StrongPoint — Investor Presentation 2022

Feb 15, 2022

Retail technology in every shopping experience for a smarter and better life

Strategy Update Session 15 February 2022

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Today's presenters

Jacob Tveraabak Chris Mackie Hilde Horn Gilen

Chief Financial Officer

Chief Executive Officer SVP E-commerce & UK Managing Director

About StrongPoint

StrongPoint is a grocery retail technology company

Focus on grocery retail technology

E-commerce logistics and in-store solutions

Efficiency is our obsession as every second counts in high volume, low margin industry

Grocery retailers are pouring billions into technology

The StrongPoint double opportunity: providing grocery retailers in-store and e-commerce technology

E-COMMERCE

Retailers' needs

1. In-store: Pressure on brick & mortar retailers' margin

Opportunity for StrongPoint

Technology solutions in-store to improve retailers' productivity, provide safe shopping and hence uphold margins

2. E-commerce: Pressure to develop online presence

World-class e-commerce solutions for picking and delivery

About StrongPoint

35+

years experience

Oldest and largest retail technology company in the Nordics – founded in 1985

Over 400 full-time employees globally including support staff in multiple countries

countries 20+

Provide retail technology solutions to grocery companies for over 20 years

A strong portfolio of in-store and e-grocery solutions*

In-store solutions E-commerce solutions

In-store and e-grocery solutions

Task & Workforce Management

Vensafe

Cash Management

In-store and e-grocery solutions

Trusted by leading grocery retailers

National media covering how our solutions help leading grocery retailer profit from e-commerce

Translation: "How online groceries became profitable"

"The automated lockers has been a prerequisite for Willys to achieve profitability within click and collect. Home deliveries are still not profitable for Willys and [we] see automation as an important tool to reach profitability there as well."

Thomas Evertsson, CEO Willys AB

Dagens Industri, January 10, 2022

Solid growth for both in-store and e-commerce solutions

Developing a strong base of recurring revenue

Recurring SaaS revenue from e-commerce: a key indicator

Revenue MNOK

Recurring SaaS revenue

• Only from e-commerce
• 100% customer retention on Order Picking

Strategy

StrongPoint's financial ambitions for growth

NOK 2.5 bn in 2025

EBITDA 13-15%

T-Shaped Strategy

• E-Commerce Order Fulfillment platform
• Order Picking
• Micro fulfillment centers
• Last Mile Solutions
• Self Checkout
• Cash Management
• Halodi Humanoid Robot

Go deep in core markets with solutions that cover in-store and e-commerce solutions

• Norway
• Sweden
• Baltics
• Spain

Now includes AutoStore grocery micro-fulfilment

Investing for the future

2025 revenue ambition: a pure retail technology company

Revenue MNOK

Delivering on our strategy, building the retail technology growth platform

About Air Link Systems Ltd (ALS) – our first acquisition*

Worked with leading grocery retailers in UK and abroad

• Sainsbury's

Priorities to achieve 2025 revenue ambition

Market Trends

The three dominating grocery retail e-commerce trends

Focus on operational efficiency & profitability

Quick commerce continues to grow

Sustainability in the last mile

Trend #1 – A focus on operational efficiency and profitability

	Challenge / Opportunity	Recommended Strategies	StrongPoint's Value
Retailer	• Grocery e-commerce challenges the profitability of traditional retailers' • Industry faces many labour, cost and price pressures	• Optimise and simplify • Review processes • Automate • Mitigate costs • Incentivise consumer behaviour	Order Picking - SaaS MFC (AutoStore Micro-Fulfillment)
Quick Commerce	• High customer acquisition costs and high capex • Inefficient and costly processes	• Mitigate costs • Simplify onboarding • MFC process and layout • Automate • Innovate and incentivise consumer behaviour	Grocery Lockers - LaaS Workforce management Q Com Order Picking - SaaS

Consumers demand faster delivery when they "need it now"

