StrongPoint

Quarterly Report • Feb 24, 2015

PSI Group ASA

4 th Quarter & full year 2014 presentation, February 24th 2015 8:15 am

Jørgen Waaler, CEO

PSI Group mission

"Driving Retailers' productivity by providing innovative integrated Technology Solutions"

• P/L Highlights 4th quarter and full year 2014
• Selected Balance Sheet and Cash Flow items
• Segment P/L & Segment market update
• Latest awarded contracts
• Q & A

Highlights 4th quarter 2014

Group operating revenues: MNOK 252.2 (MNOK 188.5)

An increase of 34 per cent.

Group EBITDA: MNOK 26.8 (MNOK 15.5)

An increase of 73 per cent

	Q4 2014		Q4 2013
MNOK	Revenues	EBITDA	Revenues	EBITDA
PSI Technology	113,3	5,3	97,8	6,3
PSI Retail	96,4	17,1	53,8	8,7
PSI Label	44,1	8,5	36,8	3,6
Group	0,1	$-4,6$	0,1	$-3,3$
Eliminations	$-1,8$	0,5	0,1	0,1
Total	252,2	26,8	188,5	15,5

Cash flow from operations MNOK 62,3 Proposed dividend: NOK 0,35 per share; up 17 per cent

Highlights 2014

Group operating revenues: MNOK 828.5 (MNOK 718.9)

An increase of 15 per cent.

Group EBITDA: MNOK 61.0 (MNOK 54.2)

An increase of 13 per cent

	Year 2014 Year 2013
MNOK	Revenues	EBITDA	Revenues	EBITDA
PSI Technology	445,8	32,0	355,7	24,7
PSI Retail	237,1	25,5	263,0	35,7
PSI Label	168,5	17,1	101,8	4,5
Group	0,5	$-14,1$	0,5	$-11,2$
Eliminations	$-23,4$	0,5	$-2,2$	0,4
Total	828,5	61,0	718,9	54,2

Cash flow from operations MNOK 45,9

Revenues last 12 quarters

Business segments – Geographical markets

		Q4 2014			Q4 2013
MNOK	Norway	Sweden	Other markets	Norway	Sweden	Other markets
PSI Technology	39,9	37,6	35,9	30,8	43,2	23,8
PSI Retail	14,0	46,0	36,4	28,9	24,5	0,4
PSI Label	15,7	27,8	0,6	11,9	24,6	0,3
Group	0,1	0,0	0,0	0,1	0,0	0,0
Eliminations	0,2	$-1,6$	$-0,4$	0,6	$-1,5$	1,0
Total	69,8	109,9	72,5	72,2	90,8	25,5
		Year 2014			Year 2013
			Other			Other
MNOK	Norway	Sweden	markets	Norway	Sweden	markets
PSI Technology	133,6	192,1	120,1	125,1	129,5	101,1
PSI Retail	60,7	118,5	57,9	153,3	108,9	0,7
PSI Label	60,1	105,7	2,6	39,1	62,5	0,3
Group	0,5	0,0	0,0	0,5	0,0	0,0
Eliminations	$-0,8$	$-21,9$	$-0,7$	$-0,2$	$-2,1$	0,1

Business segments - Type of sales

	Q4 2014		Q4 2013
MNOK	New sales	Service	New sales	Service
PSI Technology	71,6	41,8	63,9	33,8
PSI Retail	59,7	36,6	39,7	14,1
PSI Label	44,1	0,0	36,8	0,0
Group	0,1	0,0	0,1	0,0
Eliminations	$-1,8$	0,0	0,1	0,0
Total	173,8	78,4	140,7	47,9
	Year 2014
			Year 2013
MNOK PSI Technology	New sales Service 284,1	161,7	New sales Service 235,3	120,5
PSI Retail	162,7	74,4	195,4	67,6
PSI Label	168,5	0,0	101,8	0,0
Group	0,5	0,0	0,5	0,0
Eliminations	$-23,4$	0,0	$-2,2$	0,0

Group balance sheet - Total assets

KNOK	31.12.2014	31.12.2013 30.09.2014
ASSETS
Intangible assets 1)	86 175	113 747	114 132
Goodwill	141 759	110 779	128 274
Tangible assets	42839	36 445	42 349
Long term investments	481	481	480
Other long term receivables	1850
Deferred tax	39 221	18 0 84	26 668
Non-current assets	312 326	279 535	311 903
Financial investments	27	26	1673
Goods	95 575	85 787	108 641
Accounts receivable	156 903	98 156	154 313
Prepaid expenses	10 323	13899	11 665
Other receivables	16721	8 2 8 5	10 207
Bank deposits	18 973	8 5 5 4	18 635
Current assets	298 522	214 706	305 134
TOTAL ASSETS	610 847	494 241	617 037

