StrongPoint — Investor Presentation 2017

Oct 20, 2017

Agenda

• Highlights 3rd quarter 2017
• Segment financials and status
• Our Vision Where are we?
• StrongPoint market positions and outlook
• Our Click & Collect view
• 2017 summary
• Q & A

Mission

9:30-13:00 Driving retailers productivity by providing innovative technology solutions

Highlights 3rd quarter

• Group operating revenues MNOK 204.8 (MNOK 258.0)
• Group EBITDA MNOK 14.1 (MNOK 36.2)
• Cash flow from operations MNOK 2.2 (MNOK 23.8)
• Strengthens the position within Click & Collect
• Significant growth in Spain
• Significant improvements in Labels

Operating revenue per business area in the third quarter

Revenues per quarter 12 months rolling

EBITDA per quarter 12 months rolling

3 rd quarter 2017 revenues by solutions

		03 2017			03 2016
MNOK	Revenue EBITDA		EBT	Revenue EBITDA		EBT
Proprietary Technologies	97,1	4.1	0.8	139.5	30,5	27,4
3rd Party Technologies	68.3	4.8	3,4	82,0	5,4	3,0
Labels	43.5	8.6	4.7	39.5	4,3	1.1
Eliminations / ASA	$-4.1$	$-3.3$	$-4.4$	$-3.0$	$-3.9$	$-2.9$
Total	204.8	14.1	4,5	258,0	36.2	28,6

3 rd quarter 2017 revenues by categories

	03 2017 03 2016
MNOK	New sales	Service	New sales	Service
Proprietary Technologies	51,0	46,0	91,9	47,6
3rd Party Technologies	47,3	21.0	59,0	23,0
Labels	0.0	43.5	0,0	39,5
Eliminations / ASA	$-4.1$	0.0	$-3.0$	0,0
Total	94.3	110.5	148.0	110.1

Aftermarket revenue

Operating revenue 12 month rolling Retail Proprietary Technololgies per region

Group balance sheet - Total assets – 30.9.2017

• Inventory up by MNOK 11.3 from end Q2
• A/R up by MNOK 9.0 compared to Q2

KNOK	30.09.2017	30.09.2016	30.06.2017	31.12.2016
ASSETS
Intangible assets	47050	55 138	51311	55903
Goodwill	116088	116 199	118060	113 253
Tangible assets	82 29 8	53 666	84 017	85 440
Long term investments	1412	1546	1940	1625
Deferred tax	29 7 63	19563	31992	31445
Non-current assets	276 611	246 111	287 321	287 665
Goods	113648	92582	102 391	101 200
Accounts receivable	162 355	198841	153 363	161 202
Prepaid expenses	11 149	11479	14517	10799
Other receivables	23 111	11 286	22 616	31367
Bank deposits	24 3 29	11781	30 232	67090
Current assets	334 592	325 968	323 120	371 658
TOTAL ASSETS	611 203	572079	610440	659 323

Group balance sheet – Total equity & liabilities

• Net interest bearing debt MNOK 68.9 – up with 8.5 from end Q2
• Disposable liquidity MNOK 37.8
• 104 544 own shares, representing 0.2 per cent
• A/P MNOK 82.0 – up by 11.0 from end Q2

KNOK	30.09.2017	30.09.2016	30.06.2017	31.12.2016
EQUITY AND LIABILITIES
Share capital	27513	27513	27513	27513
Holding of own shares	$-65$	-65	-65	-65
Other equity	237 650	262862	239913	293 533
Total equity	265 098	290 310	267 361	320981
Long term interest bearing liabilities	26958	22 122	28345	32982
Other long term liabilities	3668		3730	5093
Total long term liabilities	30 626	22 122	32075	38 075
Short term interest bearing liabilities	66 236	22 160	62 239	28706
Accounts payable	81972	97 268	70975	102 480
Taxes payable				399
Other short term liabilities	167 271	140 219	177790	168 682
Total short term liabilities	315479	259 647	311 004	300 267
TOTAL FOLIITY AND LIARILITIES	611 203	572079	610 440	659323

Vision

Becoming a recognized global provider of retail technology solutions

Where are we?

