Good morning, everyone. Welcome to StrongPoint's first-quarter Q&A audio call.

Today we have Jacob Tveraabak, CEO of StrongPoint, and Marius Drefvelin, CFO StrongPoint, to answer your questions. Before we start, let me give you a quick recap of the highlights from this morning's Q1 presentation.

Revenue for the quarter was at 342 million NOK, which was flat compared to last year's first quarter. The 12-month rolling recurring revenue increased by 3% compared to Q1 last year, ending at 384 million NOK, that's +3%, and year-to-date, the EBITDA was at 10 million NOK, on par with Q1 2025.

Before we start, a quick reminder to everyone, if you would like to ask a question, there should be a button in the lower right-hand corner of your screen. Obviously, you can also ask questions via the [email protected] email address, and we have already received a number of questions.

We'll kick off already on some of those. First question regarding e-commerce and Vusion: In the last quarterly report, you stated that we have launched the shelf-verified order picking solution with Vusion, integrating Vusion's on-shelf cameras with StrongPoint's order picking.

Can you please say which retailer or retail chain this was launched with, for you, Jacob?

Thank you. Apologies right away for that pollen allergy.

This has been launched as a product, not with a customer. I think it's important for investors to understand that whereas order picking or e-commerce is getting more and more mature, and ESL is also getting more mature in the markets, shelf-edge cameras is at the very beginning or inception of its journey into grocery stores.

There's very few today grocery stores that have shelf-edge cameras. Walmart has it now with Vusion.

Carrefour has it also with Vusion, and we hope to see many more of that coming, and that's when this product or feature will come really into play. As of now, it's a launched product, but not launched into a specific retailer.

Next question, also on order picking: In the investor update, you stated that your goal is to dominate manual in-store order picking. What is the current global total addressable market for this?

Regarding definitions, for me, to dominate in a business context means having the highest revenue, that's from the question. Does StrongPoint use a similar definition, for you as well, Jacob?

To maybe start with the latter, to dominate, yes, we want to be the preferred, and as such then, the biggest provider of in-store grocery picking solution. Now, if we're trying to sort of give some numbers to this and helping the audience, I think the way to think about this is, if you're a bit difficult to say conservative, if you consider the Western market, the Western e-grocery market, North America, Europe, and we're talking in ballpark 500 billion US dollars.

Right now, most of that, roughly 80% of that is being picked in stores. That means only 20% is being picked like Ocado is doing or Oda is doing, etc.

So 80% is picked in stores. That means out of the 500 billion dollar total market for e-grocery, 400 billion of revenue is picked in stores.

Now, that's the revenue in stores. If you again, ballpark, use across the board a basket size, and here we have to remember that markets are quite different, with basket size ballpark, we can talk about 100 dollars.

In the Nordics, it's higher, US is a little bit lower, but if you use 100 billion 100 USD on the in-store volume being picked in which is 400 billion, then we get to 4 billion orders. There's roughly 4 billion orders being picked in store in the Western markets.

Now, then the question is, we price our product with a fee per order. This ranges, of course, between big customers, where it's ballpark is closer to 10 cents, to small customers, where it's 50 or 60 cents, but let's assume 25 cents per order.

Then what we're talking about then is 10 billion sorry, 1 billion USD or 10 billion NOK. That is what should be addressed, and that's the market we want to dominate.

It's also important to recognize that this is a market which we want to dominate that's not only static, it's growing actually across the board in Western Europe. This is a market that's growing at roughly 10% every year.

I hope that satisfies the investor question.

Another question: Can you provide any further information regarding the leading UK-based e-commerce retailer going to install an AutoStore? Is it their first AutoStore installation?

How many stores or fulfillment centers does it have in the UK/worldwide, for you, Jacob?

We're not allowed to disclose the name of this UK-based e-commerce retailer. It's a retailer, it's not a grocery retailer.

Still very important for us to get traction on AutoStore in the UK. Yes, this is their first AutoStore installation.

