StrongPoint

Investor Presentation • Oct 24, 2014

PSI Group ASA

3 rd Quarter 2014 presentation, October 24th 2014 – 8:15am

Jørgen Waaler, CEO

PSI Group mission

"Driving Retailers' productivity by providing innovative integrated Technology Solutions"

Agenda

• Highlights 3rd quarter
• Group P/L, Group BS & Group CF
• Segment P/L & Segment market update
• New Vision acquisition
• PSI Group strategy going forward
• Capital Markets day December 4th
• Received questions from shareholders general Q & A

Highlights 3rd quarter 2014

Group operating revenues: MNOK 206,3 (MNOK 144,9)

An increase of 42 per cent.

Group EBITDA: MNOK 14.1 (MNOK 10.1)

An increase of 40 per cent

	Q3 2014		Q3 2013
MNOK	Revenues	EBITDA	Revenues	EBITDA
PSI Technology	123,6	11,6	76,9	5,7
PSI Retail	51,7	2,7	43,9	6,0
PSI Label	39,0	3,6	26,1	0,9
Group	0,1	$-3,9$	0,1	$-2,8$
Eliminations	$-8,1$	0,0	$-2,1$	0,3
Total	206,3	14,1	144.9	10,1

Significant acquisition of New Vision Baltic July 2014

Strategic milestone for PSI Group – geographically & Retail software solutions

Sales last 12 quarters

Group P&L statement

KNOK	Q3 2014	Q3 2013	YTD 2014	YTD 2013	2013
Sales revenues	206315)	144 937	576351	527 960	716 506
Profit from AC, Service companies				2 3 6 7	2 3 6 7
Cost of goods sold	107 259	75 115	287 490	285 533	378 473
Payroll	58 291:	40 114	177 998	141 575	196 806
Other operating expenses	26 696	19638	76 689	64 5 69	89 438
Total operating expenses	192 246	134 867	542 177	491 678	664 718
EBITDA	14 069	10 071	34 173	38 649	54 155
Depreciation tangible assets	2974	2767	8786	7 2 6 3	10573
Depreciation intangible assets	5853	3810	14 5 14	10 400	15 2 9 9
EBIT	5242	3 4 9 3	10874	20 987	28 2 8 3
Interest	$-1262$	$-523$	$-2985$	$-3421$	$-4314$
Other financial income	795.	32 166	1418	31740	32 414
EBT	4775	35 137	9307	49 30 6	56 383

Group balance sheet - Total assets

• A/R up by MNOK 14.3 compared to Q2
• Inventory up by MNOK 16,2 compared to Q2

KNOK	30.09.2014	30.09.2013	30.06.2014	31.12.2013
ASSETS
Intangible assets	114 132	116 076	100 418	113747
Goodwill	128 274	110 607	107 295	110779
Tangible assets	42 349	37430	42 174	36 445
Long term investments	480	481	481	481
Deferred tax	26 668	16971	34 578	18084
Non-current assets	311 903	281 564	284 946	279 535
Financial investments	1673	25	51	26
Goods	108 641	81 255	92 421	85787
Accounts receivable	154 313	120 864	140 007	98 156
Prepaid expenses	11 665	10488	13 190	13899
Other receivables	10 207	12577	7092	8 2 8 5
Bank deposits	18 635	9 9 9 7	14874	8554
Current assets	305 134	235 206	267 635	214 706
TOTAL ASSETS	617 037	516 769	552 581	494 241

Group balance sheet – Total equity & liabilities

• A/P up MNOK 15.4 compared to Q2
• Total net interest bearing debt MNOK 121.2 – up from 82.5 end Q2
• Disposable liquidity MNOK 25
• 104 544 own shares, representing 0.2 per cent

KNOK	30.09.2014	30.09.2013	30.06.2014	31.12.2013
EQUITY AND LIABILITIES
Share capital	27 513	27 513	27 513	27 513
Holding of own shares	-65.	-409	-409	-409
Other equity	202 171	214 114	204 053	223 694
Total equity	229 619	241 218	231 157	250798
Long term interest bearing	46 998	45 875	37 230	43 603
Other long term liabilities	25 7 78	15 196		9764
Total long term liabilities	72 776	61 071	37 230	53 367
Short term interest bearing	92 867	37 678	60 179	9 2 7 1
Accounts payable	106 210	83 641	90 835	71 163
Taxes payable		618	-60	207
Other short term liabilities	115 565	92 544	133 239	109 435
Total short term liabilities	314 642	214 481	284 193	190 076
TOTAL EQUITY AND LIABILITIES	617 037	516 769	552 581	494 241

Financials – Cash flow statement

NOK thousand	Q3 2014	Q3 2013	YTD 2014	YTD 2013	2013
Cash flow from operation	$-9371$	8323	$-16428$	31 251	66 159
Cash flow from investment	$-20558$	25 4 4 7	$-27930$	18425	16887
Cash flow from financing	34 015	$-31498$	55 007	-43 573	-78 416
Net change in cash	4 0 8 6	2 2 7 3	10 650	6 103	4630
Effect of foreign exchange rate fluctuations on foreign
currency deposits	-325	104	$-569$	225	254
Cash and cash equivalents at the start of the period	14874	7621	8554	3670	3670
Cash and cash equivalents at the end of the period	18 6 35	9997	18635	9997	8554

