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WELCOME TO PSI GROUP`s CAPITAL MARKETS DAY

Tuesday, 23 September 2008 Shippingklubben, Oslo/Norway

Agenda:

PSI number one in retail technology


The merger in brief Vision and strategy The new PSI Group shapes up Financial status (1H 2008) Retail Solutions Cash Management Retail Cash Management CIT/ATM Summary and Q&A

The PSI CashGuard merger rationale


Utilize Size, home market domination and track record for further growth Growth potential in Scandinavia Expansion in Europe Wanted by larger customers / prospects Ownership to technolgy Proprietary unique technology Signifacant synergies One public company Partner channel strategy Cross sales Guiding 2008: MNOK 600-650, EBITDA 10-12 percent

Business Mission

Making life easier and safer for retail employees and their customers
Remain the leading global provider of closed cash-management solutions to worldwide markets and expand as a leading local provider of retail-/industrial solutions in selected geographical markets.

Business goals & strategy


PSI overall strategy and overall goal is increased customer value, increased ownership to technology, and increased competitive barriers. On a substantial yearly basis, PSI will invest all resources necessary, in order to stay technologically [market driven], ahead in the segments Cash Management Retail and Cash Management ATM/CIT. PSI will focus on direct vendor relations only, with world leading manufactures of Retail Solutions, in order to remain the leading one-stop shopping supplier in selected geographical segments. All three strategic business segments will offer a complete - and partly mandatory set of after market services, including license fees and consumables, in order to increase the yearly recurring revenue base. All three strategic business segments will communicate and enter into crystal clear channel strategies for the different market segment respectively. All three strategic business segments will offer the most knowledgably and competent staff possible in order to become the best customer partner ever for meeting their needs within our business mission.

A historic perspective on the Group


1986 PSI was established 2000 Contract of almost 700 CashGuard solutions to Post i Butikk 2002 Triple merger iGroup ASA, Cappit ASA og PSI AS 2004 First investments in CashGuard AB kicks-off 2004 Acquisition of Antonson Gruppen AB (PSI Antonson AB) 2006 Spin-off Captura ASA (62:38) 2006 Clear PSI statement of ownership to technology 2006 Buyback of own shares are introduced (total of 10% in 2007) 2007 Break through in Norway with CashGuard 2008 - Merger PSI Group ASA CashGuard AB

Consolidated shareholders

(as of 22 September )

Legal structure
360
PSI Group ASA
InStore IT service

< 50%
PSI Finance AS

100%

SQS AB
SQS GmbH SQS Sarl SQS AS SQS Ltd

CashGuard AB
CashGuard GmbH CashGuard SAS

PSI Antonson AB

PSI Systems AS
PSI Media Sol. AS PSI Media GmbH PSI Production AS

120

30

120

90

Three business areas


Retail Solutions
(PSI AS & PSI AB)

Cash Management Retail


(CashGuard AB)

Cash Management CIT & ATM


(SQS AB)

A leading supplier of instore retail technology and complementary services and consumables for the retail segment in Scandinavia

Developing, manufacturing and marketing of world leading technologies for efficient, closed and secure cash handling, through our brand CashGuard.

Developing, manufacturing and marketing of world leading closed cash handling technologies for Cash In Transit and ATMs through our brand SQS.

Strategy accomplishment
As communicated during the last years PSI has as a part of a determined and long term strategy plan focused on aquiring direct ownership of leading technology within cash management and retail The Board of Directors and the Management Team have actively been pursuing this strategy leading to a gradual increase in ownership of such leading technology solutions As a result of the merger PSI Group now has ownership to unique and leading technology proving essential access to new customer segments and markets

Strategy accomplishment
-> Now PSI is the sole provider of complete security solutions for secure cash handling within a closed system, securing cash and valuables throughout the entire transport and distribution chain -> Now PSI is the leading complete provider of security solutions for secure cash handling and management within retail offering not only development and implementation of these solutions, but also on-site service, maintanence, training, support, upgrades etc -> Now PSI is a leading provider of complete security solutions within valuables transports, banking and related industries - Unique security solutions for ATMs including patented technology for eliminating value by dyeing and inking of notes - Unique security solutions within CIT including patented technology for eliminating value by dyeing and inking of notes in security cases - New and patented valuables transport unit (launched in Q3)

PSI Cash Management CIT / ATM

PSI provides complete security solutions for cash handling within a closed system
- securing cash and valuables throughout the entire transport and distribution chain

PSI Cash Management Retail This gives PSI a truly unique and leading position as a provider of complete security solutions to a broad variety of customers in the Nordic region, Europe and worldwide

Cash Management Retail

Cash Management CIT/ATM

CashGuard Note Collectors H1/B4

ATM Steel Safe Extra Security (SSES)

ATM End-to-end

PSI develops and owns leading

TECHNOLOGY
CashGuard Premium SQS-Softcar

CashGuard Blue

Q-Collector 380

Q-Case 380/400/500/550

Leading market position

Selected customer base

A strong position going forward


Unique patented technology and leading solutions
Cash Management Retail and Cash Management CIT / ATM In addition to a broad range of advanced retail technology solutions

Leading expertise as well as strong and decisive capacity to deliver within sales, distribution and service Superior position as market leader in the domestic markets
With substantial growth potentials in the Nordics and the North of Europe

Strategic management with a large capacity to deliver and operational strenght Powered for profitable growth and international expansion
To the benefit of staff, partners, customers and shareholders in both companies

Status 30 June 2008


2.quarter

(Group income statement)

