StrongPoint

Quarterly Report • Feb 25, 2014

PSI Group ASA

4 th Quarter & full year 2013 presentation, February 25th 2014 – 8:15am

Jørgen Waaler, CEO

PSI Group vision

The leading global provider of closed and secure cash handling solutions where ever money moves & the leading local system integrator of retail technology in selected markets.

Agenda

• Highlights 4th quarter & full year 2013
• Group P/L, Group BS & Group CF
• Segment P/L & Segment market update
• Q & A

Highlights 4th quarter & full year 2013

• Q4: Cash flow from operations MNOK 34,9 compared to MNOK 25,8 last year
• Q4: Operating revenues of MNOK 189 compared to MNOK 188 last year
• Q4: EBITDA was MNOK 15,5 compared to MNOK 14,9 last year
• 2013: Cash flow from operating activities was MNOK 66.2 compared to MNOK 25.9 last year
• 2013: Operating revenues of MNOK 719 compared to MNOK 596 last year
• 2013: EBITDA was MNOK 54,2 compared to MNOK 40,2 last year
• 2013: EBT was MNOK 56,4 compared to MNOK 8,7 last year
• The InStore IT shares transactions completed in the 3rd quarter and MNOK 48,9 received in cash.
• PSI Group ASA has acquired Sydetikett AB for MSEK 40 MSEK 30 paid
• Board of directors propose dividend of NOK 0,30 per share 5.5 per cent direct return on investment

Sales last quarters and last years

Group financials – P&L statement

KNOK	Q4 2013	Q4 2012	Chg. %	Year 2013	Year 2012	Chg. %
Sales revenues	188546	186595	1,0%	716506	592 448	20,9%
Profit from AC, Service companies		1344		2367	3471	$-31,8%$
Cost of goods sold	92940	102 687	$-9,5%$	378473	298 422	26,8%
Payroll	55 2 31	47 284	16,8%	196 806	174 195	13,0%
Other operating expenses	24 8 69	23062	7,8%	89438	83 131	7,6%
Total operating expenses	173 040	173033	0,0%	664718	555749	19,6%
EBITDA	15506	14906	4.0%	54 155	40 170	34,8%
Depreciation tangible assets	3310	2499	32,5%	10573	8514	24,2%
Depreciation intangible assets	4899	3067	59,7%	15 2 9 9	14 2 3 5	7,5%
Write down intangible assets
Write down goodwill
EBIT	7296	9341	$-21.9%$	28 2 8 3	17421	62,4%
Interest	$-893$	$-1119$	20,1%	$-4314$	-4767	9,5%
Other financial income	674	$-324$		32 4 1 4	$-3969$
EBT 1	7077	7898	$-10,4%$	56383	8685

Revenue breakdown year 2013

New products sales versus service revenues

Group balance sheet - Total assets

• A/R down by MNOK 22,7 compared to Q3

• Inventory up by MNOK 4,5 compared to Q3

KNOK	31.12.2013.	31.12.2012	30.09.2013
ASSETS
Intangible assets	113747	97564	116076
Goodwill	110779	80584	110607
Tangible assets	36445	25381	37430
Long term investments	481.	12590	481
Deferred tax	18084	29794	16971
Non-current assets	279535	245913	281564
Financial investments	26.	22	25
Goods	85787	83419	81255
Accounts receivable	98 156	94325	120864
Prepaid expenses	13899	10078	10488
Other receivables	8285	10906	12577
Bank deposits	8554	3670	9997
Current assets	214 706	202.421	235 206
TOTAL ASSETS	494 241	448335	516769

Group balance sheet – Total equity & liabilities

• Total net interest bearing debt MNOK 44,3 – down from 73,6 end Q3
• Disposable liquidity MNOK 65
• 660 253 own shares, representing 1.5 per cent
• Involuntary buy back of 71 141 shares in Q3

