LINK Mobility Group Holding

Interim / Quarterly Report • Aug 17, 2021

LINK Mobility Group Holding ASA Interim financial report Second Quarter 2021

Highlights Second Quarter

• LINK transformed from European CPaaS provider to global CPaaS player with footprint in the US as well as Latin-America and Asia-Pacific including Soprano
• Delivered on M&A strategy as communicated in the IPO with 5 closed acquisitions
• Pro forma* LTM revenue and adjusted EBITDA of NOK 4 362 million and NOK 622 million respectively. Soprano will add an additional NOK 683 million and NOK 182 million in revenue and adjusted EBITDA
• Pent-up demand as societies reopen, increasing organic revenue growth in local currency to 23%
• Pro forma* net retention rate of 123% in local currency
• Reported adjusted EBITDA at NOK 119 million, an increase of 22%
• Diverse customer base of 44 000 accounts with extensive cross-selling opportunities
• Launched an additional significant WhatsApp agreement for customer service dialogue with Deutsche Post

* Pro forma includes historical financials for acquired entities WebSMS, Tismi, MarketingPlatform, AMM and Message Broadcast for comparable data

Global CPaaS player in high growth markets

LINK Mobility (LINK) reports revenue growth of 26% to NOK 1 055 million in the second quarter of 2021. Organic revenue growth in local currency was 23%, above the medium to long term growth target due to catch-up effects from reopening of societies. Adjusted EBITDA reported at NOK 119 million with a stable margin of 11%. LINK closed several acquisitions in the quarter, including Message Broadcast in the U.S., resulting in pro forma LTM Q2 21 revenue and adjusted EBITDA of NOK 4 362 million and NOK 622 million, respectively. LINK reiterates its forward-looking statement which targets NOK 10 billion in pro forma revenue by 2024 and increases the adjusted EBITDA margin range to 15-17% from 13-15%.

The acquisition of Soprano is progressing, and SPA is expected to be signed shortly. Including Soprano, pro forma LTM Q2 21 figures would be NOK 5 045 million and NOK 804 million for revenue and adjusted EBITDA, respectively.

LINK is experiencing accelerated demand for CPaaS solutions and saw its most successful quarter ever on OTT traffic. WhatsApp traffic increased around 5 times from end Q1 21, while RCS traffic more than doubled from March to June. Clients increasingly demand new use cases built around the richer feature set of OTT channels and RCS, on top of existing SMS traffic. LINK recently signed an additional significant WhatsApp agreement for customer service dialogue with Deutsche Post.

Organic revenue growth in local currency was 23% year over year, positively affected by the reopening of societies as enterprises are re-engaging activities towards end-users, leading to a catch-up effect from the softer volume development experienced both in Q1 21 and Q2 20. LINK's pro forma revenue for Q2 21 reported at NOK 1 130 million, with pro forma organic growth in local currency at 25%. The Enterprise segment generated 20% pro forma organic growth in local currency as all product categories, regions and customer segments exhibited strong growth momentum. Aggregator revenue contributed to 5 percentage points on total organic revenue growth.

Gross profit grew 22% to NOK 268 million compared to the same quarter last year. The gross profit margin declined slightly to 25% (26%), reflecting a higher portion of revenue from the low margin aggregator segment and customer mix effects. The lockdowns last year resulted in unusual volume variations favoring the higher margin public and logistics sectors in the more profitable Nordic region. Reported growth in adjusted EBITDA was 22% to NOK 119 million. The adjusted EBITDA margin was stable year over year at 11%. Cost reduction initiatives, implemented due to pandemic uncertainty last year, supported the Q2 20 adjusted EBITDA margin with approximately NOK 10 million.

Messaging volumes increased 37% in the second quarter to 3 337 million compared to the same quarter last year, of which 28% organically. Pro forma messages delivered increased by 30%.

Million messages / Price per message in NOK Pro forma Messaging volume in million

Acquisitions and pro forma

LINK acquired Message Broadcast in the US, MarketingPlatform in Denmark and AMM in Italy in Q2 21. The closing of these acquisitions, in addition to the closing of WebSMS in November 2020 and Tismi in March 2021, affects the pro forma financials of the group. The tables below show updated pro forma figures (full-year effect of closed acquisitions) for Q2 21 and LTM Q2 21 in reported currency. The financials are based on management estimates given the information available. Soprano figures are shown for completeness.

NOK million

Q2 2021 LTM	LINK Proforma	Soprano	All entities
Revenue	4 3 6 2	683	5 0 4 5
Gross Profit	1 3 0 8	366	1674
Adj EBITDA	622	182	804

Forwarding looking statement reiterated

LINK benefits from strong market trends with accelerated demand for advanced CpaaS solutions and products. As LINK invests more in additional go-to-market (GTM) initiatives and launches new products in the current footprint, we expect demand for our products to grow even further. LINK is also executing on its M&A strategy with 5 acquisitions closed since the IPO in October last year. The continuation of underlying trends and progress on M&A enable LINK to reiterate its forward-looking revenue statement and to increase its forward-looking margin statement to reflect the acquisition of high margin Message Broadcast. Upon the closing of Soprano, the forward-looking adjusted EBITDA margin statement is expected to be raised further to 18-20% as previously indicated.

