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StrongPoint

Earnings Release Oct 22, 2020

3767_rns_2020-10-22_9d5cdf3f-59c0-465a-8485-b21a6c978487.pdf

Earnings Release

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Q3 2020

CEO Jacob Tveraabak CFO Hilde Horn Gilen October 22, 2020

Agenda

  • Intro
  • Highlights Q3 2020
  • Other key financial figures

Our WHY statement

We work at StrongPoint because we know that every retailer will get a smarter shop, and every end-customer will get a better shopping experience with our solutions.

In a shop or online.

This will give more time, lower prices, better service, fresher products, and ultimately we all get a better and smarter life

"Retail technology in every shopping experience for a smarter and better life"

Strong market fundamentals providing a "double opportunity" for StrongPoint

E-COMMERCE

Retailers' needs

1. In-store: Pressure on brick & mortar retailers' margin

Opportunity for StrongPoint

Technology solutions in-store to improve retailers' productivity, provide safe shopping and hence uphold margins

2. E-commerce: Pressure to develop online presence

World-class e-commerce solutions for picking and delivery

In-store: Well positioned to provide technology solutions

Self checkout*

Electronic Shelf Labels (Pricer)

Vensafe*

Workforce management system (Reflexis)

Cash management*

Pick & Collect*

Click & Collect lockers*

*StrongPoint's proprietary technologies

E-commerce: StrongPoint's e-commerce logistics solutions serves the full logistics value chain

Highlights Q3 2020

Highlights Q3 2020

Continued sales success in priority areas

Steady progress on key pillars of 2025 strategic ambitions

Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

rd quarter revenue: strong top line growth

rd quarter revenue in BAs: growth in all Business Areas

Revenue MNOK

A balanced solutions portfolio 1

Relative share of revenue per segment Percent

Retail Technology

In-store productivity

Payment Solutions

E-commerce Logistics

Labels

Note: Roundings may make total different than 100%

Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

rd quarter profitability : Increased EBITDA in all BAs

EBITDA MNOK

Continued sales success in priority areas

  • Order of Pricer ESL for NorgesGruppen estimated at ~70 MNOK
  • Click & Collect delivered to key markets, and several proof of concepts progressing
  • Continued strong demand internationally for our e-commerce picking solution

3

Steady progress on key pillars of 2025 strategic ambitions

  • Proven operational leverage in Norway, Sweden and the Baltics
  • Initial delivery on required supporting elements of Strategy 2025, incl. recruitment of sales and marketing resources and implementation of CRM system
  • Proposed dividend for 2019 at Extraordinary General Meeting October 22, 2020

"Retail technology in every shopping experience for a smarter and better life"

2025 ambitions

1Organic growth ambition 2Norway, Sweden, the Baltics and Spain 3Cash Management solutions in e.g., Italy and Greece, and E-commerce solutions globally 4The Nordics and the Baltics

Other key financial figures

Earnings per share (EPS) improved in Q3

EPS per quarter NOK per share

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

Cash Flow effects YTD

Decrease in Net leverage to 1.06x rolling 12 months EBITDA Solid financial position

* Net Interest Bearing Debt / Rolling 12 EBITDA

Dividend for 2019 to be decided in Extraordinary General Meeting at 0900 CET 22 October 2020

Dividend NOK per share

  • Historic view: year-on-year slightly positive trend
  • Confirmed ambition at the Strategy Update Session 2020

* Proposed dividend to EGM

Financial calendar 2021

Q4 2020 – 11.02

Q1 2021 – 28.04

Q2 2021 – 14.07

Q3 2021 – 21.10

Strategy Update Session: February 11, 2021 Annual General Meeting: April 28, 2021 Location to be announced

IR-contact:

CFO Hilde Horn Gilen [email protected] +47 920 60 158

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