What I can say is that 60% of their market is in the UK, but there's also facilities outside the UK in Europe. In total, three sites so I think if the question alludes to could there be more?

Yes, there could be more even in the UK, but it could also be more outside the UK. At least today, in two other distribution centers.

Next question, a bit broader: Do you see any signs of delayed investment decisions following increased macroeconomic uncertainty? Marius, this one for you?

I think the answer to that is a vague yes in the sense that, yes, we are experiencing, I would say actually continuing to experience that we are seeing some delayed decisions. We're definitely seeing the global uncertainties, although it's not impacting our supply chain or anything as far as being able to deliver yet at least.

I think there's a yes to that question. There's also another aspect that we have talked about for a little while, where we are seeing that our customers still have to balance between investing in pricing of their own goods or giving discounts, if you may, compared to purchasing new equipment from the likes of StrongPoint.

That, with the current conditions, is probably impacting the investment decisions as well. To summarize, yes, but not to a large extent yet.

One final question, if you have any more questions, please don't hesitate to put them in online, because there is a small delay between you writing the question and us seeing the question here. Next question: How close are you to a CashGuard Connect deal in Spain, or would you be disappointed if not reached within 2026?

One for you, Jacob.

CashGuard Connect, first, let me just start by saying that this has been a test, and it's a test of patience. Certainly, we were not expecting it to take so long to develop the solution, right?

Some of this is unfortunate, but it's possible to explain, first and foremost, the bankruptcy of our joint venture partner Hartmonetic in Spain. Now, that bankruptcy is being contained and handled, and we're very positive about what we can achieve to secure those assets and what we can achieve in making sure that that is not a question mark for both investors and customers.

Now, there's a lot of customer demand for the solution that we have secured. Now, we're still in that position that we want to get the product into a, call it, industrialized mode, and it's only first then that we can really take in big orders.

To Jørgen's question here, that's, even if we did get a big purchase order, we wouldn't be able to produce that in 2026. On the other hand side, it's also unlikely that any retailer would place a big order unless the product is already industrialized.

We have to give ourselves a little bit more patience. The customer interest is absolutely there.

The bankruptcy estate is being handled, and the product is getting there.

A few more coming in: You state CapEx of 7 million NOK in the presentation. CashGuard is 3, and POS is 1.

What is the balance spent on? Question for you, Marius.

Right. Assuming that the balance refers to the residual, the short answer is traditional CapEx.

It's fixed assets. We have service cars in many of our countries, etc.

This is more of what we would refer to as traditional capital expenditure.

Next question, translating for me from Norwegian: Is there any danger ahead of the Sainsbury's contract/delivery, noting that the progress was delayed?

As we stated in the report, the rollout is taking longer than anticipated or expected, think from both our side and from Sainsbury's side. I think in retrospect, we have to remember Sainsbury's is a absolute behemoth in the UK grocery retail market.

It's $60 billion worth, or yeah, dollars is the correct, dollars worth of revenue being picked in stores alone, right? As you can understand, having also 20 years of experience of doing picking in store, with that sort of sheer volume, you want to have certain features and functionalities that we have agreed upon in the contract to deliver on, that we will deliver on.

As always, there's taken more to get that across than that we were hoping for. That said, we are in very good dialogues with Sainsbury's.

I was at one of their stores 2 weeks ago, overseeing the early-morning picking operations and seeing that there's absolute progress. It's taken longer than we anticipated, but we are very positive about how this will evolve forward.

Staying in the UK, are there any updates on Vensafe in the UK? One for you as well, Jacob.

We're not commenting specifically on any updates. I think, in general, I want to say that, yes, there's absolutely a continued interest for Vensafe.

There's a pro and a con, right? The pro, unfortunately, I should say, is that theft is already high and still on the rise in the UK.

That makes the Vensafe solution very, very suitable to handle those sort of challenges. The con for Vensafe, if we may use such a term, is there's the tobacco legislation in UK is a bit more strict than in Norway regarding dispensing of tobacco.

