AI Terminal
StrongPoint
Investor Presentation • Mar 21, 2025
3767_10-k_2025-03-21_86dce858-925f-4164-a7ea-1cb989d6df22.pdf
Investor Presentation
Open in ViewerOpens in native device viewer
2024
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
| Scandinavia |
|---|
| Baltics & Finland |
| Spain |
| UK & Ireland |
| Rest Of Europe |
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Key figures 2022-2024
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Operating revenue | 1 309 | 1 342 | 1 372 | MNOK |
| Annual growth | -2 | -2 | 40 | % |
| Recurring revenue 1 | 358 | 312 | 292 | MNOK |
| Annual growth recurring revenue | 15 | 7 | -3 | % |
| EBITDA | 2 | -1 | 76 | MNOK |
| EBT | -47 | -45 | 38 | MNOK |
| Total assets | 1,028 | 1 014 | 986 | MNOK |
| Equity | 465 | 475 | 507 | MNOK |
| Equity ratio 2 | 45.3 | 46.8 | 51.5 | % |
| Current ratio 3 | 1.09 | 1.27 | 1.53 | |
| Earnings per share 4 | -0.72 | -0.77 | 0.66 | NOK |
| Number of shares (average for year) | 44 631 | 44 398 | 44 260 | T |
| Number of shares 31.12 | 44 888 | 44 888 | 44 888 | T |
| Share price (Oslo Børs) 31.12 | 11.15 | 13.35 | 22.00 | NOK |
| Number of employees 31.12 | 497 | 524 | 511 | |
2) Equity ratio Equity 31 December x 100 Total assets 31 December
3) Current ratio Current assets 31 December Current liabilities 31 December 4) Earnings per share Annual profit after tax Average no. of shares
1) 12 months recurring revenue includes service agreements, licenses and rentals.
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
IMPACT ON GROCERY RETAILERS
Driving efficiency savings and boosting margins
IMPACT ON END CUSTOMERS
Improving both the in-store and online experience for shoppers
OUR PURPOSE RETAIL TECHNOLOGY IN EVERY SHOPPING EXPERIENCE FOR A SMARTER AND BETTER LIFE
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
CEO STATEMENT
2024 has been a challenging year for StrongPoint. While we have seen improvements throughout the year, the overall performance did not meet our expectations.
Scandinavia and the Baltics have shown encouraging trends, however performance in the UK and Spain has been disappointing. Addressing these challenges remains a top priority, and we have already implemented measures to improve efficiency, reduce costs, and ensure that our investments are targeted toward sustainable growth. This includes the rightsizing of our organization in 2023, which has had a noticeable impact in 2024.
At the start of 2020, we unveiled StrongPoint's 2025
Strategy. We set our financial ambitions at NOK 2.5 billion and an EBITDA margin of 13–15%. Last year, I pointed out the fact that achieving such
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Despite these challenges, 2024 has also been a year of significant progress and strategic developments. We began the year with a landmark achievement when Sainsbury's, the UK's second-largest grocery retailer, selected StrongPoint's Order Picking solution. This partnership reinforces our commitment to strengthening our presence in the UK, a market where we are still in the very early stages of building the same depth as we have in Norway, Sweden, and the Baltics, where our top ten customers on average utilize between four and five of our solutions. The potential in the UK is significant, and realising our full market opportunity will require time and sustained effort. Customer intimacy is crucial, and as a new player in the market, building these necessary customer relationships will take time.
In Spain, we announced our collaboration with the largest grocery retailer in Iberia to develop CashGuard Connect, a groundbreaking cash management solution for large cash volumes. While the new solution is expected to generate substantial efficiency savings for retailers, the complexity of product development and challenges with our joint venture partner have led to prolonged timelines. As a result, we are continuously assessing our resource allocations to this initiative while continuing to make progress.
At the end of the year, we announced an extensive partnership with VusionGroup, a global retail technology company that provides digital solutions to many of the world's largest retailers, including Walmart and Carrefour, and holds approximately 50% of the global market share in electronic shelf labels.
This partnership is a key milestone in our strategy, consisting of two critical components. First, as an Independent Software Vendor', StrongPoint's Order Picking solution will be integrated into VusionGroup's Retail IoT Cloud platform, allowing us to expand into new markets worldwide through co-selling opportunities. Second, as a 'Value Added Reseller' in our nine geographic markets, StrongPoint will sell, install, service, and support VusionGroup's full range of solutions, including electronic shelf labels. While the 'Independent Software Vendor' aspect presents a significant long-term opportunity for global expansion, the 'Value Added Reseller' partnership strengthens our short and medium-term growth potential in our core markets.
None of these developments would be possible without our employees, who are the foundation of StrongPoint's success. Their dedication, expertise, and commitment to innovation continue to drive our progress. This year, our Employer Net Promoter Score reached 30, seven points higher than the average for similar technology companies, an encouraging sign of the strong culture we are building.
Attracting and retaining top talent remains a priority. In the UK, we are actively growing our organization to prepare for future expansion with key strategic hires. Meanwhile, in Scandinavia, we continue to evolve our team to maintain and grow our market position.
As we look ahead, we remain focused on delivering financial improvements and positioning StrongPoint for longterm success. In April 2024, we revised our financial estimates for 2025, forecasting revenues of NOK 1.5-1.8 billion with an EBITDA margin of 4-6%.
Given the difficulties of 2024, the previously stated forecast for 2025 seems challenging, though not unattainable. While we will work hard to achieve the previously communicated targets, they remain well below our ultimate aspirations. Longer term, we have stated that StrongPoint should operate with an EBITDA margin in excess of 10% alongside healthy revenue growth. Achieving this will require customer focus, continuous operational improvements, expansion in key markets, and an increasing focus on recurring revenue streams.
While the financial results for 2024 were far from satisfactory, the year also marked substantial progress and strategic growth. We faced challenges, but the improvements we have made and the opportunities ahead are encouraging.
Our success is a testament to the dedication and talent of the StrongPoint team. Their hard work has been instrumental in this year's achievements, and I want to extend my heartfelt thanks to them, as well as to our customers and shareholders for their continued support.
Stay safe and strong.
Jacob Tveraabak CEO
Sainsbury's, the UK's second-largest grocery retailer, selected StrongPoint's Order Picking solution.
In Spain, we announced our collaboration with the largest grocery retailer in Iberia to develop CashGuard Connect, a groundbreaking cash management solution for large cash volumes.
We announced an extensive partnership with VusionGroup, a global retail technology company that provides digital solutions to many of the world's largest retailers.
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
The second half of the year brought further encouraging progress with two consecutive quarters of revenue growth, albeit at modest levels. While challenges persist and our financial results are far away from our ambitions, the trajectory is positive and we ended the year on an even stronger note with the announcement of our strategic partnership with VusionGroup, a collaboration that expands the reach of our scalable e-commerce solutions into new markets.
The weak performance in 2024 is primarily due to the challenging macro environment which began to deteriorate in the second half of 2023. Higher interest rates and weakening currencies in the Nordics required retailers to meet higher return targets for their investments while also facing rising costs for new products. Understandably, this resulted in delayed and reduced new product investments by our customers. The decline is visible in the product sales across most of our product segments, as well as in the shop fitting segment in the UK. We have taken the required financial and organizational measures to navigate through these challenging times, and the Board would like to extend our sincere thanks to the entire StrongPoint team that has made this possible. The financial performance in the second half of the year is a testament to the positive impact of these efforts.
While the new product sales have been challenging over the past 1.5 years, our efforts to build a more resilient and predictable revenue base are delivering tangible results. Recurring revenue grew by 15% over the course of the year (rolling 12 months), mainly driven by the increasing adoption of our e-commerce solutions.
A deeper analysis of our recurring revenue streams shows steady and sustained growth in service and support across most product areas. This trend reflects a growing customer reliance on our solutions, reinforcing a positive longterm trajectory. When combined with the continued expansion of e-commerce related services, these developments further strengthen our revenue stability and predictability, positioning us for continued success in an evolving market.
While we remain disciplined in our approach to growth, these developments signal that StrongPoint's solutions are gaining traction among leading retailers who recognize the necessity of hyper-efficiency, instore and online, in an evolving marketplace where costs are growing almost everywhere.
As we look ahead, we expect 2025 to bring continued macroeconomic and geopolitical uncertainty and unpredictability, but we remain steadfast in our belief that StrongPoint is now better positioned than ever to capitalize on the significant opportunities within the retail technology market in the years to come. The investments we have made in technology, partnerships and market expansion are already beginning to yield results, and we remain focused on executing our long-term vision with discipline and determination across our entire organization.
With a clear strategy, a strong foundation, and a dedicated team with a passion for customer service, we enter the next phase of our journey with confidence and optimism. The priority now is to build on our regained momentum, accelerate growth and strengthen profitability. We are all encouraged and motivated by the substantial opportunities that lie ahead of us!
Morthen Johannessen Chairman
CHAIR'S PERSPECTIVE
As 2024 unfolded, StrongPoint remained focused on regaining momentum and reinforcing its position as a leading player in retail technology after a challenging 2023. The first half of the year marked a significant milestone with our breakthrough in the UK, with Sainsbury's selecting and rolling out our Order Picking solution for their e-commerce orders.
StrongPoint's solutions are gaining traction among leading retailers who recognize the necessity of hyper-efficiency, instore and online, in an evolving marketplace where costs are growing almost everywhere.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
WE LOVE RETAIL
As experts, we always look to improve and innovate. We come up with new technological solutions that are tailor-made for our retail customers.
WE WIN THE CUSTOMER EVERY SINGLE DAY
It's not just about winning the contract; it's about continuously developing the relationship and never taking the customer for granted.
WE MAKE A DIFFERENCE
Share your learnings, knowledge, wins and losses. Be the best you can be, and help others to achieve the same.
WE ARE OBSESSED WITH EFFICIENCY
We don't waste time or resources, so every second counts in our pursuit of perfection.
WE STAY STRONG, SAFE AND PASSIONATE
We take care of each other, and in challenging times and crises we stand together.
OUR VALUES
Values are what WE choose to prioritize. They encompass the behaviors and skills that WE cherish. They form the foundation of how WE want the work environment to be at StrongPoint. At StrongPoint, WE have chosen five values that demonstrate the behaviors and skills WE want all our colleagues to embody.
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
TECHNOLOGY RESPONDING TO GROCERY RETAIL MEGATRENDS
Solutions must be less labor-dependent, often
All market players must reduce costs to remain
There is a constant demand customer experience, both
STRONGPOINT DOUBLE OPPORTUNITY:
Technology solutions solving
1) in-store and 2) online challenges
OPPORTUNITY 1: IN-STORE SOLUTIONS
The pressure on brick-and-mortar retailers' margins means that grocery retailers must find ways to increase in-store productivity to boost profitability.
OPPORTUNITY 2: E-COMMERCE SOLUTIONS
Grocery retailers with e-commerce services require highly efficient order fulfillment solutions to keep costs down.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
T
FOCUS ON GROCERY RETAIL
StrongPoint primarily serves the grocery retail market. Unlike the retail market in general, grocery retail is non-cyclical and highly resilient. Even in times of market turmoil and economic uncertainty, consumers will always need to shop for groceries. Beyond grocery retail, StrongPoint has opportunities to extend its solutions to other market segments, particularly DIY stores, pharmacies and convenience retailers.
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
OUR GROCERY RETAIL SOLUTION SUITE
* Fully StrongPoint proprietary solutions
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
JANUARY Sainsbury's selects StrongPoint's grocery Order Picking solution
2024 HIGHLIGHTS
StrongPoint was selected by the UK's second largest grocery retailer Sainsbury's to supply order picking technology for online grocery orders fulfilled manually in store. Sainsbury's has over 1,400 supermarkets and convenience stores across the UK and employs more than 152,000 people.
The fact that we now serve the UK's second largest grocery retailer is a perfect testament to the quality of our solution.
Jacob Tveraabak CEO of StrongPoint
APRIL SPAIN'S LARGEST GROCERY RETAILER WITH STRONGPOINT'S NEW CASH MANAGEMENT SOLUTION
StrongPoint introduced a new solution, 'CashGuard Connect', the world's first fully automated end-to-end cash management solution eliminating the need for store staff to handle cash. The new solution is operational and being tested in a store check-out of the largest grocery retailer in Iberia.
MAY
GROCERY RETAILER ALPHAMEGA ORDERS ELECTRONIC SHELF LABELS
StrongPoint signed an agreement with the Cyprus-based grocery retailer Alphamega to install Electronic Shelf Labels in all its stores. Alphamega has previously purchased and integrated StrongPoint's Order Picking, Grocery Lockers and Delivery Manager software to manage e-commerce orders. Electronic Shelf Labels are Alphamega's fourth solution purchased from StrongPoint.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
JUNE LEADING US GROCERY RETAILER EXPANDS STRONGPOINT LOCKER INSTALLATIONS
This new order follows the 20 temperature-controlled grocery lockers ordered by the same grocery retailer in December 2022. The new order is for 35 grocery locker installations for its 'proof of economy'. If deemed successful, the next phase could involve a further roll-out.
SEPTEMBER
World's first AutoStore™ Multi-Temperature SolutionTM for Haugaland Storhusholdning
StrongPoint has installed the world's first AutoStoreTM Multi-Temperature SolutionTM with a frozen zone for Haugaland Storhusholdning which was officially opened in September. In the world of grocery cube storage automation, this is a significant breakthrough. That StrongPoint was chosen for this major project is a testament to its unique expertise in the grocery sector, which is far more complex than other retail segments.
What's unique about this grid, is that it is divided into 3 sections. We have one for frozen, one for ambient and one for chilled. Automating with AutoStore and StrongPoint gives us the opportunity to grow our revenue by 3 times.
Our collaboration with StrongPoint has been excellent. Especially with our Project Manager and their support team. The support has been ready and available whenever needed, and I think that is important to create a successful partnership.
Thorstein Kirkeleit, Business Development Manager Haugaland Storhusholdning
SEPTEMBER
QUICK COMMERCE DELIVEREASY PICKS STRONGPOINT'S ORDER PICKING SOLUTION
Delivereasy, the leading Quick Commerce technology company in New Zealand, chose StrongPoint's Order Picking solution to fulfil its grocery orders.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
NOVEMBER
LEADING BALTIC-BASED GROCERY RETAILER RIMI ORDERS EUR 2.3 MILLION OF STRONGPOINT SELF-CHECKOUTS
Rimi has been using StrongPoint Self-Checkouts for over five years, showcasing the solution's proven reliability and customer convenience. With this new order, Rimi is further scaling and rolling out StrongPoint Self-Checkouts. This new order includes self-checkouts with cashhandling capabilities, as cash management remains an important aspect of the checkout process in the region.
DECEMBER
Partnership with VusionGroup
Through this partnership, VusionGroup will integrate StrongPoint's end-to-end e-commerce platform into its advanced Retail IoT Cloud platform, making it available to retailers internationally. VusionGroup serves over 350 retailers in more than 60 countries through 25 offices worldwide, including partnerships with leading retailers such as Walmart, Carrefour, Edeka, and MediaMarkt-Saturn. The company currently operates over 450 million smart electronic shelf labels in more than 45,000 stores, accounting for approximately 50% of the global market share.
Enabling physical retailers to increase their e-commerce performance through store digitalization is one of the key pillars of our strategy, and this partnership represents a wonderful opportunity to accelerate that. By integrating StrongPoint's e-commerce technology into our platform, we are not only enhancing our offering but also enabling our customers to unlock new levels of efficiency, profitability and growth potential in a rapidly evolving retail landscape
Sébastien Fourcy SEVP EMEA VusionGroup
DECEMBER
LEADING BALTIC-BASED GROCERY RETAILER IKI ORDERS EUR 1.5 MILLION OF SELF-CHECKOUTS FROM STRONGPOINT
One of the largest grocery retailers in Lithuania, IKI (part of REWE Group), placed an order with StrongPoint to supply and install self-checkout solutions in its stores.
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
PRODUCT SEGMENTS
StrongPoint is organized into six product segments:
IN -STORE PRODUCTIVITY
Electronic Shelf Labels, Scales and Wrapping Systems and ShopFlow Logistics.
CHECK OUT EFFICIENCY
Self-Checkout, Vensafe, Self Scanning and POS systems.
E -COMMERCE LOGISTICS
Order Picking, Automated Fulfillment, Warehouse Management, Home Delivery, Various Click & Collect Pickup Solutions.
OTHER RETAIL TECHNOLOGY
StrongPoint implements, personalises and maintains an enterprise resource management solution.
SHOP FITTING
StrongPoint equips retail and service shops with fixtures, fittings, and necessary equipment as well as refurbishing checkouts.
PAYMENT SOLUTIONS
Multiple CashGuard models: Core, Premium, Unico and Compact.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
E-Commerce Logistics
E-Commerce Fulfillment
Manual Order Picking
StrongPoint's Order Picking Solution is designed to maximize efficiency and accuracy in grocery e-commerce fulfillment. Our market-leading technology enables faster, more accurate picking processes, significantly reducing labor costs while improving order accuracy. Whether used in-store, in a dark store, or integrated with automated micro-fulfillment, our solution ensures world-class performance in online grocery fulfillment.
Pick-by-light with Electronic Shelf Labels
To further boost e-commerce fulfillment efficiency, StrongPoint integrates with multiple Electronic Shelf Label (ESL) vendors to enable Pick-by-light technology. This advanced solution accelerates the picking process by flashing the location of items in real time, reducing errors and improving speed. By leveraging Pick-bylight, retailers can streamline in-store and dark-store picking operations, ensuring a faster, more cost-effective fulfillment process.
Automated Fulfillment
StrongPoint's Automated Fulfillment Solution enables grocery retailers to achieve worldclass efficiency. This is further enhanced by integration with StrongPoint's Automated Fulfillment software, purpose-built for AutoStore solutions, and StrongPoint's manual order picking for situations where retailers automate certain items while keeping others for manual picking. This combination optimizes space, reduces fulfillment times, and lowers operational costs. StrongPoint has also delivered the world's first multi-temperature AutoStore grid with frozen food capabilities, enabling efficient storage and processing of frozen, chilled, and ambient products within a compact, automated system. StrongPoint partners with AutoStore to provide this solution. Taking a consultative approach, we work closely with retailers to solve their challenges while being technology-agnostic, allowing us to offer best-fit, world-class solutions tailored to each retailer's needs.
StrongPoint offers a comprehensive SaaS platform designed to support retailers through the entire process of fulfilling and delivering e-commerce orders. Specializing in a store-centric approach, StrongPoint helps retailers optimize their store networks with efficient picking, manual and automated, as well as multiple last mile solutions.
MNOK
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Last Mile Solutions
Grocery Lockers
StrongPoint's Grocery Lockers Solution provides a convenient and cost-effective way for customers to pick up online orders while reducing last-mile delivery costs. By automating the collection process and turning stores into distribution points, retailers can streamline operations and enhance convenience. These Click & Collect Lockers can be mobile or stationary and support three temperature zones: ambient, chilled, and frozen. StrongPoint partners with leading retailers to deliver this pickup solution.
In-Store Pickup
StrongPoint's In-Store Pickup Solution automates pickup operations for a fast and efficient customer experience. The system includes two-way communication, allowing shoppers to notify the store when they are en route so their order is ready on arrival. By streamlining in-store fulfillment, retailers can improve efficiency and service. StrongPoint partners with grocery retailers to implement this system.
Drive-Thru
StrongPoint's Drive-Thru Solution provides a fully contactless and automated way for customers to pick up groceries without leaving their vehicle. AI-powered image recognition detects when a customer enters the pickup zone, instantly notifying store staff. This ensures a smooth and efficient process. StrongPoint partners with grocery retailers to deliver this technology.
StrongPoint's Home Delivery Solution optimizes grocery deliveries by managing time slots, vehicles, and pickup points while ensuring efficient routes. The system includes two-way communication, allowing real-time cold chain management to maintain product freshness.
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Market Today
The UK, European, and North American online grocery markets in 2024 have shown steady growth. While France, the Netherlands, and Scandinavia report higher online grocery penetration, Germany, Spain, and Italy remain at lower levels in Europe.
Consumers continue to balance the convenience of digital shopping with the tactile experience of physical stores. Growth has been driven by demand for time-saving solutions, improved technology, and expanded delivery options such as rapid delivery and click-and-collect.
AI-driven personalization is allowing retailers to tailor promotions and refine the shopping experience. Hybrid retail models, blending online and offline shopping, are gaining traction, with physical stores serving as fulfillment hubs. Sustainability remains a key consumer priority, driving initiatives such as eco-friendly packaging and optimized delivery routes to reduce emissions.
However, the sector faces substantial challenges. Rising operational costs, including energy prices and labor wages, are putting pressure on profitability. Competition from discounters, who have largely avoided online grocery, continues to intensify. Customer retention is also a growing concern, as fluctuating consumer loyalty requires grocers to continuously enhance their digital offerings.
Additionally, infrastructure strain remains a significant issue, as many logistics networks were not designed for high-volume e-commerce. Because of these hurdles, investment in technology, efficiency, and customer experience remains critical for maintaining competitiveness.
Future Outlook
The grocery industry is expected to continue evolving as retailers integrate AI, machine learning, and automation to improve efficiency and customer experience. However, the impact of these technologies are still being evaluated, and implementation is progressing cautiously.
While automation is streamlining fulfillment and logistics, retailers are focusing on where these solutions provide clear value. Collaborative robots (cobots) are being deployed alongside human employees, but large-scale adoption remains limited.
AI is increasingly used for demand forecasting, inventory management, and personalized promotions, though widespread adoption is still in its early stages. Seamless integration between online platforms, in-store systems, and fulfillment centers remains a priority, but technical and logistical challenges persist in creating a fully unified omnichannel experience.
Rising labor costs and workforce shortages make automation an attractive option, though its role in grocery fulfillment is still being refined. Small, dense, high throughput retail automation solutions (what some call micro-fulfillment centers) and autonomous delivery solutions are expanding, but broad implementation is not yet universal.
Rapid delivery is gaining traction, making it essential for retailers to process and hand over orders in a simple, efficient manner. Quick commerce partnerships are expanding to meet consumer demand for speed, and AI-powered chatbots and voice assistants are being introduced to enhance the shopping experience, though their long-term impact on consumer behavior remains uncertain.
As retailers navigate 2025 and beyond, the adoption of new technologies will be driven by proven value and cost-effectiveness.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
In-store Productivity
Electronic Shelf Labels
Electronic shelf labels (ESLs) greatly enhance in-store efficiency by automating price updates, eliminating manual labor, and freeing up staff for other tasks. Real-time, accurate pricing reduces discrepancies and improves customer satisfaction. In an environment of rising labor costs and intense price competition, ESLs offer a competitive edge by streamlining operations and optimizing pricing strategies.
Scales and wrapping systems
Our partner Digi Teraoka provides scales and wrapping solutions for accurate labeling and efficient in-store packaging. Its AI-powered self-service scales streamline checkout, improve product identification, and eliminate
pick-list friction, with StrongPoint deploying them in multiple stores across Norway. Digi also focuses on sustainability, developing a dispenser to address stolen plastic bags and promoting its "Bring Your Own Container" initiative to encourage reusable packaging.
ShopFlow Logistics
ShopFlow Logistics is a solution built and designed by StrongPoint as a cloudbased mobile logistics system for managing routines such as receiving goods, inventory, balance adjustments, label printing, and waste management on both Android and iOS. The solution empowers the workforce, enhancing efficiency on the shop floor.
MNOK
31% RELATIVE SHARE OF TOTAL REVENUE 2024
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Market Today
The current retail environment is placing significant pressure on margins. Rising utility costs, increased theft, higher labor expenses, and intense price competition are forcing retailers to improve in-store productivity. Theft, in particular, is becoming a major concern, directly impacting retailers' bottom lines and making it an issue they can no longer ignore. This is where in-store technology can help. For example, weighing scales use AI to recognize products placed on the scale, potentially reducing both customer mistakes and theft.
Beyond theft, the rising cost of labor is pushing retailers to enhance efficiency. Electronic Shelf Labels (ESLs) can improve in-store productivity while helping retailers meet growing customer expectations. StrongPoint now offers ESLs along with additional solutions designed to enhance productivity in stores.
Future Outlook
Solutions that enhance in-store productivity will continue to play a crucial role for retailers in the future. Rising energy costs, higher salaries, and increasing levels of theft are all putting significant pressure on retailers' margins, making best-in-class in-store productivity solutions more important than ever. Leveraging AIdriven tools, such as product recognition on self-service scales, is one way retailers can address the growing issue of theft across their stores.
Equipping in-store personnel with the best possible tools to meet these challenges will also be essential. ShopFlow Logistics, for example, can help employees on the shop floor by streamlining tasks, allowing them to spend more time assisting customers, ultimately increasing sales and boosting efficiency. By implementing and embracing in-store productivity solutions, retailers can thrive in an evolving retail landscape, creating a customer-centric and engaging work environment.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Payment Solutions
CashGuard
StrongPoint's CashGuard solutions streamline in-store cash handling, reduce costs, and enhance security for retailers. Manual cash management can lead to errors, shrinkage, theft, and slower transactions, while automation secures cash and improves efficiency. CashGuard offers four options: Core, Premium, Unico, and Compact, with a fifth, Connect, in development. Designed to fit various store formats, it reduces cashrelated costs by 30% and handling time by up to 50%. By minimizing theft risks, it creates a safer environment and lowers insurance costs. With continuous cash counting and optimization, retailers can focus on customers while maintaining better control over cash flow
Market Today
In 2024, cash remains a widely used payment method across many regions, high lighting the ongoing need for efficient and secure cash management. Despite the rise of digital payment solutions, many retailers still rely on manual cash handling, which poses significant challenges related to labor costs, theft prevention, and customer service efficiency. Increasing incidents of theft and a growing focus on operational optimization have further emphasized the need for automated, end-to-end solutions. StrongPoint's CashGuard system addresses these challenges by securing and automating the cash handling process reducing errors, streamlining operations, and enhancing the customer experience.
While supermarkets remain a primary market, CashGuard also serves pharmacies, tobacco stores, bakeries, and the HoReCa sector, all of which require high levels of
security and reliability. The continued success of CashGuard Core demonstrates the strong demand for solutions that integrate seamlessly into checkout counters and manage bulk coin handling. By eliminating manual errors and providing real-time visibility, CashGuard enables retailers to maintain tighter control over cash, ultimately improving profitability.
Future Outlook
Moving forward, there is still considerable untapped potential for cash management automation in many global marketsparticularly in Southern Europe and other regions where cash remains prevalent for daily transactions. Although digital payment methods continue to gain traction, a significant portion of the population still prefers or relies on cash, providing ongoing opportunities for innovative automation solutions. Several countries are using legislation to
guarantee consumers the right to pay with cash in certain sectors. Throughout 2024, StrongPoint has
significantly advanced the development and testing of CashGuard Connect in collaboration with a leading Iberian grocery retailer. While the official launch of this next-generation solution is still forthcoming, early trials indicate that it will offer transformative benefits: reducing or eliminating manual tasks for in-store staff, minimizing cash pickup frequency by cash-in-transit partners, and lowering overall logistics and handling costs. As we contin ue refining CashGuard Connect, we remain focused on delivering robust, cost-effective, and secure payment solutions that meet the evolving needs of retailers worldwide.
MNOK
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Checkout Efficiency
Self-Checkout
StrongPoint's Self-Checkout solutions improve the customer experience and help reduce costs. StrongPoint offers hardware and software solutions that can be used independently or together. It also integrates advanced AI for fraud prevention, item recognition, and age verification for restricted items.
Vensafe
StrongPoint's Vensafe automates in-store sales of restricted and high-theft products, such as tobacco, pharmaceuticals, and other high-value items. It enables stores to sell these products safely and responsibly at traditional checkouts and in unstaffed environments like self-checkout lanes or checkout-free stores. Vensafe improves store productivity, enhances the customer experience, and eliminates shrinkage.
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Shop fitting involves equipping retail and service shops with necessary equipment, fixtures, and fittings. StrongPoint ALS has specialised in this service and provides modifications and enhancements within the physical retail space, addressing both interior layouts and the external surroundings of stores. The focus often lies on the check-out area or the integration of innovative technological solutions, with a strong commitment to identifying and implementing sustainable alternatives for clients. This includes the complete refurbishment of the checkout area, prolonging its lifecycle, decreasing costs and minimising environment impact. The future of shop fitting revolves around implementing and upgrading our clients infrastructure as the demand for technology increases. How the products of the future seamlessly integrate into stores and the interface with the shopper, means that shop fitting will remain a valuable service for our clients.
Market Today
In 2024, UK retailers have faced a variety of challenges that lead to reduced spending across the shopfitting industry, particularly in the grocery vertical. The year proved to be demanding as economic uncertainties and continued margin pressures lead to a tightening of retailers discretionary spend on store enhancements and a significant reduction in the development of new space and formats. The focus for retailers in 2024 has been to ensure that they remain price competitive for the customers in the face of the continually rising cost of living. This has had a ripple effect into the shopfitting industry with a number of large-scale vendors experiencing financial issues, layoffs and even bankruptcy.
Future Outlook
In the UK, the grocery retail shopfitting market is undergoing a period of significant change, driven by shifting consumer expectations, technological developments, and the increasing pressure to reduce cost. While standard refurbishment schemes remain common, these projects increasingly incorporate modern designs, new technologies and environmentally friendly materials to meet growing sustainability requirements.
Retailers are focusing on enhancing in-store environments to meet changing shopper expectations. Key strategies include improved concessions through collaborations with complementary brands, which enhance the customer experience and provide additional revenue streams. Efforts to reduce shrink (theft and waste) are also influencing shopfitting priorities, with an emphasis on improved security features and efficient layout designs to minimize losses. Additionally, the integration of digital media installations, such as video walls and digital displays, is becoming more prevalent, allowing retailers to deliver targeted marketing and enhance in-store engagement.