YTD

Full year

Financial aspects
of the completed merger

Merger costs: CashGuard booked merger costs on P&L pre merger PSI Group booked merger costs towards BS No further merger costs will be allocated to P&L Permanent cost reductions and synegies: Personnel reduction 30 FTE Consultants removed CashGuards to be co-located with PSI in PSIs Stockholm office The costs of being a public company Restructuring provisions booked before the merger Potential reductions on BS: Synergies by joint warehouse for CashGuard parts and products Focus on Accounts Receivables

Additional estimated synergies


and cost savings going forward

As a result of the merger PSI Group is managing a larger share of the value chain which is expected to be reflected in a considerably improved gross margin ratio Improved negotiation power vis--vis suppliers, partners and customers Increased potential for cross-sales and revenues synergies a larger company possess higher creditbility with international companies

Status 30 June 2008

(Group balance sheet)

Status 30 June 2008

(Group balance sheet)

Business Combination

(in Balance Sheet)

Independent auditors have made a Purchase Price Allocation on behalf of PSI Group ASA, that allocates the value of CashGuard AB. The variance between the purchase price and the book value of equity has been identified and valued to fair value in PSIs BS. Remaining unidentified value was allocated to Goodwill.

Loss Carry Foreward

(per segment)

Loss Carry Foreward Retail Solutions: mNOK 36 (MNOK 10) Cash Management Retail: MNOK 126 (MNOK 35) Cash Management CIT/ATM: MNOK 76 (MNOK 21) Deferred tax in BS: MNOK 48 Higher in reality as some are booked towards intangible assets, according to IFRS, MNOK 50

Retail Solutions
A leading supplier of retail technology and complementary services and consumables for the retail industry in Scandinavia An unique sales- and distribution system in Scandinavia A solid product and service platform with strong brands A streamlined organisation set for profitable expansion

A historic perspective
on Retail Solutions

Pinns Systems in 1986 - 10 years of rapid expansion Leading Norwegian retail trading company Strategic decision to expand into the Scandinavian market 2004 acquistion of Swedish Antonson (the 1890s) CashGuard, Pricer and Repant added to the portfolio From trading company to a solution oriented company Foundation for strong, profitable and sustainable growth in the Scandinavian markets - especially in Norway and Sweden A key business area within the PSI Group

Retail Solutions
organisation

210
Jrgen Waaler, CEO Anders Nilsen, CFO

PSI Group ASA


InStore IT service

< 50%
PSI Finance AS

100%
Gran Ohls (MD) Jrgen Waaler (MD)

PSI Antonson AB

PSI Systems AS
PSI Media Sol. AS

120

PSI Media GmbH PSI Production AS

90

Retail Solution Financials -

TNOK

PSI Retail Solutions


PSI Cash Management

PSI Recycling

PSI Media Solutions

PSI Trace & Tracking

PSI Retail Solutions


continued

PSI Self Scanning

PSI Scales & Wrapping

PSI Electronic Shelf Labels

PSI Retail Solutions


continued

PSI Consumables Labels Produce utensils, bowls and serving dishes Pricing signs Packaging film Toner, inkjet, TTR Photo Paper Product cleaning solutuions Bank terminal racks Paper, rolls

PSI Cash Management


Customers Segments Grocery Specialty/service/gas Key Selling Points Proven, functional technology Market leader Easier and safer POS management Full control of cash Significant labor cost savings Cash back opportunities (BiB) Improved coin management Superior overall ROI on retail cash management National service & support

PSI Recycling
Customers Segments Grocery Service/convenience/gas Key Selling Points User friendly Cost efficient Reliable National service & support Low maintenance PANTO automatic donation to voluntary organizations

PSI Media MyTV


Customers Segments Grocery Service Gas stations Health sector Financial sector Oil and offshore Arenas malls Defense HORECA Public service

Key Selling Points Complete IP-based DS solution Ownership of the publishing platform Offering customers a complete value chain around DS Recent entry into the German market Cutting edge experience - 15 years in the DS business Recent deal, Byggeriet Forus, Norways largest single store installation

PSI Media MyTV


- PSI offers a complete and modern IP-based solution for interactive presentation of targeted information through the use of TV monitors in-store and in public - With digital signage from PSI, MyTV Media, complete solutions are offered comprising application solutions developed by PSI and related hardware - PSI is fully committed to digital signage through MyTV Media, which is developed and owned by PSI forming a solid platform for potential expansion - The experts expect the market for digital signage to grow strongly in the future - As one of the leading providers of digital signage - PSI recently entered into a frame agreement in Norway covering 100 stores - The market is developing fast both in Norway, Scandinavia and abroad - PSI's digital signage solution has a significant potential both in Norway and abroad - PSI Media Solution GmbH was establihed earlier this year as a joint venture

Norwegian record
Digital signage to Byggeriet in Norway - PSI Group ASA and Mestergruppen AS recently signed an exclusive framework agreement for digital signage to Byggeriets stores in Norway - The intention is that PSI's complete solution for digital signage, MyTV, is to be implemented at all of the chain's stores in Norway in the long term. - PSI makes the largest single implementation of on-screen advertising posters in one store in Norway - A total of 35 large flat-panel displays and projectors plus several interactive terminals - Mestergruppen conducted a thorough analysis and in-depth evaluation of various solutions, before choosing PSIs complete concept in digital signage - A large proportion of deliveries to the stores in Byggeriet will consist of licence application revenues related to the software developed and owned by PSI

