StrongPoint — Investor Presentation 2023

Feb 13, 2023

2025 Strategy Update Session

13 February 2023

Agenda & Speakers

• About StrongPoint
• 2025 strategy update
• Trends driving StrongPoint's 'Double Opportunity'
• Updates from selected core markets, partners and white space opportunities
• Financial overview

StrongPoint at a glance

Years in business	37	Revenue from grocery retailers	>80%	Offices Countries with offices Partner countries*
Countries with full sales, service and support	8	NOK Annual revenue Kr	1.4Bn
No. of Employees	500+	Listed on Oslo Stock Exchange since	2003
Our Engagement eNPS score	36	Retail technology unit growth in last 3 years	67%
Countries covered with partners	20	GRI reporting & member of UN Global Compact	2021

Future proofed 2025 strategy

StrongPoint before new strategy released StrongPoint in 2023

3 business areas, 16 offices incl. Russia & Malaysia

Mainly selling hardware with some service agreements

Organization with limited renewal or focus on competence enhancement

Serving leading Scandinavian & Baltic retailers only

Dependent on a few large customers in 2-3 countries

Grocery retail tech focused with 8 priority countries, all in Europe, reduced risk

Solution sales with high potential for additional recurring software income and professional services

Strong leadership team and industry & solutions experts recruited, structured training and competence-enhancing programs established

Gained tier-1 European and global grocery retailer clients

Reduced risk profile: wider customer base across 8 priority countries and significant & meaningful partner network

Creating a NOK 2.5 billion retail technology company

	2022	2025
Revenue	1.5 Bn* NOK	2.5 Bn NOK
EBITDA	5.8 %*	13-15 %

Mega Trends Driving Opportunities

StrongPoint's double opportunity: technology to solve grocery retailer megatrends

Our grocery retail solution suite

End-to-end provider from sales to support

Scandinavia embraces the race for efficiency-saving technologies

Exporting efficiency saving solutions…

…opportunities across Europe

With UK and Ireland as growth sweet spots

UK & Ireland facing challenges, some already overcome by Scandinavian retailers:

• Labour costs soaring
• Labour getting scarcer
• Inflation means frequent price changes

Driving opportunities:

• Electronic Shelf Labels
• Vensafe
• Order Picking
• Click & Collect Grocery Lockers
• Automated Fulfilment (AutoStore)

Scandinavians excel at developing and adopting efficiency-saving technologies

Established 1972 Established 1996

Cash: "the reports of my death are greatly exaggerated"

Source: ECB, Sveriges Riksbank, Norges Bank, Bank of England

Next generation CashGuard solution

End-to-end cash automation

from customer to cash-in-transit pickup with zero staff intervention at checkout or back office

CashGuard integrated into cashier counter

Notes are automatically counted, checked, flattened and ready for cash-in-transit pickup

White space opportunities

Country	Market size (BnNOK)*	StrongPoint grocery chain coverage	StrongPoint solution penetration	Examples of opportunities
Norway	270	100%		Vensafe, Self-checkout, E Commerce
Sweden	300	100%		E-Commerce, Electronic Shelf Labels, Self-Checkout
Baltics	130	100%		Vensafe, Self-Checkout, Electronic Shelf Labels
Spain	1,230			Cash Management, E-Commerce, Self-Checkout
UK& Ireland	2,650			Electronic Shelf Labels, E-Commerce, Self-Checkout

*Source: IGD

Pricer and AutoStore partnership update

Deeper and wider partnership with Pricer

• Partner since 1999, over 20 years partnership
• Installed over 15 million Pricer Electronic Shelf Labels in over 2,500 stores
• Deepened & widened relationship with new strategic partnership in 2022 in UK, Ireland & Spain

Expanded AutoStore partnership to UK & Ireland

Made AutoStore distributor for UK & Ireland in 2022, following on from Nordics & Baltics in 2021

Leveraging new and existing team in UK for sales opportunities to grocery retailers

Example of 2025 strategy in action: product market fit

World's first AutoStore for frozen products

• StrongPoint was chosen to design and install the world's first
• Purpose-built for groceries
• 30-40% energy consumption reduction

Food management is so different to any other retail segment which is why we decided to work with StrongPoint.

Jan Frode Johansen DLVRY Co-Founder and CEO

Financial Overview

Creating a NOK 2.5 billion retail technology company

Continued strong growth

*Proforma

EBITDA margin – current and path ahead

2022 EBITDA Margin

2025 EBITDA Margin

Four areas for gross margin improvement

All ranges are on Gross Profit but all contributing positive to increased EBITDA margins *Roll-out projects of proprietary solutions

Developing a strong base of recurring revenue

Recurring revenue

• Service
• Support
• Rental
• Software Licences

Wide portfolio of solutions to capture variety of future market conditions

*Proforma

Summary of financial highlights

Ambition to gradually increase dividends

* The Board will propose a dividend of NOK 0.90 per share at the Annual General Meeting in April 2023.

M&A will contribute to long-term growth

Geography expansion (to markets with good product/market fit)

• UK
• Denmark
• Finland
• US
• …

Strengthening of core markets

• UK
• Spain
• Norway
• Sweden
• Baltics

Technology additions

• AutoStore support infrastructure
• In-store & e-commerce
• Future-proofing technologies

The StrongPoint sandwich

Sauce Tomorrow's solutions	Robotics, & Staffless shops
Toppings E-commerce solutions	Order Picking, Last Mile, Automated MFC
Bread & Butter In-store solutions	Self-checkout, Pay & Collect, Cash Management

Summary: creating a NOK 2.5 billion retail technology company

Operational leverage

• Leverage full sales, service and support structure in markets where demand continues to be strong, especially UK & Spain

Exporting efficiency saving technologies

• Grocery retailers need efficiency saving instore and online technologies to drive long-term profitability the StrongPoint 'Double Opportunity'

Product innovation and M&A

• Delivered on M&A commitments and investing in solutions for future customer value

Thank you