Lime Technologies

Quarterly Report • Oct 21, 2021

Interim report January – September 2021

Lime Technologies AB (publ)

The period in summary

Third quarter

• » Net sales MSEK 92.8 (75.6), rendering a sales growth of 23% (11%)
• » Recurring revenue MSEK 64.7 (48.5)
• » The quarter was impacted by one-off items affecting comparison, amounting to MSEK 0.0 (0.0). Comparison attributable to acquisitions
• » EBITA MSEK 25.5 (24.7), rendering an EBITA margin of 27% (33%)
• » Adjusted EBITA margin 27% (33%)
• » Operating income, EBIT, MSEK 15.4 (20.4)
• » Cash flow from current operations MSEK 12.8 (14.2)
• » Net income MSEK 11.1 (15.0)
• » Earnings per share SEK 0.83 (1.13) and diluted SEK 0.83 (1.13)

The first nine months

• » Net sales MSEK 290.2 (245.6), rendering a sales growth of 18% (18%)
• » Recurring revenue MSEK 177.9 (143.9)
• » The first nine months were impacted by one-off items affecting comparison, amounting to MSEK -1.1 (0.0). Comparison attributable to acquisitions
• » EBITA MSEK 78.3 (70.0), rendering an EBITA margin of 27% (29%)
• » Adjusted EBITA margin 27% (29%)
• » Operating income, EBIT, MSEK 55.5 (56.9)
• » Cash flow from current operations MSEK 85.2 (72.7)
• » Net income MSEK 41.3 (42.6)
• » Earnings per share SEK 3.11 (3.20) and diluted SEK 3.11 (3.20)
• » The acquisition of 90 % of the shares in the German company, Userlike UG, who are experts in UM – Unified Messaging.
• » Lime has raised a new bank loan of SEK 250 million and repaid a bank loan of SEK 50 million

ARR 34% growth

» Decided to establish Lime in Germany

	2021 Q3	2021 Q2	2021 Q1	2020 Q4	2020 Q3	2020 Q2	2020 Q1	2019 Q4	2019 Q3
Net sales (MSEK)	92.8	103.0	94.4	93.1	75.6	85.0	85.0	81.8	68.0
Recurring revenue (MSEK)	64.7	60.9	52.2	50.5	48.5	48.5	46.9	44.3	42.5
EBITDA (MSEK)	32.5	33.1	32.4	36.1	29.8	27.0	28.7	24.4	23.7
EBITDA (%)	35%	32%	34%	39%	39%	32%	34%	30%	35%
EBITA (MSEK)	25.5	26.5	26.3	30.6	24.7	21.8	23.5	19.9	19.2
EBITA (%)	27%	26%	28%	33%	33%	26%	28%	24%	28%
Adjusted EBITA	25.5	27.6	26.2	29.3	24.7	21.8	23.5	19.9	19.3
Adjusted EBITA (%)	27%	27%	28%	31%	33%	26%	28%	24%	28%
Operating income, EBIT (MSEK)	15.4	18.2	21.9	26.3	20.4	17.5	19.1	16.3	15.6
Operating income, EBIT (%)	17%	18%	23%	28%	27%	21%	22%	20%	23%
Earnings per share, basic (SEK)	0.83	1.01	1.26	1.52	1.13	1.00	1.07	0.91	0.91
Earnings per share, diluted (SEK)	0.83	1.01	1.26	1.52	1.13	1.00	1.07	0.91	0.91
Cash flow from current operations (MSEK)	12.8	47.4	24.9	46.4	14.2	33.1	25.3	29.0	14.6

CEO's comments

The reopening is paving the way for high growth and a stronger market position

We have seen a continued high demand for our services as we leave the third quarter behind us. We exceeded our targets for both growth and profitability, and we can see positive developments in our markets outside Sweden. A gradual return to the offices, an all-time high in the number of onboarded employees and the opportunity to meet our customers face-to-face again, have given us the energy we need to continue to build the international growth company which Lime is and intends to be.

An ideal product portfolio for the current situation

It is very clear across many industries that the pandemic has helped accelerate the process of general digitalisation, not least for Lime's focus verticals. There is an increasing transition to a hybrid arena in which employers, employees and customers expect flexibility and accessibility on all channels. Accordingly, over the past eighteen months, we have seen an increased demand in areas such as communication and automation – a trend which appears to be increasing rather than decreasing as restrictions are eased. With our offering in both web chat and Marketing Automation, we are ideally placed to help companies work smart with digital solutions, thereby generating substantial value both for their business and their customers.

When it comes to our most recent acquisition, Userlike, we are already seeing positive effects from our joint offering, which has been well received during meetings with our German customers. There is a demand in all our markets for a strong ticket handling solution with integrated chat and chatbot functionality and our ambition is to release this during the fourth quarter.

The reopening of the markets is generating new energy and increased competitive advantages During the third quarter, many of our markets reopened, and we are pleased to be able to meet clients and colleagues once again. Nothing generates energy like a face-to-face meeting!

What distinguishes Lime from the global players is our local presence and the opportunity that this gives us to work directly with clients throughout the process, without intermediaries - a market position which is strengthened by face-to-face meetings. We have already experienced how our continued focus on this makes us really stand out at a time when digital meetings are becoming the dominant form of customer interaction. Even though digital interaction is a valuable complement for us, we are absolutely convinced that the opportunity to meet our customers on their own turf and during their day-to-day work increases our understanding of their needs and fosters long-term relationships. Accordingly, we are really looking forward to meeting our customers' requests by visiting them during the coming quarters.

An improved business situation with growth and profitability targets surpassed

In this quarter, we also exceeded our targets for both growth and profitability. Growth in the third quarter amounted to 23 %, profitability to 27 %, and our ARR growth performance was again good, achieving 34 %.

As we have already mentioned, our countries outside Sweden have been particularly affected by the restrictions. This makes it very pleasing to see the improved inflow of orders in these markets during the third quarter, compared with the preceding period. New sales are continuing in the right direction, although there is still some way to go to reach pre-pandemic levels. During the quarter, we were delighted to welcome several new customers - F. Junckers Industrier A/S, Midt Energi AS, Nacka vatten och avfall AB and Miele AB among others - an excellent mix of large and small companies within our focus verticals.

