Annual report
2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
PRODUCT
SEGMENTS
In-Store Productivity
Payment Solutions
Check-Out Efficiency
E-commerce Logistics
Shop Fitting
Other Retail Technology
MARKETS
Norway
Sweden
Finland
Baltics
Spain
UK & Ireland
GOVERNANCE
Board Of Directors’ Report
Corporate Governance
Statement On Equality And Non-Discrimination
FINANCIAL
STATEMENTS
Consolidated Financial Statements
Financial Statements StrongPoint ASA
Auditor’s Report
ABOUT
About StrongPoint
Our WHY Statement
Key Figures 2021-2023
CEO Statement
Company Strategy
People & Organization
2023 Highlights
Future Of Grocery Retail
ESG
Retail Technology With Responsibility
About The ESG Report
About StrongPoint
StrongPoint’s Approach To Sustainability
Reporting On Material Topics
2
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
500+
NUMBER OF EMPLOYEES
About StrongPoint
StrongPoint is a retail technology company that provides
solutions and services to make shops smarter, shopping
experiences better and online grocery shopping more efficient.
For 38 years we have been listening to grocery retailers,
understanding their problems, and devising innovative
technology solutions to help them become more efficient
and create better customer experiences.
38
YEARS IN BUSINESS
2003
LISTED ON OSLO
STOCK EXCHANGE
2021
GRI REPORTING &
MEMBER OF UN
GLOBAL COMPACT
3
StrongPoint ASA | Annual Report 2023
4
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Key figures 2021-2023
2023 2022 2021
Operating revenue from continued operations 1 342 1 372 981 MNOK
Annual growth continued operations -2 40 4 %
EBITDA continued operations -1 76 54 MNOK
EBT continued operations -45 38 26 MNOK
Total assets 1 014 986 847 MNOK
Equity 475 507 498 MNOK
Equity ratio
2
46.8 51.5 58.9 %
Current ratio
3
1.27 1.53 1.96
Earnings per share
4
-0.77 0.66 4.32 NOK
Number of shares (average for year) 44 398 44 260 44 191 T
Number of shares 31.12 44 888 44 888 44 376 T
Share price (Oslo Børs) 31.12 13.35 22.00 25.80 NOK
Number of employees 31.12 524 511 400
2) Equity ratio
Equity 31 December x 100
Total assets 31 December
3) Current ratio
Current assets 31 December
Current liabilities 31 December
4) Earnings per share
Annual profit after tax
Average no. of shares
1.34Bn
NOK ANNUAL
REVENUE
9
COUNTRIES WITH
FULL SALES, SERVICE
AND SUPPORT
20+
COUNTRIES COVERED
WITH PARTNERS
1) Operating revenue includes profit from associated companies
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
55
RETAIL
TECHNOLOGY
IN EVERY SHOPPING
EXPERIENCE FOR
A SMARTER AND
BETTER LIFE
IMPACT
ON GROCERY
RETAILERS
Driving efficiency
savings and
boosting margins
IMPACT
ON END
CUSTOMERS
Improving both
the in-store and
online experience
for shoppers
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
6
StrongPoint ASA | Annual Report 2023
WE LOVE RETAIL
As experts, we always look
to improve and innovate. We
come up with new technological
solutions that are tailor-made
for our retail customers.
WE WIN CUSTOMER
EVERY SINGLE DAY
It is not about just winning the
contract. It is the constant
development of the
relationship and never taking
a good customer for granted.
WE MAKE A
DIFFERENCE
Share your learnings,
knowledge, wins and losses.
Be the best you can be, and
help others to achieve
the same.
WE ARE OBSESSED
WITH EFFICIENCY
We don’t waste time or
resources, so every second
counts in our pursuit of
perfection.
WE STAY
STRONG, SAFE AND
PASSIONATE
We take care of each other, and
in challenging times and crises
we stand together.
THE POWER OF WE
Values are what WE choose to value. It is the behaviours
and skills that WE cherish. It forms the foundation of how WE
want it to be when working for StrongPoint. At StrongPoint
WE have chosen 5 values that all demonstrates behaviours
and skills that WE want all our colleagues to possess.
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
7
StrongPoint ASA | Annual Report 2023
CEO
STATEMENT
2023 turned out to be a financially challenging
year for StrongPoint. The macroeconomic
realities with relatively high inflation and rising
interest rates impacted our ever so resilient
grocery retail customers’ investment willingness.
In combination with large scale investments to
position ourselves and win new customers, our
finances came under pressure. With that context
it was relieving to announce in early 2024, that
one of the largest and most esteemed grocery
retailers in Europe – Sainsbury’s – had chosen
our Order Picking solution for its E-commerce
fulfilment in stores. Whereas we continue to
invest in our solutions and with customer
prospects which we believe will bring significant
value both to our customers and shareholders,
the general economic climate and our financial
position suggest we will be very diligent in how
and where to invest and where to not invest.
8
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
At the start of 2020, we unveiled StrongPoint’s 2025
Strategy. We set our financial ambitions at NOK 2.5 billion and
an EBITDA margin of 13–15%. Last year, I pointed out the fact
that achieving such ambitions is rarely a linear journey. Now,
having faced the pause in customers’ investment appetite, in
the wake of the general economic climate and uncertainty, we
recognize that it will take more time than earlier anticipated to
achieve such ambitions. Following our annual Strategy Update
Session this Spring, in conjunction with the Q1 results and
AGM, we plan to share our updated strategic and
financial ambitions.
Traditionally, StrongPoint’s core markets in Scandinavia and
the Baltics have been able to cover the investments in other,
larger geographies. Although our Baltic operations are
leaving behind a solid 2023, it alone has not been able to
make up for the shortfall experienced in Norway and Sweden.
As a consequence, following the slow market development in
Q2 and Q3, we announced a cost reduction effort reducing our
annual cost base of a net NOK 20 million with full effect from
January 1, 2024. The cost reduction is net of those additional
investments we are doing in our largest whitespace markets,
the UK and Spain.
Following our acquisition in mid 2022 of Air Link Group,
increasing our geographical footprint to the UK and Ireland,
I stated this was essentially a platform for penetrating one of
the largest and most sophisticated grocery retail markets in
Europe. Throughout 2023 we have been investing in people
and assets to start serving the British market with our
solutions. The first fruit from these efforts came in early 2024
with the confirmation of our Order Picking solution being
selected by Sainsbury’s. Whilst all hands are on deck to
ensure the successful rollout of our solution to Sainsbury’s,
we are also pushing ahead to capitalize on this great win. In
the medium and long-term I feel confident that many of our
solutions are very well suited for the British market, and we
will work relentlessly to succeed there.
In our Strategy Update Session in the Spring of 2023, we
announced that we were working jointly with a major Iberian
grocery retailer on the development of a ground-breaking new
cash management solution. This solution constitutes a
milestone in our customer service of grocery retailers in our
other large, whitespace market beyond the UK: Spain. As
in the UK, we believe many of our solutions are ripe for the
Spanish grocery retail market, and with an important solution
for a major grocery retailer, we expect significant opportunities
to capitalize on this. Whereas we are confident that the
solution, named CashGuard Connect, will provide significant
value to this customer – and others alike – the development
of this revolutionizing solution has taken more time and effort
than expected. That said, we are optimistic about revealing
more about the solution and the customer in play, within the
coming months.
In 2023, we also expanded our geographical footprint to
include Finland, with the acquisition of the country’s Pricer
partner, Hamari. This expansion has now brought the number
of countries in which StrongPoint operates with its own
workforce to nine. Under the operational patronage of the
Baltics, leveraging the cultural and economic ties between
Estonia and Finland, we are optimistic about the opportunities
that could unfold there.
In 2023, StrongPoint’s revenue was flat with a 2% topline
decline, following the tough market conditions. As for
profitability, our EBITDA was significantly down from 76 MNOK
in 2022 to negative 1 MNOK in 2023. Although parts of this
decline are due to non-recurring items, and the fact that we
have adjusted our cost base following the earlier announced
cost reduction efforts, the financial performance in 2023
isolated was unsatisfactory. In the short-term the financial
outlook is also somewhat challenging, as the tendencies
observed throughout much of 2023 prevail. Certainly, we
expect to capitalize both medium and long-term on both our
Sainsbury’s win as well as CashGuard Connect, however such
major initiatives also require focus, people and investments
prior to revenue recognition.
2023 was the year in which Artificial Intelligence (AI) really
made its break-through in society at large. Having invested
significantly in different aspects of AI, from smart picking order
algorithms in our Order Picking solution to integrations with
item detection algorithms in our self-checkout solutions, we
expect to find new areas in which AI can and will be integrated
in our solution offering – and we are hopeful about getting our
solutions adopted by customers.
Following a tough year, I am pleased about the enthusiasm
and drive of our people. As a company, we are optimistic
about the future as grocery retailers will be investing in
technology that improves their business – and we have just
recently shown that we can win and serve the largest and
most admired grocery retailers in Europe.
Stay safe and strong!
Jacob Tveraabak
CEO
Following our annual Strategy Update Session
this Spring, we plan to share our updated
strategic and financial ambitions.
In 2023, we also expanded our geographical
footprint to include Finland, with the acquisition
of the country’s Pricer partner, Hamari.
Certainly, we expect to capitalize both medium and
long-term on both our Sainsbury’s win as well as
CashGuard Connect.
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
In an economic climate with limited predictability and
transparency it is extremely important for both the
management and the board to make the best possible
evaluations and decisions for the company’s development for
both the short and long-term. StrongPoint is in an ongoing
transition and transformation, and we must ensure we find the
best possible balance between required short term
corrective actions and support behind longer term initiatives.
This is never easy, and even more difficult in situations where
timing and decision making is outside your control. In
StrongPoint we have over the last few years had a good blend
of a solid performing base business and some new growth
initiatives both in terms of products and markets. Following the
sale of the two business units, ‘Labels’ and ‘Cash Security’ a
few years ago we have become a ‘Retail Technology’ only
focused company. This has enabled us to develop a better
than ever portfolio of highly relevant products and solutions,
both for in-store and e-commerce. These are all solutions and
technologies that respond to grocery retailers’ megatrends, and
we know that we are well positioned to get access to tier-1
accounts in our priority markets. However, these sales and
negotiation processes take time, sometimes years, to
conclude and start executing on. This is of course frustrating
both from an operational, planning and communication point of
view, but still, something we must adapt to.
We often talk about StrongPoint’s ‘double opportunity’,
reflecting the fact that we have attractive technology solutions
both for retailers in-store and online challenges. Retailers need
to find ways to increase in-store productivity and keep labour
costs down by leveraging technology and automation, and the
e-commerce offerings need highly efficient fulfillment solutions
to drive down costs and improve the customer experience.
StrongPoint is currently one of few companies on the
international arena that can offer grocery retailers a
complete menu of relevant and world-class technology
solutions tailored to their needs. The recent breakthrough in
the UK with Sainsbury’s is an excellent example of the
attractiveness and competitiveness of our solutions! We
expect artificial intelligence and machine learning to play an
even more important role going forward, and we are already
leveraging this in some of our solutions. We continue to
increase our presence in our targeted priority markets by both
organic and M&A initiatives. Our UK business has been
reorganized under a new leadership team, the Spanish
business unit is getting substantial support at all levels to
deliver on the significant CashGuard Connect project, and
most recently we got our own StrongPoint feet on the ground in
Finland through the acquisition of Hamari. At the same time our
financial performance has forced us to execute some required
right sizing and cost reduction initiatives, again an illustration
of the important balance between the short-term actions vs the
longer term business building initiatives. While both the lead-
ership team and the Board of Directors do expect also 2024 to
be a challenging year impacted by continued
limited predictability and transparency, we remain very
confident that StrongPoint is better positioned than ever to
deliver on the significant opportunities in the retail technology
market in the years to come!
Morthen Johannessen
Chairman
9
StrongPoint ASA | Annual Report 2023
CHAIR’S
PERSPECTIVE
Against the backdrop of weak and
disappointing 2023 financial results,
StrongPoint’s external stakeholders might face
challenges to see any positive development and
progress for the company. Both revenue and
profitability came in far below plans and
expectations, but I can assure you that the entire
StrongPoint team have been doing their utmost
to protect and improve the performance across
all our business units and markets in a year with
extremely challenging macro-economic
conditions and customer sentiment. In 2023 it
was only the Baltics business unit that delivered
good financial results, and even the historically
solid and stable markets Norway and Sweden
took a hit. The job ahead is now to bend the
trend and get back on track with topline growth
and improved profitability. The good news is that
the opportunities remain both intact and
significant!
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
OUR T
-
SHAPED STRATEGY
GO WIDE WITH
WORLD
-
CLASS
SOLUTIONS
FOR SELECTED
MARKETS
• Certain E-Commerce Order
Fulfillment solutions:
- Order Picking
- Automated Fulfillment
- Last Mile Solutions
• Cash Management
• Self Checkout
GO DEEP IN CORE
MARKETS WITH
SOLUTIONS THAT
COVER IN
-
STORE,
E
-
COMMERCE
SOLUTIONS
• Norway
• Sweden
• Finland
• Baltics
• Spain
• UK & Ireland
10
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
TECHNOLOGY
RESPONDING TO
GROCERY RETAILER
MEGATRENDS
LABOUR
COSTS
GOING UP
DISCOUNTERS
BECOMING
MAINSTREAM
INCREASING
CUSTOMER
DEMANDS
Need solutions to be less
labour dependent, often
involving automation
All players in the market
need to keep costs down
to be competitive
Constant need for better and
faster customer experience,
in-store and online
STRONGPOINT
DOUBLE
OPPORTUNITY:
Technology
solutions solving
1) in-store and
2) online challenges
11
StrongPoint ASA | Annual Report 2023
OPPORTUNITY 1: IN
-
STORE SOLUTIONS
The pressure on brick-and-mortar retailers’ margins means that
grocery retailers need to find ways to increase in-store productivity to
boost profitability
OPPORTUNITY 2: E
-
COMMERCE SOLUTIONS
Grocery retailers with e-commerce services need highly efficient order
fulfilment solutions to keep costs down
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
T
12
StrongPoint ASA | Annual Report 2023
FOCUS ON
GROCERY
RETAIL
StrongPoint mainly serves the grocery retail market.
Grocery retail, unlike retail market in general, is non-
cyclical and highly resilient. In times of market turmoil
and economic uncertainty, consumers will always shop
for groceries. Beyond grocery retail StrongPoint has
spillover opportunities to sell its solutions to other
market segments, in particular DIY stores, sports
retailers, fashion retailers and pharmacies.
DIY SPORTS
FASHION PHARMACIES
GROCERY
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
13
StrongPoint ASA | Annual Report 2023
OUR GROCERY RETAIL
SOLUTION SUITE
* Fully StrongPoint proprietary solutions
*
*
*
*
* * * *
*
*
*
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
MARCH
FRAMEWORK AGREEMENT
WITH BALTICS GROCERY
RETAILER RIMI FOR PRICER
ELECTRONIC SHELF LABELS
One of the largest retailers in the Baltics,
Rimi (part of ICA Group), signed a
framework agreement with StrongPoint to
supply and install Pricer Electronic Shelf
Labels to potentially all its 300 stores across
the three Baltic countries.
STRONGPOINT AWARDED
CONTRACT WITH TOP
-
TIER
UK GROCERY RETAILER
StrongPoint, was awarded a further
allocation of a self-service checkout upgrade
project for a top-tier UK based grocery
retailer. The project is led by StrongPoint
ALS, StrongPoint’s UK business unit. The
contract follows a multi-year project that
StrongPoint ALS has been undertaking for
the same customer.
APRIL
ICA MALMBORGSGRUPPEN
CHOOSES STRONGPOINT
AS SUPPLIER OF PRICER ESL
ICA Malmborgs, a regional grouping
consisting of six ICA stores in Malmö and
Lund, chose StrongPoint to supply and
install Pricer SmartTag Color ESLs
(Electronic Shelf Edge Labels in 4 colors).
StrongPoint was awarded the contract
following a competitive process.
APRIL
Concluded successful installation of
AutoStore MFC for ColliCare
About ColliCare
ColliCare is an industry-leading provider of
e-commerce logistics, including shipping and
transport. They focus heavily on Scandinavia,
Europe and Asia.
2023
HIGHLIGHTS
In 2022 StrongPoint won a competitive
tender to build an AutoStore cube
storage solution for ColliCare, a
third-party logistics company. The aim
was to help cut delivery time for their
e-commerce customer, IKEA. Before,
IKEA’s online customers were able to
receive their mail orders, on average,
in 3-7 days. Now, 4 out of 5 customers
will get their orders within 2 days.
14
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
15
StrongPoint ASA | Annual Report 2023
MAY
STRONGPOINT AND ASTE
FINLAND ANNOUNCE
PARTNERSHIP
StrongPoint signed a partnership and
distribution agreement with Aste Finland, a
leading provider of food and drink cooling
devices and temperature-controlled grocery
lockers for grocery e-commerce. Aste Finland
serves some of the biggest grocery retail
companies in Finland.
AUGUST
STRONGPOINT PARTNERS
WITH LEADING SUPPLY
CHAIN SOLUTIONS PROVIDER
BLUE YONDER
A major part of StrongPoint’s e-commerce
fulfilment strategy is its micro-fulfilment offer,
centred around AutoStore’s Cube Storage
Automation. With recent innovations, such as
the automation of frozen groceries fulfilment, it
is game changing for grocers looking to
automate their fulfilment whether instore or in
a warehouse.
SEPTEMBER
LEADING NORWEGIAN
GROCERY RETAILER ORDERS
80 MNOK OF PRICER ESLs
FROM STRONGPOINT
StrongPoint signed an agreement with one of
the largest grocery retailers in Norway, to
update its current installation of Pricer
Electronic Shelf Labels (ESLs) to the new
next generation ‘SmartTag Power+’ version in
the majority of its stores.
About Coalescent Mobile
Robotics’ AMRs
Coalescent Mobile Robotics’ AMRs can be placed
underneath trolleys commonly used in retail enabling
them to move without human involvement. The trolley
can then move independently from and to predesignated
locations and can follow an individual store worker
wherever they need to go. What sets Coalescent apart
from others in the field is they have a proven track
record of using their solution in real world conditions
alongside shoppers in-store.
JULY
Formalizes
Partnership with
Coalescent Mobile
Robotics
StrongPoint has formalized a
partnership with Coalescent Mobile
Robotics, a Danish-based pioneer of
in-store autonomous mobile robots
(AMRs) for the retail industry. The
scope of the agreement provides
StrongPoint with distribution rights of
Coalescent Mobile Robotics’ in-store
AMRs throughout Europe.
As a retail technology company focused both
in-store and one-commerce fulfilment,
StrongPoint has a unique depth and breadth of
understanding in both automation and retail.
We have been working together over the last 18
months and we are proud to take our
collaboration and partnership to the next level.
Together we can help retailers drive essential
efficiency savings in their operations freeing up
labour to focus on customer service.
Clionadh Martin, CEO and Founder of
Coalescent Mobile Robotics
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
OCTOBER
LARGEST GROCERY RETAILER
IN BALTICS, MAXIMA, SIGNS
MULTI
-
YEAR FRAMEWORK
AGREEMENT FOR
STRONGPOINT
SELF
-
CHECKOUTS
StrongPoint signed a three-year framework
agreement with the Baltic-based grocery
retailer Maxima Group UAB to provide at least
1,000 StrongPoint self-checkout units.
Maxima Group is the largest grocery retailer in
the Baltics and has over 1,500 stores in
Lithuania, Latvia, Estonia, Poland
and Bulgaria.
DECEMBER
NORWEGIAN RETAILER
FELLESKJØPET ORDERS
PRICER ELECTRONIC
SHELF LABELS FROM
STRONGPOINT
StrongPoint signed an agreement with the
Norwegian retailer Felleskjøpet Rogaland
Agder for Pricer Electronic Labels in all its 21
’BondeKompaniet’ stores. Felleskjøpet
Rogaland Agder retails a range of items,
including agricultural equipment, gardening
tools, pet supplies, and household hardware.
This is the first time StrongPoint has worked
with the retailer. Felleskjøpet has around 200
stores across Norway and Sweden and had a
turnover of NOK 20.2 billion in 2022.
OCTOBER
StrongPoint enters Finland with acquisition
of Brand ID Hamari Group Oy
On 31 October 2023, StrongPoint acquired 100% of the shares in Brand ID Hamari
Group Oy. Hamari is a retail technology solutions company that provides services
and installation of, amongst others, electronic shelf labels (from Pricer) and a retail
staff communications solution. Besides having a strong reputation among grocery
retailers, Hamari is particularly strong in serving pharmacies. This is an area in
which StronPoint is keen to grow its presence, as well as continue to expand the
grocery retail customer base.
As part of our 2025 strategy, we stated that acquisitions would be used to achieve our financial
ambitions. In 2022 we entered the UK & Irish markets with the acquisition of ALS and we are now
entering the Finnish market. As one of Pricer’s largest and most experienced partners, StrongPoint has
unrivalled expertise in electronic shelf labels which we will leverage now in Finland with Hamari. By this
acquisition we will strengthen our position in the in-store market and be serving some of the strongest
grocery retail brands in Finland.
Jacob Tveraabak, CEO StrongPoint
16
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
17
StrongPoint ASA | Annual Report 2023
PRODUCT
SEGMENTS
StrongPoint is a grocery-focused company that serves retailers
with products and solutions for in-store and online shopping.
The group is divided into six product segements.
IN
-
STORE
PRODUCTIVITY
Electronic Shelf
Labels, Scales and
wrapping systems,
ShopFlow Logistics and
Humanoid Grocery
Robot.
CHECK OUT
EFFICIENCY
Self-Checkout, Vensafe,
Self Scanning and
POS systems.
E
-
COMMERCE
LOGISTICS
Order and in-store
picking, Home Delivery,
Grocery Lockers and
Drive-Thru and
AutoStore micro-
fulfilment solutions
.
OTHER RETAIL
TECHNOLOGY
StrongPoint implement,
personalise and maintain
an enterprise resource
management solution that
includes trading processes
from customer service units
to the central office.
SHOP FITTING
Shop fitting refers to the
fitting out retail and
service shops and stores
with equipment, fixtures
and fittings. StrongPoint
provides a wide variety of
shop fitting services
including checkout
refurbishment solutions.
PAYMENT
SOLUTIONS
CashGuard is the
fastest and most reliable
cash management
system on the market.
18
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
In-store Productivity
Electronic Shelf Labels
Pricer’s Electronic Shelf Labels (ESL)
ensure the same price is always
displayed on the shelf and at checkout.
ESLs enable the retailer to save time and
improves the customer experience through
accurate and reliable pricing. Pricer ESL
shelf-edge communication platform offers
much more than price automation, and
includes powerful tools for geolocation
positioning, in-store navigation and flash for
promotions and tasks.
Scales and wrapping systems
DIGI Teraoka provides scales and wrapping
systems that help customers with safe
labelling, correct weighing, and quick and
easy packaging of goods in stores,
regardless of whether it is cheese, fruit,
vegetables, delicacies, fish or sweets that
are being weighed. Through innovation, the
scales have been upgraded with a camera
and self-learning software for AI- based
image recognition. This ensures
accuracy, speed and loss prevention. A new
addition to the portfolio is a Zero waste
solution supporting bulk shopping and “Bring
Your Own Container”.
ShopFlow Logistics
ShopFlow Logistics is a cloud-based mobile
logistics system for handling routines such
as receiving goods, inventory, balance
adjustment, ordering labels printing and
waste management – on both Android and
iOS operating systems.
Humanoid Grocery Robot
StrongPoint and 1X Technologies (Halodi
Robotics) are working together to
commercialize a humanoid grocery retail
robot with the primary function of reshelving
in-store, an operation which currently
requires approximate 30% of all labor hours
in a grocery store. By allowing the reshelving
robot to perform repetitive tasks, more time
can be spent by staff to help customers and
improve the value proposition of the store.
100
200
300
400
500
2022
REVENUE
320
339
PRODUCTS
220
MNOK
426
2023 2022 2023
87
SERVICES
100
2022 2023
24%
RELATIVE
SHARE OF TOTAL
REVENUE
2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
19
StrongPoint ASA | Annual Report 2023
Market Today
In-store productivity solutions are
primarily provided as a cloud service,
which entails multiple advantages such
as faster rollout, no need for local
hardware, and central operations that
provide full control of upgrades and
security. Electronic Shelf Labels (ESLs)
from our partner Pricer are used by most
grocery retailers in Norway and Sweden,
and we see a growing market also in
the Baltics, Spain, the UK, Ireland and
Finland. Grocery retailers have achieved
cost savings and improved customer
experience by benefiting from more
accurate and reliable pricing, and we see
a spillover effect to other retailers. Do-it-
yourself (DIY), Pharmacy and
Convenience stores are now starting
to use Pricer ESL for price automation.
Scales & Wrapping systems from DIGI
are increasing due to higher demand for
self-service, grab-and-go, prepared meals
in-store and zero waste solutions
supporting “Bring Your Own Container”.
Future Outlook
Grocery retailers who have extensive
experience with ESLs are now looking to
gain further operational efficiency by
using more of Pricer for dynamic
product positioning and flash functionality
for product promotions, shelf
replenishment and online order
fulfillment. The Pricer platform can also
be used for interactive in-store
communication to enhance the customer
experience by displaying dynamic and
creative content on larger screens, to
reduce food waste, as markdown
products can easily be found by
combining expiration dates with dynamic
pricing, product positioning and instant
flash. Digitalization, automation and self-
service are not new, but the solutions
have matured in recent years. Several
retail chains have moved beyond the
pilot phase and rolled out the solution,
supported by technology from companies
such as Google, Microsoft and AWS.
These solutions could also leverage AI
technology and machine learning to
optimize inventory, reduce waste,
increase customer satisfaction and
create ‘autonomous’ stores. StrongPoint
strongly believes in the latter, where
cameras are combined with self-learning
software for AI-based image
recognition. There will be more solutions
within automation and cost-saving
technology, including shelf gap detection,
customer traffic analysis, indoor
positioning, wayfinding, theft and loss
prevention, and not least ‘autonomous’
self-service stores open 24/7.
20
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Payment
Solutions
StrongPoint’s CashGuard solution is a
pioneering cash management system
designed to simplify, reduce the cost and
increase safety for retailers. Cash handling is
often an overlooked part of the retail
operation that can have an enormous impact
on the entire business. Cash makes the store
vulnerable to simple mistakes, shrinkage and
theft. Manual cash handling slows down the
customer throughput and decreases the
service level. With CashGuard cash
management, the cash is secured, and the
cash handling process is automated at the
checkout. There are four CashGuard options
for different retail settings: Core, Premium,
Unico and Compact. We are currently
working on developing a fifth version:
CashGuard Connect.
CashGuard Connect
– End-to-End Cash Automation
StrongPoint continues to work with a leading
Iberian grocery retailer on a game changing
cash management solution. A Joint Venture
is established regulating the partnership with
a technology company in Spain.
CashGuard Connect is a groundbreaking
solution developed through a collaborative
effort between the StrongPoint team and
a leading Iberian grocery retailer over the
course of the past three years. We have
undertaken extensive research and
development aimed at creating a solution
tailored to the specific needs of the client
while leveraging the existing infrastructure to
minimize the cost of the solution.
At its core, CashGuard Connect
revolution- izes cash handling by eliminating
the need for any human intervention in the
process in-store.
Through our innovative system, banknotes
are securely deposited into the CashGuard
unit integrated within the checkout counters,
from where they are automatically
transferred to a safe, awaiting pickup by the
retailer’s designated cash-in-transit partner.
The benefits of such a solution are
substantial. Firstly, the elimination of manual
cash handling creates substantial
improvements in operational efficiency.
Secondly, our solution reduces the
frequency of cash pickups, minimizing the
logistical burden associated with
cash-in-transit processes. Moreover, by
automating tasks such as note counting,
sorting, and security checks, CashGuard
Connect means the bank doesn’t have to do
it, reducing costs. Thirdly, by eliminating staff
interaction with cash, the store is safer for its
staff and customers
50
100
150
200
250
2022
REVENUE
165
PRODUCTS
148
MNOK
2023 2022 2023
120
SERVICES
111
2022 2023
300
259
285
19%
RELATIVE
SHARE OF TOTAL
REVENUE
2023
21
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Market Today
Cash management remains an unfinished
task for many countries that still rely on
manual processes. Although the percentage
of manual cash management has decreased
in recent years, cash continues to be widely
used in daily transactions. The cash
collection process is one of the costliest
processes in stores, and our leading cash
management solution, CashGuard, allows
for the automation of all processes while
enhancing customer experience.
