LINK Mobility Group Holding

Investor Presentation • Nov 5, 2024

Financial presentation

Q3 2024

5 November 2024

DISCLAIMER

The statements contained in this presentation may include forward-looking statements, such as statements of future expectations regarding the Company's results of operations, financial condition, liquidity, prospects, growth and strategies. These statements are based on the management's current views and assumptions and involve both known and unknown risks and uncertainties and assumptions that are within and outside the management's control. Although the company believes that the expectations implied in any such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Actual results, performance or events may differ materially from those set out or implied in the forward-looking statements. No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved. The forward-looking statements included in this presentation represent the company's views as of the date of this presentation and subsequent events and developments may cause the company's views to change. The company disclaims any obligation to update forward-looking information except as required by law. Readers should not place undue reliance on any forward-looking statements.

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This presentation contains alternative performance measures, or non-IFRS financial measures. Definitions and calculations are presented on www.linkmobility.com in the financial report.

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LINK – European #1 for digital messaging

Market leader in Europe - Global ambitions with strong track record for growth

3 Interim Report Q3 2024

LINK services clients through channel-agnostic solutions

Facilitating evolution to multi-channel / two-way solutions and adding value through supporting CPaaS software solutions

Q3 2024 highlights – Organic growth in line with expectations

Executing on M&A strategy and high single digit organic gross profit growth

Revenue stable at NOK 1,7 billion after LINK terminating low margin aggregator traffic

• Global Messaging revenue decline of NOK 87million due to LINK terminating low margin contracts
  • Shifting focus from revenue to profitability and more restrictive credit policy
• Enterprise revenue growth of 8%

Gross profit at NOK 357 million with 9% growth YoY

• Nordics and Central Europe growth momentum in line with first half
• Western Europe impacted by bankruptcy churn and disputed operator price increase
• Higher demand for more profitable CPaaS products and OTT channels

Adjusted EBITDA at NOK 166 million and solid cash flow from operations

• Organic growth in fixed FX at 10%
• Cash flow from operations of NOK 200 million

Executing the inorganic growth strategy – three targets closed this year

• Closed acquisition of Net Real Solutions in Spain increasing market share to 26%
  • Gaining access to South America through NRS offices in Colombia and Mexico
• Strengthening UK market position by Reach Interactive acquisition late October

Successfully refinanced 125mEUR of LINK01 bond in October

• New 5-year EUR 125 million bond issued at floating rate of 3-month EURIBOR + 2.35%

Organic growth yoy

NOKm	Q3 2023	Organic growth	FX effect	Acquired	Q3 2024
Revenue	1 597	1	55	5	1 658
Organic growth (%)		0%
Gross profit	317	27	11	2	357
Organic growth (%)		9%
Adjusted EBITDA	147	15	3	2	166
Organic growth (%)		10%

Revenue growth yoy

Organic gross profit growth in line with expectations

Gross margin expansion yoy from higher share of Enterprise in revenue mix

Group organic gross profit development (NOKm)

Group gross margin (%)

Total organic gross profit growth of 9% in stable currency

• Western impacted by bankruptcy churn and disputed operator price increase
  • Total negative impact of NOK 6 million in the quarter
• Central continue to deliver strong growth momentum of 15%
• Northern growth mid single digit adjusted for internal shifts in line with first half
• Enterprise growth was 8% excluding the mentioned effects in Western Europe

Global Messaging growing gross profit 34% from improved traffic mix

• Proactively terminating low-value contracts improved traffic mix

Gross margin expansion impacted by Global messaging mix

• Enterprise gross margin impacted by operator cogs increase in Italy
• Termination of low-value clients improved margins in Global Messaging

Enterprise business churn low over time

Net Retent n Rate n Q3'24 m a ted te m nat n f w-margin traffic in Global Messaging

Enterprise and Global Messaging churn (%)

Net retention rate (NRR) %

Elevated churn in Global Messaging related to termination of low-value traffic

Enterprise churn slightly elevated from previous quarters

• Isolated bankruptcy case in Western Europe
• Underlying enterprise churn of 1.8%
• Sticky integrations and high transition costs for clients