Forward looking statement
Amounts are in million NOK	2024
Pro forma revenue	10.000
Pro forma adjusted EBITDA* margin	15% - 17% (prev: 13-15%)

New contracts and market trends

During Q2 21, LINK added an estimated annual revenue contribution of NOK 67 million from 420 signed direct customer contracts, 33 signed partner framework agreements and 145 new partner customers.

LINK sees great demand for multi-channel mobile communication and our enterprise grade CPaaS solutions. Companies increasingly demand new advanced use cases built around OTT's and RCS channels on top of existing SMS traffic. In Q2 21, LINK saw its most successful quarter ever on traffic outside SMS. WhatsApp traffic increased around 5 times from end Q1 21, while RCS traffic more than doubled from March to June.

LINK signed an additional significant WhatsApp agreement for customer service dialogue with Deutsche Post in the quarter. LINK is also rolling out WhatsApp globally through DHL's footprint as part of a cooperation with DHL's centralized Digital Assistant program.

5

Financial Review (Figures in brackets refer to the same period last year)

Group income statement

Operating revenues amounted to NOK 1 055 million (NOK 841 million) or a reported growth of 26 percent versus same period last year including acquisitions. Message Broadcast will be consolidated into the Group profit and loss statement from July 1st.

Organic revenue growth in local currency was 23 percent, currency translation negatively affected reported organic revenue growth in NOK with 8 percentage points. Aggregator revenue experienced a step-up in the current quarter, contributing to 5 percentage points increase in organic revenue growth in local currency. The growth in revenue from the aggregator segment was mainly due to reopening of societies and ad hoc volume increase for certain destinations.

Reported Gross profit of NOK 268 million or a growth of 22 percent. Gross profit margin was 25.4% in the current quarter, a decline of 0,8 percentage points mainly due to;

• traffic mix in the second quarter last year towards the more profitable logistics and public sector related to changes in usage caused by the initial lockdowns
• higher portion of revenue deriving from low margin aggregator segment in current quarter

Total operating expenses amounted to NOK 149 million (NOK 123 million) or a growth of 13 percent. In the second quarter of 2020, temporary cost savings initiatives were implemented as a response to the uncertainty of the initial lockdowns reducing operating expenses with NOK 10 million. All cost saving initiatives were stopped in the beginning of the third quarter

last year, and LINK continued investing in growth within the enterprise segment resulting in moderate expansion of operating expenses in following quarters.

Adjusted EBITDA, before non-recurring cost, was reported at NOK 119 million (NOK 98 million) or 11 percent of total revenues in line with same period last year. Year over year comparison was impacted by the increased profitability same period last year due to the temporary cost savings. Gross profit to adjusted EBITDA conversion was stable at 44%, comparisons with same quarter last year also impacted by the temporary cost savings.

EBITDA after non-recurring items was reported at NOK 38 million (NOK 87 million) after deduction of non-recurring cost of NOK 81 million (NOK 11 million) related to acquisitions, share option program and restructuring costs. The increase in non-recurring costs was related to management share-option program launched in October 2020 in connection with the IPO and increased costs related to higher M&A activity compared to same period last year.

Second quarter depreciation and amortization was NOK 69 million (56 million). The increase was attributable to depreciation of certain assets categories related to PPA for closed acquisitions and internal R&D.

In the second quarter, net financial expenses were NOK 22 million (net financial income NOK 57 million). Comparison to the prior year is skewed by the implementation of hedge accounting from the first quarter this year. Net interest expense was NOK 32 million less than the comparative period due to lower interest-bearing debt and refinanced debt facilities at improved terms. Please refer to note 2 for details regarding hedge accounting and note 5 for information regarding the Group's debt.

Balance sheet, financing, and liquidity

Non-current assets amounted to NOK 8 767 million (NOK 5 560 million). The increase was attributable to the acquisitions of WebSMS, Tismi B.V., MarketingPlatform Aps, AMM S.p.A and Message Broadcast LLC in the comparative period.

Trade and other receivables amounted to NOK 816 million (NOK 615 million). Part of the increase (NOK 126 million) was attributable to acquisitions; the remainder of the increase was attributable to timing of collections.

Cash and cash equivalents are NOK 808 million (NOK 578 million). The comparative increase represented proceeds from the IPO, the bond issue, cash in acquired entities and to a lesser extent, timing of collection of trade receivables.

Trade and other payables were slightly higher at NOK 905 million (NOK 817 million). The increase was largely attributable to timing of payments.

