1. Landsteinar Strengur

2. Topics Kögun Group Landsteinar Strengur in Retail Partner network
Products

3. About Kögun Group Founded 1988, profitable every year since
Listed on ICEX, 2005 revenue est €200m
Fast growth during last 18 months
Strong investor backup
Three main business areas
Consulting and implementation, mainly mission-critical and defense systems
Business software (ERP/CRM/e-business...)
Hardware, outsourcing and related services

4. Kögun figures 2004 Operating Revenue € 61,0 M EBITDA € 8,0 M 13%
Net earnings
€ 5,6 M 9%
Total assets
€ 206,3 M
Equity
€ 64,5 M
31%
Market value at year end
€ 110,8 M

5. Group structure

6. A member of the Kögun Group
Landsteinar Strengur (LS) is Microsoft gold partner with 80 employees and annual revenues of 15 million dollars
A leading provider solutions for the hospitality and retail markets

7. Landsteinar Strengur Background
In Retail since 1988
Certified as a world-wide product by Navision in 1997
Covering the Icelandic Retail market
One of the largest End-to-End Retail software provider in the world
Microsoft all way through
Operating system, databases, Code, ERP

8. LS Retail installations
Before 2004
During 2004
At end of 2004
End of May 2005
Companies
480
120
600
642
Stores
4.300
2.400
6.700
7.145
Point of sale clients
9.200
5.900
15.100
16.698
In LS’s estimate, Microsoft Business Solutions license revenues associated with LS Retail accounted for more than 2% of Microsoft’s worldwide Microsoft Business Solutions license revenues in 2004

9. No. of customers by territory

12. Our customers come from a wide range of industry types
Our customers come from a wide range of industry types. From consultancies to manufacturing, from local authorities to distribution and retail based business.
Will you be next?

13. Our Vision One of top 5 WW retail software developers
The first selection for specific segmented retailers
No. 1 retail software supplier on Microsoft
Global coverage

14. Product, Sales- and marketing material Product service
Landsteinar
Strengur
Development
Product, Sales- and marketing material
Product service
Distribution
Awareness and Marketing
Sales and Support
Customization, Consulting, Education,
Training, Implementation, Service
Microsoft
Partners
Customers

15. Partners

16. Network of Partners EMEA 55 Partners in 44 countries
USA, Canada and Mexico
Asia
EMEA
55 Partners in 44 countries
Australia
South Africa

17. Localised versions English Germany Italy Spain Greek Portugal Belgium
UK, US, CA, Australia
Germany
Schweiz, Austria
Italy
Spain
Greek
Portugal
Belgium
France, Flemish
Dutch
Scandinavia
Danish, Norwegian, Swedish, Finish
Baltic countries
Latvia, Lithuania, Estonia
Russian
Hungarian, Romanian, Bulgarish, Polish
Turkish
Slovenian
Indian

18. Partner strategy Focus on Retail and Microsoft platform
Not new unless it fit some gap/territory
Close relationship
Evaluation based on performance and activity
Revenue (Pipeline update and progress)
Certification
International projects/customers
One owner
One contact point for the customer

19. Example of International Projects
Adidas – Fashion chain
K3 Landsteinar in UK coordinating partner
8 partners involved in the implementation
Bestseller – Fashion chain
Munk IT in DK coordinating partner
Russia, Finland and more to come
Levi Strauss
Toshiba Tec Europe coordinating partner
Other Toshiba Tec resellers and LS Retail partners
IKEA
Landsteinar NL coordinating partner

20. Products
LS Retail

21. Market Focus
End-to-End, focus on the whole supply chain, based on Microsoft Technology
Chains with different types of stores who generate a high transaction volume
Complex stores

22. LS Retail End to end solution on Navision 4.0 Axapta back office 3.0
Hospitality, Fashion, new functionality
Axapta back office 3.0
Migration from Navision platform
LS POSIS - independent POS
.NET POS
Data Director
Built-in communications module

23. LS Retail Navision
Integrated into Microsoft Business Solutions - Navision
same platform from POS to HO
Scalability
works in single stores, multistore and multi-national environments
Fast and reliable
Built-in communications module
Data Director

24. LS Retail Advantage One platform retail operation
Simple operation – low cost of ownership
Supports your business
Food, Fashion, DIY, Hospitality, Speciality
Information at your fingertips
Traceability from General Ledger to POS Transactions
Integrated with Microsoft Outlook, Word and Excel
Simple integration with other Microsoft products

