StrongPoint

Earnings Release • Feb 11, 2021

S T R A T E G Y U P D A T E S E S S I O N 2 0 2 1

2020 retail megatrends – demand for grocery retail technology skyrocketed

Focus on grocery retail

Retail Technology

Solutions that increase efficiency, productivity 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

Purpose

"Retail technology in every shopping experience for a smarter and better life"

Our WHY statement builds on the following logic:

We are a retail technology company and we believe that retail technology should be integrated into every shopping experience.

In-store and online.

We know that technology is the key to making shops smarter, shopping experiences better and online grocery shopping more efficient.

This will give more time, lower prices, better service, fresher products, and ultimately, we all get a better and smarter life.

The StrongPoint double opportunity

E-COMMERCE DRIVING...

Trends

Opportunity for StrongPoint

1. In-store: Pressure on brick & mortar retailers' margin

Technology solutions to increase in-store efficiency

2. E-commerce: Pressure to develop online presence and keep market share

World-class e-commerce technology for online order picking and last mile solutions

In-store: efficiency solutions

E-commerce: logistics solutions

S t r o n g P o i n t a t a g l a n c e

2 0 2 5 S t r a t e g y

O u t l o o k a n d p r i o r i t i e s

S T R O N G P O I N T A T A G L A N C E

StrongPoint at a glance

Over 450 employees in Norway, Sweden, the Baltics and Spain

Operational revenues of NOK 1.1 bn and an EBITDA of NOK 99 million in 2020.

Headquartered just outside Oslo, Norway

Listed on the Oslo

Stock Exchange

Market cap:

NOK 1.4 billion

Own offices Labels Retail technology

StrongPoint Retail Technology Organization

Sales, Installation, Service, Support

Solutions included in our Retail Technology segments

Segments	Solutions
In-store productivity
Cash management
Check-out efficiency
E-commerce
Other

Attractive cashflow profile with solid base of recurring revenues

Solutions	Typical cash flow profile components
In-store productivity • ESL • ShopFlow logistics • Scales • WFM
E-commerce • Picking solution • Last Mile incl C&C lockers
Check-out efficiency • Self check-out • Vensafe
Cash management

A strong revenue mix

Revenue 2020 100% = MNOK 1,127*

Strong and diverse position in key growth markets

Revenue

2020

2 0 2 5 S T R A T E G Y

StrongPoint's financial ambitions for organic growth

NOK 2.5 bn in 2025

EBITDA 13-15%

"Retail technology in every shopping experience for a smarter and better life"

Our T-shaped strategy to create a NOK 2.5 bn Retail Technology company

Build-up of 2025 revenue ambition (as presented 2020)

Revenue MNOK

Build-up of 2025 revenue ambition (events during 2020)

Revenue MNOK

Build-up of 2025 revenue ambition

Revenue MNOK

*Operational revenue, adjusted for Cash Security and one-off compensation related to relocation of Labels production in Norway 21

E - C O M M E R C E O F F E R I N G

Getting to the addressable market for StrongPoint within grocery E-commerce logistics

Large and growing market for software licenses and grocery lockers within the growing E-commerce logistic market

Note: Includes StrongPoint's target markets for its E-commerce logistics solutions

* Picking in store and dark store. Delivery including home delivery, in-store delivery and drive through Source: IGD, StrongPoint analysis

StrongPoint Picking Solution

Fast to deploy

1

2

3

Low CapEx

Automation is growing and StrongPoint can help deliver on this opportunity

StrongPoint is a natural partner to CFCs and MFCs

StrongPoint natural partner because of access to national grocery players in key markets

Hyper-efficient augmented picking solution is needed to compliment the automated solution

Automation in grocery order fulfilment expected to grow, but vast majority of fulfilment expected to remain non-automated

Why our grocery retail customers choose StrongPoint lockers

Proven track record of over 250 temperature-controlled grocery lockers installations and counting

Types of grocery retailer segment for our solutions

Rapidly growing footprint of our Picking Solution and Click & Collect lockers

Glovo chooses StrongPoint as preferred supplier for its grocery picking solutions

• Provides on-demand groceries via its retail grocery partners which include Walmart, Carrefour and Spar
• Estimated valuation of over USD 1 billion (technology unicorn)
• Present in 22 countries around the world

Courier or store personnel picking with StrongPoint picking solutions

Delivery platform players worldwide providing groceries

C H E C K O U T E F F I C I E N C Y

Checkout technologies

Self-checkouts

• In-house software
• In-house hardware
• AI and computer vision addons for:
• Non-barcoded item recognition
• Age verification
• Fraud detection

Self-scanning

• Integration with SCO enables unified self- shopping experience
• Runs both on dedicated devices and smartphones
• In-house payment station
• Powered by Datema engine

Current technologies being delivered to the market Exploring and doing assessment to add to portfolio

• Checkout could be done on cart itself
• Assessing tech cooperation partners

Smart cart Checkout-free

• No physical checkout at all
• Relies on sensor fusion, computer vision and AI
• Assessing tech cooperation partners

Our Self Checkout Solution

Up to 3X faster than other solutions – minimised staff interventions

Low-touch – AI & ML-powered product recognition

Automated age checks – integration with Vensafe & Yoti

Current deployment and target geographies for our SCO

C O R E M A R K E T S

Importance of core markets

• Proven operational leverage in core markets Norway, Sweden and the Baltics, and emerging in Spain
• Market access platform for global technology providers in selected markets

E N A B L E R S , M & A A N D D I V I D E N D

Profitable growth, cost control and a solid balance sheet

Focus on driving sales, margins, pricing policies and supply chain management

Strong balance sheet end 2020 to be used for continued growth and investments.

Continuous cost improvements Investments in products, competence and marketing

The company is undertaking external stakeholder dialogue and will complete a materiality assessment in 2021 which will work as a basis for the company's sustainability reports.

Contributions from M&A comes in addition to NOK 2.5 bn ambition in 2025

42

Dividend at StrongPoint

Dividend NOK per share

Ambition from Board of Directors

Continue to pay and increase the dividend forward

O U T L O O K & P R I O R I T I E S

Immediate priorities

Summary: Creating a NOK 2.5 billion retail technology company

*Revenue and EBITDA margin from continued operations excluding positive effects from compensation from relocation of Labels production in Norway