Total equity amounted to NOK 5 050 million (NOK 2 425 million) or 49 percent (36 percent) of balance sheet value. The increase was due to the initial public offering and the issuance of shares.

Long-term liabilities amounted to NOK 4 385 million (NOK 3 460 million). The increase was attributable to external debt and specifically, the bond tap issue of EUR 170 million in June 2021 (note 5).

In the second quarter, net cash from operating activities was NOK 87 million (NOK 120 million). The change was mainly driven by extraordinary cash collections during the early phase of the pandemic last year as well as substantial transaction costs related to acquisitions this quarter compared to none same quarter last year.

Net cash from investing activities was negative NOK 1 770 million (negative NOK 29 million); the change was driven by acquisitions done in the first half of 2021; there were none in the same period last year.

Net cash flow from financing activities was positive NOK 1 673 million (NOK 208 million). The change in proceeds from borrowings was related to the bond tap issue (as compared to the draw on the revolving facility in Q1 2020) and lower interest and loan payments this quarter compared to same period last year due to change in debt terms.

Condensed consolidated income statement

NOK '000	Note	Q2 2021*	Q2 2020*	YTD 2021 YTD 2020		Year 2020
Total operating revenues		1 055 228	840 538	2 000 964	1 684 103	3 539 231
Direct cost of services rendered		$-787017$	$-620$ 139	-1 485 750	$-1254785$	$-2640012$
Gross profit		268 211	220 398	515 215	429 318	899 220
Payroll and related expenses		$-94052$	$-64603$	$-183288$	$-123781$	$-346450$
Other operating expenses		$-55088$	$-57908$	-103 690	$-122892$	$-161928$
Adjusted EBITDA		119 071	97 887	228 237	182 645	390 842
Restructuring cost		$-6109$	$-9206$	$-12697$	$-19250$	$-47400$
Share based compensation	6	$-40077$		$-81391$		$-34711$
Expenses related to acquisitions		$-34857$	$-1637$	-43 033	$-3348$	$-15123$
EBITDA		38 0 28	87 044	91 116	160 047	293 607
Depreciation and amortization	$\overline{7}$	$-68713$	$-55721$	$-136215$	$-107503$	$-271389$
Operating profit (loss)		$-30686$	31 323	-45 099	52 545	22 218
Finance income and finance expenses
Net currency exchange gains (losses)		$-1108$	112 539	$-31430$	-183 785	$-101218$
Net interest expense		$-21453$	-53 630	-42 583	$-103882$	-207 093
Net other financial expenses		294	$-2367$	60	$-6879$	$-118735$
Finance income (expense)		$-222267$	56 543	$-73954$	$-294547$	-427 047
Profit (loss) before income tax		$-52953$	87 866	$-119053$	$-242002$	$-404828$
Income tax		$-829$	$-16318$	15714	$-2696$	76 823
Profit (loss) for the period		$-53781$	71 548	$-103339$	$-244697$	$-328005$
Minority Interest Income		$-208$		$-208$
Owner's income		$-5390$	71 548	$-103547$	$-244697$	$-328005$
Earnings per share (NOK/share):
(Loss) earnings per share (NOK/share):		$-0,18$	0,33	$-0,35$	$-1,14$	$-1,21$
Diluted (loss) earnings per share		$-0,18$	0,33	$-0,35$	$-1,14$	$-1,21$

*Unaudited

Copyright 2021 LINK Mobility. All rights reserved.

Condensed consolidated statement of comprehensive income

NOK '000	Q2 2021*		Q2 2020 YTD 2021 YTD 2020*		Year 2020
Profit (loss) for the period	$-53781$	71 548	$-103339$	$-244697$	$-328005$
Translation differences of foreign operations	78 274	315 905	$-69537$	327 015	134 373
Gains and losses net investment hedge	$-16739$		28 367
Tax on OCI that may be reclassified to P&L			$-9923$
OCI that may be reclassified to P&L	61 535	315 905	$-51094$	327 015	134 373
Total Comprehensive Income	7 7 5 4	387 453	$-154432$	82 318	$-193632$
Attributable to:
Minority interest	166		166
Owner's equity	7588	387 453	$-154598$	82 318	$-193632$

Condensed consolidated statement of financial position

NOK in thousand	Note	Q2 2021*	Q2 2020*	Year 2020
Assets
Non-current assets
Goodwill		5 545 589	3 647 793	3 982 843
Other intangible assets		3 008 898	1799 507	1823494
Right-of-use-assets		25 937	22 015	26 513
Equipment and fixtures		20 568	20 309	25 083
Deferred tax assets		140 450	67 402	140 551
Other long term assets		25 744	2 5 7 8	1 3 1 3
Non-current assets		8767186	5 559 605	5999796
Current assets
Trade and other receivables		815 551	614 693	748 547
Cash and cash equivalents		807 931	577 534	952 144
Current assets		1 623 482	1 192 227	1700 691
Total assets		10 390 668	6751832	7700487
Equity & Liabilities
Equity
Shareholders equity		5 031 061	2 4 2 4 9 1 8	4 303 962
Minority interest		18 696
Total equity		5 049 757	2 4 2 4 9 1 8	4 303 962
Long-term borrowings	5 5	3768932	3 075 770	2 078 515
IFRS 16 liability, non-current	5	32 152	15 213	30 624
Deferred tax liabilities		549 077	322 782	313 090
Other long term liabilities	5	34 794	45 791	2 3 9 8
Total non-current liabilities		4 384 956	3 459 556	2 4 2 4 6 2 8

