Year-end report January – December 2022

Lime Technologies AB (publ)

"Dynamic strategy for continued profitable growth"

The CEO's view Growth Proposed dividend

Good profitability allows for continued investment and increased dividends

The period in summary

The fourth quarter

» Net sales MSEK 135.8 (113.7), rendering a sales growth of 19 % (22 %)
» Recurring revenue MSEK 78.9 (68.1)
» The quarter was impacted by items affecting comparability amounting to MSEK 0.0 (-0.0) (attributable to acquisitions)
» EBITA MSEK 34.1 (29.2), rendering an EBITA margin of 25 % (26 %)
» Adjusted EBITA margin 25 % (26 %)
» Operating income, EBIT, MSEK 25.7 (19.6)
» Cash flow from current operations MSEK 48.6 (39.5)
» Net income MSEK 19.1 (15.2)
» Basic earnings per share amounted to SEK 1.44 (1.14) and diluted to SEK 1.43 (1.14)

2022 in brief

» Net sales MSEK 490.4 (403.8), rendering a sales growth of 21 % (19 %)
» Recurring revenue MSEK 299.4 (246.0)
» The first twelve months were impacted by items affecting comparability amounting to MSEK 0.0 (-1.1) (attributable to acquisitions)
» EBITA MSEK 125.1 (107.5), rendering an EBITA margin of 26 % (27 %)
» Adjusted EBITA margin 26 % (27 %)
» Operating income, EBIT, MSEK 91.0 (76.0)
» Cash flow from current operations MSEK 118.6 (124.6)
» Net income MSEK 67.8 (58.7)
» Basic earnings per share amounted to SEK 5.11 (4.42) and diluted to SEK 5.08 (4.42)
» The remaining 35% of the shares of Lime Technologies Gävle AB acquired, additional 14% of the shares in Lime Intenz AB acquired
» The Board proposes the general meeting a dividend of SEK 2.80 (2.60)

	2022 Q4	2022 Q3	2022 Q2	2022 Q1	2021 Q4	2021 Q3*	2021 Q2*	2021 Q1	2020 Q4
Net sales (MSEK)	135.8	111.9	123.9	118.7	113.7	92.8	103.0	94.4	93.1
Recurring revenue (MSEK)	78.9	75.2	73.5	71.9	68.1	64.7	60.9	52.2	50.5
EBITDA (MSEK)	41.3	36.3	38.6	37.6	34.8	32.5	33.1	32.4	36.1
EBITDA (%)	30%	32%	31%	32%	31%	35%	32%	34%	39%
EBITA (MSEK)	34.1	28.9	31.7	30.4	29.2	25.5	26.5	26.3	30.6
EBITA (%)	25%	26%	26%	26%	26%	27%	26%	28%	33%
Adjusted EBITA	34.1	28.9	31.7	30.4	29.2	25.5	27.6	26.2	29.3
Adjusted EBITA (%)	25%	26%	26%	26%	26%	27%	27%	28%	31%
Operating income, EBIT (MSEK)*)	25.7	20.3	23.2	21.8	19.6	15.9	18.7	21.9	26.3
Operating income, EBIT (%)*)	19%	18%	19%	18%	17%	17%	18%	23%	28%
Earnings per share, basic (SEK)	1.44	1.11	1.35	1.22	1.14	0.93	1.08	1.26	1.52
Earnings per share, diluted (SEK)	1.43	1.10	1.34	1.22	1.14	0.93	1.08	1.26	1.52
Cash flow from current operations (MSEK)	48.6	17.7	22.8	29.6	39.5	12.8	47.4	24.9	46.4

CEO's comments

Dynamic strategy for continued profitable growth

We ended the last quarter of the year on a positive note despite the challenging global context. Net sales growth totalled 19 % and profitability remained good with an EBITA margin of 25 %. We also continued to strengthen our organic growth with a good performance in Europe as well as in our Swedish home market. Growth for the full year stands at 21 % and profitability at 26 %, while we continue to invest heavily in people, marketing and our product offering to build an even stronger Lime for the future. Our overall financial position leads the Board to propose an increased dividend, equivalent to SEK 37.2 million.

Business-critical systems drive growth – in boom and bust

Most companies in the market have a strong need to accelerate their digitalisation journey for more efficient management of customer data and communications. This is something we are seeing particularly clearly right now through our focus on the real estate and utility sectors. Through self-service solutions, such as automated email feeds, website forms and 'My Pages', we make life easier for the end customer, helping to strengthen our customers' position in a competitive market. In self-service, we also believe there is great value in developments in Artificial Intelligence – a topic that has recently been widely discussed in the media. That means we're particularly excited to launch our AI-powered chatbot this quarter, which frees up time for businesses at the same time as improving the experience for our customers' customers.

Taking the long-term view – a dynamic strategy in an unsettled market

The situation for many growth companies has been turbulent for much of 2022, and the tech sector has been particularly affected. Thanks to our profitable business model, we have been able to invest more than ever at a time when many companies are being forced to lay off workers. In 2022, we set a new record with 110 recruitments – a major investment that will contribute to positive results in the short and long term. We also already have a number of candidates in the pipeline for the next major onboarding of employees in August 2023. In addition to investing in people, we continue to build a more international company with strong focus verticals through brand-building efforts and an even more competitive product offering.

