Financial presentation

Q1 2023

10 May 2023

LINK in short

#1 in Europe for enterprise digital messaging - Established player for more than 20 years

~ 700 employees in 30 offices across 18 countries
17 billion messages sent annually by 51,000 customers

Adjusted EBITDA NOKm

Q1 2023 highlights

Stronger than expected first quarter

Revenue reported at NOK 1 440 million. Organic growth in fixed currency 12%

US reporting a 119% revenue growth with traction on messaging services and diversification of critical events messaging
Europe reported modest revenue growth as expected at 4% held back by high comparables due to significant covid traffic same period last year

Gross profit reported at NOK 398 million. Organic growth in fixed currency 13%

• Increased margins for enterprise clients due to mix effects with a higher portion of revenue deriving from high margins clients and products

Adjusted EBITDA reported at NOK 181 million. Organic growth in fixed currency 16%

• Opex reductions delivered as plan with a contribution of NOK 17 million in the quarter

High cash generation after capex and interest of NOK 118 million

• Group leverage reduced to 4.3x from 4.6x previous quarter

LINK signed all-time high 826 new and expanding agreements in the first quarter

• Forecasted gross profit contribution from new contracts in the last two recent quarters significantly higher than historical averages

Reported figures impacted by NOK depreciation

NOKm	Q1 2022	Organic growth	FX effect	Q1 2023
Revenue	1 174	138	128	1 440
Organic growth (%)		12%
Gross profit	322	41	35	398
Organic growth (%)		13%
Adjusted EBITDA	142	23	16	181
Organic growth (%)		16%

Gross profit growth better than expected

Europe as expected whilst US exceeds expectations

US reporting high gross profit growth

Strong momentum for messaging solutions
Catch-up effect from build-up of contract backlog last year
Two new clients signed end of last year started to contribute to the P&L
Critical events messaging amounting to USD 1.4 million in Q1 23
Related to winter storms from broader geographical exposure enabled by new clients

Moderate underlying growth in Europe as expected

High comparables as Q1 2022 experienced large volumes due to covid testing
Softer European retail volumes in January and February following a stronger Q4 22
High order backlog into 2023 expected to improve growth momentum gradually through the year

Organic gross profit development in NOKm

Quarterly US revenue USDm

Cost reduction initiatives delivered according to plan

Reported costs higher with NOK depreciation

Opex development YoY NOKm

Opex growth of 10% in stable currency

Investments in commercial capabilities in the US through 2022 and onboarding of customer base with full effect in the quarter
Limited growth in opex in European footprint at 5%
Cost reductions at Group level drives decline YoY in group costs

Cost initiatives delivering according to communicated plans

Total cash savings from cost initiatives expected at NOK 105 million level as previously communicated.
Depreciation of NOK impacts nominal effect of cost reductions

Cost saving initiatives in fixed FX NOKm

Strong growth in European contract backlog

SMS remains the channel of choice with more than 5 billion global users

Clear step up in new contract wins following commercial refocus last year

High contract backlog into 2023 to materialize in P&L throughout the year
Historically 75% of gross profit recorded in P&L within 12 months

New contract wins increased 45% YoY in Q1 23

• Forecasted gross profit contribution from new wins NOK 40 million

Preferred customer channel SMS saw strong growth of 55%

• Traditional products chosen in uncertain macroeconomic landscape

CPaaS contributed NOK 7 million in expected new contract gross profit

Gross profit contribution from new contract wins

LINK grows and retains customers

Base expanding quarter by quarter

51' active customer accounts, growing 8% YoY Organic growth 3,611 new customer accounts

Record new agreements signed Contract wins grew 10% YoY to 826

Customer churn remained low at 1.5% in Q1 23

Customer accounts

Q1 on-track to deliver 2023 forward-looking statement

Forward-looking statement 2023 reiterated

Gross profit growth expected to be higher than in 2022

Organic adjusted EBITDA growth expected to be 12-15% in fixed currency

• Supported by execution on opex savings

Financial review

Q1 2023

Reported revenue growth of 23%

FX tailwind contributed 11 percentage points

Reported revenue NOKm

Reported volume (mill transactions)

Organic revenue growth of 12% in fixed currency

Higher than expected revenue contribution from the US
Critical events related revenue of NOK 14 million from winter storms
Messaging solutions growth driven by signed contracts in H2 22
European footprint in line with expectations with strong comparable Q1 22
Enterprise retail segments somewhat softer than in Q4 but good traction on new contract signings both for local and global clients
Continued high growth momentum in Global Messaging

Reported volume growth for Q1 23 at 8% and lower than revenue growth

Higher share of non-messaging revenue like licences and professional services
Destination mix effects in Global Messaging towards higher priced countries

Gross profit growth of 24%

FX tailwind contributed 11 percentage points to gross profit growth

Gross profit NOKm

Gross margin (%)

Organic gross profit growth 13% in fixed currency

Large contribution to growth from high margin US business
Gross profit growth in European negatively impacted by comparables
Q1 22 included high margin covid traffic especially in Austria