Borrowings, short term	5	28 231	46 714	27 244
IFRS 16 liability, current	5	10 610	7607	8619
Trade and other payables		904 519	817 213	927 106
Tax payable		12 596	$-4$ 177	8928
Total current liabilities		955 955	867 358	971897
Total liabilities		5 340 911	4 3 2 6 9 1 4	3 396 525
Total liabilities and equity		10 390 668	6751832	7 700 487

Copyright 2021 LINK Mobility. All rights reserved.

Condensed consolidated statement of changes in equity

NOK 000 - Jun 2021 YTD	Note	Share capital	Share premi um	Other equity	Retaine d earnin ne	Other reserv es	Minority interest	Total equity
Total Opening Balance			1 355 4 875 968	185 693	$-840496$	81 442	$\blacksquare$	4 303 962
Changes in Net Income				$\blacksquare$	$-103519$		180	-103 339
Other Comprehensive income			$\blacksquare$	$-7559$	-43	57 069	$-14$	$-18578$
Total Comprehensive Income		$\blacksquare$	$\blacksquare$	$-75589$	$-103563$	57 069		166 -121 917
Issue of ordinary shares		107	771885				$\blacksquare$	771992
Changes due to repayment of equity				$\blacksquare$	$\sim$
Share based payment			$\blacksquare$	77 187			$\blacksquare$	77 187
Non-controlling interest on acquisition of subsidiary						$\overline{\phantom{a}}$	18 530	18 530
Closing Balance	9		1 462 5 647 853	187 295	$-944058$	138 511		18 696 5 049 757

NOK 000 - Jun 2021 YTD	Note	Share capital	Share premi um	Other equity	INGRAINE d earnin	Other reserv es	Minority interest	Total equity
Total Opening Balance		1 081 2 725 406		109 459	$-511713$	15 903		$-2340137$
Changes in Net Income		$\sim$		$\sim$ 10 $\pm$	$-244697$			$-244697$
Other Comprehensive income			$\sim$	328 304	$-0$	$-1289$	$\blacksquare$	327 015
Total Comprehensive Income		$\blacksquare$	$\mathbf{r}$	328 304	$-244697$	$-1289$	$\blacksquare$	82 318
Issue of ordinary shares		$\mathbf 1$	2 4 6 2	$\qquad \qquad \blacksquare$			$\blacksquare$	2 4 6 3
Closing Balance		9 1 082 2 727 868		437 764	$-756$ 410	14 615		$-2424918$

Condensed consolidated statement of cash flows

NOK '000	Note	Q2 2021*		Q2 2020 YTD 2021*	YTD 2020	Year 2020
Net cash flows from operating activities
Profit before income tax		$-52953$	87 866	$-119053$	$-242002$	$-404828$
Adjustments for:
Taxes paid		$-12740$	$-10408$	$-20996$	$-19911$	$-41431$
Finance income (expense)		22 267	$-56543$	73 956	294 547	427 047
Depreciation and amortization		68 713	55 721	136 215	107 503	271 389
Non-cash employee benefit - share based payments		38 807	$\blacksquare$	77 187		34 711
Change in other provisions		$-4702$	$-2615$	$-5118$	$-18616$	$-19185$
Change in trade and other receivables		$-55555$	108 166	$-6$ 112	122 678	$-8383$
Change in trade and other payables		83 143	$-61245$	$-66936$	$-66785$	104 513
Net cash flows from operating activities		86 980	120 943	69 143	177 414	363 832
Net cash flows from investing activities
Payment for equipment and fixtures		2 7 2 5	382	1410	$-488$	$-9255$
Payment for intangible assets		$-31403$	$-26016$	$-53444$	$-45500$	$-105817$
Payment for acquisition of subsidiary, net of cash acquired	8	$-1741165$	۰	$-1804906$
Disposal of subsidiary
Net cash flows from investing activities		-1 769 843	$-29425$	-1856939	-49 779	$-660209$
Net cash flows from financing activities
Proceeds on issue of shares		61858		61858	2 4 6 3	2 373 513
Proceeds from borrowings	$\overline{5}$	1670020	381 166	1 670 020	551 398	2 687 634
Repayment of borrowings		$-21356$	$-117693$	$-21356$	$-118687$	-3 259 081
Interest paid		$-37$ 194	$-52226$	$-38517$	$-99682$	$-243386$
Principal elements of lease payments		$-228$	$-2808$	$-3269$	$-6226$	$-11615$
Net cash flows from financing activities		1 673 100	208 440	1 668 736	329 266	1 135 309
Effect of foreign exchange rate changes		10 4 78	$-27137$	$-25152$	$-26564$	$-33987$
Net change in cash and cash equivalents		715	272 820	$-144213$	430 336	804 946
Cash and equivalents at beginning of period		807 216	304 714	952 144	147 198	147 198
Cash and equivalents at end of the period		807931	577 534	807931	577 534	952 144