Sure it's possible to dispense, but there's a little bit more cumbersome process. These are immediate and precedent challenges to get the Vensafe out in the market, but there's absolutely interest to get it out in the market.

We're still working with many, many of the grocery retailers there to make sure that we get Vensafe out in the market, although at a slightly different use case than we anticipated regarding tobacco, but then on the other hand side, more on other types of theft-prone items.

Next question: In cash flow movements, it is stated -11 million NOK in other prepayment. What is this referring to?

A question for you, Marius.

Yes, so that's referring to a combination of many items in the balance sheet, and we have this every quarter and every year. Essentially, these are prepayments to anything that could be public duties, suppliers, rent, etc.

Now, we have specified some of this in working capital, etc., but it's not possible to be super detailed on that, but it's generally prepayments. It could be a project that requires some prepayment before we get the payments back to us.

This is more of a general prepayments on both suppliers and operational costs.

Next question, I think I'm going to elaborate a little bit on the question. I think the question is, are there any opportunities, or are we seeing any opportunities for self-checkouts outside the Baltic region?

I think a question for you, Jacob.

I think the question also comes from the fact that we are the number one player when it comes to self-checkouts in the Baltics, whether that's with our own hardware and software or our software and third-party hardware, right? Are we able to replicate that elsewhere?

That's certainly the ambition and the goal. We should be aware these are long sales cycles to get in.

I'm looking forward to the day that we can shop in self-checkouts in Norway personally, that is a StrongPoint self-checkout, but it's taking some time. What I can say, though, is that we have already had success with our self-checkouts outside the Baltics, in Iceland, for instance.

That is a case that we're being able to also showcase externally, and that's with Prís, which is one of the grocery retail chains in Iceland. I hope you'll be able to see that we have super happy and satisfied customers also outside the Baltics with our solution, and of course, the ambition is to, as we get more known for offering this solution, to see that coming into the market both in the Nordics, in the UK, and Spain.

Next question: We take large contracts on CashGuard in Norway, but why isn't CashGuard good enough for larger customers outside the Nordic region? What's the difference?

What's the reason,

I think that what it means. I think, first of all, we do have some great partners outside both Norway and Sweden.

We've had South African partner, Irish partner, French partner that have been selling our CashGuard solution for many, many years in a very successful manner. Do I believe that our current CashGuard solution is good enough for other markets?

Absolutely, I believe that, right? Whilst on the other hand side, it's important to recognize that there are some subtle differences in the different countries.

I'll give the most relevant one, which is sort of Spain. For those of you that have been following StrongPoint for a while, we did and we do deliver CashGuard solution or traditional CashGuard solution to Alimerka, which is a regional grocery player in the Spanish market.

That has been very successful. However, it's also the only grocery retailer that has really embraced a cash management solution.

The default in Spain still is to use manual cash drawers that you saw in Norway in the '90s, or maybe even '80s. That's kind of what we're competing with.

Now, why is it taking so long? I think we have to recognize that, at least in the Spanish market, there's just a huge volume and huge velocity of cash that needs to be handled.

We can argue all we want with customers, why don't you also go the path of Alimerka, but this is also the reason why we started developing the CashGuard Connect solution, which is more tailored to a very cash-heavy market. Now, as for CashGuard, just to go back on that, I think absolutely there is still potential.

It says there Norway, but Sweden, of course, we're already selling CashGuard, I'm hopeful what we can do in Finland. As I said on a number of occasions, thanks to Mr.

Putin, cash is not going away anytime soon, and nobody knows this better than the Finns. I'm hopeful for what we can achieve also with the traditional CashGuard.

I think that is it. We haven't received any more questions, I think we will call it a day, giving a few more seconds just in case there's one more coming in.

Nope, then I think we'll call it for a day. Thank you very much to everyone for joining us, and we'll see you at the next quarter.

Thank you, and goodbye.