Byggeriet sees this as a very exciting, new and modern way in which to communicate with our customers. We believe in this as a means to distinguish ouselves in the marketplace. Furthermore, we expect significant additional sales as well as cost savings through our new Digital Signage concept. We look forward to a long and mutually prosperous relationship between with PSI
[Per Holm, Chain Director Byggeriet]

PSIs positioning
within Digital Signage

Target audience Owner of the advertizing space

PSI
Hardware Service & support Communication mytv - software Project Mgt. Installation User support software

Partners
Editorial content Commercial content/adv. Measurement

PSI Trace & Tracking


Building a leading position within the AutoID-segment Receipt printers Label printers Hand terminals Bar code readers ID card systems POS terminals POS racks

PSI Scales and wrapping


Customers Segments Grocery Service Gas stations Postal service (PIB) Logistical sector

Key Selling Points Digi: 60-70% market share in Norway/Sweden All major grocery chains Complete product ranges SMART Scale software National service & support

PSI Electronic Shelf Labels


Customers Segments Grocery Specialty/service/gas Hardware Building supplies Key Selling Points Market leader Dramatic labor cost savings Superior ROI on pricing management Always correct prices Sophisticated campaign management Embedded logistical information PDA / Digital Signage integration National service & support

PSI Labels

PSI Production with new production facilities


PSI Production has moved into new production facilities at Tangen, outside Oslo. The facilities comprise 4.000 square meters of modern and efficiently designed premises. Through efficient production, leading quality control and highly skilled expertise PSI offers a broad range of labels to the retail customers.

PSI Invests in new printing machines in Sweden


PSI Production in Sweden has invested in two new printing machines allowing PSI to handle larger volumes while improving quality.

Scandinavian Service Organization


PSI Digi installations
136 Technicians

124 Technicians

Digi Systems 75 technicians


(partner)

PSI Services

National phone support center: 0700 - 2300 hours (365/365) In store service: 6 days/week

Satisfied customers
our determination

Grocery chains

Service and specialty stores

Leading market position in the Nordics


with a considerable potential

As a leading provider of advanced

retail technology solutions, PSI is a close - but independent - partner for the customers and chains

(close enough to add substantial value and distant enough to work with all)

The position in Scandinavia


is truly unique as the leading technology and service partner for the retail sector

PSI is the leading provider of secure complete cash management solutions with a market share of approx 90 percent with retail

Norway
substantial growth potential

Totally approx 100 000 Cash Registers (CR) in Norway: Within the food segment the 4 largest represent more than 90 percent of the turnover. The 4 largest within the food segment have approx 20 000 CR in Norway Largest chains / stores: Norgesgruppen (Meny, Spar, Kiwi, Ultra, Joker, Mix etc) Coop (OBS, Mega, Prix, SmartClub etc) Reitan (Rema1000, Narvesen, 7Eleven, YX, Spaceworld) ICA (ICA Maxi, ICA Supermarked, ICA Nr, Rimi)

Approx 2660 stores Approx 1200 stores Approx 1275 stores Approx 650 stores

-> Totally there has been sold approx 4 500 CashGuard systems in Norway -> Equivalent of approx 5 percent of the total Norwegian market potential -> Of this installed base approx 3 500 are sold to the food segment, representing approx 15 percent of the total market potential

Sweden
substantial growth potential

Totally approx 200 000 Cash Registers (CR) in Sweden: Within the food segment the 5 largest represent more than 90 percent of the turnover. The 5 largest within the food segment have approx 40 000 CR in Sweden Largest chains / stores: Ahold/Hakon Invest (Maxi ICA Stormarknad, ICA Supermarket, ICA Kvantum, ICA Nra) Axel Johnson (Axfood, hlens etc) Coop (Forum, Konsum, Nra, Extra, Bygg) Bergendahls (Matppet, Vi, City Gross, Eko, AGs, Maximat, Rtt Pris, stenssons etc) Reitan (Pressbyrn, 7Eleven, Rema1000) -> Totally there has been sold approx 7 000 CashGuard systems in Sweden -> Equivalent of approx 3,5 percent of the total Swedish market potential -> Of this installed base approx 6 000 are sold to the food segment, representing approx 12,5 percent of the total market potential

Great potential for continued success


with CashGuard and Retail Solutions in the Nordics

Substantial potential for increased sales to existing customers in the Nordic region An even greater potential by selling to new customers without CashGuard solutions from PSI Group Tremendous upside for PSI Electronic Shelf Labels
Only 15 percent penetration among the food segment in Norway

Only 12,5 percent penetration among the food segment in Sweden

A leading provider of complete solutions


including service, support and maintenance (on-site)

PSI positioned as a POS-software independent trusted solution partner for the retail sector i Norway and Sweden National on site service capability gives superior and robust customer relationships and recurring long time service income The consumables after market for PSIs capital goods, also yields significant recurring revenue

Status Retail Solutions


2007 was a record year in terms of revenues, profit and deliveries - especially in Norway
o Strong underlying activity level, without any major single sales o Despite somewhat lower growth in 2008, the profitability is still very good o We register a high level of activity with all business areas

PSI in Sweden sees continual high activity and growth in all business areas
o The Swedish market is less affected by single, huge contracts, but rather steady widespread growth o PSI sees increasing demand for the companys solution within all business areas.

