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StrongPoint Investor Presentation 2010
3767_rns_2010-10-29_8645daff-b57a-42f8-8cee-b8cabd29b9ec.pdf
Investor Presentation
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PSI Group ASA
3rd quarter 2010 Presentation, October 29th 2010
Jørgen Waaler, CEO
CashGuard
PSI Group
SQS
Security Qube System
Business Vision
Become a leading global provider of closed and secure cash handling solutions wherever cash moves
CashGuard
PSI Group
SQS Security Gaba System
Agenda
- Highlights
- Financials
- Operations & Markets
- Q&A
CashGuard
PSI Group
SQS Security Quire System
Highlights
- Key figures
- Operating revenues of NOK 114.1 million, down 1.9% from Q309
- EBITDA of NOK 12.1 million, up from NOK 0.3 million in Q309
-
Positive cash flow from operations of NOK 8 million
-
Strong performance within Retail Solutions
- Changes and focused product mix
-
Significant effects of cost reduction programs
-
Good performance within Cash Management Retail
- International sales increased
- Successful partner days in Stockholm
-
Increasing numbers of partners
-
Weak performance from Cash Management CIT/ATM
- Low investment ability within existing client base
- Slow development within new market segments – no Russian deliveries
- No indications of lost market share
CashGuard
PSI Group
SQS Security Quo System
Financials – P&L statement
- Operating income of NOK 114.1 million
- Gross margin from 52 % to 57%
- Personell costs down by 4,5 million.
- Other costs down by 2,1 million
| NOK thousand | Q3 2010 | Q3 2009 | Chg. % | 2010 YTD | 2009 YTD |
|---|---|---|---|---|---|
| Sales revenues | 114 127 | 115 915 | -1,5 % | 381 172 | 409 929 |
| Profit from AC - Service companies | -52 | 373 | -113,8 % | 1 129 | 1 615 |
| Operating revenues | 114 075 | 116 289 | -1,9 % | 382 302 | 411 545 |
| Cost of goods sold | 49 012 | 55 492 | -11,7 % | 167 182 | 177 764 |
| Payroll | 33 762 | 38 276 | -11,8 % | 126 410 | 132 909 |
| Other operating expenses | 19 178 | 22 191 | -13,6 % | 63 652 | 70 474 |
| Total operating expenses | 101 952 | 115 959 | -12,1 % | 357 243 | 381 147 |
| EBITDA | 12 124 | 329 | 3581,2 % | 25 058 | 30 398 |
| Depreciation tangible assets | 2 896 | 2 915 | -0,6 % | 8 204 | 7 058 |
| Depreciation intangible assets | 3 987 | 4 054 | -1,6 % | 11 641 | 12 247 |
| Write down intangible assets | - | - | 0,0 % | - | - |
| EBIT | 5 240 | -6 640 | -178,9 % | 5 213 | 11 093 |
| Interest | -1 998 | -2 703 | -26,1 % | -5 372 | -7 936 |
| Other financial income | -360 | -892 | -59,7 % | -2 611 | -2 546 |
| EBT | 2 882 | -10 235 | -128,2 % | -2 769 | 612 |
| Taxes | 712 | -2 786 | -125,6 % | -1 537 | -631 |
| Profit/loss after tax | 2 170 | -7 449 | -129,1 % | -1 233 | 1 242 |
CashGuard
PSI Group
SQS Security Quho System
12 months rolling
12 months rolling revenue (NOK million)
12 months rolling EBITDA (NOK million)
CashGuard
PSI Group
SQS Security Quho System
Revenue breakdown
Revenue per country
Revenue per business area
CashGuard
PSI Group
SQS Security Qube System
New products sales and service revenues
3rd quarter 2010
3rd quarter 2009
CashGuard
PSI Group
SQS Security Quire System
Balance sheet - Total assets
- A/R down by 20,0 million
- Inventory down by 5,6 million
| NOK thousand | 30.09.2010 | 30.09.2009 | 30.06.2010 | 31.12.2009 |
|---|---|---|---|---|
| ASSETS | ||||
| Intangible assets | 148 113 | 156 559 | 145 547 | 144 085 |
| Goodwill | 335 502 | 318 517 | 322 897 | 313 090 |
| Tangible assets | 32 785 | 39 600 | 34 554 | 38 171 |
| Long term investments | 9 381 | 9 531 | 10 493 | 9 677 |
| Deferred tax | 37 470 | 20 921 | 38 427 | 36 577 |
| Non-current assets | 563 252 | 545 128 | 551 918 | 541 599 |
| Financial investments | 25 | 25 | 25 | 25 |
| Goods | 78 614 | 84 182 | 76 605 | 75 137 |
| Accounts receivable | 94 017 | 114 081 | 92 340 | 90 320 |
| prepaid costs | 1 513 | 13 502 | -187 | 3 107 |
| Other receivables | 26 260 | 13 771 | 25 875 | 13 118 |
| Bank deposits | 4 871 | 6 426 | 5 943 | 9 692 |
| Current assets | 205 299 | 231 987 | 200 599 | 191 400 |
