Interim Report January – June 2022

Lime Technologies AB (publ)

"While many other growth companies are forced to hit the break, our profitability and forward-looking culture allow us to keep our foot on the gas."

Profitability

The CEO's view Growth Organic growth

Profitable growth in a turbulent market Read more at page 3

Growth in net sales

26%

17%

EBITA margin Organic growth in net sales

The period in summary

The second quarter

» Net sales MSEK 123.9 (103.0), rendering a sales growth of 20% (21%)
» Recurring revenue MSEK 73.5 (60.9)
» The quarter was impacted by items affecting comparability amounting to MSEK 0.0 (-1.1) (attributable to acquisitions)
» EBITA MSEK 31.7 (26.5), rendering an EBITA margin of 26% (26%)
» Adjusted EBITA margin 26% (27%)
» Operating income, EBIT, MSEK 23.2 (18.7)
» Cash flow from current operations MSEK 22.8 (47.4)
» Net income MSEK 17.9 (14.4)
» Basic earnings per share amounted to SEK 1.35 (1.08) and diluted to SEK 1.34 (1.08)
» An additional 14% of the shares in Lime Intenz AB were acquired

The first six months

» Net sales MSEK 242.6 (197.3), rendering a sales growth of 23% (16%)
» Recurring revenue MSEK 145.4 (113.2)
» The first six months were impacted by items affecting comparability amounting to MSEK 0.0 (-1.1) (attributable to acquisitions)
» EBITA MSEK 62.1 (52.8), rendering an EBITA margin of 26% (27%)
» Adjusted EBITA margin 26% (27%)
» Operating income, EBIT, MSEK 45.0 (40.6)
» Cash flow from current operations MSEK 52.3 (72.3)
» Net income MSEK 34.0 (31.1)
» Basic earnings per share amounted to SEK 2.56 (2.34) and diluted to SEK 2.55 (2.34)
» The remaining 35% of the shares of Lime Technologies Gävle AB acquired, additional 14% of the shares in Lime Intenz AB acquired

	2022 Q2	2022 Q1	2021 Q4	2021 Q3*	2021 Q2*	2021 Q1	2020 Q4	2020 Q3	2020 Q2
Net sales (MSEK)	123,9	118.7	113.7	92.8	103.0	94.4	93.1	75.6	85.0
Recurring revenue (MSEK)	73.5	71.9	68.1	64.7	60.9	52.2	50.5	48.5	48.5
EBITDA (MSEK)	38,6	37.6	34.8	32.5	33.1	32.4	36.1	29.8	27.0
EBITDA (%)	31%	32%	31%	35%	32%	34%	39%	39%	32%
EBITA (MSEK)	31,7	30.4	29.2	25.5	26.5	26.3	30.6	24.7	21.8
EBITA (%)	26%	26%	26%	27%	26%	28%	33%	33%	26%
Adjusted EBITA	31,7	30.4	29.2	25.5	27.6	26.2	29.3	24.7	21.8
Adjusted EBITA (%)	26%	26%	26%	27%	27%	28%	31%	33%	26%
Operating income, EBIT (MSEK)*)	23,2	21.8	19.6	15.9	18.7	21.9	26.3	20.4	17.5
Operating income, EBIT (%)*)	19%	18%	17%	17%	18%	23%	28%	27%	21%
Earnings per share, basic (SEK)	1,35	1.22	1.14	0.93	1.08	1.26	1.52	1.13	1.00
Earnings per share, diluted (SEK)	1,34	1.22	1.14	0.93	1.08	1.26	1.52	1.13	1.00
Cash flow from current operations (MSEK)	22,8	29.6	39.5	12.8	47.4	24.9	46.4	14.2	33.1

CEO's comments

Profitable growth in a turbulent market

We leave the second quarter with continued strong growth of 20%, of which 17% is organic, and good profitability amounting to 26%. During the quarter we are continuing to recruit at a high tempo and can therefore welcome more than sixty new employees in August – a new record for Lime. Our goal has always been long-term profitable growth. In a turbulent market in which many companies hit the break, this gives us opportunities to keep stepping on the gas and build an even stronger Lime.

