27 slides from Link Mobility Group Holding Asa's earnings presentation, Aug 14, 2024
Slide 1: Financial presentation Q2 2024
Financial presentation Q2 2024 14 August 2024
Slide 2: LINK in short
LINK in short Market leader in Europe - Global ambitions with strong track record for growth European #1 for enterprise digital messaging Revenue NOKm • Attracting and serving customers locally with local languages • Creating stickiness and upsell opportunities • Consistent strong double-digit growt
Slide 3: LINK’s recurring and growing business model
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 Megatrends support digital messaging growth • Customers remain and increase their usage • Increase
Slide 4: Q2 2024 highlights – another strong quarter
Q2 2024 highlights – another strong quarter Solid growth from high contract backlog Revenue at NOK 1,816 million • Organic growth in fixed FX at 17% • Enterprise growth at 15% with strong solid growth in Central and improvement in Northern Organic growth specification Gross profit at NOK 379 million
Slide 5: Double digit organic gross profit growth
Double digit organic gross profit growth Gross profit growth in the high end of expectations Group organic gross profit development (NOKm) Enterprise segments delivering growth of 13% • Strong organic growth momentum in Western Europe of 16% driven by higher demand and CpaaS offerings and volume gro
Slide 6: New contract wins – increased demand for OTT channels
New contract wins – increased demand for OTT channels Good momentum on both traditional SMS and advanced CPaaS solutions in the second quarter New agreements signed in quarter Gross profit contribution from new contract wins NOKm Paa P LINK signed 802 new and expanding agreements in Q2 24 Continued
Slide 7: High growth for CPaaS and OTT channels
High growth for CPaaS and OTT channels Strong market demand for richer OTT channels positively impacts closed won contracts Key metrics per product – Q2 closed won deals: OTT • In erne dis ribu ed c annels li e , W a ’s and Viber • Main use cases: Customer care and Marketing • Margin level between 2
Slide 8: RCS support on iPhone to drive increased demand
RCS support on iPhone to drive increased demand LINK expect increased demand for RCS when all consumers can be reached on the channel Apple iOS penetration across LINK’s main markets* RCS support expected on iOS autumn 2024 Norwa • iOS RCS support will be available starting from iOS 18 • Local opera
Slide 9: La Roche Posay skin care assistant through RCS and bot
La Roche Posay skin care assistant through RCS and bot Use case objectives • La Roche Posay offers a digital skincare assistant to help consumers understand the products adapted to their skin type and need • A voucher is offered at the end of the conversation in relation to the chosen product • The
Slide 10: Executing on M&A pipeline in Europe
Executing on M&A pipeline in Europe Ambition for inorganic growth to add 10% of adjusted EBITDA annually EZ4U acquired in Portugal Prioritized targets progressing • Founded in 2010 with HQ in Porto • Pipeline of 10 target whereof 3 targets in DD process • Serving >500 clients on SMS, OTT, e-mail, IV
Slide 11: LINK positioned for strong FCF growth in 2024 and beyond
LINK positioned for strong FCF growth in 2024 and beyond LINK’s European business 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 • Net debt not exceeding 2 - 2
Slide 12: Financials
Financials Q2 2024 14 August 2024
Slide 13: First half 2024 delivered in high end of expectations
First half 2024 delivered in high end of expectations Double digit growth in gross profit and adj.EBITDA Organic gro th in stable currency evenue gro th ross pro it gro th Ad E I A gro th 13 Interim Report Q2 2024
Slide 14: Reported revenue YoY growth 17%
Reported revenue YoY growth 17% Revenue growth supported by strong volume growth existing and new clients Reported revenue NOKm Organic revenue growth of 17% in fixed FX • Enterprise segments grew 15% organically in fixed FX • Northern Europe growing 5% with improved growth trend QoQ • Central Europ
Slide 15: Reported gross profit YoY growth 12%
Reported gross profit YoY growth 12% Solid enterprise growth of 12% with contribution from all regions Gross profit NOKm Organic gross profit growth of 12% in fixed FX • Enterprise segments delivered 13% organic growth • Northern growth of 10% - QoQ increase from topline and SaaS licenses • Central
Slide 16: Reported adjusted EBITDA YoY growth 16%
Reported adjusted EBITDA YoY growth 16% Adjusted EBITDA growth in stable currency of 16% and above gross profit growth of 12% Adjusted EBITDA NOKm Organic growth in adjusted EBITDA 16% in fixed currency • Adjusted EBITDA growth of NOK 25 million YoY in fixed currency • NOK 42 million from organic gr
Slide 17: P&L – Interest costs on bond partly offset by deposit interest
P&L – Interest costs on bond partly offset by deposit interest Non-recurring costs of NOK 12 million • M&A costs of NOK 2 million • Costs related to restructuring NOK 5 million • Share-option cost of NOK 5 million • Quarterly LTIP options cost of NOK 3 million including positive correction of NOK 3
Slide 18: Solid balance sheet supporting further growth
Solid balance sheet supporting further growth Receivables related to US sale reclassified to short-terms receivables from Q2 24 • Non-current assets increase yoy from own bonds purchased • Trade and other receivables includes NOK 397 million related to US divestment • eller’s credi N K million a abl
Slide 19: Cash flow impacted by working capital build in the quarter
Cash flow impacted by working capital build in the quarter Working capital expected to normalize over time L NOK millions* Cash conversion in Q2 negatively impacted by WC Ad E I A • Working capital impacted by normal timing effects ange wor ing ca i al axes aid LTM free cash flow NOK 270 million – n
Slide 20: Buy back programs progressing as planned
Buy back programs progressing as planned Acquired 20% of own bond and finalized 60% of share-buy back program wn bonds Own bonds holdings currently at EUR 74 million • Representing 20% of total outstanding bond • Average price on buy backs at 98% • Attractive yield of 4.6% compared to EUR deposit in
Slide 21: Appendix
Appendix Q2 2024 14 August 2024
Slide 22: Northern Europe
Northern Europe Org.growth 5% Revenue (mNOK) Org.growth 10% Gross Profit (mNOK) Org.growth 15% Adj.EBITDA (mNOK) 22 Interim Report Q2 2024
Slide 23: Central Europe (restated)
Central Europe (restated*) Org.growth 31% Revenue (mNOK) Org.growth 14% Gross Profit (mNOK) Org.growth 11% Adj.EBITDA (mNOK) 23 Interim Report Q2 2024 *Netherlands moved from central Europe to Western Europe from Q1 2024 – historical segment financial have been updated accordingly
Slide 24: Western Europe (restated)
Western Europe (restated*) Org.growth Growth in fixed ex.M&A currency incl. 11% M&A Revenue (mNOK) Org.growth ex.M&A 16% Gross Profit (mNOK) Org.growth ex.M&A 26% Adj.EBITDA (mNOK) 24 Interim Report Q2 2024 c uired rganic *Netherlands moved from central Europe to Western Europe from Q1 2024 – histor
Slide 25: Global Messaging
Global Messaging Org.growth 22% Revenue (mNOK) Org.growth 4% Gross Profit (mNOK) Org.growth (1%) Adj.EBITDA (mNOK) 25 Interim Report Q2 2024
Slide 26: Recurring revenue supported by high NRR and low churn
Recurring revenue supported by high NRR and low churn Customers stay with LINK and increase their usage Net retention rate (NRR) and customer churn (%) Net retention stable well above 100% • Supporting growth in recurring revenue Customer churn consistently low • Enterprise churn below 2% over time
Slide 27: Q&A
Q&A linkmobility.com/investors 14 August 2024