As expected and welcomed, we have been able to perform more activities than during the pandemic. As a consequence, expenses have been higher compared to the third quarter of last year, which explains the lower EBITA-margin. Increased travel and more events, as well as the on-site onboarding of our trainees during the period, contributed to an increase in costs at the same time as we are continuing to invest in growth-promoting activities such as product development, sales and marketing, our employees, the start-up of our German operation and the ongoing integration of Userlike.

We are continuing to invest in our employees

In the aftermath of the pandemic just as with many other companies, we are facing a challenge in the skills shortage in the labour market. A reduced labour supply, in combination with increased mobility in the labour market, will challenge us over the next few months. We can see that this is having a slight effect on our rate of growth, in Expert Services. We are actively recruiting and we are aiming at onboarding an all-time high number of new employees. In combination with this, we are continuing to invest in our employees, focusing on areas such as leadership and staff development.

We will bring our A-game to the final quarter of the year, filled with energy from finally getting to meet our customers and colleagues face-to-face again.

/Nils Olsson, Managing Director and CEO, Lime Technologies

Lime in summary

January – September 2021

Revenue

Net sales

Net sales in the third quarter 2021 amounted to MSEK 93 (76), an increase of 23% (11). The Group's net sales in the third quarter include MSEK 11 (1) from companies acquired in the last 12 months.

Net sales during the first 9 months 2021 amounted to MSEK 290 (246), rendering an increase of 18% (18).

Business acquisitions during the last 12 months have contributed with net sales of MSEK 18 (3) during the first nine months of 2021.

Net sales by category

70% (65) of net sales in the third quarter 2021 relate to software revenue. 62% (59) of net sales in the first nine months 2021 relate to software revenue.

Software revenue increased by 33% (12) during the third quarter 2021 compared to the third quarter 2020. Software revenue increased by 23% (13) during the first nine months in 2021 compared to the same period last year.

Net sales per segment

Net sales in the third quarter 2021 in Sweden amounted to MSEK 65 (61) and MSEK 27 (15) in the rest of the European countries. Net sales growth for the quarter was 7% (11) in Sweden and 89% (10) in the rest of the European countries.

Net sales during the first nine months 2021 in Sweden amounted to MSEK 219 (199) and MSEK 71 (46) 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 third quarter 2021 was MSEK 260 (194). The 12-month recalculated recurring revenue increased by 34% (12) compared to the corresponding period last year.

Recurring revenue

Recurring revenue amounted to MSEK 65 (48) during the third quarter 2021, an increase of 34% (14) compared to the same period last year.

Recurring revenue amounted to MSEK 178 (144) during the first nine months in 2021, in increase of 24% (17) compared to the corresponding period last year.

Operating income EBITDA

Operating income before depreciations during the third quarter – EBITDA – amounted to MSEK 33 (30) corresponding to an EBITDA margin of 35% (39). Adjusted EBITDA was MSEK 33 (30) in the quarter, corresponding to an EBITDA margin of 35% (39).

EBITDA in Sweden amounted to MSEK 24 (24) and in Other Europe MSEK 9 (6) in the third quarter 2021.

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 third quarter of 2021. As a result, the opportunities for travel and other physical sales activities have increased. Furthermore, this has enabled us to reintroduce physical presence into our trainee programme. Consequently, compared with the third quarter, we again have the opportunity to invest in our clients and staff.

During the first nine months 2021 operating income before depreciation – EBITDA – amounted to MSEK 98 (86), corresponding to an

EBITDA margin of 34% (35). Adjusted EBITDA was MSEK 99 (86) during the same period and the corresponding margin was 34% (35).

EBITDA in Sweden amounted to MSEK 71 (64) and in Other Europe to MSEK 27 (22) during the first 9 months 2021.

The operating income in the second quarter was impacted by costs, amounting to MSEK 1.1., relating to the acquisition of Userlike UG.

EBITA

During the third quarter 2021 operating income, excluding amortisation on acquired immaterial assets – EBITA – amounted to MSEK 25 (25), corresponding to an EBITA margin of 27% (33). Adjusted EBITA for the third quarter amounted to MSEK 25 (25), corresponding to an adjusted EBITA margin of 27% (33).

Adjusted EBITA during the first nine months 2021 amounted to MSEK 78 (70), corresponding to an EBITA margin of 27% (29).

EBIT

Operating income during the second quarter – EBIT – amounted to MSEK 15 (20), corresponding to an EBIT margin of 17% (27). Adjusted EBIT during the second quarter amounted to MSEK 15 (20), corresponding to an adjusted EBIT margin of 17% (27).

Operating income during the first nine months – EBIT – amounted to MSEK 56 (57), corresponding to an EBIT margin of 19% (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 (%)

Last 12-months (LTM) recurring revenue amounted to 75% (74) of last 12 months total operating expenses at the end of the third quarter. The expenses include one-off items affecting comparison.

Cash flow & investments

During the third quarter 2021 cash flow from current operations amounted to MSEK 12.8 (14.2).

During the first nine months 2021 cash flow from current operations amounted to MSEK 85.2 (72.7).

During the third quarter 2021 investments in tangible non-current assets amounted to MSEK 0.0 (0.2), excluding leased vehicles and right-touse assets. Investments in intangible non-current assets amounted to MSEK 5.3 (4.6) and consist of capitalisation of development costs relating to new technology platforms.

During the first nine months 2021 investments in tangible non-current assets amounted to MSEK 1.2 (0.2), excluding right-to-use assets. Investments in intangible non-current assets amounted to MSEK 15.4 (13.1) during the same period.

In addition, assets are reported as software in accordance with the acquisition analysis for Userlike UG (Lime Technologies Gävle AB in 2020). During the first 9 months 2021 investments in subsidiaries, Userlike UG (Lime Technologies Gävle AB in 2020), amounted to MSEK -202.2 (-8.3).

In the third quarter 2021, depreciation of capitalised development costs amounted to MSEK 3.2 (2.6) and depreciation of right-to-use assets amounted to MSEK 3.5 (2.2).

Depreciation of capitalised development costs amounted to MSEK 9.6 (7.7) during the first nine months 2021 and depreciation of right-to-use assets amounted to MSEK 9.2 (7.0).

Equity & liabilities

The Group's equity amounted to MSEK 119 (91).