• A/R up by MNOK 2.6 compared to Q3
• Inventory down by MNOK 13.1 compared to Q3

Group balance sheet – Total equity & liabilities

• A/P down MNOK

• Total net interest

• Disposable liquidity

• 104 544 own

A/P down MNOK 0.7 compared to Q3
bearing debt MNOK
67.1 – down from 121.2 end Q3
Disposable liquidity
MNOK 53.2
shares, representing 0.2 per cent

Financials – Cash flow statement

KNOK	04 2014	04 2013	Year 2014 Year 2013
Net cash flow from operation	62 318	34 907	45 890	66 159
Net cash flow from investment	$-1600$	$-1538$	$-29529$	16887
Net cash flow from financing	$-61295$	$-34843$	$-6288$	$-78416$
Net change in cash	$-577$	$-1473$	10073	4630
Effect of foreign exchange rate fluctuations on foreign currency
deposits	914	30	345	254
Cash and cash equivalents at the start of the period	18 635	9997	8554	3670
Cash and cash equivalents at the end of the period	18973	8554	18973	8554

• Cash flow from operational activities: MNOK 62.3 (MNOK 34.9)
• Working capital decreased by MNOK 9.8 during 4th quarter
• Working capital increased by MNOK 34.4 during the year

CashGuard

4 th quarter 2014 - highlights 4

• Worlds largest CashGuard installation in South Africa – at President Hyper
• Awarded contract with Statoil Fuel & Retail Sweden
• Lost one tender in SEA
• Pilot installations in KL/Singapore on-going and planned in April

th quarter 2014 & year 2014 - key figures

	Q4		Year
MNOK	2014	2013	2014	2013
Product Sales	39,7	44,8	165,8	133,7
Service	27,7	24,2	109,0	88,2
Revenue	67.4	69,1	274,8	221,8
EBITDA	10.9	12,7	37,0	31,7
EBITDA-margin	16,1 %	18,5%	13,5 %	14,3%
EBT	7,2	10,5	29,3	19,5

CashGuard earns nominations for innovation and security in Spain

• 4 th quarter 2014 - highlights 4

• Existing pilot with Kaiser Tängelman (acquired by Edeka) – uncertain
• First order with a large Italian supermarket chain in cooperation with Toshiba
• Frame agreement with Spar in Belgium signed – all new openings will be equipped with Vensafe

th quarter 2014 and year 2014 - key figures

	Q4	Year 1
MNOK	2014	2014
Product Sales	9,0	29,9
Service	7,7	24,2
Revenue	16,7	54,1
EBITDA	$-2.5$	-3,3
EBITDA-margin	$-14.7%$	$-6.1%$
EBT	-1,9	-3,6
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SQS Security

• 4 th quarter 2014 - highlights 4

• Impairment of MNOK 32.4
• Awarded contract with Belgium's fastest growing CIT company – Cobelguard MNOK 10,4
• Quality issues solved and controlled client confidence improving
• New partner in Russia

th quarter 2014 & year 2014 - key figures

		Q4		Year
MNOK	2014	2013	2014	2013
Product Sales	22,9	19,1	88,4	101,6
Service	6,3	9,6	28,5	32,3
Revenue	29,2	28.7	116,9	133,9
EBITDA	$-3.1$	$-6,4$	$-1,7$	$-7,0$
EBITDA-margin	$-10,8%$	$-22.5%$	$-1,5%$	$-5.2%$
EBT 1	$-37,8$	$-9,8$	$-43,5$	$-18,5$

PSI Retail

4 th quarter 2014 - highlights 4

• Systems integration & service of third party technologies
• Awarded ESL Pricer contract with Meny supermarkets chain – MNOK 100
• We agreed with Pricer regarding representation in the Baltics & Finland
• New Vision revenue 4th quarter MNOK 36.4
• Significant rollout of new Digi scales in Norway

th quarter 2014 & year 2014 - key figures

		Q4		Year
MNOK	2014	2013	2014	2013
Product Sales	59,7	39,7	162,7	195,4
Service	36,6	14,1	74.4	67,6
Revenue	96,4	53,8	237,1	263,0
EBITDA	17,1	8,7	25,5	35,7
EBITDA-margin	17,8 %	16,3%	10,8 %	13,6%
EBT 1	14,8	8,3	20,1	65,3