Continuing at a fast pace, even when times are tough – history shows that we can

When looking back at the financial footprint we have left as a company, we can proudly declare that we have delivered strong growth and good profitability for more than twenty years. This also applies during market crises such as the IT crash in 2000, the financial crisis in 2008 and most recently the pandemic of 2020. We are once again facing challenging times with the war in Ukraine, higher interest rates and high inflation, which creates general market unease and a more uncertain faith in the future for many companies. In such times, we know that smart business management and professional customer care are more important than ever. With our product offerings and customer-oriented employees, we help other companies to create, retain and deepen the collaboration with their customers. By doing so, we not only make our customers more successful but we also make the lives of the end customers much easier.

With good cost control, a high proportion of recurring income and low customer concentration in several different verticals, we remain strong. While many other growth companies are forced to slow down, our profitability and forward-looking culture allow us to keep our foot on the gas.

Stable business position with strong organic growth

During the second quarter we, like many other companies, have noticed longer sales processes, but despite this, we continue to close out many nice deals in all markets and within our verticals. We welcome the German customer Thalhofer Holzzentren GmbH & Co in wholesale, The Norwegian Olympic and Paralympic Committee and Confederation of Sports (NIF), the property company Corem Property Group AB and Karlskoga Energi & Miljö AB in utility, to name but a few. We have also strengthened the organisation within our consulting business, Expert Services, which is one of the contributing reasons for strong organic growth, which amounted to 17% during the quarter.

International expansion and record number of recruitments for future growth

As I mentioned before, the core of our strategy is to invest and grow, even when times are tough. During the pandemic, we expanded into the Netherlands and Germany. We are now also extending our product portfolio internationally by launching Lime Go in the Danish and Norwegian markets. This is part of our focus to scale existing markets.

We are also continuing to keep up the rapid pace on the recruitment side and in August we will be starting our largest onboarding programme ever with more than sixty new employees. Our goal has been to scale our development department and even though we are not really where we want to be, we see an improved situation during the second quarter with many new recruitments. As a software company, we are looking forward to the opportunity to be able to increase the rate of our product development.

How the market will behave after the summer is still uncertain, but regardless of market conditions, our goal is clear: We will still drive Lime towards long-term profitable growth and create an even better company.

I would like to take the opportunity to wish all our customers, colleagues and shareholders a really nice summer!

/Nils Olsson, Managing Director and CEO, Lime Technologies

When looking back at the financial footprint we have left as a company, we can declare that we have continued to deliver both increased growth and profitability, even during tougher market conditions, such as during the IT crash of 2000, the financial crisis in 2008 and the pandemic in 2020.

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 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-June 2022

Revenue

Net sales

Net sales in the second quarter 2022 amounted to MSEK 124 (103), a growth of 20% (21).

Net sales during the first 6 months 2022 amounted to MSEK 243 (197), rendering an increase of 23% (16).

Net sales by category

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

60% (58) of net sales in the first six months 2022 relate to software revenue. Software revenue increased by 20% (24) during the second quarter 2022 compared to the second quarter 2022.

Net sales per segment

Net sales in the second quarter 2022 in Sweden amounted to MSEK 87 (77) and MSEK 37 (26) in the Rest of Europe. Net sales growth for the quarter was 13% (11) in Sweden and 43% (67) in the rest of the European countries.

Net sales during the first six months in 2022 in Sweden amounted to MSEK 170 (153) and MSEK 73 (44) 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 second quarter 2022 was MSEK 296 (259). The 12-month recalculated recurring revenue increased by 14% (33) compared to the corresponding period last year.

Recurring revenue

Recurring revenue amounted to MSEK 74 (61) during the second quarter 2022, an increase of 21% (26) compared to the same period last year. Recurring revenue amounted to MSEK 145 (113) during the first six months in 2022, an increase of 28% (19) compared to the corresponding period last year.

