StrongPoint

Quarterly Report • Apr 30, 2015

PSI Group ASA

1 st quarter presentation, April 30th 2015 8:15 am

Jørgen Waaler, CEO

PSI Group mission

"Driving Retailers' productivity by Technology"

• P/L Highlights 1st quarter 2015
• Selected Balance Sheet and Cash Flow items
• Segment P/L & Segment market update
• Q & A

Highlights 1st quarter 2015

Group operating revenues: MNOK 242.5 (MNOK 173.2)

An increase of 40 per cent.

Group EBITDA: MNOK 15.2 (MNOK 10.0)

An increase of 51 per cent

	Q1 2015		Q1 2014
MNOK	Revenues EBITDA Revenues EBITDA
PSI Technology	116,3	10,0	89,8	6,1
PSI Retail	83,5	3,6	50,2	4,6
PSI Label	46,4	5,4	41,9	2,6
Group	0,1	$-3,9$	0,1	$-3,1$
Eliminations	$-3,9$	0,0	$-8,9$	$-0,2$
Total	242,5	15,2	173,2	10,0

Proposed dividend: NOK 0,35 per share; up 17 per cent 4 per cent yield – traded ex dividend after April 30th – payable on May 15th

Revenues 4 quarters rolling

Business areas – Geographical markets

		Q1 2015			Q1 2014
MNOK	Norway		Other Sweden markets Norway Sweden markets			Other
PSI Technology	25,2	48,0	43,2	30,2	39,1	20,6
PSI Retail	27,9	35,4	20,2	20,8	29,2	0,2
PSI Label	17,4	28,0	0,9	16,0	25,3	0,5
Group	0,1	0,0	0,0	0,1	0,0	0,0
Eliminations	$-0,2$	$-3,7$	0,0	$-1,3$	$-6,6$	$-1,0$
Total	70,4	107,8	64,3	65,9	87,0	20,3

Business areas - Type of sales

	Q1 2015		Q1 2014
MNOK			New sales Service New sales Service
PSI Technology	76,4	39,9	59,5	30,3
PSI Retail	53,3	30,2	35,0	15,2
PSI Label	46,4	0,0	41,9	0,0
Group	0,1	0,0	0,1	0,0
Eliminations	$-3,9$	0,0	$-8,9$	0,0
Total	172,3	70,2	127,7	45,5

Group balance sheet - Total assets

KNOK	31.03.2015	31.12.2014 31.03.2014
ASSETS
Intangible assets 1)	80 191	86 175	106 674
Goodwill	139 700	141 759	108 038
Tangible assets	50 971	42839	41 265
Long term investments	481	481	481
Other long term receivables	1782	1850
Deferred tax	36 455	39 221	17082
Non-current assets	309 580	312 326	273 539
Financial investments	53	27	25
Goods	91 556	95 575	76 596
Accounts receivable	169 044	156 903	111 688
Prepaid expenses	10 50 6	10 323	12 084
Other receivables	15 4 51	16 721	6880
Bank deposits	14 5 12	18 973	11 211
Current assets	301 121	298 522	218 486
TOTAL ASSETS	610 700	610 847	492 025

• Inventory down by MNOK 4.0 compared to Q4
• A/R up by MNOK 12.1 compared to Q4

Group balance sheet – Total equity & liabilities

• Total net interest bearing debt MNOK 107.3 – up from 67.1 end Q4
• Disposable liquidity MNOK 32.7
• 104 544 own shares, representing 0.2 per cent

KNOK	31.03.2015	31.12.2014	31.03.2014
EQUITY AND LIABILITIES
Share capital	27513	27513	27513
Holding of own shares	-65	-65	$-409$
Other equity	218 517	219072	219418
Total equity	245 965	246 520	246 522
Long term interest bearing liabilities	53777	39 481	40 072
Other long term liabilities	27 634	28 691
Total long term liabilities	81 4 10	68 172	40 072
Short term interest bearing liabilities	68082	46 634	29 1 29
Accounts payable	86014	105 502	60437
Taxes payable	123	127	$-229$
Other short term liabilities	129 107	143891	116 094
Total short term liabilities	283 325	296 155	205 431
TOTAL FOUITY AND LIABILITIES	610 700	610847	492 025