Positive business performance with new customers in all markets and in our focus verticals

Business developed well in our markets during the quarter and we closed a lot of important deals around Europe, including German company REMONDIS Maintenance & Services GmbH & Co. KG, Dutch company LBV-Aanvraag and Swedish wholesale company Båstadgruppen AB. We also anticipate continued strong growth in our utility vertical, where we welcome Uppsala Vatten & Avfall AB and

Landskrona Energi as customers. There is no sign of a slowdown in demand at the moment but, as always in a challenging market, it is important to stay close to the business and remain humble and adaptable in case the situation changes.

Good profitability allows for continued investment and increased dividends

Despite significant investments during the year, our profitability for the full year 2022 remained good with an EBITA margin of 26 % – fully in line with our financial target of at least 25 % in the medium term. Our improved cash flow from operating activities and our overall financial position allows us to increase dividends, so the Board of Directors proposes a dividend of SEK 2.80 per share, equivalent to SEK 37.2 million.

A strong finish to a strong year with improved organic growth

Looking back on 2022, I am proud that we have continued to deliver long-term profitable growth and are gradually strengthening our core business, resulting in improved organic growth. Lime's strength lies in taking a long-term view, combined with a short-term focus that keeps us close to the business and ensures we deliver on a daily basis – in a proactive and agile manner. Having the courage to invest in tougher times is part of our identity, and history shows that we can continue to perform while building an even stronger Lime. As we head into 2023, we want to continue to do just that – delivering day-to-day, but always with long-term goals and a focus on Lime's growth journey.

/Nils Olsson, Managing Director and CEO, Lime Technologies

This is Lime CRM with a twist

Since day one, our goal has been to make it easy to create exceptionally good customer relationships. With over 30 years of experience behind us, the balance we have achieved between commitment and technology has made us one of the Nordics' leading suppliers of CRM (Customer Relationship Management). We are now helping thousands of companies in Europe exceed their customers' expectations. We call this "CRM with a twist".

Business Idea:

To be a full-service SaaS supplier for customer care solutions with a strong local presence

Lime is a one-stop-shop organisation providing development, sales, implementation and support for CRM systems. This creates a competitive comprehensive offering, and enables effective and value-generating customer care solutions. With close to 400 employees located on-site in Sweden, Norway, Denmark, Finland, the Netherlands, Poland and Germany.

Product portfolio & expertise

Lime CRM is a flexible, scalable SaaS platform, consisting of a well-proven base of basic functionality, which is combined with additional modules and packaged to meet unique industry requirements and workflows.

Lime Go is a cloud-based SaaS service, developed to maximise sales in sales organisations. The tool provides effective control over upcoming transactions, and is loaded with company and contact information.

Userlike is a webchat and Customer Messaging solution which improves and simplifies communication between companies and customers. By bringing together all types of messages in the same inbox, it enables effective dialogue with the customer in all modern channels.

Customer care is more than just software, and success in the implementation of new systems requires changes in behaviour. Through Lime Intenz, we help companies strengthen a successful corporate culture, proactive sales culture and effective leadership.

Lime in summary

January-December 2022

Revenue

Net sales

Net sales in the fourth quarter 2022 amounted to MSEK 136 (114), a growth of 19 % (22).

Net sales during 2022 amounted to MSEK 490 (404), rendering an increase of 21 % (19).

Net sales by category

59 % (60) of net sales in the fourth quarter 2022 relate to software revenue.

62 % (61) of net sales in 2022 relate to software revenue.

Software revenue increased by 16 % (33) during the fourth quarter 2022 compared to the fourth quarter 2021.

Net sales per segment

Net sales in the fourth quarter 2022 in Sweden amounted to MSEK 95 (82) and MSEK 41 (32) in the Rest of Europe. Net sales growth for the quarter was 16 % (9) in Sweden and 29 % (81) in the rest of the European countries.

Net sales during 2022 in Sweden amounted to MSEK 341 (301) and MSEK 150 (103) in the rest of the European countries.

Annual Recurring Revenue

The 12-month recalculated recurring revenue, Annual Recurring Revenue (ARR), at the end of the fourth quarter 2022 was MSEK 321 (279). The 12-month recalculated recurring revenue increased by 15 % (35) compared to the corresponding period last year.

Recurring revenue

Recurring revenue amounted to MSEK 79 (68) during the fourth quarter 2022, an increase of 16 % (35) compared to the same period last year. Recurring revenue amounted to MSEK 299 (246) during the first twelve months in 2022, an increase of 22 % (27) compared to the corresponding period last year.

Operating income EBITDA

Operating income before depreciation/ amortisation during the fourth quarter – EBITDA – amounted to MSEK 41 (35) corresponding to an operating margin before depreciation/ amortisation, EBITDA, of 30 % (31). Adjusted for items affecting comparability, EBITDA was MSEK 41 (35) in the quarter, corresponding to a margin of 30 % (31).

EBITDA amounted to MSEK 27 (25) in Sweden and MSEK 14 (10) in the Rest of Europe during the fourth quarter 2022.

The policy measures adopted to reduce the spread of the Covid 19 virus at the end of the first quarter of 2020 were largely reversed during the second half of 2021. As a result, the opportunities for travel and other physical sales activities increased. Furthermore, this has enabled us to maintain our trainee programme with physical presence. Consequently, compared with 2021, we again have the opportunity to invest in our customers and staff.

2022 operating income before depreciation - EBITDA - amounted to MSEK 154 (133), corresponding to an EBITDA margin of 31 % (33). Adjusted EBITDA was MSEK 154 (134) during the same period and corresponding margin was 31 % (33).