Selected notes to the accounts

Note 1 – General information

The Board of Directors approved the condensed interim financial statements for the six months ended 30 June 2021 for publication on 17 August 2021. These Group financial statements have not been subject to audit or review.

LINK Mobility Group Holding ASA (LINK) is a public limited company registered in Norway. The Company is one of Europe's leading CPaaS providers within mobile communication, specializing in messaging and digital services. Headquartered in Oslo, Norway, the Group has 651 employees and operates in 19 countries.

Note 2 – Basis for preparation and significant accounting policies

The consolidated condensed interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), IAS 34 "Interim Financial Reporting." The condensed interim financial statements do not include all information and disclosures required in the annual financial statement and should be read in accordance with the Group's annual report for 2020, which has been prepared according to IFRS as adopted by the EU.

The preparation of interim financial statements requires the Group to make certain estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income, and expenses. Estimates and judgements are continually evaluated by the Group based on historical experience and other factors, including expectations of future events that are deemed to be reasonable under the circumstances. Actual results may differ from these estimates. The most significant judgements used in preparing these interim financial statements and the key areas of estimation uncertainty are the same as those applied in the consolidated annual report for 2020.

Goodwill and other Intangible assets with an indefinite useful economic life are not amortized but are tested annually for impairment. The company performs an impairment test for goodwill on an annual basis or when there are circumstances which

would indicate that the carrying value of goodwill may be impaired. When assessing impairment, assets are grouped into cash generating units (CGU's).

The presentation currency of the consolidated financial statement is Norwegian kroner (NOK), which is also the functional currency of the parent company. Unless otherwise stated, amounts presented are in thousands of NOK

The accounting policies applied in the preparation of the consolidated interim financial statements are consistent with those applied in the preparation of the annual IFRS financial statements for the year ended December 31, 2020, except for the adoption of new and amended standards as set out below.

Hedging

The Group applies hedge accounting for hedges that meet the criteria for hedge accounting. The Group has a hedge of net investments in foreign operations.

At the inception of each hedge relationship, the Group designates and documents the hedge accounting relationship, risk management objective, and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged, and how the entity will assess the hedging instrument's effectiveness in offsetting the exposure to change in the hedged item's fair value of cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they have been highly effective throughout the financial reporting periods for which they were designated.

Hedge relationships that meet the requirements for hedge accounting are accounted for in the Group's consolidated financial statements as follows:

Hedge of a net investment

A hedge of a net investment in a foreign operation is accounted for in a similar way to a cash flow hedge. Foreign exchange gains or losses on the hedging instrument relating to the effective portion of the hedge are recognized directly in comprehensive income while any foreign exchange gains or losses relating to the ineffective portion are recognized in the income statement. On disposal of the foreign entity, the cumulative foreign exchange gains or losses recognized in other comprehensive income is reclassified to the income statement.

Exchange rate risk

Net investment hedge accounting is applied when possible.

For information related to amendments to standards, new standards, and interpretations effective from 01 January 2021, please refer to the Group Annual Report for 2020. None of the amendments, standards, or interpretations effective from 01 January 2021 have had a significant impact on the Group's consolidated interim financial information.

Note 3 – Segment reporting

The Group reports revenue, gross margin (revenue less direct costs) and adjusted EBITDA in functional operating segments to the Board of Directors (the Group's chief operating decision makers). While LINK uses all four measures to analyze performance, the Group's strategy of profitable growth means that adjusted EBITDA is the prevailing measure of performance (refer to alternate performance measures).

An examination of operating units based on market maturity and product development as well as geography identifies four natural reporting segments. These are Northern Europe, Western Europe, Central Europe, and Global Messaging; these represent market clusters. Generally, regions are segregated into similar geographic locations as these follow similar market trends. Global Messaging includes all regions with aggregator traffic; the other three have enterprise traffic.

The regions are:

Northern Europe

The Nordics is composed of Norway, Sweden, Denmark, Finland, and Baltics.

Central Europe

Central Europe is composed of Bulgaria, Romania, North Macedonia, Poland, Hungary, Germany, Austria, and the Netherlands.

Western Europe

Western Europe is composed of Spain, France, the United Kingdom, and Italy.