Net retention rate impacted by Global Messaging segment

• Termination of low-value aggregator traffic increased churn and lowered NRR
• NRR was 3 n Q3'24 ex d ng te m nat n f t aff n a Messag ng
• Bankruptcy churn in Western Europe impacts NRR with 1 percentage points

New contract wins – increased demand for OTT channels

Closed won contracts growing 16% yoy in a seasonally slower quarter driven by signed CPaaS contracts

New agreements signed in quarter

Gross profit contribution from new contract wins*

Continued growth in CPaaS contracts sold yoy

• CPaaS contracts representing close to 40% of signed contracts
• OTT main driver for CPaaS contracts signed (RCS and WhatsApp)
• MyLINK Marketing have lower contracts signed due to vacation but strong pipe in final stage
• Other CPaaS solutions mainly driven by e-mail, chatbot and security products

Scaling on large clients combining chatbot and RCS

Apple support for RCS business messaging confirmed in selected markets

Apple's support for RBM (RCS Business Messaging) features was postponed until the recent iOS 18.1 update, which was released on October 29.

Support for Apple RBM is now confirmed across selected operators in the UK, France, and Spain with the initial user experience not yet on par with Android.

M&A pipeline progressing as planned with closed acquisitions

Strengthened market position in Iberian Peninsula and UK

• Enterprise value of EUR 3.5 million
• LTM EV/cash EBITDA multiple of 7.0x

Net Real Solutions acquired in Spain • Founded in 2001 with HQ in Castellon, Spain

• LTM EV/cash EBITDA multiple of 6.4x

• Enterprise value of EUR 9.5 million

Reach Interactive acquired in the UK

• Founded in 2002 with HQ in Doncaster, UK
• Offer SMS marketing to a diverse customer base

• Enterprise value of GBP 3.0 million
• LTM EV/cash EBITDA multiple of 6.3x

Replenished prioritized list of targets

• Short-term actionable targets maturing through funnel
• Updated prioritized pipeline of 12 targets whereof 4 in DD process
• Combined EBITDA up to EUR 40 million
• Combination of smaller bolt-ons and larger level ups

M&A play-book guidelines

• Strong local market position and strong telecom operator relationships
• Cash EBITDA positive and cash accretive to LINK from day one
• Solid, well-diversified customer portfolios with low churn
• ~80% overlapping technology strong commercial enterprise focus
• Synergy potential to create further value
• Target valuations between 6-9x cash EBITDA before synergies pending growth momentum

Strategy to deliver value through organic and inorganic growth

LINK's business model is scalable and highly cash generative

• Organic gross profit growth in high single digits historically
• Organic adjusted EBITDA expected to grow at higher rate than organic gross profit

Diverse M&A pipeline with additional EBITDA potential > NOK 200 million in Europe alone

• Ambition for inorganic growth through bolt-ons to add 10% of adjusted EBITDA annually
• Updated portfolio of 12 prioritized targets whereof 4 in due diligence stage
  • Bolt-ons in Europe priority to realize further scale
  • Several potential level-up cases in Europe and beyond including the US

Disciplined financial policy

• Net debt not exceeding 2 2.5x adjusted EBITDA range
• Ample capacity for inorganic growth

Financials

Q3 2024

5 November 2024

Restructured debt profile and finalized share buyback in October

Own bonds holding of EUR 74 million cancelled and issued new EUR 125 million bond

Refinanced 125mEUR of "LINK01" in October 2023

• Iss ed new UR 2 m n "LINK 2" nd
• Interest terms EURIBOR 3mnths + 2.35%
• Im ved f ex t n d v dends vs "LINK "
• Re ased and an e ed 2 m UR f "LINK "
• Cancelled own bonds holding of 74mEUR

Maturity profile bonds after issue of LINK02

Share buy back program concluded on 16th October

• Total of 17 million shares acquired at average price of 20.71 NOK
• wn s a es ased as f Q3'24 was m n
• Cash impact in Q3 of NOK 128 million and full program NOK 352 million
• Treasury shares utilized for employee incentive programs
  • Employee share purchase program
  • Stock option incentive programs

Buyback program (million shares)

Reported revenue YoY growth 4%

Total revenue stable yoy in fixed FX from termination of low value traffic in Global Messaging

Reported revenue NOKm

Reported volume (mill transactions)

