StrongPoint

Quarterly Report • Apr 25, 2014

PSI Group ASA

1 st Quarter 2014 presentation, April 25th 2014 – 8:15am

Jørgen Waaler, CEO

Agenda

• New mission statement & New segments
• Highlights 1st quarter
• Group P/L, Group BS & Group CF
• Segment P/L & Segment market update
• Vensafe acquisition
• Q & A

PSI Group mission

"Driving Retailers' profitability by providing innovative integrated in store Technology Solutions - enabling storeowners to perform to their full potential"

New Segments

Highlights 1st quarter 2014

Operating revenues: MNOK 173,2 (MNOK 186,8).

A decrease of 7.3 per cent for the Group.

1.2 per cent decrease for PSI Technology to MNOK 89.8 (MNOK 90.9). CashGuard has increased the revenues with 42.4 per cent, while SQS Security has a decrease in turnover of 52 per cent.

34.1 per cent decrease for PSI Retail to MNOK 50.2 (MNOK 76.2). The decline is related to the roll out of electronic shelf labels to Rema 1000 which was completed in summer 2013.

132.7 per cent increase for PSI Labels to MNOK 41.9 (MNOK 18.0). The increase comes from both the acquisition of businesses and organic growth.

EBITDA: MNOK 10.0 (MNOK 13.1)

MNOK 0.4 reduced EBITDA for PSI Technology to MNOK 6.1 (MNOK 6.5).

MNOK 4.7 reduced EBITDA for PSI Retail to MNOK 4.6 (MNOK 9.3).

MNOK 2.7 increased EBITDA for PSI Labels to MNOK 2.6 (MNOK -0.1).

Cash flow from operational activities: MNOK -8.3 (MNOK 1.0)

high turnover in March

PSI Group ASA acquired 8 April 2014 100 per cent of Vensafe AS.

PSI Retail has signed a new ESL framework agreement grocery chain in Norway.

Sales last 12 quarters

Group financials – P&L statement

KNOK	Q1 2014:	Q1 2013	Chg. %	2013
Sales revenues	173 188	186213	$-7,0%$	716 506
Profit from AC, Service companies		563		2367
Cost of goods sold	82997	99920	$-16,9%$	378473
Payroll	56519	52 124	8,4%	196 806
Other operating expenses	23 6 34	21652	9,2%	89438
Total operating expenses	163 151	173 696	$-6,1%$	664718
EBITDA	10038	13080	$-23,3%$	54 155
Depreciation tangible assets	2914	2431	19,9%	10573
Depreciation intangible assets	4367	3269	33,6%	15 2 9 9
Write down intangible assets
Write down goodwill
EBIT	2757	7380	$-62,6%$	28 2 8 3
Interest	$-798$	$-1462$	45,4%	$-4314$
Other financial income	133	$-802$	116,5%	32 4 14
EBT 1	2091	5 1 1 5	$-59,1%$	56383

Group balance sheet - Total assets

• A/R up by MNOK 13,5 compared to Q4
• Inventory down by MNOK 9,2 compared to Q4

KNOK	31.03.2014	31.12.2013	31.03.2013
ASSETS
Intangible assets	106 674	113747	98995
Goodwill	108038	110 7 79	84354
Tangible assets	41 2 65	36 4 4 5	24519
Long term investments	481	481	12329
Deferred tax	17082	18084	29465
Non-current assets	273 539	279535	249 661
Financial investments	25.	26	23
Goods	76596	85787	76 121
Accounts receivable	111 688	98 15 6	117563
Prepaid expenses	12084	13899	9780
Other receivables	6880	8285	8808
Bank deposits	11 2 11	8554	4 1 1 0
Current assets	218 486	214706	216404
TOTAL ASSETS	492 025	494 241	466065

Group balance sheet – Total equity & liabilities

• A/P down MNOK 10,8
• Total net interest bearing debt MNOK 58,0 – up from 44,3 end Q4
• Disposable liquidity MNOK 47
• 660 253 own shares, representing 1.5 per cent

KNOK	31.03.2014	31.12.2013	31.03.2013
EQUITY AND LIABILITIES
Share capital	27513	27513	27513
Holding of own shares	$-409.$	$-409$	-365
Other equity	219418	223 694	174526
Total equity	246 522	250798	201674
Long term interest bearing liabilities	40072	43 603	41919
Other long term liabilities		9764	6 1 9 9
Total long term liabilities	40072	53 367	48 117
Short term interest bearing liabilities	29 1 29	9271	56213
Accounts payable	60437	71 163	65464
Taxes payable	$-229$	207	210
Other short term liabilities	116094	109 435	94386
Total short term liabilities	205 431	190076	216 274
TOTAL EQUITY AND LIABILITIES	492025	494 241	466065