Additionally, the solution improves security
not only in supermarkets but also in
pharmacies, tobacco stores, bakeries and
the HoReCa channel. The rise in theft is
becoming an increasingly concerning
factor directly impacting profitability. Thanks
to our solution, cash is under full control at
all times, serving as a deterrent against
potential external theft. The successful
deployment of CashGuard Core has enabled
us to continue generating significant sales,
particularly where integration into cash
desks and bulk coins management is more
convenient.
Future Outlook
In Southern Europe and in several other
geographies, there remains substantial
potential for cash management automation
in the grocery retail sector. We are excited to
announce the upcoming launch of a
groundbreaking cash management
solution developed in collaboration with one
of the major grocery chains in Iberia. The
benefits of this new solution extend beyond
in-store optimization. It allows for a
significant amount of cash to be recycled
in-store, thereby reducing cash preparation
costs for each store and associated logistics.
Furthermore, it assists the retailer in
predicting and reducing the number of
pick-ups by cash-in-transit companies and
the costs associated with cash counting.
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
22
StrongPoint ASA | Annual Report 2023
Checkout Efficiency
Self-Checkout
StrongPoint’s Self-Checkout solutions
improves the customer experience and helps
to reduce costs. StrongPoint offers hardware
and software solutions, which can be used
independently or together. StrongPoint also
uses advanced AI solutions for fraud
prevention, item recognition and age
verification for restricted items.
Vensafe
StrongPoint’s Vensafe automates in-store
sales of restricted and theft-prone products,
such as tobacco, pharmaceuticals and
other high-value items. It allows stores to
sell these products safely and responsibility
in both traditional checkouts and in unstaffed
environments, like self-checkout lanes or
checkout-free stores. Vensafe increases
store productivity, enhances the customer
experience and eliminates shrinkage.
50
100
150
200
2022
REVENUE
116
PRODUCTS
118
MNOK
155
2023 2022 2023
39
SERVICES
44
2022 2023
162
12%
RELATIVE
SHARE OF TOTAL
REVENUE
2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Market Today
In 2023, the retail sector witnessed
significant transformation, particularly in
enhancing checkout efficiency to meet
changing customer preferences. The return of
customers to physical stores, fueled by
inflation and a cost-of-living crisis, has placed
secure checkout solutions at the forefront of
retail innovation. The surge in salaries, rent
and utility costs, as well as a steep increase
in theft and staff attacks, forces retailers to
accelerate security investments in self-service
and adds friction to the shopping journey to
stay profitable. Retailers are facing shrinkage,
loss in sales, and lower customer satisfaction
because of their attempts to fight crime and
are looking for solutions to overcome these
challenges. In addition to theft prevention, we
are seeing a broader trend towards efficient
self-service solutions and leveraged
technology to create a more secure and
frictionless shopping experience.
Future Outlook
As we look towards 2024, the emphasis on
checkout efficiency is expected to
intensify, with technology playing a central
role in shaping the future of retail. Innovations
such as AI-powered checkout systems,
automatic fraud detection and secure sales of
theft- prone items will become prominent. The
barriers posed by the increase of theft and
attacks in stores and on retail staff call for
innovative solutions that reduce friction
without compromising the security and safety
of staff. We will see all segments in grocery
retail to further embrace self-service and
automation solutions to enhance the
customer experience, reduce costs and
friction, thus improving customer service by
offering flexible yet secure checkout options.
Our strategic direction will focus on
harnessing these technological
advancements and security trends to
enhance our checkout solutions, ensuring
that we not only meet but exceed the future
needs of our customers and maintain a
competitive edge in the evolving retail
landscape.
23
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
24
StrongPoint ASA | Annual Report 2023
E-commerce Logistics
Order Picking
StrongPoint’s Order Picking allows retailers to
pick more items in less time, cutting costs and
boosting profitability for grocery e-commerce
providers. The solution can be used in stores
and dark stores as well as in conjunction with
automated fulfillment solutions such as
AutoStore.
AMRs
Coalescent Mobile Robotics’ AMRs can be
placed underneath trolleys commonly used in
retail enabling them to move without human
involvement. The trolley can then move
independently from and to predesignated
locations and can follow an individual store
worker wherever they need to go.
Automated Fulfilment
As a partner of AutoStore, StrongPoint
offers automated micro-fulfilment solutions for
grocery retailers. Combining micro-fulfillment
with StrongPoint’s best in-class Order Picking
solution, all online grocery orders can be
processed at world-class levels of efficiency.
Warehouse Management
As a partner of Blue Yonder, StrongPoint
offers warehouse management system offers
in-depth, real-time visibility into all warehouse
activities, providing real-time data on
inventory, employees, and equipment
performance across all channels. This service
is used to support the automated fulfillment
solutions StrongPoint provides.
In-store Pickup
StrongPoint’s In-Store Pickup solution allows
any store to automate its in-store pickup
operations for fast, seamless, and efficient
service and maximum customer experience.
The system includes two-way customer
communication allowing the customer to alert
the grocery retailer when they are about to
come to pick up their order.
Grocery Lockers
StrongPoint’s Click & Collect Lockers offer a
more convenient way for customers to pick
up online orders. They cut the cost of last mile
deliveries by automating the delivery process
and turning stores into distribution points.
Click & Collect Lockers can be mobile or
stationary and can be set to three temperature
zones: ambient, chilled and frozen.
Drive-Thru
StrongPoint’s Drive-Thru solution allows
grocery retailers to provide a completely
contactless and automated solution for
customers to pickup their groceries at their
store. The system uses AI image recognition,
so the store is automatically alerted the
moment the customer enters the pickup zone.
Home Delivery
As a partner of Gordon’s Delivery, StrongPoint
offers a Home Delivery solution that optimizes
the home delivery of groceries to the
customer. The solution offers support to the
grocery retailer in handling multiple
delivery slots, vehicles and pickup points and
optimizes the driver routes. The system
includes two-way communication allowing the
customer to communicate to the driver any
change of details regarding how or where to
deliver the order and support with retaining
the cold chain throughout the delivery.
20
40
60
80
100
2022
REVENUE
53
PRODUCTS
87
MNOK
2023 2022 2023
41
SERVICES
40
2022 2023
120
94
127
140
9%
RELATIVE
SHARE OF TOTAL
REVENUE
2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
25
StrongPoint ASA | Annual Report 2023
Market Today
The market for e-commerce solutions has
been a lot more choppy and uneven than
we had previously expected and predicted.
Although there has been growth in some
markets, the UK stands out with the biggest
opportunities driven by the fact that it is the
highest penetrated market with over 12%
grocery orders are made online in the
entire country.
We have been focused on that market in
2023 and we saw the fruits of labour with the
winning of a competitive tender for the UK’s
second largest grocery retailer, Sainsbury’s,
to supply them with Order Picking
technology. This was supported by the
strategic investments made in the previous
year in terms of dedicated staff as well as a
focus on upgrading our technological
systems. We continue to focus on the UK as
a key growth market and continued with a
direct sales in our core markets and
leveraging partners in other markets of
strategic interest.
In addition, automation and robotic
solutions in the UK grocery sector,
especially in e-commerce, show great
promise. Advancements in hardware like
robotics, including AMRs and robotic arms,
along with new material handling solutions,
can complement automated fulfillment
technologies.
Future Outlook
We continue to believe our solution
footprint is unrivalled and uniquely positions
us to help retailers at every stage of their
evolution. That we have made a
breakthrough with Sainsbury’s is a testament
to our solutions and their world-class
qualities. We expect this will lead to other
promising sales opportunities in the
e-commerce space as other competitors
notice the impact our solution will be having
on their bottom line and follow-suit. In other
markets, growth and opportunities remain
uneven but we remain confident that Spain
continues to be a key growth market as their
e-commerce offer matures.
Following our successful implementation of
the world’s first three-temperature AutoStore
grid in Norway, we hope to see spillover
effects of our unrivalled expertise in what
is cutting edge automation technology. The
rapid increase in labor costs poses a
significant challenge for retailers, necessi-
tating a strategic shift towards automation to
mitigate the impact on operational expenses.
Similarly, the soaring costs of property and
business rates further strain profit margins,
compelling retailers to seek innovative
solutions that optimize space utilization and
enhance operational efficiency. As margins
dwindle and manual ecommerce operations
risk becoming financially untenable, the
imperative for automation becomes
increasingly clear.
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
26
StrongPoint ASA | Annual Report 2023
Shop fitting involves equipping retail and
service shops with necessary equipment,
fixtures, and fittings. StrongPoint ALS has
specialised in this service and provides
modifications and enhancements within the
physical retail space, addressing both
interior layouts and the external
surroundings of stores. The focus often lies
on the check-out area or the integration of
innovative technological solutions, with a
strong commitment to identifying and
implementing sustainable alternatives for
clients. This includes the complete
refurbishment of the checkout area,
prolonging its lifecycle, decreasing costs and
minimising environment impact. The future
of shop fitting revolves around implementing
and upgrading our clients infrastructure as
the demand for technology increases.
How the products of the future seamlessly
integrate into stores and the interface with
the shopper, means that shop fitting will
remain a valuable service for our clients.
50
100
150
200
250
MNOK
2022
REVENUE
SERVICES
2023 2022 2023
360*
300
283
283
360*
21%
RELATIVE
SHARE OF TOTAL
REVENUE
2023
350
400
*) 2022 revenue based on proforma figures for the full financial year 2022 for comparison purposes.
Actual reported revenues were MNOK 241, as the acquisition was completed June 2022.
Shop Fitting
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
27
StrongPoint ASA | Annual Report 2023
Market Today
In 2023, UK retailers faced significant
challenges marked by reduced spending
across the industry. The year proved to be
demanding as economic uncertainties and
shifting consumer behaviors impacted retail
budgets and purchasing patterns. Despite
these obstacles, retailers persevered,
adapting strategies to navigate the evolving
landscape and optimize resources amidst
constrained budgets.
Retailers in the UK responded to the
cost-of-living crisis by giving back to
customers through significant investment in
price. This proactive measure aimed to
alleviate financial burdens on consumers and
enhance affordability but reduced the level of
spend on refurbishment. Our brand’s
commitment to quality and excellence will
continue to propel us ahead of the
competition. In a dynamic market
environment, our steadfast dedication to
delivering superior products and unparalleled
customer experiences ensures that we
remain at the forefront, setting the standard
for innovation and satisfaction.
Future Outlook
In the UK, the future of the grocery retail shop
fitting looks to be heading for a period of
change and transformation. Standard
refurbishment schemes continue but are
evolving to embrace modern aesthetics and
sustainable materials, catering to
environmentally conscious consumers. The
introduction of new technologies such as
augmented reality displays and smart
shelving systems enhances the shopping
experience, making it more interactive and
convenient for the consumer but adding an
additional level of complexity for the
shop fitter.
Moreover, the changing needs of shoppers
drive innovation in store layout and design,
with a focus on creating welcoming and
experiential environments. Retailers are
integrating spaces for marketing events,
product demonstrations and new services to
engage customers beyond traditional
shopping.
The rise of ecommerce complements brick-
and-mortar stores, leading to hybrid models
where physical stores serve as picking,
distribution and collection hubs for online
grocery orders. The increasing penetration
has led retailers to rethink the way they
design their store, warehouse and external
spaces to ensure an efficient omnichannel
operation and an excellent customer
experience. As such we expect to see
demand for traditional shop fitting services
reach further into the development of
integrated ecommerce solutions such as
collection lockers, order staging areas, van
loading canopies and so on.
Overall, the grocery retail shop fitting
industry in the UK is poised for growth,
fuelled by creativity, technology integration,
and a commitment to meeting the evolving
preferences of shoppers in an
increasingly digital and experiential retail
landscape. StrongPoints ability to offer a full
breadth of shop fitting solutions across
refurbishment, installation, electrical and
technical makes us the one stop shop for all
store infrastructure needs.
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
28
StrongPoint ASA | Annual Report 2023
Other retail technology
Commerce Management System
StrongPoint implements, personalises, and
maintains an enterprise resource
management solution that includes the
company’s trading processes from customer
service units to the central office. StrongPoint
also helps retailers to automate checkout
processes and deliver speedy customer
service with POS software, POS terminals,
fiscal printers, and other related technologies.
Our solution is based on Microsoft
Dynamics 365 Business Central with Retail
Module LS Central. Installing this solution will
increase employee productivity, internal
process efficiency, decision-making speed
and reduce operational costs. StrongPoint
was the first in the Baltic States to introduce
Microsoft Dynamics NAV solution to
retailers. StrongPoint implements, modifies,
and advises on all issues related to
enterprise resource management systems
since 2000. StrongPoint has for over 30
years delivered proprietary POS solutions to
retailers in the Baltics.
Long-term experience and accumulated
expertise enable us to select and model
enterprise resource management and POS
systems that best meet the needs of the
retailer for maximum operational efficiency
and performance.
In 2005 StrongPoint became a golden
Microsoft partner and in 2015 StrongPoint
was named a Diamond LS Retail partner.
StrongPoint has implemented enterprise
resources management systems in more
than 100 companies and maintain more than
10,000 POS solutions in the Baltic.
50
100
150
200
2022
REVENUE
86
PRODUCTS
90
MNOK
171
2023 2022 2023
85
SERVICES
101
2022 2023
191
14%
RELATIVE
SHARE OF TOTAL
REVENUE
2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
29
StrongPoint ASA | Annual Report 2023
Market Today
Today, the retail market for commerce
management solutions is on the verge of
transformation. Initiated in 2023 and still
ongoing, the interest in implementing and
migrating ERP solutions helps retailers
optimize operations, allowing them to utilize
different sales channels: physical and online.
Retailers are increasingly adding various
types of digital tools, measures, and
solutions, which continuously requires the
development of our ERP and POS solutions.
This underscores the importance of
having a technological partner and
professional solutions to keep pace with the
growing competition in the retail segment.
This enables us to challenge ourselves to
provide the latest technologies in commerce
management systems and the most qualified
service to our customers.
Future Outlook
The primary transformation at the forefront is
cloud-based ERP solutions, which
provides retailers with flexibility, accessibility,
and a rapid implementation approach. As a
strategic partner for retailers, we continue
to enhance our competence level to assist
our customers in reaching their goals and
achieving innovation at every step of their
operations.
Point of sale (POS) remains a paramount
topic on almost every retailer’s agenda. The
new generation POS or next-generation
retail platform is a new target for
StrongPoint to introduce to the market.
StrongPoint is working on the next-
generation POS solution, which will provide
a significantly different experience for
retailers with wide flexibility, hardware
independence, and easy maintenance.
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
30
StrongPoint ASA | Annual Report 2023
MARKETS
Key markets
Partners in Europe
1
1) Outside Europe: USA
and South Africa
NORWAY
StrongPoint headquarters
Office: Oslo
+47 934 03 254
Service & support
+47 815 66 220
SWEDEN
Offices: Stockholm, Gothenburg and Grums.
+46 31 706 80 00
Service & support
+46 771 18 18 20
STRONGPOINT HAMARI
Office: Helsinki
+35 020-730 53 01
STRONGPOINT ALS UK
Office: Birmingham
+44 (0) 121 693 0511
Service & support
+44 (0) 121 693 0511
STRONGPOINT ALS IRELAND
Office: Dublin
+353 1 257 3 257
SPAIN
Offices: Madrid, Barcelona and Gijón.
+34 91 847 50 39
Service & support
+34 91 847 50 39
LITHUANIA
Office: Vilnius
+370 8 700 70022
Service & support
+370 8 700 70022
LATVIA
Office: Rīga
+371 8000 19 99
Service & support
+371 8000 19 99
ESTONIA
Office: Tallinn
+372 650 42 00
Service & support
+372 6 504 242
31
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
What do you see as the key trends
facing the grocery retail sector
in Norway?
Increasing costs and a weak currency greatly
affect retailers in Norway. Large retail tech
projects are postponed as grocers have
imposed investment freezes and buy only the
“bare necessities”, and there are few tenders
in the near future. Fortunately, we have a
solid aftermarket with equipment to be
continuously serviced and replaced.
StrongPoint Norway is optimistic that the
market will start to recover around mid-year,
and in the meantime, run campaigns for the
replacement of old equipment as well as
pilots for new technology. There is still a
growing interest in technology that can
mitigate the effects of inflation by increasing
productivity, automation and improving
operational efficiency.
New concepts for self-service are being
adopted by the market. In addition to
self-checkout kiosks (SCO), there are several
maturing solutions within mobile Scan & Go,
Digital employees, Micro-, Unmanned- and
Checkout-free “autonomous” stores. There is
growing concern for self-service as
retailers experience increased costs and
losses caused by errors and theft. It is,
however, possible to reduce losses through
technological security features such as weight
sensors, automatic item recognition and
in-store collection points (Vensafe).
StrongPoint is running several pilots using
AI and computer vision as well as
autonomous stores. We see that the increase
in self-service and security technology also
drives the demand for our other solutions,
including electronic shelf labels, in-store
scales, Vensafe and CashGuard.
The fact that Norway has a high density of
grocery stores may be part of the reason why
we do not experience the same adoption and
growth in e-commerce of groceries as other
countries. We are, however, ready with
market-leading solutions for order picking and
the last mile when the market picks up.
What kind of solutions do you think
grocery retailers are going to be in
most need of in the future?
We expect the in-store shopping and
checkout process to gradually change in the
years to come.
There will be more solutions within
automation and cost-saving technologies.
Solutions where cameras are used together
with self-learning software for AI-based image
recognition to increase customer satisfaction,
loss prevention, waste reduction, and not
least to make the checkout process
frictionless, faster and more secure.
Examples are partner technologies from
Edgify, AiFi, SAI and SandStar which
enhance StrongPoint’s existing products like
Vensafe, SCO and Scales.
Technology will be used to make in-store
shopping more convenient, efficient and
personalized to enhance the customer
experience. An example is in-store robot
“Robbie” from DeDuCo, which gives both
retailer and customer several advantages like
improved store operations, customer
experience, as well as marketing and
communication.
Norway
100
200
300
400
2022
REVENUE
340
270
PRODUCTS
230
MNOK
386
2023 2022 2023
116
SERVICES
110
2022 2023
Gisle Elvebakken
SVP Norway
25%
RELATIVE
SHARE OF TOTAL
REVENUE
2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
32
StrongPoint ASA | Annual Report 2023
What do you see as the key trends
facing the grocery retail sector in
Sweden?
In 2024, the Swedish economy is expected
to continue grappling with post-pandemic
challenges such as stagnant real wages and
reduced purchasing power. These factors
will likely continue to shape consumer
behavior, leading to a preference for
discounters and heightened price
awareness. As a result, the grocery retail
sector may remain under pressure.
However, in the latter half of the year, a
rebound in sales volumes is anticipated,
driven by a decrease in inflation and
interest rates.
Online grocery is expected to return to
moderate growth after two years of declining
sales. This sector will likely see an
increasing focus on profitability and a shift
towards sustainability in e-commerce, with a
focus on the entire delivery chain.
The grocery retail sector is facing
economic challenges due to the need for
significant investments in sustainability,
digitalization, IT renewal and automation.
The increasing cost of capital makes
financing these investments more difficult.
Consequently, it is expected that there will
be a strict selection process for new
projects, with a distinct preference for
investments that improve operational
efficiency and customer experience.
The grocery retail sector has made
significant strides in embracing the circular
economy and sustainability practices. The
pace has slowed down due to economic
challenges but is anticipated to pick up pace
again. Key areas of focus are sustainable
production, aiming to reduce waste and
enhance resource use efficiency.
Sustainable consumption with a focus on the
reuse and recycling of materials, products
and services. Promotion of the circular
economy, encouraging the adoption of
circular business models, fostering
innovation and competitiveness. These
initiatives will continue to shape the future of
the industry.
Given the economic environment and
investment needs, there is a growing trend
towards achieving economies of scale.
Larger grocery retailers might pursue
aggressive merger and acquisition strategies
or form broader partnerships. In contrast,
smaller retailers are likely to seek alternative
scaling strategies, such as bundle
purchasing or joining franchising networks.
Magnus Rosén
SVP Sweden
100
200
300
400
2022
REVENUE
296
225
PRODUCTS
157
MNOK
358
2023 2022 2023
133
SERVICES
138
2022 2023
What kind of solutions do you think
grocery retailers are going to be in
most need of in the future?
The industry is increasingly leaning towards
using data, AI/ML, and automation. This shift
is expected to create more efficient,
precision-based, and agile operating models.
The demand for and economics of labor in
the industry are also changing, with a
potential increase in the automation of tasks
and a need for a workforce that can adapt to
rapidly changing consumer needs.
Innovations such as app-guided shopping
with in-store navigation, virtual and
augmented reality, generative AI for
personalized content, and advanced
tracking and traceability are competing to
revolutionize the grocery shopping
experience. Retailers will need to carefully
consider how to integrate these technologies
to meet consumer demands while
maintaining profitability. The future of
grocery retail in Sweden is increasingly
omnichannel. This shift has been
accelerated by the COVID-19 pandemic,
which pushed consumers towards online
shopping. Retailers will continue to adapt to
this change by offering seamless and flexible
shopping experiences that combine online
and in-store elements. Consumers are
looking for sustainable and smarter shopping
options, and they prefer retailers that can
offer a wide range of local or organic
products, along with initiatives to reduce
plastic packaging and food waste. The
adoption of AI/ML, automation, and robotics
in stores and warehouses will significantly
increase efficiency in an omnichannel
environment. Automated stocking systems,
self-checkout kiosks, unmanned stores,
fraud detection, and robotic assistance for
inventory management will reduce labor
costs, improve customer service, and
operational efficiency.
22%
RELATIVE
SHARE OF TOTAL
REVENUE
2023
Sweden
33
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
What do you see as the key trends
facing the grocery retail sector in
the Baltics and Finland?
Baltics
In the beginning, the year 2023 was active in
most segments of the retail industry.
Economic conditions remain stable,
especially in Lithuania and Latvia, while
Estonia faced some signs of recession.
The grocery retail segment trends showed
stable growth in self-service solutions. The
non-grocery segment is still focused on ERP
and POS solutions. Moreover, autonomous
stores and AI-based solutions (computer
vision, age verification, etc.) continue to be
key technologies under discussion for the
future. The number of Vensafe and ESL
pilots shows that retailers are looking for
optimization in this area as well in the
Baltic region.
Finland
The market, being quite new for
StrongPoint so far, is stable with
technological development in the retail
segment. In 2023, retailers were
interested in the efficiency of physical stores.
This means that solutions like self-
scanning, electronic shelf labels, or voice
communication are of high interest. We
succeeded in implementing a high number of
pharmacies with electronic shelf labels and
maintaining the largest installed base in this
segment. Considering the economic
conditions and inflation level, interest in
optimization will continue through 2024
as well.
What kind of solutions do you think
grocery retailers are going to be in
most need of in the future?
Baltics
The main trends for the new areas will
remain AI-based solutions, autonomous
stores, and the digitalization of operations.
The grocery segment is awaiting the pace of
2024 Q1, which will indicate possible trends
for the rest of the year. As mentioned above,
demand will continue for Vensafe and ESL
products, which have already found a place
in this area as well.
The economic situation seems to be quite
stable with the normalization of inflation. This
gives us a positive outlook going forward
with best-in-class solutions for our
customers in the Baltics.
Finland
The continuation of electronic shelf labels
will accelerate even more in 2024. At the
same time, in line with the significant trend
in self-service solutions, we are beginning to
introduce our checkout efficiency
solutions and competence into the Finnish
retail market. The second quarter of 2024
is the breaking point for the rest of the year,
which we see as potentially positive with an
already matured business and new verticals.
Baltics and Finland
50
100
150
200
2022
REVENUE
105
PRODUCTS
131
MNOK
205
2023 2022 2023
100
SERVICES
125
2022 2023
256
Rimantas Mažulis
SVP Baltics and Finland
255
19%
RELATIVE
SHARE OF TOTAL
REVENUE
2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
20
40
60
80
100
2022
REVENUE
60
PRODUCTS
68
MNOK
2023 2022 2023
17
SERVICES
20
2022 2023
88
77
What do you see as the key trends
facing the grocery retail sector in
Spain?
In 2023, consumers reduced their savings
levels that they had since the pandemic,
mainly due to rising energy and food costs
and a fall in purchasing power. This means
that one of the main concerns for the grocery
sector is lower sales volumes followed by
inflation. The impact of inflation in Spain has
been particularly unfavorable for groceries,
as the severe drought has led to a 20-50%
drop in harvests of local raw materials,
resulting in a fall in retail margins. To cope
with this situation, retailers need to restore
margins by improving management,
efficiency and process optimization to gain
productivity and reduce operating costs in
order to absorb some of the rising costs of
food, wages and energy. Improving stock
availability and accuracy is also becoming
increasingly necessary to avoid losing sales
and improve efficiency when replenishing
products in the store. In essence, removing
everything that does not add value to the
consumer while providing a seamless
customer experience is crucial to keep pace
in today’s competitive environment.
What kind of solutions do you think
grocery retailers are going to be in
most need of in the future?
Following the inflationary backdrop of 2023,
retailers are concerned that rising in-store
labor costs may reach a point at which their
much-reduced margins could be
jeopardized. Therefore, any technological
solution that allows them to reduce labor costs
or not increase personnel costs is key to
ensure their competitiveness. Solutions such
as self-checkout, cash management, robots
that help control stock and make
replenishment more efficient, electronic shelf
labels and solutions that make order
preparation and the last mile of the online
channel more efficient are key tools that allow
them to achieve this objective and a very fast
return on investment. On the other hand, there
is greater consumer sensitivity to price
increases or changes to the point that it calls
into question loyalty to certain brands in both
the physical and online channels. This is why,
once again, solutions such as electronic shelf
labels will allow retailers to stay ahead in their
dynamic pricing strategy to ensure that they
are always at the price level that their
consumers demand, just at the right moment.
Finally, there has been a significant increase
in shrinkage in the food sector and solutions
that improve loss prevention through the
detection of both cash and product theft are
key to curbing and reducing this trend. The
usage of artificial intelligence technology will
be a need going forward for these kinds of
purposes.
Spain
Lorena Gómez
SVP Spain
34
StrongPoint ASA | Annual Report 2022
7%
RELATIVE
SHARE OF TOTAL
REVENUE
2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
35
StrongPoint ASA | Annual Report 2023
What do you see as the key trends
facing the grocery retail sector in
United Kingdom?
I believe there are 3 key trends and an
underlying theme that will be prevalent in
the UK grocery retail sector through 2024.
The first, unsurprisingly, is the continued
focus on cost reduction and enhanced
productivity both in-store and online.
Operating costs are being impacted by a
multitude of market forces and to protect
customers from price increases, retailers need
to find solutions that allow them to be more
productive and remove cost from the supply
chain and operating models.
The second trend is the continued
development of true omni-channel retailing.
Creating a seamless and connected
experience is critical to maximizing revenue,
improving customer experience and driving
brand loyalty.
The third trend is the rise of revenue
generation through media marketing both
digital and in-store. The ability to provide
personalised experiences and weave
marketing opportunities into the customer
journey through the adoption of new
technology is proving to be a lucrative
revenue stream. All of these trends are
underpinned by the emergence of generative
AI, the continued development of Machine
Learning capabilities and how automation is
the key to truly unlocking maximum benefit
across the entire value chain.
What kind of solutions do you think
grocery retailers are going to be in
most need of in the future?
I believe that grocery retailers will be seeking
productivity enhancing solutions that reduce
the reliance on manual labour to complete
nonvalue adding, time consuming, repetitive
tasks. Removing those costs from the
operating model or freeing up resources to
focus on service enhancing initiatives will be
a measure of success. StrongPoint’s in-store
order picking, collection lockers,
replenishment robot, autonomous mobile
robots and electronic shelf edge labels are a
fantastic example of such solutions that not
only have standalone benefit in their own right
but also have a compounded and amplified
benefit when integrated together and used in
synchronicity with each other. I believe that
the first retailers to fully embrace an
integrated, optimized single platform
approach will be the one that wins big in 2024.
UK & Ireland
Alex Eveleigh
SVP UK & Ireland
50
100
150
200
250
MNOK
2022
REVENUE
SERVICES
2023 2022 2023
241
300
284
284
241
21%
RELATIVE
SHARE OF TOTAL
REVENUE
2023
36
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
What do you see as the key trends
facing the grocery retail sector?
