StrongPoint

Quarterly Report • Apr 28, 2016

Presentation of 1 st quarter 2016 April 28th 8:15 am

Agenda

• Highlights 1 st quarter 2016
• Segment financials and status
• Business model, solutions/markets
• South East Asia update
• Q & A including pre-submitted questions from shareholders

StrongPoint Mission

Driving retailers' productivity by providing innovative integrated technology solutions

Highlights 1 st quarter 2016

• Group operating revenues: MNOK 254,2 (MNOK 242,5)
• Group EBITDA: MNOK 10,1 (MNOK 15,2)
• Good cash flow from operations MNOK 13,6 (-19,5)
• Dividend to NOK 0,45 per share (0,35) to be approved today
• Alimerka 120 systems installed in 1st quarter Value MNOK 8-9

		01 2016			Q1 2015
MNOK	Revenue	EBITDA	EBT	Revenue	EBITDA	EBT
Proprietary Technologies	105,7	$-3.6$	$-6.8$	116,3	10,0	6,9
3rd party Technologies	105.0	12.7	11.0	83.5	3,6	1.6
Labels	47.4	4.5	0,7	46.4	5.4	2,3
Eliminations / ASA	$-3.9$	$-3.5$	$-3.5$	$-3.8$	$-3.9$	$-2.2$
Total	254,2	10.1	1.4	242,5	15,2	8,6

Revenues per quarter 12 months rolling

EBITDA per quarter 12 months rolling

1 st quarter revenues by category

	01 2016	Recurring	Q1 2015 Recurring
MNOK	New sales	sales	New sales	sales
Proprietary Technologies	56.9	48.8	76.4	39.9
3rd party Technologies	78.3	26.7	53.3	30.2
Labels	0.0	47.4	0.0	46,4
Eliminations / ASA	$-3.9$	0,0	$-3.8$	0,0
Total	131.3	122.9	125.9	116.6

1 st quarter revenues by geography

		01 2016			01 2015
			Other			Other
MNOK	Norway	Sweden	markets	Norway	Sweden	markets
Proprietary Technologies	32,8	29.9	43,0	25.2	48,0	43,2
3rd party Technologies	50,2	32.4	22,4	27.9	35.4	20,2
Labels	15,1	31.6	0,8	17.4	28,0	0.9
Eliminations / ASA	0.0	$-3.9$	0.0	$-0.1$	$-3.7$	0,0
Total	98,1	89,9	66,2	70.4	107.8	64,3

Group balance sheet - Total assets

• Inventory down by MNOK 7.6 from end Q4
• A/R down by MNOK 7.0 compared to Q4

KNOK	31.03.2016	31.12.2015	31.03.2015
ASSETS
Intangible assets	68 7 17	75469	80 191
Goodwill	149 744	153 410	139 700
Tangible assets	53 513	55 069	50971
Long term investments	1 1 0 5	989	481
Other long term receivables			1782
Deferred tax	27 651	28 117	36 455
Non-current assets	300 729	313 054	309 580
Financial investments			53
Goods	117 476	125 042	91 556
Accounts receivable	178 215	185 237	169 044
Prepaid expenses	11 245	12 092	10 506
Other receivables	18420	17317	15451
Bank deposits	19929	22 610	14 5 12
Current assets	345 286	362 297	301 121
TOTAL ASSETS	646 014	675 351	610 700

Group balance sheet – Total equity & liabilities

• Total net interest bearing debt MNOK 60.3 – down by 8.3 from end Q4
• Disposable liquidity MNOK 74.8
• 104 544 own shares, representing 0.2 per cent
• A/P MNOK 102.6 – up by 6.7 from end Q4

KNOK	31.03.2016	31.12.2015	31.03.2015
EQUITY AND LIABILITIES
Share capital	27 5 13	27 513	27 513
Holding of own shares	$-65$	-65	$-65$
Other equity	261889	269 799	218 517
Total equity	289 337	297 247	245 965
Long term interest bearing liabilities	32 690	37 186	53 7 7 7
Other long term liabilities			27 634
Total long term liabilities	32 690	37 186	81 410
Short term interest bearing liabilities	47 506	54 025	68 082
Accounts payable	102 636	95978	86 014
Taxes payable	38	233	123
Other short term liabilities	173808	190 682	129 107
Total short term liabilities	323 987	340 918	283 325
TOTAL FOULTY AND LIABILITIES	646 014	675351	610 700

Financials – Cash flow statement

KNOK	01 2016	01 2015	Year 2015
Net cash flow from operation	13 647	$-19495$	54 268
Net cash flow from investment	$-3132$	$-11.357$	$-23024$
Net cash flow from financing	$-12684$	26 752	$-28483$
Net change in cash	$-2169$	$-4100$	2 762
Effect of foreign exchange rate fluctuations on foreign currency deposits	$-511$	$-360$	875
Cash and cash equivalents at the start of the period	22 610	18973	18973
Cash and cash equivalents at the end of the period	19 9 29	14 512	22 610

• Cash flow from operational activities: MNOK 13.6 (MNOK 19.5)
• Working capital decreased by MNOK 21.2 during 1st quarter

Segments

Third party technologies

1 st quarter 2016 - highlights 1

• ESL sales to COOP, Bunnpris, ICA (Sweden)
• SCO to supermarkets Baltics & Russia

st quarter 2016 - key figures

	01	Year
MNOK	2016	2015	2015
Product Sales	78,3	53,3	390,4
Service	26,7	30.2	114.1
Revenue	105.0	83.5	504.5
EBITDA	12.7	3.6	39.4
EBITDA-margin	12,1%	4,3%	7,8%
EBT	11,0	1,6	29.1