EBITDA in Sweden amounted to MSEK 101 (95) and MSEK 53 (38) in the Rest of Europe during 2022.

EBITA

During the fourth quarter 2022 operating income, excluding amortisation on acquired surplus values – EBITA – amounted to MSEK 34 (29), corresponding to an EBITA margin of 25 % (26). Adjusted for items affecting comparability, EBITA during the fourth quarter 2022 amounted to MSEK 34 (29), corresponding to an EBITA margin of 25 % (26).

Adjusted EBITA during 2022 amounted to MSEK 125 (107), corresponding to an EBITA margin of 26 % (27).

EBIT

Operating income during the fourth quarter 2022, EBIT, amounted to MSEK 26 (20), corresponding to an operating margin of 19 % (17). Adjusted for items affecting comparability, EBIT during the fourth quarter 2022 amounted to MSEK 26 (20), corresponding to an EBIT margin of 19 % (17).

Opreting income during 2022 - EBIT - amounted to MSEK 91 (76), corresponding to an EBIT margin of 19 % (19).

Depreciations increased compared to the same period last year as a result of increased investments in capitalised development work done by Lime employees and depreciation of intangible non-current assets relating to business acquisitions.

Recurring Revenue / Operating expenses

The rolling 12-month recurring revenue amounted to 75 % (75) of the rolling total costs at the end of the fourth quarter of the year. The expenses include one-off items affecting comparison.

Cash flow & investments

During the fourth quarter 2022 cash flow from operating activities amounted to MSEK 48.6 (39.5).

During 2022 cash flow from current operations amounted to MSEK 118.6 (124.6). The change compared to the previous year is explained by taxes paid and changes in working capital.

During the fourth quarter 2022 investments in tangible non-current assets amounted to MSEK 1.2 (0.1), excluding right-to-use assets. Investments in intangible non-current assets amounted to MSEK 8.3 (5.6) and consist of capitalisation of development costs relating to new technology platforms.

Druing 2022 investments in tangible non-current assets amounted to MSEK 1.4 (1.3), excluding rightto-use assest. Investments in tangible non-current assets amounted to MSEK 27.1 (21.0) during the same period.

In the fourth quarter 2022, amortisation of capitalised development costs amounted to MSEK 3.8 (3.2) and amortisation of right-to-use assets amounted to MSEK 3.2 (2.4).

Amortization of capitalized development costs amounted to MSEK 15.4 (12.8) during 2022 and amortization of right-to-use assets amounted to MSEK 12.1 (11.6).

Equity & liabilities

The Group's equity amounted to MSEK 205 (135).

At the Annual General Meeting on 26 April 2022, it was resolved to distribute dividends of SEK 2.60 per share, corresponding to a total amount of MSEK 34.5. The record date was 28 April and the dividend was paid out on 3 May.

The Group's interest-bearing liabilities amounted to MSEK 224.1 (294.5) at the end of the period, including leasing liabilities relating to right-to-use assets of MSEK 35.0 (25.8) and a liability of MSEK 25.0 (54.3) relating to the acquisition of Userlike UG and Lime Intenz AB. A total of MSEK 15.7 (42.3) of the Group's interest-bearing liabilities have been repaid during the quarter. A bank overdraft facility of MSEK 0 was utilised by the end of the period.

Cash and cash equivalent amounted to MSEK 35.4 (55.2) at the end of the period. The Group's net debt amounted to MSEK 188.0 (238.6).

Share Saving programme

On 26 April 2022 the Annual General Meeting made a decision to introduce a share savings programme, LTIP 2022. All Lime employees were offered the opportunity to participate as of 1 May 2022. The programme assumes that the participants will acquire shares in the Company at market price on the Nasdaq Stockholm during the period between 1 June 2022 and 31 May 2023.

Provided that the participants keep the shares for the entire period ending on 31 May 2025, that the participant is employed for the duration of the period, and that Lime meets its performance criteria, each share will entitle the participant to two or three shares, depending on their role, against payment of the share's quota value. The performance criteria are determined by the Board and are in line with Lime's financial goals.

The fair value of the incentive shares is determined by the value at the time of subscription. Because this is a share-related payment that is regulated with equity instruments, no revaluation is made of the fair value of the incentive shares.

Lime will estimate how many of the employees who are participating in the programme will remain in employment during the entire threeyear period, up to and including 31 May 2025.

Share warrants

On 26 April, the Annual General Meeting also made the decision to issue 68,160 share warrants free of charge to the wholly-owned subsidiary Hysminai AB. The share warrants will be used to secure Lime's commitment in relation to the share savings programme, LTIP 2022.

Lime Technologies AB's share

Lime Technologies AB (publ.) is listed on Nasdaq Stockholm OMX Mid Cap, the Technology sector. Total number of shares issued was 13,283,481 at the end of the period. The company does not own any of its own shares.

Financial goals

Lime's goal is to achieve annual net sales growth exceeding 18 percent, in the medium long term. Lime further aims to achieve an annual EBITA margin in excess of 25 percent in the medium long term. The objective of the capital structure is that net liabilities, excluding leasing debt, relative to EBITDA shall be less than 2.5. Lime intends to distribute available cash flow after consideration has been given to the Company's indebtedness and future growth opportunities, including acquisitions. The target is to distribute at least 50 percent of the Company's annual net income.

