LINK Mobility : Pareto Nordic Bond Conference, 21 March 2024

Pareto Nordic bond conference

Stockholm, 21 March 2024

LINK in short

Market leader in Europe - Global ambitions with strong growth credentials

European #1 for enterprise digital messaging	Revenue NOKm
•	Attracting and operating customers locally with local languages creating
	stickiness and upsell opportunities
•	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 in 29 offices across 17 countries serving 50,000 customers

LINK founded and stock exchange listed in Norway

Adjusted EBITDA NOKm

2	March 2024

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

3March 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

4March 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 50' customers in Europe

• Customers remain and increase their usage

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

Scalable business model

• Adjusted EBITDA growth versus gross profit growth

Gross profit (NOKm) - growth%

Adjusted EBITDA (NOKm) - growth%

Megatrends support digital messaging growth

• Increased adoption and traction on higher margin CPaaS solutions

Annual messaging per capita

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

5March 2024

Digital messaging moving from one-way SMS to rich conversations

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

6

LINK's s rong localized CPaaS product offering

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

Strong local precense 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

Documented M&A experience and ample financial capacity

• Historical acquisitions in Europe has generated significant excess equity value
• Bolt-onsin Europe key priority - Significant Global oppertunities

7March 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

M&A strategy for additional inorganic growth

LINK completed more than 30 acquisitions last decade

• Historical acquisitions in Europe has generated significant excess equity value

• Expertise and financial capacity to strengthen acquisition activity

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

Many bolt-ons and several level-up opportunities in Europe have priority

• More than NOK 200 million in additional EBITDA potential from M&A pipeline in Europe

• Acquisitions in Europe will drive cost synergies and enable quicker upselling potential
• Several level-up cases outside Europe in attractive markets in M&A pipeline

Smaller bolt-ons to further strengthen market position and realize synergies

8March 2024

Acquire larger companies in new and existing markets

Strong cash generation and cash position at NOK 3.4 billion

Capital allocation across bond repayment, share buyback and M&A

Pro orma Europe

L

N

K million

0

0

0

0

0

d E I			0	5	5 5
hange wor ing ca i al
a es aid
Non reccuring cos s
Net cash	low rom operating acti ities	0		0	5	5
dd bac	non recurring cos s
d	cash	low rom operations				5	5
a	e
Lease and bond
Cash low a ter cape and interest					5

High cash conversion from adjusted EBITDA

• LTM improved FCF supported by organic growth momentum

Excess cash reserves of approximately NOK 3.4 billion

• Ample capacity for accretive M&A
• Bond buybacks if satisfactory yield
• Share buybacks linked to current option incentive plans
• • Up to 17 million shares or a maximum of NOK 400 million

New conservative net debt policy at 2 - 2.5x adjusted EBITDA

• Current EUR 370 million bond maturing in December 2025
• • To be refinanced within 2 - 2.5x adjusted EBITDA range

9

March 2024

* Proforma FCF for European business - interest paid excluding bond-tap in June 2021 related to acquisition of Message Broadcast

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	March 2024