StrongPoint

Investor Presentation • Oct 22, 2015

Presentation of 3rd quarter October 22nd 2015 8:15 am

Agenda

• Highlights 3 rd quarter & YTD 2015
• Segment financials
• Why rebranding?
• Business model, solutions/markets, management
• Growth strategy going forward
• Q & A

StrongPoint Mission

Driving retailers' productivity by providing innovative integrated technology solutions

Highlights 3 rd quarter 2015

• Group operating revenues: MNOK 288,9 (MNOK 206,3)
• Group EBITDA: MNOK 26,8 (MNOK 14,1)
• Comprehensive and successful re-branding project

	03 2015			03 2014
MNOK	Revenues	EBITDA	EBT	Revenues	EBITDA	EBT
Proprietary Technologies	120.9	17,3	14.9	123.6	11,6	7.7
3rd party Technologies	129,4	7,6	6,1	51,7	2,7	0,3
Labels	43.4	5.9	2,3	39,0	3.6	0,2
Eliminations / ASA	$-4.8$	$-4.0$	$-7.9$	$-7.9$	$-3.9$	$-3,4$
Total	288,9	26,8	15,4	206,3	14.1	4,8

Highlights YTD 2015

• Group operating revenues: MNOK 830 (MNOK 576,4)
• Group EBITDA: MNOK 70 (MNOK 34,2)

	YTD 2015			YTD 2014
MNOK	Revenues	EBITDA	EBT	Revenues	EBITDA	EBT
Proprietary Technologies	359.9	46.2	37,8	332.5	26.7	14,7
3rd party Technologies	350,9	21.4	15,7	140,7	8,4	5,3
Labels	138,3	16,5	6,1	124,4	8,6	$-0.6$
Eliminations / ASA	$-12.7$	$-13.6$	$-16,6$	$-21.3$	$-9,5$	$-10,1$
Total	836,5	70,5	43,0	576.4	34.2	9,3

Revenues per quarter & 12 months rolling

EBITDA per quarter and 12 months rolling

3 rd quarter revenues categories

	03 2015		03 2014
MNOK	New sales	Service	New sales	Service
Proprietary Technologies	66,6	54,2	77.6	46,0
3rd party Technologies	112,2	17,2	37.6	14,1
Labels	43.4	0,0	39.0	0,0
Eliminations / ASA	$-4.8$	0,0	$-7.9$	0,0
Total	217.4	71,5	146.2	60.1

Revenues categories – YTD 2015

	YTD 2015		YTD 2014
MNOK	New sales	Service	New sales	Service
Proprietary Technologies	229,7	130,3	212.5	120,0
3rd party Technologies	270,9	80,1	103,0	37,7
Labels	138,3	0,0	124,4	0,0
Eliminations / ASA	$-12.7$	0,0	$-21,3$	0,0
Total	626,1	210,3	418,6	157.7

3 rd quarter revenues per geography

		03 2015			03 2014
			Other			Other
MNOK	Norway	Sweden	markets	Norway	Sweden	markets
Proprietary Technologies	33.5	55,6	31,8	35,7	57.4	30,4
3rd party Technologies	80,5	24.2	24,8	10.2	20,0	21,5
Labels	14.2	27,9	1,3	14,0	24.1	0,8
Eliminations / ASA	$-0.2$	$-4,0$	$-0,6$	$-0.7$	$-7.7$	0,5
Total	127,9	103,7	57,3	59,3	93,8	53,2

Revenues per geography - YTD

		YTD 2015			YTD 2014
			Other			Other
MNOK	Norway	Sweden	markets	Norway	Sweden	markets
Proprietary Technologies	92,6	158,3	109.1	93.7	154,5	84,3
3rd party Technologies	185.4	97.1	68,5	46,7	72.5	21,5
Labels	48.8	85,9	3.6	44.4	77.9	2,0
Eliminations / ASA	$-0.9$	$-11,3$	$-0.6$	$-0,6$	$-20,3$	$-0,4$
Total	325,9	330,0	180,6	184,3	284,6	107,4

