StrongPoint — Investor Presentation 2017

Feb 16, 2017

Presentation of 4 th quarter 2016 & full year 2016 February 16th - 8:15 am

StrongPoint Mission

Driving retailers' productivity by providing innovative integrated technology solutions

Highlights 4th quarter

• Group operating revenues MNOK 307,1 (MNOK 309,6)
• Group EBITDA MNOK 30,9 (MNOK 20,0)
• Cash flow from operations MNOK 82,8 (MNOK 54,2)

Highlights full year 2016

• Group operating revenues 2016 MNOK 1 120,2 (MNOK 1 146,0)
• Group EBITDA 2016 MNOK 111,7 (MNOK 90,5)
• Cash flow from operations 2016 MNOK 163,3 (MNOK 54,3)
• Dividend based on 2016 accounts NOK 1,50 (NOK 0,45)
• Acquisition of PyD Seguridad S.L StrongPoint Spain
• All-time-high number of CashGuard systems delivered in 2016

Revenues per quarter 12 months rolling

EBITDA per quarter 12 months rolling

4 th quarter & 2016 revenues by product category

Revenue	Q 4		Year
MNOK	2016	2015	2016	2015
Proprietary Technologies	166 3 ,	121 6 ,	579 6 ,	481 5 ,
3rd Party Technologies	105 2 ,	153 6 ,	376 5 ,	504 5 ,
Labels	40 1 ,	47 2 ,	179 0 ,	185 5 ,
ASA Eliminations /	4 5 - ,	12 8 - ,	15 0 - ,	25 5 - ,
Total	307 1 ,	309 6 ,	1 120 2 ,	1 146 0 ,

4 th quarter & 2016 EBITDA by product category

EBITDA	Q 4		Year
MNOK	2016	2015	2016	2015
Proprietary Technologies	25 2 ,	0 3 ,	80 5 ,	46 6 ,
3rd Party Technologies	8 3 ,	18 0 ,	30 9 ,	39 4 ,
Labels	2 4 ,	6 2 ,	18 2 ,	22 7 ,
Eliminations / ASA	5 0 - ,	4 6 - ,	17 9 - ,	18 1 - ,
Total	30 9 ,	20 0 ,	111 7 ,	90 5 ,

2016 revenues by geography

2013: 102 2014: 180 2015: 269 2016: 265	MNOK 1 120		MNOK 1 146

2016 revenue categories

2013: 188 2014: 236 2015: 292 2016: 307	MNOK 1 120		MNOK 1 146

Group balance sheet - Total assets – 31.12.2016

• Inventory up by MNOK 8.6 from end Q3
• A/R down by MNOK 37.6 compared to Q3

KNOK	31.12.2016	31.12.2015	30.09.2016
ASSETS
Intangible assets	55903	75469	55 138
Goodwill	113 253	153 410	116 199
Tangible assets	85 4 40	55069	53 666
Long term investments	1625	989	1546
Other long term receivables
Deferred tax	31 4 4 5	28 117	19563
Non-current assets	287 665	313054	246 111
Goods	101 200	125042	92582
Accounts receivable	161 202	185 237	198841
Prepaid expenses	10799	12092	11479
Other receivables	31367	17317	11 286
Bank deposits	67090	22 610	11781
Current assets	371 658	362 297	325 968
TOTAL ASSETS	659 323	675 351	572079

Group balance sheet – Total equity & liabilities

• No net interest bearing debt at end 2016
• Net interest bearing assets MNOK 5.4
• Disposable liquidity MNOK 127.1
• 104 544 own shares, representing 0.2 per cent
• A/P MNOK 102.5 – up by 5.2 from end Q3

KNOK	31.12.2016	31.12.2015	30.09.2016
EQUITY AND LIABILITIES
Share capital	27513	27513	27513
Holding of own shares	-65	-65	-65
Other equity	293 533	269799	262862
Total equity	320 981	297 247	290 310
Long term interest bearing liabilities	32982	37 186	22 122
Other long term liabilities	5093
Total long term liabilities	38 075	37 186	22 122
Short term interest bearing liabilities	28706	54 0 25	22 160
Accounts payable	(102, 480)	95978	97 268
Taxes payable	399	233
Other short term liabilities	168 682	190 682	140 219
Total short term liabilities	300 267	340918	259 647
TOTAL FOUITY AND LIABILITIES	659 323	675351	572079

Net interest bearing debt end of quarters

StrongPoint

2016 significant contributuons

LOOMIS Managing cash in society.

New banknotes in Norway

CashGuard

• 5900 upgrades
• 800 new sales
• 1500 re-locations
• Installed base reduced by 600 systems

Canada's first ski-thru ATM opens on Whistler Blackcomb

• Waiting for new tender

• Third party takes care of freight and customs

• 5 year rental CashGuard as a service

• Top 15 grocery chain in Spain
• 170 stores estimated a total of 700 systems
• 524 systems installed as of December 31st
• Key player & service partner in Spain, PyD, acquired

StrongPoint

First National Bank South Africa - first 150 systems shipped

how can we help you?

change the way you handle cash.

Dear Valued Customer,

Transform your transactions at the till with FNB SmartTILL". FNB SmartTILLTM is an electronic till system that is able to accept and dispense notes and coins. The SmartTILL™ removes the manual element involved in traditional till systems, thus speeding up the process and removing the risk of cash visibility.