At the Annual General Meeting on 27 April 2021, it was resolved to distribute dividends of SEK 2.50 per share, corresponding to a total amount of MSEK 33.2. The record date was 29 April and the dividend was paid out on 4 May.

The Group's interest-bearing liabilities amounted to MSEK 326.2 (106.8) at the end of the period, including leasing liabilities relating to right-to-use assets of MSEK 23.9 (22.2) and a liability of MSEK 76.9 (18.3) relating to the acquisition of Userlike UG, Lime Intenz AB and Lime Technologies Gävle AB. A total of MSEK 13.8 (9.5) of the Group's interestbearing liabilities have been repaid during the quarter. New liabilities of MSEK 254.8 were added during the first nine months. Cash and cash equivalent amounted to MSEK 62.4 (33.5) at the end of the period. The Group's net debt amounted to MSEK 263.1 (72.5).

The overdraft credit agreement of MSEK 25 expired on 31 December 2020. The overdraft facility was never utilized.

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.

Miscellaneous

Employees

The Group had 363 (288) employees at the end of the reporting period. The average number of employees was 284 (238) 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 third quarter 2021 operating income in the Parent Company amounted to MSEK -1.3 (-0.3). Operating income during the first nine months 2021 amounted to -3.5 (-1.0). Cash and cash equivalent amounted to MSEK 0.8 (1.7) and borrowings to MSEK 225.0 (63.6).

Annual General Meeting 2021

At the Annual General Meeting on April 27, 2021, it was resolved to re-elect the following directors of the board: Marlene Forsell, Martin Henricson and Malin Ruijsenaars. In addition, the Annual General Meeting elected Lars Stugemo and Erik Syrén as new directors. Martin Henricson was elected chairman of the board.

Other resolutions made at the Annual General Meeting;

• » Resolution to distribute dividend of SEK 2.50 per share, corresponding to a total amount of MSEK 33.2. 29 April was the record date for dividend and the payment date was 4 May.
• » Resolution to adopt instruction for the nomination committee.
• » 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 introduce an incentive programme under which the company offers up to 75 individuals within the group the opportunity to acquire 140, 000 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: 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.

Shareholders wishing to submit proposals to the Nomination Committee can do so via e-mail to valberedning@lime.tech. March 15, 2022 (six weeks prior to the Annual General Meeting on 26 April, 2022) is the last day to submit proposals to the Nomination Committee for consideration at the 2022 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.

Lime has been affected by the policy measures adopted to combat the spread of the virus, as well as the effect this had on the business climate. Since the outbreak of the pandemic, Lime's new sales have been affected by deferred or cancelled procurements. The restrictions previously introduced were eased during the third quarter of 2021, but to differing extents in different markets.

Lime has implemented a number of safety measures to monitor and prevent the impact of COVID-19, including safety and health precautions for our employees, and actions to secure delivery of our services.

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. Lime has throughout the recession been able to reach a good sales growth and margin.

The reopening of the various markets may, naturally, continue to change, and Lime will monitor the situation continuously.

On 26 March 2021, Lime acquired an additional 14 % of Lime Intenz AB. The acquisition of Lime Intenz AB includes further options in respect of the acquisition of the remaining 28 percent of the shares in two tranches over the next two years. The consideration on the exercise of the options will be based on the sales performance of the company in each financial year.

During the second quarter, a joint Sales and Marketing Department was formed. The new department is led by Vishal Ganatra, who is now a member of the management team.

During the second quarter, Customer Success and Customer Support were merged into a new department, Loyalty & Expansion. The new department is headed by Anna Hansen, who has also now joined the management team.

In addition, Filip Arenbo has been appointed as the new CPO and joins the management team.

UserLike

On 26 April, 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.

The German SaaS company, Userlike, are experts in Unified Messaging, UM.

The company was established in 2011 with the aim of improving and simplifying communications between companies and their customers. By collating all types of incoming messages – webchat, emails, sms, telephone calls, social media etc. - in the same location, companies can be where their customers are and are able to offer immediate service.

The preliminary acquisition price totalled MSEK 195.4 for 90 % of the shares and voting rights, after the usual adjustment for the company's cash balance and liabilities. The acquisition price was adjusted after the merger, based on Userlike's Annual Recurring Revenue as at 31 August 2021. The adjustment amounted to MEUR 2.4. The acquisition is not subject to any completion conditions. The full consideration is being financed through liquid funds and bank loans.

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.

For the remaining 10 percent of the shares, the consideration is conditional on an exercise of the options on Userlike's Annual Recurring Revenue on 31 August 2023, amounting to between 4 and 6 times Annual Recurring Revenue.

Userlike's sales amounted to SEK 32 million in the most recent financial year (2020).

The preliminary consideration allocation is based on a valuation of identifiable intangible assets. The recognised redemption price will be based on future ARR, and, accordingly, cannot be determined at present. The consideration allocation is, consequently, to be treated as preliminary. According to the consideration allocation, the consideration and expected net assets amount to;

Purchase price	MSEK
Cash and cash equivalent, 30%	195.4
Liability exercise price	63.6
Total preliminary purchase price	259.0

Assets and liabilities included following the acquisition

Acquired net assets	259.0
Total identifiable net assets	259.0
Trade payables and other liabilities	-22.6
Long-term debt	0.0
Cash and cash equivalent	17.3
Trade receivables and other receivables	3.2
Deferred tax liability	-26.6
Software	130.8
Customer relationships	23.7
Brand	23.0
Goodwill	110.2
Intangible non-current assets

Lime has agreed on raising a new bank loan of SEK 250 million and repayment of an existing loan of SEK 50 million.

The company in brief

CRM experts

Lime is one of the leading SaaS CRM players on the Nordic market. The company develops, sells, and implements user-friendly and flexible CRM systems. Lime's business model is based on the offering of subscription agreements (Software as a Service or "SaaS") as well as consultant services (Expert Services) for the implementation and continuous customisation of products in line with customers' demands and requests.

Lime has a comprehensive organisation for development and holistic offerings that facilitate effective and value-add CRM solutions for the customer. The head office is located in Lund. At the end of September 2021, the Group had 363 employees in nine offices in Sweden, Norway, Denmark, the Netherlands, Germany and Finland.