Despite opportunities for growth, the sector faces challenges that could dampen investment in shopfitting projects during 2025. Rising national insurance contributions and an increase in the minimum wage are placing additional financial pressure on retailers, many of whom are already grappling with increased energy costs and supply chain disruptions. These economic factors may constrain budgets for store refurbishment and infrastructure upgrades, leading to a cautious approach to investment.
MNOK
Shop Fitting
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Other Technology
Commerce Management System
StrongPoint implements, personalises, and maintains an enterprise resource management solution that includes the company's trading processes from customer service units to the central office. StrongPoint also helps retailers to automate checkout processes and deliver speedy customer service with POS software, POS terminals, fiscal printers, and other related technologies.
Our solution is based on Microsoft Dynamics 365 Business Central with Retail Module LS Central. Installing this solution will increase employee productivity, internal process efficiency, decision-making speed and reduce operational costs. StrongPoint was the first in the Baltic States to introduce Microsoft Dynamics NAV solution to retailers. StrongPoint implements, modifies, and advises on all issues related to enterprise resource management systems since 2000. StrongPoint has for over 30 years delivered proprietary POS solutions to retailers in the Baltics.
Long-term experience and accumulated expertise enable us to select and model enterprise resource management and POS systems that best meet the needs of the retailer for maximum operational efficiency and performance.
In 2005 StrongPoint became a Microsoft Gold Partner and in 2015 StrongPoint was named a Diamond LS Retail Partner. StrongPoint has implemented enterprise resources management systems in more than 100 companies and maintain more than 10,000 POS solutions in the Baltic.
Market Today
Other technologies, such as ERP solutions and POS systems, remain core components for retailers. With ongoing environmental changes and government initiatives, including euro cent rounding, VAT adjustments, and fiscal law updates, maintaining these software solutions has become increasingly challenging. Additionally, the growing number of service providers requires seamless integration to ensure a smooth and efficient consumer experience. The market is shifting towards solutions as a service, becoming more standardized and less customized for individual retailers. This evolution has driven us to continuously learn, adapt, and stay ahead with our solutions.
Future Outlook
The transition to a SaaS model is set to become the new standard, even for complex solutions. As the retail landscape evolves, next-generation commerce management will require software that is not only lightweight and easy to deploy but also highly modular. This level of flexibility will enable retailers to adapt quickly to shifting market demands, regulatory changes, and emerging consumer expectations. A truly modular approach will allow businesses to integrate only the features they need, ensuring efficiency without unnecessary complexity.
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
MARKETS
NORWAY
StrongPoint headquarters Office: Oslo +47 934 03 254 [email protected]
Service & Support +47 815 66 220 [email protected]
SWEDEN
Offices: Stockholm, Gothenburg and Grums. +46 31 706 80 00 [email protected]
Service & Support +46 771 18 18 20 [email protected]
FINLAND
Office: Helsinki +35 020-730 53 01 [email protected]
UK
Office: Birmingham +44 (0) 121 693 0511 [email protected]
Service & Support +44 (0) 121 693 0511 [email protected]
IRELAND
Office: Dublin +353 1 257 3 257 [email protected]
SPAIN
Offices: Madrid, Barcelona and Gijón. +34 91 847 50 39 [email protected]
Service & Support +34 91 847 50 39 [email protected]
LITHUANIA
Office: Vilnius +370 8 700 70022 [email protected]
Service & Support +370 8 700 70022 [email protected]
LATVIA
Office: Rīga +371 8000 19 99 [email protected]
Service & Support +371 8000 19 99 [email protected]
ESTONIA
Office: Tallinn +372 650 42 00 [email protected]
Service & Support +372 6 504 242 [email protected]
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
What do you see as the key trends facing the grocery retail sector in Norway and Sweden?
In Norway, the economic growth rebounded last year and has now returned to normal levels. Unemployment has remained stable at a low level since last summer, and further growth is expected. Wage growth in outpacing inflation, leading to a sharp improvement in purchasing power, while anticipated interest rate cuts will provide additional support for consumption. Although inflation has declined significantly from its peak, it will take time before it reaches the 2 percent target.
In Sweden, the economy struggled in 2024, with minimal GDP growth, rising unemployment, and continued pressure on household purchasing power. Despite these challenges, the grocery retail sector recovered and returned to volume growth during the year. Looking ahead to 2025 and beyond, households expect the economy and their personal finances to stabilize. With inflation under control and real disposable income expected to rise, consumption is set to recover. These conditions will support increased demand, further driving volume growth in the grocery retail sector.
The grocery retail sector saw modest sales growth in 2024, but with private consumption projected to increase in 2025, accelerated growth in grocery retail is likely.
Although there are significant differences between Norway and Sweden, several key trends will continue to shape grocery retail across these markets.
Low prices will remain a priority for customers, prompting retailers to implement price cuts, increase promotional activity, and focus more on private-label products. At the same time, retailers are intensifying efforts to drive operational efficiencies to protect shrinking margins. Online grocery sales, though still a small portion of total grocery sales, are expected to be the fastestgrowing channel in the coming years, particularly as purchasing power recovers. The digitalization of retail will continue to advance, with increased adoption of technologies such as AI, computer vision, robotics, automation, and retail media. These innovations will enhance customer experiences both online and in-store, reduce waste, prevent theft, and improve operational efficiency.
Scandinavia
Magnus Rosén SVP Norway & Sweden
50% RELATIVE SHARE OF TOTAL REVENUE 2024
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Norway
Sweden
What kind of solutions do you think grocery retailers are going to be in most need of in the future?
Margin pressure and cost efficiency will remain top priorities for grocery retailers in Norway and Sweden. Solutions that enhance operational efficiency and reduce losses will continue to be in high demand in the coming years. There will also be a growing need for solutions that address customer pain points and cater to specific shopping missions, both online and offline.
Operational efficiency will remain at the forefront of retailers' agendas, driving demand for solutions that lower operational costs. Key examples include electronic shelf-edge labels, in-store robotics, and software that optimizes retail processes and staffing. Online grocery shopping will be the fastest-growing channel in most markets, increasing the need for automation, order picking, and last-mile solutions. Innovations that simplify customer journeys across multiple channels will also create new opportunities, with unmanned stores, vending machines, lockers, AI-powered self-checkouts, and smart scales emerging as relevant solutions. Additionally, theft and other crimes are becoming growing concerns for grocery retailers, leading to a significant rise in demand for theft prevention and security solutions such as Vensafe and SAI fraud detection.
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
What do you see as the key trends facing the grocery retail sector in the Baltics and Finland?
The stable economic situation and normalized inflation in Lithuania and Latvia present challenges for retailers striving to remain profitable and efficient. In contrast, Estonia faces a more complex market situation, with increased VAT further reducing consumer purchasing power. Across the region, retailers continue to expand their store networks and invest in self-service shopping technologies, focusing on solutions that help address staff shortages.
While household purchasing power has improved, this has not yet translated into increased private consumption. In fact, consumption declined in 2024. However, with inflation remaining lower than wage growth and declining interest rates reducing household costs.
Several key trends are shaping the grocery retail sector in the Baltic and Finnish markets. E-commerce and grocery delivery are expanding. Retailers are increasingly adopting automation and artificial intelligence to enhance efficiency and improve the customer experience through technologies such as electronic shelf labels, autonomous mobile robots, and AI-driven analytics. Store formats are being optimized as operators downsize existing spaces to reduce costs and adapt to changing consumer preferences. Sustainability is also a growing priority, with retailers implementing eco-friendly practices and expanding their selection of sustainable products to meet consumer demand. Additionally, economic uncertainty and price sensitivity are driving increased investment in private label products and a rise in discount retailers offering more affordable options.
What kind of solutions do you think grocery retailers are going to be in most need of in the future?
Grocery retailers in the Baltics and Finland are expected to focus on adopting technological solutions that align with both
regional trends and global innovations. The shift toward online shopping will continue, making robust e-commerce systems essential, while automation will play a key role in improving efficiency and enhancing the customer experience.
Autonomous checkout solutions, such as scan-and-go systems, cashierless stores, smart shopping carts, and app-based payments, will become more prevalent. AI-powered inventory management will help retailers optimize stock levels, prevent shortages, and reduce waste, particularly in perishable goods. Smart shelf technology, including electronic shelf labels (ESLs), will allow retailers to dynamically update prices and promotions in real time. Robotics will increasingly be used in warehousing for sorting, packing, and restocking, improving operational speed and efficiency.
To address labor shortages and enhance productivity, retailers will invest in staff scheduling tools, workforce management systems, and AI-powered platforms that align shifts with demand patterns. Improved communication and task management tools will further support operational efficiency.
Overall, Baltic and Finnish grocery retailers will focus on remaining competitive by addressing regional demands for convenience, sustainability, and digital innovation.
Baltics and Finland
MNOK
Rimantas Mažulis SVP Baltics & Finland
21% RELATIVE SHARE OF TOTAL REVENUE 2024
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
MNOK
What do you see as the key trends facing the grocery retail sector in Spain?
After a period of economic recovery, 2024 marks the beginning of a moderately optimistic economic outlook in Spain. Consumption has nearly returned to prepandemic levels, growing by 1.3 percent. While consumers have improved their financial situation, spending is shifting away from mass consumption toward areas such as leisure and communications. As a result, supermarkets are struggling to convert this increased spending into higher food sales.
The grocery sector faces persistent challenges, including high absenteeism rates and low productivity. Retailers are finding it increasingly difficult to recruit skilled labor in an industry that requires greater investment to retain talent and enhance efficiency. Additionally, per capita investment in technology remains too low, limiting the sector's ability to drive competitiveness.
To address these challenges, grocery retailers must leverage technology as a crucial tool for improving operational efficiency and mitigating labor shortages, a trend that is expected to intensify in the coming years.
What kind of solutions do you think grocery retailers are going to be in most need of in the future?
In Spain, the adoption of certain technological solutions is progressing more slowly compared to other European countries, but it continues to advance. One technology gaining traction is electronic shelf labels, with several Spanish retailers beginning to implement and expand their use. The economic benefits are becoming increasingly evident, and modern ESLs now offer more than just price changes. They help optimize in-store product repositioning, improve stock control, and enhance product location tracking, which is particularly valuable for preparing e-commerce orders.
Cash management solutions are also emerging as a key investment for grocery retailers. According to the Bank of Spain, cash remains the most widely used payment method for physical purchases, with 59 percent of the population relying on it as their primary means of payment and 80 percent opposing its disappearance. Traditionally, cash management has relied on manual processes, which are both inefficient and insecure. However, technological advancements have led to the development of specialized supermarket solutions that provide a rapid return on investment. As a result, interest from grocery chains in these solutions is growing significantly.
Spain
Lorena Gómez SVP Spain
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
What do you see as the key trends facing the grocery retail sector in the UK?
There are two prevalent trends coming out of 2024 that are impacting grocers in the United Kingdom and will continue through 2025, rising costs and soaring rates of theft.
The rising cost of living in the United Kingdom looks set to continue into 2025, perpetuated by increases in National Insurance payments and a rise in National Minimum Wage which will be in effect from April. These incoming pressures have lead grocery retailers to take proactive and drastic action in order to protect their commercial performance. Tesco, Asda, Sainsburys and Morrisons have all announced significant redundancies in an attempt to mitigate the impact of upcoming financial pressures. This is likely to have a knock-on effect to allocation of capital resources, however, also intensifies the need to find efficiencies both in-store and on-line, further optimise operating models and leverage opportunities to reduce costs wherever possible.
Alex Eveleigh SVP UK & Ireland
Crime rates in the UK look set to continue climbing in 2025. This is particularly prevalent in the grocery retail market where theft is anticipated to hit a 20 year high with forecasts suggesting that it could account for as much as £7.9 Billion of losses across the sector. Retailers will be looking at a range of solutions to reduce the costs associated with theft as well as protecting their employees from both abuse and physical harm.
What kind of solutions do you think grocery retailers are going to be in most need of in the future?
With rising costs and increasing theft, UK grocery retailers are seeking solutions to reduce labor costs, increase productivity, and minimize shrink without compromising the customer experience. StrongPoint offers a range of innovative technologies to address these challenges. Its industryleading order picking solution optimizes fulfillment efficiency by streamlining routes and reducing errors, helping retailers meet growing online demand while lowering labor costs. Click and collect lockers provide a cost-effective grocery and parcel collection option, with temperature-controlled compartments ensuring customer convenience while reducing last-mile delivery costs and driving in-store traffic. StrongPoint's Connected Store solution integrates various in-store systems into a single platform, enabling real-time datadriven decision-making to improve task prioritization, boost productivity, and reduce operational bottlenecks.
To combat theft, StrongPoint's Vensafe system provides a highly effective loss prevention solution for high-risk items such as tobacco, razor blades, and pharmaceuticals. These products are stored in a secure vending unit, accessible only through a digital interface or receipt-based system, eliminating shoplifting and reducing employee theft. By restricting access to frequently stolen goods, Vensafe helps retailers cut shrinkage, enhance security, and protect profitability while maintaining a smooth customer experience.
With UK grocery retailers facing continued financial pressures and unprecedented levels of theft, StrongPoint's solutions offer a strategic approach to optimizing efficiency and protecting profitability.
UK & Ireland
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
What do you see as the key trends facing the grocery retail sector?
In 2024 and looking ahead to 2025, the grocery retail sector is evolving rapidly, shaped by economic shifts, technological advancements, and changing consumer behaviors. Retailers are strengthening omnichannel strategies, seamlessly integrating online and in-store shopping to offer greater flexibility. At the same time, persistent inflation and economic pressures are driving a sharper focus on cost efficiency, prompting investments in automation, workforce optimization, and data-driven decision-making.
The demand for faster order fulfillment is rising, expanding beyond same-day delivery to near-instant solutions in urban markets. This has accelerated the adoption of micro-fulfillment centers, optimized last-mile logistics, and store-level solutions like click & collect and home delivery. AI-driven personalization is also gaining traction, refining promotions, product recommendations, and in-store experiences based on individual preferences. Meanwhile, loss prevention and security have become critical, with retailers turning to computer vision, autonomous store concepts, and other tech-driven solutions to combat theft and labor shortages.
Supply chain resilience remains a priority, as retailers seek to manage rising logistics costs, mitigate disruptions, and maintain steady inventory levels. By leveraging diversified sourcing, real-time visibility tools, and predictive analytics, they can better navigate market fluctuations. As the industry continues to transform, technology, sustainability, and customer-centric strategies will shape the future of grocery retail.
What kind of solutions do you think grocery retailers are going to be in most need of in the future?
In the coming years, grocery retailers will increasingly adopt technologies that
streamline every aspect of the shopping journey while ensuring profitability and security. Meeting online shoppers' expectations for fast and accurate order fulfillment will remain a top priority, driving further investment in real time inventory tracking and efficient in store picking methods. At checkout, automation and computer vision will play a growing role as retailers strive to enhance the customer experience, reduce labor demands, and combat rising concerns around theft and loss prevention.
There will also be a stronger focus on secure payment systems that handle cash and restricted items efficiently without adding friction to the checkout process. Meanwhile, AI driven insights will continue to reshape personalized promotions and store operations, improving productivity and reducing errors. Ultimately, the future of grocery retail lies in solutions that integrate these advancements into a seamless customer centric ecosystem, one that prioritizes convenience, cost efficiency, and the highest standards of safety and service.
Julius Stulpinas SVP Technology and Supply Chain
Rest of Europe
7% RELATIVE SHARE OF TOTAL REVENUE 2024
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
SUSTAINABILITY IN STRONGPOINT
At StrongPoint, sustainability means making responsible business decisions that create value while protecting the environment and benefiting society. It is an integral part of our operations, forming the foundation for long-term growth and profitability.
By minimizing our environmental footprint, fostering strong relationships with stakeholders, managing our impact, enhancing resource efficiency, and developing innovative solutions for our customers, StrongPoint aims to mitigate risks and unlock new opportunities. AMBITIONS
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Double materiality and stakeholder engagement
In 2024, we conducted a comprehensive process to update our double materiality assessment. This was the third time we have undertaken this assessment, gathering feedback from our stakeholders to identify a list of potentially important sustainability topics for StrongPoint.
Our key stakeholders include customers, investors, financiers, employees, unions, national authorities, partners, and suppliers.
Our ESG reporting approach and format align with the EU Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).
A more comprehensive and detailed report on double materiality can be found on our website strongpoint.com.
| Stakeholder | How we engage and arenas for dialogue | Topics of interests and concerns | Frequency of Engagement |
|---|---|---|---|
| Customers | • Customer boards • Customer visits and during installation) • Surveys and ratings • Marketing/communications, website and newsletters • Customer and project meetings • Tender responses and presentations |
• Ensure high-quality product that are safe for end-user (e.g. food safety, chemical use). • Follow laws and regulations in terms of ethical business operations, human rights, and anti-corruption. • Correct waste management (reduce, reuse, recycle). |
Daily, Weekly, Monthly, Quarterly, Annually |
| Investors/owners | • Sustainability report • Quarterly reports/presentations • Annual reports • Teams/phone meeting • Roadshows • Annual General Meeting |
• Ensure an engaging, healthy, and safe working environment. • Allow employees to prevent sick leave and high turnover. • Follow laws and regulations in terms of ethical business operations, human rights, and anti-corruption. • Continuously work to reduce the environmental footprint of the products and in own operation. |
Monthly, Quarterly, Annually (and ongoing basis when relevant) |
| Employees/ Employee representatives |
• Employee survey • Townhall meetings • Website and intranet • Trainings • Information posters/leaflets • Values implementation process • Performance reviews • Union consultations and negotiations |
• Ensure an engaging, safe, and inclusive working environment. • Focus on employee training and development. • Follow laws and regulations in terms of ethical business operations, human rights, and anti-corruption. |
Daily, Weekly, Monthly, Quarterly, Annually |
| Suppliers and Business Partners |
• Supplier audits and Code of Conduct • Quarterly meetings/audits • Newsletters • Customer meetings/projects • Through partnership projects • R&D initiatives |
• Contribute to a sustainable industry. • Work to ensure long lifetime of products. • Correct waste management (reduce, reuse, recycle). |
Daily, Weekly, Monthly, Quarterly, Annually |
| Government/ civil society |
• Phone and email communication • Visits and tours at court facilities • Conferences and community events • Participation on advisory boards • Social media |
• Follow laws and regulations in terms of ethical business operations, human rights, and anti-corruption. • Comply with regulations for data privacy (e.g., GDPR). • Ensure safe products. |
Monthly, Quarterly, Annually (Frequency depends on type of government/public authority body) |
| Media | • Phone and email communication • Interviews • Press releases • Website and social media |
• Business development and innovations. • Status of operations, and effects on local/regional/national employment. • Transparent reporting. |
Daily, Weekly, Monthly (Frequency depends on type of media, and editorial focus vs StrongPoint's key business activities.) |
Table: A summary of our stakeholder engagement and the topics and impacts raised by them.
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Material changes
StrongPoint has discontinued reporting according to the GRI standard as we are progressing into reporting according to the Corporate Sustainability Reporting Directive (CSRD) from the financial year 2025. In 2024 we continue reporting according to the EU Taxonomy.
StrongPoint's environmental footprint (direct emissions) is relatively low due to the nature of the business. After assessing the significance and possible negative impact, we have found it to be more relevant and aligned with our stakeholders' feedback to become more focused on innovation and technical solutions that reduce energy consumption on our customer and customercustomers side of the value chain.
Our focus will still be on our three Operational Sustainability Initiatives (OSIs). Our ambition is to drive sustainability in the grocery industry through product innovation and solution design. The selected focus areas have the potential to significantly improve either emissions or working conditions. Our three OSIs are:
-
- Reduction of warehouse energy consumption
-
- Refurbishment and end-of-life treatment of check-out counters
-
- Safeguarding shopworkers
Sustainability governance and frameworks
StrongPoint is committed to upholding sustainability, integrity and responsibility across all aspects of its operations. The Board of Directors, as the highest governing body, oversees and ensures the effective management of our sustainability efforts. Sustainability is addressed during Audit Committee meetings, where discussions revolve around risk assessment, significant impacts, policy formulation, reporting, and other pertinent matters.
The Executive Vice President of People and Organization, reporting to the CEO, spearheads the development, implementation, and communication of our sustainability agenda, while our business units are tasked with its execution. Each of our locations is responsible for adhering to both local regulations and corporate standards.
All StrongPoint employees are expected to adhere to our Code of Conduct, which serves as the cornerstone of our commitment to maintaining the utmost integrity and avoiding involvement in unethical or illegal activities. We prioritize environmental conservation by adopting more eco-friendly technologies in our operations and for our clients.
We acknowledge our obligation to make positive contributions to the societies in which we operate and strive to ensure that they benefit from our presence. Sustainability is seamlessly integrated into StrongPoint's overarching enterprise strategy, guiding decisions made throughout our value chain. We understand that our conduct as an employer and business entity profoundly impacts our ability to generate long-term value for both society and our shareholders.
FRAMEWORKS:
StrongPoint acts and reports on sustainability according to national and international standards and legal requirements. The most important are
I. UN Sustainability Development Goals and membership in UN Global Compact II. EU taxonomy for sustainable economic activities
- III. EU regulation on responsible business conduct and The Norwegian Transparency Act
- IV. The Norwegian accounting act §3-3 and compliance with EUs Non Financial Reporting Directive
- V. Statement on equality and non-discrimination (the Norwegian Equality and Anti-Discrimination Act)
- VI. EU regulation on executive remuneration
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Since 2021, StrongPoint has been a signatory to the UN Global Compact, the world's largest corporate sustainability initiative, and is committed to its 10 principles. We respect and adhere to the precautionary principle (Principle 7). This report is our annual Communication on Progress.
I. UN Sustainable Development Goals and UN Global Compact
StrongPoint supports the UN Sustainable Development Goals (SDGs), a collection of 17 global goals set by the United Nations General Assembly in 2015. Based on our materiality assessment, we have prioritized eight (8) SDGs where we believe we can have the most impact and where we seek to contribute positively.
The UN Sustainable Development Goals (SDGs) embrace a universal approach and define the global agenda for sustainable development. The goals explicitly call on businesses to use creativity and innovation to address development challenges and recognize the need for governments to encourage sustainability reporting. StrongPoint uses the SDGs to understand the context of our impact on sustainable development. Please refer to the Appendices for an overview of StrongPoint's impact on the 17 development goals. SDG 2, 9, 11 AND 12:
PRODUCT INNOVATION, QUALITY AND SAFETY IN THE FOOD CHAIN
Ensuring safe and fresh groceries. With innovative labelling and minimal wastage of food. Develop and offer new technical solutions to the market which are more environmentally sound, simplifying and improving the way retailers and communities do business.
SDG 5 AND 8: WORKING ENVIRONMENT
Ensuring a healthy, fair workplace that creates good opportunities for all. Protecting labor rights for all workers.
SDG 13: ENVIRONMENT
Promoting a more circular economy and working with suppliers on joint strategies to reduce our CO2 footprint.
SDG 16: GOVERNANCE
Setting and enforcing appropriate rules of behavior for employees and suppliers, along with reporting mechanism.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics | |
|---|---|
| In-store Productivity | |
| Payment Solutions | |
| Checkout Efficiency | |
| Shop Fitting | |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
II. Statement on EU taxonomy for sustainable economic activities
The taxonomy is a classification system that specifies criteria for which activities can be considered sustainable. It is an integral part of the EU's action plan to turn capital toward a more sustainable economy. It represents an important step in becoming carbon neutral by 2050.
The taxonomy has been adopted in Norwegian legislation through the Act on the publication of sustainability information in the financial sector, which entered into force on 1 January 2023.
In the following section, we, as a non-financial parent undertaking, present the share of our group turnover, capital expenditure (Capex), and operating expenditure (Opex) for the reporting period 2024, which are associated with Taxonomy-eligible economic activities.
Illustration of Taxonomy requirements and qualifiers.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
| Scandinavia |
|---|
| Baltics & Finland |
| Spain |
| UK & Ireland |
| Rest Of Europe |
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Our activities - eligibility
Our economic activities as a technology group are Taxonomy-non-eligible.
We have examined all Taxonomy-eligible economic activities listed in the Climate Delegated Act based on our activities as a retail technology company. After a thorough review (using the NACE codes, technical screening criteria, and Taxonomy compass) involving relevant Business units and functions, we concluded that our economic activities are not covered by the Climate Delegated Act, or Do No Significant Harm ('DNSH'), and consequently are Taxonomy-non-eligible.
Activities within the value chain of our products that are not revenuegenerating, but that result in assets or processes that are essential for our revenue-generating activities, are not reported as Taxonomy-eligible economic activities on their own. This includes, in particular, research and development, the rent/acquisition/construction of new buildings (for our production sites), and other investment-oriented activities such as expenditure for our fleet and data center capacities.
Additionally, the transport of our products to our customers and partners is not reported as a Taxonomy-eligible activity, and is not included in our turnover KPI, because we are not generating external turnover on a standalone basis with this activity. However, we do disclose Capex and Opex relating to the purchase of output from Taxonomy-eligible economic activities and individual measures to improve energy efficiency listed in the Climate Delegated Act.
We foresee that in the future, (to be further assessed in 2025) we may report on how the grocery retail industry positively impacts food waste and changes in traffic patterns in heavily populated city areas. We also see that we may contribute to energy-efficient building automation and control systems for nonresidential buildings (warehouses).
| Taxonomy activity number |
Activity | Relevance |
|---|---|---|
| 7.4 | Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings). |
A limited number of service installations for charging stations have been completed by StrongPoint ALS. |
| 8.1 | Data processing, hosting and related activities. |
Data Center hosting done by 3rd party. Only non-eligible processing practice. |
| 8.2 | Computer programming, consultancy and related activities. |
Does not substantially reduce the most important physical climate risks that are material to that activity, and is not based on a robust climate risk and vulnerability assessment. |
| 9.3 | Professional services related to energy performance of buildings. |
Provided as part of AutoStore frozen. |
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
| Scandinavia |
|---|
| Baltics & Finland |
| Spain |
| UK & Ireland |
| Rest Of Europe |
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
* Concerning our vehicle fleet, we considered all leased vehicles as Taxonomy-eligible.
* This voluntary disclosure is based on a preliminary assessment of the technical screening criteria. Our assessment might change in the future. We provide this information for transparency purposes only.
Taxonomy Opex and Capex KPI reporting:
Based on the non-significant impact and size of the expenditures there has not been set any specific KPIs on top of what StrongPoint has as general Sustainability KPIs.
Compliance with Taxonomy Minimum Safeguards:
Compliance with the Minimum Safeguards is determined by assessing performance criteria against four core topics:
Individually Taxonomy-eligible Capex and Opex
Since our main economic activities as a retail technology company are not covered by the Climate Delegated Act, the share of Taxonomy-eligible economic activities in our total turnover is 0%, and consequently the related capital and operating expenditure is also 0%.
Only "category c" Capex and Opex can therefore qualify as Taxonomy-eligible, i.e., Capex/Opex related to the purchase of output from Taxonomy-eligible economic activities and individual measures enabling the target activities (our non-eligible activities) to become low-carbon or to lead to greenhouse gas reductions.
These individual measures correspond to economic activities listed in the delegated acts supplementing the Taxonomy Regulation (as of today, the Climate Delegated Act).
We have identified the following purchased outputs and individual measures that correspond to eligible economic activities and, thus, result in Taxonomyeligible Capex/Opex:
| Total (MNOK) | Proportion of Taxonomy eligible economic activities (in %) |
Proportion of Taxonomy noneligible economic activities (in %) |
|
|---|---|---|---|
| Turnover | 1,309 | 0% | 100% |
| Capital expenditure (Capex) | 40 | 1% | 99% |
| Operating expenditure (Opex) | 157 | 1% | 99% |
| Considered non-compliant if one of the two criteria apply: | StrongPoint reporting | |
|---|---|---|
| Human Rights | 1. The company has not established an adequate human rights due diligence (HRDD) process as outlined in the UN Guiding Principles (UNGPs) and OECD Guidelines for Multinational Enterprises in alignment with the International Bill of Human Rights 2. There are signals that the company did not dequately implement human rights due diligence and/or did abuse. These are: a. The company has been finally found in breach of labour law or human rights b. OECD or Business and Human Rights Resource Centre (BHRRC) indicators signal that the company does not engage with stakeholders. |
HRDD is described in CoC and implemented as part of the Transparency act process. StrongPoint has not been accused or found in breach of labour law or No indicators signal has ever been issued. |
| Corruption | 1. The company has no anti-corruption processes in place 2. The company or its senior management, including the senior management of its subsidiaries, has been finally convicted in court of corruption. |
Anti-corruption process is described in our policies. The company or any of its senior management has never been convicted of corruption. |
| Taxation | 1. The company does not treat tax governance and compliance as important elements of oversight, and there are no adequate tax risk management strategies and processes in place. 2. The company or its subsidiaries have been finally found to have violated tax laws. |
StrongPoint follows national and international standards on taxation. The company and subsidiaries has never been found guilty of having violating tax laws. |
| Fair Competition | 1. The company does not promote employee awareness of the importance of compliance with all applicable competition laws and regulations. 2. The company or its senior management, including the senior management of its subsidiaries, has been finally convicted of violating competition laws. |
StrongPoint accepts and promotes the principles of fair competition. The company or any of its senior management has never been convicted of violating competition laws. |
Table: Taxonomy Minimum Safeguards
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
III. Sustainability reporting
Scope
This chapter summarizes StrongPoint's sustainability reporting. It presents StrongPoint's management of and performance on material environmental and social issues.