Operating income EBITDA

Operating income before depreciation/ amortisation during the second quarter – EBITDA – amounted to MSEK 39 (33) corresponding to an operating margin before depreciation/ amortisation, EBITDA, of 31% (32). Adjusted for items affecting comparability, EBITDA was MSEK 39 (34) in the quarter, corresponding to a margin of 31% (33).

EBITDA amounted to MSEK 26 (21) in Sweden and MSEK 12 (12) in the Rest of Europe during the second quarter 2022.

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

The first six months 2022 operating income bfore depreciation - EBITDA - moaunted to MSEK 76 (66), corresponding to an EBITDA margin of 31% (33). Adjusted EBITDA was MSEK 76 (67) during the same period and corresponding margin was 31% (34).

EBITA

During the second quarter 2022 operating income, excluding amortisation on acquired surplus values – EBITA – amounted to MSEK 32 (27), corresponding to an EBITA margin of 26% (26). Adjusted for items affecting comparability, EBITA during the second quarter 2022 amounted to MSEK 32 (28), corresponding to an EBITA margin of 26% (27).

Adjusted EBITA during the first six months 2022 amounted to MSEK 62 (53), corresponding to an EBITA margin of 26% (27).

EBIT

Operating income during the second quarter 2022, EBIT, amounted to MSEK 23 (19), corresponding to an operating margin of 19% (18). Adjusted for items affecting comparability, EBIT during the second quarter 2022 amounted to MSEK 23 (20), corresponding to an EBIT margin of 19% (19).

Opreting income during the first 6 months 2022 - EBIT - amounted to MSEK 45 (41), corresponding to an EBIT margin of 19% (21).

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% (76) of the rolling total costs at the end of the second quarter of the year. The expenses include one-off items affecting comparison.

Cash flow & investments

During the second quarter 2022 cash flow from operating activities amounted to MSEK 22.8 (47.4).

During the first six months 2022 cash flow from current operations amounted to MSEK 52.3 (72.3).

During the second quarter 2022 investments in tangible non-current assets amounted to MSEK 0.1 (0.9), excluding right-to-use assets. Investments in intangible non-current assets amounted to MSEK 6.2 (5.2) and consist of capitalisation of development costs relating to new technology platforms.

Druing the first six months 2022 investments in tangible non-current assets amounted to MSEK 0.1 (1.2), excluding right-to-use assest. Investments in tangible non-current assets amounted to MSEK 12.3 (10.0) during the same period.

In the second quarter 2022, amortisation of capitalised development costs amounted to MSEK 3.8 (3.2) and amortisation of right-to-use assets amounted to MSEK 2.8 (3.0).

Amortization of capitalized development costs amounted to MSEK 7.7 (6.4) during the first six months 2022 and amortization of right-to-use assets amounted to MSEK 5.8 (5.7).

Equity & liabilities

The Group's equity amounted to MSEK 141 (115).

Ath 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 265.4 (335.3) at the end of the period, including leasing liabilities relating to right-to-use assets of MSEK 25.4 (23.4) and a liability of MSEK 39.0 (72.3) relating to the acquisition of Userlike UG and Lime Intenz AB. A total of MSEK 17.3 (66.0) of the Group's interest-bearing liabilities have been repaid during the quarter. A bank overdraft facility of MSEK 9.3 was utilised by the end of the period. Cash and cash equivalent amounted to MSEK 26.1 (68.6) at the end of the period. The Group's net debt amounted to MSEK 238.6 (266.0).

An agreement was signed during the first quarter for a bank overdraft facility of MSEK 25 during 2022.

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 to three shares 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 348 (332) employees at the end of the reporting period. The average number of employees was 322 (263) 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 second quarter 2022, operating profit/ loss in the Parent amounted to MSEK -0.3 (-1.8). Operating income during the first six months 2022 amounted to -1.1 (-2.3). Cash and cash equivalent amounted to MSEK 0.3 (2.0) and borrowings to MSEK 187.5 (237.5).

