Link Mobility Group Holding Asa · OSL:LINK
Link Mobility Group Holding Asa — Q4 2021 Earnings Presentation
37 slides from Link Mobility Group Holding Asa's earnings presentation, 2022
Slide 1: Interim Report Fourth quarter 2021
Interim Report Fourth quarter 2021 Guillaume Van Gaver, CEO Thomas Berge, CFO
Slide 2: LINK facts and figures
LINK facts and figures Global CPaaS Player in High Growth Markets 2000 #1 FOUNDING YEAR MESSAGING PLAYER IN EUROPE >14 bn 30 MESSAGES SENT IN 2021* OFFICES GLOBALLY 19 ~47 k Revenue NOKm Adjusted EBITDA NOKm COUNTRIES IN OUR GROUP HAPPY CLIENTS WORLDWIDE* 4.6 bn 619 m NOK LTM revenue Q4 21* NOK LTM
Slide 3: Fourth quarter report 2021 highlights
Fourth quarter report 2021 highlights Global CPaaS Player in High Growth Markets Revenue grew 25% to NOK 1,297 million. ● 16% organic revenue growth in fixed currency supported by a larger contribution from Global Messaging Gross profit increased 37% to an all-time high of NOK 360 million. ● Gross m
Slide 4: Status 2021 - First full year as listed entity
Status 2021 - First full year as listed entity Global CPaaS Player in High Growth Markets Reported revenue grew 25% to NOK 4.4 billion. Pro forma revenue NOK 4.6 billion ● Pro forma revenue growth in fixed currency 16% Adjusted EBITDA growth of 42% to NOK 557 million. Pro forma adjusted EBITDA NOK 6
Slide 5: Forward-looking statement
Forward-looking statement Global CPaaS Player in High Growth Markets 2022 2024 Confidence in 14-17% revenue growth for full year of 2022 Pro forma revenue NOK 10 billion ● Growth rates may vary between quarter as 2021 was impacted by ● 20% long-term organic growth in mature market lockdowns, resulti
Slide 6: Message Broadcast positioned for strong rebound in 2022
Message Broadcast positioned for strong rebound in 2022 Message Broadcast (MB) has a strong position in the US utilities vertical ● Offering tailored messaging solutions and critical events messaging as required by the regulator ● Utilities face huge fines in case of non-compliant communication West
Slide 7: LINK won Inditex Group RFP; Message Broadcast wins another utility
LINK won Inditex Group RFP for providing mobile communications services Message Broadcast wins another utility customer on the East Coast Message Broadcast (MB) signed a large new utility customer in the new year ● Utility has more than 3 million customers ● Market capitalization close to USD 20 bil
Slide 8: LINK awarded "Best RCS Provider" by Juniper Research
LINK awarded “Best RCS Provider” by Juniper Research Global CPaaS Player in High Growth Markets LINK was awarded ‘Best RCS Provider’ Platinum Winner by Juniper Research ● Juniper Research is an established European provider of business intelligence ● Platinum Winner award presented at their 2022 “Fu
Slide 9: LINK product development ahead of market adoption
LINK product development ahead of market adoption LINK CPaaS products The CPaaS industry is continuously evolving ● LINK develops products to match commercial market demand ● Given incremental market adoption of new solutions LINK is ahead PROGRAMS TOOLS ● Innovation driven by global tech customers’
Slide 10: Large customer base secures recurring revenue and positions for upside
Large customer base secures recurring revenue and positions for upside Customer accounts 47,200 active customer accounts ● Organic GTM strategy registered 2,700 new customer accounts ● Customer churn remain very low at 1% securing recurring revenue ● M&A added 3,850 customer accounts Large and growi
Slide 11: Specsavers selected LINK to transform its conversational messaging
LINK won Inditex Group RFP for providing mobile communications services Specsavers selected LINK to transform its conversational messaging LINK has signed a 5-year agreement with Specsavers ● A leader in optometry, audiology, and healthcare services ● Agreement to transform their digital customer co
Slide 12: Healthcare fast-tracking digitalization
Healthcare fast-tracking digitalization CPaaS solutions bring significant benefits to the healthcare industry ● Increased patient satisfaction with instantly available information on preferred channel ● Reduced patient waiting times through better use of healthcare professionals time ● Appointment r
Slide 13: Still huge growth potential for digital messaging in Europe
Still huge growth potential for digital messaging in Europe Adoption of digital messaging* varies greatly in Europe Norway and Sweden early adopters ● Markets partly developed by LINK during past decades Growth % Increase UK advanced within digital messaging marketing Most European countries still e
Slide 14: Acquisitions of solutions companies leverage LINK's large customer base
Acquisitions of solutions companies leverage LINK’s large customer base LINK with proven track-record in acquiring and integrating solutions companies ● LINK searches for technically advanced, commercial immature companies ● Reasonable multiples and technically advanced solutions ● Highly accretive
Slide 15: Financial Review
Financial Review Fourth quarter 2021
Slide 16: Reported organic revenue growth of 16% in fixed currency