The reporting period is 1st January to 31st December 2024. The report adheres to the Oslo Stock Exchange's Euronext Guidelines. StrongPoint's sustainability report has been reviewed and approved by the Board of Directors together with the annual report. The claims and data in this report has not been audited by a third party.
For information about this sustainability report and its content please contact StrongPoint CEO Jakob Tveraabak or SVP People and Organisation, Knut Olav Nyhus Olsen. Both their contact details can be found on the StrongPoint website strongpoint.com.
Our materiality assessment is presented above on page 34, and the background facts and figures about the company can be found on page 2-32 of this report. Our corporate governance model is presented on page 63-67.
This report covers all locations and subsidiaries of StrongPoint ASA. StrongPoint is headquartered in Oslo, Norway, with offices in ten countries (Norway, Sweden, Finland, the Baltics, Spain, UK, Ireland and Bulgaria).
Economic impact and tax information
StrongPoint's economic impact is covered in the company's annual report. Payroll and social security expenses are covered in Note 9 of StrongPoint's annual report 2024. Tax information can be found in Note 26 in the annual report.
Value chain and markets served
StrongPoint serves the retail industry. The company produces a wide range of services to different lines of businesses, including food and beverage, beauty and health, sports and the manufacturing industry.
StrongPoint's supply chain starts with the sourcing of materials and extends to the distribution of StrongPoint's products mainly to customers throughout Europe. StrongPoint's key markets are Norway, Sweden, the Baltics, Spain, UK, South-Africa, Italy and the USA.
Corporate governance
Good corporate governance is vital to the success of StrongPoint and as a stock listed company, StrongPoint has the responsibility to follow all relevant legislation, regulations and standards. In 2024, the Board of Directors (the Board) has reviewed and updated the company's corporate governance practice, which is in line with the Accounting Act, section 3-3b and the Norwegian Code of Practice for Corporate Governance (NUES recommendations), except where deviations are noted.
StrongPoint's corporate governance principles are determined by the Board and are set forth in the company's management documents. The Board annually adopts a plan for its work, emphasising goals, strategies, and implementation, including the company's ESG approach. Sustainability is an integrated part of StrongPoint's core business and Executive Management are responsible for the follow-up of the company's sustainability efforts on a day-to- day basis. StrongPoint's sustainability approach is also covered in the company's Code of Conduct.
More information about the company's corporate governance strategy, can be found at StrongPoint's website strongpoint.com.
Figure: StrongPoint's supply chain illustrated
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
ESG priorities
StrongPoint's materiality assessment guides the company's ESG priorities. StrongPoint's materiality assessment helps identify, prioritise, and validate our most significant sustainability impacts, risks, and opportunities.
ESG factors are at StrongPoint treated with equal importance, given the fundamental belief that smaller actions also contribute to the greater good and drive society towards a more sustainable future.
StrongPoint has the following ESG priority topics:
- a) Environment and climate risks
- b) People and working environment
- c) Operational sustainability initiatives
- Reduction of warehouse energy consumption
- Refurbishment and end-of-life treatment of checkout counters
- Safeguarding shopworkers
Environment and climate
People and working environment
Operational sustainability initiatives
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Material topic 1 Environment and climate risks
StrongPoint's business activities are directly and indirectly affected by and can also affect the natural environment and climate. The need for technological solutions that lower the company's own as well as its stakeholders' environmental footprint represent a business opportunity for StrongPoint but also a challenge. The company's ambition is to reduce direct and indirect negative influences of its business activities on the external environment and continuously seek new ways to minimise negative environmental impact.
StrongPoint's direct and indirect environmental impacts relate to the production, shipment and transportation of products, employee business travel, waste management and the end-of-life treatment of products.
StrongPoint's most important indirect environmental impacts in the value chain come from transportation and the end-of-life treatment for some of StrongPoint's products. Combustion of fossil fuels from company vehicles and on-site combustion are the second largest source of emissions.
StrongPoint should at all times act responsibly and adhere to relevant laws and standards relating to the environment. The company will work systematically to ensure that the products StrongPoint manufacture or resell are made by leading suppliers with a clear policy for sustainability in their own organisation and supply chain.
Environmental criteria are always considered when selecting partners. StrongPoint has included environmental accountability in the company's SLA/ supplier Code of Conduct to reduce the indirect carbon emissions caused by suppliers.
Net-zero ambition
StrongPoint has a net-zero ambition and believes selected solutions from StrongPoint play a role in reducing global greenhouse gas (GHG) emissions. StrongPoint's ambition is to:
- reduce the climate impact from our value chain and become a net-zero company in 2050 or earlier,
- deliver net-zero products, and
- use our industrial competence to enable the transition to a net-zero society especially in the retail industry sector.
Our net-zero ambitions are based on a successful transition to a 1.5 degree economy, in line with climate science and the Paris agreement.
StrongPoint's climate strategy is an integral part of our overall business strategy, aiming at driving improvements and development within the company. Impact on the climate strategy is also a criterion for all significant investment
decisions. The strategy includes reducing the climate impact of our operations as well as taking advantage of business opportunities by enabling our customers and society to do the same. StrongPoint will start reporting on the Net-zero ambition in 2025.
Science Based Targets
To set goals that are in line with our net-zero ambition and commitments StrongPoint in 2023 joined the Science Based Targets Organization and We Mean Business Coalition. We will according to the protocol set and submit for official validation our near term and Net-Zero commitments at the latest before November 2025.
Climate emissions (Greenhouse Gas Protocol)
StrongPoint monitors and calculates emissions in accordance with the GHG protocol published by the World Business Council for Sustainable Development (WBCSD) and World Resources Institute. Scope 1 emissions are calculated using emission factors for fuel combustion from DEFRA. Scope 2 emissions are calculated using market-based emission factors from the RE-DISS Project, assuming a European residual mix.
Scope 3 emissions are calculated in accordance with the GHG Protocol, using relevant emission factors from recognized sources such as DEFRA, ADEME, or industry-specific databases. Where primary data is unavailable, estimations are based on spend-based, activity-based, or hybrid methodologies, aligned with best practices for value chain emissions accounting.
As StrongPoint is preparing for CSRD reporting from the next financial year the 2024 emissions will not be published.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Climate change risks
In order to understand and mitigate the risks for our operations and potential consequences related to climate change, we have performed a climate risk assessments, evaluating physical and transition risks. We have looked at weather patterns and their impact on our facilities based on climate models and scenarios from the Intergovernmental Panel on Climate Change (IPCC).
We assess the specific impact that climate change could have on our business to be relatively small.
Our office locations and operational way-of-work does not imply acute physical risks (e.g., physical assets, insurance liabilities) or chronic physical risk (e.g., resource availability, including labour).
Business-related transition risks that a societal and economic shift to a decarbonized world would bring (such as changes in demand, the impact on energy prices, building renovation requirements, or potential competitive impacts on logistics chains) is likely to happen, but in an extent and comparable to what competitors and the society in general will have to face.
We foresee some general transition risk to occur. Such as policy and legal risk (e.g., compliance costs, CO2 emission tax).
We do not expect market and economic risk impacts (e.g., company valuation, asset impairment, credit rating) or any negative reputation risk (e.g., brand value).
No technology risk (e.g., write-offs for old systems displaced by new technologies) has been accounted.
We anticipate a growing market opportunity related to our energy efficient temperature-controlled warehouse and locker solutions with higher energy prices and higher temperatures.
Accounting assessment and exposure:
StrongPoint has no significant climate exposure in any part of its business operations. At the time of the report, there were no climate-related conditions of a size that are relevant for estimation uncertainty or write-downs. There are no asset retirement obligations.
| HAZARDS | Short term 1-3 years |
Middle 15 years |
Long term 15-50 years |
DETAILS | |
|---|---|---|---|---|---|
| Climate Extremes & Heat | Load-sharing of electricity. Changing seasonality of demand. | ||||
| MPACTS | Wildfire & Complications | Critical infrastructure failure. | |||
| AL I RADU |
Air Quality & Pollution | Policy regulations of cost and impact. Travel restrictions. | |||
| G | Water Availability | Groundwater availability in large cities. | |||
| Climate Extremes & Heat | Examples of heat waves in Spain that already impacts on the productivity. Rolling outages and interruption of services. |
||||
| VENTS | Wildfire & Complications | Transmission lines failure. Ash problems. | |||
| ME E RE |
Air Quality & Pollution | Public safety and human health - Madrid and Barcelona office. | |||
| XT E |
Water Availability | Extreme events unlikely, could amplify other events (fire risk and air quality). |
| Rolling outages and interruption of services. | |
|---|---|
| Minimal or isolated risk | |
| Moderate or amplified risk Major and amplified risk |
Table: Climate assessments
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
| Scandinavia |
|---|
| Baltics & Finland |
| Spain |
| UK & Ireland |
| Rest Of Europe |
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Material topic 2 People and working environment
Business ethics
Working with employees, customers and suppliers in more than 20 different countries, StrongPoint is directly and indirectly exposed to ethical risks throughout the company's value chain. The company has a direct and indirect responsibility to ensure it maintains a proactive approach to ethics, including screening suppliers or assessing operations for risks related to corruption, provide awareness training for employees, implement good governance mechanisms and a system for employees to raise concerns and report irregularities. Responsible business conduct is crucial to earn the trust of stakeholders and the company is dedicated to ensuring ethical business practices throughout its operations and value chain.
For StrongPoint this means respecting recognised international human and labour rights, such as the Human Rights Act and OECD Guidelines for multinational enterprises and respecting all national laws and regulations in the countries where the company is present, including the Norwegian Companies Act, the Norwegian Penal Code and the Norwegian Code of Practice for listed companies (NUES). In 2020, StrongPoint became a UN Global Compact Signatory. The company's ethical guidelines are outlined in the Code of Conduct, which can be found in full on StrongPoint's website. The StrongPoint Code of Conduct is the overarching document describing the standards and expectations regarding business ethics for all who work for StrongPoint, its subsidiaries and entities under the company's control. The Code of Conduct clearly states StrongPoint's expectations for personal conduct and business practice, and covers matters such as information security, policies in relation to anti-corruption and how to deal with conflicts of interest. The Code of Conduct applies to all StrongPoint employees as well as the Board of Directors. The Executive Management are responsible for the implementation and follow-up of the principles in the Code of Conduct and signing the Code of Conduct is a part of the onboarding process for new employees. Supervisors are responsible for both promoting and monitoring compliance with the Code of Conduct within their respective area of responsibility.
A strong company culture and a continued focus on business ethics is a prerequisite for risk management and a strong business performance. Risk is initially assessed at the business unit side then discussed at the board level to mitigate any risks flagged. StrongPoint makes a quarterly risk assessment for all StrongPoint's operations with the aim to identify, evaluate and manage risks.
Human rights
StrongPoint recognizes that businesses have a responsibility to respect, support and promote human rights. As an employer, owner and purchaser, an important way to respect human rights is to secure decent working conditions in our organization, in minority-owned companies and with our suppliers. We do not tolerate any form of harassment or discrimination, including but not limited to gender, race, colour, religion, political views, union affiliation, ethnic background, disability, sexual orientation or marital status. Furthermore, we do not tolerate any form of forced or compulsory labour, human trafficking or child labour abuse. We support the principles of freedom of association and collective bargaining. StrongPoint supports the principles underlying the Universal Declaration of Human Rights, the International Covenant on Economic, Social and Cultural Rights, and the International Covenant on Civil and Political Rights, the UN Global Compact and ILO's eight core conventions, and we expect our suppliers to do the same.
StrongPoint has identified the key risk of human rights breaches to be related to having third-party suppliers in China. StrongPoint has during 2024 reduced our exposure as importer of goods from China. In 2024 there has been no indication of serious violations to the StrongPoint Code of Conduct. StrongPoint's human rights management is based on the OECD Due Diligence Guidance for Responsible Business Conduct.
Anti-corruption
StrongPoint has a zero tolerance for corruption. This includes all directors and employees of the Group and companies and persons acting on behalf of the Group. Donations, sponsorships and irregular gifts need approval according to the 'grandfather principle'. Also, as a stock listed company, StrongPoint has to abide by strict regulations on conflict of interest, which is regulated in employee contracts. Employees receive awareness training as and when appropriate according to the business unit in which they work.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Whistleblowing and reporting of potential misconduct
If an employee or external party comes across a possible breach of laws, regulations or StrongPoint's Code of Conduct, or any other possible unethical business practice, this should be reported either in person or through the company's whistleblowing program. Concerns can also be raised by reporting to an immediate superior, directly to anyone in the management team or directly to the Audit Committee at StrongPoint. A message of concern cannot and will not be used against the reporting employee in any way.
Examples of issues that should be reported includes:
- Breach of the StrongPoint Code of Conduct
- Breach of local labour laws, discrimination, harassment, or conditions that impose a threat to the health and safety for employees, customers, partners or other stakeholders
- Environmental crime
- Financial crime, such as fraud, corruption or theft
- Activities that might damage property or infrastructure
StrongPoint has not taken part in any legal proceedings related to business ethics in 2024, nor has there been any confirmed cases of corruption. In 2024 there has been reported one case of misconduct. This was related to inappropriate relations between co-workers. In our monthly employee survey, we ask all employees the following question: "If I experienced serious misconduct at work, I'm confident StrongPoint would take action to rectify the situation". The feedback (eNPS) score on this question is 12 points above the external benchmark.
Working environment
StrongPoint will conduct its business in a manner designed to protect the interests of its employees including their health and safety. StrongPoint abides by all local laws and regulations in the countries where the company operates. The overall responsibility of employment, including anti-discrimination and equality process lies with the line manager, and is overlooked by Human Resources, with input from employee representatives, and reviewed by the Board of Directors. StrongPoint aims to provide a workplace with a good working environment. The Group is implementing measures to promote the employees' professional development, prevent illness and accidents, and improve the overall work environment.
Employee turnover in 2024 was 17.7%, up from 8.5% in 2023, driven by necessary workforce reductions and reorganizations, along with geopolitical and financial uncertainty in Europe.
All employees in the Group shall have standardised employment contracts and are free to organise themselves in labour unions and organisations promoting employee welfare. In 2024, StrongPoint has continued the use of Employee Engagement tool, Peakon. The tool allows us to measure the employee experience for all employees and managers in StrongPoint. They survey is run every two months where all employees record their feedback on 56 questions that cover 15 dimensions of their employment. The employee Net Promoter Score in Peakon show good results when benchmarked against other companies (the list of indicators are based on loyalty and satisfaction). At the end of 2024 StrongPoint score was 32 (34 in 2023). This is 10 base points better than the benchmark companies, and in the middle range of technology companies. Approximately 52% of all employees score the company at 9 or 10 on a scale from 1 to 10.
Employee health and safety
Ensuring a safe and secure working environment is StrongPoint's number one priority. All employees are required to follow the company's health and safety guidelines as well as applicable laws to prevent harm to people and the surrounding environment.
StrongPoint encourages its employees to participate in activities related to health and wellbeing. Working conditions within the organisation shall meet or exceed legal requirements in every country in which StrongPoint operates and the company shall comply with the conventions of the UN Global Compact and the International Labour Organization.
Hazards are identified and monitored to prevent accidents and occupational illness and workplace guidelines are monitored to ensure a healthy, safe environment.
The company's ambition is to have zero injuries or incidents. However, it is crucial that the company monitor potential breaches and health and safety incidents that occur at StrongPoint sites in order to implement preventive measures. Employees are encouraged to report health and safety breaches and any work-related incidents that happen on StrongPoint's sites to the nearest line manager and he/she is responsible for the investigation. No employees were injured at work and there were no major occupational accidents and no work-related fatalities in 2024. Total sick leave in the company was at 1% in 2024, compared to 2.5% the previous year.
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Material topic 3
Operational sustainability initiatives (OSI)
StrongPoint has set an ambition to drive sustainability in the grocery industry through our product innovation and solution design. We have chosen to focus on three areas where we know the positive impact can become significant on either emissions or humans.
- A. Reduction of warehouse energy consumption
- B. Refurbishment and end-of-life treatment of check-out counters
- C. Safeguarding shopworkers.
Operational sustainability initiative A: Reduction of warehouse energy consumption
5-10% of all sold groceries are handled in a chilled or frozen environment. How a retail grocery business transports and stores the products dramatically impacts food quality and related food waste. Keeping an efficient cold chain is essential both in terms of energy consumption and costs. Historically companies have implemented energy management programs targeting energy efficiency savings of 5% to 20% on energy bills. With such measures, the industry has lowered warehouses' general energy consumption benchmark by 15% - 30%* over the past two decades. (*dependent on the size of the warehouse).
StrongPoint believes we can improve this significantly and achieve much higher savings by introducing our AutoStore automation warehouse solutions.
By reducing the needed space required for storage and retrieval operations, organizations can construct smaller, more energy-efficient buildings, shrinking the construction footprint by up to ¼. A reduced volume requires less energy to cool down, and the cube storage model also has significantly less circulation and temperature loss than standard cold storage rooms. The StrongPoint solution needs no doors, trucks, lights, and workers inside to be operated, saving money and the environment.
According to research (source: coldchainfederation.org.uk), a modern and well-maintained cold store of 500,000 m3 would have a specific energy consumption (SEC) of approximately 5kWh/m3/yr. This would be equivalent to more than 500,000 kg CO2 per year. A possible reduction of 50% in emissions with our solutions would be substantial for this operation.
Progress
In 2023 StrongPoint successfully managed to build the world's first AutoStore facility with frozen groceries storage capabilities. During 2024 it has been handed over to the customer and put in full production. The projected energy savings have been met. A broader commercial launch for other customers is as planned for 2025.
In 2023 StrongPoint successfully managed to build the world's first AutoStore facility with frozen groceries storage capabilities. During 2024 it has been handed over to the customer and put in full production.
COMPANY TARGET:
2023 - introduce the concept to the markets in Norway, Sweden, and UK. 2023 - build and perform proof of concept in one facility. 2024 - in full operation and with a consistent reduction of minimum 50% CO2 eq. 2025 - commercial roll-out of new facilities (non-disclosed number).
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
COMPANY TARGET:
2023 - introduce the concept to selected grocery chains in Norway and Sweden.
2024 - build up internal competence and pilot.
2025 - introduction of solution to the Swedish market.
Operational sustainability initiative B: Refurbishment and end-of-life treatment of checkout counters
In Europe, there are an estimated 78,000 grocery hyper and super-markets. They are all set up with multiple checkout counters serving millions of customers daily. The wear and tear on the equipment (i.e., conveyor belts, structures, painting, electronics, and dividers) are lasting and lead to a need for replacement.
Historically the checkout counters have been replaced by new ones, leaving the old as waste. Our estimates show that a medium-sized check-out counter has an LCA (Life Cycle Assessment) carbon footprint that could be reduced by more than 70% with a more sustainable practice.
StrongPoint ALS has specialized in the recycling of counters. We believe this could also be done in markets other than UK/ROI.
Having comprehensive management of existing assets allows grocers to identify opportunities to extend the lifespan of the check-out counters through deep cleaning, sanitisation, repairing, re-painting, and upgrading hardware. Returned assets can be refurbished or upgraded and re-allocated to another site to supplement the existing assets, or as a like-for-like replacement. This will lessen the environmental impact by reducing waste sent to landfills and removing the need to purchase from new.
However, everything has a finite lifespan. Anything that reaches the end of life will be harvested for parts for maintenance purposes, and the remainder will be disposed of in a controlled manner, in line with our environmental policies and accreditations.
Progress
In 2024 StrongPoint has successfully refurbished more than 3,000 checkouts in the UK and Ireland. Many of the checkouts are over 15 years old and have been reworked several times. One large retailer in the UK has gone over 9 years without purchasing a single new checkout.
The concept has been showcased in Norway and Sweden and we are now undergoing a proof-of-concept with one of the leading retailers of plants and accessories in the Nordics. Our ambition is to have all products and processes used to refurbish a checkout sourced locally in the Nordics, resulting in a much lower environmental impact compared to buying a new product, which is often imported from Asia.
In 2024 StrongPoint has successfully refurbished more than 3,000 checkouts in the UK and Ireland. Many of the checkouts are over 15 years old and have been reworked several times.
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Operational sustainability initiative C: Safeguarding shopworkers
Shopworkers are being attacked, threatened, and even killed while on duty in retail and grocery stores. Armed robberies cause untold damage. Yet they are occurring with worrying regularity.
Sainsbury's, one of the leading grocery chains in the UK has informed the UK's Parliament's Home Affairs Committee that it alone experienced 4,500 violent incidents involving a weapon in a year.
Historically, armed robbers used to target high-end banks. But since they have securitised to such an extent that, for your average robber, it's just too much hard work, armed robbers have now chosen "softer targets" with less security, such as convenience stores. Amateur criminals can now commit violent incidents as often as professional gangs. The average armed robber now is a lone male in his 30s using a knife, often committing crimes to fund substance abuse.
StrongPoint has, since the introduction of CashGuard in 2003 and Vensafe in 2012, been fighting crimes by safeguarding the money, products and the workers.
Shopworkers are being attacked, threatened, and even killed while on duty in retail and grocery stores. Armed robberies cause untold damage. Yet they are occurring with worrying regularity. StrongPoint has, since the introduction of CashGuard in 2003 and Vensafe in 2012, been fighting crimes by safeguarding the money, products and the workers.
IV. EU regulation on responsible business conduct and The Norwegian Transparency Act
The Norwegian Transparency Act came into force on 1 July 2022. It amends the Non-Financial Reporting Directive 2014/95/EU on Responsible Business Conduct and is based on the recommendations in the UN Guiding Principles on Business and Human Rights (UNGP) and the OECD Guidelines for Multinational Enterprises.
The Transparency Act aims to promote enterprises' respect for fundamental human rights and decent working conditions in connection with the production of goods and services and to ensure the general public access to information regarding how enterprises address adverse impacts on fundamental human rights and decent working conditions.
It applies to the company's own business, suppliers, and the suppliers' value chain.
StrongPoint shall, according to section 5 in the Transparency Act, publish an account of the due diligence assessments, as done in this report. This report also combines the reporting obligations under the Accounting Act §3-3c.
Duties and governance
StrongPoint follows the duties to carry out due diligence assessments to understand the risk of possible breaches - and to introduce measures where necessary. Furthermore, we have a duty to inform about what is used as a basis for the due diligence assessments and the results.
Each StrongPoint business unit shall monitor its operations, and due diligence assessments are carried out locally under guidance and collaboration with StrongPoint ASA.
StrongPoint Technology and Sourcing are primary responsible for the follow up of all suppliers.
We carry out due diligence assessments in connection with various business decisions. This will in StrongPoint be done when establishing new business areas, launching new products, or acquiring other businesses.
StrongPoint works according to a risk-based methodology, where risk assessments and analyses are part of the management processes in the company and are overlooked by the Board of Directors. StrongPoint also includes the environment and anti-corruption in our transparency due diligence assessment.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Due diligence process description
The process for due diligence assessments in StrongPoint is based on the "OECD guide for due diligence assessments for responsible business".
A0. We establish a list of all suppliers and partners (up-stream and down-stream). Based on the severity and probability of adverse impacts on fundamental human rights and decent working conditions, we include the extended supply chain.
A1. An overall risk assessment is carried out. Assessing the country of origin, company size, raw materials and risk industries, and company legal structure. Based on this assessment, a list of suppliers is produced where risks may be related to human rights, decent working conditions, the environment, and anticorruption. If no significant risk is uncovered, the process stops and no further actions are performed. In this assessment, we use pre-determined threshold values and benchmarks against recognized and reliable international subject matter sources (list found in the section below).
A2. We make a detailed assessment of the risk list from A1. It starts with us looking at the findings from A1 against the documentation and the knowledge StrongPoint has about the suppliers in question. Normally, the supplier's risk will be handled, and the supplier will receive a new low-risk status. For suppliers where the risk has not been handled, we will obtain the necessary information and documentation to map the risk better. We will then conduct a new risk assessment where the supplier is normally involved. The supplier will receive either a "low risk" or a "high risk" status. If the risk is high, the next step is to make an action plan.
A3. Here, measures are drawn up and planned to reduce the risk uncovered in A2. This can be local audits, contract changes, and measures that stop or reduce the negative impact. Necessary internal and external resources are involved, and an action plan is drawn up with those responsible.
A4. We have reached the time when the measures we have decided on in A3 are implemented. This is documented continuously to see that the measures are having an effect.
A5. Evaluation and learning cycle. We confirm that the measures resolved identified risks and reduced the negative impact. Conducts evaluation meetings and suggests improvements to avoid similar situations in the future.
A6. All process steps and actions should be documented.
Table: Process description
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics | |||
|---|---|---|---|
| In-store Productivity | |||
| Payment Solutions | |||
| Checkout Efficiency | |||
| Shop Fitting | |||
| Other Retail Technology |
MARKETS
| Scandinavia |
|---|
| Baltics & Finland |
| Spain |
| UK & Ireland |
| Rest Of Europe |
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Assessment of risk
StrongPoint uses the following sources as a basis for its due diligence assessments of suppliers:
Sources:
Freedom House: https://freedomhouse.org/reports/nations-transit/nationstransit-methodology The International Trade Union Confederation (ITUC): https://www.ituc-csi.org/ EPI: https://epi.yale.edu/epi-results/2022/component/epi
Transparency International: https://www.transparency.org/
In the assessment we specifically look at the following:
-
- Country risk
-
- Industrial risk
-
- Type and legal entity of the company
-
- Geographical distance and cultural distance
-
- Relationship to StrongPoint (time and quality)
-
- Risk potential (magnitude)
An essential part of establishing a tool for our risk assessment has been to determine threshold values for the different risk areas i.e., when is a country good enough at safeguarding fundamental human rights or decent working conditions? The above-mentioned assessment sources have recommendations that StrongPoint has chosen to use. Based on a point scale from 0 to 100, StrongPoint has the following threshold values as guidelines in our assessments:
Corporate Human Rights Benchmark
| Theme | Source | Measures |
|---|---|---|
| Fundamental Human Rights |
Freedom House | Measures political freedom and individual rights. Political diversity, freedom of expression, legal due process, and financial dependencies and supression. |
| Decent working conditions |
International Trade Union Confederation |
Summarises data from unions on employment conditions in different countries. Measures the right to establish and join labour unions, collective negotiations, and the right to go on strike. |
| Environment | Environmental Performance Index (EPI) |
Measures different countries contribution and impact on the environment. Environmental health (40%): Polution in air, water and from heavy metals. Eco-systems (60%): Bio diversity, de-foresting, fisheries, suage, greenhouse emissions, and nitrogen emissions from agriculture |
| Anti-corruption | Transparency International | Measures the extent of corruption in the government sector in different countries based on 12 expert opinions from institutions and 16 surveys. |
| Source | Threshold | Explanation | |||
|---|---|---|---|---|---|
| Freedom House | Minimum 35 | Countries with score below 35 are considered "Not Free". Countries with score above 35 are considered "Partly Free" or "Free". |
|||
| International Trade | Minimum 60 | Scores below 60 are not considered acceptable. |
|||
| Environmental Performance Index (EPI) |
Minimum 50 | Scores are rated from red to green per country. Red (not acceptable) is in the range of 0-50. |
|||
| Transparency International |
Minimum 50 | Countries with score below 50 are considered to be among the more corrupt societies. |
|||
| When needed, we also use references from the following sources: | |||||
| Global Slavery Index | |||||
| Global Rights Index Country Reports on Human Rights Practices |
|||||
| Human Rights Watch | |||||
| UN: Working Group on Business and Human Rights | |||||
| Universal Human Rights Index (UHRI) | |||||
| Business Human Rights |
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Due Diligence Account
StrongPoint will on a yearly basis, or if any significant changes occur, update the due diligence account report and publish this on our web pages before the 30th of June each year.
Right to Information
The right to information is an integral part of the Transparency Act. Any individual or organization has the right to request information from StrongPoint on how we as a company address actual and potential adverse impacts, both in general or to specific products or services. We have published information and standard information request forms on our web pages. Requests are routed to the SVP People and Organization. They will be responded to in writing no later than three weeks after receiving the request.
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
V. The Norwegian accounting act §3-3, and compliance with EUs Non Financial Reporting Directive (NFRD)
Reference is made to the following statements, with description of the company's guidelines for handling such conditions including carried out due diligence assessments:
- On environment page 42-43 of this report
- On social conditions and working environment page 44-45 of this report
- On equality and non-discrimination page 52-54 of this report
- On compliance with human rights page 44 of this report
- On combating corruption and bribery page 44 of this report
- On the company's business model page 9 of this report
- On performance indicators and effects of the guidelines page 53-54 of this report
StrongPoint will report according to the Corporate Sustainability Reporting Directive (CSRD) from 2025.
VI. Statement on equality and non-discrimination
The following sections provide information on the status of diversity and inclusion in StrongPoint and the activities being undertaken to identify and analyze the risk of discrimination and actions to improve our D&I performance under the Norwegian Equality and Anti-Discrimination Act.
Program statements
StrongPoint find diverse perspectives to be essential to delivering on our long term strategic agenda. Diversity allows us to think, approach challenges and solve problems differently. StrongPoint is committed to providing equitable employment opportunities and treating all employees fairly and respectfully. StrongPoint employees and business units shall only use merit, qualifications, and other professional criteria as a basis for employee-related decisions, such as recruitment, training, performance, compensation, and promotion. We strive to develop programs and actions to encourage a diverse organization based on the principle of equitable opportunities. StrongPoint is committed to the principles of non-discrimination and does not tolerate any form of harassment or bullying in the workplace.
We are working to ensure equal opportunities for all employees and prevent discrimination based on gender, pregnancy, leave in connection with childbirth or adoption, care responsibilities, ethnicity, religion, belief, disability, sexual
orientation, gender identity, gender expression, or combinations of these grounds globally, and shall seek to prevent harassment, sexual harassment, and gender-based violence.