In 2023, the grocery retail sector has been
profoundly influenced by the accelerated shift
towards omnichannel shopping experiences,
known as unified commerce, with consumers
demanding a seamless blend of digital and
physical retail. This trend underscores the
importance of convenience, speed and
personalization in the shopping journey.
Additionally, the significance of healthy and
sustainable options has risen to the forefront,
with a growing consumer emphasis on
environmental responsibility. In many markets,
the demand for same-day or even instant
delivery is creating new challenges in all aspects
of online order fulfillment. Personalized
experiences have also gained significance, as
consumers seek tailored shopping experiences
that reflect their preferences and values. Lastly,
the resilience of supply chains has become a
critical focus area, driven by the need for agility
and adaptability in response to market
fluctuations and unexpected challenges.
What kind of solutions do you think
grocery retailers are going to be in
most need of in the future?
As the grocery retail sector evolves,
providing solutions that offer flexibility and
opportunity to scale quickly as e-commerce
penetration increases, while simultaneously
ensuring to meet the expectations of
consumers, presents a significant challenge.
StrongPoint, together with our partners, is
ideally positioned to offer innovative and
integrated solutions tailored to the future needs
of the grocery retail landscape.
Through the partner network, StrongPoint
offers smart Retail Technology solutions that are
pivotal for retailers aiming to enhance their
omnichannel shopping experiences. Our check-
out efficiency solutions simplify the purchasing
process, enabling a more convenient and
efficient experience for customers. Additionally,
our Click & Collect lockers and e-commerce
order fulfillment solutions seamlessly bridge the
gap between online and in-store shopping,
providing the flexibility consumers desire for their
shopping habits. We recognize that in today’s
grocery retail landscape, the necessity for
efficient and secure transaction solutions cannot
be overstated. StrongPoint’s Cash Management
systems and Vensafe dispensers lead the way in
meeting this demand by streamlining operations
and bolstering security. These solutions are
engineered to refine the checkout process and
inventory management, ensuring transactions
are not just faster but also more secure. By
automating cash handling, StrongPoint
minimizes the potential for errors and theft,
thereby enhancing operational efficiency and
building customer trust. Additionally, Vensafe
dispensers offer a unique solution for managing
high-demand and high-value items, ensuring
their availability while reducing the risk of loss.
These technologies are crucial for partners
needing to support retailers aiming to deliver reli-
able, efficient services and secure a competitive
advantage in a market increasingly defined by
consumer demands for convenience and
security.
By leveraging StrongPoint’s suite of solutions,
our partners can support grocery retailers to
effectively navigate the challenges of the future
retail landscape, ensuring that they remain
competitive and continue to meet the evolving
needs of their consumers without compromising
on efficiency or sustainability.
20
40
60
80
100
2022
REVENUE
99
PRODUCTS
76
MNOK
2023 2022 2023
SERVICES
4
2022 2023
80
106
Julius Stulpinas
SVP Technology and Supply Chain
Rest of Europe
7
6%
RELATIVE
SHARE OF TOTAL
REVENUE
2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
37
StrongPoint ASA | Annual Report 2023
SUSTAINABILITY
IN STRONGPOINT
Sustainability at StrongPoint is about making
responsible business decisions that create
value while protecting the environment and
contributing to the good of society.
Sustainability is an integrated part of
StrongPoint’s strategy and the basis for our
long term positioning and profitability. By
reducing our footprint, improving relations with
neighbors and other stakeholders, managing
impacts, increasing resource efficiency, and
developing new markets, StrongPoint will
minimize risk and create new opportunities.
Framework
• UN SDGs
• EU Taxonomy
• Sustainability Reporting
• Transparency act
• Non Financial Reporting Directive
• Equality and Anti Discrimination
• Executive Remuneration
Priorities
• Environment and climate risks
• People and working
environment
• Operational sustainability
initiatives
- Warehouse energy consumption
- Refurbishment of check-outs
- Safeguarding shopworkers
Ambitions
• Carbon neutral
• Net-zero
• Climate neutral
AMBITIONS
FRAMEWORK
PRIORITIES
MATERIALITY
SOCIAL
ENVIRONMENT
GOVERNANCE
SUSTAINABILITY
STRONGPOINT
38
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Double materiality and
stakeholder engagement
In 2021 and 2023 we conducted
comprehensive processes to
gather feedback from our
stakeholders and identify a list of
potentially material important
sustainability topics for
StrongPoint. We will continue this
work in 2024.
StrongPoint has in-depth and
ongoing dialogue with our key
stakeholders on sustainability
impacts and topics throughout the
year. Our key stakeholders include
customers, investors, financers,
employees, unions, national
authorities, partners and suppliers.
The process to update the
materiality assessment follows the
GRI 3 Universal Standard
guidance and updated with the
stakeholder groups and involve
expert functions in StrongPoint that
have insight into our sustainability
commitments and external
stakeholders’ expectations.
Expected of StrongPoint - Key Topics and Concerns
Discussed (Not Listed in Order of Priority) Arena for dialogue Frequency of Engagement
Investors/owners • Ensure an engaging, healthy and safe working environment
for employees to prevent sick leave and high turnover.
• Follow laws and regulations in terms of ethical business
operations, human rights and anti-corruption.
• Continuously work to reduce the environmental footprint of
the products and in own operation.
• Sustainability report
• Quarterly reports/presentations
• Annual reports
• Teams/phone meeting
• Roadshows
Monthly, Quarterly, Annually
(and ongoing basis when relevant)
Customers • Ensure high quality product that are safe for end-user
(e.g., food safety, chemical use).
• Follow laws and regulations in terms of ethical business
operations, human rights and anti-corruption.
• Correct waste management (reduce, reuse, recycle).
• RFIs, documentation/ requisitions
• Visits (during installation)
• Through partnership projects
• Ratings, risk assessment
• Marketing / communications
• Meetings
• Website
• Newsletters
• Customer and project meetings
• Tender responses and presentations
Daily, Weekly, Monthly, Quarterly,
Annually
Suppliers • Contribute to a sustainable industry.
• Work to ensure long lifetime of products.
• Correct waste management (reduce, reuse, recycle).
• Supplier audits
• Quarterly meetings / audits
• Newsletters
• Customer meetings / projects
Daily, Weekly, Monthly, Quarterly,
Annually
Employees • Ensure an engaging, safe and inclusive working environment.
• Focus on employee training and development.
• Follow laws and regulations in terms of ethical business
operations, human rights and anti-corruption.
• Townhall meetings
• Information from management
• AGM
• Website
• Intranet
• Newsletters
• Online trainings
• Information posters / leaflets
• Values implementation process.
• Employee survey
Daily, Weekly, Monthly, Quarterly,
Annually
Government/
civil society
• Follow laws and regulations in terms of ethical business
operations, human rights and anti-corruption.
• Comply with regulations for data privacy (e.g., GDPR).
• Ensure safe products.
• Phone and email communication
• Visits and tours at our facilities
• Conferences and community events
• Participation on advisory boards
• Social media
Monthly, Quarterly, Annually
Frequency depends on type of
government / public authority body
Media • Business development and innovations.
• Status of operations, and effects on local / regional / national
employment
• Transparent reporting.
• Phone and email communication
• Interviews
• Press releases
• Website and social media
Daily, Weekly, Monthly Frequency
depends on type of media, and
editorial focus vs StrongPoint’s key
business activities.
Table: A summary of our stakeholder engagement and the topics and impacts raised by them.
39
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Material changes
StrongPoint’s environmental footprint (direct emissions) is relatively low due
to the nature of our business. After assessing the significance and possible
negative impact, we have found it to be more relevant and aligned with our
stakeholders’ feedback to become more focused on innovation and technical
solutions that reduce energy consumption on our customer and customer-
customers side of the value chain.
Our focus will still be on our three Operational Sustainability Initiatives (OSI).
Our ambition is to drive sustainability in the grocery industry through product
innovation and solution design. The selected focus areas has the potential to
significantly improve either emissions or working conditions. Our three OSIs are:
1. Reduction of warehouse energy consumption
2. Refurbishment and end-of-life treatment of check-out counters
3. Safeguarding shopworkers
Our people, and work environment, are introduced as a separate material topic.
As per the Norwegian Transparency Act this reflects our obligations to map and
manage risks related to human rights and working conditions and the due
diligence StrongPoint performs on suppliers to manage risks related to our
commitments to responsible business conduct.
In 2023 we continue and start formal reporting according to the EU Taxonomy.
StrongPoint will discontinue reporting according to the GRI standard as we are
progressing into reporting according to the Corporate Sustainability Reporting
Directive (CSRD).
Sustainability governance and frameworks
StrongPoint is committed to upholding sustainability, integrity and responsibility
across all aspects of its operations. The Board of Directors, as the highest
governing body, oversees and ensures the effective management of our
sustainability efforts. Sustainability is addressed during Audit Committee
meetings, where discussions revolve around risk assessment, significant
impacts, policy formulation, reporting, and other pertinent matters.
The Executive Vice President of People and Organization, reporting to the
CEO, spearheads the development, implementation, and communication of our
sustainability agenda, while our business units are tasked with its execution.
Each of our locations is responsible for adhering to both local regulations and
corporate standards.
All StrongPoint employees are expected to adhere to our Code of Conduct,
which serves as the cornerstone of our commitment to maintaining the utmost
integrity and avoiding involvement in unethical or illegal activities. We prioritize
environmental conservation by adopting more eco-friendly technologies in our
operations and for our clients.
We acknowledge our obligation to make positive contributions to the societies
in which we operate and strive to ensure that they benefit from our presence.
Sustainability is seamlessly integrated into StrongPoint’s overarching enterprise
strategy, guiding decisions made throughout our value chain. We understand
that our conduct as an employer and business entity profoundly impacts our
ability to generate long-term value for both society and our shareholders.
FRAMEWORKS:
StrongPoint act and report on sustainability according to national and
international standards and legal requirements. The most important are:
I. UN Sustainability Development Goals and membership in UN Global Compact
II. EU taxonomy for sustainable economic activities
III. Sustainability reporting
IV. EU regulation on responsible business conduct and The Norwegian Transparency Act
V. The Norwegian accounting act §3-3 and compliance with EUs Non Financial
Reporting Directive
VI. Statement on equality and non-discrimination (the Norwegian Equality and
Anti-Discrimination Act)
VII. EU regulation on executive remuneration
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Since 2021, StrongPoint has
been a signatory to the UN
Global Compact, the world’s
largest corporate
sustainability initiative, and is
committed to its 10 principles.
We respect and adhere to the
precautionary principle
(Principle 7). This report is our
annual Communication
on Progress.
40
StrongPoint ASA | Annual Report 2023
I. UN Sustainable Development Goals and UN Global Compact
StrongPoint supports the UN Sustainable Development Goals (SDGs), a collection of 17
global goals set by the United Nations General Assembly in 2015. Based on our materiality
assessment, we have prioritized eight (8) SDGs where we believe we can have the most
impact and where we seek to contribute positively.
The UN Sustainable Development Goals (SDGs) embrace a universal approach and
define the global agenda for sustainable development. The goals explicitly call on
businesses to use creativity and innovation to address development challenges and
recognize the need for governments to encourage sustainability reporting. StrongPoint
uses the SDGs to understand the context of our impact on sustainable development.
Please refer to the Appendices for an overview of StrongPoint’s impact on the 17
development goals.
SDG 2, 9, 11 AND 12:
PRODUCT
INNOVATION, QUALITY
AND SAFETY IN THE
FOOD CHAIN
Ensuring safe and fresh
groceries. With innovative
labelling and minimal wastage
of food. Develop and offer new
technical solutions to the
market which are more
environmentally sound,
simplifying and improving the
way retailers and communities
do business.
SDG 5 AND 8:
WORKING
ENVIRONMENT
Ensuring a healthy, fair
workplace that creates good
opportunities for all. Protecting
labor rights for all workers.
SDG 13:
ENVIRONMENT
Promoting a more circular
economy and working with
suppliers on joint strategies to
reduce our CO2 footprint.
SDG 16:
GOVERNANCE
Setting and enforcing
appropriate rules of behavior
for employees and suppliers,
along with reporting
mechanism.
41
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
IDENTIFICATION OF
ELIGIBLE ACTIVITIES
SUBSTANTIAL
CONTRIBUTION
DNSH
COMPLIANCE WITH
MINIMUM
SAFEGUARDS
KPIs
II. Statement on EU taxonomy for sustainable
economic activities
The taxonomy is a classification system that specifies criteria for which activities
can be considered sustainable. It is an integral part of the EU’s action plan to
turn capital toward a more sustainable economy. It represents an important step
in becoming carbon neutral by 2050.
The taxonomy has been adopted in Norwegian legislation through the Act on
the publication of sustainability information in the financial sector, which entered
into force on 1 January 2023.
In the following section, we, as a non-financial parent undertaking, present the
share of our group turnover, capital expenditure (Capex), and operating
expenditure (Opex) for the reporting period 2023, which are associated with
Taxonomy-eligible economic activities.
List defined in
delegated acts
mainly according to European
NACE nomenclature
Criteria for achieving at
least one of the
environmental objectives
Do not cause significant
harm to any of the other 5
objectives
Human rights &principles
and fundamental rights
at work
1 2 3 4 5
Illustration of Taxonomy requirements and qualifiers.
42
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Our activities - eligibility
Our economic activities as a technology group are Taxonomy-non-eligible.
We have examined all Taxonomy-eligible economic activities listed in the
Climate Delegated Act based on our activities as a retail technology company.
After a thorough review (using the NACE codes, technical screening criteria,
and Taxonomy compass) involving relevant Business units and functions, we
concluded that our economic activities are not covered by the Climate
Delegated Act, or Do No Significant Harm (‘DNSH’), and consequently are
Taxonomy-noneligible.
Activities within the value chain of our products that are not revenue-
generating, but that result in assets or processes that are essential for our
revenue-generating activities, are not reported as Taxonomy-eligible economic
activities on their own. This includes, in particular, research and development,
the rent/acquisition/construction of new buildings (for our production sites), and
other investment-oriented activities such as expenditure for our fleet and data
center capacities.
Additionally, the transport of our products to our customers and partners is not
reported as a Taxonomy-eligible activity, and it is not included in our turnover
KPI, because we are not generating external turnover on a standalone basis
with this activity. However, we do disclose Capex and Opex relating to the
purchase of output from Taxonomy-eligible economic activities and individual
measures to improve energy efficiency listed in the Climate Delegated Act.
We foresee that we, in the future, and to be further assessed in 2024-2025,
might report on how the grocery retail industry impact positively on food waste,
and changes in traffic patterns in heavily populated city areas. We also see that
we may contribute to energy-efficient building automation and control systems
for non-residential buildings (warehouses).
Taxonomy
activity number Activity Relevance
7.4 Installation, maintenance and repair of
charging stations for electric vehicles in
buildings (and parking spaces attached to
buildings).
A few number of service
installations of charging stations done at
StrongPoint ALS.
8.1 Data processing, hosting and related
activities.
Data Center hosting done by 3
rd
party. Only
non-eligible processing practice.
8.2 Computer programming, consultancy and
related activities.
Does not substantially reduce the most
important physical climate risks that are
material to that activity, and is not based
on a robust climate risk and vulnerability
assessment.
9.3 Professional services related to energy
performance of buildings.
Provided as part of AutoStore frozen.
43
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
* Concerning our vehicle fleet, we considered all leased vehicles as Taxonomy-eligible.
* This voluntary disclosure is based on a preliminary assessment of the technical screening criteria.
Our assessment might change in the future. We provide this information for transparency purposes only.
Taxonomy Opex and Capex KPI reporting:
Based on the non-significant impact and size of the expenditures there has not
been set any specific KPIs on top of what StrongPoint has as general
Sustainability KPIs (as described in annex on page 61-64).
Compliance with Taxonomy Minimum Safeguards:
Compliance with the Minimum Safeguards is determined by assessing
performance criteria against four core topics:
Individually Taxonomy-eligible Capex and Opex
Since our main economic activities as a retail technology company are not
covered by the Climate Delegated Act, the share of Taxonomy-eligible economic
activities in our total turnover is 0%, and consequently the related capital and
operating expenditure are also 0%.
Only “category c” Capex and Opex can therefore qualify as Taxonomy-
eligible, i.e., Capex/Opex related to the purchase of output from Taxonomy-
eligible economic activities and individual measures enabling the target activities
(our non-eligible activities) to become low-carbon or to lead to greenhouse
gas reductions.
These individual measures correspond to economic activities listed in the
delegated acts supplementing the Taxonomy Regulation (as of today, the
Climate Delegated Act).
We have identified the following purchased outputs and individual measures
that correspond to eligible economic activities and, thus, result in Taxonomy-
eligible Capex/Opex:
Total (MNOK)
Proportion of
Taxonomy eligible
economic activities
(in %)
Proportion of
Taxonomy-
noneligible economic
activities (in %)
Turnover 1,342 0% 100%
Capital expenditure (Capex) 41 1% 99%
Operating expenditure (Opex) 165 1% 99%
Considered non-compliant if one of the two criteria apply: StrongPoint reporting
Human Rights 1. The company has not established an adequate human rights due diligence (HRDD) process as outlined in the UN Guiding
Principles (UNGPs) and OECD Guidelines for Multinational Enterprises in alignment with the International Bill of Human Rights
2. There are signals that the company did not dequately implement human rights due diligence and/or did abuse.
These are:
a. The company has been finally found in breach of labour law or human rights
b. OECD or Business and Human Rights Resource Centre (BHRRC) indicators signal that the company does not engage
with stakeholders.
HRDD is described in CoC and implemented as part of the
Transparency act process. StrongPoint has not been accused or
found in breach of labour law or No indicators signal has ever been
issued.
Corruption 1. The company has no anti-corruption processes in place
2. The company or its senior management, including the senior management of its subsidiaries, has been finally convicted
in court of corruption.
Anti corruption process is described in our policies. The company
or any of its senior management has never been convicted of
corruption.
Taxation 1. The company does not treat tax governance and compliance as important elements of oversight, and there are no adequate
tax risk management strategies and processes in place.
2. The company or its subsidiaries have been finally found to have violated tax laws.
StrongPoint follows national and international standards on
taxation. The company and subsidiaries has never been found guilty
of having violating tax laws.
Fair Competition 1. The company does not promote employee awareness of the importance of compliance with all applicable competition
laws and regulations.
2. The company or its senior management, including the senior management of its subsidiaries, has been finally convicted
of violating competition laws.
StrongPoint accepts and promotes the principles of fair competition.
The company or any of its senior management has never been
convicted of violating competition laws.
Table: Taxonomy Minimum Safeguards
44
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
RAW
MATERIALS
MANUFACTURING PACKAGING DISTRIBUTION
CUSTOMER
(
B2B
)
III. Sustainability reporting
Scope
This chapter summarizes StrongPoint’s sustainability reporting, and is in
accordance with the GRI standards. It presents StrongPoint’s management of
and performance on material environmental and social issues.
The reporting period is 1st January to 31st December 2023. The report also
adheres to the Oslo Stock Exchange’s Euronext Guidelines. StrongPoint’s
sustainability report has been reviewed and approved by the Board of Directors
together with the annual report. The claims and data in this report has not been
audited by a third party.
For information about this sustainability report and its content please contact
StrongPoint and CEO Jakob Tveraabak or SVP People and Organisation,
Knut Olav Nyhus Olsen. Both their contact details can be found on the
StrongPoint website.
Our materiality assessment is presented above on page 39, and the
background facts and figures about the company can be found on page 3-36 of
this report. Our corporate governance model is presented on page 73-77.
This report covers all locations and subsidiaries of StrongPoint ASA.
StrongPoint is headquartered in Oslo, Norway, with offices in ten countries
(Norway, Sweden, Finland, the Baltics, Spain, UK, Ireland and Bulgaria).
Economic impact and tax information
StrongPoint’s economic impact is covered in the company’s annual report.
Payroll and social security expenses is covered in Note 9 of StrongPoint’s
annual report 2023. Tax information can be found in Note 26 in the
annual report.
Value chain and markets served
StrongPoint serves the retail and e-commerce sector. The company produces a
wide range of services to different lines of business including food and
beverage, beauty and health, sports and the manufacturing industry.
StrongPoint’s supply chain starts with the sourcing of materials and extends to
the distribution of StrongPoint’s products mainly to customers throughout
Europe. StrongPoint’s key markets are Norway, Sweden, the Baltics, Spain, UK,
South-Africa, Italy and US.
Corporate governance
Good corporate governance is vital to the success of StrongPoint and as a stock
listed company, StrongPoint has the responsibility to follow all relevant
legislation, regulations and standards. In 2023, the Board of Directors (the
Board) has reviewed and updated the company’s corporate governance
practice, which is in line with the Accounting Act, section 3-3b and the
Norwegian Code of Practice for Corporate Governance (NUES
recommendations), except where deviations are noted.
StrongPoint’s corporate governance principles are determined by the Board
and are set forth in the company’s management documents. The Board
annually adopts a plan for its work, emphasising goals, strategies, and
implementation, including the company’s ESG approach. Sustainability is an
integrated part of StrongPoint’s core business and Executive Management are
responsible for the follow-up of the company’s sustainability efforts on a day-to-
day basis. StrongPoint’s sustainability approach is also covered in the
company’s Code of Conduct.
More information about the company’s corporate governance strategy, can be
found at StrongPoint’s website. (https://www.strongpoint.com/investor/
corporate-governance/).
PRODUCT END
OF LIFE
Figure: StrongPoint’s supply chain illustrated
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
45
StrongPoint ASA | Annual Report 2022
ESG priorities
StrongPoint’s materiality assessment guides the company’s ESG priorities.
Setting priorities is at the heart of building a better future. StrongPoint’s
materiality assessment helps identify, prioritise, and validate our most significant
sustainability impacts, risks, and opportunities.
ESG factors are at StrongPoint treated with equal importance, given the
fundamental belief that smaller actions also contribute to the greater good and
drive society towards a more sustainable future.
StrongPoint has the following ESG priority topics:
a) Environment and climate risks
b) People and working environment
c) Operational sustainability initiatives
- Reduction of warehouse energy consumption
- Refurbishment and end-of-life treatment of checkout counters
- Safeguarding shopworkers
Environment
and climate
People and
working environment
Operational sustainability
initiatives
46
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Material topic 1
Environment and climate risks
StrongPoint’s business activities are directly and indirectly affected by and can
also affect the natural environment and climate. The need for technological
solutions that lower the company’s own as well as it’s stakeholders’
environmental footprint represent a business opportunity for StrongPoint but
also a challenge. The company’s ambition is to reduce direct and indirect
negative influences of its business activities on the external environment and
continuously seek new ways to minimise negative environmental impact.
StrongPoint’s direct and indirect environmental impacts relate to the
production, shipment and transportation of products, employee business
travel, waste management and the end-of-life treatment of products.
StrongPoint’s most important indirect environmental impacts in the value chain
come from transportation and the end-of-life treatment for some of StrongPoint’s
products. Combustion of fossil fuels from company vehicles and on-site
combustion are the second largest source of emissions.
StrongPoint should at all times act responsibly and adhere to relevant laws
and standards relating to the environment. The company will work
systematically to ensure that the products StrongPoint manufacture or resell are
made by leading suppliers with a clear policy for sustainability in their own
organisation and supply chain.
Environmental criteria are always considered when selecting partners.
StrongPoint has included environmental accountability in the company’s SLA/
supplier Code of Conduct to reduce the indirect carbon emissions caused
by suppliers.
Net-zero ambition
StrongPoint has a net-zero ambition and believes selected solutions from
StrongPoint play a role in reducing global greenhouse gas (GHG) emissions.
StrongPoint’s ambition is to:
• reduce the climate impact from our value chain and become a net-zero
company in 2050 or earlier,
• deliver net-zero products, and
• use our industrial competence to enable the transition to a net-zero society
especially in the retail industry sector.
Our net-zero ambitions are based on a successful transition to a 1.5 degree
economy, in line with climate science and the Paris agreement.
StrongPoint’s climate strategy is an integral part of our overall business
strategy, aiming at driving improvements and development within the company.
Impact on the climate strategy is also a criterion for all significant investment
decisions. The strategy includes reducing the climate impact of our operations
as well as taking advantage of business opportunities by enabling our
customers and society to do the same.
Science Based Targets
To set goals that are in line with our net-zero ambition
and commitments StrongPoint has in 2023 joined the
Science Based Targets Organization and We Mean
Business Coalition. We will according to the protocol
set and submit for official validation our near term and
Net-Zero commitments at the latest before
November 2025.
Climate emissions (Greenhouse Gas Protocol)
GHG emissions are calculated according to the GHG protocol published by the
World Business Council for Sustainable Development (WBCSD) and World
Resources Institute. Scope 1 emissions are calculated using emission factors
for fuel combustion from DEFRA. Scope 2 emissions are calculated using
market-based emission factors from the RE-DISS Project, assuming a
European residual mix.
Our emissions have increased from 2022 to 2023 (+1344 t CO2 eq.) We have
in 2023 added StrongPoint Finland. The StrongPoint ALS UK operations are
more emission-intensive than other StrongPoint operations when it comes to
waste (wood, metals, and mixed industrial waste), 3rd party road transportation,
and warehouse facility heating. StrongPoint’s activities in this area have in the
recent years been focusing on reducing the carbon footprint in the company’s
own operations (scope 1 and 2). Going forward we will focus more on
supporting our customers on their climate footprint (scope 3). To reduce
emissions across the whole value chain requires close collaboration with
partners, suppliers and customers to minimise the impact of the company’s
products on the environment. More about this topic can be found in the chapter
Operational Sustainability Initiatives (OSI) on page 51-53.
2023 2022.
Scope 1 – Direct emissions (on-site) 1 241 1 261
Scope 2 – Indirect emissions (energy) 186 150
Scope 3 – Indirect emissions (other organizations) 5 309 3 981
Total GHG footprint 6 735 5 392
Table: Total GHG footprint
47
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Climate change risks
In order to understand and mitigate the risks for our operations and potential
consequences related to climate change, we have performed a climate risk
assessments, evaluating physical and transition risks. We have looked at
weather patterns and their impact on our facilities based on climate models and
scenarios from the Intergovernmental Panel on Climate Change (IPCC).
We assess the specific impact that climate change could have on our
business to be relatively small.
Our office locations and operational way-of-work does not imply acute physical
risks (e.g., physical assets, insurance liabilities) or chronic physical risk (e.g.,
resource availability, including labour).
Business-related transition risks that a societal and economic shift to a
decarbonized world would bring (such as changes in demand, the impact on
energy prices, building renovation requirements, or potential competitive
impacts on logistics chains) is likely to happen, but in an extent and comparable
to what competitors and the society in general will have to face.
We foresee some general transition risk to occur. Such as policy and legal risk
(e.g., compliance costs, CO2 emission tax).
We do not expect market and economic risk impacts (e.g., company valuation,
asset impairment, credit rating) or any negative reputation risk (e.g.,
brand value).
No technology risk (e.g., write-offs for old systems displaced by new
technologies) has been accounted.
We anticipate a growing market opportunity related to our energy efficient
temperature-controlled warehouse and locker solutions with higher energy
prices and higher temperatures.
Accounting assessment and exposure:
StrongPoint has no significant climate exposure in any part of its business
operations. At the time of the report, there were no climate-related conditions of
a size that are relevant for estimation uncertainty or write-downs. There are no
asset retirement obligations.
GRADUAL IMPACTSEXTREME EVENTS
HAZARDS
DETAILS
Short term
1-3 years
Middle
15 years
Long term
15-50 years
Climate Extremes & Heat Load-sharing of electricity. Changing seasonality of demand.
Wildfire & Complications Critical infrastructure failure.
Air Quality & Pollution Policy regulations of cost and impact. Travel restrictions.
Water Availability Groundwater availability in large cities.
Climate Extremes & Heat
Examples of heat waves in Spain that already impacts on the productivity.
Rolling outages and interruption of services.
Wildfire & Complications Transmission lines failure. Ash problems.
Air Quality & Pollution Public safety and human health - Madrid and Barcelona office.
Water Availability Extreme events unlikely, could amplify other events (fire risk and air quality).
