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StrongPoint

Earnings Release Feb 28, 2019

3767_rns_2019-02-28_6a0de036-0301-4938-ad8b-45982af2b5c9.pdf

Earnings Release

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4th quarter 2018

CEO Jacob Tveraabak CFO Hilde Horn Gilen | VP Anders Nilsen

February 28, 2018

Agenda

  • Intro
  • Highlights Q4 2018
  • Key figures
  • Q&A

Mission

"Driving retailers productivity by providing innovative integrated technology solutions"

Strong market fundamentals for retail technology

Double opportunity for StrongPoint

    1. E-commerce: most of our clients want to grow within e-commerce
    1. In-store: all of our clients need to improve store operations productivity

Retail Technology is a vital part of the solution for retail companies to grow in e-commerce and to improve in-store productivity

Own Technologies

AMBIENT CHILLED FROZEN
10 13 16
$\overline{2}$ 5 8 11 14 17
3 6 9 12 15 18

Key focus areas

  • 1. Maintain and grow relevance with retailers in Home Markets (Norway, Sweden, Baltics)
  • 2. Significantly grow presence with retailers in Spain to mirror Home Market penetration
  • 3. 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 Q4 2018

Highlights Q4 2018

Solid quarterly financials

Significant customer wins

Delivering on improvement initiatives

Proposing increased dividends

Solid quarterly financials: 19% revenue growth vs. last Q4

Revenue MNOK

Solid quarterly financials: slight growth in EBITDA vs. last Q4

EBITDA MNOK

Solid quarterly financials: 13% growth in recurring revenue

Aftermarket revenue, 12 trailing months* MNOK

* Aftermarket revenue consists of service revenue and license fees, and installation income. 12 trailing month recurring, ending Q4 every year

online retailer Barbora in Lithuania • Live pilot at Axfood Snabbgross for StrongPoint Cub's

• Installation of two Click & Collect pickup stations to

  • "pick by light" solution
  • Contract win of 1.200 CIT cases to one of Europe's leading CIT companies

Delivering on improvement initiatives: optimizing costs and focusing efforts 3

  • Delivering MNOK 30 per year cost savings as of January 2019 Q4, 2018
  • Number of employees reduced by 32, from 570 end Q3 to 538 end Q4
  • Reduced consultancy spend and SG&A
  • Enhancing our sales efforts
    • Growing E-commerce: Push for Cub solutions sales and follow-up of C&C pilots
    • Road runners:
    • Exceptional growth in Cash Management solutions in Spain: doubling unit sales in Q4 vs. prior year
  • Q1, 2019 Initializing "RoadRunner" concept in Germany
  • Partners: converting our own retail office in Russia to partner offices
  • Focus on M&A and Strategic Partnerships
    • Hilde Horn Gilen assuming the position as CFO as per February 18, 2019
    • MOU with Harting Systems for sale and development of self-checkout solutions in Germany
  • Strengthening our organization
    • Erik Vaag hired as SVP People & Organization Development. Starting June 17, 2019
    • Peakon, a world-class Employee Engagement Tool, launched in February to develop and retain human resources

4 Proposing increased dividends for 2018

Key Figures

Revenue Q4

Revenue Q4 2017-2018 MNOK

Revenue Q4 2017-2018 MNOK

Revenue full year 2018

Revenue YTD 2017-2018 MNOK

EBITDA Q4

EBITDA Q4 2017-2018 MNOK

EBITDA Q4 2017-2018 MNOK

EBITDA full year 2018

EBITDA 2017-2018 MNOK

EBITDA 2017-2018 MNOK

Balance Sheet

CashFlow 2018 MNOK

Investor Relations

Main communication channels

  • Reports, webcasts, etc. under "Investor" tab
  • News articles under "News" tab
  • Newsletters and Social Media

Financial calendar 2019

  • Q1 26.04
  • Q2 16.07
  • Q3 31.10

IR-contact: CFO Hilde Horn Gilen

Jacob Tveraabak CEO

Hilde Horn Gilen CFO

Anders Nilsen VP IT, Accounting and Controlling

Thank you!

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