All figures presented are for the Norwegian company StrongPoint ASA, including all subsidiaries.
Identifying and mitigating D&I-related risks
We use our employee engagement surveys, StrongPoint Peakon eNPS pulse surveys, to identify and monitor risks relating to diversity and inclusion. We also use the internal grievance mechanism AlertLine to assess the risk of discrimination and harassment in the organization and track relevant employee data from our core employee system.
Our Peakon survey also allows us to assess employee engagement and psychosocial risk indicators across different demographics, including gender, age, and roles.
The index consists of seven diversity, inclusion, and equality related questions. The Peakon index score is part of the Executive Management KPIs.
The business areas are expected to develop targets based on their scores, act on the findings from the risk assessments, develop roadmaps, ensure responsibility is taken, and report progress to eliminate discrimination. Every quarter the executive team oversees trends and analyze root causes.
D&I is embedded in all people processes, including recruitment, onboarding, and succession planning, and is included in all employee and leadership development programs.
We have identified critical risk areas/obstacles for equality, diversity and discrimination to be:
- Recruitment
- Culture
- Leadership
- Work-life balance
Recruiting employees from various countries, backgrounds, and cultures may challenge how we communicate and follow up with employees. Regarding leadership, poor gender balance can create a perception of unequal career development opportunities and represent a talent retention risk. We also see that StrongPoint's growth strategy, combined with a performance-driven culture, might create high expectations and workloads for employees, making work-life balance challenging for some.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
| Scandinavia |
|---|
| Baltics & Finland |
| Spain |
| UK & Ireland |
| Rest Of Europe |
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
2024 performance
On recruitment, we have worked actively to improve gender balance on all levels/departments/countries and promote the recruitment of qualified individuals with disabilities or special needs requirements.
On Culture and Leadership, we have continued the focus and understanding of our purpose and values (see page 6).
We have pushed for gender balance at all leadership events and diverse leadership teams through systematic succession planning.
We are continuously tracking our population regarding work-life balance, and our 2024 engagement survey showed increased scores in most BUs in this area.
We have benchmarked executive payments and how it relates to gender diversity. During the past year, we have continued to focus on aligning our policies across the different business units and within the countries of operation.
We assess the compensation and benefit equality as part of the yearly salary review and conduct a benchmark survey. We found only minor disparities in 2024 and have adjusted them individually.
StrongPoint has steadily progressed in the D&I area the past years and is satisfied with the trend.
In 2025 the company will especially focus on recruitment practices to support the D&I agenda.
Average age of employees in StrongPoint is 42.5 years in 2024 (42.9 years in 2023). With female average age of 41.4 years old and males 42.7.
| SP Cash | ALS | SP UAB | SUM | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SP AB | SP S.L.U. | Tech SL SP E-com AB | SP AS | ALS UK ALS Ireland | Bulgaria Hamari SP ASA | Group | StrongPoint | |||||
| Average FTE: | 83.1 | 32.0 | 12.3 | 26.2 | 47.8 | 50.0 | 13.0 | 13 | 5.5 | 4.0 | 207.1 | 494 |
| Number of employees per 31.12.2024 | 80 | 29 | 11 | 25 | 45 | 57 | 14 | 15 | 5 | 4 | 212 | 497 |
| Number of FTE per 31.12.2024 | 79.8 | 28.8 | 11.0 | 25.0 | 43.0 | 56.2 | 13.6 | 14.0 | 5.0 | 4.0 | 211.5 | 491.8 |
| Sick leave | 0.20% | 0.74% | 11.00% | 0.150% | 3.00% | 0.60% | 3.00% | 5.20% | 0% | 0% | 0.20% | 1.00% |
| Number of women | 15 | 6 | 3 | 8 | 5 | 13 | 3 | 7 | 2 | 1 | 49 | 112 |
| Average salary men | 555 | 488 | 407 | 725 | 875 | 680 | 674 | 199 | 962 | 2570 | 560 | 625 |
| Average salary women | 587 | 629 | 475 | 749 | 667 | 560 | 389 | 177 | 451 | 1250 | 507 | 536 |
| Part time women | 0 | 0 | 0 | 0 | 0 | 3 | 1 | 0 | 0 | 0 | 2 | 6 |
| Part time men | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| - Of which number of involuntary part-time female employees 31.12 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| - Of which number of involuntary part-time male employees 31.12 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Temporary employees | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Parental leave | 9/6,43 weeks |
1/18 weeks |
11/6,43 weeks |
2/24 weeks |
12/22 weeks |
35/13,1 weeks |
Table: Measures in 2024.
PRODUCT SEGMENTS
| E-Commerce Logistics | |
|---|---|
| In-store Productivity | |
| Payment Solutions | |
| Checkout Efficiency | |
| Shop Fitting | |
| Other Retail Technology | |
MARKETS
| Scandinavia |
|---|
| Baltics & Finland |
| Spain |
| UK & Ireland |
| Rest Of Europe |
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Gender-related salary differences
StrongPoint policy is that all employees shall receive a total compensation that is competitive and aligned with local industry standards. The compensation should also be performance-oriented, transparent, fair and objective. Salaries in the organisation are reviewed regularly (minimum every second year). Positions and pay grades are established and compared both on a group and individual level.
No significant gender-pay differentials were found, and this corresponded with the general assessment of the previous years. Still, we adjusted salaries to approximately 15 employees to align them with relevant pay groups. Employees earning collective negotiated wages in Sweden also had no significant gender-pay differentials. When setting up and comparing pay groups we looked at and compared the need for knowledge, problem-solving, accountability, and the overall working conditions for every position. Each employee's base salary, benefits, pension cost, short and long term incentives were assessed (total remuneration).
The average salary of men was NOK 625,000 (NOK 580,000 in 2023), and women NOK 536,000 (NOK 492,000 in 2023). The significant year-over-year uplift is caused by inflation driving high salary increases, and a currency effect since it is reported in NOK.
VII. Remuneration to the Chief Executive Officer (CEO) and other senior executives report
The Board of Directors are required to, in accordance to the Public Limited Liability Companies Act § 6-16 a and b and regulation 11.12.2020 no. 2730, prepare principles and report on remuneration to the Chief Executive Officer (CEO) and other senior executives. StrongPoint presents this report as a separate document to the Annual General Meeting, and it is published on our website.
| Level/ Employee groups |
Female | Male | Total | Female average total remu neration in percent of the median |
Male average total remu neration in percent of the median |
|---|---|---|---|---|---|
| 10-12 | 14 | 22 | 37 | 104% | 96% |
| 13 | 13 | 64 | 77 | 95% | 102% |
| 14 | 30 | 79 | 108 | 97% | 101% |
| 15 | 25 | 75 | 101 | 97% | 100% |
| 16 | 11 | 69 | 80 | 104% | 102% |
| 17 | 11 | 29 | 39 | 98% | 105% |
| 18-25 | 7 | 48 | 55 | 93% | 103% |
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
| Reference/Target | 2024 goals | Status | 2025 goals | Key actions |
|---|---|---|---|---|
| ENVIRONMENT AND CLIMATE | Update the Double materiality impact assessment. |
Updated and reported | Start reporting according to the Corporate Sustainability Reporting Directive (CSRD). |
Implement a new reporting model in all Business Units. |
| ENVIRONMENT AND CLIMATE | Start mapping eligible activities as described in the EU taxonomy. |
Implemented. | ||
| ENVIRONMENT AND CLIMATE | Plan and test Environmental Product Declaration (EPD)/Life Cycle assessment for the refurbishment business |
Deferred as part of cost-reduction initiatives. |
||
| ENVIRONMENT AND CLIMATE | Prepare a new goals structure in 2024/2025 as part of the Science Based Targets Initiative. |
Became member and started verification process. |
Report SBTi targets. | Report and get approval of new targets from SBTi. |
| PEOPLE AND WORKING ENVIRONMENT | Establish e-learning platform. | Deferred as part of cost-reduction initiatives. |
Establish learning platform cross StrongPoint Group. |
|
| PEOPLE AND WORKING ENVIRONMENT | IT security ISO certification implemented in all StrongPoint. |
Became certified in 2024. | Re-certification. | |
| OPERATIONAL SUSTAINABILITY INITIATIVES | Document energy consumption in Haugaland facility |
Implemented. |
Annex: Goals and status on progress
Our main indicators related to our three key prioritized sustainability focus areas:
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
EXECUTIVE MANAGEMENT
JACOB TVERAABAK CEO
Jacob Tveraabak was previously the CEO of Miklagruppen (Bavaria Nordic), director of business development at Rema 1000 and with McKinsey & Company for 12 years. He is also the co-founder of Nabobil.no. Tveraabak has MSc degrees from the Norwegian School of Economics and Bocconi University. He holds 250,146 shares and 1,000,000 options in StrongPoint privately and through a privately owned company.
MARIUS DREFVELIN CFO
Marius Drefvelin has been a group CFO of several international tech companies, including five years at the listed company Techstep ASA. Prior to this, he has been a financial advisor in the transaction teams of Deloitte and KPMG, as well as an investment manager at Jebsen Asset Management AS. Drefvelin holds BSc degrees in Finance and Economics from the University of Utah and is a Certified European Financial Analyst from the Norwegian School of Economics. He holds 21,364 shares and 275,000 options in StrongPoint.
KNUT OLAV NYHUS OLSEN SVP People & Organization, Marketing and Communication
Knut Olav N. Olsen was previously the position as Chief People Officer in Canal Digital, Telenor Satellite and Telenor Pakistan. Previously also working as CHRO in Skanska and EVP in ISS Facility Services. Olsen holds a master's degree in law and a finance degree from the University of Bergen, with additional management training from IMD and INSEAD. He is the co-founder and board member of Terrosa Consulting. He holds 46,995 shares and 350,000 options in StrongPoint.
JULIUS STULPINAS SVP Technology and Supply Chain
Julius Stulpinas has 15 years of experience within StrongPoint related companies, leading and transforming sales, service, product development organizations and teams. He has MSc degree of Engineering from Kaunas University of Technology and MBA from a consortium of Baltic Management Institute, HEC Paris, NHH Norwegian School of Economics and Copenhagen Business School. He holds 49,321 shares and 325,000 options in StrongPoint.
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
MAGNUS ROSÉN SVP Norway and Sweden
Magnus Rosén has more than 20 years' experience from retail in various management roles, including the role as business director e-commerce at ICA. Magnus have throughout his career predominantly worked with retail management, business development and technology development in the grocery retail space. He holds 27,307 shares and 275,000 options in StrongPoint.
RIMANTAS
MAŽULIS
SVP Baltics & Finland
Rimantas Mažulis has 15 years of experience in retail technologies within StrongPoint. During that time, he held various positions in retail solution design & development area. Rimantas Mažulis holds a degree of Engineering Informatics
from Kaunas University of
Technology (2004) and currently in progress with Executive MBA (2022) master's degree by a consortium of Baltic Management Institute, HEC Paris. He holds 44,951 shares and 400,000 options
in StrongPoint.
LORENA GÓMEZ SVP Spain
Lorena Gomez has extensive experience in managing and scaling sales in the retail sector across Europe and has been sales director for the retail technology division at HMY Group, a company she has been with since 2006. Since 2014 she was responsible for the newly formed Retail Technology division at the Group level. Lorena Gomez holds a degree in Industrial Design Engineering from the University of Zaragoza and a Master's degree in Innovation Management. She holds 35,119 shares and 300,000 options in StrongPoint.
ALEX EVELEIGH SVP UK & Ireland
Alex Eveleigh started in StrongPoint in January 2024. He has over 15 years of experience working in the grocery retail industry, holding senior positions at Asda, Aldi and Ocado. In these roles he led teams across various domains, including in-store operations, online grocery fulfillment, automation and robotics. Most recently, he served as the VP of Business Development & Strategy and as the Director of Growth at Takeoff Technologies, a grocery e-commerce automation company, where he oversaw sales, strategy development, implementation, and operations. He holds 0 shares and 100,000 options in StrongPoint.
EXECUTIVE MANAGEMENT
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
2024 Board of Directors' report
Events after the balance sheet date
No major events have occurred after the balance sheet date.
Segments
The Group reported on two segments in 2024: Scandinavia and International incl. R&D. In addition, the financial statement includes detailed revenue information for geographic and product segments.
The Group delivers proprietary solutions within In-store Productivity, E-commerce, Payment Solutions and Checkout Efficiency, as well as tailormade retail solutions from leading third-party suppliers, including, Electronic Shelf Labels (ESL), POS, ERP and Digi scales and wrapping systems. The business governance is based on reported sales revenues, EBITDA and EBIT for the two business areas Scandinavia and International incl. R&D.
Scandinavia
The business segment Scandinavia currently consists of the operating business units in Norway and Sweden. The revenue also includes some deliveries to other parts of the Nordics like Denmark and Iceland.
International incl. R&D
The business segment International incl. R&D consists of the operating business units in the Baltics, Finland, Spain and UK/Ireland, in addition to partner sales in the rest of Europe and rest of world. The ongoing R&D activities for own products have been allocated to this area.
2024 FINANCIAL REVIEW
- y Operating revenues for StrongPoint Group declined by 2% to 1,309 MNOK (1,342).
- y Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to 2 MNOK (-1), and profit after tax was -32 MNOK (-34).
- y Total assets per 31 December 2024 were 1,028 MNOK (1,014) and equity was 465 MNOK. This resulted in an equity ratio of 45 per cent.
- y Net interest-bearing liabilities amounted to 60 MNOK at the end of 2024.
- y The Group has a cash pool arrangement that includes most business units, ensuring efficient utilization of liquidity and cash flow. Disposable funds end of year was 102 MNOK, of which 20 MNOK was available credit facility. Cash flow from operational activities was 93 MNOK (25), and working capital decreased by 73 MNOK in 2024.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Employees and organization
StrongPoint aims to be a workplace with a safe and positive working environment. All employees receive a competitive total compensation aligned with local industry standards. The Group has taken active measures aimed at promoting employees' professional development, preventing sick leave and improving the overall working environment. All employees in the Group have employment contracts that comply with local market standards and legislation.
The Group had 497 employees as of 31 December 2024. Total sick leave in the company were estimated at 1.0% in 2024 compared to 2.5% the previous year.
No employees were reported injured and there were no reported accidents during the year.
The company has share incentive programs for the executive management and all the employees. 186,746 shares were distributed in 2024.
The Group aims to be an inclusive workplace with equality between women and men, based on qualifications, without regard to age, religion or origin. The Group's Board of Directors comprises 40% women.
There were 112 women among the Group's 497 employees at the end of the year. StrongPoint is an equal opportunity employer, and diversity and inclusion are imperative to the way StrongPoint does business. More information on the status of gender equality and how we comply with section 26 of the Equality and Anti-Discrimination Act can be found under the ESG section on page 52 of the annual report.
Product development
The Group owns intellectual property within cash management, checkout efficiency and e-commerce. StrongPoint continues to invest in and maintain the current solutions, as well as developing and funding new solutions. In 2024, development costs of 30.9 MNOK were capitalized, comprising 27.9 MNOK related to the development of a new cash management solution and 3.0 MNOK related to our own POS solution (Tree Commerce).
Risk
Historically, the Group's key markets have been robust and stable, as investments in the retail grocery sector have not been significantly affected by financial and macroeconomic changes. In 2024, however, the continued increase in inflation and interest rates put additional pressure on the market condition, resulting in lower customer spending. Moreover, global component shortages, supply chain delays, pandemic restrictions and other international macro instabilities may impact the Group's financial performance. The Group managed the risk by close dialogue with key suppliers and also used the strong liquidity situation to increase inventory in order to reduce the risk of delay in future deliveries.
The Group's operations are exposed to currency risk, and in 2024 this had a negative impact on the Scandinavian operations. Currency risk is managed operationally in customer contracts, but there is a time lag between the currency
STRONGPOINT SEGMENTS
The 2024 financial statements include two reporting segments: Scandinavia and International incl. R&D.
| MNOK | Year | MNOK | Year | ||
|---|---|---|---|---|---|
| Scandinavia | 2024 | 2023 | International incl. R&D | 2024 | 2023 |
| Norway | 345.9 | 340.3 | Baltics & Finland | 274.5 | 255.5 |
| Sweden | 302.9 | 293.6 | Spain | 74.1 | 87.6 |
| Total Revenue | 648.8 | 633.9 | UK & Ireland | 224.8 | 283.5 |
| EBITDA | 55.0 | 41.5 | Rest of Europe | 86.9 | 81.9 |
| - In % | 8.5 % | 6.5% | Total Revenue | 660.3 | 708.5 |
| EBT | 49.5 | 35.1 | EBITDA | -26.6 | -10.4 |
| - In % | 7.6 % | 5.5% | - In % | -4.0 % | -1.5% |
| EBT | -72.2 | -51.5 | |||
| - In % | -10.9% | -7.3% |
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
change and the increased (or decreased) price to customers. Receivables and liabilities are exposed to financial risk, which is reduced by a thorough, actionbased follow-up on an ongoing basis. These matters also have implications for liquidity risk. The Group has managed liquidity risk by closely monitoring anticipated future operational cash flow, as well as available cash and credit facilities.
StrongPoint has a worldwide Directors' and Officer's liability insurance with a limit of approx. 4% of revenue.
From an overall assessment of customer satisfaction, market position, market demand and financial position, the Board of Directors considers that there is a solid basis for continued operations, and the annual financial statements were prepared with the assumption of a going concern.
In the opinion of the Board, the income statement, balance sheet and notes presented are a true and fair view of the company's position and profit from activities in 2024. The Board of Directors are not aware of any other matters relevant for assessing the company beside what is stated in the annual report.
Ownership and corporate governance
StrongPoint's policy on corporate governance is presented in the Group's Annual Report and on the corporate website.
The policy contains information pursuant to Section 3-3b of the Accounting Act and the Norwegian Code of Practice for Corporate Governance except some noted deviations.
The Group's ongoing business performance, organizational competence and capacity and capital structure were the main focus of Board meetings in 2024. The Board held eleven scheduled board meetings and six extraordinary meetings in 2024. All board members are considered to be independent board members, with a 96% participation rate during the year.
Every year, the Board performs a board evaluation survey, which is discussed and acted upon to constantly improve the work of the Board of Directors. Parts of StrongPoint's Group management team are also invited to participate in the survey, and the results are also shared with the nomination committee. StrongPoint ASA hired consultancy services valued at KNOK 100 from TLT Leadership AS where Board member Ingeborg Hegstad owns 50% of the company. There has not been any other transactions with any Board members and employees in 2024.
The Board has three subcommittees: an audit committee, a nomination committee and a remuneration committee. The audit committee comprises two Board members. The committee reviewed quarterly and annual financial statements, as well as the Group's main risk categories. The committee also
assessed its internal controls, including internal controls related to financial reporting, as well as the quality of risk management systems and audit work. The nomination committee consists of three external members. The remuneration committee consists of two Board members. The remuneration committee continues to evaluate and benchmark the total remuneration program every year.
Ethics, environment and corporate social responsibility
Corporate social responsibility and sustainability are integral to StrongPoint's operations. This means economic, social and environmental aspects are considered before making decisions. Broad confidence and credibility are essential for StrongPoint to meet its business objectives. The Group has achieved this by creating and maintaining a culture built on high ethical standards and integrity. The policy includes information pursuant to Section 3-3c of the Accounting Act.
StrongPoint's operations follow established public procedures to prevent pollution of the external environment and comply with relevant international and local legislation and standards. Some subsidiaries sell and store products classified as environmentally hazardous if the waste is not managed in accordance with applicable regulations. Subsidiaries have contracts with authorised return and recycling companies. There were no emissions of environmentally harmful substances in 2024. StrongPoint's customers have the option to return products at the end of their life to ensure they are handled in an environmentally responsible manner. StrongPoint´s focus on environment, social, and governance (ESG) are reported separately in the annual report. In 2024, the main topics were employee working environment, health and safety, product innovation, quality and safety, corporate governance including ethics and anti corruption and environment and climate, including emissions and waste management.
StrongPoint works actively with suppliers to understand how climate changes can influence the business and try to reduce the risk by identifying and implementing alternative components, reduced production redundancy and reduce emission by searching for more optimal transportation routes.
Corruption and whistleblowing
StrongPoint has zero tolerance for corruption. This applies to all employees, companies and persons acting on behalf of the Group. StrongPoint's zero tolerance means, among other things, that no gratuities may be offered or received, beyond a symbolic value, and no benefits may be received on behalf of either the Group or any employee personally.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
The Group has whistleblowing procedures in place. It is important to report policy violations or inappropriate conduct in a responsible manner.
The audit committee is responsible to handle whistleblowing incidents reported directly to the Board.
Shareholder relations
As of 31 December 2024, StrongPoint had a share capital of NOK 27,830,778 allocated to 44,888,352 shares with a face value of NOK 0.62. At the end of 2024, the Group held 194,374 treasury shares at an average price of NOK 22.75. There were 2,268 shareholders in the company at the end of 2024. The 20 largest shareholders represented 53.8 per cent of total share capital. At the end of 2024, 288 shareholders owned 10,000 shares or more.
StrongPoint is not aware of any agreement between shareholders limiting the ability to trade shares or exercising voting rights represented by shares in the Group.
Outlook
StrongPoint's E-Commerce and In-Store solutions and services are considered to be well positioned at the crossroads of multi-channel retailing: online growth and cost-cutting in retail stores.
From a North European and grocery focused starting point, StrongPoint will pursue a three-step approach to geographical expansion and growth:
• Roll-out of the full portfolio of solutions in key markets, including Norway, Sweden, Finland, the Baltics, UK&Ireland and Spain, utilizing our strong sales, service and support organization, applying innovative tools and sharing of best practices.
• Selling StrongPoint's proprietary solutions in a selected number of countries beyond key markets. The list of solutions includes grocery e-commerce, self-checkout, shop fitting and cash management solutions.
• Utilizing StrongPoint´s market access platform for global retail technology
providers targeting leading retailers in the key markets, leveraging StrongPoint´s strong market and one-stop-shop position.
As a foundation for creating shareholder value, StrongPoint growth strategy is based on profitable and organic growth, M&A initiatives, cost control and a solid balance sheet. The Group frequently presents its long term goals as part of a Strategy Update Session.
The Board of Directors underlines that growth is not expected to be linear, and investments in products and sales resources to enable growth, will influence the EBITDA. The overall growth ambitions can further be influenced by global component shortages, supply chain delays, pandemic restrictions and other international macro and geopolitical instabilities. The Board also acknowledges that the time from pilots to roll-outs and scale-up for new solutions is difficult to predict, and this might sometimes be reflected in rather significant variations in the reported numbers between the quarters.
Parent company - StrongPoint ASA
StrongPoint ASA is the holding company for the Group's legal entities. The company is listed on the Oslo Stock Exchange under the ticker "STRO". The parent company, StrongPoint ASA, has four employees.
StrongPoint ASA's loss for the year was -6.9 MNOK compared to a profit of 7.1 MNOK in 2023.
Proposal for allocation of profit for the year:
The Board of Directors will propose to the general meeting the following allocation of profit for the year in the parent company StrongPoint ASA for 2024:
Profit for the year:
NOK - 6,856,985.54
Transferred from other equity: NOK 6,856,985.54
Oslo, 19 March 2025
Morthen Johannessen Chairman
Ingeborg Molden Hegstad Director
Cathrine Laksfoss Director
Audun Nordtveit Director
Pål Wibe Director
Jacob Tveraabak CEO
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
E-Commerce Logistics In-store Productivity Payment Solutions Checkout Efficiency Shop Fitting Other Retail Technology
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
BOARD OF DIRECTORS
MORTHEN JOHANNESSEN Chairman
Morthen Johannessen has more than 20 years' experience as CEO/ Managing director of international businesses. In Tomra he first served as CEO for the European business, and later as Group COO & head of the Global Business Development division. Prior to Tomra Morthen was CEO of Pepsico`s beverage business in Western-Europe. He currently works as an industrial advisor and professional board member of a number of companies in various industries. Johannessen holds a Master of Business Administration (HD) from CBS, Copenhagen. He has been on the Board of StrongPoint since April 2016, and Chairman from April 2018. He holds 147,584 shares in StrongPoint.
INGEBORG MOLDEN HEGSTAD Director
Ingeborg Hegstad has 20 years of experience from management consulting, including McKinsey & Company and Egon Zehnder. Since 2015 Hegstad has been a partner in Imsight AS, offering strategy and leadership advisory to executives, teams and organizations. She has experience from the Board of Directors of Cxense ASA (2017-2019), Q-Free ASA (2018-2021), Cyviz ASA (2021-onwards) and Gjensidige Mobility Group (2023-onwards). Hegstad holds a Master of Business and Administration from Norwegian Business School BI (2000). She has been a Board member in StrongPoint since April 29, 2020. She holds 30,826 shares in StrongPoint.
AUDUN NORDTVEIT Director
Audun Nordtveit has more than 10 years' experience from finance and investment operations, including with Norges Bank Investment Management and UBS. Since 2018, he has worked as an investment manager at the investment company Sole Active AS. Nordtveit holds an M.Sc. of Industrial Economics and Technology Management from NTNU and an MBA from Columbia Business School. He has been a member of the Board of StrongPoint since 27 April 2023. He holds 28,296 shares in StrongPoint.
CATHRINE LAKSFOSS Director
Cathrine Laksfoss is CEO of Schibsted Ecommerce & Distribution as, and head of Ecommerce development across Schibsteds companies and Schibsteds distribution activities. She has led the transformation of the traditional newspaper distribution to an ecommerce growth group by founding and scaling growth companies. She is Chair of Boards in Helthjem Netthandel AS, morgenlevering. no, Distribution Innovation AS and serves on the boards of Bookis.no and Dooris ab. She has previous experience from Posten Bring and management consulting and holds an MBA from HEC Paris and a Masters degree in marketing from the Norwegian Business School. She has been a Board member in StrongPoint since April 28, 2022. She holds 10,435 shares in StrongPoint.
PÅL WIBE DIRECTOR Director
Pål Wibe has more than 30 years experience from management consulting and retail. 25 of those years from different leadership positions within retail in a unique breadth of sectors from grocery to travel retail to discount variety retail in various forms and lately sport & outdoor. He was the CEO of XXL ASA from 2020-2022, the CEO of Europris ASA from 2014-2020, the CEO of Nille from 2006-2013 and the CEO of Travel Retail Norway from 2004-2006. He is now an advisor, investor and Board Member/Chair in different companies from early stage tech companies to larger retailers and public corporations like Europris ASA, Posten Bring AS, Forte Group AS, AKA Eiendom AS, Holdbart AS and Whiteaway Group AS (DK). He has been on the Board of StrongPoint since April 25, 2024. He holds 3,868 shares in StrongPoint.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Corporate Governance
Good corporate governance is vital to the success of StrongPoint ASA. Thus, corporate governance is a key concern for StrongPoint's Board and employees, and in StrongPoint ASA's relations with its subsidiaries. The Board has reviewed and updated the company's corporate governance practice. It is in line with the Accounting Act, section 3-3b and the Norwegian Code of Practice for Corporate Governance, except where deviations from the Code are noted. The presentation adheres to the same order of topics as the fifteen items in the Code.
StrongPoint is compliant to all item in the code except item 3: The board has an authorization to make an overall capital increase of up to 9,000,000 shares that is not limited to a defined purpose. The shareholders' preferential rights according to cf. section 10-14 of the Public Limited Liability Companies Act can be disregarded. The board has authorization to acquire up to 4,400,000 own shares that is not limited to a defined purpose.
1. Implementation and reporting on corporate governance
StrongPoint ASA's corporate governance principles are determined by the Board of Directors and are set forth in the company's management documents. The Board's role is based on the principle of independence from the executive management and the principle of equality and responsibility towards the company's shareholders. The company's shares are freely tradable, and the Board/executive management considers it a priority to focus on activities that strengthen the liquidity of its shares. The company's shareholder policy is based on the principle of one share – one vote. Related to potential acquisitions and restructuring situations, the Board will exercise particular concern so that all shareholders' investments and interests are considered closely. One of the Board's main tasks is to ensure that the company is based on an optimized capital structure. Equity transactions, including authorizations for share capital increases, are to be justified in terms of extent, form and timing. The Board and executive management must ensure that the company's information policies ensure that information regarding the company is published correctly, comprehensively and timely, contributing to a correct valuation of the company's shares. Further, the information policy should give shareholders the best possible foundation for decisions related to investments and voting at general meetings.
Values, ethical guidelines and guidelines for corporate social responsibility
The group's operations shall be conducted in accordance with the company's values, ethical guidelines and guidelines for social responsibility determined by the Board and Executive Management. In addition, we shall through our activities contribute to a responsible business conduct. StrongPoint ASA's guidelines are presented on the company's website.
2. Business
The company's business objective is described in the company's articles of association. StrongPoint is a retail technology company that provides solutions to make shops smarter, shopping experiences better and online grocery shopping more efficient. The business objective ensures that shareholders have control of the business and its risk profile, without limiting the Board or management's ability to carry out strategic and commercially appropriate decisions within the defined purpose. The articles of association of StrongPoint ASA are presented on the group's website: strongpoint.com. The company's objectives and main strategies are presented in the annual report.
Key figures 2022-2024 Our Purpose CEO Statement Chair's Perspective Our Values Megatrends Our Focus Our Solutions 2024 Highlights
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
3. Equity and dividends
Equity
The Group's equity as of 31 December 2024 amounted to 465.2 MNOK corresponding to an equity ratio of 45.3 per cent.
The company's share capital is NOK 27,830,778.24, divided into 44,888,352 shares with a nominal value of NOK 0.62.