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.

Other events during or after the reporting period

The macroeconomic uncertainty resulting from the Russian invasion of Ukraine and the Covid 19 affect on the business cycle may affect our operation. 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.

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.

After the close of the reporting period, Lime has 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 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 June 2022, the Company had 348 employees at nine offices in Sweden, Norway, Denmark, Finland, the Netherlands 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

» Interim report 3, 2022, will be presented on 20 October 2022
» Year-end report 2022, presented in February 2023

Declaration

The board of directors and the CEO declares that the interim report provides a fair view of the parent comapny's and the Group's operations, financial position and results of operations and describes material risks and uncertainties facing the parent company and the companies included in the Group.

Lund, 15 July 2022

Nils Olsson CEO	Erik Syrén
Martin Henricson Chaiman of the board	Lars Stugemo
Malin Ruijsenaars	Marlene Forsell

Additional information can be obtained from:

CEO Nils Olsson, phone +46 8 562 77 603 or CFO Magnus Hansson, phone +46 46 270 48 85

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

	Q2 2022	Q2 2021*	Q1 - Q2 2022	Q1 - Q2 2021*
Net sales (MSEK)	123.9	103.0	242.6	197.3
Growth in net sales (%)	20%	21%	23%	16%
Organic net sales growth (%)	17%	12%	15%	12%
Recurring revenue (MSEK)	73.5	60.9	145.4	113.2
Annual recurring revenue (MSEK)	296.0	259.1	296.0	259.1
EBITA (MSEK)	31.7	26.5	62.1	52.8
EBITA (%)	26%	26%	26%	27%
EBITDA (MSEK)	38.6	33.1	76.2	65.5
EBITDA (%)	31%	32%	31%	33%
Operating income. EBIT (MSEK)	23.2	18.7	45.0	40.6
Operating income. EBIT (%)	19%	18%	19%	21%
One-off items (MSEK)	0.0	-1.1	0.0	-1.1
Depreciation right-to-use assets (MSEK)	-2.8	-3.0	-5.8	-5.7
Adjusted EBITA (MSEK)	31.7	27.6	62.1	53.9
Adjusted EBITA (%)	26%	27%	26%	27%
Adjusted EBITDA (MSEK)	38.6	34.2	76.2	66.6
Adjusted EBITDA (%)	31%	33%	31%	34%
Adjusted EBIT (MSEK)	23.2	19.8	45.0	41.7
Adjusted EBIT (%)	19%	19%	19%	21%
Earnings per share (SEK)	1.35	1.08	2.56	2.34
Earnings per share. diluted (SEK)	1.34	1.08	2.55	2.34
Net debt (MSEK)	238.6	266.0	238.6	266.0
Number of employees (average)	322	263	322	263
Net sales per employee (MSEK)	1.4	1.4	1.4	1.4
Cash flow from current operations per share (SEK)	1.7	3.6	3.9	5.4
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)

	Q2 2022	Q2 2021*	Q1 - Q2 2022	Q1 - Q2 2021*
Net sales	123,945	102,976	242,611	197,333
Other income	211	107	387	160
Gross income	124,156	103,083	242,998	197,493
Operating expenses
Compensation to employees	-67,176	-58,625	-132,919	-111,427
Capitalised development work by own employees	6,238	5,216	12,269	10,046
Depreciation	-15,432	-14,455	-31,178	-24,945
Other expenses	-24,571	-16,545	-46,140	-30,565
Share in earnings of associated companies	0	0	0	0
Total operating expenses	-100,941	-84,408	-197,968	-156,891
Operating income	23,215	18,676	45,030	40,602
Financial net	-2,062	-1,125	-3,314	-1,690
Income after financial items	21,153	17,551	41,716	38,912
Taxes	-3,275	-3,199	-7,673	-7,779
Net income for the period	17,878	14,352	34,043	31,133
Net income attributed to:
The shareholders of the Parent	17,878	14,352	34,043	31,133
	17,878	14,352	34,043	31,133
Other Information
Earnings per share, basic (SEK)	1.35	1.08	2.56	2.34
Earnings per share, diluted (SEK)	1.34	1.08	2.55	2.34