Group balance sheet - Total assets

Inventory up by MNOK 1.6 from end Q2

A/R up by MNOK 33.8 compared to Q2

KNOK	30.09.2015	30.09.2014	30.06.2015	31.12.2014
ASSETS
Intangible assets 1)	77924	114 132	77 341	86 175
Goodwill	150 914	128 274	141 900	141 759
Tangible assets	51 302	42 349	49 917	42 839
Long term investments	481	480	481	481
Other long term receivables	1950		1800	1850
Deferred tax	29 217	26 668	31 669	39 221
Non-current assets	311 787	311 903	303 106	312 326
Financial investments	58	1673	53	27
Goods	102 700	108 641	101 072	95 575
Accounts receivable	246 366	154 313	212 524	156 903
Prepaid expenses	11479	11665	11 5 21	10 3 23
Other receivables	19614	10 207	17 015	16 721
Bank deposits	14 099	18635	12 7 28	18973
Current assets	394 316	305 134	354 914	298 522
TOTAL ASSETS	706 103	617 037	658 020	610847

Group balance sheet – Total equity & liabilities

Total net interest bearing debt MNOK 112.0 – up by 4,1 from end Q2

• Disposable liquidity MNOK 58.8
• 104 544 own shares, representing 0.2 per cent
• A/P MNOK 145,5 – up by 20,6 from end Q2

KNOK	30.09.2015	30.09.2014	30.06.2015	31.12.2014
EQUITY AND LIABILITIES
Share capital	27 513	27 513	27 513	27 513
Holding of own shares	$-65$	-65	-65	-65
Other equity	254 262	202 171	221835	219 072
Total equity	281 711	229 619	249 284	246 520
Long term interest bearing liabilities	47 794	46 998	48 740	39 481
Other long term liabilities	30 240	25 7 7 8	27 102	28 691
Total long term liabilities	78 035	72776	75 842	68 172
Short term interest bearing liabilities	78 342	92 867	71903	46 634
Accounts payable	145 504	106 210	124 917	105 502
Taxes payable	38		35	127
Other short term liabilities	122 474	115 565	136 039	143 891
Total short term liabilities	346 358	314 642	332 894	296 155
TOTAL FOUITY AND LIABILITIES	706 103	617 037	658 020	610847

Financials – Cash flow statement

KNOK	03 2015	03 2014	YTD 2015	YTD 2014	YEAR 2014
Net cash flow from operation	$-4865$	$-9371$	$-6283$	$-16428$	45 890
Net cash flow from investment	$-978$	$-20558$	$-14095$	$-27930$	$-29529$
Net cash flow from financing	21	34 015	8 5 20	55 007	$-6288$
Net change in cash	$-5822$	4 0 8 6	$-11858$	10 650	10 073
Effect of foreign exchange rate fluctuations on foreign currency
deposits	836	$-325$	627	$-569$	345
Cash and cash equivalents at the start of the period	12 7 28	14 874	18973	8 5 5 4	8 5 5 4
Cash and cash equivalents at the end of the period	7 741	18 634	7 741	18 635	18973

• Cash flow from operational activities: MNOK 4.9 (MNOK 9.4)
• Working capital increased by MNOK 14.9 during 3rd quarter

Third party technologies

• ESL Pricer roll-out with Meny supermarkets chain, 160 stores, completion November
• Installations to COOP/RIMI continues
• Continued work towards non-food
• Baltic 3rd quarter revenues MNOK 24.8
• EBITDA MNOK 1.6
• First Pricer order delivered in Estonia
• Market leader Digi scales

3rd quarter 2015 - highlights 3rd quarter and YTD 2015 - key figures

					YEAR
	03			YTD
MNOK	2015	2014	2015	2014	2014
Product Sales	112.2	37.6	270,9	103.0	162.7
Service	17.2	14.1	80.1	37.7	74.4
Revenue	129.4	51,7	350.9	140.7	237,1
EBITDA	7.6	2.7	21,4	8,4	25,5
EBITDA-margin	5.8%	5.2%	6.1%	6.0%	10,8%
EBT	6,1	0,3	15.7	5.3	20.1

Cash Security

• Significant improvement of EBITDA
• Chosen as the preferred partner for Sberbank in Russia
• StrongPoint Russia established
• Frame agreement to be signed during 4th quarter
• Quality issues eliminated
• New product portfolio well received

