Interim Report January – March 2022

Lime Technologies AB (publ)

"Accelerated growth with solid profitability"

Profitability

26%

EBITA margin

The CEO's view Growth Recurring revenue

38%

Doubled net sales in our European markets Read more at page 3

Growth in net sales

ARR growth

The period in summary

The first quarter

» Net sales MSEK 118.7 (94.4), rendering a sales growth of 26% (11%)
» Recurring revenue MSEK 71.9 (52.2)
» The quarter was impacted by items affecting comparability amounting to MSEK 0.0 (0.0) (revaluation of warrant liability)
» EBITA MSEK 30.4 (26.3), rendering an EBITA margin of 26% (28%)
» Adjusted EBITA margin 26% (28%)
» Operating income, EBIT, MSEK 21.8 (21.9)
» Cash flow from current operations MSEK 29.6 (24.9)
» Net income MSEK 16.2 (16.8)
» Basic earnings per share amounted to SEK 1.22 (1.26) and diluted to SEK 1.22 (1.26)
» The remaining 35% of the shares of Lime Technologies Gävle AB were acquired

	2022 Q1	2021 Q4	2021 Q3*	2021 Q2*	2021 Q1	2020 Q4	2020 Q3	2020 Q2	2020 Q1
Net sales (MSEK)	118.7	113.7	92.8	103.0	94.4	93.1	75.6	85.0	85.0
Recurring revenue (MSEK)	71.9	68.1	64.7	60.9	52.2	50.5	48.5	48.5	46.9
EBITDA (MSEK)	37.6	34.8	32.5	33.1	32.4	36.1	29.8	27.0	28.7
EBITDA (%)	32%	31%	35%	32%	34%	39%	39%	32%	34%
EBITA (MSEK)	30.4	29.2	25.5	26.5	26.3	30.6	24.7	21.8	23.5
EBITA (%)	26%	26%	27%	26%	28%	33%	33%	26%	28%
Adjusted EBITA	30.4	29.2	25.5	27.6	26.2	29.3	24.7	21.8	23.5
Adjusted EBITA (%)	26%	26%	27%	27%	28%	31%	33%	26%	28%
Operating income, EBIT (MSEK)*)	21.8	19.6	15.9	18.7	21.9	26.3	20.4	17.5	19.1
Operating income, EBIT (%)*)	18%	17%	17%	18%	23%	28%	27%	21%	22%
Earnings per share, basic (SEK)	1.22	1.14	0.93	1.08	1.26	1.52	1.13	1.00	1.07
Earnings per share, diluted (SEK)	1.22	1.14	0.93	1.08	1.26	1.52	1.13	1.00	1.07
Cash flow from current operations (MSEK)	29.6	39.5	12.8	47.4	24.9	46.4	14.2	33.1	25.3

*) Recalculated after updating the purchase price allocation of Userlike UG.

CEO's comments

Accelerated growth with solid profitability

As we leave the first quarter behind us, we can point to a strong inflow of recurring revenue, leading to accelerated ARR growth of 38%. Total growth amounts to 26%. In January, we welcomed over 30 new colleagues, and we are continuing to recruit at a high tempo for all roles in all markets. Profitability remains strong, and our EBITA margin is 26%.

Successful customer relationships as a competitive tool

Our goal is to help companies become really sharp at customer care and customer management so that they can, in turn, provide their own customers with the best possible help. Accordingly, the fact that our customers, including Volvofinans Bank and Mälarenergi, are winning prizes for the best customer service in their sectors is totally in line with our ambition. With a technical platform which permits companies to grow and develop, we deliver constant value - not just initially, but over time. An excellent example of this is the work we have carried out together with Swedese Möbler AB and Energi Danmark A/S to modernise and improve their existing solutions.

Customer care as a competitive tool has always been important, but in a world in which services and products are becoming increasingly alike, at the same time as price pressure is hardening, truly professional customer management is a sure way of standing out. If we succeed in this, we not only make our customers successful but we also make the lives of the end customers much easier.