Based on a high activity level, PSI believes in major sales in the coming months, both for CashGuard, and all our capital goods We see a general high willingness to investment among major customers

Key operational improvements Q4 and 2009


Implementing bid management function Launching a customizable Web shop Launching a new ERP-system o Improve sales and marketing measurement o Increase synergies between Norway and Sweden Improve SuperOffice CRM system o Increase sales staff productivity Increase sales staff o Recruit additional sales staff for growth Launch the PSI Academy In house continous sales and marketing training program

Cash Management Retail


Ledende utvikler og leverandr av kontantsikringlsninger til detaljhandelen Har kontinuerlig innovasjon og produktutvikling Hy produksjon- og leveringskapasitet Har store internasjonale ekspansjonsmuligheter, utover de geografiske omrdene PSI Cash Management Retail allerede er tilstedevrende

A historic perspective
on Cash Management Retail

1991 CashGuard AB established 2000 First large delivery contract abroad in place (Posten Norge) 2006 CashGuard Blue launched (new secure technology solutions) 2007 Important international delivery and implementation 2007 CashGuard system number 10 000 installed

The organisation
Cash Management Retail

30

Jrgen Waaler
Bjrn Svensson Projects - rollouts Jan sterberg Finance - by PSI

Bjrn Ericsson

Nicklas Strk

Maria von Sdow

Jrgen Waaler

R&D
Mechanical Electroincs Applications Documentation

Service & Support

Production
PartnerTech

Intl Sales & Mkt


CashGuard GmbH CashGuard SAS KAM Team

Income statement
Cash Management Retail

*) For 10 days from 10 June to 30 June

*) Restructuring and merger costs are not included in EBITDA for Q2/2008 (under historic figures)

Cash Management Retail in figures

Synergies and cost savings


Cash Management Retail
CG and PSI is a perfect match also with regard to extracting cost savings both on a Group level as well as on an operative level A considerable restructuring project is in progress in CashGuard AB focussing on cost reductions and increasing the efficiency of the international sales force, making the organisation a more efficient and partner oriented in the international marketplace Costs savings means more resources could be allocated to international expansion Also possible synergies in terms of revenues

Leading technology

Solutions within Cash Management Retail


CashGuard Premium function and design
With its high performance and new design, CashGuard Premium builds on well tested cash handling and logistics technology
CashGuard Premium

CashGuard Blue secure cash 24/7


Combines unique protection and dye technology with well tested technology for efficient and secure cash handling in cash environments
CashGuard Blue

Cashguard Collectors
CashGuard Note Collectors

easy

and secure emptying of cash registers Equipped with electronic shell protection, dye technology and optional tracking

New solutions under development


Working to implement a program for lowering production costs Developing module based production (as well as in Cash Management CIT/ATM) Continously working with adapting the solutions to new currencies following the entrance into new markets Developing new and advanced technology and solutions for emptying and validation Contionus focus on increasing the systems agility to remain the quickest machines on the market

Leading market position in the Nordics


with a considerable potential

PSI is the leading provider of secure and complete cash management solutions with a market share of approx 90 percent within retail Substantial potential for increased sales among new and excisting customers in the Nordic region The estimated sales of CashGuard solutions in Scandinavia are expected to finance the European and international expansion in the future
Only 15 percent penetration among the food segment in Norway Only 12,5 percent penetration among the food segment in Sweden

Market potential
Cash Management Retail in Europe

Top 10 European trading ventures:

15 000 Shops

14 200 Shops

12 000 Shops

10 000 Shops

8 000 Shops

4 000 Shops

3 200 Shops

2 200 Shops

2 000 Shops

1 200 Shops

Existing markets
Germany appr 750 000 CR France appr 750 000 CR The Netherlands appr 225 000 CR Spain appr 830 000 CR Belgium appr 155 000 CR

225* CR 155* CR 752* CR

16 countries in Western Europe together have more than 5 million CR in retail

750* CR

830* CR

* Numbers presented in thousands

Potential markets
Austria 69 000 CR Italy 859 000 CR Greece 154 000 CR Ireland 60 000 CR UK 500 000 CR Switzerland 101 000 CR
60* CR 500* CR

69* CR 101* CR

859* CR 154* CR

* Numbers presented in thousands

Large potential customers in France


Totally approx 750 000 CR within retail: Food Textile/clothes Furniture Pharmacy Electronic stores Approx 250 000 CR Approx 200 000 CR Approx 35 000 CR Approx 35 000 CR Approx 35 000 CR

Within the food segment the 5 largest represent more than 90 percent of the turnover and approx 10 percent of all CR Largest amount of cash registers: Carrefour 19 000 CR ITM 17 000 CR Leclerc 13 000 CR Auchan 7 000 CR Casino 17 000 CR

Hypermarkets is a growing concept


[Hypermarket= an extremely large self-service retail outlet with a warehouse appearance]

Market potential in France


6 067 Shops 19 000 CR Turnover 45,7 billions 7 680 Shops 17 000 CR Turnover 31,5 billions 8 634 Shops 17 000 CR Turnover 17,6 billions 561 Shops 13 000 CR Turnover 29,3 billions 939 Shops 7 000 CR Turnover 35,0 billions

The seven largest players in France

Carrefour

E.Leclerc

ITM Enterprise Groupe Casino Groupe Auchan Systme U

Provera

Source: Euromonitor

Potential related to CashGuard in France


- Casino convienience stores, Carrefour & Intermarch represents the largest potential

Largest potential

CHAIN CASINO CONVIENIENCE CARREFOUR INTERMARCH SYSTME U PICARD SURGELS FRANPRIX LEADER PRICE E.LECLERC GROUPE AUCHAN CASINO SUPERMARCHS MONOPRIX PROVERA - MATCH PROVERA CORA CASINO HYPERMARCHS

NUMBER OF STORES (FRANCHISE) 5000 3500 2750 850 600 605 420 500 500 342 298 172 100 119

Strategy
Push & Pull strategy Develop IT partnerships integrators/editors Address the market & sell through/with partners - retail, vertical Lobby the market consumers, end users, players Address key accounts (retail) - Direct and with/through our partners Build on CashGuard installed base and expertise/experience Position CashGuard France within the complete cash management cycle

Presence in France

Service is outsourced and done via 3rd party service company (cost saving) Accounting/tax is outsourced and done via 3rd party tax consulting company (cost saving) Sales activities done with partners & direct All other functions are done centraly by HQ (e.g. marketing etc.)