Financials – Cash flow statement

KNOK	Q1 2015	Q1 2014	2014
Net cash flow from operation	$-19495$	$-8284$	45 890
Net cash flow from investment	$-11357$	$-5869$	$-29529$
Net cash flow from financing	26 7 52	17020	$-6288$
Net change in cash	$-4100$	2868	10 073
Effect of foreign exchange rate fluctuations on foreign currency
deposits	$-360$	$-211$	345
Cash and cash equivalents at the start of the period	18 973	8554	8554
Cash and cash equivalents at the end of the period	14 5 12	11 2 11	18 973

• Cash flow from operational activities: MNOK - 19.5 (MNOK – 8.3)
• Working capital increased by MNOK 27.6 during 1st quarter

PSI Retail

• Public announcement this morning - COOP has decided to roll out ESL Pricer for 150 ICA Stores.
• The project will start in June 2015 and will continue into 2016.
• The order value is estimated to MNOK 100.

PSI Retail

1 st quarter 2015 - highlights 1

• Systems integration & service of third party technologies
• ESL Pricer roll-out with Meny supermarkets chain – MNOK 100 - started
• New Vision revenue 1st quarter MNOK 20.2
• Negative EBITDA due to low investments after EUR conversion projects
• VLocker prospects

Q1
MNOK	2015	2014	2014
Product Sales	53,3	35,0	162,7
Service	30,2	15,2	74,4
Revenue	83,5	50,2	237,1
EBITDA	3,6	4,6	25,5
EBITDA-margin	4,3%	9,2%	10,8%
FBT	1,6	4,1	20,1

SQS Security

• 1 st quarter 2015 - highlights 1

• Significant improvement of EBITDA
• Awarded contract with Belgium's fastest growing CIT company – Cobelguard MNOK 10,4
• Quality issues solved and controlled client confidence good
• Market position in Russia positive

MNOK	2015	2014	2014
Product Sales	22,6	11,6	88,4
Service	13,1	8,6	28,5
Revenue	35,7	20,2	116,9
EBITDA	2,4	$-3,7$	$-1,7$
EBITDA-margin	6,9%	$-18,5%$	$-1,5%$
EBT 1	1,5	-6.4	$-43.5$

CashGuard

1 st quarter 2015 - highlights 1

• Awarded contract with OKQ8 in Sweden 700 gas stations
• Spain equal to Norway in Q1
• Planned pilots in supermarket chains in Spain and Germany
• Pilot installations in KL/Singapore on-going
• Seminar together with Swedish ambassador
• Planning increased local presence in SEA

Q1
MNOK	2015	2014	2014
Product Sales	43,6	47,9	165,8
Service	21,7	21,8	109,0
Revenue	65,3	69.7	274,8
EBITDA	9,2	9,9	37,0
EBITDA-margin	14,1%	14,2%	13,5%
EBT	7,2	8,6	29,3

• 1 st quarter 2015 - highlights 1

• Growth in Germany & Belgium
• Slow start in Norway & Sweden
• Initiated marketing in Lithuania
• Pilots expanded in Norwegian Hotel chain – hotel shops
• Increasing R&D resources

MNOK	Q1 2015	$2014$ 1)
Product Sales	10,3	29,9
Service	5,1	24,2
Revenue	15,4	54,1
EBITDA	$-1,6$	-3,3
EBITDA-margin	$-10,7%$	$-6,1%$
EBT	$-1,8$	-3,6

PSI Labels

1 st quarter 2015 - highlights 1

• 11 % increase in turnover
• Significantly improvement of EBITDA
• Integration of manufacturing facilities in Norway completed
• New HP Indigo investment MNOK 8,8 installed at Tangen in February