Other

Employees

The Group had 399 (354) employees at the end of the reporting period. The average number of employees was 352 (297) during the period.

The Parent Company

The Parent Company's activities are primarily focused on group management and financing. The company has no other employees apart from the Group CEO and CFO at the end of the period. During the fourth quarter 2022, operating profit/ loss in the Parent amounted to MSEK -1.5 (-0.9). Operating income during 2022 amounted to -3.3 (-4.3). Cash and cash equivalent amounted to MSEK 0.4 (0.0) and borrowings to MSEK 162.5 (212.5).

Annual General Meeting 2022

At the Annual General Meeting on April 27, 2022, it was resolved to re-elect the following directors of the board: Marlene Forsell, Martin Henricson, Malin Ruijsenaars, Lars Stugemo and Erik Syrén. Martin Henricson was elected chairman of the board.

Other resolutions made at the Annual General Meeting;

» Resolution to distribute dividend of SEK 2.60 per share, corresponding to a total amount of MSEK 34.5. 28 April was the record date for dividend and the payment date was 3 May.
» Resolution to adopt guidelines for renumeration to the company's senior executives.
» It was resolved to authorise the board of directors to, at one or more occasions, until the 2022 Annual General Meeting, resolve to issue

shares in exchange for cash payment, with provision for non-payment or set-off or otherwise with conditions, and thereby be able to deviate from the shareholders' preferential rights. The authorisation is limited to a maximum of 10 % of the total number of shares in the company at the time of the resolution on authorisation.

» It was resolved to establish a share saving program and issue warrants in wich all employees may be granted up to a total of 68,160 shares, subject to making their own investments in Savings Shares and keeping them during the period 1 June to 31 may 2025, that they are employed by Lime at the end of the period and that Limes financial targets are met. To ensure delivery of the incentive shares it was resolved to issue a maximum of 68,160 warrants.

Nomination committee

Based on guidelines resolved at the Annual General Meeting in April 2021, the following persons have been appointed to be part of Lime's Nomination Committee:

» Andreas Hedskog, Syringa Capital AB (owned by Erik Syrén) representing 10.1% of the shares
» Emil Hjalmarsson, as chairman, Grenspecialisten AB, representing 10.0% of the shares
» Johanna Ahlqvist, Cliens Kapitalförvaltning AB (through fonds), representing 8,5% of the shares and
» Martin Henricsson, adjunct to the Nomination Committee, chairman of the board.

The Nomination Committee will prepare proposals to the 2023 Annual General Meeting regarding chairman of the meeting, board members, chairman of the board, remuneration to the board members, auditors, auditors' fees, the composition of the Nomination Committee and its duties in preparation for the 2024 Annual General Meeting.

In November 2022, the company was informed that the Chairman of the Board, Martin Henricson, will not stand to be re-elected to Lime's Board at the 2023 AGM, and that the Nomination Committee will propose Erik Syrén as the new Chairman of the Board.

Shareholders wishing to submit proposals to the Nomination Committee can do so via e-mail to [email protected]. March 15, 2023 (six weeks prior to the Annual General Meeting on 26 April, 2023) is the last day to submit proposals to the Nomination Committee for consideration at the 2023 Annual General Meeting.

Other events during or after the reporting period

The macroeconomic uncertainty resulting from the Russian invasion of Ukraine and the general business cycle may affect our operations. The macroeconomic turmoil caused by Russia's invasion of Ukraine, resulting in higher energy prices, high inflation and an uncertain economic outlook, may affect our business. At present, we see no direct impact on Lime, but the long-term effects are difficult to assess, and it is not possible to rule out negative consequences.

The combination of, on one hand, Lime's focused subscription sales with a high percentage of recurring revenue, and on the other hand, its large customer base, means Lime is fairly well equipped to face a recession and the impact on Limes result and financial position has been limited during 2022.

Lime has during the reporting period signed an agreement for a bank credit facility of MSEK 25.

Lime acquired the remaining 35 % of the shares of Lime Technologies Gävle AB on 9 February 2022. Since that date, Lime Technologies Gävle AB has been wholly-owned by Lime Technologies Sweden AB.

Lime acquired an additional 14 % of the shares of Lime Intenz AB during the second quarter 2022.

Lime in brief

Comprehensive SaaS supplier of customer care solutions

Lime has more than 30 years' experience of CRM (Customer Relationship Management) and provides a full service from development to support. The Company is the only supplier with a clear and transparent strategy of working locally through a direct channel, and makes hundreds of implementations very year.

Our business model is based on offering subscription contracts (Software as a Service or "SaaS"), as well as consultancy services (Expert Services) for implementing and continuously adapting the products in line with customerspecific needs and requirements. With a strong product portfolio under constant development, Lime creates effective solutions for small, mediumsized and large organisations, in addition to wellestablished industry solutions within the Company's industry verticals.

The Head Office is in Lund, and in September 2022, the Group had 399 employees at ten offices in Sweden, Norway, Denmark, Finland, the Netherlands, Poland and Germany.

Lime's core and mission

Lime's overall core and mission are summarised in the Company's "Why Statement", focusing on customer experiences which exceed expectations.

"We go all-in to create a world where every customer experience exceeds expectations, making customers' lives easier through spot-on software and on-point expertise."

Strategies

Continued structural market growth

Lime is one of the leading CRM suppliers in the Nordic Region, and the Company's long-term target is the rest of Europe, which offers a growing market with low CRM penetration. Lime intends to continue to strengthen its presence in existing markets to meet the need for CRM systems, and to grow organically through sales of both licences and ancillary modules.

