4th quarter 2018 - strongpoint
TRANSCRIPT
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
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
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
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