Financials – Cash flow statement

NOK thousand	Q1 2014	Q1 2013	2013
Net cash flow from operation	$-8284$	986	66 159
Net cash flow from investment	$-5869$	-8	16887
Net cash flow from financing	17 020	-648	$-78416$
Net change in cash	2868	329	4 6 3 0
Effect of foreign exchange rate fluctuations on foreign!
currency deposits	$-211$	110	254
Cash and cash equivalents at the start of the period	8 5 5 4	3670	3670
Cash and cash equivalents at the end of the period	11 211:	4 1 1 0	8 5 5 4

• Working capital increased by NOK 15,1 million during 1st quarter

Operations – Business segments

		Q1 2014			01 2013			Year 2013
MNOK	Revenues	EBITDA	EBT	Revenues	EBITDA	EBT	Revenues	EBITDA	EBT
PSI Technology	89,8	6,1	2.2 1	90,9	6,5	$-1,0$	345,8	20,7	-3.1.
PSI Retail 19	50.2	4,6	4,1	76.2	9.3	8,1	272.9	34.1	32,1
PSI Label	41.9	2,6	$-0,1$	18.0	$-0.1$	$-1.1$	101.8	5.5	-2,6
Group	0.1	-3.1	-3,9	0.1	$-2.5$	$0.5 -$	5.1	-6,6	78,2
Eliminations	-8.9	$-0,2$	$-0,2$	1.5	$-0.1$	$-1.4$	-6,8	0.4	$-48.2$
Total	173,2	10,0	2,1	186,8	13.1	5,1	718,9	54,2	56,4

"Creating a world class point of sale experience by making cash payments competitive"

• Develops & markets the most reliable cash handling solutions for retailers.
• Continued significant levels of cash & cash transactions – even in Norway & Sweden
• Retailers ROI:

No overtime day-end counting Always correct change No stealing/pilfering Eliminate robberies Cash back & logistics

1 st quarter 2014 - highlights 1

• 42 % increase in turnover
• 43 % increase in EBITDA
• 190 system delivered internationally (217)
• 452 system delivered in home markets (330)

33	3	3

st quarter 2014 - key figures

	01
MNOK	2014	2013	2013
Product Sales	47,9	30,5	133,0
Service	21,8	18,4	78,9
Revenue	69,7	48,9	211,9
EBITDA	9,9	6,9	27,7
EBITDA-margin	14,2%	14,1%	13,1%
EBT	8,6		15,5

Key International Partners Key International Customers

"Driving store owner's profitability by increasing store employees efficiency "

• In Store Retail Technology Solutions
• System integrator of leading Retail technologies
• Complex integration knowledge
• Significant recurring revenues
• Presence in Norway and Sweden
• Dominating position in both countries
• Independent supplier to retail stores
• Country-wide service organizations

PSI Retail

1 st quarter 2014 - highlights 1

• Systems integration & service third party technologies
• CashGuard end user sales & service removed
• 34 % decrease in turnover
• 1 st quarter last year; full rollout ESL Pricer REMA1000
• New frame agreement ESL grocery Norway

st quarter 2014 - key figures

	01
MNOK	2014	2013	2013
Product Sales	35,0	53,8	196,1
Service	15,2	22,4	76,9
Revenue	50,2	76,2	272,9
EBITDA	4,6	9,3.	34,1
EBITDA-margin	9,2%	12,3%	12,5%
EBT	4,1	8.1	32,1

PSI Labels

1 st quarter 2014 - highlights 1

• 133 % increase in turnover
• Significantly improvement of EBITDA
• Continued integration in Sweden
• New press in Norway

st quarter 2014 - key figures

01
2014		2013
41,9		101,8
41,9		101,8
2,6	$-0,1$	5,5
6,2%	$-0.7%$	5,4%
$-0,1$	$-1, 1$	-2,6
		2013 18,0 18,0.