3rd quarter 2015 - highlights 3rd quarter & YTD 2015 - key figures

	03		YTD	YEAR
MNOK	2015	2014	2015	2014	2014
Product Sales	18.4	28.0	63.4	65.5	88,4
Service	12.6	5.5	35.0	22.2	28,5
Revenue	31,0	33,5	98,4	87,6	116,9
EBITDA	4.7	2.2	9,6	1.4	-1.7
EBITDA-margin	15.2%	6.6%	9.8%	1.6%	$-1.5%$
EBT 10	4,1	$-0.3$	7,2	$-5.7$	$-43.5$

Cash Management

• Successful introduction of new notes in Sweden – some initial issues solved
• Promising pilots in chains in Spain, Germany, Belgium and France
• Pilot installations in KL/Singapore ongoing
• Established local presence in SEA, first four systems invoiced.
• Prepare for new notes in Norway 5000 systems upgrade

3rd quarter 2015 - highlights 3rd quarter & YTD 2015 - key figures

	03		YTD	YEAR
MNOK	2015	2014	2015	2014	2014
Product Sales	37.0	41.4	132.6	126.1	165.8
Service	35.9	32.0	79.3	81.3	109,0
Revenue	72,9	73.4	211,9	207.5	274.8
EBITDA	11.4	10.0	36,0	26.1	37.0
EBITDA-margin	15.7%	13.6%	17.0%	12.6%	13,5 %
EBT	9.9	8,7	30.3	22.0	29.3

Vensafe - Loss prevention

• Growth in Germany & Belgium
• Increased volume in Norway & Sweden is a crystal clear goal
• Initiated marketing in Lithuania and APAC
• Pilots expanded in Norwegian Hotel chain – hotel shops

3rd quarter 2015 - highlights 3rd quarter & YTD 2015 - key figures

	03		YTD	YEAR
MNOK	2015	2014	2015	2014	$2014^{11}$
Product Sales	11.2	8,2	33.6	20.9	29.9
Service	5.8	8.4	16.0	16.5	24.2
Revenue	17,0	16.6	49.6	37.4	54.1
EBITDA	1.1	$-0.5$	0.6	$-0.9$	$-3.3$
EBITDA-margin	6.5%	$-3,3%$	1.3 %	$-2.3%$	$-6, 1%$
EBT	1,0	$-0.7$	0,2	$-1.7$	$-3.6$

Labels

• 11 % increase in turnover
• Significantly improvement of EBITDA
• Integration of manufacturing facilities in Norway completed
• New HP Indigo investment MNOK 8,8 installed at Tangen in February

3rd quarter 2015 - highlights 3rd quarter and YTD 2015 - key figures

		03		YTD
MNOK	2015	2014	2015	2014	2014
Product Sales	43.4	39.0	138.3	124.4	168.5
Revenue	43,4	39.0	138,3	124,4	168,5
EBITDA	5.9	3.6	16,5	8.6	17.1
EBITDA-margin	13,7%	9.3%	11.9 %	6.9%	10.2%
EBT	2,3	0.2	6,1	$-0.6$	4.8

Why -rebranding

Silos conglomerate

Branding conglomerate

strategic products/solutions fronting our customers

REDUCE THEFT INCREASE SECURITY CHECKOUT CONVENIENCE

REDUCE QUEUES PRICE INTEGRITY PAYMENT SIMPLICITY

INCREASE REVENUE REDUCE COST SHOP FLOOR SERVICE AND EFFICIENCY

Enabling store owners to reach their full potential

• Retail technology consulting
• Innovation

• System integration

• Installation and education

• Project planning and rollouts
• Service & support

Driving consumer shopping efficiency

HOW CONSUMERS BUY HOW CONSUMERS ARE REWARDED HOW CONSUMERS PAY

CONSUMER BEHAVIOR AND TRENDS

The Future of Retail = StrongPoint

Markets & organisation

Solutions & Markets

StrongPoint executive management

Workforce by function and geography

Growth strategies

Summary – growth strategy going forward

• Significant market investments in APAC & EMEA consolidate offerings and organizations. "Must" win efforts essential.
• Consolidate R&D common API/GUI StrongPoint Retail Highway StrongPoint Retail Suite
• Complete the re-branding; ONE Company project culture/values.
• StrongPoint growth combine organic with M&A
• StrongPoint e-Commerce footprint

