Landsteinar Strengur www.LSRetail.com info@LSRetail.com

Topics Kögun Group Landsteinar Strengur in Retail Partner network Products

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

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

Group structure

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

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

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

No. of customers by territory

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?

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

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

Partners

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

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

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

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

Products LS Retail

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

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

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

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

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

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..

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

LS Retail 4.0

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

LS Data Director

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

LS Retail Axapta 3.00 & POSIS 4.7

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

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

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

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

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

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

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

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

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

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

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

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.

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