Payments market share in France


Credit/debit card development didnt stop cash

Cash Electronic Card Check

More than 360 billions of transactions are paid in cash, 6 out of 7.

Sources : EPC estimations

Cash payments in France and Europe


Cash payments in Europe

Source : European Central Bank

French Market - Competition


Notes unit Multi-notes deposit Notes counterfeit detection help Over notes stock cassette (Dye Ink option!) Coins unit Multi-coins feeder Transfer box Allow notes transfer to Back-Office Count & seal pack solutions for CIT

Market potential in France


Market potential in France
Pilot/Test installations Approx. 100 installations @ Systme U, Casino, Ikea, Approx. 60 Approx. 10 installations within vertical markets Bakeries via Partner Tiega Future Pilot/Test & installations Casino SPAR in Q4 08 and in 2009 Retail Food and Non Food in 2009 Bakery in Q4 08 and in 2009 Tobacco in 2009 Press in 2009 Pharmacy in 2009

French business review


Retail market
2008 Starting phase Systme U - Push on our first installation Casino Supermarket stores New IT integration with LaSer Symag First installation in October Casino Proximity stores - Spar 2 installations, 7 under decision France road show in all regions Ikea - Closed Cash Handling Project follow-up Paris Nord II store on production 21 CG 2009 Launching phase Boost Key Accounts action plan Establish the CG solution in the market 250 CG orders In 3/5 years Development & Replacement phases Benefit from the previous years job impact Continue to act on fairs, marketing and communication

SPAR

Fair

French business review


Bakery market
2008 Starting phase
Partnership agreement First 4 bakeries installed

Tiega

Continue to build our common experience & offer (Services) 10-20 orders with complete Tiega-CG solution Continue to position the Tiega-CG solution in the market Set-up the Tiega-CG sales strategy for 2009 2009 Launching phase Bakery, Pastry, Fast food, Traiteur fair: Sirha (Lyon) January 31st Establish the Tiega-CG solution in the market 80-100 orders with complete Tiega-CG solution In 3 years Development phase Benefit from the 3 years job impact Continue to act on fairs, marketing and communication Reach 400-500 Tiega-CG solutions In 5 years Running & Replacement phases Benefit from the previus actions & results Starting point on the Tiega-CG solutions replacement process Continue to act on fairs , marketing and communication Reach 1500 Tiega-CG solutions
La Tradition Le Manach

Fair

French business review


Tobacco and press market
2008 Starting phase Partnership agreement First installation Continue to build our common experience & offer (Services) Tobacco fair: LosangExpo (Paris) 18-20 October Start new partner relationship for Tobacco 2009 Launching phase Push Devlyx resellers (45) Push and pull the 2 main Press order/delivery companies Position CG solution in the market Reach 20-50 orders with CG solution In 3/5 years Development & Replacement phase Benefit from the previous years job impact Continue to act on fairs, marketing and communication

Le Rallye

Fair

Market requirements
Food retailers Througput/Speed Magical border line - 60 transactions pr. sec. Space for integration Security/Reliability Emptying procedure Price/perfomance Cost saving Go in one step to self-checkout or seperation of scanning & payment State-of-the-art No problem with pilfering Separation of purchasing & payment Owner leaded e.g. for emptying X X X X X X X X X X X X X X X X X X X Bakeries TobaccoPress

Business outlook
Business Outlook in France
Expected vertical business (Bakery, Tobacco & Press) with partner Tiega, Devlyx approx. > 800.000/year Stronger interest/more willingness from retailers for pilots with retail products Strong interest for retail convenience stores 0,5 to 1 million per year Business potential approx.

Wincor Nixdorf, IBM, Gunnebo, NCR, Scan Coin are driving the market with activities (Test installations, marketing campaigns, etc.), especially with real consumers oriented, Self-Check-out and paystations solutions Opportunity for CashGuard to build on its installed base 12 000 solutions

An even more mature German market


Totally approx 750 000 CR within retail: Food Textile/clothes Furniture Pharmacys Electronic stores Approx 300 000 CR Approx 100 000 CR Approx 50 000 CR Approx 45 000 CR Approx 60 000 CR

Germany is the largest market within retail in Europe Discount retailers (Aldi, Lidl, Penny, Plus) are growing strongly Totally there are 39 200 service stores in Germany Largest amount of cash registers: REWE 16 000 CR Tengelmann 13 000 CR Metro 12 000 CR Aldi 12 000 CR Edeka 33 000 CR

Market potential in Germany


6.500 Shops 16 000 CR Turnover 31,00 billions 2.700Shops 13 000 CR Turnover 14 billions 1.700Shops 12 000 CR Turnover 32,1 billions 4.100 Shops 12 000 CR Turnover 21,7 billions 11.000 Shops 33 000 CR Turnover 35,7 billions

Market potential
- Other important markets in Germany

German market overview in general


In 2007 total German market revenues made in the overall retail sector is approx. 355 billion approx 61% is done via Cash-Payments

