LINK Mobility : Q2 Interim Report 2022

Interim Report

Second quarter 2022

Thomas Berge, Interim CEO

Morten Edvardsen, Interim CFO

LINK facts and figures

2000		#1
FOUNDING YEAR	MESSAGING PLAYER IN
		EUROPE
>14 bn		30
MESSAGES SENT IN 2021*	OFFICES GLOBALLY

19	~48 k
	Revenue NOKm	Adjusted EBITDA NOKm
COUNTRIES IN OUR GROUP	HAPPY CLIENTS WORLDWIDE*

4.8 bn		603 m
NOK LTM revenue Q2 22*		NOK LTM adj. EBITDA Q2 22*

* Including all closed acquisitions

2

Implications of challenging macro environment

Macroeconomic uncertainty impacts the digital messaging industry differently depending on use case

New agreements signed in quarter

● Headwind for retail volumes related to digital marketing which fluctuate with consumer confidence ● Sustained growth for essential notifications use cases

• New growth opportunities for efficient customer care solutions

LINK well positioned for continued growth, albeit at lower level in challenging macro environment

• Retail sector has lowered spend on marketing activities resulting in reduced messaging volumes

● New client wins are however holding up at normal levels

• Churn remains stable at a very low level

Customer churn %

Retail volumes expected to recover and normalize again when consumer confidence improves

3

LINK enhances focus on current growth and cash generation

LINK recalibrates more resources to current market growth opportunities

• Prioritizes mature products and selected CPaaS solutions with proven market demand
• • Advanced CPaaS solutions have low market adoption and longer revenue lead times as clients need to adapt their value chains
  • Previous overinvestments in building market adoption have lowered traction on near-term growth execution

LINK to ensure continued strong FCF generation through execution on

• OPEX reductions - aligning costs to near-term growth expectations
• CAPEX reductions - product development already ahead of market adoption
• Consolidation of acquired assets to extract costs and revenue synergies

Large upselling potential for more advanced products as market adoption rates gain momentum

• Technological advances last 3 years been more rapid than customer penetration

4

Second quarter report 2022 highlights

Revenue grew 12% to NOK 1,177 million in Q2 22. High Q2 21 comparables reduced organic growth to 4%

● Underlying organic growth at 11%, below previous quarters as certain retail clients in specific markets are reducing spend in a response to a more uncertain macro environment

Gross profit increased 18% to NOK 317 million in the quarter

● Organic gross profit declined 1% due to high comparables and customer mix effects

Adjusted EBITDA growth of 8% to NOK 129 million

• Organic adjusted EBITDA decreased reflecting lower gross profit and OPEX increases

● OPEX increased by NOK 10 million related to GTM investments initiated since H2 2020

Strong cash flow from operations in excess of NOK 200 million in Q2 22

• Free cash flow (FCF) of NOK 100 million after capex and interest payments

LINK signed 571 new agreements in the second quarter of the year (new and expanding)

● Good momentum in new customer wins with strong potential for future growth

• Longer ramp up times for new contracts in adoption of more advanced CPaaS solutions

5