Mission & vision

Lime's mission is to "create customer magnets" that retain existing customers and attract new customers by having excellent customer care.

The company's vision is to "become the leading supplier of CRM systems, by supplying systems that make the customers' work both easier and more fun".

Strategies

Continued structured market growth

Lime's focus is on organic growth. A market report by Capgemini in May 2018, indicates a 12% average annual growth in the Nordic software market for CRM systems in 2017 – 2023.

Geographic expansion

Lime intends to continue to strengthen its presence in current markets to meet the demand for CRM systems.

The setting up of business operations in the Netherlands is proceeding according to plan and establishing Lime in Germany started during the second quarter 2021.

Focus on identified verticals

Lime focuses on customised CRM solutions to four selected market verticals: energy, real estate, wholesale, and consulting companies, to which Lime offers local industry-specific expertise. Combined with pre-packaged solutions for each vertical, this gives customers benefits in terms of flexible solutions, as well as time and cost savings.

Increased sales to existing customer base

Lime intends to maintain and increase sales to existing customers by actively offering add-on products and related expert services postimplementation. The company also has a dedicated customer success team that works to stay close to the customer in the long run, ensuring that customers stay with Lime, and to sell additional products and services.

Continuous development of product platforms

Lime believes it is important to continue developing its product portfolio to strengthen its competitiveness and to attract new customers. With its strong market position, broad customer base and close contact with customers, Lime has a strong starting position for cross sales and add-on sales of new services and features aimed at increasing sales growth and broadening the use of services and solutions.

Selective acquisition strategy

A critical component of Lime's strategy is to be active in assessing strategic acquisitions with the aim of strengthening the product portfolio, growing competencies and resources in the company, growing from a geographic perspective, and broadening the customer base.

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

• » Year-end report 2021, presented February 16, 2022
• » Annual report 2021, presented March 22, 2022
• » Interim report Q1, 2022, presented April 26, 2022
• » Annual General Meeting, April 26, 2022
• » Interim report Q2, 2022, presented July 15, 2022
• » Interim report Q3, 2022, presented October 20, 2022

Lund, October 21, 2021

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

The company´s auditors have performed a high-level review of this report.

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

	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Net sales (MSEK)	92.8	75.6	290.2	245.6
Net sales growth (%)	23%	11%	18%	18%
Organic net sales growth (%)	8%	10%	11%	14%
Recurring revenue (MSEK)	64.7	48.5	177.9	143.9
Annual recurring revenue (MSEK)	260.4	194.1	260.4	194.1
EBITA (MSEK)	25.5	24.7	78.3	70.0
EBITA (%)	27%	33%	27%	29%
EBITDA (MSEK)	32.5	29.8	98.1	85.5
EBITDA (%)	35%	39%	34%	35%
Operating income, EBIT (MSEK)	15.4	20.4	55.5	56.9
Operating income, EBIT (%)	17%	27%	19%	23%
One-off items (MSEK)	0.0	0.0	-1.1	0.0
Depreciation right-to-use assets (MSEK)	-3.5	-2.2	-9.2	-7.0
Adjusted EBITA (MSEK)	25.5	24.7	79.4	70.0
Adjusted EBITA (%)	27%	33%	27%	29%
Adjusted EBITDA (MSEK)	32.5	29.8	99.1	85.5
Adjusted EBITDA (%)	35%	39%	34%	35%
Adjusted EBIT (MSEK)	15.4	20.4	56.6	56.9
Adjusted EBIT (%)	17%	27%	20%	23%
Earnings per share (SEK)	0.83	1.13	3.11	3.20
Earnings per share, diluted (SEK)	0.83	1.13	3.11	3.20
Net debt (MSEK)	263.1	72.5	263.1	72.5
Number of employees (average)	284	238	284	238
Net sales per employee (MSEK)	1.3	1.4	1.3	1.4
Cash flow from current operations per share (SEK)	1.0	1.1	6.4	5.5
Average number of outstanding shares (thousands)	13,283.5	13,283.5	13,283.5	13,283.5

For definition of key rations, see pages 26-29.

Consolidated income statement in summary (TSEK)

	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Net sales	92,835	75,603	290,168	245,630
Other revenue	-14	30	146	283
Gross income	92,821	75,633	290,314	245,913
Operating expenses
Compensation to employees	-48,469	-40,012	-159,896	-135,987
Capitalised development work done by own employees	5,315	4,596	15,361	13,051
Depreciation	-17,161	-9,447	-42,552	-28,567
Other expenses	-17,148	-10,414	-47,713	-38,032
Share in earnings of associated companies	0	0	0	547
Total operating expenses	-77,463	-55,277	-234,800	-188,988
Operating income	15,358	20,355	55,514	56,925
Financial net	-1,568	-938	-3,258	-2,678
Income after financial net	13,790	19,417	52,256	54,247
Taxes	-2,702	-4,389	-10,998	-11,681
Net income	11,089	15,029	41,258	42,566
Net income attributed to:
Shareholders of the Parent Company	11,089	15,029	41,258	42,566
	11,089	15,029	41,258	42,566
Other Information
Earnings per share, basic (SEK)	0.83	1.13	3.11	3.20
Earnings per share, diluted (SEK)	0.83	1.13	3.11	3.20

Consolidated statement of other comprehensive income (TSEK)

	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Net income	11,089	15,029	41,258	42,566
Other comprehensive income
Items that may be reclassified to the income statement:
Revaluation of put option liability	500		500
Translation adjustments	14	42	-263	-426
Other comprehensive income for the period	514	42	237	-426
Other comprehensive income for the period	11,603	15,071	41,496	42,140
Other comprehensive income for the period, attributed to:
Shareholders of the Parent Company	11,603	15,071	41,496	42,140
	11,603	15,071	41,496	42,140

Consolidated balance sheet in summary (TSEK)