• Cash flow from operational activities: MNOK - 9.4 (MNOK 8.3)
• Working capital increased by MNOK 15.2 during 3rd quarter
• Working capital increased by MNOK 44.0 during the first three quarters
• Very seasonal – we expect good cash flow in Q4

Business segments – Geographical markets

		Q3 2014			Q3 2013
			Other			Other
MNOK		Norway Sweden markets Norway Sweden markets
PSI Technology	35,7	57,4	30,4	34,0	25,0	17,8
PSI Retail	10,2	20,0	21,5	18,0	25,7	0,1
PSI Label	14,0	24,1	0,8	10,2	16,0	0,0
Group	0,1	0,0	0,0.	0,1	0,0	0,0
Eliminations	$-0,8$	$-7,7$	$0,5^-$	$-0,7$	$-0,6$	$-0,8$
Total	59,3	93,8	53,2	61,7	66,1	17,2

Business segments - Type of sales

	Q3 2014		Q3 2013
MNOK	New sales		Service: New sales	Service
PSI Technology	77,6	46,0	48,2	28,7
PSI Retail	37,6	14,1	30,4	13,6
PSI Label	39,0	0,0	26,1	0,0
Group	0,1	0,0.	0,1	0,0
Eliminations	$-8,1$	0.0 1	$-2,1$	0,0
Total	146,2	60,1	102,7	42,2

CashGuard

3 rd quarter 2014 - highlights 3

• 65 per cent increase in turnover
• 165 per cent increase in EBITDA
• Pilot installation in KL, Malaysia, running well
• Pilot installation in Singapore planned in November

rd quarter 2014 - key figures

	Q 3		YTD
MNOK	2014	2013	2014	2013	2013
Product Sales	41,4	23,6	126,1	88,9	133,7
Service	32,0	20,9	81,3	63,9	88,2
Revenue	73,4	44,5	207,5	152,8	221,8
EBITDA	10,0	3,8	26,1	18,9	30,5
EBITDA-margin	13,6%	8,4%	12,6%	12,4%	13,8%
EBT	8,7	0,4	22,0	9,0	18,4

Key International Partners Key International Customers

3 rd quarter 2014 - highlights 3

• Started pilot with Kaiser Tängelman & preparation for the pilot with a large Italian supermarket chain.
• Negotiations with a large supermarket in Belgium
• All sales & service activities in Norway moved to PSI

rd quarter 2014 - key figures

	Q3	YTD
MNOK	2014	2014
Product Sales	8,2	20,9
Service	8,4	16,5
Revenue	16.6	37,4
EBITDA	$-0.5$	-0,9
EBITDA-margin	$-3.3%$	-2,3 %
EBT	-0.7	-1,7

Key International Partners Key International Customers

SQS Security

3 rd quarter 2014 - highlights 3

• 3 % increase in turnover
• Quality issues solved and controlled client confidence improving
• Looking for new partners in Russia
• New VP sales started August 1st
• New VP Business Development started August 1st

rd quarter 2014 - key figures

	Q 3		YTD
MNOK	2014	2013	2014	2013	2013
Product Sales	28,0	24,6	65,5	82,5	101,6
Service	5,5	7,8	22,2	22,7	32,3
Revenue	33,5	32,4	87,6	105,2	133,9
EBITDA	2,2	2,0	1,4	$-0,5$	$-5,8$
EBITDA-margin	6,6%	6,1%	1,6%	$-0,5%$	$-4.4%$
EBT	$-0,3$	$-0,7$	$-5,7$	$-8,7$	$-17,4$

Key International Partners Key International Customers

PSI Retail

3 rd quarter 2014 - highlights 3

• Systems integration & service of third party technologies
• 18 % increase in turnover
• New Vision revenue 3rd quarter MNOK 21,5

rd quarter 2014 - key figures

	Q 3		YTD
MNOK	2014	2013	2014	2013	2013
Product Sales	37,6	30,4	103,0	155,7	195,4
Service	14,1	13,6	37,7	53,5	67,6
Revenue	51,7	43,9	140,7	209,2	263,0
EBITDA	2,7	6,0.	8,4	27,0	35,7
EBITDA-margin	5,2%	13,6%	6,0%	12,9%	13,6%
EBT 1	0,3	38,0	5,3	57,0	66,2

PSI Labels

3 rd quarter 2014 - highlights 3

rd quarter 2014 - key figures

• 49 % increase in turnover
• Significantly improvement of EBITDA
• Continued integration in Sweden
• New VP PSI Labels Leif Persson

	Q 3		YTD
MNOK	2014	2013	2014	2013	2013
Product Sales	39,0	26,1	124,4	65,0	101,8
Revenue	39,0	26,1	124,4	65,0	101,8
EBITDA	3,6	0,9	8,6	0,9	4,5
EBITDA-margin	9,3%	3,4%	6,9%	1,4%	4,4%
EBT	0,2	$-1,5$	$-0,6$	$-3,3$	$-3,2$

Why New Vision acquisition?