Reported organic revenue growth of 16% in fixed currency Total reported revenue NOK millions Total growth Organic growth Reported revenue grew 25% to NOK 1,297 million ● Reported growth includes effect from acquired entities Reported organic revenue growth of 16% in fixed currency ● Organic growth e
Slide 17: Organic pro forma total revenue growth of 15% in fixed currency
Organic pro forma* total revenue growth of 15% in fixed currency Total group (fixed currency) Total pro forma revenue growth of 15% in fixed currency ● Higher Global Messaging volume positively impacting total pro forma revenue growth Enterprise pro forma revenue growth of 11% excluding the US ● Nor
Slide 18: Message Broadcast underdelivered in H2 21 due to off-trend weather patterns
Message Broadcast underdelivered in H2 21 due to off-trend weather patterns LTM revenue (USDm) Message Broadcast has two revenue streams ● Stable revenue from messaging solutions - transactions, licenses, professional services ● Volatile revenue from critical events messaging which is more weather r
Slide 19: All-time high gross profit
All-time high gross profit Reported gross profit NOK millions / percentage All-time high gross profit of NOK 360 million, a growth of 37% ● Organic gross profit growth in fixed currency of 11% ● Organic growth driven by the Enterprise segment ● Contribution from consolidated acquired entities NOK 83
Slide 20: All-time high adjusted EBITDA
All-time high adjusted EBITDA Reported adjusted EBITDA NOK millions All-time high adjusted EBITDA of NOK 176 million, a growth of 47% ● Organically adjusted EBITDA growth of 15% in fixed currency ● Negative FX effect of NOK 9 million YoY due to appreciation of the NOK ● Contribution from consolidate
Slide 21: LINK capturing market share and market position in high growth CPaaS market
LINK capturing market share and market position in high growth CPaaS market LTM Q4 20 LTM Q4 21 Illustrative LINK footprint LTM Q4 21 Reported¹ Closed All entities All entities All entities NOKm acquisitions ² (Reported (reported (fixed currency) currency) currency) Revenue 4,410 194 4,605 4,146 4,8
Slide 22: Steady growth in pro forma figures in fixed currency
Steady growth in pro forma* figures in fixed currency Total group pro forma (fixed currency) LTM pro forma figures materially negatively impacted by FX especially in H2 21 ● LTM adjusted EBITDA as of Q4 21 was NOK 37 million lower due to FX compared to same period last year Pro forma LTM gross profi
Slide 23: Reported Income statement – Fourth quarter 2021
Reported Income statement – Fourth quarter 2021 Revenue of NOK 1,297 million, an increased of 25% YoY Gross profit of NOK 360 million, an increased of 37% YoY Adjusted EBITDA of NOK 176 million, an increase of 47% YoY Non-recurring costs of NOK 55 million ● Share option cost NOK 25 million down from
Slide 24: Balance sheet
Balance sheet Non current assets increased due to acquisitions ● Purchase Price Allocations (PPA) of acquisitions closed in Q4 21 ● A2P company Altiria in Spain ● Solution company Xenioo in Italy Cash on balance sheet NOK 844 million Equity NOK 5,069 million and equity percentage 48% Receivables and
Slide 25: LINK generated NOK 450 million in cash flow from core operations last year
LINK generated NOK 450 million in cash flow from core operations last year Reported free cash flow Adjusted cash flow from operations NOK 453 million for 2021 ● Reported cash flow from operations include M&A related expenses ● Free cash flow generated after capex and interest of NOK 203 million Wor
Slide 26: Q&A
Q&A
Slide 27: Appendix: Net retention rate (NRR)
Appendix Net retention rate (NRR)
Slide 28: Group net retention rate at 112%
Group net retention rate at 112% Pro forma net retention rate in fixed currency Enterprise clients1 Group2 Group pro forma net retention rate of 112% in Q4 21 in fixed currency ● Higher Global Messaging wholesale volumes increased group net retention above the expansion reported for the enterprise s
Slide 29: Appendix: Segment information
Appendix Segment information
Slide 30: Northern Europe
Northern Europe Revenue (NOKm) Org.growth +18% Gross Profit (NOKm / %) Org.growth +13% Adjusted EBITDA before group cost (NOKm / %) Org.growth +9% 20.8% 22.8% 20.9% 18.3% 19.6% 30
Slide 31: Central Europe
Central Europe Revenue (NOKm) Org.growth +9% Gross Profit (NOKm / %) Org.growth +13% 31.2% 32.3% 30.2% 27.2% 30.1% Adjusted EBITDA before group cost (NOKm / %) Org.growth +36% 20.8% 22.8% 20.9% 18.3% 19.6% 31
Slide 32: Western Europe
Western Europe Revenue (NOKm) Org.growth +3% Gross Profit (NOKm / %) Org.growth +7% 31.2% 32.3% 30.2% 27.2% 30.1% Adjusted EBITDA before group cost (NOKm / %) Org.growth +5% 20.8% 22.8% 20.9% 18.3% 19.6% 32
Slide 33: North America
North America Revenue (NOKm) Gross Profit (NOKm / %) 31.2% 32.3% 30.2% 27.2% 30.1% Adjusted EBITDA before group cost (NOKm / %) 20.8% 22.8% 20.9% 18.3% 19.6% 33
Slide 34: Global Messaging
Global Messaging Revenue (NOKm) Org.growth +67% Gross Profit (NOKm / %) Org.growth +6% 31.2% 32.3% 30.2% 27.2% 30.1% Adjusted EBITDA before group cost (NOKm / %) Org.growth +0% 20.8% 22.8% 20.9% 18.3% 19.6% 34
Slide 35: Follow us
Reiterated Outlook 2020 Follow us
Slide 36: Because every communication matters
Because every Reiterated Outlook 2020 communication matters
Slide 37: link mobility
o® link mobility
LINK Mobility Group Holding — Q4 2021 Earnings Presentation on 6ix