	2021-09-30	2020-09-30	2020-12-31
ASSETS
Goodwill	177,198	69,763	69,763
Other non-tangible non-current assets	306,784	148,924	146,661
Right-to-use assets	22,231	22,163	21,970
Tangible non-current assets	2,792	2,627	2,305
Associated company	0	0	0
Other financial non-current assets	713	717	706
Deferred tax asset	60	60	58
Total non-current assets	509,779	244,254	241,463
Trade receivables	56,289	50,045	51,604
Other current receivables	10,724	8,785	6,622
Cash and cash equivalent	62,355	33,517	64,662
Total current assets	129,368	92,347	122,888
Total assets	639,147	336,601	364,351
EQUITY AND LIABILITIES Total equity	119,128	90,842	110,840
LIABILITIES
Non-current liabilities
Interest-bearing non-current liabilities	175,059	35,709	28,524
Non-current leasing liabilities	11,740	14,400	14,240
Other non-current liabilities	39,814	18,338	15,183
Deferred tax liabilities	52,731	28,824	27,959
Total non-current liabilities	279,344	97,271	85,906
Current liabilities
Interest-bearing current liabilities	87,357	28,489	30,404
Current leasing liabilities	12,185	9,828	9,319
Trade payables	8,746	3,705	2,777
Other current liabilities	132,387	106,466	125,105
Total current liabilities	240,675	148,488	167,605
Total equity and liabilities	639,147	336,601	364,351

Consolidated statement of changes in equity (TSEK)

	Hänförligt till Moderföretagets aktieägare
	Aktie- kapital	Övrigt till skjutet kapital	Reserver	Balanserad vinst	Summa eget kapital
Opening balance January 1, 2020 according to adopted balance sheet	531	58,100	363	9,633	68,627
Net income for the period				42,566	42,566
Other comprehensive income for the year			-426		-426
Total other comprehensive income	0	0	-426	42,566	42,140
Transactions with owners
Dividend				-19,925	-19,925
Total transactions with owners	0	0	0	-19,925	-19,925
Closing balance September, 2020	531	58,100	-63	32,274	90,842
Opening balance January 1, 2020 according to adopted balance sheet	531	58,100	363	9,633	68,627
Net income for the period				62,711	62,711
Other comprehensive income for the year			-573		-573
Total other comprehensive income	0	0	-573	62,711	62,139
Transactions with owners
Dividend				-19,925	-19,925
Total transactions with owners	0	0	0	-19,925	-19,925
Closing balance December 31, 2020	531	58,100	-210	52,419	110,840
Opening balance January 1, 2021 according to adopted balance sheet	531	58,100	-210	52,419	110,840
Net income for the period				41,258	41,258
Other comprehensive income for the year			238		238
Total other comprehensive income	0	0	238	41,258	41,496
Transactions with owners
Dividend Total transactions with owners	0	0	0	-33,209 -33,209	-33,209 -33,209
Closing balance September 30, 2021	531	58,100	28	60,468	119,128

Consolidated cash flow analysis (TSEK)

	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Cash flow from current operations
Cash flow from operations	32,519	29,802	98,066	85,243
Changes in net working capital	-13,765	-10,314	4,995	3,693
Interest paid	-2,183	-784	-3,812	-2,524
Taxes paid	-3,751	-4,514	-14,088	-13,760
Cash flow from current operations	12,821	14,191	85,161	72,652
Cash flow from investing activities
Investment in intangible non-current assets	-5,315	-4,596	-15,361	-13,051
Investment in tangible non-current assets	0	-161	-1,228	-161
Sales of tangible non-current assets	0	0	665	525
Acquisition of group companies	-4,694	0	-202,190	-8,338
Acquisition of associated companies	0	0	0	0
Investment in financial non-current assets	0	-196	-8	-179
Interest received	0	20	0	62
Cash flow from investing activities	-10,009	-4,933	-218,122	-21,142
Cash flow from financing activities
Dividend	0	-19,925	-33,209	-19,925
Share issue	0	0	0	0
Proceeds from borrowings	4,656	86	254,804	213
Amortisation of borrowings	-13,804	-9,547	-91,345	-29,052
Cash flow from financing activities	-9,148	-29,386	130,250	-48,764
Net cash flow	-6,337	-20,129	-2,711	2,746
Net change in cash flow
Cash and cash equivalent, beginning of the period	68,595	53,819	64,662	31,342
Exchange rate changes on cash	96	-174	404	-571
Cash and cash equivalent, end of period	62,355	33,517	62,355	33,517

Parent company income statement in summary (TSEK)

	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Net sales	0	0	0	0
Other income	1,200	1,201	4,198	4,127
Gross income	1,200	1,201	4,198	4,127
Operating expenses
Compensation to employees	-1,541	-1,322	-5,139	-4,705
Other expenses	-772	-154	-2,509	-443
Total operating expenses	-2,313	-1,476	-7,648	-5,148
Operating income	-1,113	-275	-3,450	-1,021
Financial income	-3	23	169	370
Financial expenses	-1,354	-650	-2,619	-1,753
Income after financial items	-2,470	-902	-5,900	-2,404
Transfers to / from untaxed reserves	0	0	0	0
Taxes	503	198	1,210	510
Net income for the period	-1,967	-704	-4,690	-1,894

Parent company statement of other comprehensive income (TSEK)

	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Net income	-1,967	-704	-4,690	-1,894
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	-1,967	-704	-4,690	-1,894
Other comprehensive income for the period, attributed to:
The shareholders of the Parent Company	-1,967	-704	-4,690	-1,894
	-1,967	-704	-4,690	-1,894

Parent company balance sheet in summary (TSEK)

	2021-09-30	2020-09-30	2020-12-31
ASSETS
Shares in subsidiaries	328,354	133,360	133,360
Total non-current assets	328,354	133,360	133,360
Prepaid expenses and accrued revenue	756	206	131
Current receivables group companies	0	521	29,609
Other current assets	56	2,800	58
Cash and cash equivalent	775	1,698	717
Total current assets	1,587	5,225	30,515
Total assets	329,941	138,585	163,875
EQUITY AND LIABILLITIES
Restricted equity
Share capital	531	531	531
Non-restricted equity
Share premium reserve	5,065	5,065	5,065
Retained earnings	45,358	14,836	14,836
Net income for the period	-4,691	-1,895	63,731
Total equity	46,263	18,537	84,163
Liabilities
Interest-bearing non-current liabilities	175,000	35,403	28,286
Interest-bearing debt group companies	175,000	35,403	28,286
Total non-current liabilities
Current Interest-bearing liabilities	50,000	28,240	28,286
Account payables	282	64	179
Current tax liabilities	3,378	0	13,660
Current liabilities group companies	52,422	54,166	6,303
Other current liabilities	498	696	547
Accrued expenses and deferred income	2,098	1,479	2,451
Total current liabilities	108,678	84,645	51,426
Total equity and liabilities	329,941	138,585	163,875

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 January 1, 2021 have not had any significant impact on the Group's reporting as of September 30, 2021. The Group applies, apart from the below, the same accounting principles as in the 2020 annual report.