KNOK	31.12.2013	31.12.2012	30.09.2013
EQUITY AND LIABILITIES
Share capital	27513	27513	27513
Holding of own shares	$-409.$	$-416$	$-409$
Other equity	223 694	161 262	214 114
Total equity	250798	188359	241218
Long term interest bearing liabilities	43 603	42943	45875
Other long term liabilities	9764	5909	15 196
Total long term liabilities	53 367	48852	61071
Short term interest bearing liabilities	9271	52 206	37678
Accounts payable	71 163	70826	83 641
Taxes payable	207	643	618
Dividend		2
Other short term liabilities	109 435	87448	92544
Total short term liabilities	190076	211 124	214481
TOTAL EQUITY AND LIABILITIES	494 241	448 335	516769

Financials – Cash flow statement

NOK thousand	Q4 2013		Q4 2012 Year 2013 Year 2012
Net cash flow from operation	34 907	25 756	66 159	25 867
Net cash flow from investment	$-1538$	$-3364$	16887	$-4346$
Net cash flow from financing	$-34843$	$-21747$	-78 416	$-22005$
Net change in cash	$-1473$	645	4630	$-485$
Effect of foreign exchange rate fluctuations on
foreign currency deposits	30	$-54$	254	$-64$
Cash and cash equivalents at the start of the period	9997	3079	3670	4 2 1 9
Cash and cash equivalents at the end of the period	8554	3670	8554	3670

• Working capital decreased by NOK 5,7 million during 4th quarter
• Working Capital increased with NOK 5,9 million since year start

Operations – Business units

PSI Group business model

Total workforce: 314

CashGuard

• 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

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

CashGuard

4 th quarter & full year 2013 & highlights 4

• Q4: 72 % increase in turnover
• 2013: 41% increase in turnover
• Q4: 208 CashGuard systems delivered outside Scandinavia (47)
• 2013: 785 all time high international sales
• Q4: 458 system delivered in Norway & Sweden (336) 2013: 1 265

th quarter & full year 2013 Key Figures

	Q4 2013			Year
MNOK	2013	2012.	2013	2012
Product Sales	37,7	24,0	114,5	85,8
Service	3,7	0,1	12,6	4,3
Revenue	41,4	24,1	127,1	90,0.
EBITDA	4,5	$-1,2$	3,5	2,3
EBITDA-margin	10,9%	$-5,0%$	2,7%	2,5 %
EBT	3,1	$-2,3$	$-3,4$	$-6,1$

Retail Solutions

"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

Retail Solutions

4 th quarter & full year 2013 & highlights 4

• Q4: Revenue MNOK 150,5 (152,4)
• Q4: EBITDA MNOK 19,2 (18,4)
• 2013: EBITDA MNOK 67,4 (44,9)
• Q4: 458 system delivered in Norway & Sweden (336)
• 2013: Revenue up MNOK 90,6 + 19%
• 2013: EBITDA up MNOK 22,5 + 50%

th quarter & full year 2013 Key Figures

	Q4 2013		Year
MNOK	2013	2012	2013	2012
Product Sales	113,3	109,2	399,6	318,3
Service	37,2	43.2	155,1	145,8
Revenue	150,5	152,4	554,7	464,1
EBITDA	19,2	18,4	67,4	44,9
EBITDA-margin	12,8%	12,1%	12,1%	9,7%
EBT 1	15.8	16,1	88,6	36,9
$-1$ $-1$

New notes & coins in Sweden

CashGuard Classic systems will NOT work after October 2015

All new CashGuard systems sold in Sweden guaranteed new notes & coins compatibility

New notes & coins in Sweden

start	Om Market	Kontakta oss	Prenumerera	Annonsera
	$market:plus \gg$		Branschindex Konsumentstudier	Skolor 7

SQS Security Qube Systems

"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

SQS Security

4 th quarter & full year 2013 & highlights

• Q4: 21 % decrease in turnover
• 2013: 14 % increase in turnover
• MNOK 2,4 non recurring costs due to management changes Q1 2013.
• MNOK 7,7 warranty costs 2013
• Quality issues close to be solved and controlled - need to regain confidence