Consolidated statement of other comprehensive income (TSEK)

	Q2 2022	Q2 2021*	Q1 - Q2 2022	Q1 - Q2 2021*
Net income for the period	17,878	14,352	34,043	31,133
Other comprehensive income
Items that may be reclassified to the income statement:
Translation adjustments	-3,185	6,039	6,658	6,145
Other comprehensive income for the period, net of tax	-3,185	6,039	6,658	6,145
Other comprehensive income for the period	14,693	20,391	40,701	37,279

Other comprehensive income for the period, attributed to:
the shareholders of the Parent	14,693	20,391	40,701	37,279
	14,693	20,391	40,701	37,279

Consolidated balance sheet in summary (TSEK)

	30 Jun 2022	30 Jun 2021*	31 Dec 2021
ASSETS
Goodwill	227,395	223,260	222,076
Other non-tangible non-current assets	273,092	296,037	281,627
Right-to-use assets	25,406	23,406	25,828
Tangible non-current assets	2,676	2,963	2,791
Other financial non-current assets	731	713	700
Deferred tax asset	11	60	61
Total non-current assets	529,311	546,440	533,083
Trade receivables	67,536	51,971	64,929
Other current receivables	8,689	7,801	11,908
Cash and cash equivalent	26,054	68,595	55,167
Total current assets	102,279	128,367	132,004
Total assets	631,590	674,807	665,087

EQUITY AND LIABILITIES
Total equity	141,475	114,910	135,066

LIABILITIES
Non-current liabilities
Interest-bearing non-current liabilities	137,500	187,627	162,509
Non-current leasing liabilities	14,047	13,492	17,381
Other non-current liabilities	39,045	39,688	40,294
Deferred tax liabilities	72,845	77,766	74,979
Total non-current liabilities	263,437	318,574	295,163

Current liabilities
Current interest-bearing liabilities	52,849	82,825	64,189
Bank overdraft facility	9,300	0	0
Current leasing liabilities	12,660	11,669	10,079
Accounts payable	7,941	5,946	8,028
Other current liabilities	143,928	140,883	152,562
Total current liabilities	226,678	241,323	234,858
Total equity and liabilities	631,590	674,807	665,087

Consolidated statement of changes in equity (TSEK)

	Attributable to the Parent Company's shareholders
		Other
	Share capital	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				31,134	31,134
Other comprehensive income for the year			6,145		6,145
Total other comprehensive income	0	0	6,145	31,134	37,279

Transactions with owners
Dividend				-33,209	-33,209
Total transactions with owners	0	0	0	-33,209	-33,209
Closing balance 30 June 2021	531	58,100	5,935	50,344	114,910
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				34,043	34,043
Share Saving Program			245		245
Other comprehensive income for the year			6,658		6,658
Total other comprehensive income	0	0	6,903	34,043	40,946
Transactions with owners
Dividend				-34,537	-34,537
Total transactions with owners	0	0	0	-34 537	-34 537
Closing balance 30 June 2022	531	58,100	5,435	77,409	141,475

Consolidated cash flow analysis (TSEK)

	Q2 2022	Q2 2021	Q1 - Q2 2022	Q1 - Q2 2021
Cash flow from current operations
Cash flow from operations	36,633	33,130	74,194	65,547
Changes in net working capital	-6,373	19,205	3,309	18,760
Interest paid	-829	-1,142	-2,081	-1,629
Taxes paid	-6,675	-3,783	-23,088	-10,338
Cash flow from current operations	22,756	47,411	52,334	72,340