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 page 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 development of own software have been reduced by MSEK 5.3 (4.6) during the third quarter 2021.

Operating expenses relating to development of own software have been reduced by MSEK 15.4 (13.1) during the first nine months 2021.

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 2020 annual report.

COVID-19

As mentioned under the section entitled "Other events during or after the reporting period", the outbreak of the COVID-19 pandemic, and the measures taken by various governments to stem the spread of the virus, will affect our business. In addition to the already known effects, macroeconomic uncertainties cause decline in economic trends and it is not currently possible to say what the long-term effects will be, although the possibility of negative consequences cannot be excluded.

The most critical risks arising from the current uncertain COVID-19 situation are:

Revenue: The macroeconomic uncertainties may lead to delays in customers' procurements, to prolonged sales processes towards new customers, and to existing customers terminating their contracts. Lime has implemented a number of measures to counteract the aforementioned, including intensified sales activities. Furthermore, the political measures implemented by various governments restrict our ability to perform certain services. Lime has implemented actions to partly offset such restrictions, including running training and workshops online.

Profitability: We see an increased risk of doubtful customer accounts as a consequence of COVID-19. Lime's risk exposure to customer accounts is limited due to low customer concentration. Actions have been implemented to ensure fast and effective monitoring of receivables. Actions are also taken to limit expenditures deemed non-business critical in the short term. Management is continuously assessing the need for and the possibility of adjusting the cost base.

Funding and liquidity: Management is closely monitoring the group's cash flow projections and reserves, to ensure there are sufficient cash available to meet the needs of current operations. Cash flow has been in line with management's expectations in the third quarter.

A bank overdraft of MSEK 25 was negotiated and secured during the second quarter 2020 for the purpose of minimising liquidity risks as a result of the COVID-19 pandemic. No amounts have been drawn down under the overdraft during the reporting period and the agreement ended 2020-12-31.

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 71% SEK, 19% EUR, and 11% other currencies. Operating expenses are made up of 72% SEK, 19% EUR, and 9% other currencies.

4. Acquisitions Userlike UG

At the end of the financial year, Lime's shareholding in Userlike UG amounts to 90 percent. The acquisition was completed on 30 April, with a preliminary consideration of MEUR 21, after adjusting for cash and working capital. The preliminary consideration will be adjusted on the basis of the normalised ARR as at 31 August 2021. 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.

For the remaining 10 percent of the shares, the consideration, in the event that these options are exercised, depends on Userlike UG's Annual Recurring Revenue as at 31 August 2023, amounting to between 4 and 6 multiples of the Annual Recurring Revenue.

The price and conditions for the remaining options are such that the company considers it highly likely that the options will be exercised on the exercise date, which is why an estimated exercise price has been recognised as a debt at 30 April 2021 in the group.

The acquisition of Userlike UG has generated a group surplus value of around MSEK 288 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 24. Acquired surplus values, based on the preliminary purchase price allocation, have been impaired by MSEK 5.9 during the quarter and by MSEK 9.8 during the first 9 months of 2021.

During the quarter, Userlike UG contributed SEK 11 million to the Group's sales and SEK 3 million to operating profit before amortization of acquired surplus values.

Userlike UG's sales during the first 9 months of the year amounted to SEK 18 million and operating profit to SEK 4 million.

The Group's operating profit has been charged with MSEK 1.1 in expenses for the acquisition of Userlike UG.

The acquisition of Userlike UG has been charged to cash flow at MSEK 202 during the first nine months 2021..

Lime Technologies Gävle AB (formerly janjoo AB)

Lime's holdings in Lime Technologies Gävle AB at the end of the accounting period amounted to 65 percent. Lime invoked the right, during the fourth quarter of 2019, to exercise options in respect of 35 % of the shares. The acquisition was executed on 13 January 2020, at a purchase price of SEK 7 million. With effect from the date on which the acquisition was executed and control taken, 13 January 2020, the acquired company was consolidated in its entirety in the Lime Group's income statement and balance sheet.

The owners of Lime Technologies Gävle AB have also issued options which give Lime the right to acquire the remaining 35 percent of the shares no later than on 31 December 2021.

Lime Technologies Gävle AB has performed very well, and we are now more convinced than ever that their products strengthen our offering to both new and existing customers. The consideration for the remaining 35 percent of the shares is conditional on an exercise of the options on Lime Technologies Gävle AB's Annual Recurring Revenue, but with a minimum of SEK 7 million and a maximum of SEK 12.25 million.

The price and conditions for the remaining options are such that the Company judges that these options will in all likelihood be invoked on the exercise date and, accordingly, an estimated strike price has been recognized as a liability in the consolidated financial statements as at 13 January 2020. The acquisition generated a capital gain of SEK 0.5 million in the first quarter of 2020.

The acquisition of Lime Technologies Gävle AB in January 2020 has generated non-current intangible assets in the Group amounting to MSEK 24 before tax, whereof MSEK 24 is allocated to software. Estimated yearly depreciations of acquired software amount to MSEK 2.9. Depreciation of acquired software of MSEK 0.7 is included in the fourth quarter results and MSEK 2.9 during 2020.

The acquisition of janjoo AB had a cash flow effect of MSEK -8.3 during the first quarter 2020.

