StrongPoint — Earnings Release 2019

Oct 31, 2019

3 rd quarter 2019

CEO Jacob Tveraabak | CFO Hilde Horn Gilen

October 31, 2019

Agenda

• Intro
• Highlights Q3 2019
• Other key financial figures
• Q&A

Mission

"Driving retailers productivity by providing innovative integrated technology solutions"

Strong market fundamentals for retail technology – providing a "double opportunity" for StrongPoint

Our Solutions

Key focus areas

• I. Maintain and grow relevance with retailers in current key Markets (Norway, Sweden, Baltics)
• II. Significantly grow presence with retailers in Spain to mirror key Markets' penetration
• III. Grow e-commerce into a substantial portion of StrongPoint's business

… and be the best owner and employer for all businesses under the StrongPoint-umbrella

Highlights Q3 2019

Highlights Q3 2019

Strong performance in Retail Technology, however overall flat performance

Several customer breakthroughs and deliveries

Important milestones for go-to-market model

rd quarter revenue: 2% growth vs. last year

Revenue MNOK

Revenue

MNOK

rd quarter profitability in BAs: Strong performance in Retail Technology

EBITDA MNOK

Note: Quarterly figures in 2019 include positive effect of IFRS 16 of MNOK 3.6 for Retail Technology, MNOK 0.8 for Cash Security, and MNOK 1.2 for Labels

Several customer break-throughs and deliveries 2

• ~80% growth in sale of our e-commerce solutions (yet from a small base) with continued deliveries to retailers in primary markets
• Delivered the first integrated automated age verification based on facial recognition into our Self-Checkout and Vensafe solutions in the Baltics
• Completed the first installations of the new Cash Management solutions: Unico and Compact

3 Important milestones for go-to-market model

• ~50% growth in Cash Management solutions through RoadRunners concept in Spain vs. last year, with continued strong interest in rental solutions (same level as Q2)
• Partner agreement with Exclusivas Iglesias for distribution of StrongPoint's solutions in Portugal

Direction and initiatives forward

Focus! On Retail Technology; and continued utilization of Partners where that makes sense

• Restructuring our internal partner setup; handling by operational BUs
• Adjusting our go-to market approach in Germany
• I. Maintain and grow relevance with retailers in key markets (Norway, Sweden, Baltics):
• Strong expressed interest from customers in Reflexis, WFM & Task management system
• Continuous exploration of 3rd party technology solutions to introduce to our key markets
• II. Significantly grow presence with retailers in Spain:
• Continuous recruitment to build organization and presence, primarily in Sales and Marketing
• Operationalizing the improved value proposition for RoadRunners: Unico and Compact added to our Cash Management portfolio
• Building on e-commerce momentum in Spain: significant interest in picking and delivery solutions
• III. Grow e-commerce into a substantial portion of StrongPoint's business:
• Investments in E-commerce Logistics Suite ("E20") to improve scalability of solution sales
• Expansion of E-commerce solutions portfolio in the making
• Recruiting Sales personnel for international growth

Other key financial figures

Earnings per share (EPS)

EPS per quarter EPS rolling 12 month

* EPS adjusted for amortisation of intangible assets, mainly from M&A

Cash Flow effects in 2019

Cash MNOK

• Working Capital development mainly related to seasonal changes in receivables and prepaid expenses
• Capex and change in debt is influenced by Rental Solution Cash Management Spain

Net leverage of 1.24x rolling 12 months EBITDA

* Net Interest Bearing Debt / Rolling 12 EBITDA ** Including IFRS 16 balance effect

Investor Relations – ambition to increase share liquidity

• Commissioned Research ABGSC
• Meetings held with current and potential investors
• Meetings held with Corporate Finance players
• Increased coverage in media
• Web-page, Social Media, Press Release
• Market Making agreement with Sparebank 1 Markets

Investor Relations

Financial calendar 2020

• Q4 2019 12.02 (Strategy Update Session)
• Q1 2020 29.04 (General Assembly)
• Q2 2020 14.07
• Q3 2020 22.10

IR-contact:

CFO Hilde Horn Gilen hilde.gilen@strongpoint.com +47 920 60 158

Jacob Tveraabak CEO

Hilde Horn Gilen CFO

Thank you!