Selective acquisitions

An essential part of Lime's strategy is to actively evaluate strategic acquisitions so as to strengthen the product offering, increase the Company's expertise and resources, grow geographically and broaden the customer base.

Upgrades and increased sales to our existing customer base

Lime intends to increase both revenue and customer satisfaction through an expanded focus on upgrading the outgoing Lime Easy products to the more modern SaaS solutions, as well as

transitioning from up-front payments to subscription services. The Company has also expanded its ability to assist existing customers and handling major parts of the customer interaction through ancillary services for marketing, case management and sales, as well as related expert services.

Focus on selected verticals

Lime focuses on customised CRM solutions for four selected market verticals: energy, properties, wholesale and consulting companies, for which Lime offers local industry-specific expertise. In combination with pre-packaged solutions for each vertical, this benefits customers through flexible solutions, as well as time and cost savings.

Continued development of the product platform

Lime's platform is under constant development with the aim of strengthening competitiveness, meeting changed market needs and attracting new customers. With a strong market position, broad customer base and close contact with its customers, Lime is strongly placed for cross sales and additional sales of new services and functions aimed at increasing sales growth and broadening the use of services and solutions.

Forward-looking information

This report may contain forward-looking information based on management's current expectations.

Although management believes the expectations expressed in such forward-looking information are reasonable, there are no assurances that these expectations will be correct.

Consequently, future outcomes may vary considerably compared to the forward-looking information due to, among other things, changed market conditions for Lime's products and more general changes to economic, market and competitive conditions, changes to regulatory requirements or other policy measures and exchange rate fluctuations.

Upcoming reporting dates

» Annual report 2022, presented March 22, 2023
» Interim report Q1 2023, presented April 26, 2023
» Annual General Meeting, April 26, 2023
» Interim report Q2 2023, presented July 14, 2023
» Interim report Q3 2023, presented October, 2023

Lund, February 20, 2022

Nils Olsson CEO

Additional information can be obtained from:

CEO Nils Olsson, phone +46 8 562 77 603 or CFO Maria Wester, phone +46 732 04 44 54

This report has not been subject to review by the company's auditor.

This information constituted insider information prior to publication. This is information that Lime Technologies AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation.

The report has been published in both English and Swedish. This is an unaudited translation of the Swedish interim report. Should there be any disparities between the Swedish and the English version, the Swedish version shall prevail.

Key ratios for the Group

	Q4 2022	Q4 2021*	Q1 - Q4 2022	Q1 - Q4 2021*
Net sales (MSEK)	135.8	113.7	490.4	403.8
Growth in net sales (%)	19%	22%	21%	19%
Organic net sales growth (%)	19%	11%	18%	11%
Recurring revenue (MSEK)	78.9	68.1	299.4	246.0
Annual recurring revenue (MSEK)	321.5	278.9	321.5	278.9
EBITA (MSEK)	34.1	29.2	125.1	107.5
EBITA (%)	25%	26%	26%	27%
EBITDA (MSEK)	41.3	34.8	153.8	132.8
EBITDA (%)	30%	31%	31%	33%
Operating income. EBIT (MSEK)	25.7	19.6	91.0	76.0
Operating income. EBIT (%)	19%	17%	19%	19%
One-off items (MSEK)	0.0	0.0	0.0	-1.1
Depreciation right-to-use assets (MSEK)	-3.2	-2.4	-12.2	-11.6
Adjusted EBITA (MSEK)	34.1	29.2	125.1	108.6
Adjusted EBITA (%)	25%	26%	26%	27%
Adjusted EBITDA (MSEK)	41.3	34.8	153.8	133.9
Adjusted EBITDA (%)	30%	31%	31%	33%
Adjusted EBIT (MSEK)	25.7	19.6	91.0	77.1
Adjusted EBIT (%)	19%	17%	19%	19%
Earnings per share (SEK)	1.44	1.14	5.11	4.42
Earnings per share. diluted (SEK)	1.43	1.14	5.08	4.42
Net debt (MSEK)	188.0	238.6	188.0	238.6
Number of employees (average)	352	297	352	297
Net sales per employee (MSEK)	1.4	1.4	1.4	1.4
Cash flow from current operations per share (SEK)	3.7	3.0	8.9	9.4
Average number of outstanding shares (thousands)	13,283.5	13,283.5	13,283.5	13,283.5

*) Recalculated after finalizing the purchase price allocation of Userlike UG. For definition of key rations, see pages 26-29.

Consolidated income statement in summary (TSEK)

	Q4 2022	Q4 2021*	Q1 - Q4 2022	Q1 - Q4 2021*
Net sales	135,799	113,680	490,350	403,848
Other income	274	106	1,445	252
Gross income	136,073	113,785	491,795	404,100
Operating expenses
Compensation to employees	-76,075	-62,310	-270,865	-222,206
Capitalised development work by own employees	8,288	5,603	27,129	20,964
Depreciation	-15,631	-15,219	-62,780	-56,808
Other expenses	-26,965	-22,305	-94,264	-70,018
Share in earnings of associated companies	0	0	0	0
Total operating expenses	-110,383	-94,231	-400,780	-328,068
Operating income	25,690	19,554	91,015	76,031
Financial net	-2,159	-1,439	-7,449	-4,697
Income after financial items	23,531	18,115	83,566	71,334
Taxes	-4,443	-2,941	-15,745	-12,643
Net income for the period	19,088	15,174	67,821	58,691
Net income attributed to:
The shareholders of the Parent	19,088	15,174	67,821	58,691
	19,088	15,174	67,821	58,691
Other Information
Earnings per share, basic (SEK)	1.44	1.14	5.11	4.42
Earnings per share, diluted (SEK)	1.43	1.14	5.08	4.42