Enterprise segments with 8% organic revenue growth in fixed FX

• Revenue growth in enterprise segments in line with volume growth
• EZ4U acquisition in Portugal contributes NOK 5 million

Global Messaging segment declining 18% YoY in fixed FX

• Termination of low value traffic following increased focus on profitability

Reported volume growth Q3 24 at 6% impacted by decline in Global Messaging

• Enterprise volume growth at 9%
• OTT channels continue to grow at high pace

Reported gross profit YoY growth 13%

Organic gross profit growth of 9% in line with expectations

Gross profit NOKm

Enterprise gross margin (%)

Organic gross profit growth of 9% in fixed FX

• Organic growth in Enterprise segments was 6% in stable currency
  • Growth of 8% excluding isolated churn and cogs increase in Italy
• N t e n e g wt n ne w t H'24
• Central Europe growth of 15% in line with recent trends

Enterprise gross margin stable around 26% over time

• e at gs n ease n Ita m a t negat ve 3 n ma g n n Q3'24
• Margin fluctuations relate to traffic mix changes
• Underlying margins per clients stable

Enterprise gross profit growth trends

Growth momentum QoQ impacted by isolated events in Western Europe

2 Gross profit (mnok) / yoy organic gross profit growth (fixed FX) %

Organic enterprise gross profit growth of 6% yoy in Q3

Western Europe growth in Q3 impacted by isolated items

• Isolated operator price increase in Italy
  • Price increase challenged and regulator to determine price in Q4
  • Increase only partly passed on to clients until clarity on final pricing
  • Full cost increase accrued in Q3 with NOK 3 million impact

• Large client churned due to bankruptcy

• Churn effect in Q3 was 8mnok in revenue and 3mnok in gross profit
• H g ma g n nt t n n Q3'23 f m g s a e f TT v mes
• Im a t n Q4'24 and H 2 2 ex e ted t e s g t we

• Excluding the above effects Western Europe gross profit growth was 8%

• Higher comparables impact growth momentum QoQ

• Northern Europe grow mid single digit considering internal shift of clients

• Volume growth softer QoQ related to campaign activity last year
• One-time negative effect related to previous quarters impacting 2%

• Central Europe growth in line with trends

• Growth driven by topline growth including roll-out of CPaaS solutions
• Improved client mix QoQ due to extraordinary low-margin traffic last quarter

Reported adjusted EBITDA YoY growth 13%

Adjusted EBITDA growth in stable currency of 10%

Adj. EBITDA & Adj. EBITDA margin %

Non-recurring costs & EBITDA

Organic growth in adjusted EBITDA 10% in fixed currency

• Organic Adj. EBITDA growth of NOK 15 million YoY in fixed currency
  • NOK 27 million from organic gross profit growth
  • Churn and cogs increase in Western impact NOK 6 million
  • Total opex growth of 7% related to inflation and growth
  • Inorganic contribution from EZ4U acquisition in Portugal
• Adj.EBITDA margin expanded yoy from improved gross margin

Non-recurring costs of NOK 38 million

• Stock option cost of 15 mnok impacted by share-price increase QoQ
  • NOK 6 million on ordinary program cost
  • NOK 9 million in increase in social security tax accrual
• M&A costs impacted by recognition of historical error in opening balance
  • Unrecoverable receivables of NOK 11 million in AMM acquisition
• Restructuring costs related to organizational changes across Group

P&L – Interest costs on bond partly offset by deposit interest

NOK in millions	Q3 2024	Q3 2023	YTD 2024	YTD 2023	Full Year 2023
Total operating revenues	1 658	1 597	5 145	4 486	6 282
Direct cost of services rendered	(1 301)	(1 280)	(4 054)	(3 523)	(4 934)
Gross profit	357	317	1092	963	1348
Operating expenses	(190)	(170)	(587)	(531)	(735)
Adjusted EBITDA	166	147	505	432	613
Non-recurring costs	(38)	(27)	(68)	(89)	(135)
EBITDA	129	120	436	343	478
Depreciation and amortization	(86)	(83)	(252)	(247)	(338)
Operating profit (loss)	43	36	185	97	140
Net financials	(21)	(1)	257	(114)	(89)
Profit (loss) before income tax	23	36	441	(17)	51
Income tax	(2)	(14)	(106)	3	(13)
Profit (loss) from continuing operations	21	22	336	(15)	38
Profit (loss) from discontinued operations		20		45	29
Profit (loss) for the period	21	43	336	30	67