Minimal or isolated risk
Moderate or amplified risk
Major and amplified risk
Table: Climate assessments
48
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Material topic 2
People and working environment
Business ethics
Working with employees, customers and suppliers in more than 20 different
countries, StrongPoint is directly and indirectly exposed to ethical risks through-
out the company’s value chain. The company has a direct and indirect
responsibility to make sure that it maintains a proactive approach to ethics,
including screening suppliers or assessing operations for risks related to
corruption, provide awareness training for employees, implement good
governance mechanisms and a system for employees to raise concerns and
report irregularities. Responsible business conduct is crucial to earn the trust of
stakeholders and the company is dedicated to ensuring ethical business
practices throughout its operations and value chain.
For StrongPoint this means respecting recognised international human and
labour rights, such as the Human Rights Act and OECD Guidelines for
multinational enterprises and respecting all national laws and regulations in the
countries where the company is present, including the Norwegian Companies
Act, the Norwegian Penal Code and the Norwegian Code of Practice for listed
companies (NUES). In 2020, StrongPoint became a UN Global Compact
Signatory. The company’s ethical guidelines are outlined in the Code of
Conduct, which can be found in full on StrongPoint’s website. The StrongPoint
Code of Conduct is the overarching document describing the standards and ex-
pectations regarding business ethics for all who work for StrongPoint, its
subsidiaries and entities under the company’s control. The Code of Conduct
clearly states StrongPoint’s expectations for personal conduct and business
practice, and covers matters such as information security, policies in relation to
anti-corruption and how to deal with conflicts of interest. The Code of Conduct
applies to all StrongPoint employees as well as the Board of Directors.
Executive Management are responsible for the implementation and follow-up of
the principles in the Code of Conduct and signing the Code of Conduct is a part
of the onboarding process for new employees. Supervisors are responsible for
both promoting and monitoring compliance with the Code of Conduct within their
respective area of responsibility. In 2022 StrongPoint finalized the process to
define the Why (purpose), What (strategy) and How (behaviours)
of StrongPoint.
A strong company culture and a continued focus on business ethics is a
prerequisite for risk management and a strong business performance. Risk is
initially assessed at the business unit side then discussed at the board level to
mitigate any risks flagged. StrongPoint makes a quarterly risk assessment for all
StrongPoint’s operations with the aim to identify, evaluate and manage risks.
Human rights
StrongPoint recognizes that businesses have a responsibility to respect,
support and promote human rights. As an employer, owner and purchaser, an
important way to respect human rights is to secure decent working conditions in
our organization, in minority-owned companies and with our suppliers.
We do not tolerate any form of harassment or discrimination, including but not
limited to gender, race, colour, religion, political views, union affiliation, ethnic
background, disability, sexual orientation or marital status. Furthermore, we do
not tolerate any form of forced or compulsory labour, human trafficking or child
labour abuse. We support the principles of freedom of association and collective
bargaining. StrongPoint supports the principles underlying the Universal
Declaration of Human Rights, the International Covenant on Economic, Social
and Cultural Rights, and the International Covenant on Civil and Political Rights,
the UN Global Compact and ILO’s eight core conventions, and we expect our
suppliers to do the same.
StrongPoint has identified the key risk of human rights breaches to be related
to having third-party suppliers in China. StrongPoint has during 2023 reduced
our exposure as importer of goods from China. In 2023 there has been no
indication of serious violations to the StrongPoint Code of Conduct.
StrongPoint’s human rights management is based on the OECD Due Diligence
Guidance for Responsible Business Conduct.
Anti-corruption
StrongPoint has a zero tolerance for corruption. This includes all directors and
employees of the Group and companies and persons acting on behalf of the
Group. Donations, sponsorships and irregular gifts need approval according to
the ‘grandfather principle’. Also, as a stock listed company, StrongPoint has to
abide by strict regulations on conflict of interest, which is regulated in
employee contracts. Employees receive awareness training as and when
appropriate according to the business unit in which they work.
49
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Whistleblowing and reporting of potential misconduct
If an employee or external party comes across a possible breach of laws,
regulations or StrongPoint’s Code of Conduct, or any other possible unethical
business practice, this should be reported either in person or through the
company’s whistleblowing program. This program was updated and aligned with
EU regulations in 2023. Concerns can also be raised by reporting to an
immediate superior, directly to anyone in the management team or directly to
the Audit Committee at StrongPoint. A message of concern cannot and will not
be used against the reporting employee in any way.
Examples of issues that should be reported includes:
• Breach of the StrongPoint Code of Conduct
• Breach of local labour laws, discrimination, harassment, or conditions that
impose a threat to the health and safety for employees, customers, partners
or other stakeholders
• Environmental crime
• Financial crime, such as fraud, corruption or theft
• Activities that might damage property or infrastructure
StrongPoint has not taken part in any legal proceedings related to business
ethics in 2023, nor has there been any confirmed cases of corruption. In 2023
there has been reported two cases of misconduct. One related to threats and
bullying, where the suspected Director now has left the company, and another
case still under investigation related to fraudulent behaviour without financial
impact.
In our monthly employee survey, we ask all employees the following question:
“If I experienced serious misconduct at work, I’m confident StrongPoint would
take action to rectify the situation”. The feedback score on this question is 2
points above the external benchmark (eNPS of 47/8.5 average)
Working environment
StrongPoint will conduct its business in a manner designed to protect the
interests of its employees including their health and safety. StrongPoint abides
by all local laws and regulations in the countries where the company operates.
The overall responsibility of employment, including anti-discrimination and
equality process lies with the line manager, and is overlooked by HR, with input
from employee representatives, and reviewed by the Board of Directors.
StrongPoint aims to provide a workplace with a good working environment. The
Group is implementing measures to promote the employees’ professional
development, prevent illness and accidents, and improve the overall work
environment.
Average employee turnover in 2023 was 8.5%, a reduction from 12.7% in
2022. It reflects the geopolitical and financial uncertainty in many of the
European countries we operate in. All employees in the Group shall have
standardised employment contracts and are free to organise themselves in la-
bour unions and organisations promoting employee welfare. In 2023,
StrongPoint has continued the use of Employee Engagement Tool Peakon. The
tool allows us to measure the employee experience for all employees and
managers in StrongPoint. They survey is run every two months where all
employees record their feedback on 56 questions that cover 15 dimensions
of their employment. The employee Net Promoter Score in Peakon show very
good results when benchmarked against other companies (the list of indicators
are based on loyalty and satisfaction). At the end of 2023 StrongPoint score was
34 (36 in 2022). This is 8 base points better than the benchmark companies,
and in the top 25% of technology companies. Approximately 53% of all
employees score the company at 9 or 10 on a scale from 1 to 10.
Employee health and safety
Ensuring a safe and secure working environment is StrongPoint’s number one
priority. The company has implemented an occupational health and safety
management system that builds upon the Norwegian Working Environment Act
and ISO 45001 – Occupational Health and Safety, especially in regard to
Leadership and Worker Participation, Corporate Risk Assessment, General
Performance Evaluation and Supply Chain Engagement. All employees are
required to follow the company’s health and safety guidelines as well as
applicable laws to prevent harm to people and the surrounding environment.
StrongPoint encourages its employees to participate in activities related to
health and wellbeing. Working conditions within the organisation shall meet or
exceed legal requirements in every country in which StrongPoint operates and
the company shall comply with the conventions of the UN Global Compact and
the International Labour Organization.
Hazards are identified and monitored to prevent accidents and occupational
illness and workplace guidelines are monitored to ensure a healthy, safe
environment.
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
50
StrongPoint ASA | Annual Report 2022
The company’s ambition is to have zero injuries or incidents. However, it is
crucial that the company monitor potential breaches and health and safety
incidents that occur at StrongPoint sites in order to implement preventive
measures. Employees are encouraged to report health and safety breaches and
any work-related incidents that happen on StrongPoint’s sites to the nearest line
manager and he/she is responsible for the investigation. No employees were
injured at work and there were no major occupational accidents and no
work-related fatalities in 2023. Total sick leave in the company was at 2.5% in
2023, compared to 1.6% the previous year.
The company provides a range of healthy lunch choices for its employees in
its largest offices. All employees, except employees in StrongPoint ALS, have
access to health insurance, and in most business units, StrongPoint subsidizes
the cost of physical exercise. The company encourages participation in athletics
through StrongPoint sponsored fitness membership program.
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
51
StrongPoint ASA | Annual Report 2022
Material topic 3
Operational sustainability initiatives (OSI)
StrongPoint has set an ambition to drive sustainability in the grocery industry
through our product innovation and solution design. We have chosen to focus
on three areas where we know the positive impact can become significant on
either emissions or humans.
A. Reduction of warehouse energy consumption
B. Refurbishment and end-of-life treatment of check-out counters
C. Safeguarding shopworkers.
Operational sustainability initiative A:
Reduction of warehouse energy consumption
5-10% of all sold groceries are handled in a chilled or frozen environment. How
a retail grocery business transports and stores the products dramatically
impacts food quality and related food waste. Keeping an efficient cold chain is
essential both in terms of energy consumption and costs. Historically companies
have implemented energy management programs targeting energy efficiency
savings of 5% to 20% on energy bills. With such measures, the industry has
lowered warehoses’ general energy consumption benchmark by 15% - 30%*
over the past two decades. (*dependent on the size of the warehouse).
StrongPoint believes we can improve this significantly and achieve
much higher savings by introducing our AutoStore micro fulfillment
warehouse solutions.
By reducing the needed space required for storage and retrieval operations,
organizations can construct smaller, more energy-efficient buildings, shrinking
the construction footprint by up to ¼. A reduced volume requires less energy to
cool down, and the cube storage model also has much less circulation and
temperature loss than standard cold storage rooms. The StrongPoint solution
needs no doors, trucks, lights, and workers inside to be operated. Saving
money and the environment.
According to research (source: coldchainfederation.org.uk), a modern and
well-maintained cold store of 500,000 m3 would have a specific energy
consumption (SEC) of approximately 5kWh/m3/yr. This would be equivalent to
more than 500,000 kg CO2e per year. A possible reduction of 50% in emissions
with our solutions would be substantial for this operation.
Progress
In 2023 StrongPoint have successfully managed to build the first AutoStore
facility with frozen groceries storage capabilities, and it is ready to be handed
over to the customer and put in production. The projected energy savings have
been met in the test phase. A broader commercial launch for other customers is
as planned for 2024.
With a more condensed cube storage model and
introducing the first robots that can handle frozen
groceries in a warehouse cube grid, we can
reduce the energy consumption in refrigerated
warehouses by more than 50%.
COMPANY TARGET:
2023 - introduce the concept to the markets in Norway, Sweden, and UK.
2023 - build and perform proof of concept in one facility.
2024 - roll-out of a number of facilities (non-disclosed) with a consistent
reduction of minimum 50% CO2 eq.
52
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
COMPANY TARGET:
2023 - introduce the concept to selected grocery chains in Norway and Sweden.
2024 - build up internal competence in new markets and roll out projects at a number of
facilities (non-disclosed).
Operational sustainability initiative B:
Refurbishment and end-of-life treatment of checkout counters
In Europe, there are an estimated 78,000 grocery hyper and super-markets.
They are all set up with multiple checkout counters serving millions of
customers daily. The wear and tear on the equipment (i.e., conveyor belts,
structures, painting, electronics, and dividers) are lasting and lead to a need
for replacement.
Historically the checkout counters have been replaced by new ones, leaving
the old as waste. Our estimates show that a medium-sized check-out counter
has an LCA (Life Cycle Assessment) carbon footprint that could be reduced by
more than 70% with a more sustainable practice.
StrongPoint ALS has specialized in the recycling of counters. We believe this
could also be done in markets other than UK/ROI.
Having comprehensive management of existing assets allows grocers to
identify opportunities to extend the lifespan of the check-out counters through
deep cleaning, sanitisation, repairing, re-painting, and upgrading hardware.
Returned assets can be refurbished or upgraded and re-allocated to another
site to supplement the existing assets, or as a like-for-like replacement. This will
lessen the environmental impact by reducing waste sent to landfills and
removing the need to purchase from new.
However, all things have a finite lifespan. Anything that reaches the end of life
will be harvested for parts for maintenance purposes, and the remainder will be
disposed of in a controlled manner, in line with our environmental policies
and accreditations.
Progress
In 2023 StrongPoint has successfully refurbished more than 3,000 checkouts
in the UK and Ireland. Many of the checkouts are well over 15 years old and
have been reworked several times. One large retailer in the UK has gone over 8
years without purchasing a single new checkout.
The concept has been showcased in Norway and Sweden and we are now
undergoing a proof-of-concept with one of the leading retailers of plants and
accessories in the Nordics.Our ambition is to have all products and processes
used to refurbish a checkout sourced locally in the Nordics, resulting in a much
lower environmental impact compared to buying a new product, which is often
imported from Asia.
We all should reuse,
rework, refurbish, and
recycle more!
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
53
StrongPoint ASA | Annual Report 2022
Operational sustainability initiative C:
Safeguarding shopworkers
Shopworkers are being attacked, threatened, and even killed while on duty in
convenience stores. Armed robberies cause untold damage. Yet they’re
occurring with worrying regularity.
Sainsbury’s, one of the leading grocery chains in the UK, alone experienced
4,500 violent incidents involving a weapon in a year, it recently told the UK
Home Affairs Committee.
Historically, armed robbers used to target high-end banks. But since they have
securitised to such an extent that, for your average robber, it’s just too much
hard work, armed robbers have now chosen “softer targets” with less security,
such as convenience stores. Amateur criminals can now commit violent
incidents as often as professional gangs. The average armed robber now is a
lone male in his 30s using a knife, often committing crimes to fund
substance abuse.
StrongPoint has, since the introduction of CashGuard in 2003, been fighting
crimes by safeguarding the money and the workers.
We are now introducing new solutions that not only safeguard the money at
the counter till, but also increase the security from the front-end counter to the
back-end storage of the store, and when handing it over to the Cash-in-Transit
(CIT) collector.
You never, ever get over something like that.
The store was put back together, the stock was
replaced. But these people will never have the
same feeling of coming to work in the morning,
not knowing whether that knock on the door is
the bread man or someone wanting to come and
hurt them.
UK store owner
54
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
IV. EU regulation on responsible business conduct and
The Norwegian Transparency Act
The Norwegian Transparency Act came into force on 1 July 2022. It amends
the Non-Financial Reporting Directive 2014/95/EU on Responsible Business
Conduct and is based on the recommendations in the UN Guiding Principles on
Business and Human Rights (UNGP) and the OECD Guidelines for
Multinational Enterprises.
The Transparency Act aims to promote enterprises’ respect for fundamental
human rights and decent working conditions in connection with the production of
goods and services and to ensure the general public access to information
regarding how enterprises address adverse impacts on fundamental human
rights and decent working conditions.
It applies to the company’s own business, suppliers, and the suppliers’
value chain.
StrongPoint shall, according to section 5 in the Transparency Act, publish an
account of the due diligence assessments, as done in this report. This report
also combines the reporting obligations under the Accounting Act §3-3c.
Duties and governance
StrongPoint follows the duties to carry out due diligence assessments to
understand the risk of possible breaches - and to introduce measures where
necessary. Furthermore, we have a duty to inform about what is used as a basis
for the due diligence assessments and the results.
Each StrongPoint business unit shall monitor its operations, and due diligence
assessments are carried out locally under guidance and collaboration with
StrongPoint ASA.
StrongPoint Technology and Sourcing are primary responsible for the follow up
of all suppliers.
We carry out due diligence assessments in connection with various business
decisions. This will in StrongPoint be done when establishing new business
areas, launching new products, or acquiring other businesses.
StrongPoint works according to a risk-based methodology, where risk
assessments and analyses are part of the management processes in the
company and are overlooked by the Board of Directors. StrongPoint also
includes the environment and anti-corruption in our transparency due diligence
assessment.
55
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Due diligence process description
The process for due diligence assessments in StrongPoint is based on the
“OECD guide for due diligence assessments for responsible business”.
A0. We establish a list of all suppliers and partners (up-stream and
down-stream). Based on the severity and probability of adverse impacts on
fundamental human rights and decent working conditions, we include the
extended supply chain.
A1. An overall risk assessment is carried out. Assessing the country of origin,
company size, raw materials and risk industries, and company legal structure.
Based on this assessment, a list of suppliers is produced where risks may be
related to human rights, decent working conditions, the environment, and anti-
corruption. If no significant risk is uncovered, the process stops and no further
actions are performed. In this assessment, we use pre-determined threshold
values and benchmarks against recognized and reliable international subject
matter sources (list found in the section below).
A2. We make a detailed assessment of the risk list from A1. It starts with us
looking at the findings from A1 against the documentation and the knowledge
StrongPoint has about the suppliers in question. Normally, the supplier’s risk
will be handled, and the supplier will receive a new low-risk status. For suppliers
where the risk has not been handled, we will obtain the necessary information
and documentation to map the risk better. We will then conduct a new risk
assessment where the supplier is normally involved. The supplier will receive
either a “low risk” or a “high risk” status. If the risk is high, the next step is to
make an action plan.
A3. Here, measures are drawn up and planned to reduce the risk uncovered in
A2. This can be local audits, contract changes, and measures that stop or
reduce the negative impact. Necessary internal and external resources are
involved, and an action plan is drawn up with those responsible.
A4. We have reached the time when the measures we have decided on in A3
are implemented. This is documented continuously to see that the measures are
having an effect.
A5. Evaluation and learning cycle. We confirm that the measures resolved
identified risks and reduced the negative impact. Conducts evaluation meetings
and suggests improvements to avoid similar situations in the future.
A6. All process steps and actions should be documented.
LIST OF ALL
SUPPLIERS
AND PARTNERS
INITIAL
RISK
SCREENING
DETAILED
RISK
ASSESSMENT
DEVELOP
AND
PLAN ACTIONS
EXECUTION
ON ACTION
PLAN
EVALUATE,
LEARN AND
EMBED CHANGES
DOCUMENTATION
• Adverse impact?
• Country risk
• Industrial risk
• Type and foundation of
the company
• Geographical distance
and cultural distance
• Relationship to
StrongPoint
(time and quality)
• Risk potential
(magnitude)
• Involve
• Survey
• Gather more
background info
• Cease, prevent and
mitigate
• Track implementation
of results
• Communicate how
impacts are addressed
• Cooperate in
remediation when
appropriate
YES YES
NO
ACTION
NO
ACTION
LOW
RISK?
LOW
RISK?
A0
A1 A2
A3 A4 A5
A6
NO NO
Table: Process description
56
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Assessment of risk
StrongPoint uses the following sources as a basis for its due diligence
assessments of suppliers:
Sources:
Freedom House: https://freedomhouse.org/reports/nations-transit/nationstransit-methodology
The International Trade Union Confederation (ITUC): https://www.ituc-csi.org/
EPI: https://epi.yale.edu/epi-results/2022/component/epi
Transparency International: https://www.transparency.org/
In the assessment we specifically look at the following:
1. Country risk
2. Industrial risk
3. Type and legal entity of the company
4. Geographical distance and cultural distance
5. Relationship to StrongPoint (time and quality)
6. Risk potential (magnitude)
An essential part of establishing a tool for our risk assessment has been to
determine threshold values for the different risk areas. I.e., when is a country good
enough at safeguarding fundamental human rights or decent working
conditions? The above-mentioned assessment sources have recommendations
that StrongPoint has chosen to use. Based on a point scale from 0 to 100,
StrongPoint has the following threshold values as guidelines in our assessments:
When needed, we also use references from the following sources:
Global Slavery Index
Global Rights Index
Country Reports on Human Rights Practices
Human Rights Watch
UN: Working Group on Business and Human Rights
Universal Human Rights Index (UHRI)
Business Human Rights
Corporate Human Rights Benchmark
Theme Source Measures
Fundamental
Human Rights
Freedom House Measures political freedom and individual
rights. Political diversity, freedom of
expression, legal due process, and financial
dependencies and supression.
Decent working
conditions
International Trade Union
Confederation
Summerizes data from unions on
employment conditions in different countries.
Measures the right to establish and join
labour unions, collective bargnings, and the
right to og on strike.
Environment Environmental
Performance Index
(EPI)
Measures different countries contribution and
impact on the environment. Environmental
health (40%): Polution to air, water and from
heavy metals. Eco-systems (60%): Bio-
diversity, de-foresting, fisheries, suage,
greenhouse emissions, and nitrogen
emissions from agriculture
Anti-corruption Transparency International Measures the extent of corruption in the
government sector in different countries
based on 12 expert opinions from institutions
and 16 surveys.
Source Threshold Explanation
Freedom House Minimum 35 Countries with score below 35 are considred
“Not Free”.
Countries with score above 35 are considred
“Partly Free” or “Free”.
International Trade Minimum 60 Scores below 60 are not concidered
acceptable.
Environmental
Performance Index
(EPI)
Minimum 50 Scores are rated from red to green per
country. Red (not acceptable) is in the
range of 0-50.
Transparency
International
Minimum 50 Countries with scoe below 50 are concidered
to be among the more corupt societies.
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Due Diligence Account
StrongPoint will on a yearly basis, or if any significant changes occurs, update
the due diligence account report and publish this on our web pages before the
30th of June each year.
Right to Information
The right to information is an integral part of the Transparency Act. Any
individual or organization has the right to request information from StrongPoint
on how we as a company address actual and potential adverse impacts, both in
general or to specific products or services. We have published information and
standard information request forms on our web pages. Requests are routed to
the SVP People and Organization. They will be responded to in writing no later
than three weeks after receiving the request.
57
StrongPoint ASA | Annual Report 2023
58
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
V. The Norwegian accounting act §3-3, and compliance
with EUs Non Financial Reporting Directive (NFRD)
Reference is made to the following statements, with description of the
company’s guidelines for handling such conditions including carried out due
diligence assessments:
• On environment – page 46-47 of this report
• On social conditions and working environment – page 48-50 of this report
• On equality and non-discrimination - page 58-60 of this report
• On compliance with human rights - page 48 of this report
• On combating corruption and bribery - page 48 of this report
• On the company’s business model - page 10 of this report
• On performance indicators and effects of the guidelines - page 61-64
of this report
StrongPoint will report according to the Corporate Sustainability Reporting
Directive (CSRD) from 2025, replacing the NFRD directive.
VI. Statement on equality and non-discrimination
The following sections provide information on the status of diversity and
inclusion in StrongPoint and the activities being undertaken to identify and
analyze the risk of discrimination and actions to improve our D&I performance
under the Norwegian Equality and Anti-Discrimination Act.
Program statements
StrongPoint find diverse perspectives to be essential to delivering on our
long term strategic agenda. Diversity allows us to think, approach challenges
and solve problems differently. StrongPoint is committed to providing equitable
employment opportunities and treating all employees fairly and respectfully.
StrongPoint employees and business units shall only use merit, qualifications,
and other professional criteria as a basis for employee-related decisions, such
as recruitment, training, performance, compensation, and promotion. We strive
to develop programs and actions to encourage a diverse organization based on
the principle of equitable opportunities. StrongPoint is committed to the
principles of non-discrimination and does not tolerate any form of harassment or
bullying in the workplace.
We are working to ensure equal opportunities for all employees and prevent
discrimination based on gender, pregnancy, leave in connection with childbirth
or adoption, care responsibilities, ethnicity, religion, belief, disability, sexual
orientation, gender identity, gender expression, or combinations of these
grounds globally, and shall seek to prevent harassment, sexual harassment,
and gender-based violence.
All figures presented are for the Norwegian company StrongPoint ASA,
including all subsidiaries.
Identifying and mitigating D&I-related risks
We use our employee engagement surveys, StrongPoint Peakon eNPS pulse
surveys, to identify and monitor risks relating to diversity and inclusion. We also
use the internal grievance mechanism AlertLine to assess the risk of
discrimination and harassment in the organization and track relevant employee
data from our core employee system.
Our Peakon survey also allows us to assess employee engagement and
psychosocial risk indicators across different demographics, including gender,
age, and roles.
The index consists of seven diversity, inclusion, and equality related questions.
The Peakon index score is part of the Executive Management KPIs.
The business areas are expected to develop targets based on their scores, act
on the findings from the risk assessments, develop roadmaps, ensure
responsibility is taken, and report progress to eliminate discrimination. Every
quarter the executive team oversees trends and analyze root causes.
D&I is embedded in all people processes, including recruitment, onboarding,
and succession planning, and is included in all employee and leadership
development programs.
We have identified critical risk areas/obstacles for equality, diversity and
discrimination to be:
• Recruitment
• Culture
• Leadership
• Work-life balance
Recruiting employees from various countries, backgrounds, and cultures may
challenge how we communicate and follow up with employees. Regarding
leadership, poor gender balance can create a perception of unequal career
development opportunities and represent a talent retention risk. We also see
that StrongPoint’s growth strategy, combined with a performance-driven culture,
might create high expectations and workloads for employees, making work-life
balance challenging for some.
59
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
2023 performance
On recruitment, we have worked actively to improve gender balance on all
levels/departments/ countries and promote the recruitment of qualified
individuals with disabilities or special needs requirements.
On Culture and Leadership, we have continued the focus and understanding
of our purpose and values (see page 6).
We have pushed for gender balance at all leadership events and diverse
leadership teams through systematic succession planning.
On Work-life balance, we have promoted and evolved a culture of flexibility in
the workplace, including Working from Home (WfH) practice.
We are continuously tracking our population regarding work-life balance, and
our 2023 engagement survey showed increased scores in most BUs in
this area.
We have benchmarked executive payments and how it relates to gender
diversity. During the past year, we have continued to focus on aligning our
policies across the different business units and within the countries of operation.
We assess the compensation and benefit equality as part of the yearly
salary review and conduct a benchmark survey. We found only minor disparities
in 2023 and have adjusted them individually. In 2023 we will continue the
implementation in StrongPoint ALS (UK).
In 2023 we moved to new offices in Oslo that is much more adapted for
disabled employees.
StrongPoint has steadily progressed in the D&I area the past years and is
satisfied with the trend. In 2024 the company will especially focus on D&I
measures at StrongPoint ALS UK.
Average age of employees in StrongPoint is 42.9 years in 2023 (42.7 years in
2022). With female average age of 42.2 years old and males 43.1.
Average employee turnover in 2023 was 8.5% (12.7% in 2022).
SP AB SP S.L.U.
SP Cash
Tech SL SP E-com AB SP AS ALS UK ALS Ireland
ALS
Bulgaria Hamari SP ASA
SP UAB
Group
SUM
StrongPoint
Average FTE: 92.0 30.0 7.3 34.0 57.0 58.0 9.8 22.3 1.0 3.8 199.0 514.2
Number of employees per 31.12.2023 93 32 10 32 56 55 10 17 6 4 209 524
Number of FTE per 31.12.2023 93.0 32.0 10.0 32.0 56.0 54.0 9.8 17.0 6.0 4.0 204.5 518.3
Sick leave 4.00% 0.03% 10.00% 2.00% 6.11% 1.90% 3.08% 11.00% 0.00% 2.56% 0.16% 2.50%
Number of women 19 8 2 9 7 12 1 8 2 1 48 117
Average salary men 547 462 383 631 771 493 592 161 669 2523 531 0
Average salary women 551 446 463 627 604 490 323 126 319 1175 493 0
Part time women 0 0 0 0 0 1 1 0 0 0 2 4
Part time men 0 0 0 0 0 0 9 0 0 0 2 11
- Of which number of involuntary part-time female employees 31.12 0 0 0 0 0 0 0 0 0 0 0 0
- Of which number of involuntary part-time male employees 31.12 0 0 0 0 0 0 0 0 0 0 0 0
Temporary employees 0 0 0 0 0 0 0 0 0 0
Parental leave 9/6,43
weeks
1/18
weeks
11/6,43
weeks
2/24
weeks
12/22
weeks
35/13,1
weeks
Table: Measures in 2023, targets and performance.
60
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Gender-related salary differences
StrongPoint policy is that all employees shall receive a total compensation that
is competitive and aligned with local industry standards. The compensation
should also be performance-oriented, transparent, fair and objective. Salaries in
the organisation are reviewed regularly (minimum every second year). Positions
and pay grades are established and compared both on a group and
individual level.
No significant gender-pay differentials were found, and this corresponded with
the general assessment of the previous years. Still, we adjusted salaries to
approximately 10 employees to align them with relevant pay groups.
Employees earning collective negotiated wages in Sweden also had no
significant gender-pay differentials. When setting up and comparing pay groups
we looked at and compared the need for knowledge, problem-solving,
accountability, and the overall working conditions for every position. Each
employee’s base salary, benefits, pension cost, short and long term incentives
were assessed (total remuneration).