Global Messaging

Global messaging is comprised of non-enterprise traffic and is representative of either stand-alone business or as a component of revenues in countries included above. If a business is comprised of both enterprise and wholesale/aggregator transactions, the latter is segregated here. The Swiss operation Horisen Messaging is included here.

Wholesale/aggregator business is defined as an operating unit within LINK's industry, and that use LINK connections in markets where they do not have such connections themselves. This business can generally be referred to, at least partly, as a direct competitor that use LINK connections. Smaller local aggregators cannot be expected to be covered efficiently by Global Messaging and as such they are still subject to local handling (not a focus area though because they are generally low margin and switch easily).

NOK '000

Revenues by segment	Q2 2021*	Q2 2020*	YTD 2021*	YTD 2020*	Year 2020
Northern Europe	311,630	276,517	605,565	545,235	169,382
Central Europe	271,563	178,744	512,734	340,693	765,980
Western Europe	298,681	261,848	574,759	534,147	1 125,316
Global Messaging	173,354	123,428	307,907	264,028	478,553
Total revenues	1 055,228	840,538	2 000,964	1 684,103	3 539,231

Gross profit by segment	Q2 2021*	Q2 2020*	YTD 2021*	YTD 2020*	Year 2020
Northern Europe	91,708	89,303	180,058	173,010	350,957
Central Europe	92,663	50,724	172,332	94,269	218,603
Western Europe	67,861	67,807	130,870	136,997	276,462
Global Messaging	15,979	12,565	31,955	25,042	53,198
Total gross profit	268,211	220,398	515,215	429,318	899,220

Adj. EBITDA by segment	Q2 2021*	Q2 2020*	YTD 2021*	YTD 2020*	Year 2020
Northern Europe	58,114	62,987	115,731	118,942	240,485
Central Europe	62,918	32,605	116,001	57,945	129,283
Western Europe	30,670	24,525	55,981	55,118	127,826
Global Messaging	8,311	5.241	17.464	12,442	27,150
Group Costs	$-40,941$	$-27,471$	$-76.940$	$-61,802$	$-133,902$
Total adjusted EBITDA	119,071	97,887	228,237	182,645	390,842

Reconciliation of adjusted EBITDA to Group profit (loss) before income tax	Q2 2021*	Q2 2020*	YTD 2021*	YTD 2020*	Year 2020
Adjusted EBITDA	119,071	97,887	228,237	182,645	390,842
Non-recurring items	$-81,043$	$-10,843$	$-137,121$	$-22,597$	$-97,235$
Depreciation and amortization	$-68,713$	$-55,721$	$-136,215$	$-107,503$	$-271,389$
Operating profit	$-30,686$	31,323	$-45,099$	52,545	22,218
Finance income (expense)	$-22,267$	56,543	$-73,954$	$-294,547$	$-427,047$
Profit (loss) before income tax	$-52,953$	87,866	$-119,053$	$-242,002$	$-404,828$

*Unaudited

** Non-recurring items is comprised of amounts that relate entirely to the company. Costs related to mergers and acquisitions, personnel cost deemed to be non-recurring, restructuring expenses, advisors, licenses, and sales and marketing are included in this reconciliation line item (this list is not exhaustive).

Note 4 – Related party transactions

Balances and transactions between LINK Mobility Group Holding ASA and its subsidiaries, which are related parties of LINK Mobility Pecunia AS, have been eliminated on consolidation and are not disclosed in this note.

As of 30 June 2021, the Group has not entered into any transactions with related parties.

Note 5 – Debt

On 23rd June 2021 LINK issued EUR 170 million new bonds in LINK's outstanding 5-year senior unsecured 3.375% fixed rate bond issue, raising the total outstanding amount to EUR 370 million. The bonds were issued at par.

Non-current financial liabilities	YTD 2021*	YTD 2020*	Year 2020
Debt to financial institutions		3 047 370	5 2 3 5
Bond loan	3 689 487		2 073 280
Lease liability	32 152	15 213	30 624
Hold-back	98 969	22 930
Other long-term liabilities	3436	45 791	2 3 9 8
Total	3 820 609	3 131 304	2 109 140

Current liabilities	YTD 2021*	YTD 2020*	Year 2020
Hold-back	24 340	$\sim$	24 340
Lease liability	10 610	7 607	8619
Debt to financial institutions/bond loan*	- 42	46 714	2 9 0 4
Total	34 907	54 321	35 863

Note 6 – Options

In Q2 2021, a total expense of NOK 40 million was recognized in relation to the RSU and LTI program. Please refer to the annual report for 2020 regarding details for the respective option programs.

