StrongPoint

Earnings Release • Apr 29, 2020

StrongPoint ASA: Financial results for the first quarter of 2020

StrongPoint ASA: Financial results for the first quarter of 2020

(Oslo, Norway, 29 April 2020) StrongPoint ASA (StrongPoint, OSE: STRONG)

reported revenues of NOK 279.8 million in the first quarter of 2020, down from

NOK 288.2 million in the same quarter in 2019. The company's EBITDA in the

period came in at NOK 16.5 million (27.7), impacted amongst others by a negative

currency effect of NOK 4 million. StrongPoint experiences short-term effects

from the COVID-19-situation but reiterates the 2025 ambition of NOK 2.5 billion

in revenues and EBITDA margins of 13-15%.

"In the last few weeks, our main focus has been upholding the highest level of

safety for our employees, customers and business partners as part of the joint

pan-national efforts to protect vulnerable groups. I would like to express my

gratitude to the entire StrongPoint team and to our partners for their

dedication and hard work to rapidly adapt to a new reality, to mitigate the

effects of this pandemic and to help others where we can contribute. Despite the

COVID-19 situation, StrongPoint delivered growth in two of three business areas

in the first quarter and I am proud of what we have achieved during these

difficult times," says Jacob Tveraabak, Chief Executive Officer of StrongPoint.

StrongPoint reported revenues of NOK 279.8 million (288.2) in the first quarter

of 2020 and an EBITDA of 16.5 million (27.7), were the segment Retail Technology

delivered a growth of four per cent. A negative currency effect of NOK 4 million

impacted the EBITDA result in the period. Reported operating profit was NOK 4.5

million, down from NOK 14.1 million in the corresponding quarter in 2019, while

the cash flow from operating activities ended at NOK -4.9 million (10.7). The

company had a cash balance of NOK 54 million at the end of the quarter and

flexible credit facilities to cover short-term changes in working capital.

StrongPoint provided a COVID-19 business update 23 March 2020, outlining the

operational and financial effects from the current situation.

"We delivered solid financial performance in the first quarter despite the

negative COVID-19 effects at the end of the period and have a solid financial

position. StrongPoint plays a vital role in providing safe and efficient

solutions for the grocery retailers, and my colleagues have gone the extra mile

to safeguard uninterrupted supply and services for our customers in this

situation. StrongPoint as a company has also been affected by travel

restrictions and social distancing measures in various markets. As an example,

the normal service program for non-grocery stores in Spain is not possible to

maintain in a lockdown situation. We have implemented short-term measures to

mitigate these effects while maintaining the momentum when resuming to a more

normalized situation," Tveraabak continues.

In a strategy update session in the first quarter of 2020, StrongPoint outlined

the strategy and ambitions for the company towards 2025. As a foundation for

creating shareholder value, the growth strategy is based on profitable and

organic growth, cost control and a solid balance sheet, targeting revenues of

NOK 2.5 billion and EBITDA margins of 13-15% in 2025.

"The COVID-19 situation has also emphasized the many advantages of StrongPoint´s

solutions and we are experiencing an increased interest from major retailers for

our entire e-commerce solutions offering, including our picking solution, Pick &

Collect, as well as our Click & Collect locker solutions. As deliveries of our

lockers from China commences, we expect the roll-out of such locker modules to

increase in the months and years to come. The next months will be challenging,

but with our strong market position, the order intake in the last few weeks, and

the increased interest in our e-commerce solutions provides room for optimism

and we reiterate our long-term ambitions," Tveraabak concludes.

StrongPoint ASA will present the financial results for the first quarter 2020 at

08:15 CET Wednesday 29 April 2020. The presentation will be streamed live and

can be followed at the company website.

EBITDA and other alternative performance measures (APMs) are defined and

reconciled to the IFRS financial statements on page 21 in the attached quarterly

report.

For additional information please contact:

Jacob Tveraabak

CEO, StrongPoint ASA

Phone +47 90 82 13 70

Hilde Horn Gilen

CFO, StrongPoint ASA

Phone +47 920 60 158

About StrongPoint | www.strongpoint.com

StrongPoint is driving productivity for European retailers by providing

innovative, integrated technology solutions for multi-channel retailing based on

long-standing relationships with customers and partners. StrongPoint is also a

leader in IBNS solutions for Cash-In-Transit (Cash Security), and Labels for

customers in Norway and Sweden. StrongPoint offers best-in-class service and

consultancy expertise through its team of 520 employees in Norway, Sweden, the

Baltics, France, Germany, Belgium, Spain and Russia. StrongPoint is

headquartered in Rælingen, Norway, and listed on the Oslo Stock Exchange

(ticker: STRONG).

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act