StrongPoint (STRO) ABGSC Investor Days summary

Business overview and market presence

• Operates in nine countries with full local support, focusing mainly on grocery retailers, which account for 80% of revenue.

• Provides solutions addressing e-commerce fulfillment, theft prevention, store efficiency, pricing and promotion, and cash handling.

• Has built long-term trust with top Nordic and Baltic grocery retailers, averaging 4.7 solutions per customer.

• Expanding internationally with flagship Order Picking solution, now trialed by major retailers in the UK, Belgium, and Portugal.

Financial performance and recurring revenue

• Q1 revenue remained flat, with a focus on increasing recurring revenue through service contracts and software licenses.

• Recent recurring revenue decline due to ending partnership with Pricer and transitioning to Vusion, the global leader in electronic shelf labels.

• Maintains positive EBITDA after cost reductions, aiming to further improve profitability.

• Growth supported by acquisitions and targeted investments, especially in e-commerce software and UK market expansion.

Strategic investments and product development

• Invested in Order Picking software, now internationally viable and delivering high gross margins.

• Acquired Air Link Group in the UK and Ireland, investing in personnel to drive market penetration.

• Developed CashGuard Connect for cash automation, facing delays due to a partner's bankruptcy but aiming for broader market entry.

• Launched a new point-of-sale solution in the Baltics, with plans to expand to other markets.