Our European markets are picking up speed

As we have already mentioned, the business climate has gradually improved, and this has helped us double net sales in the Rest of Europe. During the quarter, we continued to close many excellent deals, not least within our industry verticals. We are pleased to welcome a number of new customers, including the Danish company, Provinord A/S, Raxtar B.V. in the Netherlands, Gudbrandsdal Energi AS in Norway and the Swedish consulting firm, Semcon AB.

Just as we were beginning to celebrate countries reopening, the Russian invasion of Ukraine cast a heavy shadow across the world, creating new uncertainty in the markets. Lime is not directly impacted by the invasion since we do not have any direct sales to or any operation in either Ukraine or Russia. The ongoing war is affecting the market situation in the global economy, and it is difficult to determine what the consequences will be. The market situation has, however, improved with the easing of the pandemic, and at present the market for CRM solutions is good, and we do not believe that the events in Ukraine will have a negative effect on our ability to do business.

Product packaging - the path to faster deliveries and increased customer value

A clear trend in the CRM market is that customers are increasingly demanding industry-specific solutions that can be implemented rapidly. We are currently working on clearer packaging for solutions aimed at sales, marketing and case management, as well as for selected industry verticals. This will help our customers get up and running more quickly with just the right solution, and give us the opportunity to focus on the unique twist - customisation which generates that crucial extra value for the customer.

Another product innovation which will generate massive value for our customers is the launch of our webchat solution, Lime Chat. Thanks to the successful integration with our German acquisition, Userlike, the first customers are now ready to implement this new functionality which makes it easy for companies to communicate with their customers on all modern channels.

Investing in continued growth

For several years now, we have offered Lime Go – a fantastic product for sales organisations. Still, we are well aware that it has not always achieved its full potential. When we are not achieving the results we are looking for, we must be brave enough to change our approach. We have strong and successful machinery which has made our main product, Lime CRM, one of the go-to players in the market. Lime Go is a different type of product, and so it requires a different approach to achieve its full potential. For that reason, we decided to set up Lime Go as its own separate business area. We are already seeing positive signs that this is the right way forward, with improved new sales and an increased rate of recruitment to the development team.

With increasing business and our long-term establishment in Europe, high recruitment tempo and clearer offering, we are continuing to deliver long-term profitable growth in a market which is constantly facing new challenges.

/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 over 350 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-March 2022

Revenue

Net sales

Net sales in the first quarter 2022 amounted to MSEK 119 (94), an increase of 26% (11). The Group's net sales in the fourth quarter include MSEK 12 (0) from companies acquired in the last 12 months.

Net sales by category

61% (56) of net sales in the first quarter 2022 relate to software revenue.

Software revenue increased by 37% (11) during the first quarter 2022 compared to the first quarter 2021.

Net sales per segment

Net sales in the first quarter 2022 in Sweden amounted to MSEK 83 (77) and MSEK 36 (18) in the Rest of Europe. Net sales growth for the quarter was 9% (11) in Sweden and 100% (10) 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 first quarter 2022 was MSEK 292 (211). The 12-month recalculated recurring revenue increased by 38% (11) compared to the corresponding period last year.

Recurring revenue

Recurring revenue amounted to MSEK 72 (52) during the first quarter 2022, an increase of 38% (11) compared to the same period last year.

Operating income EBITDA

Operating income before depreciation/ amortisation during the first quarter – EBITDA – amounted to MSEK 38 (32) corresponding to an operating margin before depreciation/ amortisation, EBITDA, of 32% (34). Adjusted for items affecting comparability, EBITDA was MSEK 38 (32) in the quarter, corresponding to a margin of 32% (34).

EBITDA amounted to MSEK 27 (26) in Sweden and MSEK 10 (7) in the Rest of Europe during the first 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 first quarter 2021, we again have the opportunity to invest in our customers and staff.

EBITA

During the first quarter 2022 operating income, excluding amortisation on acquired surplus values – EBITA – amounted to MSEK 30 (26), corresponding to an EBITA margin of 26% (28). Adjusted for items affecting comparability, EBITA during the first quarter 2022 amounted to MSEK 30 (26), corresponding to an EBITA margin of 26% (28).

