Slide 1: Third quarter of 2020 Financial result Jan – Sep 2020
Third quarter of 2020 Financial result Jan – Sep 2020 Helena Holmgren President & CEO Stockholm, Sweden, October 23, 2020
Slide 2: Third quarter 2020 in summary
Third quarter 2020 in summary • High delivery activity with several large on-going customer projects • Strong order intake; good mix of large customer projects and small- and medium size orders • Record high profitability for an individual quarter • Positive cash flow with 150 MSEK in cash at the en
Slide 3: Third quarter financials; Record high net sales for an individual quarter
Third quarter financials; Record high Net sales for an individual quarter • Several large customer projects on-going • Catch-up on deliveries originally planned in second quarter • Top 3 contributors; • USA • Netherlands • France • 150+ stores running on Pricer Plaza 3 ©2020 Pricer
Slide 4: Accelerating market demand following COVID-19
Third quarter financials; Accelerating market demand following COVID-19; need for automation and digitalization • New customer projects announced with Canadian Tire and NorgesGruppen • Good inflow of small and medium size orders • Top 3 contributors; • Canada • Norway • France • Order backlog of 754
Slide 5: Record high Gross profit driven by high Net sales
Third quarter financials; Record high Gross profit driven by high Net sales Gross Margin, % 40% 40% 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% Q3 Q4 Q1 Q2 Q3 2019 2020 Qua rte r Rolling 4 qua rter s 5 ©2020 Pricer
Slide 6: Gross margin; Many contributing factors cause volatility
Gross margin; Many contributing factors cause volatility • Product mix; • Type of labels • Label sizes • Services • Licenses and subscriptions • Customer mix; • Direct vs indirect sales • Large customer orders with volume discounts • Component pricing • Logistics • Currency effects • Etc... 6 ©2020
Slide 7: Good scalability drives operating profit to new heights
Third quarter financials; Good scalability drives operating profit to new heights • Large proportion of fixed costs in operating expenses • Good cost control • Positive currency effect due to continued F/X Operating margin, % volatility 15% 15% • Scalable supply chain 10% 10% 5% 5% 0% 0% Q3 Q4 Q1 Q2
Slide 8: Well managed cash flow considering high delivery activity and backlog
Third quarter financials; Well managed cash flow considering high delivery activity and backlog Cash flow from operating activities, SEK M 200 200 • High inventory level to manage deliveries planned in fourth quarter 150 150 • Favorable project-based payment terms 100 100 • No bad debt as consequenc
Slide 9: January – September 2020
January – September 2020 Strong growth in several markets; notably USA, Netherlands, Norway and Canada Order intake Net sales Operating profit Operating margin 1,135 1,079 85.9 8.0 SEK M SEK M SEK M % (661) (765) (76.4) (10.0) 9 ©2020 Pricer
Slide 10: General update
General update • Established presence in the Netherlands and Taiwan • Strenghtened market presence in several strategic markets; particularly with focus on tier 2-3 customers • Customer dialogues proceeding well despite travel- and meeting restrictions in several strategic markets • Logistics remain
Slide 11: Market development
Market development • High activity in all markets and all retail verticals • E-commerce continues to drive transformation of retail • Need for automation and process efficiency resulting in increased investment pace • Full chain decisions resulting in more complex procurement processes • Penetration
Slide 12: Why invest in Pricer?
Why invest in Pricer? • Strong underlying market growth; digitalization of physical retail considered necessary for maintaining competitiveness. • Best system on market → Unique and hard to copy technical solution; based on reliable, scalable, energy-efficient and interference-free communication. •