Cash flow from investing activities
Investment in intangible non-current assets	-6,238	-5,216	-12,269	-10,046
Investment in tangible non-current assets	-100	-854	-100	-1,228
Sales of tangible non-current assets	0	415	0	665
Acquisition of group companies	0	-197,496	0	-197,496
Investment in financial non-current assets	-12	-7	-54	-8
Interest received	0	0	0	0
Cash flow from investing activities	-6,350	-203,158	-12,423	-208,113

Cash flow from financing activities
Dividend	-34,537	-33,209	-34,537	-33,209
Proceeds from borrowings	5,432	250,071	9,300	250,148
Amortisation of borrowings	-17,306	-65,950	-45,754	-77,541
Cash flow from financing activities	-46,411	150,912	-70,991	139,398

Net cash flow	-30,005	-4,835	-31,080	3,626

Net change in cash flow
Cash and cash equivalent, beginning of the period	56,373	73,216	55,167	64,662
Exchange rate changes on cash	-313	214	1,967	308
Cash and cash equivalent, end of period	26,054	68,595	26,054	68,595

Parent's income statement in summary (TSEK)

	Q2 2022	Q2 2021	Q1 - Q2 2022	Q1 - Q2 2021
Net sales	0	0	0	0
Other income	2,061	1,534	3,532	2,998
Gross income	2,061	1,534	3,532	2,998

Operating expenses
Compensation to employees	-1,830	-1,854	-3,630	-3,598
Other expenses	-557	-1,443	-980	-1,737
Total operating expenses	-2,387	-3,297	-4,610	-5,335

Operating income	-326	-1,763	-1,078	-2,337
Financial income	0	4	0	172
Financial expenses	-1,498	-877	-3,390	-1,265
Income after financial items	-1,824	-2,636	-4,468	-3,430

Transfers to / from untaxed reserves	0	0	0	0
Taxes	372	544	914	707
Net income for the period	-1,453	-2,093	-3,554	-2,723

Parent's statement of other comprehensive income (TSEK)

	Q2 2022	Q2 2021	Q1 - Q2 2022	Q1 - Q2 2021
Net income for the period	-1,453	-2,093	-3,554	-2,723
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	-1,453	-2,093	-3,554	-2,723

Other comprehensive income for the period, attributed to:
the shareholders of the Parent	-1,453	-2,093	-3,554	-2,723
	-1,453	-2,093	-3,554	-2,723

Parent's balance sheet in summary (TSEK)

	30 Jun 2022	30 Jun 2021	31 Dec 2021
ASSETS
Shares in subsidiaries	353,332	328,745	353,332
Total non-current assets	353,332	328,745	353,332
Prepaid expenses and accrued revenue	789	884	683
Current receivables group companies	0	0	0
Other current receivables	4,325	967	56
Cash and cash equivalent	323	1,957	27
Total current assets	5,437	3,808	766
Total assets	358,769	332,553	354,098

EQUITY AND LIABILITIES
Restricted equity
Share capital	531	531	531
Non-restricted equity
Share premium reserve	5,065	5,065	5,065
Retained earnings	65,305	45,358	45,358
Net income for the period	-3,554	-2,723	54,485
Total equity	67,347	48,231	105,439

LIABILITIES
Non-current liabilities
Interest-bearing non-current liabilities	137,500	187,500	162,500
Total non-current liabilities	137,500	187,500	162,500
Current liabilities
Current interest-bearing liabilities	50,000	50,000	50,000
Accounts payable	175	129	226
Current tax liabilities	0	6,260	16,522
Current liabilities group companies	100,873	38,178	17,180
Other current liabilities	768	634	925
Accrued expenses and deferred income	2,106	1,621	1,305
Total current liabilities	153,922	96,822	86,158
Total equity and liabilities	358,769	332,553	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 30 June 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.

Summary of significant accounting principles 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 6.2 (5.2) during the second quarter 2022.

Operatring expenses relating to developmet of own software have been reduced by MSEK 12.3 (10.0) during the first six months 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 Covid-19 pandemic decreased the economic activities during 2020 and 2021. We estimate that new sales were negatively affected. We have, however, noted increased market activities since the restrictions has been reduced or removed.