EBIT

Operating income during the first quarter 2022, EBIT, amounted to MSEK 22 (22), corresponding to an operating margin of 18% (23). Adjusted for items affecting comparability, EBIT during the first quarter 2022 amounted to MSEK 22 (22), corresponding to an EBIT margin of 18% (23).

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 first quarter of the year. The expenses include one-off items affecting comparison.

Cash flow & investments

During the first quarter 2022 cash flow from operating activities amounted to MSEK 29.6 (24.9).

During the fourth quarter 2021 investments in tangible non-current assets amounted to MSEK 0.0 (0.0), excluding right-to-use assets. Investments in intangible non-current assets amounted to MSEK 6.0 (4.8) and consist of capitalisation of development costs relating to new technology platforms.

In the first quarter 2022, amortisation of capitalised development costs amounted to MSEK 3.9 (3.2) and amortisation of right-to-use assets amounted to MSEK 3.1 (2.7).

Equity & liabilities

The Group's equity amounted to MSEK 161 (128).

The Group's interest-bearing liabilities amounted to MSEK 277.3 (92.2) at the end of the period, including leasing liabilities relating to right-to-use assets of MSEK 27.3 (25.4) and a liability of MSEK 44.4 (15.2) relating to the acquisition of Userlike UG, Lime Intenz AB and Lime Technologies Gävle AB. A total of MSEK 28.4 (11.6) of the Group's interestbearing liabilities have been repaid during the quarter. A bank overdraft facility of MSEK 3.9 was utilised during the period. Cash and cash equivalent amounted to MSEK 56.4 (73.2) at the end of the period. The Group's net debt amounted to MSEK 220.2 (18.4).

An agreement was signed during the period for a bank overdraft facility of MSEK 25.

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 367 (298) employees at the end of the reporting period. The average number of employees was 308 (254) 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 first quarter 2022, operating profit/loss in the Parent amounted to MSEK -0.8 (-0.6). Cash and cash equivalent amounted to MSEK 0.4 (1.3) and borrowings to MSEK 200.0 (49.5).

Annual General Meeting 2022

The annual general meeting will take place on 26 April at 5:30 pm.

Dividend proposal

The board of directors proposes a dividend of SEK 2.60 per share, corresponding to MSEK 35 and 59% of net income of the year.

Based on Lime's financial objectives, dividend is expected to correspond to at least 50% of net income.

Nomination committee

Based on guidelines resolved at the Annual General Meeting in June 2020, the following persons have been appointed to be part of Lime's Nomination Committee: Veronica Sandman, 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, Jan Dworsky, Swedbank Robur Fonder AB, representing 9.6% of the shares and Martin Henricsson, adjunct to the Nomination Committee, chairman of the board. The Nomination Committee will prepare proposals to the 2022 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 2023 Annual General Meeting.

Other events during or after the reporting period

The societal crisis which arose in consequence of the spread of Covid 19 affected the business cycle. How long these effects will last is difficult to predict.

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.

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.

The company 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 March 2022, the Company had 367 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

» The Annual General Meeting is being held on 26 April 2022
» Interim report 2, 2022, will be presented on July 15, 2022
» Interim report 3, 2022, will be presented on 20 October 2022