The average salary of men was NOK 580,000 (NOK 504,000 in 2022), and
women NOK 493,000 (NOK 411,000 in 2022). The significant year-over-year
uplift is caused by inflation driving high salary increases, and a currency effect
since it is reported in NOK.
VII. Remuneration to the Chief Executive Officer (CEO)
and other senior executives report
The Board of Directors are required to, in accordance to the Public Limited
Liability Companies Act § 6-16 a and b and regulation 11.12.2020 no. 2730,
prepare principles and report on remuneration to the Chief Executive Officer
(CEO) and other senior executives. StrongPoint presents this report as a
separate document to the Annual General Meeting, and it is published on
our website.
Level/
Employee
groups Female Male Total
Female
average
total remu-
neration in
percent of
the median
Male
average
total remu-
neration in
percent of
the median
10-12 15 24 39 103% 96%
13 14 67 81 94% 102%
14 31 83 114 96% 102%
15 27 80 107 97% 100%
16 12 72 84 104% 102%
17 11 30 41 98% 106%
18-25 7 51 58 91% 104%
Table: The average salary of men was NOK 580,000 (NOK 504,000 in 2022), and women
NOK 493,000 (NOK 411,000 in 2022). The significant year-over-year uplift is caused by
inflation driving high salary increases, and a currency effect since it is reported in NOK.
61
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Reference/Target 2022 goals Status 2023 goals Status 2024 goals Key actions
ENVIRONMENT AND
CLIMATE 1.1
StrongPoint will start
reporting on scope 3
in 2022.
Reported on scope 3
in 2022.
Increase accuracy on scope
3 upstream reporting.
Prepared for new CSRD
reporting.
ENVIRONMENT AND
CLIMATE 1.2
Start reporting on waste
generation and waste
management for all
production sites and
warehouses.
All BU reported except BU
Norway.
Include Norway when
moving to new offices in
Q2 2023.
Moved mid 2023 and
started reporting.
ENVIRONMENT AND
CLIMATE 1.3
Start mapping eligible
activities as described in the
EU taxonomy.
Basic mapping performed. Full taxonomy reporting. Implemented.
ENVIRONMENT AND
CLIMATE 1.4
StrongPoint will review its
environmental policies with
a view to make updates
where we can improve and
strengthen including:
• Selling or giving away
used equipment and
furniture for reuse
• Providing the option to
charge private electric cars
at the workplace
• Preferance to purchase
electric cars
• Avoid using promotional
materials and giveaways
that are made of plastic,
non-recyclable, or are single
usage items.
Agreed on guidelines.
Usage of hybrid and electric
cars have started. Increased
charging capacity at Strong-
Point facilities.
Introduce incentives to use
public transport for
employees in Norway.
All employees involved in
the process. A temporaty
cost compensation program
initiated as part of the move
to new HQ office in Norway.
ENVIRONMENT AND
CLIMATE 1.5
Evaluate off-setting or
buying climate quotas.
Protocols and related cost
evaluated. StrongPoint will
monitor and gather more
insight from comparable
Norwegian companies.
Evaluate off-setting or
buying climate quotas
related to Scop 1 and
Scope 2.
Proposal presented before
the Management and the
Board of Directors.
ENVIRONMENT AND
CLIMATE 1.6
Make local plans and
product reports on
sustainability impact.
Not adressed due to lack of
local resources.
Plan and test Environmental
Product Declaration (EPD)
on two of StrongPoint
products.
Introduce a EPD for ESLs. Plan and test
Environmmental Product
Declaration (EPD)/Life
Cycle assessment for the
refurbishment business.
Annex: Goals and status on progress
Our main indicators related to our three key prioritized sustainability focus areas:
62
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Annex: Goals and status on progress
Our main indicators related to our three key prioritized sustainability focus areas:
Reference/Target 2022 goals Status 2023 goals Status 2024 goals Key actions
ENVIRONMENT AND CLIMATE 1.7 Start reporting according to
the Corporate Sustainability
Reporting Directive (CSRD).
Implement a new reporting
model in all Business Units
and update the Double
materiality impact
assessment.
ENVIRONMENT AND CLIMATE 1.8 Prepare a new goals
structure in 2024/2025 as
part of the Sience Based
Targets Initiative.
Start verification process.
PEOPLE AND WORKING
ENVIRONMENT 2.1
(Implemented - old target).
PEOPLE AND WORKING
ENVIRONMENT 2.2
Provide training to
employees in the Code
of Conduct. KPI: 95% of
employees should have
undergone such training at
the end of 2022.
Part of onboarding of new
employees.
Update the CoC document
and learning material, and
introduce e-learning.
Document updated. Establish e-learning
platform.
Aquire a new plattform.
PEOPLE AND WORKING
ENVIRONMENT 2.3
KPI still to be monitored and
agreed upon.
Implemented screening
crterias as part of
implementing new
Transparancy Act.
Implement a high risk
supplier survey (part of the
Transparancy act folow-up
process).
Questionnaire introduced
as part of interview
process.
PEOPLE AND WORKING
ENVIRONMENT 2.4
KPI: Share of suppliers who
has signed anti-corruption
guidelines 90% at the end
of 2022.
All new signed contracts
are compliant.
Update our CoC for
suppliers.
Updated.
PEOPLE AND WORKING
ENVIRONMENT 2.5
Planned for 2022. Cancelled because of very
limited number of reported
cases (only two in 2022).
Focus on the internal
program.
Update whistle blowing
channel.
New website and reporting
schedule established.
63
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Annex: Goals and status on progress
Our main indicators related to our three key prioritized sustainability focus areas:
Reference/Target 2022 goals Status 2023 goals Status 2024 goals Key actions
PEOPLE AND WORKING
ENVIRONMENT 2.6
Implement new systems for
stock controls and relevant
audit and monitoring.
Improved process
implemented in Spain.
PEOPLE AND WORKING
ENVIRONMENT 2.7
Continue the positive trend
with a long term abition to
be among the top 15% of
technology companies.
With the acquisition of
StrongPoint ALS the score
is down to the “top 25%
of technology companies”
benchmark.
Increased focus on Peakon
actions in StrongPoint ALS
and in Sweden.
Recruit HR resources in UK
and Sweden executed as
planned.
PEOPLE AND WORKING
ENVIRONMENT 2.8
Continue focusing on
software developers and
tech employees in the
Baltics due to relatively high
turnover.
Achieved a decline in
turnover in 2022 due to
economic macro situation.
PEOPLE AND WORKING
ENVIRONMENT 2.9
(Implemented - old target).
PEOPLE AND WORKING
ENVIRONMENT 2.10
(Implemented - old target).
PEOPLE AND WORKING
ENVIRONMENT 2.11
Establish a employee
e-learning/training portal in
2022.
Vendor selected. Basic
learning programs in
development.
Launce of new e-learning
portal.
Delayed becasue of cost
restraints.
PEOPLE AND WORKING
ENVIRONMENT 2.12
Implement health insurance
for employees in Spain.
Established for all
employees.
Implement for Joint Venture
company in Spain.
Employees moved to
StrongPoint terms in 2023.
PEOPLE AND WORKING
ENVIRONMENT 2.13
Upgrade office in Norway,
Move office in Madrid. Find
new office locations in
Mölendal.
Planned move in Norway.
Moved in Mölendal and in
Madrid to new offices.
Move the Norwegian HQ
office.
Successful move to new
HQ compleated, with high
employee involvement.
PEOPLE AND WORKING
ENVIRONMENT 2.14
Undertaking a new
compensation and benefits
survey in 2022.
Completed. Complete a full C&B
benchmark of all
employees.
Benchmark concluded
together with KornFerry.
64
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Annex: Goals and status on progress
Our main indicators related to our three key prioritized sustainability focus areas:
Reference/Target 2022 goals Status 2023 goals Status 2024 goals Key actions
PEOPLE AND WORKING
ENVIRONMENT 2.15
Maintain zero incidents of
non-compliance.
Completed: No incidents
on non-compliance were
registered in 2022.
PEOPLE AND WORKING
ENVIRONMENT 2.16
Maintain ISO certification
achieved.
Completed: ISO cerification
maintained.
IT security ISO sertification
implemted in all
StrongPoint.
Involve all units and uplift
our ISO documentation.
PEOPLE AND WORKING
ENVIRONMENT 2.17
Make a risk matrix and HSE
guide on our AutoStore
automation solution.
Completed. Establish customer
training program for
AutoStore HSSE.
Not developed due to delay
in startup date at Haugaland
facility.
OPERATIONAL SUSTAINABILITY
INITIATIVES 3.1
Start test pilot at Haugaland
and collect data.
Started monitoring energy
consumption in Q4.
Document energy
consumption in Haugaland
facility.
Monitor and document
togeter with external
consultants.
OPERATIONAL SUSTAINABILITY
INITIATIVES 3.2
Establish a CO2 eq account
for refurbishment of
check-outs.
Investigated the
upstream- and down-stream
delivery of refurbishment
POC project at one
customer site.
OPERATIONAL SUSTAINABILITY
INITIATIVES 3.3
Document the security
features of new CashGuard
offering in Spain.
Documentation prepared for
the product launch in 2024.
Way forward
Energy
Energy prices have been increasing significantly in all markets. We expect the
situation to to stay high into 2024 as the war in Ukraine continues. We target a
decrease of 20% in Scope 2 energy consumption, as our consumption related
to facilities will decrease as we move to more energy-efficient office buildings.
Climate emission targets
In the past three years, we have gained a much better understanding of how our
value chain impacts our emissions. In 2024 we will continue our focus on
quantifying and setting concrete and actionable reduction targets, including a
path to net zero. The overall emission in Scope 1 will continue to increase, but
our growth will reduce the impact under Scope 3, so the total emissions
will decrease.
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
65
StrongPoint ASA | Annual Report 2023
EXECUTIVE MANAGEMENT
JACOB
TVERAABAK
CEO
Jacob Tveraabak was previously
the CEO of Miklagruppen (Bavaria
Nordic), director of business
development at Rema 1000
and with McKinsey & Company
for 12 years. He is also the
co-founder of Nabobil.no.
Tveraabak has MSc degrees from
the Norwegian School of
Economics and Bocconi
University. He holds 230,843
shares and 750,000 options in
StrongPoint privately and through a
privately owned company.
MARIUS
DREFVELIN
CFO
Marius has been a group CFO of
several international tech
companies, including five years at
the listed company Techstep ASA.
Prior to this, he has been a financial
advisor in the transaction teams of
Deloitte and KPMG, as well as an
investment manager at Jebsen
Asset Management AS. Drefvelin
holds BSc degrees in Finance and
Economics from the University of
Utah and is a Certified European
Financial Analyst from the
Norwegian School of Economics.
KNUT OLAV
NYHUS OLSEN
SVP People &
Organization,
Marketing and
Communication
Knut Olav N. Olsen was
previously the position as Chief
People Officer in Canal Digital,
Telenor Satellite and Telenor
Pakistan. Previously also working
as CHRO in Skanska and EVP in
ISS Facility Services. Olsen holds
a master’s degree in law and a fi-
nance degree from the University
of Bergen, with additional man-
agement training from IMD and
INSEAD. He is the co-founder and
board member of Terrosa
Consulting. He holds 31,227 shares
and 275,000 options in StrongPoint.
JULIUS
STULPINAS
SVP Technology and
Supply Chain
Julius Stulpinas has 15 years of
experience within StrongPoint
related companies, leading and
transforming sales, service,
product development organizations
and teams. He has MSc degree of
Engineering from Kaunas University
of Technology and MBA from a
consortium of Baltic Management
Institute, HEC Paris, NHH
Norwegian School of Economics
and Copenhagen Business School.
He holds 38,365 shares and
250,000 options in StrongPoint.
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
66
StrongPoint ASA | Annual Report 2023
GISLE
ELVEBAKKEN
SVP Norway
Gisle Elvebakken has worked in
sales and management for large
Nordic IT-companies such as
Visma, Atea and Visolit for over 20
years. Elvebakken holds BSc
International Marketing from BI
Norwegian Business School. He
holds 47,645 shares and 350,000
options in StrongPoint.
MAGNUS
ROSÉN
SVP Sweden
Magnus Rosén has more than 20
years’ experience from retail in
various management roles,
including the role as business
director e-commerce at ICA.
Magnus have throughout his
career predominantly worked with
retail management, business
development and technology
development in the grocery retail
space. He holds 15,886 shares and
175,000 options in StrongPoint.
RIMANTAS
MAŽULIS
SVP Baltics
Rimantas Mažulis has 15 years of
experience in retail technologies
within StrongPoint. During that time,
he held various positions in retail
solution design & development
area. Rimantas Mažulis holds a
degree of Engineering Informatics
from Kaunas University of
Technology (2004) and currently
in progress with Executive MBA
(2022) master’s degree by a
consortium of Baltic Management
Institute, HEC Paris. He holds
30,523 shares and 325,000 options
in StrongPoint.
LORENA
GÓMEZ
SVP Spain
Lorena Gomez has extensive
experience in managing and
scaling sales in the retail sector
across Europe and has been sales
director for the retail technology
division at HMY Group, a
company she has been with since
2006. Since 2014 she was
responsible for the newly formed
Retail Technology division at the
Group level. Lorena Gomez holds a
degree in Industrial Design
Engineering from the University of
Zaragoza and a Master’s degree in
Innovation Management. She holds
19,846 shares and 200,000 options
in StrongPoint.
ALEX
EVELEIGH
SVP UK & Ireland
Alex Eveleigh started in StrongPoint
in January 2024. He has over 15
years of experience working in the
grocery retail industry, holding
senior positions at Asda, Aldi and
Ocado. In these roles he led teams
across various domains, including
in-store operations, online grocery
fulfillment, automation and robotics.
Most recently, he served as the VP
of Business Development &
Strategy and as the Director of
Growth at Takeoff Technologies, a
grocery e-commerce automation
company, where he oversaw sales,
strategy development,
implementation, and operations.
He holds 0 shares and 0 options
in StrongPoint.
EXECUTIVE MANAGEMENT
67
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
2023
Board of Directors’ report
StrongPoint is a focused retail technology company that
provides solutions to make shops smarter, shopping
experiences better and online grocery shopping more
efficient. With more than 500 employees in Norway,
Sweden, Finland, the Baltics, UK, Ireland and Spain, and
together with a wide partner network, StrongPoint
supports businesses in more than 20 countries.
StrongPoint provides technology and solutions, service
and support, license and professional services to
retailers, especially in the grocery retailers. StrongPoint
is headquartered in Norway and is listed on the Oslo
Stock Exchange [ticker: STRO].
Events after the balance sheet date
No major events have occurred after the balance sheet date.
2023
FINANCIAL REVIEW
y Operating revenues for StrongPoint Group declined by
2% to 1,342 MNOK (1,372).
y Earnings before interest, tax, depreciation and amortization
(EBITDA) amounted to -1 MNOK (76), and profit after tax
was -34 MNOK (29).
y Total Group capital per 31 December 2023 was 1,014
MNOK (986) and equity was 475 MNOK. This resulted in
an equity ratio of 47 per cent.
y Interest bearing liabilities, reduced by bank deposits,
amounted to 81 MNOK at the end of 2023.
y The Group has a cash pool arrangement allowing for a
more efficient utilization of group liquidity and cash flow.
Disposable funds end of year was 95 MNOK, of which 56
MNOK was available credit facility. Cash flow from
operational activities was 25 MNOK (17), and working
capital decreased by 38 MNOK in 2023.
68
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Segments
The Group reported on two segments in 2023: Scandinavia and International incl.
R&D. In addition, the financial statement includes detailed revenue information for
geographic and product segments.
The Group delivers proprietary solutions within In-store Productivity,
E-commerce, Payment Solutions and Checkout Efficiency, as well as tailor-made
retail solutions from leading third-party suppliers, including Pricer Electronic Shelf
Labels (ESL), POS, ERP and Digi scales and wrapping systems. The business
governance is based on reported sales revenues, EBITDA and EBIT for the two
business areas Scandinavia and International incl. R&D.
Scandinavia
The business segment Scandinavia currently consist of the operating business
units in Norway and Sweden. The revenue also includes some deliveries to other
parts of the Nordics like Denmark and Iceland.
International incl. R&D
The business segment International incl. R&D consists of the operating business
units in the Baltics, Finland, Spain and UK/Ireland, in addition to partner sales in
the rest of Europe and rest of world. The ongoing R&D activities for own products
have been allocated to this area.
STRONGPOINT
SEGMENTS
The 2023 financial statements include two
reporting segments: Scandinavia and
International incl. R&D.
MNOK Year
Scandinavia 2023 2022
Norway 340.3 386.1
Sweden 295.7 358.0
Total Revenue 636.0 744.1
EBITDA 41.5 67.2
- In % 6.5% 9.0%
EBT 35.1 59.5
- In % 5.5% 8.0%
MNOK Year
International incl. R&D 2023 2022
Baltics 255.5 204.6
Spain 87.6 76.8
UK & Ireland 283.5 241.3
Rest of Europe 79.8 105.7
Total Revenue 706.4 628.3
EBITDA -10.4 53.9
- In % -1.5% 8.6%
EBT -51.5 21.1
- In % -7.3% 3.4%
69
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Acquisition
On October 31, 2023, StrongPoint acquired 100% of the shares in Brand ID
Hamari Group Oy (Hamari). Hamari is a retail technology solutions company
based in Finland and was established in 2006. Hamari provides services and
installation to retailers and grocery retailers, predominantly electronic shelf labels
from Pricer AB. At the end of 2023, the company had six employees.
The full year 2023 revenue ended at 11 MNOK, of which 2.6 MNOK was
consolidated in StrongPoint. The purchase price for the shares was 5.2 MNOK,
of which 3.3 MNOK was paid as cash and 1.9 MNOK was paid with shares in
StrongPoint ASA. A total of 3.6 MNOK was identified as intangible assets, which
will be amortized over the next five years.
Employees and organization
StrongPoint aims to be a workplace with a safe and positive working
environment. All employees receive a competitive total compensation aligned with
local industry standards. The Group has taken active measures aimed at
promoting employees’ professional development, preventing sick leave and
improving the overall working environment. All employees in the Group have
employment contracts that comply with local market standards and legislation.
The Group had 524 employees as of 31 December 2023. Total sick leave in the
company were estimated at 2.5% in 2023 compared to 1.6% the previous year.
No employees were reported injured and there were no reported accidents during
the year.
The company has share incentive programs for the executive management and
all the employees. 148,706 shares were distributed in 2023.
The Group aims to be an inclusive workplace with equality between women
and men, based on qualifications, without regard to age, religion or origin. The
Group’s Board of Directors comprises 40% women.
There were 117 women among the Group’s 524 employees at the end of the
year. StrongPoint is an equal opportunity employer, and diversity and inclusion
are imperative to the way StrongPoint does business. More information on the
status of gender equality and how we comply with section 26 of the Equality and
Anti-Discrimination Act can be found under the ESG section on page 37 of the
annual report.
Product development
The Group owns intellectual property within cash management, checkout
efficiency and e-commerce. StrongPoint continues to invest in and maintain the
current solutions, as well as developing and funding new solutions. No
development costs were capitalized in 2023, except capitalization of intangible
assets of 23.4 MNOK related to the development of a new cash management
solution.
Risk
Historically, the Group’s key markets have been robust and stable, as
investments in the retail grocery sector have not been significantly affected by
financial and macroeconomic changes. In 2023, however, the continued increase
in inflation and interest rates put additional pressure on the market condition,
resulting in lower customer spending. Moreover, global component shortages,
supply chain delays, pandemic restrictions and other international macro
instabilities may impact the Group’s financial performance. The Group managed
the risk by close dialogue with key suppliers and also used the strong liquidity
situation to increase inventory in order to reduce the risk of delay in future
deliveries.
The Group’s operations are exposed to currency risk, and in 2023 this had a
negative impact on the Scandinavian operations. Currency risk is managed
operationally in customer contracts, but there is a time lag between the
currency change and the increased (or decreased) price to customers.
Receivables and liabilities are exposed to financial risk, which is reduced by a
thorough, action-based follow-up on an ongoing basis. These matters also have
implications for liquidity risk. The Group has managed liquidity risk by closely
monitoring anticipated future operational cash flow, as well as available cash and
credit facilities.
StrongPoint has a worldwide Directors’ and Officer’s liability insurance with a
limit of approx. 4% of revenue.
From an overall assessment of customer satisfaction, market position, market
demand and financial position, the Board of Directors considers that there is a
solid basis for continued operations, and the annual financial statements were
prepared with the assumption of a going concern.
In the opinion of the Board, the income statement, balance sheet and notes
presented are a true and fair view of the company’s position and profit from
activities in 2023. The Board of Directors are not aware of any other matters
relevant for assessing the company beside what is stated in the annual report.
70
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Ownership and corporate governance
StrongPoint’s policy on corporate governance is presented in the Group’s Annual
Report and on the corporate website.
The policy contains information pursuant to Section 3-3b of the Accounting Act
and the Norwegian Code of Practice for Corporate Governance except some
noted deviations.
The Group’s long term strategy, ongoing business performance,
organizational competence and capacity and capital structure were the main
focus of Board meetings in 2023. The Board held nine scheduled board meetings
and seven extraordinary meetings in 2023. All board members are considered to
be independent board members, with a 96% participation rate during the year.
Every year, the Board performs a board evaluation survey, which is discussed
and acted upon to constantly improve the work of the Board of Directors. Parts of
StrongPoint’s Group management team are also invited to participate in the
survey, and the results are also shared with the nomination committee. There
were no transactions between the Board or Management and the Business
(related parties) in 2023.
The Board has three subcommittees: an audit committee, a nomination
committee and a remuneration committee. The audit committee comprises two
Board members. The committee reviewed quarterly and annual financial
statements, as well as the Group’s main risk categories. The committee also
assessed its internal controls, including internal controls related to financial
reporting, as well as the quality of risk management systems and audit work.
The nomination committee consists of three external members. The
remuneration committee consists of two Board members. The remuneration
committee continues to evaluate and benchmark the total remuneration program
every year.
Ethics, environment and corporate social responsibility
Corporate social responsibility and sustainability are integral to StrongPoint’s
operations. This means economic, social and environmental aspects are
considered before making decisions. Broad confidence and credibility are
essential for StrongPoint to meet its business objectives. The Group has
achieved this by creating and maintaining a culture built on high ethical standards
and integrity. The policy includes information pursuant to Section 3-3c of the
Accounting Act.
StrongPoint’s operations follow established public procedures to prevent
pollution of the external environment and comply with relevant international and
local legislation and standards. Some subsidiaries sell and store products
classified as environmentally hazardous if the waste is not managed in
accordance with applicable regulations. Subsidiaries have contracts with
authorised return and recycling companies. There were no emissions of
environmentally harmful substances in 2023. StrongPoint’s customers have the
option to return products at the end of their life to ensure they are handled in an
environmentally responsible manner. StrongPoint´s focus on environment, social,
and governance (ESG) are reported separately in the annual report. In 2023, the
main topics were Employee working environment, health and safety, product
innovation, quality and safety, Corporate governance including ethics and anti
corruption and Environment and climate, including emissions and waste
management.
StrongPoint works actively with suppliers to understand how climate changes
can influence the business and try to reduce the risk by identifying and
implementing alternative components, reduced production redundancy and
reduce emission by searching for more optimal transportation routes.
Corruption and whistleblowing
StrongPoint has zero tolerance for corruption. This applies to all employees,
companies and persons acting on behalf of the Group. StrongPoint’s zero
tolerance means, among other things, that no gratuities may be offered or
received, beyond a symbolic value, and no benefits may be received on behalf of
either the Group or any employee personally.
The Group has whistleblowing procedures in place. It is important to report
policy violations or inappropriate conduct in a responsible manner.
The audit committee is responsible to handle whistleblowing incidents reported
directly to the Board.
Shareholder relations
As of 31 December 2023, StrongPoint had a share capital of NOK 27,830,778
allocated to 44,888,352 shares with a face value of NOK 0.62. At the end of 2023,
the Group held 350,404 treasury shares at an average price of NOK 20.92.
There were 2,387 shareholders in the company at the end of 2023. The 20 largest
shareholders represented 54.5 per cent of total share capital. At the end of 2023,
281 shareholders owned 10,000 shares or more.
StrongPoint is not aware of any agreement between shareholders limiting the
ability to trade shares or exercising voting rights represented by shares in
the Group.
71
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Outlook
StrongPoint’s E-Commerce and In-Store solutions and services are well
positioned at the crossroads of multi-channel retailing: online growth and
cost-cutting in retail stores.
From a North European and grocery focused starting point, StrongPoint will
pursue a three-step approach to geographical expansion and growth:
• Roll-out of the full portfolio of solutions in key markets, including Norway,
Sweden, Finland, the Baltics, UK&Ireland and Spain, utilizing our strong sales,
service and support organization, applying innovative tools and sharing of best
practices.
• Selling StrongPoint’s proprietary solutions in a selected number of countries
beyond key markets. The list of solutions includes grocery e-commerce,
self-checkout, shop fitting and cash management solutions.
• Utilizing StrongPoint´s market access platform for global retail technology
providers targeting leading retailers in the key markets, leveraging StrongPoint´s
strong market and one-stop-shop position.
As a foundation for creating shareholder value, StrongPoint growth strategy is
based on profitable and organic growth, M&A initiatives, cost control and a solid
balance sheet. The Group presents its long term goals every year as part of an
Annual Strategy Update Session.
The Board of Directors underlines that a growth is not expected to be linear, and
investments in products and sales resources will influence the EBITDA. The
overall growth ambitions can further be influenced by global component
shortages, supply chain delays, pandemic restrictions and other international
macro instabilities. The Board also acknowledges that the time from pilots to
roll-outs and scale-up for new solutions is difficult to predict, and this might
sometimes be reflected in rather significant variations in the reported numbers
between the quarters.
Parent company - StrongPoint ASA
StrongPoint ASA is the holding company for the Group’s legal entities. The
company is listed on the Oslo Stock Exchange under the ticker “STRO”. The
parent company, StrongPoint ASA, has four employees.
StrongPoint ASA’s profit for the year was 7.1 MNOK compared to a loss of 2.1
MNOK in 2022.
Proposal for allocation of profit for the year:
The Board of Directors will propose to the general meeting the following
allocation of profit for the year in the parent company StrongPoint ASA for 2023:
Profit for the year:
NOK 7,137,344.45
Transferred from other equity:
NOK 7,137,344.45
Oslo, 14 March 2024
Morthen Johannessen
Chairman
Ingeborg Molden Hegstad
Director
Cathrine Laksfoss
Director
Audun Nordtveit
Director
Peter Wirén
Director
Jacob Tveraabak
CEO
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
72
StrongPoint ASA | Annual Report 2023
BOARD OF DIRECTORS
MORTHEN
JOHANNESSEN
Chairman
Morthen Johannessen has more
than 20 years’ experience as CEO/
Managing director of
international businesses. In Tomra
he first served as CEO for the
European business, and later as
Group COO & head of the Global
Business Development division.
Prior to Tomra Morthen was CEO of
Pepsico`s beverage business in
Western-Europe. He currently
works as an industrial advisor and
professional board member of a
number of companies in various
industries. Johannessen holds a
Master of Business Administration
(HD) from CBS, Copenhagen. He
has been on the Board of
StrongPoint since April 2016, and
Chairman from April 2018. He holds
112,135 shares in StrongPoint.
INGEBORG
MOLDEN HEGSTAD
Director
Ingeborg Hegstad has 20 years of
experience from management
consulting, including McKinsey &
Company and Egon Zehnder. Since
2015 Hegstad has been a partner in
Imsight AS, offering strategy and
leadership advisory to executives,
teams and organizations. She has
experience from the Board of
Directors of Cxense ASA (2017-2019),
Q-Free ASA (2018-2021), Cyviz ASA
(2021-onwards) and Gjensidige
Mobility Group (2023-onwards).
Hegstad holds a Master of Business
and Administration from Norwegian
Business School BI (2000). She has
been a Board member in StrongPoint
since April 29, 2020. She holds 25,602
shares in StrongPoint.