The macroeconomic uncertainty resulting from the Russian invasion of Ukraine may affect our operation. 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, 17% EUR, and 13% other currencies. Operating expenses are made up of 72% SEK, 19% EUR, and 9% 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.

During the quarter, Userlike UG contributed SEK 12 million to the Group's sales and SEK 3 million to operating profit before amortization of acquired surplus values. During the first 6 months 2022 Userlike contributed with SEK 23 million and SEK 7 million to operating profit before amortization of acquired surplus values.

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

5. Transactions with related parties

Any transactions with related parties have been conducted on market terms.

6. Taxes

Tax expenses in the second quarter 2022 amounted to MSEK 3.3 (3.2). Tax expenses during the first six months 2022 amounted to MSEK 7.7 (7.8). 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	Q2 2022	Q1 2022	Q4 2021	Q3 2021*	Q2 2021*	Q1 2021	Q4 2020	Q3 2020	Q2 2020
Sweden	86,509	83,059	82,167	65,414	76,713	76,679	75,694	61,120	69,205
Rest of Europe	37,436	35,607	31,513	27,421	26,263	17,678	17,365	14,483	15,832
Income statement in summary, TSEK
Net sales	123,945	118,666	113,680	92,835	102,976	94,357	93,059	75,603	85,037
EBITDA	38,647	37,561	34,773	32,519	33,130	32,417	36,067	29,802	27,013
EBITA	31,736	30,367	29,162	25,498	26,536	26,275	30,624	24,704	21,810
EBIT*	23,215	21,815	19,554	15,875	18,676	21,926	26,275	20,355	17,462
Operating margin*	19%	18%	17%	17%	18%	23%	28%	27%	21%
Income before tax*	21,153	20,563	18,115	14,307	17,551	21,361	25,758	19,417	16,912

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

Revenue from customer contracts (TSEK)

		Q2 2022			Q2 2021
Revenue by income stream, TSEK	Sweden	Rest of Europe	Total	Sweden	Rest of Europe	Total
Subscription revenue	40,164	23,942	64,107	34,122	16,715	50,837
Licence revenue	590	2	592	622	0	622
Support agreements	8,501	904	9,405	9,106	999	10,105
Expert Services	36,117	12,361	48,478	32,300	8,460	40,760
Other	1,137	226	1,363	563	89	652
Net sales	86,509	37,436	123,945	76,713	26,263	102,976

	Q1-Q2 2022			Q1-Q2 2022
Revenue by income stream, TSEK	Sweden	Rest of Europe	Total	Sweden	Rest of Europe	Total
Subscription revenue	79,298	47,158	126,457	67,259	25,595	92,854
Licence revenue	1,276	25	1,301	1,100	60	1,160
Support agreements	17,062	1,845	18,907	18,338	1,988	20,326
Expert Services	70,278	23,643	93,921	65,603	16,186	81,789
Other	1,654	371	2,025	1,092	112	1,204
Net sales	169,568	73,043	242,611	153,392	43,941	197,333

Sales per quarter

Sales, TSEK	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020	Q2 2020
Expert Services	48,478	45,443	44,079	27,080	40,760	41,029	40,774	26,213	34,839
Software related revenue	74,103	72,561	68,413	65,150	61,565	52,772	51,421	48,959	49,713
Other	1,363	662	1,188	605	652	555	864	431	485
Total	123,945	118,666	113,680	92,835	102,976	94,356	93,059	75,603	85,037
Whereof recurring revenue	73,512	71,852	68,075	64,734	60,943	52,234	50,534	48,468	48,520
Whereof recurring revenue (%)	59%	61%	60%	70%	59%	55%	54%	64%	57%
Growth in net sales (%)	20%	26%	22%	23%	21%	11%	14%	11%	21%
Growth recurring revenue (%)	21%	38%	35%	34%	26%	11%	14%	14%	17%

*) 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.