StrongPoint reaching its vision

"We have already a good knowledge of StrongPoint solutions. We will return to the question of pilot projects after budget process."

"Thanks for your hospitality in Stockholm. It was a pleasure deep-diving into your SCO solution. We'll keep in touch – our 5000 SCOs may be replaced in the next 3-5 years and StrongPoint is in our mind"

"Vielen dank für ihre Cash Management Presidio Testprojekt. Wir sehen Möglichkeiten"

Two years since transition!

Two years since transition!

Showroom Moss 2015

Showroom in Kuala Lumpur

Showroom in Kuala Lumpur

Showroom in Kuala Lumpur

Showroom in Stockholm

New solutions - SIX months since launching!

Self Checkout Single slot Cash Mgt. Click & Collect

Outlook Home Markets

• Cash handling potential in Norway & Sweden diminishing as planned and predicted.
• We expect growth within new solutions areas Click & Collect and Self-Checkout.
• Three Swedish grocery chains prefer Select & Collect (Vensafe)
• We expect renewal RFP's for older ESL installations in Norway
• Significant recurring revenues base Labels growth

Outlook International Markets

Cash handling market growing, but volume not matching previous home market levels - yet

No of CashGuards	2014	2015	2016	2017/Q3
Home Markets	1376	1345	1111	267
International Markets	784	828	1841	1074
Total	2160	2172	2951	1341
International Ratio	$36 \%$	$38\%$	62%	80%

• Increasing interest for Click & Collect, Select & Collect and Self Checkout – however no quick sales!
• Continuously improved strategic key account management learning from home markets

Solutions/Markets Matrix

DIRECT SALES		NOR SWE	BAL	RUS	ESP	GER	FRA	BEL	MAL	SIN
Cash Management (CashGuard)
Select & Collect (Vensafe)
Click & Collect
Self Checkout
Cash Security
Electronic Shelf Labels (Pricer)
PARTNER SALES	DEN	UK	IRL	AUS	AUT	ITA	SLO	ZAF	FRA	ESP	USA
Cash Management (CashGuard)
Select & Collect (Vensafe)
Click & Collect
Self Checkout
Cash Security
Electronic Shelf Labels (Pricer)
Installed base/Continued sales
Sales & marketing activities
Not applicable/Not targeted

Click & Collect – France, Germany

Proportion of Consumers who have shopped online for groceries in 2016

eCommerce will account for 25 per cent of all chain retail sales by 2022

le choisis mon drive	Département, Code postal, Ville	JE VALIDE
Autour de moi		Carte $\equiv$ Liste
02 - St Quentin
02 - Viry Noureuil
05 - Gap
06 - Grasse
06 - Nice Cote d'Azur

	SIMPLYDRIVE fr devient Auchandrive.fr
59 - Villefranche sur Saône
53 - Beaumont 2

France has one of the world's leading online grocery markets.

The share of grocery sales made online in France is one of the world's largest. Germany lag France considerably in terms of ecommerce's share of grocery sales

Click & Collect market

Germany lag France considerably in terms of ecommerce's share of grocery sales

2017 Summary

• Basically "recurring" revenues only.
• MNOK 50 in R&D 13,4 per cent of 2016 proprietary product sales.
• MNOK 20 in marketing & branding.
• Assuming the same ordinary dividend as in 2016 5 per cent yield.
• We are working with exciting M&A opportunities and team is strengthened to three FTE.
• We cannot decide roll-out projects for our customers