Q1
MNOK	2015	2014	2014
Product Sales	46,4	41,9	168,5
Revenue	46,4	41,9	168,5
EBITDA	5,4	2,6	17,1
EBITDA-margin	11,7%	6,2%	10,2%
FBT	2,3	$-0,1$	4,8

Top 50 shareholders per March 31st 2015

No.	Name	No. of shares	%	27 EVENSEN, TOR COLKA	260 124	0.6%
	PINNÅS, ERIK (incl. fully owned companies) 1	4 932 276	11.1 %	JOHANNESSEN, JAN TOMMY 28	247 125	0.6%
	2 STRØMSTANGEN AS	3 933 092	8.9%	29 FANA ELEKTRIKEREN AS	225 000	0,5%
	3 SKAGEN VEKST	3796612	8.6%	30 UGELSTAD, PER EINAR	223 601	0.5%
	4 GLAAMENE INDUSTRIER AS	3 423 407	7.7%	31 BERNTSEN, HARALD	200 000	0.5%
	5 HOLMEN SPESIALFOND	2 500 000	5.6%	32 PARTREDERIET MAST ANS	192750	0.4%
	6 AVANZA BANK AB	1950 183	4.4 %	33 PRIMA HOLDING AS	175 000	0.4%
	7 NORDNET BANK AB	1710 903	3.9%	34 GRANBERG, KARL TRYGVE	174 500	0.4%
	8 ZETTERBERG, GEORG (incl. fully owned companies)	1541304	3.5%	35 GAMMELSRØD, GUNNAR	174 288	0.4%
	9 SKANDINAVISKA ENSKILDA BANKEN AB	1405 152	3,2%	36 DELTA INVEST AS	162 185	0.4%
	10 WAALER, JØRGEN (incl. fully owned companies) 1	1050000	2.4%	37 KAWA INVEST AS	160 000	0.4%
	11 GRESSLIEN, ODD ROAR	1 030 000	2.3%	38 HAGEN, JOSTEIN MAGNUS	155 000	0.3%
	12 V. EIENDOM AS	900 000	2.0%	39 WEIBULL, JOAQUIM (incl. fully owned companies)	152 000	0.3%
	13 RING, JAN	705 122	1,6%	40 HEIMDAL, MORTEN 41 G-EIENDOM AS	150 000 140 627	0.3% 0.3%
	14 MP PENSJON PK	699 806	1.6%	42 BAKKEN, VIDAR	126 079	0.3%
	15 SVENSKA HANDELSBANKEN AB	617 519	1.4%	43 CK HOLDING AS	123 604	0.3%
	16 ROMULD, ARVE	600 000	1.4%	44 SHB INVESTERING AS	120 000	0.3%
	17 BUDVILAITIS, EVALDAS (incl. controlled companies) 1	555 709	1.3%	45 KPT HOLDING AS	110 000	0,2%
	18 JACOBSEN, SVEIN (incl. fully owned companies) 1	450 000	1.0%	46 NORDNET PENSJONSFORSIKRING	109 907	0,2%
	19 SAXO PRIVATBANK A/S	427 739	1,0%	47 PSI GROUP ASA	104 544	0.2%
	20 BJØRNSTAD, DANIEL	402 231	0.9%	48 NÆSS, BERNHARD	102 000	0.2%
	21 SWEDBANK AB (PUBL)	340 979	0.8%	49 STOCK PROPERTY INVEST AS	101 500	0,2%
	22 NISTAD GRUPPEN AS	338 300	$0.8 \%$	50 MAGNUS DEN GODE AS	100 858	0.2%
	23 FRANKMO, ÅGE	320 383	0.7%	Sum 50 largest shareholders	38 272 639	86,2%
	24 ANDERSEN, BØRGE	314 480	0.7%	Sum 1 336 other shareholders	6 103 401	13,8%
	25 KONGSRUD, RUNE JACOB	272750	0.6%	Sum all 1 386 shareholders	44 376 040	100 %
	26 JOHANSEN, STEIN	264 000	0.6%

Appointed as our financial and strategic advisor