5. Transactions with related parties

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

6. Taxes

Tax expenses in the third quarter 2021 amounted to MSEK 2.7 (4.4). Tax expenses during the first 9 months 2021 amounted to MSEK 11.0 (11.7). 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	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019
Sweden	65,414	76,713	76,679	75,694	61,120	69,205	68,942	65,724	54,838
Other Europe	27,421	26,263	17,678	17,365	14,483	15,832	16,048	16,062	13,144
Income statement in summary, TSEK
Net sales	92,835	102,976	94,357	93,059	75,603	85,037	84,990	81,786	67,982
EBITDA	32,519	33,130	32,417	36,067	29,802	27,013	28,677	24,433	23,702
EBITA	25,497	26,536	26,275	30,624	24,704	21,810	23,496	19,870	19,246
EBIT	15,358	18,230	21,926	26,275	20,355	17,462	19,108	16,251	15,628
Operating margin	17%	18%	23%	28%	27%	21%	22%	20%	23%
Income before tax	13,790	17,105	21,361	25,758	19,417	16,912	17,918	15,894	15,321

Revenue from customer contracts (TSEK)

		Q3 2021		Q3 2020
Revenue by income stream, TSEK	Sweden	Rest of Europe	Total	Sweden	Rest of Europe	Total
Subscription revenue	34,791	20,249	55,040	29,909	7,799	37,708
Licence revenue	391	25	416	447	43	490
Support agreements	8,770	924	9,694	9,654	1,106	10,760
Expert Services	20,982	6,098	27,080	20,859	5,354	26,213
Other	480	125	605	251	181	432
Net sales	65,414	27,421	92,835	61,120	14,483	75,603

		Q1-Q3 2021		Q1-Q3 2020
Revenue by income stream, TSEK	Sweden	Rest of Europe	Total	Sweden	Rest of Europe	Total
Subscription revenue	102,050	45,844	147,894	87,722	23,414	111,136
Licence revenue	1,491	85	1,576	2,055	141	2,195
Support agreements	27,108	2,912	30,020	29,282	3,439	32,720
Expert Services	86,585	22,284	108,869	78,642	19,036	97,677
Other	1,572	237	1,809	1,567	335	1,902
Net sales	218,806	71,362	290,168	199,267	46,363	245,630

Sales per quarter

Sales, TSEK	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019
Expert Services	27,080	40,760	41,029	40,774	26,213	34,839	36,625	34,793	23,603
Software related revenue*	65,150	61,565	52,772	51,421	48,959	49,713	47,380	46,155	43,731
Other	605	652	555	864	431	485	985	838	649
Sales, TSEK	92,835	102,976	94,356	93,059	75,603	85,037	84,990	81,786	67,982
Whereof recurring revenue	64,734	60,943	52,234	50,534	48,468	48,520	46,868	44,253	42,545
Whereof recurring revenue (%)	70%	59%	55%	54%	64%	57%	55%	54%	63%
Growth net sales (%)	23%	21%	11%	14%	11%	21%	22%	19%	23%
Growth recurring revenue (%)	34%	26%	11%	14%	14%	17%	20%	19%	21%

*) 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.

Annual Recurring Revenue

The recurring revenue, in the last month of the quarter, recalculated to a 12-month period. The measure indicates the value of recurring revenue during the coming 12 months based on revenue from existing customers at the end of the period. The measure is also important for industry comparisons.

TSEK	Q3 2021	Q3 2020
Recurring revenue (quarter)	64,734	48,468
Annual recurring revenue - ARR	260,357	194,113

Number of shares outstanding

The number of registered shares less any repurchased shares at the balance sheet date. The measure is mainly used for calculation of key ratios; see below. The Group did not own any of its own shares during any of the reporting periods. The key ratios have, when applicable, been restated based on the share split (1:250) in October 2018.

EBITA

Operating income before depreciation of acquired intangible non-current assets. The purpose is to assess the Group's operational activities. EBITA is a supplement to operating income as it is an indication of cash flow from operations.

TSEK	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Operating income	15,358	20,355	55,514	56,925
Depreciation of acquired intangible non current assets	10,139	4,349	22,793	13,085
EBITA	25,497	24,704	78,308	70,010
Net sales	92,835	75,603	290,168	245,630
EBITA (%)	27%	33%	27%	29%

EBITDA

Operating income before depreciation on tangible and intangible non-current assets. The purpose is to assess the Group's operational activities. EBITDA is a supplement to operating income.

TSEK	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Operating income	15,358	20,355	55,514	56,925
Depreciation	17,161	9,447	42,552	28,567
EBITDA	32,519	29,802	98,066	85,492
Net sales	92,835	75,603	290,168	245,630
EBITDA (%)	35%	39%	34%	35%

Financial assets

Non-current and current financial assets, and cash and cash equivalent. The financial assets measure is used for the application of IFRS 9. The measure is used to calculate net liabilities.

TSEK	2021-09-30	2020-09-30	2020-12-31
Other financial non-current assets	713	717	706
Cash and cash equivalent	62,355	33,517	64,662
Financial assets	63,068	34,234	65,368

Adjusted EBIT

Operating income according to the income statement before one-off items. The measure is a supplement to operating income adjusted for one-off items affecting comparison. The purpose is to show the operating income excluding items that affect comparison with other periods.

TSEK	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
EBIT	15,358	20,355	55,514	56,925
One-off items	0	0	1,082	0
Adjusted EBIT	15,358	20,355	56,596	56,925
Net sales	92,835	75,603	290,168	245,630
Adjusted EBIT (%)	17%	27%	20%	23%

Adjusted EBITA

Adjusted EBITA shows EBITA adjusted for one-off items affecting comparison. The purpose is to show EBITA excluding items that affect comparison with other periods.

TSEK	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
EBITA	25,497	24,704	78,308	70,010
One-off items	0	0	1,082	0
Adjusted EBITA	25,497	24,704	79,390	70,010
Net sales	92,835	75,603	290,168	245,630

Adjusted EBITDA

Adjusted EBITDA shows EBITDA adjusted for one-off items affecting comparison. The purpose is to show EBITDA excluding items that affect comparison with other periods.

TSEK	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
EBITDA	32,519	29,802	98,066	85,492
One-off items	0	0	1,082	0
Adjusted
EBITDA	32,519	29,802	99,148	85,492
Net sales	92,835	75,603	290,168	245,630
Adjusted EBITDA (%)	35%	39%	34%	35%

One-off items affecting comparison

Refers to items that are reported separately as they are of a significant nature and affect comparison and are considered foreign to the Group's ordinary core operations. Examples are acquisition-related expenses, expenses relating to public listing of shares, and restructuring costs.

TSEK	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Acquisition related expenses	0	0	-1 110	0
Write-down of share option liability	0	0	27	0
One-off items that distort comparisons	0	0	-1,082	0

Cash flow from current operations per share

Cash flow from current operations divided by the average number of shares outstanding. Allows readers of financial reports to compare cash flow from current operations per share. The number of shares has been restated following the 1:250 share split in October 2018.

