StrongPoint — Investor Presentation 2018

Feb 15, 2018

9:30-13:00

Presentation 4 th quarter 2017 Jørgen Waaler, CEO February 15th 2018

Agenda

• Highlights 4th quarter 2017
• Segment financials and status
• StrongPoint market positions and outlook
• StrongPoint Cub Systems
• Q & A
• Succession
• Q & A

Mission

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

Highlights 4th quarter

• Group operating revenues MNOK 259.1 (MNOK 307.1)
• Group EBITDA MNOK 20.9 (MNOK 30.9)
• Cash flow from operations MNOK 20.7 (MNOK 82.8)
• Frame agreement Utkonos
• Acquisition of Cub Business Systems AB
• Proposed NOK 0,50 dividend per share

Revenues per quarter 12 months rolling

EBITDA per quarter 12 months rolling

4 th quarter 2017 revenues by solutions

Aftermarket revenue

Group BS - Total assets – 31.12.2017

• Inventory up by MNOK 17.8 from end Q3
• A/R down by MNOK 2.3 compared to Q3

KNOK	31.12.2017	31.12.2016	30.09.2017
ASSETS
Intangible assets	81796	55903	47050
Goodwill	139 213	113 253	116088
Tangible assets	81341	85440	82 298
Long term investments	1 1 1 0	1625	1412
Deferred tax	20930	31 4 4 5	29763
Non-current assets	324 391	287 665	276611
Goods	131455	101 200	113648
Accounts receivable	160 027	161 202	162 355
Prepaid expenses	14 06 1	10799	11 1 4 9
Other receivables	24 172	31367	23 1 1 1
Bank deposits	41503	67090	24 3 29
Current assets	371 218	371 658	334 592
TOTAL ASSETS	695 609	659 323	611 203

Group BS – Total equity & liabilities 31.12.2017

• Net interest bearing debt MNOK 51.4 – down 17.5 from end Q3
• Disposable liquidity MNOK 54.3
• 104 544 own shares, representing 0.2 per cent
• A/P MNOK 93.1 – up by 11.1 from end Q3

KNOK	31.12.2017	31.12.2016	30.09.2017
EQUITY AND LIABILITIES
Share capital	27513	27513	27513
Holding of own shares	$-65$	-65	-65
Other equity	253564	293533	237 650
Total equity	281013	320 981	265 098
	24 623	32982	26958
Long term interest bearing liabilities
Other long term liabilities	27422	5093	3668
Total long term liabilities	52046	38075	30 626
Short term interest bearing liabilities	68 2 2 9	28706	66 236
Accounts payable	93070	102 480	81972
Taxes payable	1852	399
Other short term liabilities	199 399	168 682	167 271
Total short term liabilities	362 551	300 267	315479
TOTAL EQUITY AND LIABILITIES	695 609	659 323	611 203

Vision

Becoming a recognized global provider of retail technology solutions

Where are we?

Euro CIS participation

Outlook International Markets

International Cash handling market growing, and volume matching previous home market levels!

No of CashGuards	2014	2015	2016	2017
Home Markets	1376	1345	1111	351
International Markets	784	828	1841	1317
Total	2160	2172	2951	1667
International Ratio	$36\%$	$38\%$	$62 \%$	79 %

• Coop Estonia signed with Cub e-commerce solution and we expect to contract 6 Click & Collect systems shortly.
• Expect to contract MNOK 25 with a new speciality chain in Baltics POS-SW & SLA over two years.

APAC presence – building global recognition

SINGAPORE

• Farm Fresh Food: We have three stores installed with CashGuard and Pricer. Two more stores will be installed during Q1.
• Cathays Cinemas: Two cinemas out of possible 29 installed with CashGuard as a self-payment solution.

MALAYSIA

• Dr Group: Malaysia's largest duty-free chain. During Q1 we will install CashGuard in six stores out of possible 30.
• Dana Economy convenience: We have two systems installed in Borneo. Planning for 5-10 additional systems during H1.
• Llao Llao: We have five stores installed with CashGuard out of possible 25 stores.
• Giant supermarket: Successful Vensafe pilot. Possible roll-out in 5 stores.