• Baltic market leader within Retail Solutions
• New geographical footprint for CashGuard & Vensafe
• Advanced software solutions and software development competence and business consultancy
• New geographical footprint for New Vision applications in Norway and Sweden
• Highly valued by customers within Retail technology, Retail equipment field service, Self checkout competence and a skilled consulting organization

PSI Group going forward – The future of retail

PSI Group – The Retail Solutions experts

Capital Market day – December 4th 9:00-12:00 Key preliminary topics

• Strategy – where is PSI Group in 2020? – And How?
• New Vision – retail concepts & driving force within PSI Group strategy
• CashGuard in new markets & retail payment solutions

Top 50 shareholders per September 30st 2014

No.	Name	No. of shares	%
	1 PINNAS, ERIK (incl. fully owned companies) 1	4932276	11,1 %	27 FANA ELEKTRIKEREN AS	238 000	0,5%
	2 GLAAMENE INDUSTRIER AS	4 131 077	9,3%	28 DELTA INVEST AS	205 287	0,5 %
	3 STRØMSTANGEN AS	3933092	8,9%	29 ISAKSEN DØDSBO, NILS-OLAV	202 981	0,5 %
	4 SKAGEN VEKST	3796612	8,6 %	30 PRIMA HOLDING AS	200 000	0,5%
	5 HOLMEN SPESIALFOND	2 500 000	5,6 %	31 BERNTSEN, HARALD	200 000	0,5 %
	6 AVANZA BANK AB	1800810	4.1%	32 JOHANNESSEN, JAN TOMMY	200 000	0,5 %
	7 NORDNET BANK AB	1689941	3,8%	33 PARTREDERIET MAST ANS	192750	0.4 %
	8 ZETTERBERG, GEORG (incl. fully owned companies)	1530404	3,4 %	34 SVENSKA HANDELSBANKEN AB	178402	0,4 %
	9 SKANDINAVISKA ENSKILDA BANKEN	1408021	3,2%	35 KARLSSON, HENRIK	176 158	0,4 %
	10 WAALER, JØRGEN (incl. fully owned companies) 1	1050000	2,4 %	36 UGELSTAD, PER EINAR	171 100	0.4%
	11 GRESSLIEN, ODD ROAR	965 000	2,2%	37 GAMMELSRØD, GUNNAR	165 318	0,4 %
	12 V. EIENDOM AS	880 000	2.0%	38 HAGEN, JOSTEIN MAGNUS	164 000	0,4 %
	13 RING, JAN	704 222	1,6 %	39 GRANBERG, KARL TRYGVE	163 000	0,4 %
	14 MP PENSJON PK	699 806	1,6 %	40 WEIBULL, JOAQUIM (incl. fully owned companies)	152 000	0.3%
	15 BUDVILAITIS, EVALDAS (incl. controlled companies) 1	555 709	1,3%	41 KAWA INVEST AS	151 000	0,3 %
	16 ROMULD, ARVE	500 000	1,1 %	42 HEIMDAL, MORTEN	150 000	0.3%
	17 JACOBSEN, SVEIN (incl. fully owned companies) 1	450 000	1.0%	43 GEHRKEN INVEST AS	144 627	0.3%
	18 SAXO PRIVATBANK A/S	408 650	0,9 %	44 CK HOLDING AS	123 604	0.3%
	19 SWEDBANK AB (PUBL)	351482	0,8%	45 SHB INVESTERING AS	120 000	0.3%
	20 NISTAD GRUPPEN AS	338 300	0.8%	46 BAKKEN, VIDAR	115 079	0,3 %
	21 FRANKMO, ÅGE	320 383	0,7%	47 STOCK PROPERTY INVEST AS	106 500	0,2%
	22 BJØRNSTAD, DANIEL	301772	0,7%	48 PSI GROUP ASA	104 544	0,2%
	23 KONGSRUD, RUNE JACOB	280 213	0.6%	49 OPERA FINANS AS	100 000	0.2%
	24 ANDERSEN, BØRGE	254 995	0.6%	50 SKASLIEN, KNUT ARNE	98 500	0,2%
	25 EVENSEN, TOR COLKA	250 000	0.6%	Sum 50 largest shareholders	38 105 615	85,9%
	26 JOHANSEN, STEIN	250 000	0,6%	Sum 1 598 other shareholders	6 270 425	14,1 %
				Drive all 4, 040 alegealeridage	14.970.040.400.06

Questions from shareholders

• IR policy – how and when should we release more information?
• How about guiding next quarter(s)?
• Do we see any advantages with New Vision with regard to sales of SQS products in Russia?
• Technical/quality challenges in SQS Russia solved? Other banks in Russia?
• How does the EU vs. Russia conflict affects our business in Russia?
• How have we succeeded with direct sales strategy - approaching top level management? Specifically for CashGuard?
• What is the status of the Monero solution line from CashGuard?
• Are we able to carry-forward Vensafe accumulated losses of MNOK 100?

Questions?