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4th quarter 2018 - StrongPoint

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CEO Jacob Tveraabak CFO Hilde Horn Gilen | VP Anders Nilsen February 28, 2018 4th quarter 2018
Transcript

CEO Jacob Tveraabak

CFO Hilde Horn Gilen | VP Anders Nilsen

February 28, 2018

4th quarter 2018

Agenda

• Intro

• Highlights Q4 2018

• Key figures

• Q&A

Mission

“Driving retailers productivity by providing innovative integrated technology solutions”

Strong market fundamentals for retail technology

1. E-commerce: most of our

clients want to grow within

e-commerce

2. In-store: all of our clients need

to improve store operations

productivity

Double opportunity for StrongPoint

Retail Technology is a

vital part of the solution

for retail companies to

grow in e-commerce and

to improve in-store

productivity

Own Technologies

Key focus areas

1. Maintain and grow relevance with retailers in

Home Markets (Norway, Sweden, Baltics)

2. Significantly grow presence with retailers in Spain

to mirror Home Market penetration

3. Grow e-commerce into a substantial portion of

StrongPoint’s business

… and be the best owner and employer for all

businesses under the StrongPoint-umbrella

Highlights Q4 2018

Highlights Q4 2018

1

2

3

4

Solid quarterly financials

Significant customer wins

Delivering on improvement initiatives

Proposing increased dividends

Solid quarterly financials: 19% revenue growth vs. last Q4

Revenue

MNOK

1

254

301

258

307

250238

205

259250

276

233

308

4kv 16 4kv 181kv 16 2kv 16 4kv 171kv 173kv 16 2kv 17 3kv 17 1kv 18 2kv 18 3kv 18

+19%

Solid quarterly financials: slight growth in EBITDA vs. last Q4

EBITDA

MNOK

1

10

3536

31

11

7

14

21

11

18

15

22

2kv 161kv 16 3kv 16 2kv 174kv 16 1kv 17 3kv 17 4kv 17 1kv 18 2kv 18 3kv 18 4kv 18

+1,6 MNOK

Solid quarterly financials: 13% growth in recurring revenue

Aftermarket revenue, 12 trailing months*

MNOK

1

156

174

200

221

267 271286

323

15

2536

20152011 2012

9

2013 20162014 2017 2018

236

292307

295 +13%Upgrade project

* Aftermarket revenue consists of service revenue and license fees, and installation income. 12 trailing month recurring, ending Q4 every year

Significant customer wins in Q4

• Installation of two Click & Collect pickup stations to

online retailer Barbora in Lithuania

• Live pilot at Axfood Snabbgross for StrongPoint Cub’s

“pick by light” solution

• Contract win of 1.200 CIT cases to one of Europe’s

leading CIT companies

2

Delivering on improvement initiatives: optimizing costs and focusing efforts

• Delivering MNOK 30 per year cost savings as of January 2019

• Number of employees reduced by 32, from 570 end Q3 to 538 end Q4

• Reduced consultancy spend and SG&A

• Enhancing our sales efforts

• Growing E-commerce: Push for Cub solutions sales and follow-up of C&C pilots

• Road runners:

• Exceptional growth in Cash Management solutions in Spain: doubling unit sales in Q4 vs. prior year

3

Q4, 2018

Q1, 2019 • Initializing “RoadRunner” concept in Germany

• Partners: converting our own retail office in Russia to partner offices

• Focus on M&A and Strategic Partnerships

• Hilde Horn Gilen assuming the position as CFO as per February 18, 2019

• MOU with Harting Systems for sale and development of self-checkout solutions in Germany

• Strengthening our organization

• Erik Vaag hired as SVP People & Organization Development. Starting June 17, 2019

• Peakon, a world-class Employee Engagement Tool, launched in February to develop and retain human

resources

Proposing increased dividends for 20184

Dividend per share

NOK

20152011 2012 20162014

1.50

2013 2017 2018

0.25 0.250.30

0.350.45

0.50

1.00

0.500.55

Extra-ordinary

Ordinary

Proposed

Key Figures

Revenue Q4

259

308

45

Q4 2017 Q4 2018Growth M&A

FX

10 14

Growth organicexcl. FX

+19%

188

82

39

-1

124

93

44

-2

Own Tech 3rd Party Elim/ASALabels

2018

2017

Revenue Q4 2017-2018

MNOK

Revenue Q4 2017-2018

MNOK

Revenue full year 2018

951 3648

1 068

-16

2017 FX

48

Growth M&A

Net effect

one-off items

Growth organicexcl. FX

2018

+12%

580

328

166

-5

449

339

176

-13

Own Tech 3rd Party Labels Elim/ASA

2018

2017

Revenue YTD 2017-2018

MNOK

Revenue YTD 2017-2018

MNOK

EBITDA Q4

20,9

22,5

Growth organicexcl. FX

2017

0.0

FX

0.70.9

Growth M&A

2018

14

12

5

-9

911

9

-8

Own Tech 3rd Party Labels Elim/ASA

2018

2017

EBITDA Q4 2017-2018

MNOK

EBITDA Q4 2017-2018

MNOK

EBITDA full year 2018

52

67

4

6

2017 FX

32

Net effect

one-off items

Growth M&A

Growth organicexcl. FX

2018

32

39

23

-27

20

2725

-20

Labels3rd Party Elim/ASAOwn Tech

2018

2017

EBITDA 2017-2018

MNOK

EBITDA 2017-2018

MNOK

Balance Sheet

42

27

67

15

47

11

22

17

Change in Debt

Cash 31/12-2018

Cash 31/12-2017

EBITDA Sold assetsTo Alimerka

1

Change WC Capex Dividend Other

CashFlow 2018

MNOK

Investor Relations

Main communication channels

• Reports, webcasts, etc. under “Investor” tab

• News articles under “News” tab

• Newsletters and Social Media

Financial calendar 2019

• Q1 – 26.04

• Q2 – 16.07

• Q3 – 31.10

IR-contact: CFO Hilde Horn Gilen

Q&A

Jacob TveraabakCEO

Anders NilsenVP IT, Accounting and Controlling

Hilde Horn GilenCFO

Thank you!


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