Consolidated statement of other comprehensive income (TSEK)

	Q4 2022	Q4 2021*	Q1 - Q4 2022	Q1 - Q4 2021*
Net income for the period	19,088	15,174	67,821	58,691
Other comprehensive income
Items that may be reclassified to the income statement:
Revaluation warrant liability	2,323	-2,807	18,794	-2,307
Translation adjustments	5,420	-1,459	16,508	1,050
Other comprehensive income for the period, net of tax	7,743	-4,266	35,302	-1,257
Other comprehensive income for the period	26,831	10,909	103,123	57,434

Other comprehensive income for the period, attributed to:
the shareholders of the Parent	26,831	10,909	103,123	57,434
	26,831	10,909	103,123	57,434

Consolidated balance sheet in summary (TSEK)

	31 Dec 2022	31 Dec 2021*
ASSETS
Goodwill	235,240	222,076
Other non-tangible non-current assets	268,204	281,627
Right-to-use assets	34,992	25,828
Tangible non-current assets	3,413	2,791
Other financial non-current assets	784	700
Deferred tax asset	11	61
Total non-current assets	542,644	533,083
Trade receivables	76,721	64,929
Other current receivables	9,157	11,908
Cash and cash equivalent	35,409	55,167
Total current assets	121,287	132,004
Total assets	663,931	665,087

EQUITY AND LIABILITIES
Total equity	205,321	135,066

LIABILITIES
Non-current liabilities
Interest-bearing non-current liabilities	112,500	162,509
Non-current leasing liabilities	26,307	17,381
Other non-current liabilities	0	40,294
Deferred tax liabilities	71,553	74,979
Total non-current liabilities	210,360	295,163

Current liabilities
Current interest-bearing liabilities	75,017	64,189
Bank overdraft facility	0	0
Current leasing liabilities	10,322	10,079
Accounts payable	6,151	8,028
Other current liabilities	156,760	152,562
Total current liabilities	248,250	234,858
Total equity and liabilities	663,931	665,087

Consolidated statement of changes in equity (TSEK)

	Attributable to the Parent Company's shareholders
	Share capital	Other contributed capital	Reserves	Retained earnings	Total equity
Opening balance January 1, 2021 accord ing to adopted balance sheet	531	58,100	-210	52,419	110,840
Net income for the period				58,692	58,692
Other comprehensive income for the year			-1,258		-1,258
Total other comprehensive income	0	0	-1,258	58,692	57,434
Transactions with owners
Dividend				-33,209	-33,209
Total transactions with owners	0	0	0	-33,209	-33,209
Closing balance 31 December 2021 *	531	58,100	-1,468	77,903	135,066
Opening balance January 1, 2022 accord ing to adopted balance sheet	531	58,100	-1,468	77,903	135,066
Net income for the period				67,821	67,821
Share Saving Program			1,669		1,669
Other comprehensive income for the year			35,302		35,302
Total other comprehensive income	0	0	36,971	67,821	104,792
Transactions with owners
Dividend				-34,537	-34,537
Total transactions with owners	0	0	0	-34,537	-34,537
Closing balance 31 December 2022	531	58,100	35,503	111,187	205,321

Consolidated cash flow analysis (TSEK)

	Q4 2022	Q4 2021	Q1 - Q4 2022	Q1 - Q4 2021
Cash flow from current operations
Cash flow from operations	42,241	34,797	153,724	132,863
Changes in net working capital	12,619	6,170	4,304	11,165
Interest paid	-1,642	-1,103	-5,046	-4,915
Taxes paid	-4,603	-382	-34,350	-14,470
Cash flow from current operations	48,615	39,482	118,632	124,643

Cash flow from investing activities
Investment in intangible non-current assets	-8,288	-5,603	-27,129	-20,964
Investment in tangible non-current assets	-1,162	-60	-1,412	-1,288
Sales of tangible non-current assets	0	0	0	665
Acquisition of group companies	0	0	0	-202,190
Investment in financial non-current assets	50	-13	-53	-21
Interest received	0	0	24	0
Cash flow from investing activities	-9,400	-5,675	-28,570	-223,797

Cash flow from financing activities
Dividend	0	0	-34,537	-33,209
Proceeds from borrowings	0	0	0	254,804
Bank overdraft facility	-18,372	0	0	0
Amortisation of borrowings	-15,750	-41,226	-78,165	-132,571
Cash flow from financing activities	-34,122	-41,226	-112,702	89,024
Net cash flow	5,092	-7,419	-22,640	-10,130
Net change in cash flow
Cash and cash equivalent, beginning of the period	29,937	62,355	55,167	64,662
Exchange rate changes on cash	380	231	2,882	635
Cash and cash equivalent, end of period	35,409	55,167	35,409	55,167

Parent's income statement in summary (TSEK)

	Q4 2022	Q4 2021	Q1 -Q4 2022	Q1-Q4 2021
Net sales	0	0	0	0
Other income	1,286	1,083	6,428	5,281
Gross income	1,286	1,083	6,428	5,281