Dividends
StrongPoint's shareholders should over time get a competitive return on their investment through a combination of cash dividends and increased value of their shares.
When deciding the annual dividend level, the Board of directors will take into consideration expected cash flow, investments in organic growth, plans for growth through mergers and acquisitions, and needs for appropriate financial flexibility.
In addition to cash dividends, StrongPoint ASA may buy back shares as part of its total distribution of capital to the shareholders.
Board authorizations
The Board's proposals for future Board authorizations accord with the recommendations with two exceptions. The first concerns the Board's authorization to increase share capital by up to 9,000,000 shares, which is not limited to a defined purpose.
Secondly, the Board has an authorization to acquire treasury shares at par value of up to NOK 2,728,000 and an overall capital increase of up to 4,400,000 shares. The authorization is not limited to a defined purpose.
The Board has asked the General Meeting for these authorizations to increase the group's maneuverability.
Both authorizations are valid until the next general meeting or 30 June 2025, whichever comes first.
4. Equal treatment of shareholders and transactions with close associates
The company has a single class of shares, and all shares carry the same rights related to the company. Equal treatment of all shareholders is essential. Transactions involving the company's own shares are executed on the Oslo Stock Exchange, except for the repurchase of minor shareholdings from
shareholders with 500 or fewer shares. In the event of material transactions between the company and a shareholder, Board member, member of executive management, or a party closely related to any of the beforementioned, the Board will ensure that independent valuations are made available.
Board members and members of executive management shall report to the Chairman of the Board and the group CEO if they directly or indirectly have significant interests in agreements entered into by StrongPoint ASA or companies in which StrongPoint ASA has significant interests. Additional information on transactions with related parties appears in note 18 in the consolidated accounts. Existing shareholders shall have pre-emptive rights to subscribe for shares in the event of share capital increases, unless otherwise indicated by special circumstances. If the pre-emptive rights of existing shareholders are waived in a share capital increase, the reasons for this waiver shall be explained by the Board of directors and be published through the Oslo Stock Exchange distribution system and on the company website.
5. Freely negotiable shares
StrongPoint ASA's shares are freely negotiable. There are no restrictions on transferability in the company's articles of association.
6. General meetings
Meeting notification, registration and participation
The company encourages all shareholders to participate at general meetings. Notices of general meetings and comprehensive accompanying information are made available to shareholders on the company's website and sent to shareholders within the deadlines stated in the Norwegian Public Limited Liability Companies Act. The deadline for shareholders to register to attend a general meeting is set as close to the date of the meeting as possible, normally two or three days prior to the meeting. The company is of the opinion that no adequate systems for handling electronic participation at general meetings are currently available. Thus, the Board has decided not to allow such participation at StrongPoint ASA's general meetings. From 2020, the articles of association allow for digital execution of general meetings, and regulates that votes in advance can be registered. This allows for improved shareholder engagement cross borders.
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
shareholders. The company considers that shareholders' interests are adequately safeguarded by the option to participate through an appointed proxy or voting in advance. Procedures for attendance registration and granting proxy are presented in the notice, on the attendance and proxy form and on the company website.
Meeting chair, voting, etc.
Board members, the chairman of the nomination committee, and the company's auditor are encouraged to attend general meetings. The general meeting is led by the Chairman of the Board or someone elected by the general meeting.
The nomination committee focuses on composing a board that works as a team, that meets legally established regulations as to equal gender representation on boards of directors, and whose members' experience and qualifications complement each other. Minutes of general meetings are published as soon as practical via the Oslo Stock Exchange distribution system and on the company website.
7. Nomination committee
Proxy and votes in advance When the general meeting is held digitally, the shareholders can send in votes in advance. Shareholders who are unable to attend a meeting may vote by proxy. The company has prepared forms that enable shareholders to vote on individual issues. Procedures for using such forms are available on the company's website. The company does not appoint an independent proxy to vote on behalf of takes care of the shareholders' and the company's need for expertise, capacity and diversity. Care should be taken that the Board functions effectively as a cooperative body. Proposals for Board candidates are to be submitted in reasonable time before the general meeting. The annual general meeting will, in accordance with the Code of Practice, be presented with the guidelines governing the duties of the nomination committee for approval. The duties of the nomination committee are found on the company website.
The company has a nomination committee, as stated in the articles of associations, which consists of: Hilde Horn Gilen (Chairman), Inger Johanne Solhaug and Are Juklestad Berg. The nomination committee consists of no fewer than three members. Each member is normally elected for a two-year period. The composition of the nomination committee should ensure the interests of shareholders and independence from the Board and executive management.
Nomination committee members and its chairman are elected by the company's general meeting, which also determines remuneration payable to committee members.
In accordance with StrongPoint ASA's articles of association, the nomination committee recommends candidates for election to the Board of Directors. In addition, the nomination committee recommends a candidate for Chairman. The nomination committee also makes recommendations on remuneration of Board members. The nomination committee is to justify its recommendations, how it
8. Corporate assembly and Board of Directors, composition and independence
In accordance with the company's articles of association, the Board comprises between 5 and 11 members. Board members are elected for a period of one year. The Board members are independent of the company's executive management and its significant business associates. No member of the company's executive management is a Board member. CEO Jacob Tveraabak has ownership interests in StrongPoint ASA privately and trough his company Celo Industries AS. The current composition of the Board is presented on the company website. The Board members' expertise is also presented. In 2024, the Board of Directors had 17 meetings.
Board members' shareholdings are presented in note 9 to the consolidated accounts. Board members are encouraged to invest in the company's shares, and also receive shares as part of the remuneration. The Board members represent a combination of expertise and experience from finance, industry and organizations. The nomination committee's reasoned proposal for candidates will be presented on the company website.
9. The work of the Board of Directors
The Board of StrongPoint ASA annually adopts a plan for its work, emphasizing goals, strategies and implementation. Also, the Board has adopted board instructions that regulate areas of responsibility, tasks and division of roles of the Board, the Chairman of the Board and the Chief Executive Officer. The Board instructions also feature rules governing Board schedules, notice and chairing of Board meetings, decision-making, the Chief Executive Officer's duty and right to disclose information to the Board, professional secrecy, impartiality and other issues. The Board evaluates its own performance and expertise once a year through a survey. The Board has an audit committee, which consists of Chairman of the Board Morthen Johannessen and the Board member
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Audun Nordtveit. The Board evaluates the competence of the audit committee members to be sufficient. The audit committee sets the agenda according to the tasks set in Allmennaksjelovens §6-43. In 2024, there were 17 board meetings.
10. Risk management and internal control
The Board of Directors of StrongPoint ASA is ultimately responsible for the group's business operations and is to ensure that the company maintains solid in-house control practices and appropriate risk management systems tailored to the company's business activities.
StrongPoint ASA is exposed to currency and interest risk, market risk, credit risk and operational risk at its underlying companies. Management of operational risk primarily takes place at each underlying operating company, reported to Group management, and evaluated and handled to the best for the company.
StrongPoint takes an active role on Boards of Directors in subsidiaries. As a rule, all companies have established effective risk management procedures. Management of financial market exposure, including currency, interest and counterparty risk, is presented in greater detail in note 17 to the parent company accounts. StrongPoint has adopted a series of policies to support this, including:
- Financial reporting, financial and risk management.
- Ethics and social responsibility.
- Authorization conditions, including instructions for the Board and CEO, as well as certification authority.
- Audit committee.
- Accounting manual regulating group accounting policies, risk accruals and internal control.
The Audit committee and the Board reviews the company's most important risk areas and internal control systems and procedures, and the main elements of these assessments are presented in the Board of Directors' report. The audit committee also serves as a preparatory group in connection with the quarterly report and reviews the major events, the directors' report, balance sheet, income statement items and notes to the interim financial statements together with the administration before the report is presented to the Board.
11. Remuneration of the Board
Board remuneration reflects the Board's responsibility, expertise, time spent and the complexity of the business. Remuneration does not depend on StrongPoint's financial performance. There are no option programs for any Board members.
20% of gross remuneration to the Board shall be used for share purchases until the value of the shares corresponds to a minimum of one year's gross remuneration. The annual general meeting determines Board remuneration following recommendations by the company's nomination committee. Board members are elected because of their expertise and knowledge. Directors or their related companies should not undertake special assignments for the company in addition to their Board appointments. However, if they do, the whole Board should be informed. Fees for such assignments must be approved by the Board. All remunerations are specified in the financial statement. Additional information on remuneration paid to Board members for 2024 is presented in note 9 to the consolidated accounts.
12. Remuneration of executive personnel
The Board has adopted guidelines for remuneration of executive management in accordance with section 6-16a of the Norwegian Public Limited Liability Companies Act. The Board of Directors determines the remuneration of the CEO. StrongPoint ASA implemented a Long Term Incentive Program in 2020 represented as a Stock Option program. The program has ambition to both motivate and retain executive management and key personnel to achieve the overall strategic ambitions, and has been granted in the years 2020, 2021, 2022, 2023 and 2024. The company's guidelines and further information on remuneration for 2024 for members of StrongPoint's executive management is presented in note 9 to the consolidated accounts. Additional information will be shared in a remuneration report to be presented to the General meeting in 2024. Some members of StrongPoint's executive management maintain the company's interests as board members of other StrongPoint companies. They do not personally receive board remuneration for this. StrongPoint has a worldwide Directors' and Officer's liability insurance with a limit of approx. 4% of revenue.
13. Information and communications
The company has prepared a policy for investor relations (IR), which determines guidelines for contact with shareholders apart from the general meeting. The company's reporting of financial and other information is based on transparency and equal treatment of interested parties.
The long-term purpose of StrongPoint's IR activities is to ensure access to capital at competitive terms for the company and correct pricing of shares for shareholders. These goals are to be accomplished through accurate and timely distribution of information that can affect the company's share price; the company
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
is also to comply with current rules, regulations and market practices, including
14. Take-overs
In a bid situation, StrongPoint's Board of Directors and management have an independent responsibility to help ensure that shareholders are treated equally, and that the company's business activities are not disrupted unnecessarily. The Board has a particular responsibility to ensure that shareholders are given sufficient information and time to form a view of the offer. The Board of Directors will not seek to hinder or obstruct take-over bids for the company's activities or shares unless there are particular reasons for this. An agreement with the bidder to limit the company's ability to obtain other offerings on the company's shares will only be entered into when it clearly can be attributed to the company and shareholders' common interest. The same applies to an agreement to compensate the bidder if the offer is not completed. Any compensation shall be limited to the cost the bidder has incurred in making the bid. Agreements between the company and provider of importance for the market's assessment of the offer should be made public no later than the alert that the offer is made. In the event of a take-over bid for the company's shares, the company's Board of Directors will
the requirement of equal treatment. All stock exchange notices and press releases are published on the company's website. Stock exchange notices are also available at: newsweb.oslobors.no. All information that is distributed to shareholders is published through the Oslo Stock Exchange distribution system and on the company website. The company intends to host public presentations of its financial reporting and these meetings are webcasted simultaneously. The company's financial calendar is found on the company website. not exercise mandates or pass any resolutions with the intention of obstructing the take-over bid unless this is approved by the general meeting following announcement of the bid. If an offer is made for the company's shares, the company's Board of Directors will issue a statement making a recommendation as to whether shareholders should or should not accept the offer. The Board's statement on the offer will make it clear whether the views expressed are unanimous, and if this is not the case it should explain the basis on which specific members of the board have excluded themselves from the Board's statement. The Board will arrange a valuation from an independent expert. The valuation will include an explanation and will be made public no later than at the time of the public disclosure of the Board's statement.
15. Auditor
The auditor participates in the Board meeting that decides the annual accounts. The auditor audit material changes in the company's accounting principles and assessments of material accounting estimates with the Board. Further, the auditor has provided the Board with written confirmation that the requirement of independence is met. The Board and the audit committee meet with the auditor without the presence of representatives of executive management. The audit committee determines guidelines for executive management's access to use the auditor for services other than auditing and receives an overview of services rendered by the auditor to the company. Remuneration for auditing and other services are presented in note 5 to the StrongPoint ASA accounts. Such details are presented to the annual general meeting.
Oslo, 19 March 2025
Morthen Johannessen Chairman
Ingeborg Molden Hegstad Director
Cathrine Laksfoss Director
Audun Nordtveit Director
Pål Wibe Director
Jacob Tveraabak CEO
| Key figures 2022-2024 |
|---|
| Our Purpose |
| CEO Statement |
| Chair's Perspective |
| Our Values |
| Megatrends |
| Our Focus |
| Our Solutions |
| 2024 Highlights |
PRODUCT SEGMENTS
| E-Commerce Logistics |
|---|
| In-store Productivity |
| Payment Solutions |
| Checkout Efficiency |
| Shop Fitting |
| Other Retail Technology |
MARKETS
Scandinavia Baltics & Finland Spain UK & Ireland Rest Of Europe
ESG
About The ESG Report Material Changes Annex: Goals And Status On Progress
GOVERNANCE
Board Of Directors' Report Corporate Governance Investor Relations
FINANCIAL STATEMENTS
Consolidated Financial Statements Financial Statements StrongPoint ASA Auditor's Report
Investor Relations
StrongPoint ASA strives to have an open investor relations policy towards its shareholders and the market in general. The most important events for shareholder information and updates are the quarterly presentations and the Strategy Update Session. In addition, StrongPoint uses its website, meetings and direct communication to provide investors and analysts with relevant information. Information for shareholders is available at strongpoint.com and ose.no (ticker STRO).
StrongPoint ASA has frequent contact with investors and analysts to provide the best possible information regarding the group's financial situation and development. The market is informed of orders and or contracts worth 10 MNOK or more, as well as orders that are considered strategically important.
StrongPoint ASA is a public limited company and is established under Norwegian law. The company is listed on the Oslo Stock Exchange. The Group's issued share capital is NOK 27,830,778 allocated as 44,888,352 shares, each with a nominal value of NOK 0.62, all fully paid and issued in accordance with Norwegian law. The company has one class of shares.
For more information
Marius Drefvelin CFO Tel: +47 95 89 56 90 E-mail: [email protected]
Marius Drefvelin CFO
FINANCIAL CALENDAR 2025
Q1 – 29.04 Q2 – 11.07 Q3 – 17.10 Annual General Meeting – 29.04
Webcast will be available at our website www.strongpoint.com from CET 07.00.
SHARE INFORMATION
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Consolidated income statements of comprehensive income
| KNOK | Note | 2024 | 2023 |
|---|---|---|---|
| Operating revenue | 3 | 1,309,066 | 1,342,398 |
| Cost of goods sold | 12 | 779,109 | 805,266 |
| Payroll | 9 | 366,508 | 366,782 |
| Share based compensation | 9 | 4,232 | 6,395 |
| Other operating expenses | 5, 16, 27 | 157,179 | 165,244 |
| Total operating expenses | 1,307,027 | 1,343,687 | |
| EBITDA | 2,039 | -1,288 | |
| Depreciation tangible assets | 10 | 29,261 | 26,996 |
| Amortization intangible assets | 11 | 12,256 | 11,163 |
| Total depreciations and impairments | 41,517 | 38,159 | |
| Operating profit | -39,478 | -39,448 | |
| Financial expenses | 8 | 22,588 | 17,646 |
| Financial income | 6, 8 | 15,284 | 11,763 |
| Total financial items | -7,304 | -5,884 | |
| Profit before tax | -46,783 | -45,331 | |
| Income tax expense | 26 | -14,853 | -11,132 |
| Profit/loss after tax | -31,930 | -34,200 |
| KNOK | Note | 2024 | 2023 |
|---|---|---|---|
| Other comprehensive income net of tax | |||
| Items that may be reclassified through profit or loss in later periods | |||
| Exchange differences on foreign operations | 16,207 | 32,894 | |
| Total comprehensive income | -15,723 | -1,305 | |
| Earnings per share | |||
| Earnings per share | 23 | -0.72 | -0.77 |
| Diluted earnings per share | 23 | -0.66 | -0.72 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Consolidated balance sheet
| KNOK | Note | 31.12.2024 | 31.12.2023 |
|---|---|---|---|
| ASSETS | |||
| Intangible assets | 11 | 152,326 | 125,327 |
| Goodwill | 11 | 179,875 | 174,325 |
| Tangible assets | 10 | 29,748 | 30,397 |
| Right-of-use assets | 10 | 96,647 | 99,568 |
| Associated companies | 6 | 798 | 853 |
| Other long term investments | 7 | 4,001 | 4,001 |
| Other long term receivables | 13 | 896 | 1,372 |
| Deferred tax assets | 26 | 45,979 | 31,106 |
| Total fixed assets | 510,271 | 466,949 | |
| Inventories | 12 | 173,151 | 230,424 |
| Accounts receivables | 13, 17 | 223,238 | 240,790 |
| Prepaid expenses | 13 | 28,236 | 22,032 |
| Other current receivables | 13 | 10,351 | 14,955 |
| Cash and cash equivalents | 14 | 82,490 | 39,340 |
| Total current assets | 517,467 | 547,541 | |
| TOTAL ASSETS | 1,027,738 | 1,014,490 |
| KNOK | Note | 31.12.2024 | 31.12.2023 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Share capital | 24 | 27,831 | 27,831 |
| Treasury shares | 24 | -121 | -217 |
| Other equity | 437,493 | 447,238 | |
| Total equity | 465,203 | 474,852 | |
| Long term interest-bearing liabilities | 15 | 1,318 | 4,983 |
| Long term lease liabilities | 15 | 68,664 | 83,513 |
| Other long term liabilities | 22 | 602 | 1,848 |
| Deferred tax liabilities | 26 | 16,547 | 18,111 |
| Total long term liabilities | 87,132 | 108,455 | |
| Current interest-bearing liabilities | 15 | 128,163 | 7,962 |
| Bank overdraft | 15 | - | 94,153 |
| Short term lease liabilities | 15 | 26,190 | 14,316 |
| Accounts payable | 140,789 | 159,690 | |
| Tax payable | 26 | -4,557 | -10,603 |
| Public duties payable | 27,927 | 33,871 | |
| Other short term liabilities | 22,27 | 156,890 | 131,794 |
| Total short term liabilities | 475,403 | 431,183 | |
| TOTAL LIABILITIES | 562,535 | 539,638 | |
| TOTAL EQUITY AND LIABILITIES | 1,027,738 | 1,014,490 |
Oslo, 19 March 2025
Morthen Johannessen Chairman
Ingeborg Molden Hegstad Director
Cathrine Laksfoss Director
Audun Nordtveit Director
Pål Wibe Director
Jacob Tveraabak CEO
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Consolidated cash flow statement
| KNOK | Note | 2024 | 2023 |
|---|---|---|---|
| Ordinary profit before tax | -46,783 | -45,331 | |
| Net interest | 13,798 | 9,617 | |
| Tax paid | 4,953 | -26,047 | |
| Share of profit, associated companies | 6 | -245 | -191 |
| Depreciation tangible assets | 10 | 29,261 | 26,996 |
| Amortization intangible assets | 11 | 12,256 | 11,163 |
| Gain/-loss on sale of tangible assets | 10 | -446 | -235 |
| Change in inventories | 64,709 | 17,169 | |
| Change in accounts receivables | 27,868 | 52,485 | |
| Change in accounts payable | -24,871 | -170 | |
| Change in other accrued items | 12,604 | -20,275 | |
| Net cash flow from operational activities | 93,105 | 25,182 | |
| Payments for fixed assets | 10 | -8,581 | -17,643 |
| Payment for intangible assets | 11 | -31,545 | -23,425 |
| Sale of tangible assets (sales proceeds) | 10 | 756 | 467 |
| Acquisition of subsidiaries, net of cash acquired | 4 | - | -2,357 |
| Interest received | 8 | 3,503 | 1,604 |
| Dividends received from associated companies | 6 | 300 | 300 |
| Net cash flow from investment activities | -35,568 | -41,054 |
| KNOK | Note | 2024 | 2023 |
|---|---|---|---|
| Sale of own shares | 24 | 1,852 | 4,410 |
| Payment long and short term debt | 15 | -6,501 | -111 |
| Payment of leasing commitments | 15 | -22,534 | -24,444 |
| New loan | 15 | 120,000 | - |
| Change in overdraft | 15 | -91,799 | 75,664 |
| Interest paid | 8 | -17,301 | -11,221 |
| Dividends paid | - | -39,935 | |
| Net cash flow from financing activities | -16,282 | 4,363 | |
| Net cash flow in the period | 41,255 | -11,510 | |
| Cash and cash equivalents at the start of the period | 39,340 | 47,248 | |
| Effect of foreign exchange rate fluctuations on foreign currency deposits | 1,896 | 3,602 | |
| Cash and cash equivalents at the end of the period | 14 | 82,490 | 39,340 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Consolidated statement of changes in equity
Other paid in equity are funds which can be allocated by the General Assembly.
1) The balance sheet is converted with the closing rate at the balance sheet date, while the income statement is converted with the average monthly exchange rate. The net effect of the translation is recognized as translation differences in other comprehensive income and expenses. See exchange rates in note 21.
| Other equity | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| KNOK | Note | Share capital |
Treasury shares |
Other paid-in equity |
Translation variances |
Share Option Program |
Other equity |
Total equity |
Minority interest |
Total equity |
| Equity at 31.12.2022 | 27,831 | -362 | 351,262 | 32,755 | 11,301 | 84,422 | 507,207 | - | 507,207 | |
| Profit for the year after tax | -32,231 | -32,231 | -1,968 | -34,200 | ||||||
| Other comprehensive income and expenses 1) | 32,837 | 32,837 | 57 | 32,894 | ||||||
| Total comprehensive income | - | - | - | 32,837 | - | -32,231 | 606 | -1,911 | -1,305 | |
| Sale of own shares | 24 | 74 | 2,444 | 2,518 | 2,518 | |||||
| Dividend 2022 paid in 2023 | 24 | -39,935 | -39,935 | -39,935 | ||||||
| Acquisition of Hamari paid in shares | 4 | 72 | 1,821 | 1,892 | 1,892 | |||||
| Share Option Program | 9 | 4,475 | 4,475 | 4,475 | ||||||
| Equity at 31.12.2023 | 27,831 | -217 | 351,262 | 65,592 | 15,776 | 16,521 | 476,763 | -1,911 | 474,852 | |
| Profit for the year after tax | -30,435 | -30,435 | -1,495 | -31,930 | ||||||
| Other comprehensive income and expenses 1) | 16,327 | 16,327 | -120 | 16,207 | ||||||
| Total comprehensive income | - | - | - | 16,327 | - | -30,435 | -14,108 | -1,615 | -15,723 | |
| Sale of own shares | 24 | 97 | 1,755 | 1,852 | 1,852 | |||||
| Share Option Program | 9 | 4,222 | 4,222 | 4,222 | ||||||
| Equity at 31.12.2024 | 27,831 | -121 | 351,262 | 81,919 | 19,998 | -12,159 | 468,729 | -3,526 | 465,203 | |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 1: General information
StrongPoint ASA is based in Norway with registered office at Brynsengveien 10 in the municipality of Oslo. The company is listed at the Oslo Stock Exchange with the ticker STRO. The group's main business is the development, sale and implementation of innovative, integrated technology solutions to retailers especially within the grocery segment but also other segments like Do-It-Yourself or pharmacies. The group has two reporting segments: "Scandinavia" and "International incl. R&D".
The proposed annual financial statements are prepared with the assumption of a going concern and were adopted by the board and CEO on the date shown on the signed balance sheet. The annual financial statements will be approved by the ordinary general meeting 29 April 2025.
Note 2: Accounting principles
Basic principles
The consolidated financial statements are prepared in accordance with IFRS Accounting Standards as adopted by the EU and associated interpretations and with additional Norwegian disclosure requirements pursuant to the Accounting Act, Stock Exchange Regulations and stock exchange rules applicable to financial statements completed by 31.12.2024. The consolidated financial statements have been produced based on historical costs.
The consolidated financial statements are presented in thousand Norwegian kroner unless otherwise stated.
Estimates and judgements
In preparing the consolidated financial statements, management makes various accounting estimates and assumptions that form the basis of the presentation, recognition and measurement of StrongPoint's assets and liabilities.
Determining the carrying amounts of some assets and liabilities requires estimates and assumptions concerning future events. Estimates and assumptions are based on historical experience and other factors, which management assesses to be reasonable, but which by their nature involve uncertainty and unpredictability. These assumptions may have to be revised as unexpected events or circumstances may occur. The areas that involve a high degree of estimation uncertainty and usage of management's judgement are described in more detail in note 25.
Translation of foreign currency
The accounts of individual entities within the group are measured in the local currency in each country (functional currencies). The functional currencies mainly consist of NOK, SEK, EUR and GBP. The consolidated financial statements have been prepared in NOK, which is both the functional currency and the reporting currency of the parent company and the Norwegian subsidiary.
The balance sheet is converted with the closing rate at the balance sheet date, while the income statement is converted with the average monthly exchange rate. The net effect of the translation is recognized as translation differences in other comprehensive income.
Equity and cost of equity
Share option program
The equity-settled share-based option program is a part of the total remuneration plan for the Group management team. The option program is designed to align and incentivize management performance with shareholder value creation and to attract and retain high calibre executive management and key personnel.
The share options will be allocated to the Participants based on company- and individual goal achievement, and at the Board's discretion. The Board will take into consideration the company's goals and strategies as well as targeted performance for executive management, when granting options. The option plan is a performance-based remuneration scheme reflecting the underlying longterm value creation of the company. The limits for the allocation of share options to the Participants is determined by the board, within the board mandates approved by the general meeting.
Provisions
If the effect is significant the provision is calculated by expected future cash flows and, if relevant, any risks specifically linked to the obligation. Provisions for warranties are recognized when the underlying products and services are sold. The provisions are based on historic warranty cost weighted with probability.
Financial instruments
For Financial instruments we have the the following material accounting policies:
Financial assets
Initial recognition and measurement
The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Group's business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in two categories:
- Financial assets at amortised cost (debt instruments)
- Financial assets at fair value through profit or loss
Financial assets at amortised cost (debt instruments)
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of profit or loss.
Financial liabilities
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative financial instruments.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in two categories:
- Financial liabilities at fair value through profit or loss
- Financial liabilities at amortised cost (loans and borrowings)
Financial liabilities at fair value through profit or loss
Financial assets at fair value are carried in the balance sheet at fair value with net changes in fair value recognised in the statement of profit or loss.
Financial liabilities at amortised cost (loans and borrowings)
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the effective interest rate amortisation process.
Borrowing costs
Borrowing costs are recorded when the borrowing costs occurs. Borrowing costs are capitalized when directly related to the purchase or manufacture of a qualifying asset.
Government grants
Government grants are recognized if there are reasonable assurance that the company will meet the criteria of the grant and the grant will be awarded. The recognition of operating grants shall be recognized systematically during the grant period. In Norway we can apply for Skattefunn, where we can get a 19% refund of R&D expenses related to spesific projects.
Cash flow statement
The cash flow statement is presented using the indirect method.
New standards and interpretations
No new principles with effects on recognition and measurement.
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 3: Segment information
Accounting policies
Revenue recognition
Long-term service and license agreements are recognized linearly over the contracted period.
The Group's sales of products and services are considered to be separate performance obligations according to IFRS 15. The assessment is supported by independence between product sales and sales of services and that both types of sales are based on market prices without cross-subsidisation. The performance obligation related to the sale of products is fulfilled upon installation by the customer (at a point in time) and the performance obligation related to service agreements is fulfilled on a linear basis over the contract period (over time).
The segment information is based on reported revenues, EBITDA, EBT and assets for the legal entities included in the segment, with eliminations of internal items within the segment. Intra-group items are included in the column Eliminations. Eliminations consists of internal sales with associated costs, intercompany balances, goodwill, intangible assets and other group postings. Internal sales are based on market prices.
Management fee invoiced from StrongPoint ASA to subsidiaries is not included in the segment statements.
Segments
The Group has two segments: Scandinavia and International incl. R&D. The financial statements include revenue information for both geographic and product information in the current reporting.
The business segment Scandinavia currently consist of the operating business units in Norway and Sweden. The revenue also includes some deliveries to Denmark. The business segment International incl. R&D consists of the operating business units in the Baltics, Finland, Spain and UK/ Ireland, in addition to partner sales in the rest of Europe and rest of world. The ongoing R&D activities for own products have been allocated to this segment.
The Group delivers proprietary solutions within In-store Productivity, E-commerce, Payment Solutions and Checkout Efficiency, as well as tailor-made retail solutions from leading third-party suppliers, including Electronic Shelf Labels (ESL), POS, ERP and Digi scales and wrapping systems. The group management has in the fiscal year 2024 governed the business based on reported sales revenues, EBITDA and EBIT for the two business areas Scandinavia and International incl. R&D.