The FNB SmartTILL™

The FNB SmartTILL™ provides increased security.

Pharmacies

• Norway
• Sweden
• Lithuania
• Latvia
• Estonia
• Russia
• France
• Spain
• Germany
• Belgium
• Malaysia
• Singapore

Own [legal] representation Partner representation

• Denmark
• Portugal
• Italy
• Australia
• Austria
• Kuwait
• South Africa
• UK
• Ireland
• Slovenia
• Croatia
• Australia

News from labels

ONE label factory in Sweden

Moved to new premises New HP digital replaces three old flexo presses

South East Asia update

Progress in SEA

Parkson department store runs well - Kuala Lumpur,

Progress in SEA

Second store runs well - Farm to Table, Singapore

Progress in SEA - collaborations

Marketing StrongPoint Vision

EuroShop 2017

1. • 9^th March - Düsseldorf

StrongPoint reveals new solutions that will transform the way retailers do business

Experience the future of retail at EuroShop, booth No. 6134

New Proprietary Retail Solutions

Self Checkout (NEW) Click & Collect (NEW)

Single slot Cash Mgt. Retail Suite (NEW) (NEW)

StrongPoint Vision

Becoming a recognised global provider of retail technology solutions

Growth strategy going forward

• Continue organic market investments in APAC & EMEA consolidate offerings and organizations. "Must" win efforts essential.
• Continue significant R&D investments (all OPEX).
• StrongPoint growth value based M&A Geography/Technology
• Build StrongPoint image: e-Commerce Retail analytics Checkout efficiency

StrongPoint Top 50 shareholders per January 31^st 2017

	No. of
No Name	shares	%
1 PINNĂS, ERIK ESTATE (incl. fully owned companies)	4 898 635	11,0%
2 STRØMSTANGEN AS	3 933 092	8.9%
3 SKAGEN VEKST	3 3 17 4 67 7.5 %
4 HOLMEN SPESIALFOND	2 365 000	5.3%
5 AVANZA BANK AB	1 953 294	4.4%
6 NORDNET BANK AB	1572884	3,5%
7 ZETTERBERG, GEORG (incl. fully owned companies)	1565000	3.5%
8 WAALER, JØRGEN (incl. fully owned companies) 1	1 060 000	2.4 %
9 V. EIENDOM AS	980 887	2.2%
10 GLAAMENE INDUSTRIER AS	873 549	2,0 %
11 GRESSLIEN, ODD ROAR	870 000	2.0%
12 RING, JAN	831822	1.9%
13 MP PENSJON PK	615 265	1.4 %
14 HSBC TTEE MARLB EUROPEAN TRUST	615 000	1.4%
15 SKANDINAVISKA ENSKILDA BANKEN AB	557930	1.3%
16 BUDVILAITIS, EVALDAS (incl. controlled companies) 1	555 709	1,3%
17 ROMULD, ARVE	550 000	1.2%
18 SVENSKA HANDELSBANKEN AB	461 925	1.0%
19 JOHANSEN, STEIN	450 000	1,0 %
20 NORDEA BANK AB	427 490	1,0%
21 ALCHEMY TRADING AS	420 000	0.9%
22 JACOBSEN, SVEIN (incl. fully owned companies) 1	400 000	0.9%
23 VERDADERO AS	399 999	0.9%
24 CARNEGIE INVESTMENT BANK AB	379 173	0.9%
25 BJØRNSTAD, DANIEL	356 345	0.8%
26 NISTAD GRUPPEN AS	338 300	0.8%

	27 FARSTAD, PETTER HAAVARD	338 000	0.8%
	28 ANDERSEN, BØRGE	334 350	0,8%
	29 JOHANNESSEN, JAN TOMMY	311 700	0.7%
	30 EVENSEN, TOR COLKA	280 000	0.6%
	31 KONGSRUD, RUNE JACOB	270 000	0.6%
	32 FRANKMO, ÅGE	266 494	0,6%
	33 UGELSTAD, PER EINAR	255 000	0.6%
	34 CK HOLDING AS	223 604	0.5%
	35 FANA ELEKTRIKEREN AS	220 000	0.5%
	36 MIDDELBOE AS	217 898	0.5%
37	NORDNET LIVSFORSIKRING AS	204 660	0.5%
	38 GAMMELSRØD, GUNNAR	200 325	0.5%
	39 BERNTSEN, HARALD	200 000	0.5%
	40 HEIMDAL, MORTEN	200 000	0.5%
	41 SWEDBANK AB	198 261	0.4 %
	42 GRANBERG, KARL TRYGVE	185 000	0.4%
	43 NEVROKIRO INVEST AS	180 000	0.4%
	44 NÆSS, BERNHARD	178 500	0,4%
	45 CITIBANK, N.A.	170 370	0.4%
	46 KAWA INVEST AS	168 000	0,4%
	47 MSIP EQUITY	160 359	0.4%
	48 WEIBULL, JOAQUIM (incl. fully owned companies)	152 000	0.3%
	49 G-EIENDOM AS	140 627	0.3%
	50 RUUD, CHRISTIAN	140 000	0.3%
	Sum 50 largest shareholders	35 943 914	81,0 %
	Sum 1 452 other shareholders	8 432 126	19.0 %
	Sum all 1 502 shareholders	44 376 040	100,0%

+ 120 since September 30th

Questions?