3 rd quarter 2019
CEO Jacob Tveraabak | CFO Hilde Horn Gilen
October 31, 2019
Agenda
- Intro
- Highlights Q3 2019
- Other key financial figures
- Q&A
Mission
"Driving retailers productivity by providing innovative integrated technology solutions"
Strong market fundamentals for retail technology – providing a "double opportunity" for StrongPoint
Our Solutions
Key focus areas
- I. Maintain and grow relevance with retailers in current key Markets (Norway, Sweden, Baltics)
- II. Significantly grow presence with retailers in Spain to mirror key Markets' penetration
- III. Grow e-commerce into a substantial portion of StrongPoint's business
… and be the best owner and employer for all businesses under the StrongPoint-umbrella
Highlights Q3 2019
Highlights Q3 2019
Strong performance in Retail Technology, however overall flat performance
Several customer breakthroughs and deliveries
Important milestones for go-to-market model
rd quarter revenue: 2% growth vs. last year
Revenue MNOK
Revenue
MNOK
rd quarter profitability in BAs: Strong performance in Retail Technology
EBITDA MNOK
Note: Quarterly figures in 2019 include positive effect of IFRS 16 of MNOK 3.6 for Retail Technology, MNOK 0.8 for Cash Security, and MNOK 1.2 for Labels
Several customer break-throughs and deliveries 2
- ~80% growth in sale of our e-commerce solutions (yet from a small base) with continued deliveries to retailers in primary markets
- Delivered the first integrated automated age verification based on facial recognition into our Self-Checkout and Vensafe solutions in the Baltics
- Completed the first installations of the new Cash Management solutions: Unico and Compact
3 Important milestones for go-to-market model
- ~50% growth in Cash Management solutions through RoadRunners concept in Spain vs. last year, with continued strong interest in rental solutions (same level as Q2)
- Partner agreement with Exclusivas Iglesias for distribution of StrongPoint's solutions in Portugal
Direction and initiatives forward
Focus! On Retail Technology; and continued utilization of Partners where that makes sense
- Restructuring our internal partner setup; handling by operational BUs
- Adjusting our go-to market approach in Germany
- I. Maintain and grow relevance with retailers in key markets (Norway, Sweden, Baltics):
- Strong expressed interest from customers in Reflexis, WFM & Task management system
- Continuous exploration of 3rd party technology solutions to introduce to our key markets
- II. Significantly grow presence with retailers in Spain:
- Continuous recruitment to build organization and presence, primarily in Sales and Marketing
- Operationalizing the improved value proposition for RoadRunners: Unico and Compact added to our Cash Management portfolio
- Building on e-commerce momentum in Spain: significant interest in picking and delivery solutions
- III. Grow e-commerce into a substantial portion of StrongPoint's business:
- Investments in E-commerce Logistics Suite ("E20") to improve scalability of solution sales
- Expansion of E-commerce solutions portfolio in the making
- Recruiting Sales personnel for international growth
Other key financial figures
Earnings per share (EPS)
EPS per quarter EPS rolling 12 month
* EPS adjusted for amortisation of intangible assets, mainly from M&A
Cash Flow effects in 2019
Cash MNOK
- Working Capital development mainly related to seasonal changes in receivables and prepaid expenses
- Capex and change in debt is influenced by Rental Solution Cash Management Spain
Net leverage of 1.24x rolling 12 months EBITDA
* Net Interest Bearing Debt / Rolling 12 EBITDA ** Including IFRS 16 balance effect
Investor Relations – ambition to increase share liquidity
- Commissioned Research ABGSC
- Meetings held with current and potential investors
- Meetings held with Corporate Finance players
- Increased coverage in media
- Web-page, Social Media, Press Release
- Market Making agreement with Sparebank 1 Markets
Investor Relations
Financial calendar 2020
- Q4 2019 12.02 (Strategy Update Session)
- Q1 2020 29.04 (General Assembly)
- Q2 2020 14.07
- Q3 2020 22.10
IR-contact:
CFO Hilde Horn Gilen [email protected] +47 920 60 158
Jacob Tveraabak CEO
Hilde Horn Gilen CFO
Thank you!