4 th quarter & full year 2013 Key Figures

	Q4 2013		Year
MNOK	2013	2012.	2013	2012
Product Sales	19,1	30,4	101,6	93,8
Service	9,6	5,8	32,3	24,1
Revenue	28,7	36,2	133,9	117,9
EBITDA	$-5,3$	1,1	$-5,8$	2,7
EBITDA-margin	$-18,5%$	3,0%	-4,4 %	2,3%
EBT	-8,6	$-1,5$	$-17,4$	$-10,1$

Top 50 shareholders per December 31th 2013

No.	Name	No. of shares	%		27 EMMY HOLDING AS	290 005
	1 PINNÅS, ERIK (incl. fully owned companies) 1	4 932 276	11.1%		28 FANA ELEKTRIKEREN AS	250 000
	2 GLAAMENE INDUSTRIER AS	4 176 417	9.4%		29 JOHANSEN, STEIN	220 000
	3 STRØMSTANGEN AS	3933092	8.9%		30 ISAKSEN, NILS-OLAV	202981
	4 SKAGEN VEKST OG SKAGEN VEKST III	3921280	8.8%		31 PRIMA HOLDING AS	200 000
	5 HOLMEN SPESIALFOND	2 100 000	4.7%		32 BERNTSEN, HARALD	200 000
	6 AVANZA BANK AB	1 670 938	3.8%		33 PARTREDERIET MAST ANS	192750
	7 NORDNET BANK AB	1 600 811	3.6%		34 JOHANNESSEN, JAN TOMMY	181 000
	8 ZETTERBERG, GEORG (incl. fully owned companies)	1 530 404	3.4%		35 HEIMDAL, MORTEN	180 000
	9 SKANDINAVISKA ENSKILDA BANKEN	1 333 022	3.0%		36 KARLSSON, HENRIK	176 158
	10 WAALER, JØRGEN (incl. fully owned companies) 1	1005315	2.3%		37 SVENSKA HANDELSBANKEN AB	175 322
	11 GRESSLIEN, ODD ROAR	910 000	2.1%		38 RUUD, CHRISTIAN	170 000
	12 DELTA INVEST AS	776018	1.7%		39 ANDERSEN, BØRGE	161 000
	13 V. EIENDOM AS	715 000	1.6%		40 HAGEN, JOSTEIN MAGNUS	155 000
	14 MP PENSJON PK	699 806	1.6%		41 KAWA INVEST AS	151 000
	15 PSI GROUP ASA	660 253	1.5%		42 GRANBERG, KARL TRYGVE	144 000
	16 RING, JAN	645 322	1.5%		43 GEHRKEN INVEST AS	140 627
	17 SWEDBANK AB (PUBL)	567767	1.3%		44 WEIBULL, JOAQUIM (incl. fully owned companies)	138 000
	18 NORDEA BANK AB (PUBL)	458 063	1.0%		45 GAMMELSRØD, GUNNAR	127 177
	19 JACOBSEN, SVEIN (incl. fully owned companies) 1	450 000	1.0%		46 BJØRNSTAD, DANIEL	124 100
	20 SAXO PRIVATBANK A/S	353 000	0.8%		47 CK HOLDING AS	123 604
	21 NISTAD GRUPPEN AS	338 300	0.8%		48 SHB INVESTERING AS	120 000
	22 FRANKMO, ÅGE	320 383	0.7%		49 EVENSEN, TOR COLKA	120 000
	23 KONGSRUD, RUNE JACOB	300 213	0.7%		50 FONDSFINANS ASA	110 901
	24 JACAJO AS	290 063	0.7%		Sum 50 largest shareholders	38 321 378
	25 ALEXANDRA HOLDING AS	290 005	0.7%		Sum 1 661 other shareholders	6 054 662
	26 ANNETTE HOLDING AS	290 005	0.7%		Sum all 1711 shareholders	44 376 040

Up from 1709 shareholders per 3rd quarter

Questions?