| TOTAL ASSETS | 768 551 | 777 115 | 752 518 | 732 999 |
CashGuard
PSI Group
SQS Security Quho System
Balance sheet – Total equity & liabilities
- Net interest bearing debt increased by NOK 3.2 million compared to Q2 2010
- Total net interest bearing debt NOK 204.5 million end Q3 2010
- Disposable liquidity reduced by NOK 7 million to NOK 11.2 million
- 1,197,927 own shares, representing 5.4% (unchanged)
| NOK thousand | 30.09.2010 | 30.09.2009 | 30.06.2010 | 31.12.2009 |
|---|---|---|---|---|
| EQUITY AND LIABILITIES | ||||
| Share capital | 13 757 | 13 757 | 13 757 | 13 757 |
| Holding of own shares | -743 | -743 | -743 | -743 |
| Other equity | 381 907 | 353 750 | 364 775 | 351 131 |
| Total equity | 394 921 | 366 764 | 377 789 | 364 145 |
| Long term interest bearing liabilities | 3 635 | 90 895 | 72 134 | 81 800 |
| Other long term liabilities | 14 911 | 12 456 | 16 139 | 16 268 |
| Total long term liabilities | 18 546 | 103 351 | 88 273 | 98 068 |
| Short term interest bearing liabilities | 205 754 | 137 363 | 135 099 | 115 452 |
| Accounts payable | 56 766 | 75 385 | 51 475 | 51 141 |
| Taxes payable | 86 | - | 86 | 86 |
| Other short term liabilities | 92 479 | 94 251 | 99 795 | 104 107 |
| Total short term liabilities | 355 085 | 307 000 | 286 456 | 270 785 |
| TOTAL EQUITY AND LIABILITIES | 768 551 | 777 115 | 752 518 | 732 999 |
CashGuard
PSI Group
SQS Security Quire System
Financials – Cash flow statement
- Increase in Working capital by NOK 8 million in the quarter
- Reduction other short term debt by NOK 6.8 million
| NOK thousand | Q3 2010 | Q3 2009 | 2010 YTD | 2009 YTD | Year 2009 |
|---|---|---|---|---|---|
| Net cash flow from operation | 7 967 | 12 988 | 1 053 | 4 699 | 42 704 |
| Net cash flow from investments | 1 296 | -2 452 | -3 181 | -7 743 | -17 533 |
| Net cash flow from financing | -10 652 | -13 577 | -3 192 | -10 113 | -34 784 |
| Net change in cash | -1 388 | -3 041 | -5 321 | -13 158 | -9 614 |
| Exchangevariance | 316 | -413 | 499 | -1 435 | -1 712 |
| Cash and cash equivalents at the beginning of the period | 5 943 | 9 879 | 9 692 | 21 018 | 21 018 |
| Cash and cash equivalents at the end of the period | 4 871 | 6 426 | 4 871 | 6 426 | 9 692 |
CashGuard
PSI Group
SQS Security Quake System
12 months rolling
12 months rolling CF from operations (NOK million)
CashGuard
PSI Group
SQS Security Quake System
Operations – Business units
CashGuard
PSI Group
SQS
Security Qube System
PSI organisation structure
CashGuard
PSI Group
SQS
Security Qube System
Retail Solutions
- In Store Retail Technology Solutions
- Leading technologies
- Complex integration knowledge
- Presence in Norway and Sweden
- Dominating position in both countries
- Independent supplier to retail stores
- Country-wide service organizations
CashGuard
PSI Group
SQS
Security Qube System
Retail Solutions
3rd quarter highlights
- 5.6 % turnover growth and NOK 11.8 million EBITDA growth.
- 260 CashGuard systems sold in Q310 compared to 293 in Q309
- Focused product mix for retailers
- Increased efficiencies and cost savings
3rd quarter Key Figures
| 3rd quarter | Full year | ||
|---|---|---|---|
| 2010 | 2009 | 2009 | |
| Revenue new sale | 58.5 | 62.6 | 302.6 |
| Revenue services | 33.4 | 24.4 | 91.2 |
| Total operating revenue | 91.9 | 87.0 | 393.8 |
| EBITDA | 11.9 | 0.1 | 14.9 |
| EBITDA-margin | 13.0% | 0.2% | 3.8% |
CashGuard
PSI Group
SQS Security Quire System
Retail Solutions
CashGuard
PSI Group
SQS
Security Quo System
Cash Management Retail
- Develops & markets closed & secure cash handling solutions to retailers.
- Outsourced manufacturing.
- Channel strategy: Sales through partners only.
- Strong market leader in Norway and Sweden – with a promising international potential.
CashGuard
PSI Group
SQS Security Qube System
Cash Management Retail
3rd quarter highlights & outlook
- 51 % growth in turnover
- 170 CashGuard systems delivered outside Scandinavia
- Two new distribution agreements in the quarter – in Austria and Belgium
- The 16 000 units mark celebrated last week of September.