AUDUN
NORDTVEIT
Director
Audun Nordtveit has more than 10
years’ experience from finance and
investment operations, including
with Norges Bank Investment
Management and UBS. Since 2018,
he has worked as an investment
manager at the investment
company Sole Active AS. Nordtveit
holds an M.Sc. of Industrial
Economics and Technology
Management from NTNU and an
MBA from Columbia Business
School. He has been a member of
the Board of StrongPoint since 27
April 2023. He holds 23,072 shares
in StrongPoint.
CATHRINE
LAKSFOSS
Director
Cathrine Laksfoss is CEO of
Schibsted Ecommerce &
Distribution as, and head of
Ecommerce development across
Schibsteds companies and
Schibsteds distribution activities.
She has led the transformation of
the traditional newspaper
distribution to an ecommerce
growth group by founding and
scaling growth companies. She is
Chair of Boards in Helthjem
Netthandel AS, morgenlevering.
no, Distribution Innovation AS and
serves on the boards of Bookis.no
and Dooris ab. She has previous
experience from Posten Bring and
management consulting and holds
an MBA from HEC Paris and a
Masters degree in marketing from
the Norwegian Business School.
She has been a Board member in
StrongPoint since April 28, 2022.
She holds 5,211 shares in
StrongPoint.
PETER
WIRÉN
Director
Peter Wirén has 20 years’
experience from the payments and
retail technology industry as CEO
and executive vice president of
Teller, Nets and Bambora. He has
extensive experience of managing
change processes, preparing and
implementing growth strategies and
handling acquisitions and mergers
in international markets. Wirén
currently works as a consultant
and PE advisor, and he has been a
member of the board of
StrongPoint since 24 April 2018. He
holds 40,607 shares in StrongPoint.
73
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Corporate Governance
Good corporate governance is vital to the success of
StrongPoint ASA. Thus, corporate governance is a key
concern for StrongPoint’s Board and employees, and in
StrongPoint ASA’s relations with its subsidiaries. The Board
has reviewed and updated the company’s corporate
governance practice. It is in line with the Accounting Act,
section 3-3b and the Norwegian Code of Practice for
Corporate Governance, except where deviations from the
Code are noted. The presentation adheres to the same
order of topics as the fifteen items in the Code.
StrongPoint is compliant to all item in the code except item 3:
The board has an authorization to make an overall capital increase of up to
9,000,000 shares that is not limited to a defined purpose. The shareholders’
preferential rights according to cf. section 10-14 of the Public Limited Liability
Companies Act can be disregarded. The board has authorization to acquire up
to 4,400,000 own shares that is not limited to a defined purpose.
1. Implementation and reporting on corporate governance
StrongPoint ASA’s corporate governance principles are determined by the Board
of Directors and are set forth in the company’s management documents. The
Board’s role is based on the principle of independence from the executive
management and the principle of equality and responsibility towards the
company’s shareholders. The company’s shares are freely tradable, and the
Board/executive management considers it a priority to focus on activities that
strengthen the liquidity of its shares. The company’s shareholder policy is based
on the principle of one share – one vote. Related to potential acquisitions and
restructuring situations, the Board will exercise particular concern so that all
shareholders’ investments and interests are considered closely. One of the
Board’s main tasks is to ensure that the company is based on an optimized
capital structure. Equity transactions, including authorizations for share capital
increases, are to be justified in terms of extent, form and timing. The Board and
executive management must ensure that the company’s information policies
ensure that information regarding the company is published correctly,
comprehensively and timely, contributing to a correct valuation of the company’s
shares. Further, the information policy should give shareholders the best
possible foundation for decisions related to investments and voting at
general meetings.
Values, ethical guidelines and guidelines for corporate social responsibility
The group’s operations shall be conducted in accordance with the company’s
values, ethical guidelines and guidelines for social responsibility determined by
the Board and Executive Management. In addition, we shall through our
activities contribute to a responsible business conduct. StrongPoint ASA’s
guidelines are presented on the company’s website.
2. Business
The company’s business objective is described in the company’s articles of
association. StrongPoint is a retail technology company that provides solutions
to make shops smarter, shopping experiences better and online grocery
shopping more efficient. The business objective ensures that shareholders have
control of the business and its risk profile, without limiting the Board or
management’s ability to carry out strategic and commercially appropriate
decisions within the defined purpose. The articles of association of StrongPoint
ASA are presented on the group’s website: strongpoint.com. The company’s
objectives and main strategies are presented in the annual report.
74
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
3. Equity and dividends
Equity
The group’s equity as of 31 December 2023 amounted to 474.9 MNOK
corresponding to an equity ratio of 46.8 per cent.
The company’s share capital is NOK 27,830,778.24, divided into 44,888,352
shares with a nominal value of NOK 0.62.
Dividends
StrongPoint’s shareholders should over time get a competitive return on their
investment through a combination of cash dividends and increased value of
their shares.
When deciding the annual dividend level, the Board of directors will take into
consideration expected cash flow, investments in organic growth, plans for growth
through mergers and acquisitions, and needs for appropriate financial flexibility.
In addition to cash dividends, StrongPoint ASA may buy back shares as part of
its total distribution of capital to the shareholders.
Board authorizations
The Board’s proposals for future Board authorizations accord with the
recommendations with two exceptions. The first concerns the Board’s
authorization to increase share capital by up to 9,000,000 shares, which is not
limited to a defined purpose.
Secondly, the Board has an authorization to acquire treasury shares at par
value of up to NOK 2,728,000 and an overall capital increase of up to 4,400,000
shares. The authorization is not limited to a defined purpose.
The Board has asked the General Meeting for these authorizations to increase
the group’s maneuverability.
Both authorizations are valid until the next general meeting or 30 June 2024,
whichever comes first.
4. Equal treatment of shareholders and transactions with
close associates
The company has a single class of shares, and all shares carry the same rights
related to the company. Equal treatment of all shareholders is essential.
Transactions involving the company’s own shares are executed on the Oslo
Stock Exchange, except for the repurchase of minor shareholdings from
shareholders with 500 or fewer shares. In the event of material transactions
between the company and a shareholder, Board member, member of executive
management, or a party closely related to any of the beforementioned, the Board
will ensure that independent valuations are made available.
Board members and members of executive management shall report to the
Chairman of the Board and the group CEO if they directly or indirectly have
significant interests in agreements entered into by StrongPoint ASA or
companies in which StrongPoint ASA has significant interests. Additional
information on transactions with related parties appears in note 18 in the
consolidated accounts. Existing shareholders shall have pre-emptive rights to
subscribe for shares in the event of share capital increases, unless otherwise
indicated by special circumstances. If the pre-emptive rights of existing
shareholders are waived in a share capital increase, the reasons for this waiver
shall be explained by the Board of directors and be published through the Oslo
Stock Exchange distribution system and on the company website.
5. Freely negotiable shares
StrongPoint ASA’s shares are freely negotiable. There are no restrictions on
transferability in the company’s articles of association.
6. General meetings
Meeting notification, registration and participation
The company encourages all shareholders to participate at general meetings.
Notices of general meetings and comprehensive accompanying information are
made available to shareholders on the company’s website and sent to
shareholders within the deadlines stated in the Norwegian Public Limited
Liability Companies Act. The deadline for shareholders to register to attend a
general meeting is set as close to the date of the meeting as possible, normally
two or three days prior to the meeting. The company is of the opinion that no
adequate systems for handling electronic participation at general meetings are
currently available. Thus, the Board has decided not to allow such participation at
StrongPoint ASA’s general meetings. From 2020, the articles of association allow
for digital execution of general meetings, and regulates that votes in advance can
be registered. This allows for improved shareholder engagement cross borders.
75
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Proxy and votes in advance
When the general meeting is held digitally, the shareholders can send in votes in
advance. Shareholders who are unable to attend a meeting may vote by proxy.
The company has prepared forms that enable shareholders to vote on individual
issues. Procedures for using such forms are available on the company’s website.
The company does not appoint an independent proxy to vote on behalf of
shareholders. The company considers that shareholders’ interests are adequately
safeguarded by the option to participate through an appointed proxy or voting in
advance. Procedures for attendance registration and granting proxy are
presented in the notice, on the attendance and proxy form and on the
company website.
Meeting chair, voting, etc.
Board members, the chairman of the nomination committee, and the company’s
auditor are encouraged to attend general meetings. The general meeting is led by
the Chairman of the Board or someone elected by the general meeting.
The nomination committee focuses on composing a board that works as a
team, that meets legally established regulations as to equal gender
representation on boards of directors, and whose members’ experience and
qualifications complement each other. Minutes of general meetings are published
as soon as practical via the Oslo Stock Exchange distribution system and on the
company website.
7. Nomination committee
The company has a nomination committee, as stated in the articles of
associations, which consists of: Hilde Horn Gilen (Chairman), Inger Johanne
Solhaug and Are Juklestad Berg. The nomination committee consists of no fewer
than three members. Each member is normally elected for a two-year period. The
composition of the nomination committee should ensure the interests of
shareholders and independence from the Board and executive management.
Nomination committee members and its chairman are elected by the
company’s general meeting, which also determines remuneration payable to
committee members.
In accordance with StrongPoint ASA’s articles of association, the nomination
committee recommends candidates for election to the Board of Directors. In
addition, the nomination committee recommends a candidate for Chairman. The
nomination committee also makes recommendations on remuneration of Board
members. The nomination committee is to justify its recommendations, how it
takes care of the shareholders’ and the company’s need for expertise, capacity
and diversity. Care should be taken that the Board functions effectively as a
cooperative body. Proposals for Board candidates are to be submitted in
reasonable time before the general meeting. The annual general meeting will, in
accordance with the Code of Practice, be presented with the guidelines governing
the duties of the nomination committee for approval. The duties of the nomination
committee are found on the company website.
8. Corporate assembly and Board of Directors,
composition and independence
In accordance with the company’s articles of association, the Board comprises
between 5 and 11 members. Board members are elected for a period of one year.
The Board members are independent of the company’s executive management
and its significant business associates. No member of the company’s executive
management is a Board member. CEO Jacob Tveraabak has ownership
interests in StrongPoint ASA privately and trough his company Celo Industries
AS. The current composition of the Board is presented on the company website.
The Board members’ expertise is also presented. In 2023, the Board of Directors
had 16 meetings.
Board members’ shareholdings are presented in note 9 to the consolidated
accounts. Board members are encouraged to invest in the company’s shares,
and also receive shares as part of the remuneration. The Board members
represent a combination of expertise and experience from finance, industry and
organizations. The nomination committee’s reasoned proposal for candidates will
be presented on the company website.
9. The work of the Board of Directors
The Board of StrongPoint ASA annually adopts a plan for its work, emphasizing
goals, strategies and implementation. Also, the Board has adopted board
instructions that regulate areas of responsibility, tasks and division of roles of the
Board, the Chairman of the Board and the Chief Executive Officer. The Board
instructions also feature rules governing Board schedules, notice and chairing of
Board meetings, decision-making, the Chief Executive Officer’s duty and right to
disclose information to the Board, professional secrecy, impartiality and
other issues. The Board evaluates its own performance and expertise once a
year through a survey. The Board has an audit committee, which consists of
Chairman of the Board Morthen Johannessen and the Board member
76
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Audun Nordtveit. The Board evaluates the competence of the audit committee
members to be sufficient. The audit committee sets the agenda according to the
tasks set in Allmennaksjelovens §6-43.
10. Risk management and internal control
The Board of Directors of StrongPoint ASA is ultimately responsible for the
group’s business operations and is to ensure that the company maintains solid
in-house control practices and appropriate risk management systems tailored to
the company’s business activities.
StrongPoint ASA is exposed to currency and interest risk, market risk, credit risk
and operational risk at its underlying companies. Management of operational risk
primarily takes place at each underlying operating company, reported to Group
management, and evaluated and handled to the best for the company.
StrongPoint takes an active role on Boards of Directors in subsidiaries. As a
rule, all companies have established effective risk management procedures.
Management of financial market exposure, including currency, interest and
counterparty risk, is presented in greater detail in note 17 to the parent company
accounts. StrongPoint has adopted a series of policies to support this, including:
• Financial reporting, financial and risk management.
• Ethics and social responsibility.
• Authorization conditions, including instructions for the Board and CEO, as well
as certification authority.
• Audit committee.
• Accounting manual regulating group accounting policies, risk accruals and
internal control.
The Audit committee and the Board reviews the company’s most important risk
areas and internal control systems and procedures, and the main elements of
these assessments are presented in the Board of Directors’ report. The audit
committee also serves as a preparatory group in connection with the quarterly
report and reviews the major events, the directors’ report, balance sheet, income
statement items and notes to the interim financial statements together with the
administration before the report is presented to the Board.
11. Remuneration of the Board
Board remuneration reflects the Board’s responsibility, expertise, time spent and
the complexity of the business. Remuneration does not depend on StrongPoint’s
financial performance. There are no option programs for any Board members.
20% of gross remuneration to the Board shall be used for share purchases until
the value of the shares corresponds to a minimum of one year’s gross
remuneration. The annual general meeting determines Board remuneration
following recommendations by the company’s nomination committee. Board
members are elected because of their expertise and knowledge. Directors or their
related companies should not undertake special assignments for the company in
addition to their Board appointments. However, if they do, the whole Board should
be informed. Fees for such assignments must be approved by the Board. All
remunerations are specified in the financial statement. Additional information on
remuneration paid to Board members for 2023 is presented in note 9 to the
consolidated accounts.
12. Remuneration of executive personnel
The Board has adopted guidelines for remuneration of executive management in
accordance with section 6-16a of the Norwegian Public Limited Liability
Companies Act. The Board of Directors determines the remuneration of the CEO.
StrongPoint ASA implemented a Long Term Incentive Program in 2020
represented as a Stock Option program. The program has ambition to both
motivate and retain executive management and key personnel to achieve the
overall strategic ambitions, and has been granted in the years 2020, 2021, 2022
and 2023. The company’s guidelines and further information on remuneration for
2023 for members of StrongPoint’s executive management is presented in note 9
to the consolidated accounts. Additional information will be shared in a
remuneration report to be presented to the General meeting in 2023. Some
members of StrongPoint’s executive management maintain the company’s
interests as board members of other StrongPoint companies. They do not
personally receive board remuneration for this. StrongPoint has a worldwide
Directors’ and Officer’s liability insurance with a limit of approx. 4% of revenue.
13. Information and communications
The company has prepared a policy for investor relations (IR), which determines
guidelines for contact with shareholders apart from the general meeting. The
company’s reporting of financial and other information is based on transparency
and equal treatment of interested parties.
The long-term purpose of StrongPoint’s IR activities is to ensure access to
capital at competitive terms for the company and correct pricing of shares for
shareholders. These goals are to be accomplished through accurate and timely
distribution of information that can affect the company’s share price; the company
77
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
is also to comply with current rules, regulations and market practices, including
the requirement of equal treatment.
All stock exchange notices and press releases are published on the company’s
website. Stock exchange notices are also available at: newsweb.oslobors.no. All
information that is distributed to shareholders is published through the Oslo Stock
Exchange distribution system and on the company website.
The company intends to host public presentations of its financial reporting and
these meetings are webcasted simultaneously. The company’s financial calendar
is found on the company website.
14. Take-overs
In a bid situation, StrongPoint’s Board of Directors and management have an
independent responsibility to help ensure that shareholders are treated equally,
and that the company’s business activities are not disrupted unnecessarily. The
Board has a particular responsibility to ensure that shareholders are given
sufficient information and time to form a view of the offer. The Board of Directors
will not seek to hinder or obstruct take-over bids for the company’s activities or
shares unless there are particular reasons for this. An agreement with the bidder
to limit the company’s ability to obtain other offerings on the company’s shares
will only be entered into when it clearly can be attributed to the company and
shareholders’ common interest. The same applies to an agreement to
compensate the bidder if the offer is not completed. Any compensation shall be
limited to the cost the bidder has incurred in making the bid. Agreements between
the company and provider of importance for the market’s assessment of the offer
should be made public no later than the alert that the offer is made. In the event
of a take-over bid for the company’s shares, the company’s Board of Directors will
not exercise mandates or pass any resolutions with the intention of obstructing
the take-over bid unless this is approved by the general meeting following
announcement of the bid. If an offer is made for the company’s shares, the
company’s Board of Directors will issue a statement making a recommendation
as to whether shareholders should or should not accept the offer. The Board’s
statement on the offer will make it clear whether the views expressed are
unanimous, and if this is not the case it should explain the basis on which
specific members of the board have excluded themselves from the Board’s
statement. The Board will arrange a valuation from an independent expert. The
valuation will include an explanation and will be made public no later than at the
time of the public disclosure of the Board’s statement.
15. Auditor
The auditor participates in the Board meeting that decides the annual accounts.
The auditor audit material changes in the company’s accounting principles and
assessments of material accounting estimates with the Board.
Further, the auditor has provided the Board with written confirmation that the
requirement of independence is met. The Board and the audit committee meet
with the auditor without the presence of representatives of executive
management. The audit committee determines guidelines for executive
management’s access to use the auditor for services other than auditing and
receives an overview of services rendered by the auditor to the company.
Remuneration for auditing and other services are presented in note 5 to the
StrongPoint ASA accounts. Such details are presented to the annual
general meeting.
Oslo, 14 March 2024
Morthen Johannessen
Chairman
Ingeborg Molden Hegstad
Director
Cathrine Laksfoss
Director
Audun Nordtveit
Director
Peter Wirén
Director
Jacob Tveraabak
CEO
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Investor Relations
StrongPoint ASA strives to have an
open investor relations policy
towards its shareholders and the
market in general. The most
important events for shareholder
information and updates are the
quarterly presentations and the
Annual Strategy Update Session. In
addition, StrongPoint uses its
website, meetings and direct
communication to provide investors
and analysts with relevant
information. Information for shareholders is
available at strongpoint.com and ose.no (ticker STRO).
StrongPoint ASA has frequent contact with investors and analysts to provide the best possible
information regarding the group’s financial situation and development. The market is informed
of orders/contracts worth 10 MNOK or more, as well as orders that are considered
strategically important.
StrongPoint ASA is a public limited company and is established under Norwegian law. The
company is listed on the Oslo Stock Exchange. The Group’s issued share capital is NOK
27,830,778 allocated as 44,888,352 shares, each with a nominal value of NOK 0.62, all fully
paid and issued in accordance with Norwegian law. The company has one class of shares.
For more information
Marius Drefvelin
CFO
Tel: +47 95 89 56 90
E-mail: [email protected]
Marius Drefvelin
CFO
78
StrongPoint ASA | Annual Report 2022
FINANCIAL CALENDAR 2024
Q1 – 25.04
Q2 – 12.07
Q3 – 18.10
Annual General Meeting – 25.04
Webcast will be available at our website www.strongpoint.com
from CET 07.00.
SHARE
INFORMATION
Jan Feb Mar Apr Mai Jun Jul Aug Sep Oct Nov Dec
Price
Volume
26
24
22
20
18
16
14
12
10
8
6
4
2
0
28
24
20
16
12
8
4
79
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Consolidated statements of comprehensive income
KNOK Note 2023 | 2022 | ||
Operating revenue | 3 | ||
Cost of goods sold | 12 | ||
Payroll | 9 | ||
Share based compensation | 9 | ||
Other operating expenses | 5, 16, 27 | ||
Total operating expenses | |||
EBITDA | - | ||
Depreciation tangible assets | 10 | ||
Amortization intangible assets | 11 | ||
Total depreciations and impairments | |||
Operating profit | - | ||
Financial expenses | 8 | ||
Financial income | 6, 8 | ||
Total financial items | - | ||
Profit before tax | - | ||
Income tax expense | 26 | - | |
Profit/loss after tax | - |
KNOK Note 2023 | 2022 | ||
| Other comprehensive income net of tax | |||
| Items that may be reclassified through profit or loss in later periods | |||
Exchange differences on foreign operations | - | ||
Total comprehensive income | - | ||
Earnings per share | 23 | - |
80
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Consolidated balance sheet
Oslo, 14 March 2024
Morthen Johannessen
Chairman
Ingeborg Molden Hegstad
Director
Cathrine Laksfoss
Director
Audun Nordtveit
Director
Peter Wirén
Director
Jacob Tveraabak
CEO
KNOK Note 31.12.2023 | 31.12.2022 | ||
| ASSETS | |||
Intangible assets | 11 | ||
Goodwill | 11 | ||
Tangible assets | 10 | ||
Right-of-use assets | 10 | ||
Associated companies | 6 | ||
Other long term investments | 7 | ||
Other long term receivables | 13 | ||
Deferred tax assets | 26 | ||
Total fixed assets | |||
Inventories | 12 | ||
Accounts receivables | 13, 17 | ||
Prepaid expenses | 13 | ||
Other current receivables | 13 | ||
Cash and cash equivalents | 14 | ||
Total current assets | |||
TOTAL ASSETS |
KNOK Note 31.12.2023 31.12.2022
| EQUITY AND LIABILITIES | |||
Share capital | 24 | ||
Treasury shares | 24 | - | - |
Other equity | |||
Total equity | |||
Long term interest-bearing liabilities | 15 | ||
Long term lease liabilities | 15 | ||
Other long term liabilities | 22 | ||
Deferred tax liabilities | 26 | ||
Total long term liabilities | |||
Current interest-bearing liabilities | 15 | ||
Bank overdraft | 15 | ||
Short term lease liabilities | 15 | ||
Accounts payable | |||
Tax payable | 26 | - | |
Public duties payable | |||
Other short term liabilities | 22,27 | ||
Total short term liabilities | |||
Total liabilities | |||
TOTAL EQUITY AND LIABILITIES |
81
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Consolidated cash flow statement
KNOK Note 2023 | 2022 | ||
Ordinary profit before tax continued operations | - | ||
Net interest | |||
Tax paid | - | - | |
Share of profit, associated companies | 6 | - | - |
Depreciation tangible assets | 10 | ||
Amortization intangible assets | 11 | ||
Gain/-loss on sale of tangible assets | 10 | - | - |
Change in inventories | - | ||
Change in accounts receivables | - | ||
Change in accounts payable | - | ||
Change in other accrued items | - | - | |
Net cash flow from operational activities | |||
Payments for fixed assets | 10 | - | - |
Payment for intangible assets | 11 | - | |
Payments for long term shares | 6 | - | |
Sale of tangible assets (sales proceeds) | 10 | ||
Acquisition of subsidiaries, net of cash acquired | 4 | - | - |
Net effect divestment | 4 | ||
Interest received | 8 | ||
Dividends received from associated companies | 6 | ||
Net cash flow from investment activities | - | - |
KNOK Note 2023 | 2022 | ||
Purchase of own shares | 24 | - | |
Sale of own shares | 24 | ||
Payment long and short term debt | 15 | - | - |
Payment of leasing commitments | 15 | - | - |
Loan to Joint venture company in Spain | 13 | - | |
Change in overdraft | 15 | ||
Interest paid | 8 | - | - |
Dividends paid | - | - | |
Net cash flow from financing activities | - | ||
Net cash flow in the period | - | - | |
Cash and cash equivalents at the start of the period | |||
| Effect of foreign exchange rate fluctuations on foreign | |||
| currency deposits | |||
Cash and cash equivalents at the end of the period | 14 |
82
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Consolidated statement of changes in equity
Other paid in equity are funds which can be allocated by the General Assembly.