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

CUB facts

CUB customer references

CubLink used in 6000+ stores

Top 50 shareholders per December 31st

	No Name	No. of shares	%
	1 STRØMSTANGEN AS	3 933 092	8.9%
	2 HOLMEN SPESIALFOND	2 400 000	5.4 %
	3 HSBC TTEE MARLB EUROPEAN TRUST	1976000	4.5%
	4 AVANZA BANK AB	1 963 404	4.4 %
	5 PROBITAS HOLDING AS	1788 276	4.0%
	6 ZETTERBERG, GEORG (incl. fully owned companies)	1610000	3.6%
7	NORDNET LIVSFORSIKRING AS	1 593 773	3.6%
	8 NORDNET BANK AB	1 526 111	3.4 %
	9 V. EIENDOM HOLDING AS	1 007 134	2,3%
	10 WAALER, JØRGEN (incl. fully owned companies) 1	1 000 000	2.3%
	11 GLAAMENE INDUSTRIER AS	873 549	2.0%
	12 RING, JAN	869 372	2,0 %
	13 GRESSLIEN, ODD ROAR	830 000	1,9%
	14 MP PENSJON PK	777 402	1.8%
	15 NORDEA BANK AB	556 070	1,3%
	16 SKANDINAVISKA ENSKILDA BANKEN AB	528 803	1,2%
17	JOHANSEN, STEIN	450 000	1.0%
	18 BUDVILAITIS, EVALDAS (incl. fully owned companies) 1	408 561	0.9%
	19 SVENSKA HANDELSBANKEN AB	406 485	0.9%
	20 NHO - P665AK	405 342	0.9%
21.	JACOBSEN, SVEIN (incl. fully owned companies) 1	400 000	0.9%
	22 VERDADERO AS	400 000	0.9%
	23 PERSHING LLC	391 150	0.9 %
	24 DZ PRIVATBANK S.A.	378 219	0.9%
	25 BJØRNSTAD, DANIEL	363 085	0.8%
	26 ANDERSEN, BØRGE	330 000	0.7%

27 FRANKMO, AGE	318 034	0.7 %
28 NISTAD GRUPPEN HOLDING AS	313 300	0.7 %
29 JOHANNESSEN, JAN TOMMY	311 000	0,7 %
30 EVENSEN, TOR COLKA	310 000	0.7%
31 UGELSTAD, PER EINAR	267 365	0.6%
32 FARSTAD, PETTER HAAVARD	263 714	0.6%
33 PINNAS, DANIEL WEDUL	262 116	0,6 %
34 KONGSRUD, RUNE JACOB	252 092	0.6%
35 HELGØ INVESTERING AS	231948	0,5 %
36 MORGAN STANLEY AND CO INTL PLC	228 782	0,5 %
37 ROMULD, ARVE	225 000	0,5 %
38 CK HOLDING AS	223 604	0,5 %
39 HEIMDAL, MORTEN	221 000	0,5 %
40 NÆSS, BERNHARD	218 500	0.5 %
41 GAMMELSRØD, GUNNAR	210 255	0.5%
42 SWEDBANK AB	206 253	0.5 %
43 BNP PARIBAS SECURITIES SERVICES	200 450	0.5 %
44 BERNTSEN, HARALD	200 000	0.5%
45 FANA ELEKTRIKEREN AS	200 000	0,5 %
46 MIDDELBOE AS	200 000	0.5 %
47 GRANBERG, KARL TRYGVE	194 000	0.4 %
48 CITIBANK, N.A.	185 864	0.4 %
49 SKOGEN, JOHN INGE PANDURO	177 119	0.4 %
50 G-EIENDOM AS	162 627	0.4 %
Sum 50 largest shareholders	32 748 851	73.8 %
Sum 1 829 other shareholders	11 627 189	26.2 %
Sum all 1 879 shareholders	44 376 040	100,0%

Questions

StrongPoint succession planning