Revenue per product segment
| KNOK | 2024 | 2023 |
|---|---|---|
| - Products | 292,870 | 219,693 |
| - Services | 111,893 | 100,056 |
| In-store Productivity | 404,763 | 319,749 |
| - Products | 115,866 | 148,186 |
| - Services | 120,557 | 111,285 |
| Payment Solutions | 236,423 | 259,472 |
| - Products | 121,591 | 117,564 |
| - Services | 60,621 | 44,408 |
| Check Out Efficiency | 182,212 | 161,972 |
| - Products | 43,811 | 86,940 |
| - Services | 70,639 | 39,666 |
| E-commerce logistics | 114,451 | 126,606 |
| - Products | - | - |
| - Services | 196,124 | 283,466 |
| Shop Fittting | 196,124 | 283,466 |
| - Products | 72,814 | 89,651 |
| - Services | 102,279 | 101,483 |
| Other retail technology | 175,093 | 191,132 |
| - Products | 646,952 | 662,036 |
| - Services | 662,114 | 680,362 |
| Total sales revenue | 1,309,066 | 1,342,398 |
| ASA/Elim | Consolidated | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||
| 22,360 | 230,437 | |||||
| 123,535 | 109,845 | |||||
| 345,895 | 340,282 | |||||
| 152,479 | 155,231 | |||||
| 150.409 | 138.364 | |||||
| 302,888 | 293,595 | |||||
| 142,484 | 136,829 | |||||
| 131,969 | 118,713 | |||||
| 274,453 | 255,542 | |||||
| 51,905 | 67,586 | |||||
| 22,187 | 19,985 | |||||
| 74,093 | 87,570 | |||||
| 1,037 | 0 | |||||
| 223,797 | 283,466 | |||||
| 224,834 | 283,466 | |||||
| 76,686 | 71,953 | |||||
| 10,218 | 9,990 | |||||
| 86,904 | 81,943 | |||||
| 646,952 | 662,036 | |||||
| 662,114 | 680,362 | |||||
| 1,309,066 | 1,342,398 | |||||
| -26,316 | -32,371 | 2,039 | -1,288 | |||
| -24,045 | -28,975 | -46,783 | -45.331 | |||
| 126,250 | 167.026 | 1,027,738 | 1.014.490 | |||
| -60,014 | -62,734 | 562,535 | 539,638 | |||
| -19.464 | -24,153 | 255,600 | 311,524 | |||
| 26 | 8,581 | 17,643 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Segment and geographical information
EBITDA is operating profit before depreciation, amortization interest and tax. EBT is profit before tax.
Working capital is inventory plus accounts receivables minus accounts payables There are no customers that represent 10% or more of revenues in the individual business areas in 2024 and 2023. Revenue per customer is based on sales per legal entities.
| Scandinavia | International incl. R&D | ASA/Elim | Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| KNOK | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| - Products | 222,360 | 230,437 | 222,360 | 230,437 | ||||
| - Services | 123,535 | 109,845 | 123,535 | 109,845 | ||||
| Norway | 345,895 | 340,282 | - | - | - | - | 345,895 | 340,282 |
| - Products | 152,479 | 155,231 | 152,479 | 155,231 | ||||
| - Services | 150,409 | 138,364 | 150,409 | 138,364 | ||||
| Sweden | 302,888 | 293,595 | - | - | - | - | 302,888 | 293,595 |
| - Products | 142,484 | 136,829 | 142,484 | 136,829 | ||||
| - Services | 131,969 | 118,713 | 131,969 | 118,713 | ||||
| Baltics & Finland | - | - | 274,453 | 255,542 | - | - | 274,453 | 255,542 |
| - Products | 51,905 | 67,586 | 51,905 | 67,586 | ||||
| - Service | 22,187 | 19,985 | 22,187 | 19,985 | ||||
| Spain | - | - | 74,093 | 87,570 | - | - | 74,093 | 87,570 |
| - Products | 1,037 | - | 1,037 | 0 | ||||
| - Services | 223,797 | 283,466 | 223,797 | 283,466 | ||||
| UK & Ireland | - | - | 224,834 | 283,466 | - | - | 224,834 | 283,466 |
| - Products | 76,686 | 71,953 | 76,686 | 71,953 | ||||
| - Services | 10,218 | 9,990 | 10,218 | 9,990 | ||||
| Rest of Europe | - | - | 86,904 | 81,943 | - | - | 86,904 | 81,943 |
| - Products | 374,838 | 385,668 | 272,113 | 276,368 | - | - | 646,952 | 662,036 |
| - Services | 273,944 | 248,209 | 388,170 | 432,153 | - | - | 662,114 | 680,362 |
| Total sales revenue | 648,783 | 633,877 | 660,284 | 708,522 | - | - | 1,309,066 | 1,342,398 |
| EBITDA | 54,961 | 41,485 | -26,606 | -10,403 | -26,316 | -32,371 | 2,039 | -1,288 |
| EBT | 49,502 | 35,119 | -72,239 | -51,475 | -24,045 | -28,975 | -46,783 | -45,331 |
| Assets | 333,538 | 406,984 | 561,418 | 440,480 | 126,250 | 167,026 | 1,027,738 | 1,014,490 |
| Liabilities | 112,905 | 201,103 | 503,112 | 401,269 | -60,014 | -62,734 | 562,535 | 539,638 |
| Working capital | 125,722 | 185,989 | 149,341 | 149,687 | -19,464 | -24,153 | 255,600 | 311,524 |
| Investment in fixed assets | 2,216 | 5,110 | 6,365 | 12,508 | - | 26 | 8,581 | 17,643 |
Note 4: Changes in the group structure
There have not been any changes in the group structure in 2024.
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 5: Other operating expenses
1) Of which TNOK 845 applies to auditors other than EY. Auditors fee are exclusive of VAT, with the exception of transaction expenses.
Note 6: Investment in associated companies
StrongPoint ASA owns 49,9997% of the shares in Spok AS. StrongPoint does not have any defacto control. The company performs services on behalf of StrongPoint AS.
StrongPoint ASA had the following investments in associated companies per 31 December 2024:
An overview of financial information about the associated company, based on 100%:
Note 7: Shares in other companies
The shares are booked at fair value with level 3 in the fair value hierarchy. Any changes in the value that can be reliably determined, will be booked through the P&L.
In March 2021, StrongPoint announced a partnership with humanoid robotics company 1X Technologies, giving StrongPoint distribution rights within grocery retail in the countries in which we operate. The shares owned in 1x Holding AS are not related to this distribution agreement. The shares in Plata Capital Europe AS (former Settle Group AS) were written down to 0 in 2018 and the fair value is evaluated to be unchanged.
| KNOK | 2024 | 2023 |
|---|---|---|
| Rent, electricity, cleaning | 17,337 | 16,962 |
| Vehicles | 13,964 | 14,317 |
| Other consultancy fees | 25,438 | 38,450 |
| IT | 45,765 | 44,927 |
| Travel | 13,222 | 11,632 |
| Marketing | 10,329 | 9,984 |
| Other costs | 31,125 | 28,972 |
| Total | 157,179 | 165,244 |
| Specification of recognized auditors fee: | 2024 | 2023 |
|---|---|---|
| Fee for auditing services | 3,928 | 3,924 |
| Fee for other services | 277 | 145 |
| Total 1 | 4,206 | 4,069 |
| KNOK | Stake | Cost price Book value | Dividend paid in |
Share of net profit |
Book value |
|||
|---|---|---|---|---|---|---|---|---|
| Entity | Country | Industry | 31.12.2024 | 31.12.2024 | 31.12.2023 | 2024 | 2024 | 31.12.2024 |
| Spok AS | Norway | Service company | 50.0 % | 1,700 | 853 | -300 | 245 | 798 |
| Total | 1,700 | 853 | -300 | 245 | 798 |
KNOK 2024
| Current | Fixed | Profit for | ||||
|---|---|---|---|---|---|---|
| Entity | assets | assets | Debt | Equity | Turnover | year |
| Spok AS | 5,304 | 1,442 | 3,658 | 1,596 | 14,954 | 361 |
| Total | 5,304 | 1,442 | 3,658 | 1,596 | 14,954 | 361 |
| KNOK | 2024 | 2023 | ||
|---|---|---|---|---|
| Cost | Market | Cost | Market | |
| Company | price | value | price | value |
| Other long term investments: | ||||
| Plata Capital Europe AS | 476 | - | 476 | - |
| 1X Holding AS | 4,001 | 4,001 | 4,001 | 4,001 |
| Total | 4,477 | 4,001 | 4,477 | 4,001 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 8: Financial items
Currency differences relating to the payment of purchases are recorded as cost of goods and constitutes a cost of KNOK 306 in 2024 (cost of KNOK 1,684 in 2023).
Currency differences relating to the payment of sales revenues are recorded as sales revenues and constitutes a revenue of KNOK 1,905 in 2024 (cost of KNOK 953 in 2023).
1) Of which KNOK 1,686 in reversal of earn-out related to the aquisitoin of Hamari in 2023.
2) The interest expenses have increased due to higher interest rates and higher utilization of the overdraft.
3) Other financial expenses are primarily related to restructing of loans and financial liabilities.
Note 9: Payroll costs and number of employees
Salaries and remuneration for Executive Management Team and Directors
Remuneration to the Chief Executive Officer (CEO) and other senior executives will be presented in a separate Renumeration report to the Annual General Meeting, and will be published on our webpages.
| 2024 | 2023 |
|---|---|
| 3,503 | 1,604 |
| 9,466 | 9,818 |
| 245 | 191 |
| 2,070 | 150 |
| 15,284 | 11,763 |
| -12,794 | -6,924 |
| -4,507 | -4,297 |
| 111 | -1,840 |
| -5,398 | -4,585 |
| -22,588 | -17,646 |
| -7,304 | -5,884 |
Accounting policies
a) Pension commitments
The employees in StrongPoint have pension schemes in line with local statutory and obligatory company pension schemes, and are in general recognized as a defined contribution plan.
b) Bonus schemes
The group recognizes a provision and a cost for bonus schemes. The group recognizes a provision where there are contractual obligations or a precedent that generates a self-imposed obligation.
c) Share program
The Group has a share program for the executive management where the CEO has the opportunity to buy shares for up to NOK 1,000,000 per year with 20% discount with a 3 years lock-in period and the other members have the opportunity to buy shares for up to NOK 500,000 per year with 20% discount with a 3 years lock-in period. In addition, all permanent employees in a StrongPoint legal entity, are offered to buy shares for up to NOK 35,000 per year with a 20% discount. The discount is recognized as a personnel cost.
| KNOK | 2024 | 2023 |
|---|---|---|
| Salaries | 263,064 | 262,080 |
| Severance packages | 8,864 | 8,382 |
| Director's fee and Nomination Committee | 2,872 | 2,240 |
| Social fee | 47,125 | 46,449 |
| Pension costs | 16,353 | 15,728 |
| Other payroll costs | 28,230 | 31,903 |
| Total payroll costs | 366,508 | 366,782 |
| Number of full-time employees employed during the year: | 494 | 514 |
| Number of full-time employees at the end of the year: | 492 | 524 |
| KNOK | 2024 | 2023 |
|---|---|---|
| Board of Directors | ||
| Director's fee | 2,050 | 2,082 |
| Executive Management Team | ||
| Salaries | 16,690 | 19,200 |
| Bonus | 2,162 | 2,771 |
| Company car | 1,092 | 1,022 |
| Exercised options | 392 | 2,156 |
| Other remuneration | 1,469 | 902 |
| Pension expenses | 1,789 | 1,866 |
| Total salaries and remuneration | 25,645 | 29,998 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
The following members of the Executive Management Team and Board of Directors own shares or share options in the company per 31.12:
1) Morthen Johannessen ownes the shares privatly and through the company Motri AS.
2) Ingeborg Molden Hegstad ownes the shares privatly and through the company Imsight AS.
3) Jacob Tveraabak ownes the shares privately and through the company Celo Industries AS.
4) Member of the Board until 25 April 2024
Members of the Extended Group Management Team and key employees have stock options:
Vesting conditions
* Weighted average parameters at grant of instrument
Outstanding instruments Year End - Option
| Shares per | Shares per | Options per | Options per | |
|---|---|---|---|---|
| Name, position | 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| Board of Directors | ||||
| Morthen Johannessen, Chairman 1 | 147,584 | 112,135 | ||
| Ingeborg Molden Hegstad, Director 2 | 30,826 | 25,602 | ||
| Cathrine Laksfoss, Director | 10,435 | 5,211 | ||
| Audun Nordtveit, Director | 28,296 | 23,072 | ||
| Pål Wibe, Director | 3,868 | |||
| Peter Wirén, former Director 4 | - | 40,607 | ||
| Total | 221,009 | 166,020 | - | - |
| Name, position | Shares per 31.12.24 |
Shares per 31.12.23 |
Options per 31.12.24 |
Options per 31.12.23 |
|---|---|---|---|---|
| Executive Management Team | ||||
| Jacob Tveraabak, CEO 3 | 250,146 | 230,843 | 1,000,000 | 750,000 |
| Marius Drefvelin CFO from 01.09.23 | 21,364 | - | 275,000 | 150,000 |
| Knut Olav Nyhus Olsen, SVP People & Organisation, and head of Marketing and Internal Communication |
46,995 | 31,227 | 350,000 | 275,000 |
| Gisle Elvebakken, SVP Norway to 31.08.24 |
- | 47,645 | - | 350,000 |
| Julius Stulpinas, SVP Technology & supply chain |
49,321 | 38,365 | 325,000 | 250,000 |
| Rimantas Mažulis, SVP Baltics | 44,951 | 30,523 | 400,000 | 325,000 |
| Lorena Gómez, SVP Spain | 35,119 | 19,846 | 300,000 | 200,000 |
| Chris Mackie, SVP E-commerce to 31.01.24 |
- | 25,104 | - | 125,000 |
| Magnus Rosén, SVP Sweden | 27,307 | 15,886 | 275,000 | 175,000 |
| Alex Eveleigh, SVP UK & Ireland from 15.01.24 |
- | - | 100,000 | |
| Total | 475,203 | 439,439 | 3,025,000 | 2,600,000 |
| Total costs and Social Security Provisions (KNOK) | 2024 | 2023 |
|---|---|---|
| Total IFRS cost | 4 222 | 6 827 |
| Total Social security provisions | 10 | - 432 |
| 4,232 | 6,395 | |
| Granted instruments | 2024 | 2023 |
| Instrument | Option | Option |
| Quantity 31.12 (instruments) | 1 230 000 | 1 335 000 |
| Quantity 31.12 (shares) | 1 230 000 | 1 335 000 |
| Contractual life * | 5.00 | 5.00 |
| Strike price * | 10.92 | 21.34 |
| Share price * | 10.95 | 21.16 |
| Expected lifetime * | 3.25 | 3.25 |
| Volatility * | 40.44% | 43.11% |
| Interest rate * | 3.69% | 3.31% |
| Dividend * | 0.00 | 0.00 |
| FV per instrument * | 3.58 | 7.07 |
Quantity and weighted average prices
| Activity | Number of instruments |
Weighted Average Strike Price |
|---|---|---|
| Outstanding OB (01.01.2024) | 3,422,500 | 22.33 |
| Granted | 1,230,000 | 10.92 |
| Terminated | -557,500 | 21.95 |
| Outstanding CB (31.12.2024) | 4,095,000 | 18.98 |
| Vested CB | 1,772,500 | 23.06 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Method of valuation:
The fair value of share options granted is estimated at the date of grant using the Black-Scholes-Merton Option Pricing Model. The model uses the following parameters: the exercise price, the life of the option, the current price of the underlying shares, the expected volatility of the share price, the dividends expected on the shares, and the risk-free interest rate for the life of the option. The measure of volatility used in the option pricing models is the annualized standard deviation of the continuously compounded rates of return on the share over a period of time.
Vesting requirements:
The vesting of the options is dependent on the participant still being employed at Strongpoint at the time of the vesting.
Method of settlement:
All StrongPoint ASA options are intended to be settled in equity, but in the event that the Company is not capable of delivering Shares following an exercise of Options, the Company shall fulfil its obligations under this Agreement through a cash-out.
Vesting period
The options will vest over three years, with ¼ vesting after one year, ¼ after two years, and the remaining 2/4 after three years. The split in vesting underpins the retention ambition of the program. Any non-exercised options expire five years after grant.
Outstanding Instruments Overview
| Strike price |
Number of instruments |
Weighted Average remaining contractual life |
Vested instruments 31.12.2024 |
|---|---|---|---|
| 10.92 | 1,230,000 | 4.37 | - |
| 14.68 | 500,000 | 0.84 | 500,000 |
| 18.00 | 150,000 | 3.67 | 37,500 |
| 21.77 | 890,000 | 3.36 | 222,500 |
| 21.91 | 625,000 | 2.36 | 312,500 |
| 30.23 | 700,000 | 1.35 | 700,000 |
| Total | 4,095,000 | 1,772,500 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
Note 10: Tangible assets
Tangible assets, company owned
Some equipment has been fully depreciated per 31 December 2024 but is still in use. StrongPoint has no contractual purchasing obligations.
| Equipment | Total | Equipment | Total | |||||
|---|---|---|---|---|---|---|---|---|
| KNOK | Land | Buildings | owned | 2024 | Land | Buildings | owned | 2023 |
| Acquisition costs 01.01 | 825 | 8,731 | 94,764 | 104,320 | 825 | 8,731 | 79,880 | 89,436 |
| Addition | 8,581 | 8,581 | 13,845 | 13,845 | ||||
| Divestment | -2,056 | -4,773 | -6,829 | -4,434 | -4,434 | |||
| Currency exchange differences | 4,862 | 4,862 | 5,473 | 5,473 | ||||
| Acquisition costs 31.12 | 825 | 6,675 | 103,434 | 110,933 | 825 | 8,731 | 94,764 | 104,320 |
| Accumulated depreciations 01.01 | -825 | -8,731 | -64,366 | -73,922 | -825 | -8,731 | -56,125 | -65,681 |
| Depreciations | -5,649 | -5,649 | -4,537 | -4,537 | ||||
| Depreciations of the year regarding rental machines is booked as cost of gods sold |
-4,417 | -4,417 | -4,308 | -4,308 | ||||
| Divestment | 2,056 | 4,467 | 6,523 | 4,330 | 4,330 | |||
| Currency exchange differences | -3,720 | -3,720 | -3,727 | -3,727 | ||||
| Accumulated depreciations 31.12 | -825 | -6,675 | -73,686 | -81,186 | -825 | -8,731 | -64,366 | -73,922 |
| Book value 31.12 | - | - | 29,748 | 29,748 | - | - | 30,397 | 30,397 |
| Depreciation ratio | 10-33% | 10-33% | ||||||
| Depreciation method | Linear | Linear |
Accounting policies
The acquisition cost of fixed assets are depreciated linearly according to the expected useful life of the assets, which is:
- Fixtures and equipment 3–5 years
- Machinery 3-10 years
- Plant and property (production and warehouse facilities) 20 years
- Land values are not depreciated
Leasing contracts with a lifetime of more than one year and a value of KNOK 100 are booked as IFRS 16 Leases as both right-of-use assets and liabilities. Operational leases with lower value or shorter lifetime are booked as operational leases in the P&L. For lease contracts with a lease term less than 12 months or a value of the underlying asset of less than KNOK 100, the group applies the recognition exemptions and do not recognize these in the balance sheet.
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Tangible assets, right of use
See note 16 for information about the commitments related to the leasing.
| KNOK | Right of use offices |
Right of use cars and equipment |
Total 2024 |
Right of use offices |
Right of use cars and equipment |
Total 2023 |
|---|---|---|---|---|---|---|
| Acquisition costs 01.01 | 147,642 | 44,489 | 192,131 | 113,840 | 35,140 | 148,980 |
| Addition | 10,477 | 5,651 | 16,129 | 25,872 | 6,841 | 32,713 |
| Divestment | - | -899 | -899 | - | 371 | 371 |
| Currency exchange differences | 6,351 | 1,255 | 7,607 | 7,930 | 2,136 | 10,067 |
| Acquisition costs 31.12 | 164,470 | 50,496 | 214,967 | 147,642 | 44,489 | 192,131 |
| Accumulated depreciations 01.01 | -62,815 | -29,748 | -92,562 | -44,795 | -21,486 | -66,281 |
| Depreciations | -17,196 | -6,417 | -23,613 | -15,510 | -6,950 | -22,459 |
| Currency exchange differences | -2,273 | 129 | -2,144 | -2,510 | -1,312 | -3,822 |
| Accumulated depreciations 31.12 | -82,284 | -36,036 | -118,319 | -62,815 | -29,748 | -92,562 |
| Book value 31.12 | 82,187 | 14,461 | 96,647 | 84,827 | 14,741 | 99,568 |
| Depreciation ratio | 10-33% | 10-33% | 10-33% | 10-33% |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 11: Intangible assets
In 2024 there have been expensed KNOK 39,549 (KNOK 49,770 in 2023) in research and development costs. Intangible assets regarding brand are related to CashGuard and ALS.
Accounting policies
Intangible assets
Intangible assets are recognized at their cost price, less any accumulated write-downs and amortization, and are considered periodically for impairment in case of any impairment indicators. Any impairment losses are recognized as operating costs.
Intangible assets with definite lives are amortized over economic life and tested for impairment when there are indications on this.
Goodwill and other intangible assets from acquisitions
Identifiable intangible assets from acquisitions are booked at fair value at the time of acquisition. This includes items such as technology, brand and customer relationships. Brand value/trademarks are not depreciated, but they are tested annually for impairment along with goodwill. The other items are depreciated throughout their estimated useful life.
Development costs
Product development costs and research into new products and maintenance of existing products are expensed as incurred except capitalization of intangible assets related to the new cash management solution developed for a customer in Iberia and development costs related to our own POS solution (Tree Commerce) in the Baltics. The development in Spain is performed through a new legal company called StrongPoint Cash Tech S.L., which are consolidated from Q2 2023. The expenses include in-house payroll costs and outsourced services. The expenses are reduced with any government grants received related to this development. Government grants (Skattefunn) are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.
| 2024 | 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Other intangible assets (KNOK) | Technology | Brand | Customer | Software | Total Technology | Brand | Customer | Software | Total | |
| Acquisition costs 01.01 | 147,040 | 31,502 | 95,834 | 13,174 | 287,550 | 107,510 | 31,502 | 92,425 | 9,376 | 240,813 |
| Acquired by acquisition | - | - | - | - | - | 16,105 | - | 3,409 | - | 19,514 |
| Investment | 27,916 | - | - | 3,628 | 31,545 | 23,425 | - | - | 3,798 | 27,223 |
| Acquisition costs 31.12 | 174,957 | 31,502 | 95,834 | 16,802 | 319,095 | 147,040 | 31,502 | 95,834 | 13,174 | 287,550 |
| Accumulated impairments and amortizations 01.01 | -105,655 | -3,371 | -51,581 | -8,390 | -168,998 | -105,655 | -1,164 | -42,632 | -8,383 | -157,834 |
| Accumulated impairments and amortizations 31.12 | -105,655 | -5,679 | -61,521 | -8,398 | -181,254 | -105,655 | -3,371 | -51,581 | -8,390 | -168,998 |
| Translation differences | 95 | 4,430 | 10,650 | -690 | 14,485 | -1,855 | 3,383 | 6,129 | -883 | 6,774 |
| Book value 31.12 | 69,397 | 30,252 | 44,963 | 7,714 | 152,326 | 39,530 | 31,513 | 50,382 | 3,901 | 125,327 |
| Amortizations of the year | - | -2,308 | -9,939 | -8 | -12,256 | - | -2,207 | -8,949 | -7 | -11,163 |
| This year change in translation differences | 1,950 | 1,047 | 4,369 | 193 | 7,559 | 0 | 2,446 | 4,792 | 7 | 7,245 |
| Amortizations schedule | 10 and 15 years |
Impairment test |
1-7 years | 4-7 years | 10 and 15 years |
Impairment test |
1-7 years | 4-7 years | ||
| Amortizations ratio | 7-10% | 14-100% | 14-25% | 7-10% | 14-100% | 14-25% |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Goodwill is not depreciated. Impairment tests are carried out every year. The impairment test per 31 December 2024 has been carried out with the segments Scandinavia and International incl. R&D as the cash generating units.
| StrongPoint | StrongPoint | StrongPoint | StrongPoint | Total | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Goodwill (KNOK) | StrongPoint AS StrongPoint AB | Technology AB | Baltic | S.L.U | E-com AB | ALS | Hamari | 2024 | 2023 | |
| Acquisition costs 01.01 | 15,976 | 2,612 | 81,127 | 23,318 | 4,431 | 25,889 | 38,268 | 2,914 | 194,535 | 191,620 |
| Acquisition | - | - | 2,914 | |||||||
| Acquisition costs 31.12 | 15,976 | 2,612 | 81,127 | 23,318 | 4,431 | 25,889 | 38,268 | 2,914 | 194,535 | 194,535 |
| Accumulated impairment 01.01 | -14,689 | -229 | - | -23,345 | - | - | - | - | -38,263 | -38,263 |
| Accumulated impairment 31.12 | -14,689 | -229 | - | -23,345 | - | - | - | - | -38,263 | -38,263 |
| Translation differences | - | - | 11,478 | 3,254 | 1,408 | 1,172 | 6,148 | 144 | 23,604 | 18,054 |
| Book value 31.12 | 1,286 | 2,383 | 92,605 | 3,227 | 5,839 | 27,060 | 44,416 | 3,058 | 179,875 | 174,325 |
| This year change in translation differences | - | - | 1,466 | 152 | 274 | 429 | 3,085 | - | 5,407 | 11,492 |
| Goodwill (KNOK) | |
|---|---|
| Acquired company | Cash generating unit | 31.12.2024 | 31.12.2023 |
|---|---|---|---|
| StrongPoint AS | Scandinavia | 1,286 | 1,286 |
| StrongPoint AB | Scandinavia | 2,383 | 2,383 |
| StrongPoint Technology AB | Scandinavia | 92,605 | 91,139 |
| StrongPoint UAB | International incl. R&D | 3,227 | 3,075 |
| StrongPoint S.L.U | International incl. R&D | 5,839 | 5,564 |
| StrongPoint E-com AB | Scandinavia | 27,060 | 26,632 |
| StrongPoint ALS | International incl. R&D | 44,416 | 41,331 |
| StrongPoint Hamari Oy | International incl. R&D | 3,058 | 2,914 |
| Total goodwill | 179,875 | 174,325 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Impairment test of goodwill and intangible assets with indefinite useful life
Impairment tests are carried out in order to assess the prospects of each cash flow-generating unit based on value in use. Value in use is measured against net book value for the cash flow-generating entity. Key assumptions are a growth rate of 2.5% in net cash flow after five years of explicit plan and a WACC after tax of 10,18%. Climate change is considered not to have a significant impact and is taken into account in the cash flow.
The brands are considered to be indefinite due to the Groups strategy which contains a growth path for the brands, and confirms the value of the IP in the balance sheet, as long term future cashflow is expected.
The Group has used value in use to determine recoverable amounts for the cash flow-generating entities. Value in use is determined by using the discounted cash flow method. The expected cash flow is based on the business areas' budgets and long term plans, which are approved by StrongPoint's executive management and the Board. Budgets and long-term plans cover a five-year period (explicit prognosis period). Approved budgets and long-term plans are adjusted for cash flows related to investments, future product improvements and new development, if the elements are considered significant for the impairment test. After the five years of explicit plans a terminal value is calculated based on 2.5% growth in net cash flow. To calculate value in use, the Group has used anticipated cash flows after tax and, correspondingly, discount rates after tax. The recoverable amount would not have been significantly different if cash flows before tax and the discount rate before tax had been used. The WACC after tax has been stipulated using an iterative method and is 10.18%. The assumptions are based on historical results and observable market data.
Key assumptions
Discount rate
The discount rates are based on a weighted average cost of capital (WACC) method, whereby the cost of equity and the cost of liabilities are weighted according to an estimated capital structure. The discount rates reflect the market's required return on investment at the time of the test and in the industry to which the cash-generating unit belongs. The estimated capital structure is based on the average capital structure in the industry in which the cash generating unit operates and an assessment of what is a reasonable and prudent long-term capital structure. The CAPM model is used to estimate the cost of equity. In accordance with the CAPM model, the cost of equity consists of risk-free interest as well as an individual risk premium. The risk premium is the entity's systematic risk (beta), multiplied by the market's risk premium. The risk-free interest is estimated on a 10-year Norwegian government bond interest rate and is based on all cash flows being translated to NOK. The cost of liabilities represents an expected long-term after-tax interest rate for comparable liabilities and consists of risk-free interest and an interest spread. The pre tax discount rate is 12.82%.
Profit margin (EBITDA)
The profit margin is reviewed based on expectations of future development and historical performance. This gives the Group good prospects for order intake and is a solid basis for long-term growth.
Growth rate
Growth rates in the explicit prognosis period are based on management's expectations of market trends. The Group uses stable growth rates to extrapolate cash flows in excess of five years. The long-term growth rate beyond five years is not higher than the expected long-term growth rate in the industry in which the undertaking operates within.
Market shares and macro trends
Group entities monitors competition environment and market shares on a detailed level, both in the local geography and from a product point of view. StrongPoint is a retail technology company and exposed to global changes within technology development, international competition, supply change and raw material distribution following political, climate or international trading challenges etc. Expected changes in market shares or new competitive solutions that can influence future cash flow from the business units are taken into account in the impairment test.
Risk
Group management and Board of directors monitors and acts upon risk within the following areas: Strategic, operational, financial and sustainability/climate. Main assumptions in the impariment test are adjusted to reflect the risk environment that the Group operates within.
Sensitivity analysis
In connection with impairment tests of goodwill and intangible assets, sensitivity analyses are carried out. When applying long term annual growth rates of 8 to 10% on revenue and 5 to 6% on operating costs, there is substantial impairment headroom. This corresponds to EBITDA margin of 6 to 9% and is considered to be achievable in the long term. However, if assuming long term annual revenue growth of 5 to 6% and the operating costs continuing to increase by 5%, the EBITDA margin will convert to 3% and consequently lead to an impairment in both segments.
Estimation uncertainty
There will always be uncertainty related to the estimate of value in use. The assessments are based on key assumptions as described above, and are to a large degree influenced by market data for comparable companies, interest rates and other risk conditions. These calculations are based on discounted future cash flows, in which judgement was used as regards future profit and operation. Significant changes in the cash flows may affect the value of goodwill.
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 12: Inventories
Inventories are measured at the lower of cost and net realizable value. The stock is pledged as security for loans, see note 15.
The cost of goods sold of KNOK 779,109 includes direct costs of goods with KNOK 639,014.
