LINK Mobility : Nordea credit bond seminar, 23 May 2024

Nordea credit bond seminar

Stockholm, 23 May 2024

LINK in short

Market leader in Europe - Global ambitions with strong growth credentials

European #1 for enterprise digital messaging	Revenue NOKm
• Attracting and serving customers locally with local languages
• Creating stickiness and upsell opportunities	21%*
• High double-digit growth over the last 4 years

Proven M&A achievements with more than 30 acquisitions

• Expanded throughout Europe from the Nordics since 2016

600 employees, 29 offices, 17 countries serving more than 50,000 customers

Adjusted EBITDA NOKm

16%*

2May 2024

* CAGR growth

LINK #1 in Europe for enterprise digital messaging

Established player for more than 20 years - Facilitating evolution to multi-channel /two-way solutions

Enhanced interaction through digital solutions​

TWO WAYS	Uniquely targeted messaging on preferred channels
COMMUNICATIONS

Enterprise

Public Sector

Notifications

Alerts

Promotions

Payments

Invoices

Updates

Chat

+

av

3May 2024

Digital messaging gaining traction towards CPaaS

SMS still largest channel with more than 5 billion global users

Global digital messaging market on SMS large and growing

• Expected to grow from below USD 70 billion up to close to USD 80 billion
• • LINK experiencing high single digit A2P growth in Europe

Communication Platform as a Service (CPaaS) fast growing new market

• Expected to extend at CAGR above 20% from a lower base

New channels transforming digital messaging towards CPaaS

Global A2P SMS market

USD bn

67

79

• Use cases moving from one-way SMS messaging to multi-channel conversations

Global OTT messaging apps

4May 2024

2022

2023

2024

2025

2026

2027

2028

2029

2030

Source: Zion Market Research

Global CPaaS market

23

USD bn

5

2020

2021

2022

2023

2024

2025

2026

2027

2028

Source: Zion Market Research

LINK's recurring and growing business model

Solid European footprint in growing markets supported by megatrends and increased adoption rates

Recurring business with more than 50,000 customers in Europe

• Customers remain and increase their usage

Net retention rate (NRR) and customer churn (%)

Nurn

Scalable business model

• Adjusted EBITDA growth versus gross profit growth

Gross profit (NOKm) - growth%

Adjusted EBITDA (NOKm) - growth%

LL

Megatrends support digital messaging growth

• Increased adoption and traction on higher margin CPaaS solutions

Annual messaging per capita

CPaaS GP - Closed won contracts (NOKm)

Norwa K rance ain erman

Diversified use cases and industry exposure

• Resilient revenue distribution tilted towards stable notifications

o

emaining

o

o	o	No i ica ions	obile	us omer
		ar e ing	care

Customer revenue concentration

5May 2024

Digital messaging moving from one-way SMS to rich conversations

Standard messaging	Rich messaging	Conversational
Communicate directly	En ance our cus omer's	Transform your communications
with your customers on	experience with multi-channel	into conversations with your
SMS	personalized content	customers

6	May 2024

LINK's s rong localized CPaaS product offering

Local approach key success criteria for capturing share of CPaaS market growth

Strong local presence across Europe is a key strategic advantage

• LINK has 29 offices in 17 European countries
• All customer interactions are in the language preferred by the customer
• Key insight to market trends and needs supports commercial success

CPaaS products well suited to LINK's local approach

• New communications solutions are complex
• • Clear benefit with face-to-face interaction
• Customer success greatly enhanced through on-site support

Strong CPaaS product portfolio

• Sticky software solutions integrated into customers IT stack
• Broad portfolio of solutions and channels

7May 2024

HELSINKI

BERGEN OSLO STOCKHOLM

LIVINGSTON

KØBENHAVN

HAMBURG

BREUKULEN	GLIWICE
LONDON	WIEN
RORSCHACH	GRAZ
PARIS	BUDAPEST
BOLOGNA	BUCHAREST
	SOFIA
MADRID	SKOPJE

MILANO

AREZZO

KUMANOVO

BELLUNO

Diverse M&A pipeline in Europe and beyond

Actionable targets mostly located in Europe

M&A play-book guidelines	Prioritizing 11 actionable targets in Europe and beyond
•	Strong local market position and strong telecom operator relationships	• Combined revenue up to EUR 250 million
• Cash EBITDA positive and cash accretive to LINK from day one	•	Combined EBITDA up to EUR 40 million
•	Solid, well-diversified customer portfolios with low churn	•	Combination of smaller bolt-ons and larger level ups
•	~80% overlapping technology strong commercial enterprise focus		• Targets mostly located in Europe

• Synergy potential to create further value
• Target valuations between 6-9x cash EBITDA before synergies pending growth momentum

8

May 2024

High free cash flow conversion

Am le inancing ca aci or LINK's disci lined &A s ra eg

ro or a Europe N K illions	L

d E I

ange wor ing ca i al

a es aid

Non reccuring cos s	&A
Net cash	low ro	operating acti ities
Add bac	non recurring cos s &A

d cash low ro operations

a e

Lease and bond

ash low a ter cape and interest

High cash conversion from adjusted EBITDA

• Organic growth momentum improved operational cash flow
• Working capital expected to be neutral over time

LTM free cash flow NOK 395 million

• Includes US financing costs of ~ NOK 50 million

Bond interest partly offset by interest income on cash

• Excess cash deposited in banks at interest > bond coupon

Conservative financial policy net debt 2 - 2.5x adjusted EBITDA

• Free cash flow to further strengthen cash position
• Remaining bond EUR 348 million to be refinanced when appropriate

9

May 2024

* Working capital, taxes paid, non-reccurring costs, capex and lease payments excluding impact of US business owned in the period '

roug

'

LINK positioned for strong FCF growth in 2024 and beyond

LINK's European business is scalable and highly cash generati e

• Organic gross profit growth in high single digits historically
• Organic adjusted EBITDA expected to grow at higher rate than organic gross profit
• Net debt not exceeding 2 - 2.5x adjusted EBITDA range when refinancing in 2025

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

• Bolt-onsin Europe priority to realize further scale
• Several potential level-up cases in Europe and beyond including the US

10

May 2024