StrongPoint

Earnings Release • Jul 14, 2023

StrongPoint: Second quarter and first half 2023 financial results

StrongPoint: Second quarter and first half 2023 financial results

14.7.2023 08:00:01 CEST | StrongPoint | Half yearly financial reports and audit

reports / limited reviews

(Oslo, 14 July 2023) StrongPoint ASA reported revenues of NOK 337 million in the

second quarter of 2023, NOK 16 million higher than same quarter in 2022 (321).

The EBITDA declined by NOK 7.7 million to NOK 2.1 million (9.8). StrongPoint

today reconfirms the financial ambition of NOK 2.5 billion in revenues and

EBITDA margins of 13-15 % in 2025.

"The pressure on disposable household income continues as interest rates rise,

leading to discounters gaining market share as consumers look to cheaper

options. Although the grocery market is a relatively stable and resilient, this

competitive pressure is driving traditional grocery retailers to postpone or

hold back investments. We foresee this to be short-term actions to alleviate the

financial pressures on many grocery retailers. The medium to long-term outlook

of retail technology, and for StrongPoint, is as positive as ever," says Jacob

Tveraabak, Chief Executive Officer of StrongPoint.

StrongPoint reported revenues of NOK 337 million (321) in the second quarter of

2023 and an EBITDA of NOK 2.1 million (9.8). The second quarter EBIT was NOK -

7.3 million and EBT was NOK - 1.1 million. Cash flow from operating activities

was NOK 60.2 million (- 37.3).

"We expect the most mature StrongPoint markets, Norway and Sweden, to perform

better in the second half of 2023, whilst continuing the strong performance in

the Baltics. Regarding the UK, Irish and Spanish markets, we are very excited

about opportunities in the short and long-term. The UK is particularly ripe for

a number of the efficiency saving solutions we supply, and I gladly repeat my

expectations to announce at least one major deal with a StrongPoint affiliated

solution in the UK in 2023. In Spain, we are excited about revealing more

details of the prospects of the extremely important cash management project

sometime during the third quarter," Tveraabak continues.

In a strategy update session held in February 2023, StrongPoint reiterated the

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

"The introduction of more efficiency saving solutions, in which technology plays

an important role, will continue to be a significant long-term trend. This is a

megatrend that StrongPoint is ready and well positioned to ride. As such, we

continue to be confident in achieving our 2025 strategic ambitions," Tveraabak

concludes.

StrongPoint will host a streamed presentation of the second quarter results at

08:30 CET Friday 14 July 2023.

The webcasts will be available atstrongpoint.com - http://strongpoint.com.

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

reconciled to the IFRS financial statements as a part of the APM section of the

second quarter 2023 financial report on page 25.

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act.

CONTACTS

* Jacob Tveraabak, CEO StrongPoint ASA, +47 908 21 370,

jacob.tveraabak@strongpoint.com

ABOUT STRONGPOINT

StrongPoint is a grocery retail technology company that provides solutions to

make shops smarter, shopping experiences better and online grocery shopping more

efficient. With over 500 employees in Norway, Sweden, the Baltics, Spain, the UK

and Ireland and together with a wide partner network, StrongPoint supports

grocery and retail businesses in more than 20 countries. StrongPoint provides

in-store cash management and payment solutions, electronic shelf labels,

self-checkouts, task and labor management software, click & collect

temperature-controlled grocery lockers, in-store and drive-thru grocery pickup

solutions and grocery order picking solutions, both manual and automated.

StrongPoint is headquartered in Norway and is listed on the Oslo Stock Exchange

with a revenue of approx 1.4bn NOK [ticker: STRO].

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17847450/2491/3458/Download%20announcement

%20as%20PDF.pdf

StrongPoint Q2 and 1st half 2023.pdf -

https://kommunikasjon.ntb.no/ir-files/17847450/2491/3455/StrongPoint%20Q2%20and%

201st%20half%202023.pdf

StrongPoint Q2 and 1st half 2023 print.pdf -

https://kommunikasjon.ntb.no/ir-files/17847450/2491/3456/StrongPoint%20Q2%20and%

201st%20half%202023%20print.pdf

StrongPoint Q2 and 1st half 2023 presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847450/2491/3457/StrongPoint%20Q2%20and%

201st%20half%202023%20presentation.pdf