Slide 1: Q3 2022
Q3 2022 CEO Jacob Tveraabak CFO Hilde Horn Gilen October 26, 2022
Slide 2: Agenda
Agenda • Introduction to StrongPoint • Highlights Q3 2022 • Other key financial figures
Slide 3: The StrongPoint double opportunity
The StrongPoint double opportunity E-COMMERCE, INFLATION, WAGE INCREASES Retailers’ needs Opportunity for StrongPoint 1. In-store: Pressure on Technology solutions in-store to brick & mortar retailers’ improve retailers’ productivity margin and hence uphold margins 2. E-commerce: Pressure to World-c
Slide 4: Focus on grocery retail
Focus on grocery retail Retail Solutions that increase efficiency and improve the shopping experience in-store and online We have a focus on the resilient grocery retail sector with spillover effects to other retail verticals 4
Slide 5: The StrongPoint sandwich
The StrongPoint sandwich Sauce Tomorrow’s solutions Toppings E-commerce solutions Bread & Butter In-store solutions
Slide 6: Reiterating StrongPoint's 2025 financial ambitions
Reiterating StrongPoint’s 2025 financial ambitions NOK 2.5 in 2025 bn EBITDA 13-15% 6
Slide 7: Highlights Q3 2022
Highlights Q3 2022 5) StrongPoint
Slide 8: Highlights Q3 2022
Highlights Q3 2022 1 Strong growth despite macro challenges 2 Continued customer success in priority areas 3 Further progress on 2025 strategic ambitions
Slide 9: 3rd quarter revenue
1 3rd quarter revenue Revenue +76% MNOK 346 321 301 289 284 249 252 220 214 215 223 215 196 181 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22
Slide 10: 3rd quarter EBITDA
1 3rd quarter EBITDA EBITDA MNOK +13 21 21 20 20 17 17 17 14 14 12 12 10 10 8 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22
Slide 11: Revenue share per solutions' segments
Revenue share per solutions’ segments 1 Relative share of revenue per segment Percent Segments In-store productivity 33 28 Payment Solutions 35 37 39 39 43 E-commerce Logistics 15 20 22 4 Check Out Efficiency 22 25 25 10 27 13 10 Shop Fitting 13 8 10 6 14 32 Other retail technology 21 12 12 16 11 9
Slide 12: Continued customer success in priority areas
22 Continued customer success in priority areas • StrongPoint ALS in UK signed two contracts with leading grocery retailers. • Contract with leading Do-It-Yourself retail chain in the Baltics for software delivery project. • All time high installation level of Electronic Shelf Labels (ESL) in a sing
Slide 13: Further progress on 2025 strategic ambitions
3 Further progress on 2025 strategic ambitions • Well aligned with the 2025 revenue growth path. Grocery retail proves to be non- cyclical and resilient. • ALS well integrated, enabling sales opportunities from the combined solutions. • Long-term positive fundamentals and outlook for e-groceries, al
Slide 14: Importance of ALS acquisition to StrongPoint
3 Importance of ALS acquisition to StrongPoint • Acquisition of ALS as a strategically important step to gain foothold for additional growth in the UK & Ireland • Financially comes across as a very sound and highly accretive acquisition • Added potential from ‘exporting’ their ‘swivel’ checkout – en
Slide 15: World's first AutoStore installation with frozen zone
World’s first AutoStore installation with frozen zone • AutoStore’s first grocery-focused partner. • Installing world’s first multi- temperature grid with ambient, chilled and now frozen food automation. • Successful execution of e-commerce strategy and partnership with AutoStore. -25ºC 2ºC 18ºC
Slide 16: Other key financial figures
Other key financial figures 5) StrongPoint
Slide 17: Air Link Group Ltd – a very attractive acquisition
Air Link Group Ltd – a very attractive acquisition • Revenue acc. Q3: 141 MNOK • EBT acc. Q3: 20 MNOK • Final purchase price 116 MNOK • Cash paid at closing: 89 MNOK • Shares in StrongPoint 23 MNOK • Adj. amount to be paid 4 MNOK • EV/R12 EBITDA pr Q3: 2.5
Slide 18: Revenue and EBITDA growth driven by organic and inorganic performance
Revenue and EBITDA growth driven by organic and inorganic performance MNOK Revenue EBITDA 1 252 69 63 62 942 981 54 824 755 42 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Q3 R12 Q3 R12
Slide 19: Fully explainable gross margin changes and deliberate e-commerce investment held back EBITDA in Q3
Fully explainable gross margin changes and deliberate e-commerce investment held back EBITDA in Q3 Gross margin ALS -2.5 p.p Additional e-commerce investment vs 2021* Product mix -4 p.p Percent FX -1 p.p MNOK Other -0.5 p.p 24 45 6 37 18 Q3 21 Q3 22 H1 2022 Q3 2022 YTD 2022 * Fully costed
Slide 20: Earnings per share from continued operations
Earnings per share from continued operations EPS EPS adjusted* EPS per quarter EPS rolling 12 month NOK per share NOK per share 0.81 0.66 0.67 0.56 0.57 0.58 0.49 0.51 0.39 0.39 0.26 0.18 0.27 0.22 0.12 0.18 0.11 0.04 0.07 -0.01 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 * EPS adjus
Slide 21: Cash Flow changes first 3 quarters 2022
Cash Flow changes first 3 quarters 2022 MNOK 20 42 85 174 35 57 54 8 15 18 Cash EBITDA Earn Out Acquisition Dividend Change WC Capex Change Change Cash 31.12.21 received long term Overdraft 30.09.22 debt / other
Slide 22: Renewal of lease agreement for ALS UK increased the net leverage to 1.08 in Q3 2022
Renewal of lease agreement for ALS UK increased the net leverage to 1.08* in Q3 2022 MNOK 67 25 75 30 39 35 37 IFRS Liabilities Net Interest Bearing Debt -13 -8 NIBD ex IFRS -166 -155 -177 -116 -136 -141 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 * Net leverage = Net Debt / 12 months rolling revenue
Slide 23: Financial calendar 2023
Financial calendar 2023 • February 13: Q4 2022 Strategy Update Session • March 31: Annual Report • April 27: Q1 2023 IR-contact: General Meeting 2023 CFO Hilde Horn Gilen • July 14: Q2 2023 hilde.gilen@strongpoint.com +47 920 60 158 • October 23: Q3 2023 New time: Launch of documents: 0800 CET Prese
Slide 24: #STRONG
QEaA #STRONG (3) StrongPoint
Slide 25: Thank you!
Thank you! 5) StrongPoint