StrongPoint

Earnings Release • Jul 14, 2020

CEO Jacob Tveraabak | CFO Hilde Horn Gilen July 14, 2020

Agenda

• Intro
• Highlights Q2 2020
• Other key financial figures

Intro

Amplified market fundamentals for StrongPoint from COVID-19, providing additional boost to "the double opportunity"

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

1. Incumbents: Pressure to establish online presence World-class e-commerce solutions for picking and delivery

In-store: Well positioned to provide technology solutions

Self checkout*

ESL

Vensafe*

Workforce management systems

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 Q2 2020

Highlights Q2 2020

Robust financial development in light of COVID-19

Very strong development within E-commerce logistics

Other important customer and partner contracts signed

2nd quarter revenue: overall relatively stable top line despite COVID-19

2nd quarter revenue in BAs: 2 % growth in Retail Technology and very strong Labels growth

Revenue MNOK

E-commerce and Check-out efficiency growing as revenue share 1

Relative share of revenue per segment Percent

Retail Technology

2nd quarter profitability: improved profitability

EBITDA MNOK

2nd quarter profitability in BAs: Maintained profitability in Retail Technology, and Labels with very strong performance 1

EBITDA MNOK

Very strong development within E-commerce logistics

• 70 % growth in E-commerce logistics revenue

• E-commerce logistics growth both from new customers and deepened relationship with existing customers
• Unprecedented interest in our E-commerce logistics solutions from grocery retail chains across the globe

Other important customer and partner contracts signed

• Signed sales and service partner agreement for Germany with PartnerTech Europe
• Large scale Self-Checkout rollout to Polish grocery retail chain through our partner PartnerTech Europe
• Signed a new General Agreement for up to 357 Cash-In-Transit cases (CIT) with Sberbank

Immediate business impact for StrongPoint*

Illustrative impact of COVID-19 on business areas

Positive Negative

		Norway	Sweden	The Baltics	Spain	Elsewhere
	Cash Security			N/A	N/A
	HORECA	N/A	N/A
	Non-grocery retail
	Grocery – in-store
	Grocery – e-commerce
	Labels			N/A	N/A	N/A

Retail Technology

*As per July 14, 2020

Helping retailers to stand out, sustain growth and spur productivity

• leveraging the arising opportunities within e-commerce and in-store technology

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

0,02

0,06

Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20

Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20

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

-0,05

0,05

Cash Flow effects first half 2020

Main elements in working capital: Changes COVID-19 related

• Inventory Q1 increased within Cash Management (production) and ESL (delivery safety), both reduced in Q2
• Receivables are healthy, majority of the receivables stems from large grocery retail customers in Norway, Sweden and Baltics.
• Negotiated new payment terms Q1 on rent and large suppliers. All due payments done end of Q2.

Increase in Net leverage to 1.57x rolling 12 months EBITDA Still solid financial position, although influenced by COVID-19

* Net Interest Bearing Debt / Rolling 12 EBITDA

Financial calendar 2020

Q3 2020 – 22.10

IR-contact:

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