Gross margin slightly improved with mix effects

Enterprise segment contributed positively by 1.1 percentage points
Large share of high margins clients and products
Central Europe margin dilution YoY with discontinuation of covid traffic
Global Messaging higher share of revenue with dilution effect

Adjusted EBITDA growth of 27%

FX tailwind contributed 11 percentage points to reported adjusted EBITDA growth

Opex NOKm

Adjusted EBITDA NOKm

Organic growth in opex of 10% in fixed currency

US main contributor to opex growth
Investments through 2022 and adding on customer base late Q4 22
European opex growth managed at 5% in fixed currency
Cost initiatives executed according to plan

Organic growth in adjusted EBITDA 16% in fixed currency

Higher than expected gross profit contribution from the US
Managed opex growth with cost initiatives

P&L - Non-recurring costs shifted to lower level

NOK in millions	Q1 2023		Q1 2022 Full Year 2022

Total operating revenues	1440	1 1 7 4	5 1 9 0
Direct cost of services rendered	(1041)	(852)	(3805)
Gross profit	398	322	1385

Operating expenses	(218)	(179)	(760)
Adjusted EBITDA	181	142	625

Non-recurring costs	(14)	(28)	(148)
EBITDA	167	115	478

Depreciation and amortization	(108)	(100)	(416)
Impairment of intangible assets and goodwill			(180)
Operating profit (loss)	58	15	(118)

Net financials	(71)	(6)	(37)

Profit (loss) before income tax	(12)	9	(155)

Income tax	16	(8)	4
Profit (loss) for the period	3	1	(151)

Non-recurring costs of NOK 14 million

Share-option cost of NOK 7 million
Restructuring costs of NOK 4 million
Costs related to M&A of NOK 3 million

Depreciation and amortization NOK 108 million

Depreciation of intangible assets NOK 20 million from internal R&D
Depreciation of PPA's NOK 83 million
Depreciation of leasing arrangements and fixed assets NOK 5 million

Net financial items negative NOK 71 million

Negative currency effect of NOK 32 million with limited cash impact
Interest NOK 39 million reflecting outstanding EUR 370 million bond

Solid balance sheet

NOK in millions	Q1 2023	Q1 2022	Year 2022

Non-current assets	9 3 8 3	8589	8924
Trade and other receivables	1 2 7 8	865	1 244
Cash and cash equivalents	964	802	827
Total assets	11 625	10 256	10 994

Equity	5 5 0 8	5 0 2 1	5 2 2 6
Deferred tax liabilities	517	543	533
Long-term borrowings	4 1 6 3	3597	3837
Other long term liabilities	38	62	45
Total non-current liabilities	4718	4 203	4 4 1 6
Trade and other payables	1 3 2 4	936	1 3 3 1
Other short term liabilities	75	96	22
Total current liabilities	1 3 9 9	1 0 3 2	1 3 5 3
Total Liabilities	6 117	5 2 3 5	5769

Total liabilities and equity	11 625	10 256	10 994

Non-current assets increased mainly due to currency effects

• Marginal additions related to PPA

Cash on balance sheet NOK 964 million

• Expanding QoQ from free cash flow generation and positive FX impact

Equity NOK 5,508 million and equity percentage of 47%

Receivables and payables increased with organic growth and currency effects

Net interest-bearing debt* of NOK 2.917 million

LINK leverage trending down

Strong growth in adjusted EBITDA and high cash conversion drives leverage down to 4.3x

NOK '000	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Adjusted EBITDA	129	166	188	181
Change working capital	89	(103)	66	(27)
Taxes paid	(6)	(10)	(30)	0
Non-reccuring costs M&A	(18)	(15)	(53)	(7)
Net cash flow from operating activities	194	38	170	147
Add back non-recurring costs M&A	18	15	53	7
Adjusted cash flow from operations	212	53	223	154
Capex	(45)	(38)	(47)	(35)
Interest	(69)	(1)	(69)	(1)
Cash flow after capex and interest	98	14	107	118

Leverage (Net debt / LTM proforma adjusted EBITDA)*

15	Interim Report Q1 2023

Adjusted LTM cash flow from operations NOK 549 million Reported cash flow from operations include M&A related expenses FCF generated after capex and interest of NOK 337 million

Working capital varies significantly between quarters

LTM build mainly reflects periodization and not higher underlying WC WC remains net negative and a funding source for organic growth

High cash conversion LTM

Adjusted cash flow from operations 97% to adjusted EBITDA Free cash flow after interest and capex 51% to adjusted EBITDA

Cost reduction initiatives support FCF and adjusted EBITDA in 2023

LTM Q1 23 leverage reduced to 4.3x during first quarter FCF and growth in adjusted EBITDA to continue deleveraging trend

LINK's EUR 370 million fixed coupon bond matures in December 2025 Fixed interest rate at 3.375% secured for 2.5 years

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