StrongPoint

Earnings Release • Oct 22, 2020

StrongPoint ASA: Solid performance continues with 3rd quarter 2020 results

StrongPoint ASA: Solid performance continues with 3rd quarter 2020 results

22.10.2020 07:00:00 CEST | StrongPoint | Half yearly financial reports and audit

reports / limited reviews

(Oslo, Norway, 22 October 2020) StrongPoint ASA (StrongPoint, OSE: STRONG)

reported revenues of NOK 282.8 million in the third quarter of 2020, up from NOK

237.3 million in the same quarter in 2019. The EBITDA almost doubled to NOK 34.5

million (17.8). StrongPoint's Retail Technology business area continued a strong

performance in the quarter with a revenue growth of 14 %.

"As COVID-19 continues to impact the world economy and society at large, our key

focus is safeguarding our employees, customers and business. World-wide the need

for retail technology to make shopping both more efficient and safer continues

to grow. Financially, the surge in demand for retail technology positively

impacted our third quarter of 2020 and our focus grocery retail market continues

to be a source of immediate and long-term value creation." says Jacob Tveraabak,

Chief Executive Officer of StrongPoint.

StrongPoint reported revenues of NOK 282.8 million (237.3) in the third quarter

of 2020 and an EBITDA of 34.5 million (17.8). Retail Technology delivered a

growth of 14 % compared to same quarter last year, Labels delivered a growth of

3 %, and the volatile Cash Security business grew by 61 %. Reported operating

profit (EBIT) was NOK 22.7 million, up from NOK 5.5 million in the corresponding

quarter in 2019, while the cash flow from operating activities ended at NOK 35.4

million (0.1). The company had disposable funds of NOK 116.5 million at the end

of the quarter.

"Our Norwegian and Swedish Retail Technology operations have shown very strong

performance with around 40 % top-line growth, which is unprecedented. The demand

for our e-commerce logistics solutions continues to be strong and the e-commerce

business constituted 10 % of StrongPoint's total revenue in Q3, up from 5 % as a

whole in 2019. More importantly our solutions are getting attention from some of

the world's premier grocery retail companies," Tveraabak continues.

In a strategy update session in the first quarter of 2020, StrongPoint outlined

the strategy and ambitions for the company towards 2025. As a foundation for

creating shareholder value, the growth strategy is based on profitable and

organic growth, cost control and a solid balance sheet, targeting revenues of

NOK 2.5 billion and EBITDA margins of 13-15% in 2025

"The COVID-19 pandemic has resulted in a substantial increase in demand for

e-commerce solutions. That, combined with the new precautionary in-store safety

measures, point to long-lasting changes in customer behavior. With our

world-class solutions and outstanding customer service, I continue to believe we

have all the reasons to be optimistic about achieving our strategic ambitions,"

Tveraabak concludes.

StrongPoint ASA will present the financial results for the third quarter of 2020

at 08:15 CET Thursday 22 October 2020. The presentation will be streamed live

and can be followed at the company website. The extraordinary general meeting

will be held digitally at 09:00, link to the meeting can be found at

www.strongpoint.com/investor [http://www.strongpoint.com/investor].

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

reconciled to the IFRS financial statements on page 22 in the attached quarterly

report.

DISCLAIMER

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act.

CONTACTS

* Hilde Horn Gilen, CFO StrongPoint ASA, +47 920 60 158,

hilde.gilen@strongpoint.com

ABOUT STRONGPOINT

StrongPoint is driving productivity for European retailers by providing

innovative, integrated technology solutions for multi-channel retailing based on

long-standing relationships with customers and partners. StrongPoint is also a

leader in IBNS solutions for Cash-In-Transit (Cash Security), and Labels for

customers in Norway and Sweden. StrongPoint offers best-in-class service and

consultancy expertise through its team of 521 employees in Norway, Sweden, the

Baltics, France, Belgium, Spain and Russia. StrongPoint is headquartered in

Rælingen, Norway, and listed on the Oslo Stock Exchange (ticker: STRONG).

ATTACHMENTS

* Download announcement as PDF.pdf

[https://kommunikasjon.ntb.no/ir-files/17847450/152/171/Download%20announceme

nt%20as%20PDF.pdf]

* StrongPoint Q3 2020 report screen.pdf

[https://kommunikasjon.ntb.no/ir-files/17847450/152/168/StrongPoint%20Q3%2020

20%20report%20screen.pdf]

* StrongPoint Q3 2020 report print.pdf

[https://kommunikasjon.ntb.no/ir-files/17847450/152/169/StrongPoint%20Q3%2020

20%20report%20print.pdf]

* StrongPoint Q3 2020 presentation.pdf

[https://kommunikasjon.ntb.no/ir-files/17847450/152/170/StrongPoint%20Q3%2020

20%20presentation.pdf]