Lund, 26 April 2022

Nils Olsson CEO

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

	Q1 2022	Q1 2021	Q1 - Q4 2021
Net sales (MSEK)	118.7	94.4	403.8
Growth in net sales (%)	26%	11%	19%
Organic net sales growth (%)	14%	11%	11%
Recurring revenue (MSEK)	71.9	52.2	246.0
Annual recurring revenue (MSEK)	291.5	211.0	278.9
EBITA (MSEK)	30.4	26.3	107.5
EBITA (%)	26%	28%	27%
EBITDA (MSEK)	37.6	32.4	132.8
EBITDA (%)	32%	34%	33%
Operating income, EBIT (MSEK)	21.8	21.9	76.0
Operating income, EBIT (%)	18%	23%	19%
One-off items (MSEK)	0.0	0.0	-1.1
Depreciation right-to-use assets (MSEK)	-3.1	-2.7	-11.6
Adjusted EBITA (MSEK)	30.4	26.2	108.6
Adjusted EBITA (%)	26%	28%	27%
Adjusted EBITDA (MSEK)	37.6	32.4	133.9
Adjusted EBITDA (%)	32%	34%	33%
Adjusted EBIT (MSEK)	21.8	21.9	77.1
Adjusted EBIT (%)	18%	23%	19%
Earnings per share (SEK)	1.22	1.26	4.42
Earnings per share, diluted (SEK)	1.22	1.26	4.42
Net debt (MSEK)	220.2	18.4	238.6
Number of employees (average)	308	254	297
Net sales per employee (MSEK)	1.4	1.4	1.4
Cash flow from current operations per share (SEK)	2.2	1.9	9.4
Average number of outstanding shares (thousands)	13,283.5	13,283.5	13,283.5

For definition of key rations, see pages 24-27.

Consolidated income statement in summary (TSEK)

	Q1 2022	Q1 2021	Q1 - Q4 2021
Net sales	118,666	94,357	403,848
Other income	176	53	252
Gross income	118,842	94,410	404,100
Operating expenses
Compensation to employees	-65,743	-52,802	-222,206
Capitalised development work by own employees	6,031	4,830	20,964
Depreciation	-15,746	-10,490	-56,808
Other expenses	-21,569	-14,020	-70,018
Share in earnings of associated companies	0	0	0
Total operating expenses	-97,027	-72,483	-328,068
Operating income	21,815	21,926	76,031
Financial net	-1,252	-565	-4,697
Income after financial items	20,563	21,361	71,334
Taxes	-4,398	-4,580	-12,643
Net income for the period	16,165	16,781	58,691
Net income attributed to:
The shareholders of the Parent	16,165	16,781	58,691
	16,165	16,781	58,691
Other Information
Earnings per share, basic (SEK)	1.22	1.26	4.42
Earnings per share, diluted (SEK)	1.22	1.26	4.42

Consolidated statement of other comprehensive income (TSEK)

	Q1 2022	Q1 2021	Q1 - Q4 2021
Net income for the period	16,165	16,781	58,691
Other comprehensive income
Items that may be reclassified to the income statement:
Revaluation of put option liability	0	0	-2,307
Translation adjustments	9,843	106	1,049
Other comprehensive income for the period, net of tax	9,843	106	-1,258
Other comprehensive income for the period	26,008	16,888	57,433

Other comprehensive income for the period, attributed to:
the shareholders of the Parent	26,008	16,888	57,433
	26,008	16,888	57,433

Consolidated balance sheet in summary (TSEK)

	31 Mar 2022	31 Mar 2021	31 Dec 2021
ASSETS
Goodwill	229,210	69,763	222,076
Other non-tangible non-current assets	280,984	143,859	281,627
Right-to-use assets	27,312	25,447	25,828
Tangible non-current assets	2,650	2,310	2,791
Other financial non-current assets	742	707	700
Deferred tax asset	11	59	61
Total non-current assets	540,909	242,145	533,083
Trade receivables	63,469	53,267	64,929
Other current receivables	9,813	5,582	11,908
Cash and cash equivalent	56,373	73,216	55,167
Total current assets	129,655	132,065	132,004
Total assets	670,564	374,210	665,087

EQUITY AND LIABILITIES
Total equity	161,074	127,728	135,066

LIABILITIES
Non-current liabilities
Interest-bearing non-current liabilities	150,000	21,384	162,509
Non-current leasing liabilities	16,043	15,089	17,381
Other non-current liabilities	42,013	2,847	40,294
Deferred tax liabilities	75,110	27,743	74,979
Total non-current liabilities	283,166	67,063	295,163