Non-recurring costs of NOK 38 million

• M&A costs of NOK 13 million
• Costs related to restructuring NOK 9 million
• Share-option cost of NOK 15 million

Depreciation and amortization NOK 86 million

• Depreciation of intangible assets from R&D NOK 22 million
• e e at n f 's N K m n
• Depreciation of leasing and fixed assets NOK 5 million

Net financials negative NOK 21 million

• Net currency loss of 8 million
• Net interest costs of NOK 12 million

Solid balance sheet with ample capacity for inorganic growth

NOK in millions	03 2024	Q3 2023	Year 2023
Non-current assets	7 492	6 386	6 372
Trade and other receivables	1 699	1 304	1 380
Cash and cash equivalents	2 491	1 066	1 097
Current assets held as available for sale		2 996	2 832
Total assets	11 682	11 752	11 681
Equity	5 518	5 578	5 514
Deferred tax liabilities	244	270	274
Long-term borrowings	4 328	4 121	4 008
Other long-term liabilities	30	41	38
Total non-current liabilities	4 602	4 432	4 321
Trade and other payables	1 411	1 340	1 494
Other short-term liabilities	151	83	55
Short-term liabilities held as available for sale		319	297
Total current liabilities	1 562	1 742	1 846
Total liabilities	6 163	6 174	6 167
Total liabilities and equity	11 682	11 752	11 681

Acquisition of NRS included in third quarter balance sheet

• Non-current assets increase yoy from own bonds purchased and M&A
  • EZ4U and Net Real Solutions acquisitions contribute NOK 189 million
• Trade and other receivables includes NOK 393 million related to US divestment
  • Both due Q2 2025

Cash balance QoQ impacted by share buy-back and M&A

• NOK 128 million cash outflow related to share buy-back
• NOK 107 million in net consideration for acquisition of NRS in Spain
• N K m n n nte est e e ved a t e ated t H'24

Equity NOK 5 518 million and equity percentage 47%

• NOK 309 million in treasury shares lowers total equity

Net interest-bearing debt* NOK 975 million

• x des se e 's ed t e e va e f N K m n d e t nd te ms
• Stable leverage ratio QoQ of 1.4x adjusted EBITDA

Q3'24 as f w m a ted s t ve nte est e e ved

LTM free cash generation of more than NOK 400 million

NOK 000	2023	1 202	2 202	3 202
d E I	1 1	15	1 0	1
Inte est e e ved
t e ng a ta anges n w	3	3		3
Taxes a d			2	3
N n e sts M ng	2			22
Net cash flo from o erating activities	2	153		201
dd M sts a n n e ng	2			22
d cash flo from o erations	2	15	3	22
a ex	3	34	34	42
Lease and nd				4
ash flo after ca e and interest	15	11	1	1

L 3 202

33

4

3

Cash generation in Q3 positively impacted by working capital

• Working capital normalized after build up previous quarter
• Re e ved nte est a t e ated t H'24 f N K m n 33

LTM free cash flow NOK 433 million after capex and interest

• Includes US financing costs of ~ N K m n f Q4 '23 5

Bond interest partly offset by interest income on cash 4

Conservative financial policy net debt 2 - 2.5x adjusted EBITDA 4

• Free cash flow to further strengthen cash position
• Following refinancing two bonds totalling EUR 296 million outstanding

Appendix

Q3 2024

5 November 2024

Northern Europe

Central Europe (restated*)

Internal *Netherlands moved from central Europe to Western Europe from Q1 2024 – historical segment financial have been updated accordingly

Western Europe (restated*)

Internal *Netherlands moved from central Europe to Western Europe from Q1 2024 – historical segment financial have been updated accordingly

Global Messaging

Customer accounts

LINK serves more than 50.000 customer accounts

ustomer accounts ('000)*

Growing base over time with more than 50,000 customer accounts

• Significant upselling potential beyond initial use-case to existing customers
• High commercial success rate in second sale (~70% win-rate)
• EZ4U acquisition added 1.400 accounts from Q2 24
• g t de ne n Q3'24 e ated t w-value inactive SSU accounts

Q&A

linkmobility.com/investors