Huge market potential Driving factors for retailers are mainly Enhanced efficiency of cash processes (fully control & cost savings) Major staff rationalisation by using e.g. self service checkouts Miscounts and pilfering Integrated solution for attended and self service checkouts Staff/cash protection High CIT costs

Especially the retail market (food & non-food) is very fragmented in Germany The retail market is absolutely direct sales driven e.g. Wincor, Gunnebo, NCR, Toshiba Tec, Fujitsu etc. Vertical markets (e.g. Pharmacy) are driven by specialised solution providers

German market competition


Attended check-outs Gunnebo, Scan Coin Modern technology, more flexible emptying concept including E2E Wincor Nixdorf iCash (Glory); State-of-the-art technology, E2E, Counterfeit detection (ECB 6) Self-service checkouts / separate pay station NCR, Wincor Nixdorf, Fujitsu, IBM, G & D, Scan Coin

New competitors
Note and coin units are not unique for attended checkouts The large volumes will be in different types of self service units e.g. retailers, kiosks solutions, self-service-checkouts ATM producers will increase its focus on self-service-checkouts New players will appear and produce OEM-products (e.g. note and coin units) adapted for volume, price and quality Easier for new players to enter the cash handling niche in retail (standardisation of HW and SW Plug and Play) Typical new players are: Cash register HW suppliers (Wincor, IBM, Toshiba Tec, NCR, Fujitsu etc.) Cash register SW suppliers (GK, Awek etc.) POS system suppliers

CashGuard has to adapt to this changing market

Market requirements

Presence in Germany

Norbert Biermann

Dr. Holger Massek


Technical Manager (acting) External Employee

Administration/Bookkeeping Internal Employee (Part time)

Peggy Wibbing

Service/Support Engineer Internal Employee

Mike Milech

Frank Alexander
Service/Support Engineer External Employee

Service is outsourced and done via 3rd party service company (cost saving) Accounting/tax is outsourced and done via 3rd party tax consulting company (cost saving) Sales activities done with partners & direct All other functions are done centraly by HQ (e.g. marketing etc.)

Market potential in Germany


Pilot/Test installations Approx. 400 installations in one Rewe organisation (Rewe Hungen) Approx. 60 installation within vertical markets pharmacies via partner Pharmatechnik Future Pilot/Test installations EDEKA in Q4 08 Globus in Q4 08 Zielpunkt in Q4 08 Baumax in Q4 08 REAL a.s.a.p. Hellweg Q1 09 Spar in Q1 09 McD in Q1 09
Brutto

Business outlook
Positive outlook

Expected vertical business (pharmacy) with partner Pharmatechnik approx. > 800.000 1 million/year Start of stronger interest/more willingness from retailers for pilots with retail products Addressing mid size & key account segment (already identified > 500 companies) Business potential approx. 2 - 2,5 million Euro per year Wincor, G & D, IBM, Gunnebo, NCR, Scan Coin are driving the market with activities (Test installations, marketing campaigns etc.), especially with real Self-Check-out-solutions, paystations Opportunity for CashGuard to swim within the wave

Strategy & Action Plan


Addressing vertical pharmacy market (overall approx. 20.000 pharmacies in Germany) via Partner Pharmatechnik (leading supplier of IT-solutions to this market segment) Business potential approx. > 800 000 - 1 million Euro per year Addressing key accounts (Food & Non-Food) directly with local organisation use of cross-selling-potential for CG Germany e.g. REWE

proximity stores (1-3 checkouts) stores, bakery stores etc. mid sized stores (4-8 checkouts)

e.g. Beverage cash-and-carry e.g. smaller retail chains

key accounts e.g. Retail, Gas Stations, Bakery chains, Do-it yourself stores, etc.
done

Out-sourcing of service activities 3rd Party company

Open up Edeka, Globus, Zielpunkt via GK-Software & Awek (preferred software partner)

Go to the market strategy


CashGuard Germany
rg eA cc ou Sta nt s t

s Do-it -your sel d f Foo Fast

ion

Medium/larger Accounts e.g. Backery chains, Do-it-youself stores, Retailers Food & non food, Local Organisation
Ke y &

La

Large Key Accounts Retailers Food & non food, gas stations, Do-it-yourself stores, Fast food, Local Organisation

rs ile ta Re

Ga

To d Acco Ba bac unts ke co ry , P r es s,

Small & medium accounts Partner / Local Organisation

Sm all

Vertical Markets Pharmacy Specialized partner Leverage effect Adapted solutions

Pha rma cy,

Be ve r

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Push and Pull Actions Selective Distribution Models / Markets Key Accounts Management Adapt Needs / Solutions / Resources Lobbying

CashGuard Germany Local support to partners Business development Service and support Direct sales for Key accounts

Presentation Management 23.09.2008/NB

Market potential
Other markets in Europe
The Netherlands: Totally approx 225 000 CR within retail: Food 50 000 Textile/clothes 45 000 Furniture 23 000 Electricity 24 000 CR CR CR CR The United Kingdom: Totally appr 500 000 CR within retail: Food 94 000 CR Clothing 100 000 CR Tobacco 88 000 CR Furniture 58 000 CR

Belgium: Totally appr 155 000 CR within retail: Food 44 000 CR Clothes/shoes 38 000 CR Furniture/household 11 000 CR

Ireland: Totally appr 60 000 CR within retail: Food 9 000 CR Clothing/Textile 8 500 CR Furniture 7 500 CR Paints, glass 6 300 CR

Market potential
Other markets in Europe
Spain: Totally approx 830 000 CR within retail: Personal products Food/beverage/tobacco department stores Household/Furniture Italy: Totally approx 859 000 CR within retail: Clothes/shoes/textile 240 000 CR Food 220 000 CR DIY 100 000 CR Furniture 105 000 CR Greece: Totally approx 154 000 CR within retail: Food 34 000 CR Clothing/textile 32 000 CR Tobacco 24 000 CR Paints, glass 9 000 CR 230 205 100 190 000 000 000 000 CR CR CR CR Austria: Totally approx 69 000 CR within retail: Food 25 000 CR Textile/clothes 13 000 CR Furniture 8 000 CR Tobacco 4 000 CR Switzerland: Totally approx 101 000 CR within retail: Food 14 000 Clothing/Textile 15 000 Tobacco 12 000 Electrical goods 11 500 CR CR CR CR

South Africa
pilots

South Africa

How to succeed from Rlingen?