1) The balance sheet is converted with the closing rate at the balance sheet date, while the income statement is converted with the average monthly exchange rate. The net effect of the translation is recognized as translation
differences in other comprehensive income and expenses. See exchange rates in note 21
| Other equity | ||||||||||
| Share | Treasury | Other paid-in | Translation | Share Option | Other | Total | Minority | Total | ||
| KNOK | Note | capital | shares | equity | variances | Program | equity | equity | interest | equity |
Equity at 31.12.2021 | - | |||||||||
Profit for the year after tax | ||||||||||
| Other comprehensive income and expenses | - | - | - | |||||||
Total comprehensive income | - | |||||||||
Purchase/sale of own shares | - | - | - | - | ||||||
Dividend 2021 paid in 2022 | - | - | - | |||||||
Acquisition of ALS paid in shares | ||||||||||
Share Option Program | ||||||||||
Equity at 31.12.2022 | - | |||||||||
Profit for the year after tax | - | - | - | - | ||||||
| Other comprehensive income and expenses | ||||||||||
Total comprehensive income | - | - | - | |||||||
Sale of own shares | 24 | |||||||||
Dividend 2022 paid in 2023 | 24 | - | - | - | ||||||
Acquisition of Hamari paid in shares | 4 | |||||||||
Share Option Program | 9 | |||||||||
Equity at 31.12.2023 | - | - |
1
1
83
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
84
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
85
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
86
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
87
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
KNOK | 2023 | 2022 |
- Products | 219,693 | 338,955 |
- Services | 100,056 | 87,218 |
In-store Productivity | 319,749 | 426,173 |
- Products | 148,186 | 164,642 |
- Services | 111,285 | 119,953 |
Payment Solutions | 259,472 | 284,595 |
- Products | 117,564 | 115,900 |
- Services | 44,408 | 39,405 |
Check Out Efficiency | 161,972 | 155,306 |
- Products | 86,940 | 53,417 |
- Services | 39,666 | 41,045 |
E-commerce logistics | 126,606 | 94,461 |
- Products | - | - |
- Services | 283,466 | 241,311 |
Shop Fittting | 283,466 | 241,311 |
- Products | 89,664 | 85,902 |
- Services | 101,468 | 84,644 |
Other retail technology | 191,132 | 170,545 |
- Products | 662,047 | 758,815 |
- Services | 680,350 | 613,577 |
Total sales revenue | 1,342,398 | 1,372,392 |
StrongPoint ASA | Annual Report 2023
88
ABOUT STRONGPOINT
Scandinavia | International incl. R&D | ASA/Elim | Consolidated | |||||
KNOK | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
- Products | 230,437 | 269,709 | 230,437 | 269,709 | ||||
- Services | 109,845 | 116,385 | 109,845 | 116,385 | ||||
Norway | 340,282 | 386,093 | - | - | - | - | 340,282 | 386,093 |
- Products | 157,379 | 225,058 | 157,379 | 225,058 | ||||
- Services | 138,364 | 132,916 | 138,364 | 132,916 | ||||
Sweden | 295,743 | 357,974 | - | - | - | - | 295,743 | 357,974 |
- Products | 131,101 | 104,590 | 131,101 | 104,590 | ||||
- Services | 124,441 | 100,019 | 124,441 | 100,019 | ||||
Baltic | - | - | 255,542 | 204,610 | - | - | 255,542 | 204,610 |
- Products | 67,586 | 60,196 | 67,586 | 60,196 | ||||
- Services | 19,985 | 16,556 | 19,985 | 16,556 | ||||
Spain | - | - | 87,570 | 76,752 | - | - | 87,570 | 76,752 |
- Products | - | - | ||||||
- Services | 283,564 | 241,311 | 283,564 | 241,311 | ||||
UK & Ireland | - | - | 283,564 | 241,311 | - | - | 283,564 | 241,311 |
- Products | 75,544 | 99,305 | 75,544 | 99,305 | ||||
- Services | 4,152 | 6,390 | 4,152 | 6,390 | ||||
Rest of Europe | - | - | 79,696 | 105,695 | - | - | 79,696 | 105,695 |
- Products | 387,816 | 494,767 | 274,231 | 264,048 | - | - | 662,048 | 758,815 |
- Services | 248,209 | 249,301 | 432,142 | 364,276 | - | - | 680,350 | 613,577 |
Total sales revenue | 636,025 | 744,068 | 706,373 | 628,325 | - | - | 1,342,398 | 1,372,392 |
EBITDA | 41,485 | 67,224 | -10,403 | 53,868 | -32,371 | -45,553 | -1,288 | 75,540 |
EBT | 35,119 | 59,524 | -51,475 | 21,141 | -28,975 | -42,499 | -45,331 | 38,165 |
Assets | 406,984 | 387,016 | 440,480 | 398,513 | 167,026 | 200,111 | 1,014,490 | 985,640 |
Liabilities | 201,103 | 178,741 | 401,269 | 315,804 | -62,734 | -16,111 | 539,638 | 478,433 |
Working capital | 185,989 | 231,260 | 149,687 | 154,117 | -24,153 | -26,744 | 311,524 | 358,632 |
Investment in fixed assets | 5,110 | 840 | 12,508 | 10,278 | 26 | 27 | 17,643 | 11,144 |
Auditor’s report
StrongPoint ASA | Annual Report 2023
89
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
| Hamari | |
| Assets | |
Deferred tax assets | 141 |
Fixed assets | 78 |
Cash and cash equivalents | 909 |
Receivables | 2,471 |
Inventories | 1,408 |
| 5,007 | |
| Liabilities | |
Accounts payable | -2,153 |
Interest-bearing liabilities | -7 |
Other short term debt | -1,853 |
| -4,012 | |
Net identifiable assets at fair value | 995 |
Customers relations | 3,601 |
Goodwill | 3,064 |
Deferred tax assets | -720 |
Purchase amount | 6,939 |
Cash | 3,266 |
Shares in StrongPoint | 1,892 |
Earnout | 1,781 |
Purchase amount | 6,939 |
Paid in cash | 3,266 |
Cash received | -909 |
Net cash out | 2,357 |
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
AT A GLANCE
Product segments
| KNOK | |
Revenue | 2,556 |
Profit before tax | -187 |
Markets
ESG
Retail technology with responsibility
| KNOK | |
Revenue | 11,025 |
Profit before tax | -1,267 |
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
90
ABOUT STRONGPOINT
About StrongPoint
KNOK | 2023 | 2022 |
Rent, electricity, cleaning | 16,962 | 13,242 |
Vehicles | 14,317 | 11,473 |
Other consultancy fees | 38,450 | 47,414 |
IT | 44,927 | 25,018 |
Travel | 11,632 | 8,632 |
Marketing | 9,984 | 10,044 |
Other costs | 28,972 | 19,152 |
Total | 165,244 | 134,976 |
Specification of recognized auditors fee: | 2023 | 2022 |
Fee for auditing services | 3,924 | 2,365 |
Fee for tax advise | - | 14 |
Fee for other services | 145 | 292 |
| Total | 4,069 | 2,671 |
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
AT A GLANCE
Product segments
Markets
| Cost | Book | Dividend | Share of | Book | ||||
| KNOK | Stake | price | value | paid in | net profit | value | ||
Entity | Country | Industry | 31.12.2023 | 31.12.2023 | 31.12.2022 | 2023 | 2023 | 31.12.2023 |
Spok AS | Norway | Service company | 50.0% | 1,700 | 962 | -300 | 191 | 853 |
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
| 2023 | ||||||
| KNOK | Current | Fixed | Profit for | |||
| Entity | assets | assets | Debt | Equity | Turnover | year |
Spok AS | 4,181 | 1,312 | 3,658 | 1,835 | 13,977 | 517 |
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
KNOK | 2023 | 2022 | ||
Company | Cost price | Market | Cost price | Market |
| value | value | |||
| Other long term investments: | ||||
Settle Group AS | 476 | - | 476 | - |
1X Technologies AS | 4,001 | 4,001 | 4,001 | 4,001 |
Total | 4,477 | 4,001 | 4,477 | 4,001 |
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
91
ABOUT STRONGPOINT
About StrongPoint
KNOK | 2023 | 2022 |
Interest income | 1,604 | 772 |
Currency adjustment bank and unpaid receivables and liabilities | 9,818 | 5,448 |
Profit from associated companies | 191 | 388 |
Other financial income | 150 | 284 |
Total financial income | 11,763 | 6,891 |
| Interest expense | -6,924 | -2,031 |
Interest expenses leasing IFRS 16 | -4,297 | -2,168 |
Currency adjustment bank and unpaid receivables and liabilities | -1,840 | -984 |
| Other financial expenses | -4,585 | -890 |
Total financial expenses | -17,646 | -6,073 |
Net financial items | -5,884 | 818 |
KNOK | 2023 | 2022 |
Salaries | 262,080 | 224,046 |
Severance packages | 8,382 | 537 |
Director's fee and Nomination Committee | 2,240 | 1,958 |
Social fee | 46,449 | 39,092 |
Pension costs | 15,728 | 13,429 |
Other payroll costs | 31,903 | 26,781 |
Total payroll costs | 366,782 | 305,842 |
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
AT A GLANCE
Product segments
Markets
KNOK | 2023 | 2022 |
| Board of Directors | ||
Director's fee | 2,082 | 1,834 |
| Executive Management Team | ||
Salaries | 19,200 | 16,552 |
Bonus | 2,771 | 4,902 |
Company car | 1,022 | 891 |
Exercised options | 2,156 | - |
Other remuneration | 902 | 1,102 |
Pension expenses | 1,866 | 1,223 |
Total salaries and remuneration | 29,998 | 26,504 |
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
92
ABOUT STRONGPOINT
About StrongPoint
Name, position | Shares per | Shares per | Options per | Options per |
| 31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 | |
| Board of Directors | ||||
Morthen Johannessen, Chairman ¹ | 112,135 | 105,662 | ||
Klaus de Vibe, former Director | 92,491 | |||
Peter Wirén, Director | 40,607 | 33,345 | ||
| Ingeborg Molden Hegstad, Director | 25,602 | 22,365 | ||
Cathrine Laksfoss, Director | 5,211 | 1,974 | ||
Audun Nordtveit, Director | 23,072 | |||
Total | 206,627 | 255,837 | - | - |
Our WHY statement
Total costs and Social Security Provisions (KNOK) | 2023 | 2022 |
Total IFRS cost | 6,827 | 5,420 |
Total Social security provisions | -432 | -341 |
6,395 | 5,079 | |
Granted instruments | 2023 | 2022 |
Instrument | Option | Option |
Quantity 31.12 (instruments) | 1,335,000 | 1,100,000 |
Quantity 31.12 (shares) | 1,335,000 | 1,100,000 |
Contractual life * | 5.00 | 5.00 |
Strike price * | 21.34 | 22.55 |
Share price * | 21.16 | 22.25 |
Expected lifetime * | 3.25 | 3.25 |
Volatility * | 43.11% | 43.26% |
Interest rate * | 3.308% | 2.599% |
Dividend * | 0.00 | 0.00 |
FV per instrument * | 7.07 | 7.21 |
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
AT A GLANCE
Product segments
Markets
Name, position | Shares per | Shares per | Options per | Options per |
| 31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 | |
| Executive Management Team | ||||
| Jacob Tveraabak, CEO | 230,843 | 212,246 | 750,000 | 600,000 |
Hilde Gilen CFO to 31.05.23 | 53,827 | 93,750 | ||
Marius Drefvelin CFO from 01.09.23 | 150,000 | |||
| Knut Olav Nyhus Olsen, SVP People | 31,227 | 13,814 | 275,000 | 225,000 |
| & Organisation, and head of Marketing | ||||
| and Internal Communication | ||||
Gisle Elvebakken, SVP Norway | 47,645 | 39,329 | 350,000 | 250,000 |
| Julius Stulpinas, SVP Technology & | 38,365 | 31,094 | 250,000 | 225,000 |
| supply chain | ||||
Rimantas Mažulis, SVP Baltics | 30,523 | 22,806 | 325,000 | 225,000 |
Lorena Gómez, SVP Spain | 19,846 | 5,350 | 200,000 | 125,000 |
Chris Mackie, SVP E-commerce | 25,104 | 15,936 | 125,000 | 75,000 |
Magnus Rosén, SVP Sweden | 15,886 | 9,000 | 175,000 | 75,000 |
| Steve Smith, SVP UK & Ireland | 75,000 | |||
| to 13.11.23 | ||||
Total | 439,439 | 403,402 | 2,600,000 | 1,968,750 |
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
| Weighted | ||
| Number of | Average | |
| Activity | instruments | Strike Price |
Outstanding OB (01.01.2023) | 2,668,750 | 22.23 |
Granted | 1,335,000 | 21.34 |
| Exercised | -300,000 | 15.58 |
Terminated | -281,250 | 23.88 |
Outstanding CB (31.12.2023) | 3,422,500 | 22.33 |
Vested CB | 1,168,750 | 21.12 |
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
93
ABOUT STRONGPOINT
About StrongPoint
| Weighted | |||||
| Average | |||||
| remaining | Vested | ||||
| Number of | contractual | Weighted Average | instruments | Weighted Average | |
| Strike price | instruments | life | Strike Price | 31.12.2023 | Strike Price |
Outstanding Instruments: | Vested Instruments: | ||||
14.68 | 550 000 | 1.84 | 14.68 | 550 000 | 14.68 |
18.00 | 150 000 | 4.67 | 18.00 | - | - |
19.63 | 31 250 | 3.44 | 19.63 | 31 250 | 19.63 |
21.77 | 1 110 000 | 4.36 | 21.77 | - | - |
21.91 | 831 250 | 3.36 | 21.91 | 212 500 | 21.91 |
30.23 | 750 000 | 2.35 | 30.23 | 375 000 | 30.23 |
3 422 500 | 1 168 750 | ||||
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
AT A GLANCE
Product segments
Markets
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
94
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
| KNOK | Equipment | Total | Equipment | Total | ||||
| Land | Buildings | owned | 2023 | Land | Buildings | owned | 2022 | |
Acquisition costs 01.01 | 825 | 8,731 | 79,880 | 89,436 | 825 | 8,731 | 56,931 | 66,487 |
Acquisition | - | 20,346 | 20,346 | |||||
Addition | 13,845 | 13,845 | 11,041 | 11,041 | ||||
Divestment | -4,434 | -4,434 | -9,664 | -9,664 | ||||
Currency exchange differences | 5,473 | 5,473 | 1,225 | 1,225 | ||||
Acquisition costs 31.12 | 825 | 8,731 | 94,764 | 104,320 | 825 | 8,731 | 79,880 | 89,436 |
Accumulated depreciations 01.01 | -825 | -8,731 | -56,125 | -65,681 | -825 | -8,731 | -37,901 | -47,457 |
Acquisition | - | -18,294 | -18,294 | |||||
Depreciations | -4,537 | -4,537 | -5,035 | -5,035 | ||||
Depreciations of the year regarding rental machines is booked as cost of gods sold | -4,308 | -4,308 | -3,812 | -3,812 | ||||
Divestment | 4,330 | 4,330 | 9,650 | 9,650 | ||||
Currency exchange differences | -3,727 | -3,727 | -733 | -733 | ||||
Accumulated depreciations 31.12 | -825 | -8,731 | -64,366 | -73,922 | -825 | -8,731 | -56,125 | -65,681 |
Book value 31.12 | - | - | 30,397 | 30,397 | - | - | 23,755 | 23,755 |
Depreciation ratio | 10-33% | 10-33% | ||||||
Depreciation method | Linear | Linear |
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
AT A GLANCE
Product segments
Markets
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
95
ABOUT STRONGPOINT
KNOK | Right of use | Right of use | Total | Right of use | Right of use | Total |
| offices | equipment | 2023 | offices | equipment | 2022 | |
Acquisition costs 01.01 | 113,840 | 35,140 | 148,980 | 61,694 | 27,496 | 89,190 |
Acquisition | - | 38,437 | 38,437 | |||
Addition | 25,872 | 6,841 | 32,713 | 13,346 | 6,911 | 20,257 |
Divestment | 371 | 371 | 16 | 16 | ||
Currency exchange differences | 7,930 | 2,136 | 10,067 | 363 | 717 | 1,080 |
Acquisition costs 31.12 | 147,642 | 44,489 | 192,131 | 113,840 | 35,140 | 148,980 |
Accumulated depreciations 01.01 | -44,795 | -21,486 | -66,281 | -30,266 | -15,682 | -45,948 |
Depreciations | -15,510 | -6,950 | -22,459 | -14,189 | -6,128 | -20,317 |
Currency exchange differences | -2,510 | -1,312 | -3,822 | -340 | 324 | -16 |
Accumulated depreciations 31.12 | -62,815 | -29,748 | -92,562 | -44,795 | -21,486 | -66,281 |
Book value 31.12 | 84,827 | 14,741 | 99,568 | 69,044 | 13,654 | 82,698 |
Depreciation ratio | 10-33% | 10-33% | 10-33% | 10-33% | ||
| Depreciation method |
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
96
ABOUT STRONGPOINT
| Other intangible assets | 2023 | 2022 | ||||||||
(KNOK) Technology | Brand | Customer | Software | Total | Technology | Brand | Customer | Software | Total | |
Acquisition costs 01.01 | 107,510 | 31,502 | 92,425 | 9,376 | 240,813 | 107,510 | 21,502 | 36,425 | 9,272 | 174,709 |
Acquired by aquisition | 16,105 | 3,409 | 19,514 | 10,000 | 56,000 | 66,000 | ||||
Investment | 23,425 | 3,798 | 27,223 | 104 | 104 | |||||
Acquisition costs 31.12 | 147,040 | 31,502 | 95,834 | 13,174 | 287,550 | 107,510 | 31,502 | 92,425 | 9,376 | 240,813 |
Accumulated impairments and depreciations 01.01 | -105,655 | -1,164 | -42,632 | -8,383 | -157,834 | -101,268 | - | -35,344 | -8,382 | -144,994 |
Accumulated impairments and depreciations 31.12 | -105,655 | -3,371 | -51,581 | -8,390 | -168,998 | -105,655 | -1,164 | -42,632 | -8,383 | -157,834 |
Translation differences | -1,855 | 3,383 | 6,129 | -883 | 6,774 | -1,855 | 937 | 1,332 | -890 | -476 |
Book value 31.12 | 39,530 | 31,513 | 50,382 | 3,901 | 125,327 | 0 | 31,275 | 51,125 | 103 | 82,503 |
Depreciations of the year | - | -2,207 | -8,949 | -7 | -11,163 | -4,387 | -1,164 | -7,288 | -1 | -12,840 |
Impairment of the year | - | - | - | - | - | - | - | - | - | - |
This year change in translation differences | - | 2,446 | 4,792 | 7 | 7,245 | -110 | -735 | -285 | - | -1,130 |
Depreciation schedule | 10 and 15 | Impairment | 1-7 | 4-7 | 10 and 15 | Impairment | 1-7 | 4-7 | ||
| years | test | years | years | years | test | years | years | |||
Depreciation ratio | 7-10% | 14-100% | 14-25% | 7-10% | 14-100% | 14-25% |
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
97
ABOUT STRONGPOINT
| Goodwill | StrongPoint | StrongPoint | StrongPoint | StrongPoint | Total | Total | ||||
(KNOK) StrongPoint AS | StrongPoint AB | Technology AB | Baltic | S.L.U | E-com AB | ALS | Hamari | 2023 | 2022 | |
Acquisition costs 01.01 | 15,976 | 2,612 | 81,127 | 23,318 | 4,431 | 25,889 | 38,268 | 191,620 | 153,352 | |
Acquisition | 2,914 | 2,914 | 38,268 | |||||||
Acquisition costs 31.12 | 15,976 | 2,612 | 81,127 | 23,318 | 4,431 | 25,889 | 38,268 | 2,914 | 194,535 | 191,620 |
Accumulated impairment and depreciations 01.01 | -14,689 | -229 | -23,345 | -38,263 | -38,263 | |||||
Accumulated impairment and depreciations 31.12 | -14,689 | -229 | -23,345 | -38,263 | -38,263 | |||||
Translation differences | 10,012 | 3,102 | 1,133 | 743 | 3,063 | 18,054 | 6,561 | |||
Book value 31.12 | 1,286 | 2,383 | 91,139 | 3,075 | 5,564 | 26,632 | 41,331 | 2,914 | 174,325 | 159,918 |
| Impairment of the year | ||||||||||
This year change in translation differences | - | - | 6,091 | 199 | 360 | 1,780 | 3,063 | - | 11,492 | -2,991 |
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
AT A GLANCE
Product segments
| Goodwill (KNOK) | |||
Acquired company | Cash generating unit | 31.12.2023 | 31.12.2022 |
StrongPoint AS | Scandinavia | 1,286 | 1,286 |
StrongPoint AB | Scandinavia | 2,383 | 2,383 |
StrongPoint Technology AB | Scandinavia | 91,139 | 85,048 |
StrongPoint UAB | International incl. R&D | 3,075 | 2,877 |
StrongPoint S.L.U | International incl. R&D | 5,564 | 5,205 |
StrongPoint E-com AB | Scandinavia | 26,632 | 24,852 |
StrongPoint ALS | International incl. R&D | 41,331 | 38,268 |
StrongPoint Hamari Oy | International incl. R&D | 2,914 | - |
Total goodwill | 174,325 | 159,918 |
Markets
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
98
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
99
ABOUT STRONGPOINT
About StrongPoint
Inventories (KNOK) | 2023 | 2022 |
Inventories | 241,050 | 242,540 |
Provision for obsolete stock | -10,626 | -10,416 |
Total | 230,424 | 232,124 |
Short term receivables (KNOK) | 2023 | 2022 |
Accounts receivables | 240,790 | 274,348 |
Prepaid expenses | 22,032 | 25,731 |
Other receivables | 14,955 | 16,265 |
Total short term receivables 31.12 | 277,777 | 316,344 |
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
Provision for obsolete stock (KNOK) | 2023 | 2022 |
Provision for obsolete stock, opening balance | -10,416 | -11,326 |
Taken to income/charged to expense (-) change in provision | -210 | 910 |
Provision for obsolete stock, closing balance | -10,626 | -10,416 |
Changes in provision for bad debts (KNOK) | 2023 | 2022 |
01.01 | 6,027 | 6,981 |
Acquisition | - | 138 |
Applied provisions | -676 | -1,145 |
Reversed provisions | -594 | -2,119 |
New provision for bad debt | 2,486 | 2,173 |
Total 31.12 | 7,243 | 6,027 |
AT A GLANCE
Product segments
Markets
ESG
Aging of accounts receivables (KNOK) | 2023 | 2022 |
Not due | 154,583 | 206,384 |
0-3 months | 85,025 | 67,414 |
3-6 months | 1,182 | 550 |
Total 31.12 | 240,790 | 274,348 |
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
Long term receivables (KNOK) | 2023 | 2022 |
Loan to Joint venture company in Spain | - | 13,668 |
Deposit rented offices | 1,372 | 1,479 |
Total long term receivables 31.12 | 1,372 | 15,147 |
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
100
ABOUT STRONGPOINT
About StrongPoint
KNOK | 2023 | 2022 |
Cash and bank deposits | 39,340 | 47,248 |
Overdraft | 94,153 | 22,137 |
Unused overdraft facilities | 55,847 | 77,863 |
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
Type of loan | 2023 | 2022 | Borrowing terms | Average nominal interest for 2023 |
| Multi-currency, group credit account | 94,153 | 22,137 | Overdraft limit MNOK 150, not time limited | 5.13% |
Long term loan | 8,646 | 11,455 | Quarterly repayments | 1.72% |
Short term debt | 4,299 | 4,165 | Repayment in 2024 | 2.6%-7.99% |
Financial leasing | 13,002 | 12,159 | Monthly and quarterly payments | |
Total interest-bearing debt | 120,100 | 49,915 | ||
IFRS 16 office rent liabilities | 84,827 | 69,044 | ||
Total interest-bearing debt and IFRS 16 rent liabilities | 204,927 | 118,960 |
AT A GLANCE
Product segments
Markets
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
KNOK | 2023 | 2022 |
Bank overdraft | 94,153 | 22,137 |
Current interest-bearing liabilities | 22,278 | 29,310 |
Due after one year | 88,496 | 67,513 |
Total interest-bearing debt and IFRS 16 rent liabilities | 204,927 | 118,960 |
Asset | 31.12.2023 | 31.12.2022 |
Operating equipment and inventories for StrongPoint AS | 100,960 | 115,442 |
| Lien over Företagsinnteckning StrongPoint AB | 117,711 | 109,844 |
Co-surety Norway, Sweden, the Baltics and UK * | 150,000 | 135,000 |
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
| New | Currency | ||||
| KNOK | 31.12.2022 | CashFlow | contracts | differenses | 31.12.2023 |
Interest-bearing liabilities | 37,757 | 75,553 | - | -6,212 | 107,097 |
Lease liabilities | 81,203 | -24,444 | 32,713 | 8,357 | 97,829 |
Total | 118,960 | 51,109 | 32,713 | 2,145 | 204,927 |
| New | Currency | ||||
| KNOK | 31.12.2021 | CashFlow | contracts | differenses | 31.12.2022 |
Interest-bearing liabilities | 16,004 | 16,897 | - | 4,855 | 37,757 |
Lease liabilities | 42,058 | -19,503 | 58,694 | -46 | 81,203 |
Total | 58,062 | -2,605 | 58,694 | 4,809 | 118,960 |
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
101
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
| Future minimum rent for the leasing | The present value of | ||
| contracts per 31.12 is as follows: | future payments | ||
KNOK | 2023 | 2022 | 2023 |
Within one year | 26,979 | 24,164 | 23,770 |
After one year, but within five years | 66,130 | 53,504 | 44,539 |
After more than five years | 17,307 | 20,854 | 8,096 |
Total | 110,417 | 98,522 | 76,405 |
AT A GLANCE
Product segments
Markets
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
102
ABOUT STRONGPOINT
About StrongPoint
2023 | 2022 | |
Bank overdraft | 5.13% | 2.98% |
Short term loans | 5.30% | 4.19% |
Long term loans | 1.72% | 1.72% |
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
AT A GLANCE
Sensitivity currency exposure; | KNOK |
Bank overdraft | -942 |
Short term loans | -43 |
Long term loans | -86 |
Leasing | -130 |
Product segments
Markets
KNOK | 2023 | 2022 |
Total interest-bearing debt | 120,100 | 49,915 |
Cash | 39,340 | 47,248 |
Net interest-bearing debt | 80,760 | 2,668 |
Total capital adjusted for Goodwill | 840,858 | 825,722 |
Debt ratio | 10% | 0% |
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
103
ABOUT STRONGPOINT
| Balance sheet | 0-6 | 6-12 | 1-2 | 2-3 | more than 3 | ||
| KNOK | amount | months | months | year | year | years | Undefined |
Secured loans (long and short term interest-bearing debt) | 12,910 | 5,802 | 2,125 | 3,726 | 1,256 | - | - |
Secured loans, interest | IA | 114 | 56 | 54 | 11 | IA | - |
Overdraft (short term interest-bearing debt) ¹ | 94,153 | - | - | - | - | - | 94,153 |
Overdraft, interest | IA | - | - | - | - | IA | - |
Leasing (long term and short term debt) | 97,829 | 7,207 | 7,109 | 16,806 | 15,061 | 51,646 | - |
Leasing, interest | IA | 2,090 | 2,068 | 3,371 | 2,618 | IA | - |
Other long term debt | 1,848 | 1,848 | - | ||||
Accounts payable | 156,622 | 156,622 | - | - | - | - | - |
Net liabilities financial instruments | 363,362 | 171,835 | 11,358 | 25,805 | 18,947 | 51,646 | 94,153 |
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
AT A GLANCE
Product segments
Markets
Sensitivity currency exposure; | KNOK |
SEK weakened by 10% against EUR | 1 |
SEK weakened by 10% against GBP | - |
SEK weakened by 10% against USD | 67 |
NOK weakened by 10% against SEK | 231 |
NOK weakened by 10% against EUR | 180 |
NOK weakened by 10% against GBP | 73 |
NOK weakened by 10% against USD | 2,856 |
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
104
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
2023 | 2022 | |||
| KNOK | Sale | Purchase | Sale | Purchase |
Spok AS | 345 | 3,433 | 290 | 3,628 |
Future of grocery retail
| Fair value measurement using | |||
| Significant | |||
| unobservable | |||
| Date of valuation | Total | inputs (Level 3) | |
| Assets measured at fair value: | |||
| Financial assets | |||
Cash | 31 December 2023 | 39,340 | 39,340 |
Accounts receivable | 31 December 2023 | 240,790 | 240,790 |
Other long term investments | 31 December 2023 | 4,001 | 4,001 |
| Financial debts | |||
Accounts payable | 31 December 2023 | -159,690 | -156,622 |
Bank loans | 31 December 2023 | -12,944 | -12,944 |
AT A GLANCE
2023 | 2022 | |||
| KNOK | Receivables | Debt | Receivables | Debt |
Spok AS | - | 274 | - | 7 |
StrongPoint Cash Tech S.L. (became a subsidiary in 2023) | - | - | 13,668 | - |
Product segments
Markets
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
105
ABOUT STRONGPOINT
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Company | Adress | Main area of business | Share of votes | Stake | ||
| StrongPoint AS | Oslo | Service and product provider | 100% | 100% | ||
StrongPoint AB | Göteborg (Sweden) | Service and product provider | 100% | 100% | ||
| StrongPoint UAB | 2 | Vilnius (Lithuania) | Service and product provider | 100% | 100% | |
| StrongPoint S.L.U | 3 | Spain | Service and product provider | 100% | 100% | |
StrongPoint E-com AB | Täby (Sweden) | Production and sales | 100% | 100% | ||
| Air Link Group Ltd | Birmingham (UK) | Service and product provider | 100% | 100% | ||
StrongPoint Hamari Oy | Finland | Service and product provider | 100% | 100% | ||
StrongPoint Investering AS | Oslo | Investment company | 100% | 100% |
Future of grocery retail
AT A GLANCE
Product segments
Markets
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
2023 | 2022 | ||||||||||||||
Average exchange rate | Exchange rate | Exchange rate | |||||||||||||
January | February | March | April | May | June | July | August | September | October | November | December | 31.12. | Average | 31.12. | |
SEK | 0.956 | 0.981 | 1.005 | 1.017 | 1.032 | 1.003 | 0.975 | 0.966 | 0.967 | 0.998 | 1.022 | 1.029 | 1.013 | 0.951 | 0.945 |
Euro | 10.715 | 10.953 | 11.286 | 11.527 | 11.723 | 11.716 | 11.347 | 11.413 | 11.453 | 11.628 | 11.796 | 11.533 | 11.241 | 10.102 | 10.514 |
GBP | 12.147 | 12.369 | 12.798 | 13.076 | 13.465 | 13.646 | 13.218 | 13.288 | 13.293 | 13.397 | 13.551 | 13.386 | 12.934 | 11.847 | 11.854 |
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint ASA | Annual Report 2023
106
ABOUT STRONGPOINT
About StrongPoint
(KNOK) | 2023 | 2022 |
Earnout Hamari | 1,686 | - |
Rental deposit | 162 | - |
Balance 31.12 | 1,848 | - |
Of which long term provisions | 1,848 | - |
Our WHY statement
Key figures 2021-2023
No. | Name | No. of shares | % |
1 | STRØMSTANGEN AS | 3,933,092 | 8.76 |
2 | SOLE ACTIVE AS | 2,221,717 | 4.95 |
3 | V. EIENDOM HOLDING AS | 1,865,000 | 4.15 |
4 | PICTET & CIE (EUROPE) S.A. | 1,791,821 | 3.99 |
5 | HSBC BANK PLC | 1,533,890 | 3.42 |
6 | ZETTERBERG, GEORG (incl. fully owned companies) | 1,480,000 | 3.30 |
7 | NORDNET BANK AB | 1,416,833 | 3.16 |
8 | AVANZA BANK AB | 1,265,709 | 2.82 |
9 | VERDADERO AS | 1,224,407 | 2.73 |
10 | RING, JAN | 1,204,078 | 2.68 |
11 | SKANDINAVISKA ENSKILDA BANKEN AB | 960,620 | 2.14 |
12 | EVENSEN, TOR COLKA | 876,000 | 1.95 |
13 | WAALER AS | 702,000 | 1.56 |
14 | HAUSTA INVESTOR AS | 700,000 | 1.56 |
15 | JOHANSEN, STEIN | 600,000 | 1.34 |
16 | TOHATT AS | 575,000 | 1.28 |
17 | MP PENSJON PK | 561,402 | 1.25 |
18 | BANQUE PICTET & CIE SA | 559,746 | 1.25 |
19 | ALS KINGFISHER LIMITED | 506,156 | 1.13 |
20 | EUROPEAN RETAIL ENGINEERING LIMITED | 506,156 | 1.13 |
Sum 20 largest shareholders | 24,483,627 | 54.54 | |
Sum 2 367 other shareholders | 20,404,725 | 45.46 | |
Sum all 2 387 shareholders | 44,888,352 | 100.00 |
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
Note 23: Earnings per share
KNOK | 2023 | 2022 |
Profit for the year | -34,200 | 29,105 |
| Weighed average number of shares during the year | ||
Basic | 44,397,547 | 44,260,195 |
Effect of dilutive share based incentive plans | 3,422,500 | 2,668,750 |
Diluted | 47,820,047 | 46,928,945 |
| Earnings per share (NOK) | ||
Basic | -0.77 | 0.66 |
Diluted | -0.77 | 0.62 |
| The options are antidilutive due to the deficit in 2023 | ||
Number of outstanding shares (numbers in thousand) | 2023 | 2022 |
01.01: Number of shares (after deductions for own shares) | 44,304 | 43,788 |
New shares | 512 | |
Sale of own shares during the year | 234 | 594 |
Purchase of own shares during the year | -591 | |
31.12: Number of shares (after deductions for 350.4 thousand own shares) | 44,538 | 44,304 |
AT A GLANCE
Product segments
Markets
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
107
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
StrongPoint must allocate the cost price of acquired entities to acquired assets and transferred debts
based on estimated fair value. Significant intangible assets that StrongPoint has recognized
includes customer contracts, customer base, brands, own technology and commitments in relation to
any royalty agreements entered into. Assumptions taken into account when valuing assets include,
but are not limited to, the replacement cost of fixed assets and fair value. The management’s
estimates of fair value are based on assumptions that are considered to be reasonable, but that are
by nature uncertain. As a result the actual results may differ from the estimates. Depreciation periods
and amounts are given in note 11.
