CEO Jacob Tveraabak
CFO Anders Nilsen
October 19, 2018
Third quarter 2018
Agenda
• Intro
• Highlights Q3 2018
• Key figures
• Q&A
Mission
“Driving retailers productivity by providing innovative integrated technology solutions”
StrongPoint – a Retail Technology provider
50%
19%
5%
10%
17%
Retailhomemarket
Retail outsidehome market
Cub
Cash Security
Labels
Revenue YTD Q3
100% = 760 MNOK
• Strong base of proprietary
products for in-store
productivity improvements
• Excellent starting point for
further E-commerce growth
• Unique position with 3rd
party solution partners, in
particular with Pricer
Retail Technology
Own Technologies
Strong market fundamentals for retail technology
307361
423480
534
602
20162013 2014 2015 2017 2018E
Annual growth+14%
Source: E-commerce Europe
B2C e-commerce sales in Europe
EUR bn
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
Regardless of our clients’ own view on e-commerce, the impact on the industry follows
Retail in-store economics
ILLUSTRATIVE
Reduced revenue growth in
stores due to e-commerce,
in particular in urban areas
Time
Profit
Revenue
CostIncreasing pressure to
improve in-store
productivity – Retail
Technology is a vital
part of the solution for
retail companies
€
Highlights
Highlights
1
2
3
4
Solid quarterly financials
Significant customer wins
Strengthening the organization
Optimizing costs and focusing efforts
Solid quarterly financials: 14% revenue growth vs. last quarter
Revenue
MNOK
1
254
301
258
307
250238
205
259250
276
233
2kv 17 3kv 182kv 161kv 16 3kv 16 4kv 16 1kv 17 3kv 17 4kv 17 1kv 18 2kv 18
+14%
Solid quarterly financials: slight growth in EBITDA vs. last quarter
EBITDA
MNOK
1
10
3536
31
11
7
14
21
11
18
15
1kv 174kv 163kv 162kv 161kv 16 2kv 17 3kv 17 4kv 17 1kv 18 2kv 18 3kv 18
+7%
Solid quarterly financials: 8% growth in recurring revenue
Aftermarket revenue, 12 trailing months*
MNOK
1
164
199
203
262 271284
308
2740 13
20152012 2013 20162014 2017 2018
289
208
311
297
308
5
0+8%
Upgrade project
* Aftermarket revenue consists of service revenue and license fees, and installation income. 12 trailing month recurring, ending q3 every year
Significant customer wins in Q3
• Break-through with StrongPoint CUB’s e-commerce solution to
major Danish retail chain
• 85 Self Check-Out HW & SW orders roll-out in H2 in “Home”
• Cash Management solution to Airport Rail Link provider in
Southeast Asia
• Pricer ESL in ~350 Joker stores in Norway
• Pricer installation of up to MNOK 50 at Scandinavian DIY chain
• Order for close to 960 CIT cases to Sberbank
2
Strengthening the organization
• Enhancing our sales efforts
• Establishing E-commerce unit, being led by Göran Thörn (CUB)
• Putting more emphasis on partner sales of our proprietary solutions with
the hiring of Roine Gabrielsson as SVP Global Partners
• Re-establishing Cash Security as a separate business unit, being led by
Lars-Åke Köpper
• Re-organizing product development
• Elevating Julius Stulpinas to SVP Technology
• Establishing “Retail Technology Product Board” led by Lars-Åke Köpper
• Dedicated team for E-Commerce product line led by Göran Thörn
3
StrongPoint’s Executive Management Team*
Home EMEAGlobal
Partners*E-commerce Technology Cash Security Labels
Retail Technology
▪ Norway▪ Sweden**▪ Baltics**
▪ Focus countries▪ “Road
Runners”
▪ Partner countries (other than “Home” and EMEA focus countries)
▪ Full E-commerce value chain with development and sale of ▪ CUB▪ Click & Collect▪ …++
▪ Product Development
▪ Product Management
▪ Full Cash Security value chain
▪ Full Labels value chain
Area of responsibility