- Successful partner days completed
3rd quarter Key Figures
| 3rd quarter | Full year | ||
|---|---|---|---|
| 2010 | 2009 | 2009 | |
| Revenue new sale | 27.3 | 18.2 | 105,8 |
| Revenue services | 0.2 | 0.0 | 1,6 |
| Total operating rev. | 27.5 | 18.2 | 107.4 |
| EBITDA | 3.8 | -0.8 | 7.6 |
| EBITDA-margin | 13.6% | -4.4% | 7.1% |
CashGuard
PSI Group
SQS Security Qube System
Cash Management Retail
12 months rolling revenues
CashGuard
PSI Group
SQS Security Quo System
Cash Management ATM & CIT
- Develops, manufactures & markets closed & secure cash handling solutions to the ATM & CIT market segments
- Market leader – High quality – high value.
- In-house manufacturing
CashGuard
PSI Group
SQS Security Quo System
Cash Management ATM & CIT
3rd quarter highlights
- 40 % decline in turnover
- Low investment ability for existing customers and slow development in new markets
- Russian deliveries delayed due to negotiation challenges with Russian distributor partner
3rd quarter Key Figures
| 3rd quarter | Full year | ||
|---|---|---|---|
| 2010 | 2009 | 2009 | |
| Revenue new sale | 11.3 | 19.5 | 138,6 |
| Revenue services | 5.2 | 8.0 | 35,1 |
| Total operating rev | 16.5 | 27.5 | 173.7 |
| EBITDA | -1.4 | 1.5 | 28.7 |
| EBITDA-margin | -8.6% | 5.5% | 16.5% |
CashGuard
PSI Group
SQS Security Quake System
Cash Management ATM & CIT
12 months rolling revenues
CashGuard
PSI Group
SQS Security Quo System
EUROPEAN CENTRAL BANK
EUROSYSTEM
Cash Trends & Facts
Banknote circulation:
- 13.6 billion banknotes worth €814 billion
- €500 and €50 have highest shares in circulation value
- €50 is most used (in numbers)
Coin circulation:
91 billion coins worth € 22 billion
CashGuard
PSI Group
SQS Security Qube System
Cash Trends & Facts
Percentage of 'unbanked' in the EU 16 countries
CashGuard
PSI Group
SQS
Security Quake System
Cash Trends & Facts
The objective of the Commission’s proposal
To facilitate cross-border transport of euro cash by road within the euro area
by removing regulatory obstacles to professional transport of euro cash by road
under conditions that ensure a high level of security for the CIT-staff and the general public.
CashGuard
PSI Group
SQS Security Guiso System
Top 20 shareholders per 30 September 2010
| No. | Name | No. of shares | % |
|---|---|---|---|
| 1 | PINNÁS, ERIK (incl. fully owned companies) ¹ | 2 961 276 | 13,3 % |
| 2 | SKAGEN VEKST OG SKAGEN VEKST III | 1 355 798 | 6,1 % |
| 3 | PSI GROUP ASA (own holding) | 1 197 927 | 5,4 % |
| 4 | DYVI CAPITAL AS ¹ | 1 183 024 | 5,3 % |
| 5 | BARCLAYS CAP SEC CAYMAN CLIENT | 1 072 681 | 4,8 % |
| 6 | AWAKE SWEDISH EQUITY FUND | 652 000 | 2,9 % |
| 7 | ZETTERBERG, GEORG (incl. fully owned companies) | 496 003 | 2,2 % |
| 8 | DETALJHANDELSEKONOMI I ENKÖPING AB | 453 920 | 2,0 % |
| 9 | GLAAMENE INDUSTRIER AS | 415 318 | 1,9 % |
| 10 | RING, JAN | 364 832 | 1,6 % |
| 11 | NISTAD GRUPPEN AS | 338 300 | 1,5 % |
| 12 | GRESSLIEN, ODD ROAR | 313 000 | 1,4 % |
| 13 | WAALER AS ¹ | 280 000 | 1,3 % |
| 14 | LÖFMAN, MICHAEL | 267 319 | 1,2 % |
| 15 | NORDNET PENSIONSFÖRSÄKRING AB | 249 156 | 1,1 % |
| 16 | JP MORGAN CHASE BANK | 227 577 | 1,0 % |
| 17 | FÖRSÄKRINGSAKTIEBOLAGET, AVANZA PENSION | 217 449 | 1,0 % |
| 18 | V. EIENDOM AS | 211 400 | 1,0 % |
| 19 | NORDNET BANK AB | 203 143 | 0,9 % |
| 20 | SWEDBANK LUXEMBOURG S.A. | 196 011 | 0,9 % |
| Sum 20 largest shareholders | 12 656 134 | 57,0 % | |
| Sum 8 349 other shareholders | 9 531 886 | 43,0 % | |
| Sum all 8 742 shareholders | 22 188 020 | 100 % |
¹ primary insiders
CashGuard
PSI Group
SQS Security Quire System
Questions?
"Zero losses - wherever cash moves"
CashGuard
PSI Group
SQS Security Quo System