PSI Labels

4 th quarter 2014 - highlights 4

• 20 % increase in turnover
• Significantly improvement of EBITDA
• Integration of manufacturing facilities in Norway.
• New HP Indigo investment MNOK 8,8 installed at Tangen in February

th quarter 2014 - key figures

		Q4		Year
MNOK	2014	2013	2014	2013
Product Sales	44,1	36,8	168,5	101,8
Revenue	44.1	36,8	168,5	101,8
EBITDA	8,5	3,6	17,1	4,5
EBITDA-margin	19,3%	9,7%	10,2 %	4,4 %
EBT	5,4	0,9	4,8	$-2,4$

PSI Group – The Retail Solutions experts

Top 50 shareholders per December 31st 2014

No.	Name	No. of shares	℅	EVENSEN, TOR COLKA	250 000	0,6 %
	PINNÅS, ERIK (incl. fully owned companies) 1	4 9 3 276	11.1 %	JOHANNESSEN, JAN TOMMY	238 363	0,5%
	2 STRØMSTANGEN AS	3 933 092	8,9 %	UGELSTAD, PER EINAR 29.	213 000	0,5%
	3 SKAGEN VEKST	3796612	8,6%	30 FANA ELEKTRIKEREN AS	212 000	0,5%
	4 GLAAMENE INDUSTRIER AS	3 606 081	8,1%	PRIMA HOLDING AS 31.	200 000	0,5%
	5 HOLMEN SPESIALFOND	2 500 000	5,6%	32 BERNTSEN, HARALD	200 000	0,5%
	6 AVANZA BANK AB	2 008 005	4,5%	ELLINGVÅG, INGVE 33.	200 000	0,5%
	NORDNET BANK AB	1717850	3,9%	34 PARTREDERIET MAST ANS	192750	0,4%
	8 ZETTERBERG, GEORG (incl. fully owned companies)	1 541 304	3,5%	DELTA INVEST AS 35.	182 709	0,4%
	9 SKANDINAVISKA ENSKILDA BANKEN	1 396 941	3,1%	36 GRANBERG, KARL TRYGVE	172 000	0,4%
	10 WAALER, JØRGEN (incl. fully owned companies) 1	1 050 000	2,4%	GAMMELSRØD, GUNNAR 37.	169 658	0,4%
	11 GRESSLIEN, ODD ROAR	1 020 000	2,3%	KAWA INVEST AS 38.	160 000	0,4%
	12 V. EIENDOM AS	900 000	2,0%	HAGEN, JOSTEIN MAGNUS 39.	155 000	0,3%
	13 RING, JAN	705 122	1,6%	40 WEIBULL, JOAQUIM (incl. fully owned companies)	152 000	0,3%
	14 MP PENSJON PK	699 806	1,6%	41 HEIMDAL, MORTEN	150 000	0,3%
	SVENSKA HANDELSBANKEN AB	636 855	1,4 %	42 G-EIENDOM AS	140 627	0,3%
	16 ROMULD, ARVE	600 000	1,4%	BAKKEN, VIDAR 43.	125 079	0,3%
	BUDVILAITIS, EVALDAS (incl. controlled companies) 1	555 709 450 000	1,3%	44 CK HOLDING AS	123 604	0,3%
	18 JACOBSEN, SVEIN (incl. fully owned companies) 1 19 SAXO PRIVATBANK A/S	428 650	1,0 %	45 SHB INVESTERING AS	120 000	0,3%
	20 SWEDBANK AB (PUBL)	344 636	1,0% 0,8%	46 STOCK PROPERTY INVEST AS	106 500	0,2%
21.	NISTAD GRUPPEN AS	338 300	0,8%	PSI GROUP ASA 47	104 544	0,2%
	22 FRANKMO, AGE	320 383	0,7%	48 OPERA FINANS AS	100 000	0,2%
	BJØRNSTAD, DANIEL	282 522	0,6%	49 KVAM, RUNE	100 000	0,2%
	24 ANDERSEN, BØRGE	274 084	0,6 %	50 PETTERSEN, ØYVIND	97 090	0,2%
	25 KONGSRUD, RUNE JACOB	270 250	0,6 %	Sum 50 largest shareholders	38 431 902	86,6%
26.	JOHANSEN, STEIN	258 500	0,6%	Sum 1 319 other shareholders	5944138	13,4%
				Sum all 1.369 shareholders	44.376.040	100 %

Questions?