Leading expertise and technology makes it possible

We will apply the expertise and know-how gained from our long term co-operation with Norgesgruppen - and capitalise on this experience This expertise will be transferred to our subsidiaries, partners etc. worldwide We have succeeded with one of the leading chains in Scandinavia which is the among the most advanced markets within retail technologie Norgesgruppen is the best reference and showcase one could have this gives us confidence and credibility we need to succeed

Bright outlook
within Cash Management Retail

In the short run the cost level is adjusted to break even with existing revenues in Norway and Sweden Additional business in Europe and/or new business in Scandinavia will have a direct and positive impact on the bottom line Concurrently large resources are used on international expansion made possible by synergies and cost reductions This implies that the current activity level in Norway and Sweden carries the costs within this business area as well as the international expansion the company currently undertakes, which means that: The company stands robust and have all it takes to implement its international strategy without incurring losses It is still expected that Norway and Sweden will stand for 80 90 percent of total revenues in the next quarters Positive development in gross margins within Cash Management Retail

Cash Management CIT/ATM


Leading developer and provider of advanced security solutions for the international bank and valuables transport market - CIT: security solutions for valuables transport - ATM: Security solutions for ATMs
(cash in transport)

(including dye technology)

Within this business area the company are developing from being a product oriented supplier to a complete provider of integrated security solutions - As a leading system provider a broad variety of benefits arise making the security aspects only a part of the total logistical benefits for the customers in the future - At the same time the new complete solutions offers several benefits and cost-savings for the customers

Large opportunities for international expansion

A historic perspective
Cash Management CIT/ATM

Founded in 1974 Production and development in Skellefte, Sweden Represented in CIT, ATM, Retail and Weapon storage Through PSIs representation in CashGuards Board of Directors PSI was played an important role in the aquisition of SQS in 2004 as it represented an important strategic and technological development for the company

A historic perspective
Cash Management CIT/ATM

The first thoughts...

1978 1970

1992-94
Teresia case

A historic perspective
Cash Management CIT/ATM

Weapon box

1997 1998 1995


The first 400-case

The technological development

CIT

"SKALSKYDD"

Weapon

INFRGNING

ATM

DESTRUKTION SPRNING

Retail

Next generation

Next generation

Technological synergies
resulting in new security solutions

It the future the two leading technologies will work together even more closely than today resulting in solutions covering secure and closed cash handling within the whole value chain

Security solutions within CIT


Leading technology

Q-case security case


SQS security is based on unique dying technologies for perimeter protection. The contents of the case are fully protected against tampering.
Q-Case 380/400/500/550

SQS-softcar transport of valuables in ordinary cars


The SQS Softcar concept combines the security case with an automatic storage and locking system. The Softcar concept makes armoured vehicles unnecessary when transporting cash
SQS-Softcar

Q-Collector 380 cost-effective currency deposits


Collector 380 offers a secure solution for currency deposits within the retail trade and security transport services
Q-Collector 380 Q-Collector380

Security solutions within ATM


Leading technology

ATM Steel Safe Extra Security


- stationary ATM protection This is a stationary solution for ATMs protects cassettes from burglary, theft and blasting. ATM Steel Safe Extra Security (SSES) is compatible with ATM machines manufactured by Wincor Nixdorf, Diebold and NCR

ATM Steel Safe Extra Security (SSES):

ATM End-to-end
- complete ATM protection ATM End-to-end is a closed system that protects cash during transport and during the replenishment of an ATM. The Q-Case 550 security case protects the ATM cassettes during transport. The solution consists of a dye unit, radio transmitter and sensors

ATM End-to-end

New solutions under development


- Next generation products and solutions are soon to be launched - The new system portifolio will consist of fewer products - It will result in a more streamlined and efficient production process - One of the new products is Q-case MP (Multi Purpose) - The new solutions will include functionality for tracking and logistical optimalization for the customers

ATM attacks

ATM attacks
Problem Solution

! NG BA
SQS Dye SQS Blue Safe

ATM attacks ATM robberies

ATM robberies
Problem Solution

SQS Technology

ATM attacks ATM robberies

CIT attacks

CIT attacks
Problem Solution

SQS Soft Car

ATM attacks ATM robberies

CIT attacks

Airport robberies

Airport robberies
Problem Solution

SQS Flightbox

ATM attacks ATM robberies

CIT attacks

Airport robberies

Post and Bank robberies

Post and Bank robberies


Problem Solution

SQS Technology

ATM attacks ATM robberies

CIT attacks

Airport robberies

Post and Bank robberies Night safe robberies

Night safe robberies


Problem Solution

SQS Collector

ATM attacks ATM robberies

CIT attacks

Airport robberies

Retail robberies Night safe robberies

Post and Bank robberies

Retail robberies
Problem Solution

SQS CashGuard blue

ATM attacks ATM robberies

CIT attacks

Airport robberies

Post and Bank robberies Retail robberies Retail cash center robberies Night safe robberies