Trend #2 – Quick Commerce continues to grow

	Challenge / Opportunity	Recommended Strategies	StrongPoint's Value
Retailer	• Access new customers and the convenience market • As it becomes more widespread shopper missions are diversifying • Protect your high margin sales	• Playbook • Market Analysis • Partner • Launch • Invest / Acquire • Constant re-evaluation	Order Picking - SaaS MFC (AutoStore Micro-Fulfillment)
Quick Commerce	• Highly competitive • A need to rapidly and cost effectively expand and gain market share • Onboarding challenges • A need to differentiate	• Establish partnerships for the building blocks required to: • accelerate your offer • reduce onboarding time and cost • Enable your riders	Grocery Lockers - LaaS Q Com Order Picking - SaaS

Trend #3 – Sustainability in the last mile

Challenge / Opportunity	Recommended Strategies	StrongPoint's Value
• Grocery retailers are under pressure to reduce their environmental impact • A need to align with more environmentally conscious consumers	• Localise • Incentivise • Delivery Methods • Share • Test	MFC (AutoStore Micro-Fulfillment) Grocery StrongPoint Lockers - Route LaaS manager Mobile lockers

Online grocery retail is growing fast

Online grocery sales estimates in target markets¹ NOK trillion

Future of grocery e-commerce – the only way is up

Online penetration in selected US retail segments Percent

Key fulfilment/delivery methods in e-grocery

Addressable market for key solutions

Number of million online orders per year*

Source: IGD, StrongPoint analysis

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*Norway, Sweden, Baltics, Spain, Denmark, Finland, Italy, UK, Benelux, France, Germany, US **Instore and darkstore picking

StrongPoint Solutions

Built and deployed the world's most efficient picking solution for in-store and dark store manual picking

Customers average 240 items p/hr in-store picking with many achieving far higher rates

99.99% accuracy – on par with automated fulfilment solutions

Can be used in stores, in dark stores, in combination with micro-fulfilment or for quick-commerce orders

Extensive installed base of temperature-controlled grocery lockers

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App-based pickup and loading for customers and staff

Mobile temperature-controlled grocery lockers can be placed almost anywhere

Age control can be done manually or with AI-powered age-verification technology*

Rapidly growing footprint of our Picking Solution and Click & Collect lockers

A trusted partner to leading robotics technology providers

AutoStore's first and only grocery retail-specialised partner

StrongPoint has developed a unique grocery micro-fulflillment solution with AutoStore's solution

Partner with Germany-based Hörmann Logistik to provide grocery microfulfillment in Nordics, Baltics and DACH region

"AutoStore is delighted to partner with StrongPoint, who so clearly sees the potential in micro fulfillment. Together, we are well positioned to deliver on the ongoing transformative phase"

Karl Johan Lier, CEO of AutoStore*

Customers segments for e-commerce technology

Potentially applicable

StrongPoint Self-Checkout delivering outstanding customer experiences with minimal staff interventions

AI-powered item recognition creates unbeatable speed of purchasing*

Automated age-control with AI-powered age-verification technology**

Fewer staff interventions without sacrificing security and accuracy powered by proprietary self-learning system

*Image-recognition technology provided by Edgify 40 **Age-verification technology provided by Yoti

Investing in in-store grocery robot of the future

Entered into a strategic partnership with Halodi Robotics to design & distribute grocery robot

Can take over repetitive processes and free human labour to focus on more challenging tasks

Can be used for stock replenishment in-store, especially useful at night time

StrongPoint's CashGuard still in high demand even in countries with little cash in use

Although Norway is almost cash-free, still high demand for StrongPoint's CashGuard

Demand even greater in southern European countries and growing post-pandemic

Mergers & Acquisitions

StrongPoint is continuously evaluating emerging M&A opportunities

Building momentum in M&A activities

Made first acquisition* of Air Link after valuated ~60 companies

Divested Labels and Cash Security business to focus only on retail technology

Monitoring and explore grocery retail technology market trends

Financial impact of ALS acquisition* on StrongPoint

Will add NOK 240 million revenue with 10% EBITDA based on 2021 performance

Fair enterprise value for a service and installation company

Purchase price to be paid in a combination of cash and shares in StrongPoint

Exclusivity period until 30.04.2022. StrongPoint expects to complete Due Diligence and final purchase agreement within this date

Dividend

Ambition to gradually increase dividends

Outlook & Priorities

Creating a NOK 2.5 billion retail technology company

50 *Revenue and EBITDA margin from continued operations excluding positive effects from compensation from relocation of Labels production in Norway

Retail technology in every shopping experience for a smarter and better life