Proprietary Technologies - Cash Security

1 st quarter 2016 - highlights 1

• Awarded contract of February 26th 2000 units - large European CIT company
• Deliveries in Q2 Q3
• 400 cases delivered to Sberbank in Q1. (total 800). Payment received.
• Customer satisfaction

st quarter 2016 - key figures

	01	Year
MNOK	2016	2015	2015
Product Sales	17,8	22,6	90,9
Service	9.5	13,1	45.4
Revenue	27,3	35,7	136,3
EBITDA	$-2.6$	2.4	11,8
EBITDA-margin	$-9,5%$	6.9%	8,7%
FBT	$-3.2$	$1.5\,$	8.3

Proprietary Technologies - Retail

Heavy investments in Cash Management software Prepare for new notes in Norway – possibly 4000-5000 systems upgrade Heavy investments in APAC – 9 persons 1 st quarter 2016 - highlights 1 st quarter 2016 - key figures

Several international fairs

	01	Year
MNOK	2016	2015	2015
Product Sales	39.1	53.8	212.4
Service	39,3	26,8	132,8
Revenue	78.4	80,7	345.2
EBITDA	$-1.0$	7.6	34.7
EBITDA-margin	$-1,3%$	9,4%	10.1%
EBT	$-3.6$	5,4	25,8

Labels

1 st quarter 2016 - highlights

• Continued focus on production efficiency.
• New factory move from Arlöv to Malmö

1 st quarter 2016 - key figures

	01	Year
MNOK	2016	2015	2015
Product Sales	47.4	46.4	185.5
Revenue	47.4	46,4	185,5
EBITDA	4.5	5,4	22.7
EBITDA-margin	9.5%	11,7 %	12,2%
FBT	0,7	2.3	8.5

South East Asia update

Progress, but no break through in SEA

• Successful pilots in large food retailers
• Totally 26 CashGuard/Vensafe installed
• Pricer representation in Malaysia

StrongPoint marketing – visit our continuously improved web

StrongPoint Vision

Becoming a recognised global provider of retail technology solutions

Top 50 shareholders per March 31st 2016

No Name	No. of shares	%
1 PINNAS, ERIK (incl. fully owned companies) 1	4932276	11,1%		28 FRANKMO, AGE	268 324	0.6%
2 STRØMSTANGEN AS	3933092	8,9%		29 J.P. MORGAN CHASE BANK N.A. LONDON	262 485	0.6%
3 SKAGEN VEKST	3755227	8.5%		30 VERDADERO AS	259 999	0.6%
4 HOLMEN SPESIALFOND	2 3 6 5 0 0 0	5.3%		31 SWEDBANK AB (PUBL)	256023	0.6%
5 SKANDINAVISKA ENSKILDA BANKEN AB	1971090	4.4%		32 UGELSTAD, PER EINAR	248 172	0.6%
6 AVANZA BANK AB	1818868	4,1%		33 FANA ELEKTRIKEREN AS	230 000	0.5%
7 NORDNET BANK AB	1632265	3.7%		34 CK HOLDING AS	223 604	0.5%
8 ZETTERBERG, GEORG (incl. fully owned companies)	1533256	3.5%		35 BERNTSEN, HARALD	200 000	0.5%
9 GLAAMENE INDUSTRIER AS	1 1 2 6 2 3 1	2,5%		36 MIDDELBOE AS	192898	0.4%
10 WAALER, JØRGEN (incl. fully owned companies) 1	1060000	2,4%	37.	PARTREDERIET MAST ANS	192750	0.4%
11 V. EIENDOM AS	976887	2,2%		38 GAMMELSRØD, GUNNAR	176840	0.4%
12 GRESSLIEN, ODD ROAR	950 000	2,1%		39 GRANBERG, KARL TRYGVE	174 000	0.4%
13 D. CARNEGIE AB	909 115	2,0%		40 HEIMDAL, MORTEN	170 000	0.4%
14 RING, JAN	741822	1.7%		41 KAWA INVEST AS	162 000	0.4%
15 MP PENSJON PK	699 806	1,6%		42 WEIBULL, JOAQUIM (incl. fully owned companies)	152 000	0.3%
16 ROMULD, ARVE	600 000	1,4%		43 G-EIENDOM AS	140 627	0.3%
17 BUDVILAITIS, EVALDAS (incl. controlled companies) 1	555 709	1,3%		44 BAKKEN, VIDAR	133 000	0.3%
18 SVENSKA HANDELSBANKEN AB	503 604	1,1%		45 NÆSS, BERNHARD	132 000	0.3%
19 JOHANSEN, STEIN	450 000	1,0%			128556
20 BJØRNSTAD, DANIEL	420 810	0.9%		46 NORDNET LIVSFORSIKRING AS		0.3%
21 JACOBSEN, SVEIN (incl. fully owned companies) 1	400 000	0.9%		47 MAGNUS DEN GODE AS	125 000	0.3%
22 NISTAD GRUPPEN AS	338 300	0.8%		48 SHB INVESTERING AS	120 000	0.3%
23 FARSTAD, PETTER HAAVARD	338 000	0,8%		49 HERSETH, PER (incl. fully controlled companies) 1	114 043	0.3%
24 ANDERSEN, BØRGE	323046	0.7%		50 RUUD, CHRISTIAN	110 000	0.2%
25 EVENSEN, TOR COLKA	305 000	0.7%		Sum 50 largest shareholders	37 384 725	84,2%
26 KONGSRUD, RUNE JACOB	302 000	0.7%		Sum 1 366 other shareholders	6991315	15,8%
27 JOHANNESSEN, JAN TOMMY	271 000	0.6%		Sum all 1416 shareholders	44 376 040	100.0%

Questions?