Operating expenses
Compensation to employees	-1,624	-1,432	-7,186	-6,571
Other expenses	-1,205	-514	-2,557	-3,023
Total operating expenses	-2,829	-1,946	-9,743	-9,594

Operating income	-1,543	-863	-3,315	-4,313
Financial income	0	0	0	169
Financial expenses	-2,447	-1,604	-8,521	-4,223
Income after financial items	-3,990	-2,467	-11,836	-8,367

Transfers to / from untaxed reserves	90,000	77,000	90,000	77,000
Taxes	-17,722	-15,359	-16,112	-14,149
Net income for the period	68,288	59,174	62,052	54,484

Parent's statement of other comprehensive income (TSEK)

	Q4 2022	Q4 2021	Q1 - Q4 2022	Q1 - Q4 2021
Net income for the period	68,288	59,174	62,052	54,484
Other comprehensive income
Items that may be reclassified to the income statement:
Translation adjustments	0	0	0	0

Other comprehensive income for the period, net of tax	0	0	0	0
Other comprehensive income for the period	68,288	59,174	62,052	54,484

Other comprehensive income for the period, attributed to:
the shareholders of the Parent	68,288	59,174	62,052	54,484
	68,288	59,174	62,052	54,484

Parent's balance sheet in summary (TSEK)

	31 Dec 2022	31 Dec 2021
ASSETS
Shares in subsidiaries	353,332	353,332
Total non-current assets	353,332	353,332
Prepaid expenses and accrued revenue	481	683
Current receivables group companies	0	0
Other current receivables	38	56
Cash and cash equivalent	365	27
Total current assets	884	766
Total assets	354,216	354,098

EQUITY AND LIABILITIES
Restricted equity
Share capital	531	531
Non-restricted equity
Share premium reserve	5,065	5,065
Retained earnings	65,305	45,358
Net income for the period	62,053	54,485
Total equity	132,954	105,439

LIABILITIES
Non-current liabilities
Interest-bearing non-current liabilities	112,500	162,500
Total non-current liabilities	112,500	162,500

Current liabilities
Current interest-bearing liabilities	50,000	50,000
Accounts payable	25	226
Current tax liabilities	0	16,522
Current liabilities group companies	53,058	17,180
Other current liabilities	3,582	925
Accrued expenses and deferred income	2,097	1,305
Total current liabilities	108,762	86,158
Total equity and liabilities	354,216	354,098

Notes

1. Accounting principles

Lime prepares its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. New accounting principles that came into effect on 1 January 2022 have not had any significant impact on the Group's reporting as of 31 December 2022. The Group applies, apart from the below, the same accounting principles as in the Annual Report as at 31 December 2021.

Share Saving Programme

The Group has a share-related compensation plan where the company receives services from employees as payment for the Group's equity instruments. Information on these plans is available on page 9. The programme is classified as an equity-regulated programme. The fair value of the service that entitles employees to allocation of shares through the programme is reported as a personnel expense with a corresponding increase in equity.

The total amount to be expensed is based on the fair value of the shares that are allocated:

» including all market-related conditions
» excluding any impact from service conditions and non-market-related conditions for earnings (e.g. profitability, targets for sales growth and that the employee remains in the company's service for a specified period),
» including the impact of conditions that do not constitute earning conditions (e.g. requirement that employees should save or retain shares for a specified period).

The total cost is reported over the earning period; the period over which all the specified earning conditions must be met. At the end of each reporting period, the Group reviews its estimates of how many shares are expected to be earned based on the non-market-related earning conditions and service conditions. Any deviation from the original estimates to which the review

gives rise is reported in the income statement and corresponding adjustments are made in equity.

The social security expenses arising on the allocation of shares are regarded as an integral part of the allocation, and the expense is treated as share-related remuneration settled in cash.

Other principles and applications

The Group applies the same accounting principles and valuation methods as in the latest annual report. The Parent Company prepares its financial statements according to RFR 2, Accounting for Legal Entities, as well as the Swedish Annual Reports Act, and applies the same accounting principles and valuation methods as in the most recent annual report.

Lime applies ESMA's guidelines for alternative performance measures (measurements not defined by IFRS). For definitions, see pages 26-29.

Critical accounting estimates and judgements

Intangible assets that have an indefinite useful life or intangible assets that are not ready for use are not subject to depreciation but are tested annually for any impairment loss. The impairment test carried out at year-end showed that there was no impairment loss.

Capitalised development work by own employees

Operating expenses relating to the development of own software have been reduced by MSEK 8.3 (5.6) during the fourth quarter 2022. Operating expenses relating to developmet of own software have been reduced by MSEK 27.1 (21) during 2022.

2. Risks and uncertainties

The Lime Group is, through its operations, exposed to common business and financial risks. These risks are described in detail in the 2021 annual report.

The macroeconomic uncertainty resulting from the Russian invasion of Ukraine may affect our operation. The macroeconomic turmoil caused by Russia's invasion of Ukraine, resulting in higher energy prices, high inflation and an uncertain economic outlook, may affect our business. At present, we see no direct impact on Lime, but the long-term effects are difficult to judge, and it is not possible to rule out negative consequences.

3. Currency translations

Assets and liabilities in foreign exchange are translated at the closing rate on the date of the balance sheet. Transaction differences related to translation of operational assets and liabilities are recognised as Other revenue or Other expenses.