Note 13: Other receivables
Other receivables included MNOK 3.9 in expected government grants (Skattefunn) refunds for development costs in 2024 (MNOK 4.6). This was booked as reduction of other operating expenses.
The provisions per 31.12.2024 are not directly related to individual customers.
Losses on bad debts are classified as other operating expenses in the income statement.
| Inventories (KNOK) | 2024 | 2023 |
|---|---|---|
| Inventories | 197,292 | 241,050 |
| Provision for obsolete stock | -24,141 | -10,626 |
| Total | 173,151 | 230,424 |
| Provision for obsolete stock (KNOK) | 2024 | 2023 |
|---|---|---|
| Provision for obsolete stock, opening balance | -10,626 | -10,416 |
| Taken to income/charged to expense (-) change in provision | -13,515 | -210 |
| Provision for obsolete stock, closing balance | -24,141 | -10,626 |
Accounting policies
Provisions for obsolescence are, where possible, made on an individual basis. If it is not possible to carry out an individual assessment, provisions for obsolescence are made based on the current inventory turnover rate.
| Short term receivables (KNOK) | 2024 | 2023 |
|---|---|---|
| Accounts receivables | 223,238 | 240,790 |
| Prepaid expenses | 28,236 | 22,032 |
| Other receivables | 10,351 | 14,955 |
| Total short term receivables 31.12 | 261,826 | 277,777 |
| Changes in provision for bad debts (KNOK) | 2024 | 2023 |
|---|---|---|
| 01.01 | 7,243 | 6,027 |
| Applied provisions | - | -676 |
| Reversed provisions | -393 | -594 |
| New provision for bad debt | 903 | 2,486 |
| Total 31.12 | 7,753 | 7,243 |
| Aging of accounts receivables (KNOK) | 2024 | 2023 |
|---|---|---|
| Not due | 180,683 | 154,583 |
| 0-3 months | 38,269 | 85,025 |
| 3-6 months | 3,837 | 1,182 |
| 6-12 months | 449 | - |
| Total 31.12 | 223,238 | 240,790 |
| long term receivables (KNOK) | 2024 | 2023 |
| Deposit rented offices | 896 | 1,372 |
| Total long term receivables 31.12 | 896 | 1,372 |
Accounting policies
For account receivables, the Group applies a simplified approach in calculating Expected Credit Losses (ECL)s. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The carrying amount of the asset is reduced using an allowance account and the amount of the loss is recognized in the income statement.
Provisions are made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified. It should, in minimum, be made provisions for: 50% of the amounts ex VAT that has been due for 3 months or more, 80% of the amounts ex VAT that has been due for 6 months or more, 100% of the amounts ex VAT that has been due for 12 months or more. Changes in provision are booked as other operating expenses.
In 2024, Norway and The UK entered factoring arrangements. The financing arrangements have contributed to lower outstanding accounts receivables per 31.12.2024.
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 15: Interest-bearing debt and secured debt
Debt per 31.12. and specification of terms. Figures in KNOK
1) The Groups' main bank connection has loan covenants in relation equity %. The loan agreements are measured on a quarterly basis. See note 17 for more information. All loans are secured.
Distribution of long term and short term debts and liabilities: Pledged assets per 31.12 and book value:
1) Företagsinnteckning is equivalent to a priority lien over the company's assets
*The foreign companies liabilities are limited to the amount the guarantor at any time has drawn.
Change in liabilities arising from financing activities:
Note 14: Cash and cash equivalents
The Group had liquid assets (bank deposits and unused credit facilities) of MNOK 102,5 per 31.12.2024 (2023: MNOK 95.2). KNOK 3,107 are restricted funds pr. 31.12.2024 (2023: KNOK 2,865).
The Group has a cash pool arrangement allowing efficient distribution of cash between the different business units. The total Group credit facility is MNOK 140, of which MNOK 120 was withdrawn per 31.12.2024.
| KNOK | 2024 | 2023 |
|---|---|---|
| Cash and bank deposits | 82,490 | 39,340 |
| Overdraft | - | 94,153 |
| Unused overdraft / credit facilities | 20,000 | 55,847 |
| Type of loan | 2024 | 2023 Borrowing terms | Average nominal interest for 2024 | |
|---|---|---|---|---|
| Multi-currency, group credit account ¹ | - | 94,153 Overdraft limit MNOK 150, not time limited | 5.80% | |
| Credit facilities | 120,000 | - Repayment/renewal in 2025 | 10.49% | |
| Long term loan | 5,229 | 8,646 Quarterly repayments | 1.72% | |
| Short term debt | 4,253 | 4,299 Repayment in 2025 | 2.6%-7.99% | |
| Financial leasing | 3,402 | 4,240 Monthly and quarterly payments | ||
| IFRS 16 car liabilities | 9,266 | 8,762 | ||
| Total interest-bearing debt | 142,149 | 120,100 | ||
| IFRS 16 rent liabilities | 82,186 | 84,827 | ||
| Total interest-bearing debt and IFRS 16 rent liabilities | 224,336 | 204,927 |
| KNOK | 2024 | 2023 |
|---|---|---|
| Bank overdraft | - | 94,153 |
| Current interest-bearing liabilities | 154,353 | 22,278 |
| Due after one year | 69,983 | 88,496 |
| Total interest-bearing debt and IFRS 16 rent liabilities | 224,336 | 204,927 |
| Asset | 31.12.2024 | 31.12.2023 |
|---|---|---|
| Operating equipment and inventories for StrongPoint AS | 48,360 | 100,960 |
| Lien over Företagsinnteckning StrongPoint AB ¹ | 123,722 | 117,711 |
| Co-surety Norway, Sweden, the Baltics and UK * | 120,000 | 150,000 |
| KNOK | 31.12.2023 | CashFlow | New contracts |
Currency differences |
31.12.2024 |
|---|---|---|---|---|---|
| Interest-bearing liabilities | 107,098 | (98,300) | 120,000 | 684 | 129,482 |
| Lease liabilities | 97,829 | (22,534) | 16,129 | 3,523 | 94,854 |
| Total | 204,926 | (120,833) | 136,129 | 4,207 | 224,336 |
| KNOK | 31.12.2022 | CashFlow | New contracts |
Currency differences |
31.12.2023 |
|---|---|---|---|---|---|
| Interest-bearing liabilities | 37,757 | 75,553 | - | (6,212) | 107,098 |
| Lease liabilities | 81,203 | (24,444) | 32,713 | 8,357 | 97,829 |
| Total | 118,960 | 51,109 | 32,713 | 2,145 | 204,927 |
Accounting policies
Cash includes cash in hand and cash deposits in banks.
Cash equivalents are held for the purpose of meeting short term commitments rather than for investment or other purposes.
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 16: Leasing commitments
Tenancy agreements on premises has a lease-term of 0.5-9 years. Annual payment for these premises is approx. KNOK 22,833.
Leasing contracts on vehicles has a lease-term of 1-9 years. Annual payment is approx. KNOK 7,146.
Leasing contracts on inventory (copy machines, coffee machines etc.) has a lease-term of 1-5 years. Annual payment is approx. KNOK 765.
The numbers above includes approximately MNOK 1 as leasing expenses in the P&L regarding contracts with a lifetime of less than one year and a value of less than KNOK 100. These contracts are not booked as leasing commitments in the balance sheet.
In 2024 the present value of the lease payments has been calculated based on the lessee's incremental borrowing rate. The discount rate is 13.5%, included a risk premium of 9.5% business risk and 4.0% risk free.
The carrying value of leasing are included in note 10.
| Future minimum rent for the leasing contracts per 31.12 is as follows: |
The present value of future payments |
||
|---|---|---|---|
| KNOK | 2024 | 2023 | 2024 |
| Within one year | 30,744 | 26,979 | 27,087 |
| After one year, but within five years | 67,621 | 66,130 | 46,149 |
| After more than five years | 15,738 | 17,307 | 7,362 |
| Total | 114,104 | 110,417 | 80,598 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 17: Financial instruments
Financial risks
StrongPoint's activities expose the group to exchange rate-, interest-, credit- and liquidity risks.
(i) Credit risks
The Group's credit risk is related to the sale of goods and services on credit. In 2024, Norway entered a factoring arrangement for the accounts receivables. We receive payment earlier and the credit risk for these receivables are transferred to the factoring company.
The Group has established guidelines to ensure that sales are only made to customers who have not had significant payment problems earlier and that the outstanding amount do not exceed credit limits. Guidelines are implemented to prevent the company's risk associated with loans and guarantees related to employees and customers.
Per 31.12.2024 the Group had KNOK 223,238 in outstanding accounts receivables. Of this KNOK 42,555 were overdue, traditionally most of the overdue amount are paid a few days after period end. The Group has historically had a low rate of loss on receivables. This year's expenses in relation to bad debts amounting to a revenue of KNOK 1,070, including realized losses and changes in the provision for bad debts.
(ii) Interest rate risk
The company's interest-bearing debt decreased in 2024.
The interest risk is measured by the group treasury department by simulating the effect of a change in interest rates. The simulation illustrates the cash effect of a change in interest rates given the loan size and the level of any existing interest rate hedging. The results from the simulation are used to support decisions concerning the possible conclusion of fixed-rate contracts. In addition, the fact that interest rates usually move opposite to the general economic development, and that floating rates within certain limits can help to stabilize the group's results.
As a result of this the group's interest-bearing debt has a floating interest rate at year-end. It has not been used fixed rate contracts or other hedging instruments in 2024 or 2023.
Based on the financial instruments in existence as of 31 December 2024, a general increase in interest rates of two per cent will reduce pre-tax profits by KNOK 2,658.
The average effective rate of interest on financial instruments was as follows:
The interest rate on overdraft is based on 1 month NIBOR for the draft in NOK, and 1 month DANBOR SEK and 1 month DANBOR EUR for the other currencies. The interest rate on the largest long-term loan is fixed until 2026. The interest rate on the smaller loans is determined quarterly. See note 15 for information about long-term loans and note 16 for information about liabilities in relation to financial leasing agreements.
(iii) Liquidity risk
The Group manages liquidity risk by monitoring the expected future cash from operations and available cash and credit facilities are adequate to serve the operational and financial obligations. This is done by preparing cash flow forecasts 12 months ahead, and detailed monthly cash monitoring, based on different outcomes in turnover and product mix. Capital tied up in the individual business units are supervised, focusing on inventory, accounts receivable, financing and accounts payable.
The group's strategy is to have sufficient cash, cash equivalents or credit facilities available at any time to be able to finance operations and investments for the next 6 months. Excess liquidity is mainly located in the Groups Cash Pool which is netted against overdraft. Unused credit facilities are described in note 14.
. An increase of 1% in the interest rate per 31 December 2024 would have resulted in the following effects on the profit in the group;
Disposable funds were 102.5 MNOK as of 31 December 2024, comprising cash and cash equivalents of 82.5 MNOK and 20.0 MNOK remaining as undrawn from the Norion RCF. During the fourth quarter, the refinancing from a bank overdraft of 150 MNOK with Danske Bank to Norion RCF of 140 MNOK, was completed. As part of this new financing, there is a 30% equity covenant. As per 31 December 2024, the equity ratio was 46%.
| Sensitivity currency exposure; | KNOK |
|---|---|
| Credit facilities | -1,200 |
| Short term loans | -52 |
| Long term loans | -43 |
| Leasing | -127 |
| KNOK | 2024 | 2023 |
|---|---|---|
| Total interest-bearing debt | 142,149 | 120,100 |
| Cash | 82,490 | 39,340 |
| Net interest-bearing debt | 59,659 | 80,760 |
| Total capital adjusted for Goodwill | 847,862 | 863,676 |
| Debt ratio | 7% | 9% |
| 2024 | 2023 | |
|---|---|---|
| Bank overdraft | 5.80% | 5.13% |
| Credit facilities | 10.49% | |
| Short term loans | 5.30% | 5.30% |
| Long term loans | 1.72% | 1.72% |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Overview of maturity structures of financial liabilities:
The payment of financial obligations is intended to be covered by the payment of accounts receivable, sale of goods and services, and available cash and available credit facilities.
(iv) Currency risks
The Company has no material debt or bank deposits in foreign currency, except Euro, GBP, Norwegian and Swedish kroner. The main exposure to foreign currency derived from accounts payable and accounts receivable in connection with the purchase and sale of goods in foreign currency, and contracts where the sales price is determined in a currency other than the cost of goods sold. The Group is mainly exposed to fluctuations in the price of goods bought in foreign currencies, primarily in SEK, USD, EUR and GBP, and sale of goods in EUR.
The company do not normally use forward contracts to hedge this exposure. Large currency fluctuations are compensated by contracted agreement allowing adjusted sales prices accordingly.
(v) Financial investments
Excess liquidity is placed in the Group's cashpool to reduce its short term interest-bearing debt. The company uses a small degree of financial investments.
A change of 10% exchange rate per 31 December 2024 would have resulted in the following effects on the profit in the group;
| Balance sheet | ||||||
|---|---|---|---|---|---|---|
| KNOK | amount | 0-6 months | 6-12 months | 1-2 year | 2-3 year | more than 3 years |
| Secured loans (long and short term interest-bearing debt) | 129,482 | 125,601 | 2,563 | 1,318 | - | - |
| Secured loans, interest | IA | 96 | 30 | 11 | 0 | IA |
| Leasing | 94,854 | 13,095 | 13,095 | 20,489 | 13,673 | 34,503 |
| Leasing, interest | IA | 2,221 | 2,202 | 3,334 | 2,435 | IA |
| Other long term debt | 602 | 602 | ||||
| Accounts payable | 140,789 | 140,789 | - | - | - | - |
| Net liabilities financial instruments | 365,727 | 281,803 | 17,890 | 25,755 | 16,107 | 34,503 |
| Sensitivity currency exposure; | KNOK |
|---|---|
| SEK weakened by 10% against EUR | -1,440 |
| SEK weakened by 10% against GBP | - |
| SEK weakened by 10% against USD | 1,519 |
| NOK weakened by 10% against SEK | 188 |
| NOK weakened by 10% against EUR | 283 |
| NOK weakened by 10% against GBP | 30 |
| NOK weakened by 10% against USD | 379 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
(vi) Capital structure
The Board aims to maintain a strong capital base in order to retain the trust of shareholders, creditors and the market in order to continually develop the company. The Board want to create a balance between higher return, which is made possible by higher borrowing levels, and the benefits and security provided by a solid equity. The Board aims to ensure that StrongPoint shareholders will over time gain a competitive return on their investment through a combination of cash dividends and increased value of their shares. In determining the annual dividend, the Board will take into account the expected cash flow, investments in organic growth, plans for growth through mergers and acquisitions, and the need for adequate financial flexibility.
The level of net debt is measured in terms of cash flow.
(viii) Fair value measurement
The following table provides the fair value measurement hierarchy of the Group's assets and liabilities.
Due to their short term nature, the carrying value of current financial assets and liabilities is deemed as reasonable approximation to the fair value of the financial assets and liabilities. As such, the carrying amount is considered not to be significantly different from the fair value.
Based on characteristics of the financial instruments recognized in the consolidated financial statements, these have been grouped in classes and categories as described below. The estimated fair value corresponds substantially carrying value.
Other long term investments are classified as equity instruments designated at fair value, according to IFRS 9.
The balance sheet value of cash and cash equivalents and overdrafts is approximate to the fair value as these instruments have a short expiry period. Similarly, the balance sheet value of accounts receivables and accounts payable is approximate to the fair value as they are agreed on "ordinary" terms.
Book value of debt is deemed to be equivalent to market value, since the company should be able to refinance the loan at the same rate in the market.
Note 18: Transactions with related parties
StrongPoint ASA hired consultancy services valued at KNOK 100 from TLT Leadership AS where Board member Ingeborg Hegstad owns 50% of the company. There has not been any other transactions with any Board members and employees in 2024.
Transactions with associated companies
The group carried out several transactions with Spok AS in 2024 and 2023. All transactions were carried out as part of its ordinary activities and at ordinary business conditions.
The balance includes the following amounts resulting from transactions with the associated company:
The Group has no other binding future transactions with related parties.
| Fair value measurement using | |||
|---|---|---|---|
| Date of valuation | Total | Significant unobservable inputs (Level 3) |
|
| Assets measured at fair value: | |||
| Financial assets | |||
| Cash | 31 December 2024 | 82,490 | 82,490 |
| Accounts receivable | 31 December 2024 | 223,238 | 223,238 |
| Other long-term investments | 31 December 2024 | 4,001 | 4,001 |
| Financial debts | |||
| Accounts payable | 31 December 2024 | -140,789 | -140,789 |
| Bank loans | 31 December 2024 | -9,482 | -9,482 |
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| KNOK | Sale | Purchase | Sale | Purchase | |
| Spok AS | 336 | 3,172 | 345 | 3,433 |
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| KNOK | Receivables | Debt | Receivables | Debt | |
| Spok AS | - | 6 | - | 274 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 19: Post balance sheet events
No significant events have occurred after the balance sheet date.
Note 20: Overview of subsidiaries
The following subsidiaries are included in the consolidated accounts:
1) StrongPoint AS owns 100% of a company in Germany that is under liquidation.
2) StrongPoint UAB owns 100 % of its sales companies in Latvia and Estonia.
3) StrongPoint SLU owns 60% of StrongPoint Cash Tech S.L.
4) Air Link Group Ltd owns 100% of its sales companies in UK, Ireland and Belgium.
Note 21: Exchange rates
Profit or loss items in the subsidiaries are converted to NOK monthly, based on the average exchange rate of that month. Balance sheet items for the subsidiaries are converted to NOK, based on the exchange rate per 31.12.2024.
| Company | Adress | Main area of business | Share of votes | Stake |
|---|---|---|---|---|
| StrongPoint AS 1 | Oslo | Service and product provider | 100% | 100% |
| StrongPoint AB | Göteborg (Sweden) | Service and product provider | 100% | 100% |
| StrongPoint UAB 2 | Vilnius (Lithuania) | Service and product provider | 100% | 100% |
| StrongPoint S.L.U 3 | Spain | Service and product provider | 100% | 100% |
| StrongPoint E-com AB | Täby (Sweden) | Production and sales | 100% | 100% |
| Air Link Group Ltd 4 | Birmingham (UK) | Service and product provider | 100% | 100% |
| StrongPoint Hamari Oy | Finland | Service and product provider | 100% | 100% |
| StrongPoint Investering AS | Oslo | Investment company | 100% | 100% |
| 2024 | 2023 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average exchange rate | Exchange rate | Exchange rate | |||||||||||||
| January | February | March | April | May | June | July | August September | October November December | 31.12. | Average | 31.12. | ||||
| SEK | 1.006 | 1.012 | 1.019 | 1.008 | 0.998 | 1.012 | 1.016 | 1.029 | 1.038 | 1.034 | 1.014 | 1.021 | 1.029 | 0.996 | 1.013 |
| Euro | 11.350 | 11.384 | 11.512 | 11.683 | 11.590 | 11.418 | 11.716 | 11.790 | 11.785 | 11.791 | 11.741 | 11.739 | 11.795 | 11.424 | 11.241 |
| GBP | 13.218 | 13.320 | 13.460 | 13.639 | 13.549 | 13.489 | 13.893 | 13.846 | 14.027 | 14.122 | 14.081 | 14.177 | 14.225 | 13.136 | 12.934 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 22: Short and long term provisions
Note 23: Earnings per share
Note 24: Shareholder information
Overview of shareholders per 31.12.2024
StrongPoint ASA had per 31.12.2024 a share capital of NOK 27,830,778.24 spread over 44,888,352 shares with a nominal value of NOK 0.62.
All shares have equal voting rights.
| KNOK | 2024 | 2023 |
|---|---|---|
| Earnout Hamari | - | 1,686 |
| Rental deposit | 602 | 162 |
| Balance 31.12 | 602 | 1,848 |
| Of which long term provisions | 602 | 1,848 |
| KNOK | 2024 | 2023 |
|---|---|---|
| Profit for the year | -31,930 | -34,200 |
| Weighed average number of shares during the year | ||
| Basic | 44,631,136 | 44,397,547 |
| Effect of dilutive share based incentive plans | 4,095,000 | 3,422,500 |
| Diluted | 48,726,136 | 47,820,047 |
| Earnings per share (NOK) | ||
| Basic | (0.72) | (0.77) |
| Diluted | (0.66) | (0.72) |
| Number of outstanding shares (numbers in thousand) | 2024 | 2023 |
|---|---|---|
| 01.01: Number of shares (after deductions for own shares) | 44,538 | 44,304 |
| Sale of own shares during the year | 156 | 234 |
| 31.12: Number of shares (after deductions for 194 thousand own shares) | 44,694 | 44,538 |
The options are antidilutive due to the deficit in 2024.
| No. Name | No. of shares | % | |
|---|---|---|---|
| 1 | STRØMSTANGEN AS | 3,933,092 | 8.76 |
| 2 | TOHATT AS | 2,225,000 | 4.96 |
| 3 | SOLE ACTIVE AS | 2,221,717 | 4.95 |
| 4 | BANK PICTET & CIE (EUROPE) AG | 1,981,821 | 4.42 |
| 5 | ZETTERBERG, GEORG (incl. fully owned companies) | 1,400,000 | 3.12 |
| 6 | NORDNET BANK AB | 1,320,626 | 2.94 |
| 7 | AVANZA BANK AB | 1,299,363 | 2.89 |
| 8 | RING, JAN | 1,243,374 | 2.77 |
| 9 | VERDADERO AS | 1,081,285 | 2.41 |
| 10 | JAHATT AS | 1,080,850 | 2.41 |
| 11 | MUEN INVEST AS | 806,000 | 1.80 |
| 12 | EVENSEN, TOR COLKA | 803,000 | 1.79 |
| 13 | HSBC BANK PLC | 702,612 | 1.57 |
| 14 | WAALER AS | 700,000 | 1.56 |
| 15 | BANQUE PICTET & CIE SA | 670,033 | 1.49 |
| 16 | JOHANSEN, STEIN | 600,000 | 1.34 |
| 17 | MP PENSJON PK | 561,402 | 1.25 |
| 18 | SKANDINAVISKA ENSKILDA BANKEN AB | 520,185 | 1.16 |
| 19 | ALS KINGFISHER LIMITED | 506,156 | 1.13 |
| 20 | EUROPEAN RETAIL ENGINEERING LIMITED | 506,156 | 1.13 |
| Sum 20 largest shareholders | 24,162,672 | 53.83 | |
| Sum 2 248 other shareholders | 20,725,680 | 46.17 | |
| Sum all 2 268 shareholders | 44,888,352 | 100.00 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Per 31.12.2024 the Group owned 194,374 own shares. Cost price of these was KNOK 4,423, giving an average share price of NOK 22.75.
Members of the Group management team have stock options. See note 9 for more information.
Note 25: Estimation uncertainties
When preparing the annual accounts in accordance with IFRS the company management has used estimates based on best judgement and assumptions that are considered to be realistic. Situations or changes in market conditions may occur that may lead to estimates being adjusted, thus affecting the company's assets, debts, equity and profit.
The company's most significant accounting estimates are linked to the following items:
- Business combinations
- Impairment of intangible assets
- Impairment assessment of goodwill
- Recognition of deferred tax on balance sheet
- Warranty provisions
StrongPoint must allocate the cost price of acquired entities to acquired assets and transferred debts based on estimated fair value. Significant intangible assets that StrongPoint has recognized includes customer contracts, customer base, brands, own technology and commitments in relation to any royalty agreements entered into. Assumptions taken into account when valuing assets include, but are not limited to, the replacement cost of fixed assets and fair value. The management's estimates of fair value are based on assumptions that are considered to be reasonable, but that are by nature uncertain. As a result, the actual results may differ from the estimates. Depreciation periods and amounts are given in note 11.
Management prepare a Key Audit Matter report to the Audit Committee at least every 6 months, where major estimates are discussed and agreed.
Goodwill and brands as stated on the balance sheet are evaluated for impairment whenever there are indications of impairment, at least annually. The valuation is based on value in use when discounting expected future cash flows. The valuation is carried out with starting points in next year's budget and in a forecast for the next four years. Next, a terminal value is calculated based on 2.5% growth in net cash flow. The most sensitive assumption used in the estimates is that of future turnover growth, but EBITDA and discount rate are also important. The assumptions and sensitivity analysis are detailed in note 11.
The management has used estimates and assessments when making provisions for obsolete stock and future warranty costs. The provisions have been made with basis in a historical assessment of provision requirements, past figures for returns and under-warranty repairs and the age distribution of stock. Further details are provided in note 12 for stock and note 27 for warranty provisions.
Changes in share capital:
| Number of shares | Share capital | |||
|---|---|---|---|---|
| KNOK | 2024 | 2023 | 2024 | 2023 |
| Ordinary shares 01.01 | 44,888 | 44,376 | 27,831 | 27,513 |
| Ordinary shares 31.12 | 44,888 | 44,888 | 27,831 | 27,831 |
Own shares:
| Numbers in 1000 | 2024 | 2023 |
|---|---|---|
| 01.01 | 350 | 585 |
| Sales of own shares | -156 | -234 |
| 31.12 | 194 | 350 |
| Nominal value | 0.62 | 0.62 |
| Own shares specified in equity (KNOK): | 121 | 217 |
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 26: Tax
Accounting policies
Current tax liabilities and assets are measured at the amount that is expected to be paid to or recovered from the tax authorities. The tax rates and tax rules used to calculate the amounts are those that have been adopted or substantively adopted by the end of the reporting period in the countries in which the group operates and generates taxable income.
Deferred tax liabilities and assets are computed for all temporary differences between the carrying amount of an asset or liability in the consolidated financial statements and their respective tax bases and tax losses carried forward. For the calculation of deferred tax assets and liabilities, the nominal tax rates expected to be applied when the asset is realized or the liability is paid will be used.
Deferred tax assets and deferred tax liabilities:
The Company has no liabilities / deferred tax assets that effect Total comprehensive income.
Per 31.12.2024 the group has losses carried forward of MNOK 103.4 in the Spanish entity. Deferred tax assets of MNOK 25.9 (MNOK 19.4) associated with this is included in the balance sheet.
| KNOK | 2024 | 2023 |
|---|---|---|
| Tax payable | 1,422 | 3,891 |
| Tax items relating to previous years | 77 | - |
| Change in deferred tax | -16,352 | -15,023 |
| Tax expense | -14,853 | -11,132 |
| Included as tax expense in the financial statements | -14,853 | -11,132 |
| Reconciliation of the nominal tax rate | 22% | 22% |
| KNOK | 2024 | 2023 |
|---|---|---|
| Profit before tax | -46,783 | -45,331 |
| Tax calculated at a rate of 22% | -10,292 | -9,973 |
| Taxes related to companies in other countries with other tax rate | -2,605 | -2,347 |
| Change in tax rate in Lithuania | -83 | - |
| Non-taxable items (22% of permanent differences) | -2,236 | 884 |
| Unrecognized deferred tax asset | 302 | 304 |
| Effect corrections previous years 1 | 61 | - |
| Tax expense | -14,853 | -11,131 |
| Deferred tax assets | Deferred tax liabilities | Consolidated income statement |
||||
|---|---|---|---|---|---|---|
| KNOK | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Current assets | 692 | 665 | 3,026 | 3,756 | 787 | -926 |
| Liabilities | 5,218 | 4,393 | -2,432 | -2,318 | -711 | -2,169 |
| Fixed assets | 265 | 248 | -16,555 | -18,219 | -1,680 | -532 |
| Losses carried forward | 39,804 | 25,800 | -586 | -1,331 | -14,748 | -11,397 |
| Deferred tax | 45,979 | 31,106 | -16,547 | -18,111 | -16,352 | -15,023 |
Tax expense:
1) Reversal of provision of tax previous years.
Consolidated statement of comprehensive income Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Note 1 General information Note 2 Accounting principles Note 3 Segment information Note 4 Changes in the group structure Note 5 Other operating expenses Note 6 Investment in associated companies Note 7 Shares in other companies Note 8 Financial items Note 9 Payroll costs and number of employees Note 10 Tangible assets Note 11 Intangible assets Note 12 Inventories Note 13 Other receivables Note 14 Cash and cash equivalents Note 15 Interest-bearing debt and secured debt Note 16 Leasing commitments Note 17 Financial instruments Note 18 Transactions with related parties Note 19 Post balance sheet events Note 20 Overview of subsidiaries Note 21 Exchange rates Note 22 Short and long term provisions Note 23 Earnings per share Note 24 Shareholder information Note 25 Estimation uncertainties Note 26 Tax Note 27 Other short term debt Note 28 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Financial Statements StrongPoint ASA Auditor's Report
ABOUT STRONGPOINT
Note 28: Macro perspectives influencing the business
Economic conditions
Inflation and interest rates have started to come down during 2024, however this varies within the markets in which we operate, consequently impacting our customers' investment spend differently across the regions.
Global supply chain and component shortages
The Group may be influenced by component shortages and other supply chain issues, as was seen during the COVID 19 pandemic. StrongPoint works closely with suppliers to ensure as little effect on customer deliveries as possible. There were no major shortages impacting the business during 2024.
Climate
Global climate changes influence both StrongPoint, customers and suppliers in different ways, contributing to both risks and opportunities.
Climate risks are related especially to shortage of energy for the production and distribution of goods, both proprietary solutions and third party products. If climate changes requires dramatic changes in the energy consumption, this will influence StrongPoints ability to produce the products. Hardware represents 55% of the business. Risk is also related to shortages on food, which will affect the customers of StrongPoint, and shortages of raw materials for specific components. Management does not see this as a risk in the short term.
Climate opportunities are linked to both StrongPoint solutions that can reduce energy consumption, like AutoStore storage of frozen goods. StrongPoint ALS (UK/Ireland) is providing refurbishment of interior or point of sales physical installation, and this can contribute positive to climate if utilized in other markets.