Per Haagensen Trond Kongrød Roine Gabrielsson* Göran Thörn Julius Stulpinas* Lars-Åke Köpper Leif PerssonBU-leader, SVP and MD
Hiring in process
Jacob Tveraabak
Supply Chain
▪ Supply Chain/Sourcing (incl. hardware for Click & Collect)
Lars-Åke Köpper
CEO
Anders Nilsen CFOSVP People & Organization
VP Marketing** Rūta Kairienė
* As of January 1, 2019** Part of extended Executive Management Team (EMT). Sven Calissendorf in Sweden, and Rimantas Mažulis in the Baltics
3
Optimizing costs and focusing efforts – summary
• Result of cost optimization of 30* MNOK p.a. effect with
no negative effect on operations
• Product finalization and better role alignment
• Synergies in establishing E-commerce unit
• SG&A cost reduction
• Enhancing our sales efforts further
• Commercializing E-commerce (Cub) outside Sweden
• Stepping up “RoadRunner” concept (small, selected
agents) in key EMEA markets
• Expecting growth in sale of proprietary solutions
through Partners
• Focus on M&A and Strategic Partnerships
4
* Full effect as per January 1, 2019
Enhancing sales efforts: Commercializing E-commerce (Cub) outside Sweden
Proof of commercialization outside
Sweden: Major danish grocery chain
chooses our E-commerce Logistics Suite
4
CUB-integration with Pricer: allows for
“pick by light”, increasing productivity in
picking of goods
Enhancing sales efforts: Stepping up “RoadRunner” concept4
“RoadRunners”
• Small, selected agents focused on
selling CashGuard to small
businesses, and the HORECA
segment
• ~40 agents with more about 200
sales people covering Iberia
Capturing window of opportunity for CashGuard in Europe
8131 163 1 253
1 450
1 345
1 109
353250
526
175
2018E20162015 2017
EMEA* ex. Alimerka
Home
2,157
2,798
1,7811,700**
+78%
Number of invoiced CashGuards
Number of CashGuardsCash is still king in parts of
Continental Europe
Large window of opportunity for
CashGuard sale
StrongPoint innovating its sales
model, adding in “Road Runners”
and exploring “cash-
management-as-a-service” in
addition to traditional sale
* Incl. APAC
** Invoiced number of CashGuards per Q3 is 1,480
4
Alimerka
Focusing our efforts: Partners4
35
25
21
18
2016* 2017 2018 YTD
53
Pyd
Revenue Proprietary Retail
Technology through Partners
MNOK
* Split between Pyd and other Partners is estimate
Partner sale only ~10% of all sale
of Proprietary Retail Technology
(excluding service income)
Should be significant opportunity
to grow partner sales, which also
have attractive margins throughout
StrongPoint’s value chain
Key Figures
Revenue Q3
205
233
26
7
Q3 2017 FX
10
Growth M&A
Q3 2018Growth organic
+14%
126
71
38
-1
97
68
44
-4
LabelsOwn Tech 3rd Party Elim/ASA
2018
2017
Revenue Q3 2017-2018
MNOK
Revenue Q3 2017-2018
MNOK
Revenue YTD
692
760
Growth M&A
YTD 2017
35
Net effect
one-off items
936
FX
6
Growth organic
YTD 2018
+10%
392
246
126
-4
325
246
132
-11
Own Tech 3rd Party Labels Elim/ASA
2018
2017
Revenue YTD 2017-2018
MNOK
Revenue YTD 2017-2018
MNOK
EBITDA Q3
14,115,2
0,9 0,81,2
Q3 2017 YTD 2018FX Growth M&A
Growth organic
6
8
7
-5
45
9
-3
LabelsOwn Tech 3rd Party Elim/ASA
2018
2017
EBITDA Q3 2017-2018
MNOK
EBITDA Q3 2017-2018
MNOK
EBITDA YTD
32
45
5
4
6
Growth organic
YTD 2017
Growth M&A
Net effect
one-off items
2
YTD 2018
FX
17
28
17
-18
11
16 16
-12
Own Tech 3rd Party Labels Elim/ASA
2018
2017
EBITDA YTD 2017-2018
MNOK
EBITDA YTD 2017-2018
MNOK
Balance Sheet
42
20
45
15
50
7
22
3
Sold assetsTo Alimerka
CapexCash 31/12-2017
Change WCEBITDA Dividend Change in Debt
1
Other Cash 30/9-2018
CashFlow YTD 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
• 2018 Q4 presentation on February 28, 2019
IR-contact: CFO Anders Nilsen
Q&A
Jacob TveraabakCEO
Anders NilsenCFO
Thank you!