Third quarter 2018
CEO Jacob Tveraabak CFO Anders Nilsen
October 19, 2018
Agenda
- Intro
- Highlights Q3 2018
- Key figures
- Q&A
Mission
"Driving retailers productivity by providing innovative integrated technology solutions"
StrongPoint – a Retail Technology provider
Revenue YTD Q3 100% = 760 MNOK
Retail Technology
- Strong base of proprietary products for in-store productivity improvements
- Excellent starting point for further E-commerce growth
- Unique position with 3rd party solution partners, in particular with Pricer
Own Technologies
| AMBIENT |
|
CHILLED |
|
_
_
the control of the control of |
FROZEN |
|
|
|
|
10 |
__
_
______ |
13 |
16 |
| $\overline{2}$ |
5 |
8 |
11 |
|
14 |
17 |
|
|
|
12 |
|
15 |
18 |
Strong market fundamentals for retail technology
B2C e-commerce sales in Europe EUR bn
Double opportunity for StrongPoint
-
- E-commerce: most of our clients want to grow within e-commerce
-
- In-store: all of our clients need to improve store operations productivity
Regardless of our clients' own view on e-commerce, the impact on the industry follows
ILLUSTRATIVE
Retail in-store economics
Increasing pressure to improve in-store productivity – Retail Technology is a vital part of the solution for retail companies
Highlights
Highlights
Solid quarterly financials
Significant customer wins
Strengthening the organization
Optimizing costs and focusing efforts
Solid quarterly financials: 14% revenue growth vs. last quarter
Revenue MNOK
Solid quarterly financials: slight growth in EBITDA vs. last quarter
EBITDA MNOK
Solid quarterly financials: 8% growth in recurring revenue
Aftermarket revenue, 12 trailing months* MNOK
* Aftermarket revenue consists of service revenue and license fees, and installation income. 12 trailing month recurring, ending q3 every year
- Break-through with StrongPoint CUB's e-commerce solution to major Danish retail chain
- 85 Self Check-Out HW & SW orders roll-out in H2 in "Home"
- Cash Management solution to Airport Rail Link provider in Southeast Asia
- Pricer ESL in ~350 Joker stores in Norway
- Pricer installation of up to MNOK 50 at Scandinavian DIY chain
- Order for close to 960 CIT cases to Sberbank
Strengthening the organization 3
• Enhancing our sales efforts
- Establishing E-commerce unit, being led by Göran Thörn (CUB)
- Putting more emphasis on partner sales of our proprietary solutions with the hiring of Roine Gabrielsson as SVP Global Partners
- Re-establishing Cash Security as a separate business unit, being led by Lars-Åke Köpper
- Re-organizing product development
- Elevating Julius Stulpinas to SVP Technology
- Establishing "Retail Technology Product Board" led by Lars-Åke Köpper
- Dedicated team for E-Commerce product line led by Göran Thörn
StrongPoint's Executive Management Team* Home EMEA Global Partners* E-commerce Technology Cash Security Labels Retail Technology ▪ Norway ▪ Sweden** ▪ Baltics** ▪ Focus countries ▪ "Road Runners" ▪ Partner countries (other than "Home" and EMEA focus countries) ▪ Full Ecommerce value chain with development and sale of ▪ CUB ▪ Click & Collect ▪ …++ ▪ Product Development ▪ Product Management ▪ Full Cash Security value chain ▪ Full Labels value chain Area of responsibility BU-leader, SVP Per Haagensen Trond Kongrød Roine Gabrielsson* Göran Thörn Julius Stulpinas* Lars-Åke Köpper Leif Persson and MD Hiring in process Jacob Tveraabak Supply Chain ▪ Supply Chain/Sourcing (incl. hardware for Click & Collect) Lars-Åke Köpper CEO Anders Nilsen CFO SVP People & Organization VP Marketing** Rūta Kairienė 3
Optimizing costs and focusing efforts – summary 4
- Result of cost optimization of 30* MNOK p.a. effect with no negative effect on operations
- Product finalization and better role alignment
- Synergies in establishing E-commerce unit
- SG&A cost reduction
- Enhancing our sales efforts further
- Commercializing E-commerce (Cub) outside Sweden
- Stepping up "RoadRunner" concept (small, selected agents) in key EMEA markets
- Expecting growth in sale of proprietary solutions through Partners
- Focus on M&A and Strategic Partnerships
Enhancing sales efforts: Commercializing E-commerce (Cub) outside Sweden 4
Proof of commercialization outside Sweden: Major danish grocery chain chooses our E-commerce Logistics Suite
CUB-integration with Pricer: allows for "pick by light", increasing productivity in picking of goods
4 Enhancing sales efforts: Stepping up "RoadRunner" concept
"RoadRunners"
- Small, selected agents focused on selling CashGuard to small businesses, and the HORECA segment
- ~40 agents with more about 200 sales people covering Iberia
Capturing window of opportunity for CashGuard in Europe 4
Number of invoiced CashGuards
Number of CashGuards
Cash is still king in parts of Continental Europe
Large window of opportunity for CashGuard sale
StrongPoint innovating its sales model, adding in "Road Runners" and exploring "cashmanagement-as-a-service" in addition to traditional sale
* Incl. APAC ** Invoiced number of CashGuards per Q3 is 1,480
4 Focusing our efforts: Partners
Revenue Proprietary Retail Technology through Partners MNOK
Partner sale only ~10% of all sale of Proprietary Retail Technology (excluding service income)
Should be significant opportunity to grow partner sales, which also have attractive margins throughout StrongPoint's value chain
Key Figures
Revenue Q3 2017-2018 MNOK
Revenue Q3 2017-2018 MNOK
Revenue YTD
Revenue YTD 2017-2018 MNOK
Revenue YTD 2017-2018 MNOK
EBITDA Q3 2017-2018 MNOK
EBITDA Q3 2017-2018 MNOK
EBITDA YTD
EBITDA YTD 2017-2018 MNOK
EBITDA YTD 2017-2018 MNOK
Balance Sheet
CashFlow YTD 2018 MNOK
Investor Relations
Main communication channels
- Reports, webcasts, etc. under "Investor" tab
- News articles under "News" tab
- Newsletters and Social Media
Financial calendar 2019
• 2018 Q4 presentation on February 28, 2019
IR-contact: CFO Anders Nilsen
Q&A
Jacob Tveraabak CEO
Anders Nilsen CFO
Thank you!