StrongPoint and e-Commerce

StrongPoint Vision

Becoming a recognised global provider of retail technology solutions

Top 50 shareholders per September 30th 2015

No. Name	No. of shares	×
1 PINNÅS, ERIK (incl. fully owned companies) \	4 9 3 2 2 7 6	$11.1 \times$	28 SWEDBANK AB (PUBL)	300 968	$0.7 \times$
2 STRØMSTANGEN AS	3933092	$8.9 \times$	29 JOHANNESSEN, JAN TOMMY	250 000	$0.6 \times$
3 SKAGEN VEKST	3796612	$8.6 \times$	30 UGELSTAD, PER EINAR	235 191	$0.5\times$
4 HOLMEN SPESIALFOND	2500000	$5.6 \times$	31 FANA ELEKTRIKEREN AS	220 000	$0.5\times$
5 GLAAMENE INDUSTRIER AS	2107986	$4.8 \times$	32 BERNTSEN, HARALD	200 000	$0.5 \times$
6 SKANDINAVISKA ENSKILDA BANKEN AB.	1781253	$4.0 \times$	33 PARTREDERIET MAST ANS	192750	$0.4 \times$
7 AVANZA BANK AB	1773 206	$4.0 \times$	34 GAMMELSRØD, GUNNAR	174 588	$0.4 \times$
8 NORDNET BANK AB	1720 410	$3.9\times$	35 GRANBERG, KARL TRYGVE	173 000	$0.4 \times$
9 ZETTERBERG, GEORG (incl. fully owned companies).	1541304	$3.5\times$	36 HEIMDAL, MORTEN	172500	$0.4 \times$
10 WAALER, JØRGEN (incl. fully owned companies) *	1060000	$2.4 \times$	37 KAWA INVEST AS	162 000	$0.4 \times$
11 GRESSLIEN, ODD ROAR	1020 000	$2.3 \times$	38 HAGEN, JOSTEIN MAGNUS	160 000	$0.4 \times$
12 V. EIENDOM AS	966 887	$2.2 \times$	39 WEIBULL, JOAQUIM (incl. fully owned companies)	152 000	$0.3\times$
13 CARNEGIE INVESTMENT BANK AB.	829414	$1.9 \times$	40 G-EIENDOM AS	140 627	$0.3\times$
14 RING, JAN	705 122	$1.6 \times$	41 BAKKEN, VIDAR	131079	$0.3\times$
15 MP PENSJON PK	699 806	$1.6 \times$	42 DELTA INVEST AS	129722	$0.3\times$
16 ROMULD, ARVE	600 000	$1.4 \times$	43 PRIMA HOLDING AS	126 210	$0.3\times$
17 SVENSKA HANDELSBANKEN AB	597 257	$13 \times$	44 CK HOLDING AS	123 604	$0.3\times$
18 BUDVILAITIS, EVALDAS (incl. controlled companies) *	555709	$13 \times$	45 MAGNUS DEN GODE AS	120 858	$0.3\times$
19 JACOBSEN, SVEIN (incl. fully owned companies) *	442689	$1.0 \times$	46 SHB INVESTERING AS	120 000	$0.3\times$
20 BJØRNSTAD, DANIEL	410 350	$0.9\times$	47 KPT HOLDING AS	120 000	$0.3\times$
21 SAXO BANK A/S	397 639	$0.9\times$	48 NÆSS, BERNHARD.	113 000	$0.3\times$
22 JOHANSEN, STEIN	374 000	$0.8\times$	49 NORDNET LIVSFORSIKRING AS	108 871	$0.2 \times$
23 NISTAD GRUPPEN AS	338 300	$0.8\times$	50 PETTERSEN, ØYVIND	106 200	$0.2 \times$
24 KONGSRUD, RUNE JACOB	325 450	$0.7 \times$	Sum 50 largest shareholders	38 082 313	$85.8 \times$
25 FRANKMO, ÂGE	320 383	$0.7 \times$	Sum 1265 other shareholders	6 2 9 3 7 2 7	$14.2 \times$
26 ANDERSEN, BØRGE	317 000	$0.7 \times$	Sum all 1315 shareholders	44 376 040	$100.0 \times$
27 EVENSEN, TOR COLKA	303 000	$0.7 \times$	.

Questions?