Transaction differences relating to other balance sheet items in foreign currency, such as cash and cash equivalent, are recognised under Financial net. Net sales and operating expenses are also impacted by transaction differences in foreign exchange. These transaction differences are recognised under respective revenue and expense item.

Net sales for the quarter consists of 70 % SEK, 18 % EUR, and 12 % other currencies. Operating expenses are made up of 67 % SEK, 23 % EUR, and 10 % other currencies.

4. Acquisitions

Userlike UG

On 26 April 2021, an agreement was signed on the acquisition of the shares of Userlike UG. The first part of the acquisition involves 90 % of the shares, and was completed on 30 April 2021.

At the end of the period, Lime's shareholding in Userlike UG amounts to 90 percent. From the date on which the acquisition was completed and control obtained, 30 April 2021, the acquired company is consolidated in its entirety in the Lime Group's profit and loss account and balance sheet. Furthermore, options have been issued which give Lime the right to acquire and the owners of Userlike UG the right to sell the remaining 10 percent of the shares no later than 30 September 2023.

The acquisition of Userlike UG has generated a group surplus value of around MSEK 313 before tax, allocated to software, customer relations, brands and goodwill. Goodwill is not considered to be tax deductible and is considered attributable to future sales growth. The estimated annual impairment of the acquired surplus value is around MSEK 21.

For more information on the acquisition of Userlike UG, please see the Annual Report as at 31 December 2021.

5. Transactions with related parties

No transactions with related parties have been conducted during the period.

6. Taxes

Tax expenses in the fourth quarter 2022 amounted to MSEK 4.4 (2.9). Tax expenses during 2022 amounted to MSEK 15.7 (12.6). The tax expense has been estimated based on the current tax situation in the Group and the earnings trends in the subsidiaries.

9-quarter summary

Sales per segment, TSEK	Q4 2022	Q3 2022	Q2 2022	Q1 2022	Q4 2021	Q3 2021*	Q2 2021*	Q1 2021	Q4 2020
Sweden	95,288	75,969	86,509	83,059	82,167	65,414	76,713	76,679	75,694
Rest of Europe	40,511	35,971	37,436	35,607	31,513	27,421	26,263	17,678	17,365
Income statement in summary, TSEK
Net sales	135,799	111,940	123,945	118,666	113,680	92,835	102,976	94,357	93,059
EBITDA	41,321	36,266	38,647	37,561	34,773	32,519	33,130	32,417	36,067
EBITA	34,088	28,912	31,736	30,367	29,162	25,498	26,536	26,275	30,624
EBIT*	25,690	20,295	23,215	21,815	19,554	15,875	18,676	21,926	26,275
Operating margin*	19%	18%	19%	18%	17%	17%	18%	23%	28%
Income before tax*	23,531	18,319	21,153	20,563	18,115	14,307	17,551	21,361	25,758

*) recalculated after finalizing the purchase price allocation of Userlike UG

Revenue from customer contracts (TSEK)

		Q4 2022		Q4 2021
Revenue by income stream, TSEK	Sweden	Rest of Europe	Total	Sweden	Rest of Europe	Total
Subscription revenue	43,476	26,678	70,155	37,228	21,356	58,584
Licence revenue	438	172	610	318	20	338
Support agreements	7,812	892	8,704	8,584	907	9,491
Expert Services	41,618	12,436	54,054	34,938	9,141	44,079
Other	1,944	333	2,277	1,099	89	1,188
Net sales	95,288	40,511	135,799	82,167	31,513	113,680

		Q1-Q4 2022	Q1-Q4 2021
Revenue by income stream, TSEK	Sweden	Rest of Europe	Total	Sweden	Rest of Europe	Total
Subscription revenue	163,899	98,953	262,851	139,278	67,200	206,478
Licence revenue	2,197	197	2,394	1,809	105	1,914
Support agreements	32,896	3,652	36,548	35,692	3,819	39,511
Expert Services	137,357	45,797	183,154	121,523	31,425	152,948
Other	4,477	926	5,403	2,671	326	2,997
Net sales	340,825	149,525	490,350	300,973	102,875	403,848

Sales per quarter

Sales, TSEK	Q4 2022	Q3 2022	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020
Expert Services	54,054	35,179	48,478	45,443	44,079	27,080	40,760	41,029	40,774
Software related revenue	79,468	75,659	74,103	72,561	68,413	65,150	61,565	52,772	51,421
Other	2,277	1,102	1,363	662	1,188	605	652	555	864
Total	135,799	111,940	123,945	118,666	113,680	92,835	102,976	94,356	93,059
Whereof recurring revenue	78,858	75,177	73,512	71,852	68,075	64,734	60,943	52,234	50,534
Whereof recurring revenue (%)	58%	67%	59%	61%	60%	70%	59%	55%	54%
Growth in net sales (%)	19%	21%	20%	26%	22%	23%	21%	11%	14%
Growth recurring revenue (%)	16%	16%	21%	38%	35%	34%	26%	11%	14%

*) Software related revenue refers to subscription revenue, licence revenue and support agreements

Key ratios

The Group's key ratios are presented below. Some of these are defined in accordance with IFRS. Alternative performance measures (APM) have been identified that are believed to enhance investors' and Group management's evaluation of the company's performance as well as relevant trends. The APMs presented in this report may differ from similarly titled measures used by other companies. The APMs should therefore be seen as a supplement to the key ratios defined by IFRS.