Current liabilities
Current interest-bearing liabilities	52,617	40,948	64,189
Bank overdraft facility	3,868	0	0
Current leasing liabilities	12,736	12,006	10,079
Accounts payable	8,630	4,586	8,028
Other current liabilities	148,473	121,879	152,562
Total current liabilities	226,324	179,419	234,858
Total equity and liabilities	670,564	374,210	665,087

Consolidated statement of changes in equity (TSEK)

	Attributable to the Parent Company's shareholders
		Other contrib
	Share capital	uted 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				16,781	16,781
Other comprehensive income for the year			106		106
Total other comprehensive income	0	0	106	16,781	16,888
Transactions with owners
Dividend					0
Total transactions with owners	0	0	0	0	0
Closing balance 31 March 2021	531	58,100	-104	69,200	127,728

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				16,165	16,165
Other comprehensive income for the year			9,843		9,843
Total other comprehensive income	0	0	9,843	16,165	26,008
Transactions with owners
Dividend				0	0
Total transactions with owners	0	0	0	0	0
Closing balance 31 March 2022	531	58,100	8,375	94,067	161,074

Consolidated cash flow analysis (TSEK)

	Q1 2022	Q1 2021	Q1 - Q4 2021
Cash flow from current operations
Cash flow from operations	37,561	32,417	132,863
Changes in net working capital	9,682	-445	11,165
Interest paid	-1,252	-487	-4,915
Taxes paid	-16,413	-6,555	-14,470
Cash flow from current operations	29,578	24,930	124,643

Cash flow from investing activities
Investment in intangible non-current assets	-6,031	-4,830	-20,964
Investment in tangible non-current assets	0	-374	-1,288
Sales of tangible non-current assets	0	250	665
Acquisition of group companies	0	0	-202,190
Investment in financial non-current assets	-42	-1	-21
Interest received	0	0	0
Cash flow from investing activities	-6,073	-4,955	-223,797

Cash flow from financing activities
Dividend	0	0	-33,209
Proceeds from borrowings	3,868	77	254,804
Amortisation of borrowings	-28,448	-11,591	-132,571
Cash flow from financing activities	-24,580	-11,514	89,024

Net cash flow	-1,075	8,461	-10,130

Net change in cash flow
Cash and cash equivalent, beginning of the period	55,167	64,662	64,662
Exchange rate changes on cash	2,281	94	635
Cash and cash equivalent, end of period	56,373	73,216	55,167

Parent's income statement in summary (TSEK)

			Q1 - Q4
	Q1 2022	Q1 2021	2021
Net sales	0	0	0
Other income	1,471	1,464	5,281
Gross income	1,471	1,464	5,281

Operating expenses
Compensation to employees	-1,800	-1,744	-6,571
Other expenses	-423	-294	-3,023
Total operating expenses	-2,223	-2,038	-9,594

Operating income	-752	-574	-4,313

Financial income	0	169	169
Financial expenses	-1,892	-388	-4,223
Income after financial items	-2,644	-794	-8,367

Transfers to / from untaxed reserves	0	0	77,000
Taxes	542	164	-14,149
Net income for the period	-2,101	-630	54,484

Parent's statement of other comprehensive income (TSEK)

	Q1 2022	Q1 2021	Q1 - Q4 2021
Net income for the period	-2,101	-630	54,484
Other comprehensive income
Items that may be reclassified to the income statement:
Translation adjustments	0	0	0

Other comprehensive income for the period, net of tax	0	0	0
Other comprehensive income for the period	-2,101	-630	54,484

Other comprehensive income for the period, attributed to:
the shareholders of the Parent	-2,101	-630	54,484
	-2,101	-630	54,484

Parent's balance sheet in summary (TSEK)

	31 Mar 2022	31 Mar 2021	31 Dec 2021
ASSETS
Shares in subsidiaries	353,332	133,360	353,332
Total non-current assets	353,332	133,360	353,332
Prepaid expenses and accrued revenue	854	347	683
Current receivables group companies	0	16,100	0
Other current receivables	206	57	56
Cash and cash equivalent	399	1,294	27
Total current assets	1,459	17,798	766
Total assets	354,791	151,158	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	99,842	78,567	45,358
Net income for the period	-2,101	-630	54,485
Total equity	103,337	83,533	105,439
LIABILITIES
Non-current liabilities
Interest-bearing non-current liabilities	150,000	21,214	162,500
Total non-current liabilities	150,000	21,214	162,500