Management prepare a Key Audit Matter report to the Audit Committee at least every 6 months,
where major estimates are discussed and agreed.
Goodwill and brands as stated on the balance sheet are evaluated for impairment whenever there
are indications of impairment, at least annually. The valuation is based on value in use when
discounting expected future cash flows. The valuation is carried out with starting points in next year’s
budget and in a forecast for the next four years. Next, a terminal value is calculated based on 2.5%
growth in net cash flow. The most sensitive assumption used in the estimates is that of future turnover
growth, but EBITDA and discount rate are also important. The assumptions and sensitivity analysis
are detailed in note 11.
The management has used estimates and assessments when making provisions for obsolete stock
and future warranty costs. The provisions have been made with basis in a historical assessment of
provision requirements, past figures for returns and under-warranty repairs and the age distribution of
stock. Further details are provided in note 12 for stock and note 27 for warranty provisions.
Number of shares | Share capital | |||
KNOK | 2023 | 2022 | 2023 | 2022 |
Ordinary shares 01.01 | 44,888 | 44,376 | 27,831 | 27,513 |
Ordinary shares 31.12 | 44,888 | 44,888 | 27,831 | 27,831 |
Numbers in 1000 | 2023 | 2022 |
01.01 | 585 | 588 |
Purchase of own shares | 591 | |
Sales of own shares | -234 | -594 |
31.12 | 350 | 585 |
Nominal value | 0.62 | 0.62 |
Own shares specified in equity (KNOK): | 217 | 362 |
StrongPoint ASA | Annual Report 2023
108
ABOUT STRONGPOINT
About StrongPoint
| Consolidated income | ||||||
| Deferred tax assets | Deferred tax liabilities | statement | ||||
KNOK | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Current assets | 665 | 631 | 3,756 | 4,271 | -926 | -1,542 |
Liabilities | 4,393 | 3,092 | -2,318 | -3,185 | -2,169 | -642 |
Fixed assets | 248 | 347 | -18,219 | -18,301 | -532 | -3,048 |
Losses carried forward | 25,800 | 16,855 | -1,331 | -3,783 | -11,397 | -2,542 |
Deferred tax | 31,106 | 20,925 | -18,111 | -20,997 | -15,023 | -7,774 |
Our WHY statement
KNOK | 2023 | 2022 |
Tax payable | 3,891 | 16,108 |
Tax items relating to previous years | - | 726 |
Change in deferred tax | -15,023 | -7,774 |
Tax expense | -11,132 | 9,060 |
Included as tax expense in the financial statements | -11,132 | 9,060 |
Reconciliation of the nominal tax rate | 22% | 22% |
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
KNOK | 2023 | 2022 |
Profit before tax | -45,331 | 38,165 |
Tax calculated at a rate of 22% | -9,973 | 8,396 |
Taxes related to companies in other countries with other tax rate | -2,347 | -2,926 |
Non-taxable items (22% of permanent differences) | 884 | 2,345 |
Unrecognised deferred tax asset | 304 | 1,245 |
Tax expense | -11,132 | 9,060 |
AT A GLANCE
Product segments
Markets
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
109
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Note 28: Macro perspectives influencing the business
Climate
Global climate changes influence both StrongPoint, customers and suppliers in different ways,
contributing to both risks and opportunities.
Climate risks are related especially to shortage of energy for the production and distribution of
goods, both proprietary solutions and third party products. If climate changes requires dramatic
changes in the energy consumption, this will influence StrongPoints ability to produce the products.
Hardware represents 49% of the business. Risk is also related to shortages on food, which will affect
the customers of StrongPoint, and shortages of raw materials for specific components. Management
does not see this as a risk in the short term.
Climate opportunities are linked to both StrongPoint solutions that can reduce energy consumption,
like AutoStore storage of frozen goods. StrongPoint Air Link (UK/Ireland) are providing refurbishment
of interior or point of sales physical installation, and this can contribute positive to climate if utilised in
other markets.
KNOK | 2023 | 2022 |
Holiday pay owed | 20,328 | 17,716 |
Accrued expenses | 32,179 | 28,467 |
Deferred income | 62,520 | 73,550 |
Warranty provisions | 1,232 | 2,149 |
Other short term debt | 15,534 | 11,557 |
Total other short term debt | 131,794 | 133,439 |
Warranty provisions (KNOK) | 2023 | 2022 |
Balance 01.01 | 2,149 | 1,883 |
Provision | 1,215 | 4,060 |
Currency differences | 154 | -56 |
Used | -2,287 | -3,737 |
Balance 31.12 | 1,232 | 2,149 |
Of which warranties due within 1 year | 1,232 | 2,149 |
110
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Income statement StrongPoint ASA
KNOK Note 2023 2022
Other operating income 3 17,392 14,983
Payroll 2 26,535 23,756
Depreciation 5 28 28
Other operating expenses 2 6,899 21,275
Total operating expenses 33,462 45,058
Operating profit -16,070 -30,075
Financial items 6 21,276 26,909
Profit before tax 5,206 -3,166
Income tax expense 12 -1,931 -1,109
Net income 7,137 -2,057
Distributions
Transfer to / from other equity 8 7,137 -41,931
Proposed dividend 8 - 39,873
Total distributions 7,137 -2,057
111
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Balance sheet
Oslo, 14 March 2024
Morthen Johannessen
Chairman
Ingeborg Molden Hegstad
Director
Cathrine Laksfoss
Director
Audun Nordtveit
Director
Peter Wirén
Director
Jacob Tveraabak
CEO
KNOK Note 31.12.2023 31.12.2022
ASSETS
Tangible assets 5 36 38
Investments in subsidiaries 10 452,838 441,898
Loans to group companies 114,981 78,223
Other long term investments 11 1,700 5,701
Deferred tax 12 4,537 2,606
Total fixed assets 574,091 528,465
Group receivables 77,567 62,787
Prepaid expenses 3,715 8,972
Other short term receivables - 1,420
Total current assets 81,281 73,178
TOTAL ASSETS 655,373 601,643
KNOK Note 31.12.2023 31.12.2022
EQUITY AND LIABILITIES
Share capital 7.8 27,831 27,831
Treasury shares 8 -217 -362
Other equity 8 379,867 364,052
Total equity 407,481 391,520
Current liabilities to credit institutions 9 234,334 156,980
Short term liabilities to group companies 660 533
Accounts payable 6,912 7,924
Public duties payable 361 209
Proposed dividend - 39,873
Other short term liabilities 4 5,625 4,604
Total short term liabilities 247,892 210,123
Total liabilities 247,892 210,123
TOTAL EQUITY AND LIABILITIES 655,373 601,643
112
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Cash flow statement
KNOK Note 2023 2022
Cash flow from operational activities
Ordinary profit before tax 5,206 -3,166
Ordinary depreciation 5 28 28
Share Option Program 6,395 5,079
Profit/loss from divestment 1,420 -87
Change in accounts receivables - 34
Change in accounts payable -1,012 4,268
Change in short term group accounts -51,411 -59,078
Change in other accrued items 2,729 -6,094
Net cash flow from operational activities -36,645 -59,016
Cash flow from investment activities
Payments for fixed assets 5 -26 -27
Net effect divestment - 19,641
Net effect acquisitions -3,266 -93,646
Net cash flow from investment activities -3,292 -74,032
Cash flow from financing activities
Purchase / Sale of treasury shares 8 2,518 -10,278
Dividend paid -39,935 -34,991
Change in overdraft 77,354 156,980
Net cash flow from financing activities 39,937 111,711
Net cash flow in the period - -21,337
Cash and cash equivalents at 01.01 - 21,337
Cash and cash equivalents at 31.12 - -
113
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Note 1: Accounting principles
The financial statements, prepared by the company’s Board and management, should be interpreted
in light of the Directors’ report. The financial statements comprise income statement, balance sheet,
cash flow statement and notes and have been prepared in accordance with laws and generally
accepted accounting principles in Norway.
Basic Principles
Assets intended for permanent ownership or use are classified as fixed assets. Other assets are
classified as current assets. Receivables due within one year are classified as current assets. Similar
criteria are applied when classififying short term and long term liabilities.
Fixed assets are valued at the acquisition cost less accumulated depreciation. If the fair value of
fixed assets is lower than the carrying amount and the reduction is not expected to be temporary, it is
written down to fair value. Fixed assets with limited useful lives are depreciated using the straight line
method over their economic life.
Shares in other companies are recorded using the cost method. Dividends and group contributions
from subsidiaries are recognized in the year the amount is set aside as a liability in the paying
companies. Dividends from other companies are recognized in the year it is paid.
Tangible assets are capitalized and depreciated over the useful life if they have a useful life of more
than 3 years. Maintenance costs are expensed as incurred, while improvements are added to the
tangible assets and depreciated over the remaining useful life.
Current assets are valued at lower of cost or fair value.
Other long term liabilities and short term liabilities are valued at nominal value.
Subsidiaries / associated companies
Subsidiaries and associated companies are valued at cost in the financial statements. The
investments are valued at acquisition cost for the shares unless impairment has been required. It is
written down to fair value if impairment is not considered to be temporary and it is deemed necessary
by generally accepted accounting principles. Impairment losses are reversed when the reasons for
the impairment no longer exists.
Dividends, group contributions and other distributions from subsidiaries are recognized in the same
year as it is booked in the subsidiary’s accounts.
Foreign currency
Transactions in foreign currencies are translated at the exchange rate on the transaction date.
Monetary items in foreign currencies are translated into Norwegian kroner by using the exchange rate
at the balance sheet date. Non-monetary items measured at historical cost in a foreign currency are
translated into Norwegian kroner at the exchange rate on the transaction date. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rate at the time of
measurement. Changes in foreign currency exchange rates are recorded in the accounting period
under other financial items.
Intangible assets
Intangible assets purchased individually are capitalized at cost. Intangible assets obtained through
acquisitions are capitalized at cost when the criteria for capitalization are met.
Intangible assets with a limited useful life are depreciated according to a schedule. Intangible assets
are written down to fair value if the expected economic benefits do not cover the carrying value and
any remaining production expenses.
Pensions
The company has a statutory obligatory company pension scheme for its employees. The company
pension scheme meets the requirements of the law.
Receivables
Accounts receivables and other receivables are stated at nominal value less provisions for expected
losses. Provisions for losses are based on an individual assessment of each receivable. For others
receivables, a general provision is made to cover any expected losses.
Bank deposits, cash etc.
Cash and cash equivalents include cash, bank deposits and other forms of payment that become due
within three months of acquisition.
Tax
Tax related to equity transactions are recorded in equity. Tax expensed comprises tax payable (tax on
the taxable income for the year) and changes in net deferred tax. Deferred tax is calculated at 22% on
the basis of temporary differences between accounting and tax values and tax losses carried forward
at year end. Taxable and deductible temporary differences that reverse or may reverse in the same
period are netted. Other deductible temporary differences is not assessed, but recognized on the
balance sheet if it is likely that the company can utilize them and net recorded if appropriate. Deferred
tax and deferred tax assets are presented at net value in the balance sheet.
Cash flow statement
The cash flow statement is prepared using the indirect method. Cash and cash equivalents include
cash, bank deposits and other short term liquid investments.
114
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Note 2: Payroll, number of employees, benefits, loans to
employees, etc.
With regard to salary and remuneration to the Executive Management Team and Board members,
reference is made to Note 9 Salaries and remuneration for Executive Management Team and
Directors in the consolidated financial statements and the separate Remuneration report.
Remuneration to Ernst & Young for audit and audit-related services in 2023 was KNOK 650 (against
KNOK 520 in 2022). Remuneration for other services was KNOK 115 (against KNOK 192 in 2022).
Note 3: Other operating income
Note 4: Other short term debt
Note 5: Tangible assets
Note 6: Other financial items
Payroll (KNOK) 2023 2022
Salaries 16,055 16,209
Social fee 2,345 1,333
Pension costs 941 640
Options 6,827 5,420
Other benefits 367 154
Total 26,535 23,756
Number of full-time equivalents employed during the year: 4 4
Number of employees at the end of the year: 4 4
KNOK 2023 2022
Received management fee from Norwegian subsidiaries 4,350 5,000
Received management fee from Swedish subsidiaries 4,350 4,727
Received management fee from other subsidiaries 8,692 5,257
Total operating income 17,392 14,983
KNOK 2023 2022
Holiday pay owed 986 953
Accrued expenses 2,954 3,651
Earnout Hamari 1,686 -
Total other short term debt 5,625 4,604
KNOK 2023 2022
Acquisition costs 01.01 1,983 1,957
Acquired 26 27
Acquisition costs 31.12 2,009 1,983
Accumulated depreciations 01.01 1,945 1,917
Depreciations of the year 28 28
Accumulated depreciations 31.12 1,973 1,945
Book value per 31.12 36 38
Useful economic life 3 years
Depreciation method Linear
KNOK 2023 2022
Interest income from group companies 5,734 1,294
Other interest income 1,605 629
Group contributions received from subsidiaries - 13,480
Dividend received from associated companies 300 200
Currency gains 9,617 4,479
Dividend from subsidiaries 16,954 9,822
Profit on sale of subsidiaries - 1,587
Other - 31
Total financial income 34,210 31,522
Other interest expenses 10,601 2,395
Currency loss 742 541
Loss on investment in subsidiaries 1,420 1,500
Other financial expenses 170 176
Total financial expenses 12,933 4,613
Net financial items 21,276 26,909
115
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Note 7: Share capital and shareholder information
The company’s share capital per 31.12.2023 comprises the following share classes:
Overview of shareholders per 31.12.2023
Note 8: Equity
Own shares:
Per 31.12.2023 the company owned 350,404 own shares. Cost price of these was KNOK 7,329.6,
giving an average share price of NOK 20.90.
It was paid KNOK 39,935 in dividend in 2023, which was NOK 0.90 per share.
Number Nominal value Book value
Shares 44,888,352 0.62 27,830,778
Total 44,888,352 27,830,778
No. Name No. of shares %
1 STRØMSTANGEN AS 3,933,092 8.8
2 SOLE ACTIVE AS 2,221,717 4.9
3 V. EIENDOM HOLDING AS 1,865,000 4.2
4 PICTET & CIE (EUROPE) S.A. 1,791,821 4.0
5 HSBC BANK PLC 1,533,890 3.4
6 ZETTERBERG, GEORG (incl. fully owned companies) 1,480,000 3.3
7 NORDNET BANK AB 1,416,833 3.2
8 AVANZA BANK AB 1,265,709 2.8
9 VERDADERO AS 1,224,407 2.7
10 RING, JAN 1,204,078 2.7
11 SKANDINAVISKA ENSKILDA BANKEN AB 960,620 2.1
12 EVENSEN, TOR COLKA 876,000 2.0
13 WAALER AS 702,000 1.6
14 HAUSTA INVESTOR AS 700,000 1.6
15 JOHANSEN, STEIN 600,000 1.3
16 TOHATT AS 575,000 1.3
17 MP PENSJON PK 561,402 1.3
18 BANQUE PICTET & CIE SA 559,746 1.2
19 ALS KINGFISHER LIMITED 506,156 1.1
20 EUROPEAN RETAIL ENGINEERING LIMITED 506,156 1.1
Sum 20 largest shareholders 24,483,627 54.5
Sum 2,367 other shareholders 20,404,725 45.5
Sum all 2,387 shareholders 44,888,352 100.0
KNOK
Share
capital
Treasury
shares
Share
Option
Program
Other
equity
Total
2023
Equity per 01.01 27,831 -362 11,301 352,748 391,520
Change of equity for the year:
Acquisition of Hamari paid in shares 72 1,821 1,892
Change in dividend 2022 paid in 2023 -61 -61
Sale of own shares 74 2,444 2,518
Share Option Program 4,475 4,475
Profit for the year 7,137 7,137
Equity per 31.12 27,831 -217 15,776 364,088 407,481
Numbers in thousand 2023 2022
01.01 585 588
Sale of own shares -234 -594
Purchase of own shares - 591
31.12 350 585
Nominal value 0.62 0.62
Treasury shares specified in equity (KNOK) 217 362
116
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Note 9: Interest-bearing debt
Debts and terms of borrowing
The group’s main bank has covenants on the relationship between EBITDA and net interest-bearing debt. The group is not
in breach of the terms pr. 31.12.23.
The loans are secured.
Loan security per 31.12.2023
* The foreign companies liabilities are limited to the amount the guarantor at any time has drawn.
Note 10: Shares in subsidiaries
Note 11: Other long term investment
Distribution repayment loans (KNOK) 2023 2022
Debt, not time-restricted (group credit account) 234,334 156,980
Total short term liabilities to credit institutions 234,334 156,980
Lender (KNOK) 2023 2022 Borrowing terms Interest terms
Multi-currency, group credit account 234,334 156,980 Overdraft limit
MNOK 150, not
time limited
5.13%
Total interest-bearing debt 234,334 156,980
Asset (KNOK)
Book value / nominal
security
Co-surety Norway, Sweden, The Baltics and UK * 150,000
Company Address Main area of business Stake Book Value
StrongPoint AS Oslo Service and product provider 100% 37,942
StrongPoint AB Malmö (Sweden) Service and product provider 100% 139,224
StrongPoint UAB Vilnius (Lithuania) Service and product provider 100% 20,348
StrongPoint S.L.U. Madrid (Spain) Service and product provider 100% 69,033
StrongPoint E-com AB Täby (Sweden) Service and product provider 100% 58,864
Air Link Group Ltd Birmingham (UK) Service and product provider 100% 116,488
StrongPoint Investering AS Oslo Investment company 100% 4,001
StrongPoint Hamari Oy Finland Service and product provider 100% 6,939
Total 452,838
Company Main area of business Stake Book Value
Spok AS Service company 50% 1,700
Total 1,700
117
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Note 12: Tax expense
Deferred tax assets are recognized on the balance sheet, as they are expected to be utilised through
future group contribution from subsidiaries in Norway.
Note 13: Cash and cash equivalents
The parent company shares an overdraft facility with the rest of the group. The group as whole may
withdraw up to KNOK 150 000 from the group’s overdraft facility.
Note 14: Macro perspectives influencing the business
Climate
Global climate changes influence both StrongPoint, customers and suppliers in different ways,
contributing to both risks and opportunities.
Climate risks are related especially to shortage of energy for the production and distribution of
goods, both proprietary solutions and third party products. If climate changes requires dramatic
changes in the energy consumption, this will influence StrongPoint’s ability to produce the products.
Hardware represents 49% of the business. Risk is also related to shortages on food, which will affect
the customers of StrongPoint, and shortages of raw materials for specific components. Management
does not see this as a risk in the short term.
Climate opportunities are linked to both StrongPoint solutions that can reduce energy consumption,
like AutoStore storage of frozen goods. StrongPoint Air Link (UK/Ireland) are providing refurbishment
of interior or point of sales physical installation, and this can contribute positive to climate if utilised in
other markets.
Tax expenses for the year are as follows (KNOK): 2023 2022
Change in deferred tax -1,931 -1,109
Tax expense ordinary profit -1,931 -1,109
Tax expense -1,931 -1,109
Reconciliation from nominal to actual tax rate (KNOK): 2023 2022
Ordinary profit before tax 5,206 -3,166
Expected income tax based on nominal rate of tax 22% 1,145 -696
Tax effect of the following items:
Permanent differences -3,076 -412
Tax expense -1,931 -1,109
Effective tax rate -37.1% 35.0%
Overview of deferred tax assets (KNOK): 2023 2022
Fixed assets -150 -194
Liabilities -18,128 -11,733
Profit and loss account 66 83
Losses carried forward -2,410 -
Net negative differences -20,621 -11,844
Deferred tax assets 4,537 2,606
KNOK 2023 2022
Unused overdraft facility 55,847 77,863
Cash and cash flow in the cash flow statement - -
118
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Responsibility statement
We confirm that, to the best of our knowledge, the consolidated financial statements for the year
ended 31 December 2023 have been prepared in accordance with IFRS as adopted by the EU, that
the financial statements for the parent company for the year ended 31 December 2023 have been
prepared in accordance with the Norwegian Accounting Act, that they give a true and fair view of the
Company’s and Group’s assets, liabilities, financial position and results of operations, and that the
Report of the Board of Directors gives a true and fair review of the development, performance and
financial position of the Company and the Group and includes a description of the principle risks and
uncertainties that they face.
Oslo, 14 March 2024
Morthen Johannessen
Chairman
Ingeborg Molden Hegstad
Director
Cathrine Laksfoss
Director
Audun Nordtveit
Director
Peter Wirén
Director
Jacob Tveraabak
CEO
119
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Auditor’s report
Statsautoriserte revisorer
Ernst & Young AS
Stortorvet 7
, 0155 Oslo
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0107 Oslo
Foretaksregisteret: NO 976 389 387
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Tlf: +47 24 00 24 00
www.ey.no
Medlemmer av Den norske
Revisorforening
A member firm of Ernst & Young Global Limited
INDEPENDENT AUDITOR'S REPORT
To the Annual Shareholders' Meeting of Strongpoint ASA
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Strongpoint ASA (the Company) which comprise the financial
statements of the Company and the consolidated financial statements of the Company and its
subsidiaries (the Group). The financial statements of the Company comprise the balance sheet as at 31
December 2023 and the income statement, statement of comprehensive income, statement of cash flows
and statement of changes in equity for the year then ended and notes to the financial statements,
including a summary of significant accounting policies. The consolidated financial statements of the
Group comprise the balance sheet as at 31 December 2023, the income statement, statement of
comprehensive income, statement of cash flows and statement of changes in equity for the year then
ended and notes to the financial statements, including material accounting policy information.
In our opinion
• the financial statements comply with applicable legal requirements,
• the financial statements give a true and fair view of the financial position of the Company as at 31
December 2023 and its financial performance and cash flows for the year then ended in
accordance with simplified application of international accounting standards according to section
3-9 of the Norwegian Accounting Act,
• the consolidated financial statements give a true and fair view of the financial position of the
Group as at 31 December 2023 and its financial performance and cash flows for the year then
ended in accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the audit committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the financial statements section of our report. We are independent of the Company and the Group in
accordance with the requirements of the relevant laws and regulations in Norway and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 23 years from the election by the general meeting of the
shareholders in 2000.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements for 2023. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
2
Independent auditor's report - Strongpoint ASA 2023
A member firm of Ernst & Young Global Limited
opinion on these matters. For each matter below, our description of how our audit addressed the matter is
provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement
of the financial statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the financial statements.
Impairment of goodwill, brands and shares in subsidiaries
Basis for the key audit matter
Total goodwill and intangible assets in the
consolidated financial statement amounts to
MNOK 299,6 in 2023, which is 29,5% of total
assets. Shares in subsidiaries in the financial
statement of the parent company amounts to
MNOK 452,8 which is 69% of total assets.
Management performs an annual impairment test
of goodwill and brands with indefinite useful life.
Impairment loss is recognized if the carrying
value exceeds the recoverable amount.
Recoverable amount is measured as value in use
calculated based on discounted future cash
flows. The estimates require considerable insight
and judgement from management and
uncertainty will exist with respect to technological
development and market conditions. The
impairment of goodwill, brands and shares in
subsidiaries was a key audit matter due to the
size of the items and the judgment involved in the
estimated future cash flows.
Our audit response
We evaluated the impairment model used and
checked the calculation for mathematically
accuracy. We assessed management’s
assumptions used in the calculations, including
discount rate and estimated cash flows.
Management’s assumptions regarding future
cash flows were compared to historical actual
numbers. The weighted average cost of capital
used as discount rate in the impairment
assessment was compared to external data on
risk-free rate of interest, market risk premiums,
beta and capital structure in comparable entities.
Sensitivity in changes in main assumptions are
analyzed and reviewed.
We refer to note 11 and note 25 in the
consolidated financial statement and note 10 in
the separate financial statement.
Other information
Other information consists of the information included in the annual report other than the financial
statements and our auditor’s report thereon. Management (the board of directors and CEO) is responsible
for the other information. Our opinion on the financial statements does not cover the other information,
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information,
and, in doing so, consider whether the board of directors’ report, the statement on corporate governance
and the statement on corporate social responsibility contain the information required by applicable legal
requirements and whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that the other information is materially inconsistent with the
financial statements, there is a material misstatement in this other information or that the information
required by applicable legal requirements is not included in the board of directors’ report, the statement
on corporate governance or the statement on corporate social responsibility, we are required to report
that fact.
120
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Auditor’s report
3
Independent auditor's report - Strongpoint ASA 2023
A member firm of Ernst & Young Global Limited
We have nothing to report in this regard, and in our opinion, the board of directors’ report, the statement
on corporate governance and the statement on corporate social responsibility are consistent with the
financial statements and contain the information required by applicable legal requirements.
Responsibilities of management for the financial statements
Management is responsible for the preparation of the financial statements of the Company that give a
true and fair view in accordance with simplified application of international accounting standards
according to section 3-9 of the Norwegian Accounting Act, and for the preparation of the consolidated
financial statements of the Group that give a true and fair view in accordance with IFRS Accounting
Standards as adopted by the EU. Management is responsible for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the
Company or the Group, or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s and the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s and the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company and the Group to cease to continue as a going concern.
4
Independent auditor's report - Strongpoint ASA 2023
A member firm of Ernst & Young Global Limited
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group audit.
We remain solely responsible for our audit opinion.
We communicate with the board of directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the board of directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirement
Report on compliance with regulation on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Strongpoint ASA we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the
annual report, with the file name StrongPoint 2023 12 31 en, have been prepared, in all material respects,
in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the
European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the
Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual
report in XHTML format and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material
respects, in compliance with the ESEF Regulation.
Management’s responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF
Regulation. This responsibility comprises an adequate process and such internal control as management
determines is necessary.
Auditor’s responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material
respects, the financial statements included in the annual report have been prepared in accordance with
the ESEF Regulation. We conduct our work in accordance with the International Standard for Assurance
Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of historical financial
information”. The standard requires us to plan and perform procedures to obtain reasonable assurance
about whether the financial statements included in the annual report have been prepared in accordance
with the ESEF Regulation.
121
StrongPoint ASA | Annual Report 2023
ABOUT STRONGPOINT
About StrongPoint
Our WHY statement
Key figures 2021-2023
CEO statement
Company strategy
People & organization
2023 Highlights
Future of grocery retail
ESG
Retail technology with responsibility
About the ESG report
About StrongPoint
StrongPoint’s approach to sustainability
Reporting on material topics
AT A GLANCE
Product segments
Markets
GOVERNANCE
Board of Directors’ report
Corporate Governance
Statement on equality and non-discrimination
FINANCIAL STATEMENTS
Consolidated Financial Statements with notes
Financial Statements StrongPoint ASA with notes
Auditor’s report
Auditor’s report
5
Independent auditor's report - Strongpoint ASA 2023
A member firm of Ernst & Young Global Limited
As part of our work, we perform procedures to obtain an understanding of the company’s processes for
preparing the financial statements in accordance with the ESEF Regulation. We test whether the financial
statements are presented in XHTML-format. We evaluate the completeness and accuracy of the iXBRL
tagging of the consolidated financial statements and assess management’s use of judgement. Our
procedures include reconciliation of the iXBRL tagged data with the audited financial statements in
human-readable format. We believe that the evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Oslo, 14 March 2024
ERNST & YOUNG AS
The auditor's report is signed electronically
Finn Espen Sellæg
State Authorised Public Accountant (Norway)
StrongPoint ASA | Brynsengveien 10, 0667 Oslo | Tel: +47 934 03 254 | strongpoint.com