Note 7 – Depreciation and amortization

Depreciation and amortization are comprised of the following amounts:

Depriciation and amortization	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Year 2020
Equipment and fixtures	1739	1807	3 3 5 9	3597	7975
Right-of-use-assets	3 2 6 2	2410	7722	5 3 8 0	24 348
Intangible assets acquisitions*	45 392	41 528	88 361	81 737	164 494
Intangible assets - subsidiaries**	18 3 20	9975	36 774	16 788	74 572

Note 8 – Business combinations, closed acquisitions during second quarter

LINK agreed an exclusive term sheet to acquire Soprano Design, a global CPaaS provider headquartered in Sydney, Australia. The acquisition will give LINK a truly global footprint in high growth markets with low penetration rates like Asia-Pacific, the U.S. and Latin America. Signing of an SPA is expected imminently.

LINK acquired Message Broadcast, a leading provider of mission critical customer engagement solutions, headquartered in Newport Beach, California. The acquisition will advance LINK's position in the U.S. and significantly contribute to the organic growth and profitability of the group.

* Acquisitions: depreciation of allocated surplus values from purchase price allocations on acquisitions (Group level)

** Subsidiaries: depreciation of amounts booked in subsidiary balances. Includes book values from acquisitions

Copyright 2021 LINK Mobility. All rights reserved.

LINK finalized the acquisition of AMM S.p.A, a mobile communications company in Italy. LINK exercised its squeeze-out right pursuant to Italian rules in respect of the remaining ordinary shares in AMM not held by LINK at the closing of the Mandatory Offer. AMM was delisted from trading on AIM Italia as of 27 July 2021.

LINK acquired MarketingPlatform Aps, a developer of an omnichannel marketing platform with an integrated customer data platform (CDP), based in Vejen, Denmark. The acquisition will expand LINK's offering within the multi-channel marketing campaign management, a strong email and mobile interface, and customer data management.

INUN UUU
Category	AMM S.p.A.	MarketingPlatform	Message Broadcast
Cash paid	155 172	32 276	1 597 794
Ordinary shares issued		75 309	567 644
Earn-out (estimated)	-	30 071
Total consideration	155 172	137 655	2 165 438

Fair value of assets identified	AMM S.p.A.	MarketingPlatform	Message Broadcast
Customer relationships	44 788		806 339
Trademark	7418
Technology	16 008	166 622	130 923
Deferred tax asset	1 248
Equipment and fixtures	120
Other non-current assets	9 2 4 9		182
Trade and other receivables	40 520	1 5 9 4	29 27 2
Cash and cash equivalents	39 666	$-7807$	12 2 9 3
Long-term borrowings*	- 11 956	$-16137$
Deferred tax liability	$-16383$	$-29540$	- 196 825
Other long-term liabilities	$-2485$
Trade and other payables	$-36277$	$-6617$	$-9338$
Income tax payable	$-993$
Net identifiable assets acquired	90 923	108 115	772 846
Add: Goodwill	64 249	29 540	1 392 592
Net assets acquired	155 172	137 655	2 165 438

Note 9 – Earnings per share

The Group's earnings per share is calculated as below:

NOK '000	Q2 2021*	$Q22020*$	YTD 2021*	YTD 2020*	Year 2020
Net (loss) income	-53 990	71 548	$-103547$	-244 697	-328 006
Non-controlling interests	166	$\sim$	166	$\sim$
Owners of LINK Mobility Group Holding ASA	-53 824	71 548	-103 381	-244 697	-328 006

Weighted average number of ordinary shares (basic)	Q2 2021*	Q2 2020*	YTD 2021*	YTD 2020*	Year 2020
Issued ordinary shares at 01 January	270 911	213 656	270 911	213 656	213 656
Effect of shares issued (07 January 2020)		219		219	219
Effect of shares issued (07 January 2020)		213 875		213 875	213 875
Share split (15 September 2020)					324
Effect of shares issued (15 September 2020)					53 200
Effect of shares issued (05 October 2020)					3512
Effect of shares issued (16 November 2020)
Effect of shares issued (11 March 2021)			1 2 2 7
Effect of shares issued (31 May 2021)	1688		1688
Effect of shares issued (07 June 2021)	1723		1723
Effect of shares issued (24 June 2021)	16 755		16 755
Weighted average number of ordinary shares Basic (loss) earnings per share (NOK)	291 077 (0, 18)	213 875 0,33	292 304 (0, 35)	213 875 (1, 14)	270 911 (1,21)
Weighted average number of ordinary shares (diluted)	Q2 2021*	Q2 2020*	YTD 2021*	YTD 2020*	Year 2020
Weighted average number of ordinary shares (basic)	291 077	213 875	292 304	213 875	270 911
Effect of share options on issue Weighted average number of ordinary shares (diluted)	291 077	213 875	292 304	213 875	270 911
Diluted (loss) earnings per share (NOK)	(0, 18)	0,33	(0, 35)	(1, 14)	(1,21)
Number of outstanding ordinary shares per 01.01	270 911	213 656	270 911	213 656	213 656
Number of outstanding ordinary shares per period end	291 077	213 875	292 304	213 875	270 911

There are no preference shares at the end of FY2020.

