Slide 1: Q2 update
Q2 update July 17, 2020
Slide 2: Today’s presenters
Today’s presenters Erik Syrén, CEO Magnus Hansson, CFO Lime since 2001 Lime since 2015
Slide 3: This is Lime
This is Lime Nordic SaaS CRM expert with solid growth opportunities success factors * Long history of profitable growth: 2000-2019 CAGR of 18 % in net sales & CAGR of 25 % in adjusted EBITA. + SaaS as a business model: Approx. 60 % of net sales are recurring. “Helsinki + Sticky customer base: More t
Slide 4: Agenda
Agenda 3. Revenue
Slide 5: Agenda: Covid-19 impact
Agenda 1. Covid-19 impact
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Slide 7: Business development
Business development 9 Customer health checks Train consultants in sales Service level Stand ups and cool downs Keeping productivity Communication Leadership Secured bank facilities Newsletter campaign Planing new releases pars Lime Academy Business Continuity Plan Stress test cash flow Webinars Ene
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Slide 9: Agenda: Covid-19 impact
Agenda 1. Covid-19 impact
Slide 10: Several deals in the Nordics
Several deals in the Nordics Good mixture of small, midsize and large enterprises Customer concentration ‘i . SG corcvors sts Fra Enero sayy Kretslopp och vatten 9,9% G L C @ Systecon GOTEBORGS LASTBILCENTRAL BE GROUP 2018 2019 RTM 2020-06 Top 10 customers % of net sales sm Top customer % of net sal
Slide 11: Agenda
Agenda 3. Revenue
Slide 12: Increase in annual recurring revenue drives growth
Increase in annual recurring revenue drives growth ARR development (SEK Growth 19Q2-20Q2 1% 3% 24% Q22018 93.2018 Q4 2018 12019 Q22019 Q32019 4.2019 12020 22020 mmm Subscription mmm Service agreements Annual recurring revenue (ARR)
Slide 13: Transition from up-front to subscription pricing model nearly complete
Transition from up-front to subscription pricing model since 2015 is nearly complete Recurring revenue is growing rapidly Pricing mi jel transformation over time LTM net sales by revenue stream, SEKm 350 325 300 SHSSERS BEegess mExpert services License, subscription Source: Company information. Lice
Slide 14: Revenue
Revenue SEKm a Total Traction across geographies 5 growth 2% 21% € SEKm = oon 17% 16% © Y-0-Y growth (%) $ @ > 2 319.8 & Q 264,2 8 ] 3 @ 7) rm o 85,0 3 70,0 611 22019 Q2.2020 LT™ Q22019 LT Q2.2020 44,9 2587 sEKm B18 85,0 219,3 mSweden mRest of Nordics 100 e 68,9 " Growth Oo 61s 19Q2-20Q2 2 D 5 21% D
Slide 15: Agenda
Agenda 3. Revenue
Slide 16: Profit
Profit Reaching an adjusted EBITA margin of 26 % in Q2 2020 EBITA development? ‘olling EBITA and margin development” SEKm 84,5 SEKm 58,8 = - 28 38 il 2.2019 22020 LT™ Q22019 LTMQ22020 T1Q2 17Q3_ 1794 18QI 18Q2_ 18Q3_18Q4_19QI_19Q2_19Q3_19Q4 20Q1 20Q2 mmm Adjusted EBITA Adjusted EBITA-margin mms LTM
Slide 17: OPEX development
OPEX development Large majority of operating expenses related to growth in FTEs Personnel expenses development Other operating expenses development (adj.)” SEKm ‘SEKm 5% i 53,0 178,8 159,7 +13% ml 123 13,9 44a 481 922019 22020 LT Q22019 — LTM Q22020 22019 22020 LTM Q2 2019 mmm Personnel expenses —s—
Slide 18: Agenda
Agenda 3. Revenue
Slide 19: Market development Key growth drivers
Market development Key growth drivers CRM software spend in the Nordics, addressable market (SEKm) CAGR 17-23 1 Digitalization 12% 2 Shift to Cloud and SaaS 10% 3 Compliance with regulations 11% Increased process automation 4 and efficiency 12% Improved end-user experience 5 and ease-of-integration
Slide 20: Established position for further growth
Established position for further growth Several organic drivers supported by acquisition opportunities CRM market Good sales 10-12 % CAGR growth in rest of Nordics Structural market Geographical Grow sales from Platform Target selected Ample M&A growth expansion existing expansion verticals opportun
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Slide 22: Agenda
Agenda 3. Revenue
Slide 23: Financial targets
Sales growth EBITA margin Capital structure Dividend policy Financial targets “Lime’s objective in the medium term is to achieve an annual organic net sales growth above 15%” “Lime’s objective in the medium term is to achieve an annual EBITA margin above 23%" “The objective in respect of the capital
Slide 24: Q2 2020 summary
Q2 2020 summary Covid-19 impact Profitability We are affected but with our growth strategy and high engagement among the employees we have reduced the impact so far. Net sales MSEK 85 +15 MSEK (21% total growth) Adjusted EBITA margin 26 % (20 % same period last year) We keep our strategy: Investment
Slide 25: Thank you for listening!
Thank you for listening! investors.lime-technologies.com