"Zero losses wherever money moves"

• Providing proprietary closed cash handling solutions to ATM & CIT market segments
• Market leader most secure, advanced and most valuable products
• In-house final assembly

1 st quarter 2014 - highlights 1

• 52 % decrease in turnover
• Quality issues solved and controlled client confidence improving
• New VP sales & marketing search initiated
• New image and marketing program initiated

st quarter 2014 - key figures

	01
MNOK	2014	2013	2013
Product Sales	11,6	34,4	101,6
Service	8,6	7,61	32,3
Revenue	20,2	42,0	133,9
EBITDA	-3,7	$-0,4$	-7,0
EBITDA-margin	$-18,5%$	$-1.0%$	$-5,2%$
FRT	$-6.4$	-3,5	$-18,5$

Key International Partners Key International Customers

Vensafe acquisition

• Challenging P/L history
• We believe in vending & shopping automation for several market segments
• All old share eliminated
• New share capital MNOK 1
• Net debt MNOK 15 – including NIBD 10
• Invested more than MNOK 100 in R&D, S&M
• Utilizing PSI Retail infrastructure locally
• Cooperation with CashGuard internationally
• R&D - and international S&M resources remains in Moss
• No walk in the park

Top 50 shareholders per March 31st 2014

lo.	Name	No. of shares	%	27 ANDERSEN, BØRGE	220 000	0,5 %
	PINNAS, ERIK (incl. fully owned companies) 1	4932276	11,1 %	28 ISAKSEN, NILS-OLAV	202 981	0.5%
	2 GLAAMENE INDUSTRIER AS	4 176 417	9,4 %	29 PRIMA HOLDING AS	200 000	0.5%
	3 STRØMSTANGEN AS	3933092	8,9%	30 BERNTSEN, HARALD	200 000	0,5%
	4 SKAGEN VEKST	3796612	8,6 %	31 PARTREDERIET MAST ANS	192750	0,4 %
	5 HOLMEN SPESIALFOND	2 300 000	5,2 %	32 SVENSKA HANDELSBANKEN AB	186 960	0,4 %
	6 AVANZA BANK AB	1926992	4.3 %	33 JOHANNESSEN, JAN TOMMY	181 000	0.4%
	7 NORDNET BANK AB	1650177	3,7 %	34 KARLSSON, HENRIK	176 158	0,4 %
	8 ZETTERBERG, GEORG (incl. fully owned companies)	1530404	3,4 %	35 HAGEN, JOSTEIN MAGNUS	165 000	0,4 %
	9 SKANDINAVISKA ENSKILDA BANKEN	1337909	3.0%	36 EVENSEN, TOR COLKA	155 000	0,3 %
	10 WAALER, JØRGEN (incl. fully owned companies) 1	1030000	2,3 %	37 GRANBERG, KARL TRYGVE	152 000	0,3%
	11 GRESSLIEN, ODD ROAR	920 000	2.1 %	38 WEIBULL, JOAQUIM (incl. fully owned companies)	152 000	0.3%
	12 V. EIENDOM AS	740 000	1.7%	39 BJØRNSTAD, DANIEL	151 800	0.3%
	13 MP PENSJON PK	699 806	1.6%	40 KAWA INVEST AS	151 000	0.3%
	14 PSI GROUP ASA	660 253	1.5 %	41 HEIMDAL, MORTEN	150 000	0,3%
	15 RING. JAN	645 322	1.5 %	42 GEHRKEN INVEST AS	140 627	0,3 %
	16 DELTA INVEST AS	462 019	1.0%	43 GAMMELSRØD, GUNNAR	140 277	0.3%
	17 JACOBSEN, SVEIN (incl. fully owned companies) 1	450 000	1.0%	44 POLAR RESERVOIR CONSULTANTS	138 500	0,3 %
	18 SAXO PRIVATBANK A/S	413 000	0.9%	45 CK HOLDING AS	123 604	0.3%
	19 SWEDBANK AB (PUBL)	385488	0.9%	46 SHB INVESTERING AS	120 000	0,3 %
	20 NISTAD GRUPPEN AS	338 300	0.8%	47 UGELSTAD, PER EINAR	113 524	0,3 %
	21 FRANKMO, ÅGE	320 383	0.7%	48 BAKKEN, VIDAR	100 079	0,2%
	22 KONGSRUD, RUNE JACOB	300 213	0,7%	49 OPERA FINANS AS	100 000	0,2%
	23 DYVI INVEST AS	285 013	0,6 %	50 RUUD, CHRISTIAN	100 000	0,2%
	24 FANA ELEKTRIKEREN AS	250 000	0.6%	Sum 50 largest shareholders	37 696 936	84.9%
	25 ROMULD, ARVE	250 000	0,6%	Sum 1 685 other shareholders	6 679 104	15,1 %
	26 JOHANSEN, STEIN	250 000	0,6 %	Sum all 1 735 shareholders	44 376 040	100 %

Up from 1711 shareholders per 4th quarter

Questions?