Copyright 2021 LINK Mobility. All rights reserved.

Declaration on the financial statements

We confirm that the financial statements for the first half of 2021, to the best of our knowledge, have been prepared in accordance with International Financial Reporting Standards (IFRS), give a true and fair view of the company's consolidated assets, liabilities, financial position and results of operations, and that the first half-year report of 2021 includes a fair review of the development, results and position of the company, together with a description of the most central risks and uncertainty factors facing the company.

Oslo, 16 August 2021 The Board of LINK Mobility Group Holding ASA

Jens Rugseth Robert Joseph Nicewicz Jr Charles Joseph Brucato

III

Chairman of the Board Board Member Board Member

Ralph Paul Choufani Katherine Ji-Young Woo Grethe Helene Viksaas Board Member Board Member Board Member

Sara Katarina Murby Forste

Board Member

ALTERNATIVE PERFORMANCE MEASURES ("APM'S")

The financial information in this report is prepared under International Financial Reporting Standards (IFRS), as adopted by the EU. To enhance the understanding of LINK's performance, the Group presents several alternative performance measures ("APM's"). An APM is defined by the European Securities and Markets Authority (ESMA) guidelines as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework (IFRS).

Below, LINK presents certain APMs, including gross margin, EBITDA, adjusted EBITDA, and adjusted EBITDA margin. APMs such as EBITDA are commonly reported by companies in the markets in which LINK competes and are widely used by investors when comparing performance on a consistent basis without regard to factors such as depreciation and amortization, which can vary significantly, depending upon accounting methods (particularly when acquisitions have occurred) or based on non-operating factors.

LINK uses the following APMs:

Gross Profit

Gross Profit means revenues less direct costs of services rendered.

Gross margin

Gross margin means gross profit as a percentage of total operating revenues.

Adjusted EBITDA

Adjusted EBITDA means EBITDA adjusted by expenses related to significant onetime, non-recurring events such as acquisitions and restructuring activities, legal advisors, and share-based compensation. LINK has presented adjusted EBITDA in the consolidated statement of profit and loss because management believes the measure provides useful information regarding operating performance.

Adjusted EBITDA margin

Adjusted EBITDA margin is presented as adjusted EBITDA as a percentage of total operating revenues in the respective periods.

EBITDA

EBITDA means earnings before interest, taxes, amortization, depreciation, and impairments. LINK has presented EBITDA in the consolidated statement of profit and loss because management believes that the measure provides useful information regarding the Group's ability to service debt and to fund capital expenditures and provides a helpful measure for comparing its operating performance with that of other companies.

See below for a reconciliation of EBITDA to Adjusted EBITDA, and adjusted EBITDA margin.

NOK '000	Q2 2021	Q2 2020*	YTD 2021*	YTD 2020*	Year 2020
Operating profit (loss, ("EBIT")	$-30686$	31 323	-45 099	52 545	22 218
Depreciation and amortization	68 713	55 7 21	136 215	107 503	271 389
EBITDA	38 0 28	87 044	91 116	160 047	293 607
Add: Restructuring cost	6 109	9 2 0 6	12 697	19 250	47 400
Add: Share based compensation	40 077		81 391		34 711
Add: Expenses related to acquisitions	34 857	1637	43 033	3 3 4 8	15 123
Adjusted EBITDA	119 071	97 887	228 237	182 645	390 842
Operating revenues	1 055 228	840 538	2 000 964	1684 103	3 539 231
Adjusted EBITDA	119 071	97887	228 237	182 645	390 842
Adjusted EBITDA margin	11,3%	11,6 %	11,4%	10,8 %	11,0%

Net debt

The Group monitors Net debt according to Bond loan terms which includes interestbearing debt and debt like arrangements. Net debt is derived from the balance sheet and consists of both current and non-current liabilities such as bond loan, other debt from financial institutions and current and non-current lease liabilities less cash and cash equivalents. Sellers credits, holdback and earn-outs are excluded as they are not interest-bearing.

Net debt/LTM Adjusted EBITDA

LINK measures leverage ratio as Net debt/Last Twelve Months Adjusted EBITDA. The measure provides useful information about the financial position. Due to the significant M&A activity LINK use Last Twelve Months Proforma Adjusted EBITDA to calculate net debt to present a comparable measure over time.

Below is a reconciliation of Net debt and Net debt/Adjusted EBITDA ratio*:

NOK '000	Q2 2021	Year 2020
Bond loan	3 689 487	2 073 280
Other long term	10 547	5 2 3 5
IFRS 16 liabilities	42 762	39 244
Less cash	$-807931$	$-952$ 144
Net debt	2934865	1 165 615
LTM adjusted EBITDA (proforma)	622 333	435 169
Net debt/LTM adjusted EBITDA	4,7	2,7

* The leverage definition of the legacy SFA agreement is not directly comparable with the Bond loan terms and is hence omitted for the historical periods