Current liabilities
Current interest-bearing liabilities	50,000	28,286	50,000
Accounts payable	257	312	226
Current tax liabilities	875	9,182	16,522
Current liabilities group companies	47,940	6,341	17,180
Other current liabilities	603	792	925
Accrued expenses and deferred income	1,779	1,498	1,305
Total current liabilities	101,454	46,411	86,158
Total equity and liabilities	354,791	151,158	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 March 2022. The Group applies, apart from the below, the same accounting principles as in the Annual Report as at 31 December 2021.

Put option issued to owners without a controlling influence

A put option issued to an owner without a controlling influence refers to an agreement that gives him the right to sell shares in the subsidiary at a fixed or fair value at a future date. The amount that may be paid if the option is exercised is reported as a financial liability at the present value of the exercise price of the option. Subsequent changes in the value of the liability are reported in equity as it relates to a transaction with the owner. If the option expires without being exercised, the debt is written off with a corresponding adjustment of equity.

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 24-27.

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 6.0 (4.8) during the first quarter 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.

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, 18% 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 financial year, 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. Acquired surplus values have been impaired by MSEK 5.3 during the quarter and by MSEK 14.0 during 2021.

During the quarter, Userlike UG contributed SEK 12 million to the Group's sales and SEK 4 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 first quarter 2022 amounted to MSEK 4.4 (4.6). 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	Q1 2022	Q4 2021	Q3 2021*	Q2 2021*	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Sweden	83,059	82,167	65,414	76,713	76,679	75,694	61,120	69,205	68,942
Rest of Europe	35,607	31,513	27,421	26,263	17,678	17,365	14,483	15,832	16,048
Income statement in summary, TSEK
Net sales	118,666	113,680	92,835	102,976	94,357	93,059	75,603	85,037	84,990
EBITDA	37,561	34,773	32,519	33,130	32,417	36,067	29,802	27,013	28,677
EBITA	30,367	29,162	25,498	26,536	26,275	30,624	24,704	21,810	23,496
EBIT*	21,815	19,554	15,875	18,676	21,926	26,275	20,355	17,462	19,108
Operating margin*	18%	17%	17%	18%	23%	28%	27%	21%	22%
Income before tax*	20,563	18,115	14,307	17,551	21,361	25,758	19,417	16,912	17,918

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

Revenue from customer contracts (TSEK)

		Q1 2022			Q1 2021
Revenue by income stream, TSEK	Sweden	Rest of Europe	Total	Sweden	Rest of Europe	Total
Subscription revenue	39,134	23,216	62,350	33,137	8,880	42,017
Licence revenue	686	23	709	478	60	538
Support agreements	8,561	941	9,502	9,232	989	10,221
Expert Services	34,161	11,282	45,443	33,303	7,726	41,029
Other	517	145	662	529	23	552
Net sales	83,059	35,607	118,666	76,679	17,678	94,357

Sales per quarter

Sales, TSEK	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Expert Services	45,443	44,079	27,080	40,760	41,029	40,774	26,213	34,839	36,625
Software related revenue	72,561	68,413	65,150	61,565	52,772	51,421	48,959	49,713	47,380
Other	662	1,188	605	652	555	864	431	485	985
Total	118,666	113,680	92,835	102,976	94,356	93,059	75,603	85,037	84,990
Whereof recurring revenue	71,852	68,075	64,734	60,943	52,234	50,534	48,468	48,520	46,868
Whereof recurring revenue (%)	61%	60%	70%	59%	55%	54%	64%	57%	55%
Growth in net sales (%)	26%	22%	23%	21%	11%	14%	11%	21%	22%
Growth recurring revenue (%)	38%	35%	34%	26%	11%	14%	14%	17%	20%

*) 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.