITDA 1
Revenue share per solutions' segments 1
Relative share of revenue per segment Percent
Segments
Note: Roundings may make total different than 100%
Continued customer success in priority areas
- StrongPoint ALS in UK signed two contracts with leading grocery retailers.
- Contract with leading Do-It-Yourself retail chain in the Baltics for software delivery project.
- All time high installation level of Electronic Shelf Labels (ESL) in a single quarter in Sweden.
Further progress on 2025 strategic ambitions
- Well aligned with the 2025 revenue growth path. Grocery retail proves to be noncyclical and resilient.
- ALS well integrated, enabling sales opportunities from the combined solutions.
- Long-term positive fundamentals and outlook for e-groceries, although short-term turmoil, hence adjusting investments from e-commerce to in-store whilst enacting strong cost prudence.
Importance of ALS acquisition to StrongPoint
- Acquisition of ALS as a strategically important step to gain foothold for additional growth in the UK & Ireland
- Financially comes across as a very sound and highly accretive acquisition
- Added potential from 'exporting' their 'swivel' checkout – enabling a manned check-out to become a selfservice solution – and checkout refurbishment offering
World's first AutoStore installation with frozen zone
- AutoStore's first grocery-focused partner.
- Installing world's first multitemperature grid with ambient, chilled and now frozen food automation.
- Successful execution of e-commerce strategy and partnership with AutoStore.
Other key financial figures
Air Link Group Ltd – a very attractive acquisition
- Revenue acc. Q3: 141 MNOK
- EBT acc. Q3: 20 MNOK
- Final purchase price 116 MNOK
- Cash paid at closing: 89 MNOK
- Shares in StrongPoint 23 MNOK
- Adj. amount to be paid 4 MNOK
• EV/R12 EBITDA pr Q3: 2.5
Revenue and EBITDA growth driven by organic and inorganic performance MNOK
Revenue EBITDA
Fully explainable gross margin changes and deliberate e-commerce investment held back EBITDA in Q3
Earnings per share from continued operations
EPS per quarter NOK per share
EPS rolling 12 month NOK per share
* EPS adjusted for amortisation of intangible assets, mainly from historic M&A
Cash Flow changes first 3 quarters 2022
MNOK
Renewal of lease agreement for ALS UK increased the net leverage to 1.08* in Q3 2022
MNOK
Financial calendar 2023
| • |
February 13: |
Q4 2022
Strategy Update Session |
| • |
March 31: |
Annual Report |
| • |
April 27: |
Q1 2023
General Meeting 2023 |
| • |
July 14: |
Q2 2023 |
| • |
October 23: |
Q3 2023 |
New time: Launch of documents: 0800 CET Presentation/Webcast: 0830 CET
IR-contact: CFO Hilde Horn Gilen [email protected]
+47 920 60 158
#STRONG