Top 50 shareholders per September 30th

27 FRANKMO, ÂGE 313 034 8,9% STRØMSTANGEN AS 3933092 28 JOHANNESSEN, JAN TOMMY 311000 5.1% 2 HOLMEN SPESIALFOND 2 280 000 29 EVENSEN, TOR COLKA 310 000 4.7% 3 AVANZA BANK AB 2072148 30 NORDNET LIVSFORSIKRING AS 299 263 4.5% 4 SKAGEN VEKST 2 003 554 31 UGELSTAD, PER EINAR 264 720 4.5% 5 HSBC TTEE MARLB EUROPEAN TRUST 1976 000 32 FARSTAD, PETTER HAAVARD. 263714 6 PROBITAS HOLDING AS $4.0\%$ 1788 276 33 PINNÅS, DANIEL WEDUL $0.6\%$ 262 116 3,6% 7 ZETTERBERG, GEORG (incl. fully owned companies) 1610000 34 FANA ELEKTRIKEREN AS $0.6\%$ 250 000 1469 627 $3.3\%$ 8 NORDNET BANK AB 35 SWEDBANK AB $0.6\%$ 246 915 9 V. EIENDOM AS 2,3% 1007 134 36 KONGSRUD, RUNE JACOB $0.5\%$ 235 842 2,3% 10 WAALER, JØRGEN (incl. fully owned companies) 1 1000 000 37 NEVROKIRO INVEST AS $0.5\%$ 235 000 11 GLAAMENE INDUSTRIER AS 873549 $2.0\%$ $0.5\%$ 38 MSIP EQUITY 233 193 $1.9\%$ 12 RING, JAN 839 372 39 HELGØ INVESTERING AS $0.5\%$ 231948 828 202 $1.9\%$ 13 GRESSLIEN, ODD ROAR 40 CK HOLDING AS $0.5\%$ 223 604 14 MP PENSJON PK $18\%$ 777 402 $0.5\%$ 41 HEIMDAL, MORTEN 220 000 15 SKANDINAVISKA ENSKILDA BANKEN AB 534 952 $12\%$ 42 GAMMELSRØD, GUNNAR $0.5\%$ 210 255 $10\%$ 16 JOHANSEN, STEIN 450 000 $0.5\%$ 43 NÆSS, BERNHARD 207 000 17 VERDADERO AS $10\%$ 443760 $0.5\%$ 44 BERNTSEN, HARALD 200 000 18 NORDEA BANK AB 427 490 10% 45 MIDDELBOE AS $0.5\%$ 200 000 19 SVENSKA HANDELSBANKEN AB 410 435 $0.9\%$ 46 GRANBERG, KARL TRYGVE 0.4% 190 000 $0.9 \, \%$ 20 BUDVILAITIS, EVALDAS (incl. fully owned companies) 1 408 561 47 CITIBANK, N.A. 0.4% 185 864 21 NHO - P665AK 405 342 $0.9\%$ 48 WEIBULL, JOAQUIM (incl. fully owned companies) $0.3\%$ 155 000 $0.9\%$ 22 JACOBSEN, SVEIN (incl. fully owned companies) 1 400 000 49 G-EIENDOM AS $0.3\%$ 152 627 23 PERSHING LLC $0.9\%$ 391150 50 SKOGEN, JOHN INGE PANDURO 151639 $0.3\%$ 74,2% $0.9\%$ Sum 50 largest shareholders 32 942 265 24 BJØRNSTAD, DANIEL 385 185	No Name	No. of shares	%
					$0.7\%$
					$0.7\%$
					0.7%
					0.7%
					$0.6\%$
					$0.6\%$
Sum 1782 other shareholders 11 4 3 7 7 7 5 25 NISTAD GRUPPEN AS 338 300 $0.8 \, \%$					25.8%
Sum all 1832 shareholders 44 376 040 336 000 $0.8 \, \%$ 26 ANDERSEN, BØRGE					100,0%

Share statistics

2016 trade volume StrongPoint shares:

8,053 million shares – MNOK 102,435 Average share price kr 12,72

YTD 2017 (Oct 15th)trade volume StrongPoint shares: 13,409 million shares – MNOK 181 891 Average share price kr 13,57

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