Note 27: Other short term debt
| KNOK | 2024 | 2023 |
|---|---|---|
| Holiday pay owed | 20,840 | 20,328 |
| Accrued expenses | 39,854 | 32,179 |
| Deferred income | 81,645 | 62,520 |
| Warranty provisions | 2,065 | 1,232 |
| Other short term debt | 12,487 | 15,534 |
| Total other short term debt | 156,890 | 131,794 |
| Warranty provisions (KNOK) | 2024 | 2023 |
| Balance 01.01 | 1,232 | 2,149 |
| Provision | 1,945 | 1,215 |
| Currency differences | 20 | 154 |
| Used | -1,133 | -2,287 |
| Balance 31.12 | 2,065 | 1,232 |
| Of which warranties due within 1 year | 2,065 | 1,232 |
Income statement StrongPoint ASA Balance sheet Cash flow statement Note 1 Accounting principles Note 2 Payroll, number of employees etc Note 3 Other operating income Note 4 Other short term debt Note 5 Tangible assets Note 6 Other financial items Note 7 Share capital and shareholder information Note 8 Equity Note 9 Interest-bearing debt Note 10 Shares in subsidiaries Note 11 Other long term investment Note 12 Tax expense Note 13 Cash and cash equivalents Note 14 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Consolidated Financial Statements Auditor's Report
ABOUT STRONGPOINT
Income statement StrongPoint ASA
| KNOK | Note | 2024 | 2023 |
|---|---|---|---|
| Other operating income | 3 | 14,486 | 17,392 |
| Payroll | 2 | 22,743 | 26,535 |
| Depreciation | 5 | 22 | 28 |
| Other operating expenses | 2 | 3,738 | 6,899 |
| Total operating expenses | 26,503 | 33,462 | |
| Operating profit | -12,017 | -16,070 | |
| Financial items | 6 | 2,678 | 21,276 |
| Profit before tax | -9,339 | 5,206 | |
| Income tax expense | 12 | -2,482 | -1,931 |
| Net income | -6,857 | 7,137 | |
| Distributions | |||
| Transfer to / from other equity | 8 | -6,857 | 7,137 |
| Total distributions | -6,857 | 7,137 | |
Income statement StrongPoint ASA Balance sheet Cash flow statement Note 1 Accounting principles Note 2 Payroll, number of employees etc Note 3 Other operating income Note 4 Other short term debt Note 5 Tangible assets Note 6 Other financial items Note 7 Share capital and shareholder information Note 8 Equity Note 9 Interest-bearing debt Note 10 Shares in subsidiaries Note 11 Other long term investment Note 12 Tax expense Note 13 Cash and cash equivalents Note 14 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Consolidated Financial Statements Auditor's Report
ABOUT STRONGPOINT
Balance sheet
| KNOK | Note | 31.12.2024 | 31.12.2023 |
|---|---|---|---|
| ASSETS | |||
| Tangible assets | 5 | 14 | 36 |
| Investments in subsidiaries | 10 | 452,838 | 452,838 |
| Loans to group companies | 131,268 | 114,981 | |
| Other long term investments | 11 | 1,700 | 1,700 |
| Deferred tax | 12 | 7,019 | 4,537 |
| Total fixed assets | 592,839 | 574,091 | |
| Accounts receivables | 36 | - | |
| Group receivables | 94,621 | 77,567 | |
| Prepaid expenses | 6,134 | 3,715 | |
| Total current assets | 100,791 | 81,281 | |
| TOTAL ASSETS | 693,630 | 655,373 |
| Note | 31.12.2024 | 31.12.2023 |
|---|---|---|
| 7.8 | 27,831 | 27,831 |
| 8 | -121 | -217 |
| 8 | 378,988 | 379,867 |
| 406,698 | 407,481 | |
| 9 | 278,101 | 234,334 |
| 539 | 660 | |
| 5,699 | 6,912 | |
| -44 | 361 | |
| 4 | 2,637 | 5,625 |
| 286,932 | 247,892 | |
| 693,630 | 655,373 | |
Oslo, 19 March 2025
Morthen Johannessen Chairman
Ingeborg Molden Hegstad Director
Cathrine Laksfoss Director Audun Nordtveit Director Pål Wibe Director Jacob Tveraabak CEO
Income statement StrongPoint ASA Balance sheet Cash flow statement Note 1 Accounting principles Note 2 Payroll, number of employees etc Note 3 Other operating income Note 4 Other short term debt Note 5 Tangible assets Note 6 Other financial items Note 7 Share capital and shareholder information Note 8 Equity Note 9 Interest-bearing debt Note 10 Shares in subsidiaries Note 11 Other long term investment Note 12 Tax expense Note 13 Cash and cash equivalents Note 14 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Consolidated Financial Statements Auditor's Report
ABOUT STRONGPOINT
Cash flow statement
| KNOK | Note | 2024 | 2023 |
|---|---|---|---|
| Cash flow from operational activities | |||
| Ordinary profit before tax | -9,339 | 5,206 | |
| Ordinary depreciation | 5 | 22 | 28 |
| Share Option Program | 4,232 | 6,395 | |
| Profit/loss from divestment | 6 | - | 1,420 |
| Profit/loss from investment | 6 | -1,686 | - |
| Change in accounts receivables | -36 | - | |
| Change in accounts payable | -1,213 | -1,012 | |
| Change in short term group accounts | -33,463 | -51,411 | |
| Change in other accrued items | -4,135 | 2,729 | |
| Net cash flow from operational activities | -45,619 | -36,645 | |
| Cash flow from investment activities | |||
| Payments for fixed assets | 5 | - | -26 |
| Net effect acquisitions | - | -3,266 | |
| Net cash flow from investment activities | - | -3,292 | |
| Cash flow from financing activities | |||
| Purchase / Sale of treasury shares | 8 | 1,852 | 2,518 |
| New interest bearing debt | 120,000 | - | |
| Dividend paid | - | -39,935 | |
| Change in overdraft | -76,233 | 77,354 | |
| Net cash flow from financing activities | 45,619 | 39,937 | |
| Net cash flow in the period | - | - | |
| Cash and cash equivalents at 01.01 | - | - | |
| Cash and cash equivalents at 31.12 | - | - |
Income statement StrongPoint ASA Balance sheet Cash flow statement Note 1 Accounting principles Note 2 Payroll, number of employees etc Note 3 Other operating income Note 4 Other short term debt Note 5 Tangible assets Note 6 Other financial items Note 7 Share capital and shareholder information Note 8 Equity Note 9 Interest-bearing debt Note 10 Shares in subsidiaries Note 11 Other long term investment Note 12 Tax expense Note 13 Cash and cash equivalents Note 14 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Consolidated Financial Statements Auditor's Report
ABOUT STRONGPOINT
Note 1: Accounting principles
The financial statements, prepared by the company's Board and management, should be interpreted in light of the Directors' report. The financial statements comprise income statement, balance sheet, cash flow statement and notes and have been prepared in accordance with laws and generally accepted accounting principles in Norway.
Basic Principles
Assets intended for permanent ownership or use are classified as fixed assets. Other assets are classified as current assets. Receivables due within one year are classified as current assets. Similar criteria are applied when classifying short term and long term liabilities.
Fixed assets are valued at the acquisition cost less accumulated depreciation. If the fair value of fixed assets is lower than the carrying amount and the reduction is not expected to be temporary, it is written down to fair value. Fixed assets with limited useful lives are depreciated using the straight line method over their economic life.
Shares in other companies are recorded using the cost method. Dividends and group contributions from subsidiaries are recognized in the year the amount is set aside as a liability in the paying companies. Dividends from other companies are recognized in the year it is paid.
Tangible assets are capitalized and depreciated over the useful life if they have a useful life of more than 3 years. Maintenance costs are expensed as incurred, while improvements are added to the tangible assets and depreciated over the remaining useful life.
Current assets are valued at lower of cost or fair value.
Other long term liabilities and short-term liabilities are valued at nominal value.
Subsidiaries / associated companies
Subsidiaries and associated companies are valued at cost in the financial statements. The investments are valued at acquisition cost for the shares unless impairment has been required. It is written down to fair value if impairment is not considered to be temporary and it is deemed necessary by generally accepted accounting principles. Impairment losses are reversed when the reasons for the impairment no longer exists.
Dividends, group contributions and other distributions from subsidiaries are recognized in the same year as it is booked in the subsidiary's accounts.
Foreign currency
Transactions in foreign currencies are translated at the exchange rate on the transaction date. Monetary items in foreign currencies are translated into Norwegian kroner by using the exchange rate at the balance sheet date. Non-monetary items measured at historical cost in a foreign currency are translated into Norwegian kroner at the exchange rate on the transaction date. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rate at the time of measurement. Changes in foreign currency exchange rates are recorded in the accounting period under other financial items.
Intangible assets
Intangible assets purchased individually are capitalized at cost. Intangible assets obtained through acquisitions are capitalized at cost when the criteria for capitalization are met.
Intangible assets with a limited useful life are depreciated according to a schedule. Intangible assets are written down to fair value if the expected economic benefits do not cover the carrying value and any remaining production expenses.
Pensions
The company has a statutory obligatory company pension sheme for its employees. The company pension scheme meets the requirements of the law.
Receivables
Accounts receivables and other receivables are stated at nominal value less provisions for expected losses. Provisions for losses are based on an individual assessment of each receivable. For others receivables, a general provision is made to cover any expected losses.
Bank deposits, cash etc.
Cash and cash equivalents include cash, bank deposits and other forms of payment that become due within three months of acquisition.
Tax
Tax related to equity transactions are recorded in equity. Tax expensed comprises tax payable (tax on the taxable income for the year) and changes in net deferred tax. Deferred tax is calculated at 22% on the basis of temporary differences between accounting and tax values and tax losses carried forward at year end. Taxable and deductible temporary differences that reverse or may reverse in the same period are netted. Other deductible temporary differences is not assessed, but recognized on the balance sheet if it is likely that the company can utilize them and net recorded if appropriate. Deferred tax and deferred tax assets are presented at net value in the balance sheet.
Cash flow statement
The cash flow statement is prepared using the indirect method. Cash and cash equivalents include cash, bank deposits and other short term liquid investments.
Income statement StrongPoint ASA Balance sheet Cash flow statement Note 1 Accounting principles Note 2 Payroll, number of employees etc Note 3 Other operating income Note 4 Other short term debt Note 5 Tangible assets Note 6 Other financial items Note 7 Share capital and shareholder information Note 8 Equity Note 9 Interest-bearing debt Note 10 Shares in subsidiaries Note 11 Other long term investment Note 12 Tax expense Note 13 Cash and cash equivalents Note 14 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Consolidated Financial Statements Auditor's Report
ABOUT STRONGPOINT
Note 2: Payroll, number of employees, benefits, loans to employees, etc.
With regard to salary and remuneration to the Executive Management Team and Board members, reference is made to Note 9 Salaries and remuneration for Executive Management Team and Directors in the consolidated financial statements and the separate Remuneration report.
Remuneration to Ernst & Young for audit and audit-related services in 2024 was KNOK 593 (against KNOK 650 in 2023). Remuneration for other services was KNOK 123 (against KNOK 115 in 2023).
Note 3: Other operating income
Note 4: Other short term debt
Note 5: Tangible assets
Note 6: Other financial items
| Payroll (KNOK) | 2024 | 2023 |
|---|---|---|
| Salaries | 14,901 16,055 | |
| Social fee | 2,346 | 2,777 |
| Pension costs | 1,009 | 941 |
| Share based compensation | 4,232 | 6,395 |
| Other benefits | 256 | 367 |
| Total | 22,743 26,535 | |
| Number of full-time equivalents employed during the year: | 4 | 4 |
| Number of employees at the end of the year: | 4 | 4 |
| KNOK | 2024 | 2023 |
|---|---|---|
| Received management fee from Norwegian subsidiaries | 3,600 | 4,350 |
| Received management fee from Swedish subsidiaries | 3,656 | 4,350 |
| Received management fee from other subsidiaries | 7,230 | 8,692 |
| Total operating income | 14,486 17,392 |
| KNOK | 2024 | 2023 |
|---|---|---|
| Holiday pay owed | 1,092 | 986 |
| Accrued expenses | 1,545 | 2,954 |
| Earnout Hamari | - | 1,686 |
| Total other short term debt | 2,637 | 5,625 |
| KNOK | 2024 | 2023 |
|---|---|---|
| Acquisition costs 01.01 | 2,009 | 1,983 |
| Acquired | - | 26 |
| Acquisition costs 31.12 | 2,009 | 2,009 |
| Accumulated depreciations 01.01 | 1,973 | 1,945 |
| Depreciations of the year | 22 | 28 |
| Accumulated depreciations 31.12 | 1,995 | 1,973 |
| Book value as at 31.12 | 14 | 36 |
| Useful economic life | 3 years | |
| Depreciation method | Linear |
| KNOK | 2024 | 2023 |
|---|---|---|
| Interest income from group companies | 9,063 | 5,734 |
| Other interest income | 1,880 | 1,605 |
| Group contributions received from subsidiaries | 194 | - |
| Dividend received from associated companies | 300 | 300 |
| Currency gains | 9,631 | 9,617 |
| Dividend from subsidiaries | - 16,954 | |
| Reversal of earnout | 1,686 | - |
| Total financial income | 22,754 34,210 | |
| Other interest expenses | 17,526 10,601 | |
| Currency loss | 858 | 742 |
| Loss on investment in subsidiaries | - | 1,420 |
| Other financial expenses | 1,693 | 170 |
| Total financial expenses | 20,077 12,933 | |
| Net financial items | 2,678 21,276 |
| Income statement StrongPoint ASA |
|---|
| Balance sheet |
| Cash flow statement |
| Note 1 Accounting principles |
| Note 2 Payroll, number of employees etc |
| Note 3 Other operating income |
| Note 4 Other short term debt |
| Note 5 Tangible assets |
| Note 6 Other financial items |
| Note 7 Share capital and shareholder information |
| Note 8 Equity |
| Note 9 Interest-bearing debt |
| Note 10 Shares in subsidiaries |
| Note 11 Other long term investment |
| Note 12 Tax expense |
| Note 13 Cash and cash equivalents |
| Note 14 Macro perspectives influencing the business |
FINANCIAL STATEMENTS
Consolidated Financial Statements Auditor's Report
ABOUT STRONGPOINT
Note 7: Share capital and shareholder information
The company's share capital per 31.12.2024 comprises the following share classes:
Overview of shareholders per 31.12.2024
Note 8: Equity
Own shares:
Per 31.12.2024 the company owned 194,374 own shares. Cost price of these was KNOK 4,422.8, giving an average share price of NOK 22.75.
| Number | Nominal value Book value | ||
|---|---|---|---|
| Shares | 44,888,352 | 0.62 27,830,778 | |
| Total | 44,888,352 | 27,830,778 |
| No. | Name | No. of shares | % |
|---|---|---|---|
| 1 | STRØMSTANGEN AS | 3,933,092 | 8.8 |
| 2 | TOHATT AS | 2,225,000 | 5.0 |
| 3 | SOLE ACTIVE AS | 2,221,717 | 4.9 |
| 4 | BANK PICTET & CIE (EUROPE) AG | 1,981,821 | 4.4 |
| 5 | ZETTERBERG, GEORG (incl. fully owned companies) | 1,400,000 | 3.1 |
| 6 | NORDNET BANK AB | 1,320,626 | 2.9 |
| 7 | AVANZA BANK AB | 1,299,363 | 2.9 |
| 8 | RING, JAN | 1,243,374 | 2.8 |
| 9 | VERDADERO AS | 1,081,285 | 2.4 |
| 10 | JAHATT AS | 1,080,850 | 2.4 |
| 11 | MUEN INVEST AS | 806,000 | 1.8 |
| 12 | EVENSEN, TOR COLKA | 803,000 | 1.8 |
| 13 | HSBC BANK PLC | 702,612 | 1.6 |
| 14 | WAALER AS | 700,000 | 1.6 |
| 15 | BANQUE PICTET & CIE SA | 670,033 | 1.5 |
| 16 | JOHANSEN, STEIN | 600,000 | 1.3 |
| 17 | MP PENSJON PK | 561,402 | 1.3 |
| 18 | SKANDINAVISKA ENSKILDA BANKEN AB | 520,185 | 1.2 |
| 19 | ALS KINGFISHER LIMITED | 506,156 | 1.1 |
| 20 | EUROPEAN RETAIL ENGINEERING LIMITED | 506,156 | 1.1 |
| Sum 20 largest shareholders | 24,162,672 | 53.8 | |
| Sum 2 248 other shareholders | 20,725,680 | 46.2 | |
| Sum all 2 268 shareholders | 44,888,352 | 100.0 |
| Share | |||||
|---|---|---|---|---|---|
| Share | Treasury | Option | Other | ||
| KNOK | capital | shares | Program | equity | Total |
| Equity per 01.01 | 27,831 | -217 | 15,776 | 364,088 | 407,481 |
| Change of equity for the year: | |||||
| Sale of own shares | 97 | 1,755 | 1,852 | ||
| Share Option Program | 4,222 | 4,222 | |||
| Profit for the year | -6,857 | -6,857 | |||
| Equity per 31.12 | 27,831 | -121 | 19,998 | 358,985 | 406,698 |
| Numbers in thousand | 2024 | 2023 |
|---|---|---|
| 01.01 | 350 | 585 |
| Sale of own shares | -156 | -234 |
| 31.12 | 194 | 350 |
| Nominal value | 0.62 | 0.62 |
| Treasury shares specified in equity (KNOK) | 121 | 217 |
Income statement StrongPoint ASA Balance sheet Cash flow statement Note 1 Accounting principles Note 2 Payroll, number of employees etc Note 3 Other operating income Note 4 Other short term debt Note 5 Tangible assets Note 6 Other financial items Note 7 Share capital and shareholder information Note 8 Equity Note 9 Interest-bearing debt Note 10 Shares in subsidiaries Note 11 Other long term investment Note 12 Tax expense Note 13 Cash and cash equivalents Note 14 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Consolidated Financial Statements Auditor's Report
ABOUT STRONGPOINT
Note 9: Interest-bearing debt
Debts and terms of borrowing
During the fourth quarter, the refinancing from a bank overdraft of 150 MNOK with Danske Bank to Norion RCF of 140 MNOK, was completed. 120 MNOK was withdrawn per 31.12.2024. As part of this new financing, there is a 30% equity covenant. As per 31 December 2024, the groups equity ratio was 46%. The loans are secured.
Loan security per 31.12.2024
*The foreign companies liabilities are limited to the amount the guarantor at any time has drawn.
Note 10: Shares in subsidiaries
Note 11: Other long term investment
| Distribution repayment loans (KNOK) | 2024 | 2023 |
|---|---|---|
| Due within one year | 120,000 | - |
| Debt, not time-restricted (group credit account) | 158,101 | 234,334 |
| Total short term liabilities to credit institutions | 278,101 | 234,334 |
| Lender (KNOK) | 2024 | 2023 Borrowing terms | Interest terms | |
|---|---|---|---|---|
| Multi-currency, group credit account | 158,101 234,334 Overdraft internal not time limited |
5.80 % | ||
| Credit facilities | 120,000 | - Repayment/renewal in 2025 | 10.49 % | |
| Total interest-bearing debt | 278,101 234,334 |
| Asset (NOK) | Book value / nominal security |
|
|---|---|---|
| Co-surety Norway, Sweden, The Baltics and UK * | 120,000 |
| Company | Address | Main area of business | Stake Book Value | |
|---|---|---|---|---|
| StrongPoint AS | Oslo | Service and product provider | 100% | 37,942 |
| StrongPoint AB | Göteborg (Sweden) | Service and product provider | 100% | 139,224 |
| StrongPoint UAB | Vilnius (Lithuania) | Service and product provider | 100% | 20,348 |
| StrongPoint S.L.U. | Madrid (Spain) | Service and product provider | 100% | 69,033 |
| StrongPoint E-com AB | Täby (Sweden) | Service and product provider | 100% | 58,864 |
| Air Link Group Ltd | Birmingham (UK) | Service and product provider | 100% | 116,488 |
| StrongPoint Investering AS | Oslo | Investment company | 100% | 4,001 |
| StrongPoint Hamari Oy | Finland | Service and product provider | 100% | 6,939 |
| Total | 452,838 |
| Company | Main area of business | Stake Book Value | |
|---|---|---|---|
| Spok AS | Service company | 50% | 1,700 |
| Total | 1,700 |
Income statement StrongPoint ASA Balance sheet Cash flow statement Note 1 Accounting principles Note 2 Payroll, number of employees etc Note 3 Other operating income Note 4 Other short term debt Note 5 Tangible assets Note 6 Other financial items Note 7 Share capital and shareholder information Note 8 Equity Note 9 Interest-bearing debt Note 10 Shares in subsidiaries Note 11 Other long term investment Note 12 Tax expense Note 13 Cash and cash equivalents Note 14 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Consolidated Financial Statements Auditor's Report
ABOUT STRONGPOINT
Note 12: Tax expense
Deferred tax assets are recognized on the balance sheet, as they are expected to be utilised through future group contribution from subsidiaries in Norway.
Note 13: Cash and cash equivalents
The parent company shares a credit facility with the rest of the group. The group as whole may withdraw up to KNOK 140 000 from the group's credit facility.
Note 14: Macro perspectives influencing the business
Economic conditions
Inflation and interest rates have started to come down during 2024, however this varies within the markets in which we operate, consequently impacting our customers' investment spend differently across the regions.
Global supply chain and component shortages
The Group may be influenced by component shortages and other supply chain issues, as was seen during the COVID 19 pandemic. StrongPoint works closely with suppliers to ensure as little effect on customer deliveries as possible. There were no major shortages impacting the business during 2024.
Climate
Global climate changes influence both StrongPoint, customers and suppliers in different ways, contributing to both risks and opportunities.
Climate risks are related especially to shortage of energy for the production and distribution of goods, both proprietary solutions and third party products. If climate changes requires dramatic changes in the energy consumption, this will influence StrongPoints ability to produce the products. Hardware represents 55% of the business. Risk is also related to shortages on food, which will affect the customers of StrongPoint, and shortages of raw materials for specific components. Management does not see this as a risk in the short term.
Climate opportunities are linked to both StrongPoint solutions that can reduce energy consumption, like AutoStore storage of frozen goods. StrongPoint ALS (UK/Ireland) is providing refurbishment of interior or point of sales physical installation, and this can contribute positive to climate if utilized in other markets.
| Tax expenses for the year are as follows (KNOK): | 2024 | 2023 |
|---|---|---|
| Change in deferred tax | -2,482 | -1,931 |
| Tax expense | -2,482 | -1,931 |
| Reconciliation from nominal to actual tax rate (KNOK): | 2024 | 2023 |
| Ordinary profit before tax | -9,339 | 5,206 |
| Expected income tax based on nominal rate of tax 22% | -2,055 | 1,145 |
| Tax effect of the following items: | ||
| Permanent differences | -427 | -3,076 |
| Tax expense | -2,482 | -1,931 |
| Effective tax rate | 26.6 % -37.1 % | |
| Overview of deferred tax assets (KNOK): | 2024 | 2023 |
| Fixed assets | -121 | -150 |
| Liabilities | -22,359 -18,128 | |
| Profit and loss account | 53 | 66 |
| Losses carried forward | -9,476 | -2,410 |
| Net negative differences | -31,904 -20,621 | |
| Deferred tax assets | 7,019 | 4,537 |
| KNOK | 2024 | 2023 |
|---|---|---|
| Unused overdraft facility | 66,952 55,847 | |
| Cash and cash flow in the cash flow statement | - | - |
Income statement StrongPoint ASA Balance sheet Cash flow statement Note 1 Accounting principles Note 2 Payroll, number of employees etc Note 3 Other operating income Note 4 Other short term debt Note 5 Tangible assets Note 6 Other financial items Note 7 Share capital and shareholder information Note 8 Equity Note 9 Interest-bearing debt Note 10 Shares in subsidiaries Note 11 Other long term investment Note 12 Tax expense Note 13 Cash and cash equivalents Note 14 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Consolidated Financial Statements Auditor's Report
ABOUT STRONGPOINT
Responsibility statement
We confirm that, to the best of our knowledge, the consolidated financial statements for the year ended 31 December 2024 have been prepared in accordance with IFRS as adopted by the EU, that the financial statements for the parent company for the year ended 31 December 2024 have been prepared in accordance with the Norwegian Accounting Act, that they give a true and fair view of the Company's and Group's assets, liabilities, financial position and results of operations, and that the
Report of the Board of Directors gives a true and fair review of the development, performance and financial position of the Company and the Group and includes a description of the principle risks and uncertainties that they face.
Oslo, 19 March 2025
Morthen Johannessen Chairman
Ingeborg Molden Hegstad Director
Cathrine Laksfoss Director
Audun Nordtveit Director
Pål Wibe Director
Jacob Tveraabak CEO
Income statement StrongPoint ASA Balance sheet Cash flow statement Note 1 Accounting principles Note 2 Payroll, number of employees etc Note 3 Other operating income Note 4 Other short term debt Note 5 Tangible assets Note 6 Other financial items Note 7 Share capital and shareholder information Note 8 Equity Note 9 Interest-bearing debt Note 10 Shares in subsidiaries Note 11 Other long term investment Note 12 Tax expense Note 13 Cash and cash equivalents Note 14 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Consolidated Financial Statements Auditor's Report
ABOUT STRONGPOINT
Auditor's report
Statsautoriserte revisorer Ernst & Young AS Stortorvet 7, 0155 Oslo Postboks 1156 Sentrum, 0107 Oslo Foretaksregisteret: NO 976 389 387 MVA Tlf: +47 24 00 24 00
www.ey.no Medlemmer av Den norske Revisorforening
A member firm of Ernst & Young Global Limited
To the General Meeting in Strongpoint ASA
INDEPENDENT AUDITOR'S REPORT
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Strongpoint ASA (the Company) which comprise:
- The financial statements of the company, which comprise the balance sheet as at 31 December 2024 and income statement, and cash flows statement for the year then ended and notes to the financial statements, including a summary of significant accounting policies, and
- The financial statements of the group, which comprise the balance sheet as at 31 December 2024, the statement of comprehensive income, cash flow statement and statement of changes in equity for the year then ended and notes to the financial statements, including material accounting policy information.
In our opinion:
- the financial statements comply with applicable statutory requirements,
- the financial statements give a true and fair view of the financial position of the company as at 31 December 2024 and its financial performance and cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and
- the consolidated financial statements give a true and fair view of the financial position of the group as at 31 December 2024 and its financial performance and cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the EU.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company and the Group in accordance with the requirements of the relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 25 years from the election by the general meeting of the shareholders for the accounting year 2000.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for 2024. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Independent auditor's report - Strongpoint ASA 2024
A member firm of Ernst & Young Global Limited
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors' report
- is consistent with the financial statements and
- contains the information required by applicable statutory requirements.
Our statement on the Board of Directors' report applies correspondingly for the statement on Corporate Governance.
Responsibilities of management for the financial statements
Management is responsible for the preparation of the financial statements of the Company that give a true and fair view in accordance with simplified application of international accounting standards according to section 3-9 of the Norwegian Accounting Act, and for the preparation of the consolidated financial statements of the Group that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU. Management is responsible for such internal control as management determines is
Income statement StrongPoint ASA Balance sheet Cash flow statement Note 1 Accounting principles Note 2 Payroll, number of employees etc Note 3 Other operating income Note 4 Other short term debt Note 5 Tangible assets Note 6 Other financial items Note 7 Share capital and shareholder information Note 8 Equity Note 9 Interest-bearing debt Note 10 Shares in subsidiaries Note 11 Other long term investment Note 12 Tax expense Note 13 Cash and cash equivalents Note 14 Macro perspectives influencing the business
FINANCIAL STATEMENTS
Consolidated Financial Statements Auditor's Report
ABOUT STRONGPOINT
Auditor's report
3
Independent auditor's report - Strongpoint ASA 2024
A member firm of Ernst & Young Global Limited
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's and the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or the Group, or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's and the Group's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's and the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company and the Group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the board of directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
4
Independent auditor's report - Strongpoint ASA 2024 A member firm of Ernst & Young Global Limited
From the matters communicated with the board of directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirement
Report on compliance with regulation on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Strongpoint ASA we have performed an assurance engagement to obtain reasonable assurance about whether the financial statements included in the annual report, with the file name strongpoint-2024-12-31-0-en.zip, have been prepared, in all material respects, in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material respects, in compliance with the ESEF Regulation.
Management's responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF Regulation. This responsibility comprises an adequate process and such internal control as management determines is necessary.
Auditor's responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material respects, the financial statements included in the annual report have been prepared in accordance with the ESEF Regulation. We conduct our work in accordance with the International Standard for Assurance Engagements (ISAE) 3000 – "Assurance engagements other than audits or reviews of historical financial information". The standard requires us to plan and perform procedures to obtain reasonable assurance about whether the financial statements included in the annual report have been prepared in accordance with the ESEF Regulation.
As part of our work, we perform procedures to obtain an understanding of the company's processes for preparing the financial statements in accordance with the ESEF Regulation. We test whether the financial statements are presented in XHTML-format. We evaluate the completeness and accuracy of the iXBRL tagging of the consolidated financial statements and assess management's use of judgement. Our procedures include reconciliation of the iXBRL tagged data with the audited financial statements in humanreadable format. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Oslo, 20 March 2025 ERNST & YOUNG AS
The auditor's report is signed electronically
Finn Espen Sellæg State Authorised Public Accountant (Norway)
StrongPoint ASA | Brynsengveien 10, 0667 Oslo | Tel: +47 934 03 254 | strongpoint.com