TSEK	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Cash flow from current operations	12,821	14,191	85,161	72,652
Number of share (thousands)	13,283	13,283	13,283	13,283
Cash flow from current operations per share (SEK)	0.97	1.07	6.41	5.47

Growth in net sales

The measure shows %-growth in net sales compared to the same period during previous year. The measure is a key ratio for a company within a growth industry.

TSEK	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Net sales, the period	92,835	75,603	290,168	245,630
Net sales, same period previous year	75,603	67,982	245,630	207,910
Growth in net sales	23%	11%	18%	18%

Net liabilities

Interest-bearing non-current and current liabilities less financial assets. The purpose is to show the real level of debt.

TSEK	2021-09-30	2020-09-30	2020-12-31
Interest bearing non-current liabilities	175,059	35,709	28,524
Non-current leasing liabilities	11,740	14,400	14,240
Other non-current liabilities	39,814	18,338	15,183
Interest bearing current liabilities	87,357	28,489	30,404
Current leasing liabilities	12,185	9,828	9,319
Financial assets	-63,068	-34,234	-65,368
Net liabilities	263,087	72,530	32,302

Average number of employees

The average number of employees means the number of employees during the last 12-month period in relation to normal yearly working hours. The measure indicates how well one of the Group's key processes – recruitment and development of staff – develops over time.

Net sales per employee

Shows trailing 12-month net sales in relation to average number of employees during the last 12 months. The measure is a key ratio for industry comparisons.

TSEK	Q4 2020 - Q3 2021	Q4 2019 - Q3 2020
Trailing 12-month net sales	383,227	327,416
Number of employees	284	238
Net sales per employee	1,347	1,376

Organic growth in net sales

The measure shows growth in net sales adjusted for acquisitions during the last 12 months. Acquired businesses are included in organic growth once they have been part of the Lime Group for four quarters. The measure is used to analyse underlying net sales growth.

TSEK	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Net sales, period	92,835	75,603	290,168	245,630
Acquired net sales, last 12 months	-10,999	-666	-18,434	-10,779
Organic net sales	81,836	74,937	271,734	234,851
Organic net sales, same period last year	74,937	65,525	234,851	203,888
Adjusted for acquired net sales last 24
months Comparable	666	2,457	10,779	1,565
organic net sales	75,603	67,982	245,630	205,453
Organic net sales growth (%)	8%	10%	11%	14%

Recurring revenue

Revenue of annual recurring nature is made up of support and maintenance revenues and subscription revenues.

TSEK	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Subscription revenue	55,040	37,709	147,895	111,137
Support agreements	9,694	10,759	30,016	32,720
Recurring revenue	64,734	48,468	177,911	143,857

Recurring revenue in relation to operating expenses

Revenues of annual recurring nature in relation to operating expenses. The measure is a key ratio for industry comparisons.

TSEK	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Recurring revenue	64,734	48,468	177,911	143,857
Operating expenses	-77,463		-55,277 -234,800	-188,988
Recurring revenue in relation to operating expenses	84%	88%	76%	76%

Earnings per share

Defined in accordance with IFRS.

Earnings per share, diluted

Defined in accordance with IFRS.

Operating margin, EBIT

Operating income in relation to net sales. To readers of financial reports, the measure is an indicator of a company's earning ability.

TSEK	Q3 2021	Q3 2020	Q1 - Q3 2021	Q1 - Q3 2020
Operating income	15,358	20,355	55,514	56,925
Net sales	92,835	75,603	290,168	245,630
Operating margin	17%	27%	19%	23%

Operating income, EBIT

Operating income according to the income statement.

This is Lime CRM with a twist

Ever since day one, our overall goal has been to deliver exceptionally user-friendly CRM systems that simplify everyday life for our customers. The balanced mix of commitment and technology has made us one of the market leaders in the Nordic region. Our focus is now on turning all companies into customer magnets who retain their customers and attract new ones.

Lime's organisation is comprehensive and covers development, sales, implementation and support, allowing for a turnkey offering facilitating efficient and value-creating CRM solutions for the customer. Lime has nine offices in Sweden, Norway, Denmark, Finland, Germany and the Netherlands. Lime was founded in 1990 and has demonstrated an average growth rate of 19 percent since the year 2000.

Our products

Lime CRM is a flexible and powerful SaaS CRM platform. One of the strengths of Lime CRM lies in the combination of the company's expert services

and the flexibility of the software. In a very short time, the customer can have a solution with automated flows, support for key demands and a clear overview of the entire business. Combined with integrated systems, an ecosystem is created, providing significant customer benefits.

Lime Go has been developed to maximise sales in sales organizations. The typical customer has a great need for new business opportunities

and a constant flow of new customers. The software can be described as being streamlined with good control of upcoming business deals. Lime Go comes with a large library of company and contact information for nearly all companies in the Nordic region.

Userlike is a Customer Messaging solution which improves and simplifies communication between companies and customers. By bringing together the most popular communication channels – web chat, Facebook messenger, WhatsApp, SMS etc. – in the same inbox, companies can be where the customer is and offer immediate service.

Userlike is run as an independent company within the Lime Group. The product is sold separately, but the functionality will also be offered as add-ons to Lime's CRM solutions.

Follow Lime

All reports, annual reports and, where applicable, presentations are published at investors.lime-technologies.com, where it's also possible to subscribe to mailings of financial information.

16 February 2022	Year-end report 2021
22 March 2022	Annual report 2021
26 April 2022	Interim Report Q1 2022
26 April 2022	Annual General Meeting
15 July 2022	Interim Report Q2 2022
20 October 2022	Interim Report Q3 2022

Lime Technologies AB (publ)

Organisationsnummer: 556953-2616 www.lime-technologies.com St Lars väg 46, 222 70 Lund 046-270 48 00

Auditor's report

Lime Technologies AB (publ), 556853-2616

Introduction

We have reviewed the condensed interim financial information (interim report) of Lime Technologies AB (publ) as of 30 September 2021 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, 21 October 2021

Öhrlings PricewaterhouseCoopers AB

Ola Bjärehäll Authorized Public Accountant