25. LS Retail In use in more than 16.000 POS Proven solution since 1996
LS Retail 4.0 is the 11th version of LS Retail products
Upgrade path available from all former version
LS Retail will be upgraded in the future as it has been in the past
Always available on the latest version of Microsoft Navision
Maintain older version - 2 years notice on discontinuities
New functionality only available with the latest version

26. Product focus POS always up and running
Resilient design and architecture
Right Data on right time at right place
Complex data structure
Functionality
In line with the customers and partners need
Focus on specail Retail sectors, as Fashion, Department, DIY, Supermarket, Pharmacy etc..

27. Product focus Configuration In-store management End-of-Day procedure
POS, Stores, employee, HW, data flow etc.....
In-store management
Barcode, price, offers, receiving, shrinkage, history, etc..
End-of-Day procedure
Cash management
Reporting
Posting

28. LS Retail 4.0

29. Resilient POS – Fast POS
The POS supports the following modes of operation
Online – POS is connected to the back office
Offline – POS runs on a standalone database
Semi-online – POS is offline but accesses other databases using a Transaction Server
The POS can create, update and post sales orders making the Navision integration even better
A resilient and fast application which is used in thousands of stores World-Wide

30. LS Data Director

31. Communcations
All data communications are handled by the LS Retail Data Director
A fast and proven product capable of communicating with hundreds of stores
Configured and controlled from LS Retail – no programming required
Supports Microsoft Navision, Microsoft Axapta, MS SQL, Oracle, DB2, MySQL and most ADO compliant db’s

32. LS Retail Axapta 3.00 & POSIS 4.7

33. Why Axapta?
Offer our partners a retail solution in Axapta as an alternative to the Navision solution
Give the customer a choice between two platforms for the same solution.
Axapta is a “more” suitable solution for larger companies with more complex structure and concurrent users
More advanced coding environment
Scalability

34. Main features LS Retail Axapta - Back office
LS Retail Axapta – Scheduler
LS Data Director
3rd party POS support

35. Back office Complete management solution for single and multi stores
Powerful functionalities in-store and at head office
Gives the store manager full control of activities within the store

36. Scheduler A built-in scheduling mechanism
Controls the data flow between head office and stores
Fully integrated with LS Data Director
Axapta plug-in for LS Data Director

37. 3rd party Point-Of-Service (POS)
LS Retail Axapta is designed to work with 3rd party POS systems
Plug-in based interface
Till management can be controlled from the back office
All setup in one place
Functionality depends on the POS abilities

38. LS Retail Axapta Experience - A Pioneering Project in South Africa
1750 users 800 concurrent
Client quote
“The successful implementation of the Axapta ERP & LS Retail Solution will take Waltons to the next level. The ability to make rapid management decisions across all the business operations and support critical business needs such as flexible price & cost strategies is the key to maintaining our competitive advantage.” “The LS Data Director Replication solution is such a fundamental factor for the success of the project. The stability and robustness of this solution will help us achieve our goal of data flow consistency and data integrity through the business.” François Reyneke, Financial Director Waltons, South Africa

39. POSIS integration Landsteinar Strengur will offer POSIS as a
supported POS solution with LS Retail Axapta

41. Past and Present Released in Iceland in 1997
A large domestic market share (tills)
Supermarkets 60%
Pharmacies 95%
Petrol stations 100%
Convenience st. 30%
Restaurants 30%
A growing market share in the UK

42. The Power of POSIS Adaptability Touch screen and keyboard interfaces
Proven versatility in multiple retail environments
Supermarkets
Convenience stores
Fast Food
Pharmacies
Forecourts

43. The Power of POSIS Power Simplicity High transactions speed
A highly responsive user interface
Efficient data replication
Simplicity
An easy learning experience
Low training costs

44. The Power of POSIS Security Transactions backup
Immunity to network failure
Monitoring and Supervision System

45. The Customer says:
"We at ESSO have been using POSIS since 1998 with excellent results. By implementing POSIS we managed to solve many problems associated with previous systems. It is our policy to constantly improve customer services and the deployment of POSIS in our Petrol Forecorts allows us to maintain our market leading position."
Steingrímur Hólmsteinsson, Manager, Information Technology, Esso Iceland.

46.
Thank you!