Retail cash center robberies


Problem Solution

SQS Technology

ATM attacks ATM robberies

CIT attacks

Airport robberies

Cash center attacks Post and Bank robberies Retail robberies Retail cash center robberies Night safe robberies

Cash center attacks


Problem Solution

SQS Technology

ATM attacks ATM robberies

Goods transport robberies

CIT attacks

Airport robberies

Cash center attacks

Post and Bank robberies Retail robberies Retail cash center robberies Night safe robberies

Goods transport robberies


Problem Solution

Tracking Logistics

Personal robberies

ATM attacks ATM robberies

Goods transport robberies

CIT attacks

Airport robberies

Cash center attacks

Post and Bank robberies Retail robberies Retail cash center robberies Night safe robberies

Personal robberies
Problem Solution

Tracking
Intelligent technology

Personal robberies

ATM attacks ATM robbery

Goods transport robberies

CIT attacks

Airport robberies

Cash center attacks

Post and Bank robberies Retail robberies Retail cash center robberies Night safe robberies

Customer segments

Leading market position


Cash Management CIT
Description of competition

competitive advantages

Cash Management ATM


Description of competition

SQS is the only provider with certified solutions in all markets


Competitors

SQS is the only provider with certified solutions in all markets


Competitors

Villiger Gehrer Axytrans Spinnaker Pedersen & Bach


Competitive advantages

3SI Villiger Pedersen & Bach


Competitive advantages

SQS is the sole provider of complete security solutions

SQS is the sole provider of complete security solutions

PSI is the leading provider of complete security solutions and services within cash handling and management in the Nordics, Europe and worldwide

Market drivers
Cash is being secured and transported smarter: Completely closed systems in cassettes with dye technology both in ATMs and during transport Shift from physical to intelligent protection during transport Scandinavia and parts of Europe are leading the way EU-rules and transport directives moves in direction of intelligent protection (Sweden, Belgium and France are for the time being the only countries where this is regulated by law)

Increasing focus on certifications

All key SQS technology are patented in all strategic countries worldwide

From armed cars to soft cars

Not only a vision cash handling and transport in new ways are about to be common with intelligent solutions

From armed cars to soft cars


The solutions are patented

ATM security made easy with dyeing


The solutions are patented

Security technology with an impact


The solutions are patented

Sweden

Attractive security technology from SQS


Installed base

-> Cases

16 000 units

-> Casettes 18 000 units

-> Soft cars

350 units

Cash Management CIT/ATM in figures

Increasing focus and deliveries


of secure cash handling in Europe and worldwide

The organisation
Cash Management CIT/ATM MD Erik svedmark
In place 1 November 2008

CFO sa Andersson Quality Lars Bergstrm

Advisor Kjell Lindskog

Marketing Niklas Petterson Product Manager Magnus Lindskog

R & D Manager Tony Elingstam

After sales Lars Tarberg

Production Manager Anders Lundqvist

MD SQS International SQS Sarl/SQS ltd Roland Wijkander

Income statement
CashManagement CIT/ATM

*) For 10 days from 10 June to 30 June

*) Restructuring costs are not included in EBITDA for Q2/2008

Substantial cost savings


within Cash Management CIT / ATM

As a result of the merger substantial cost saving have been identified and almost all of them are effective already - The cost base going into 2009 will be substantial lower than before the merger - At the same time production costs will be reduced substantially -> Total estimated annual cost savings of MNOK 12-15
- Implementation of a new system for production planning and utilization will create substantial benefits related to increased quality of information and higher efficiency - In the future it is expected to result in estimated cost savings within production of 15 percent annually

Great potential for continued success


within Cash Management CIT / ATM in Europe

Today there are approx 350 000 ATMs in western Europe Only approx 5 percent of these ATMs have intelligent security solutions based on dyeing and inking protection When introducing these security solutions the customers also invest in security cases and casettes in order to utilize the potential fully

Great potential for continued success


within Cash Management CIT / ATM in Europe

Today soft cars are only present in Sweden, Norway and Belgium Large market potential for CIT in large, non-regulated markets as Portugal, Spain and Great Britain Already present either directly or represented by partners in a number of important European markets

After-market
within Cash Management CIT / ATM in Europe

All products have to go through scheduled service either each year (or every second year) in order to uphold the certified status - Approx 20 000 security products are to be serviced next year - Calculated lifetime cyclus of cases and cassettes are 5 years In example service revenues related to ATM solutions alone will increase substantially throughout the next couple of years totally at approx MNOK 40 including cases and cassettes In addition replacement of existing installations and deliveries of cases and cassettes are expected to secure increasing reaccuring revenues in future

Cash is the currency of the world


Strategy for increased international sales

The four leading CIT companies control approximately 80 percent of the valuables transports business worldwide - Brinks, Loomis, G4S and Prosegur are in front in this industry - All these companies are customers of SQS today

Bright outlook
within Cash Management CIT / ATM

Several ATM delieveries provide increased revenues from service The aftermarket shows considerable growth and will contribute positively in the time to come Strong revenue and profit expected the next quarters due to high level of activity and several new contracts lately All production capacity are fully booked for the rest of this year based on delivery contracts already entered The company is developing strongly full speed ahead

uestions

nswers

jorgen.waaler@psi.no - +47 9059 0010 anders.nilsen@psi.no - +47 9325 9410 bakke@capnova.no +47 9072 2200