Slide 1: Q4 update
Q4 update Long-term profitable growth — before, during and after the pandemic February 16, 2021
Slide 2: Today’s presenters
Today’s presenters Erik Syrén, CEO Nils Olsson, COO Lime since 2001 Lime since 2006
Slide 3: This is Lime
This is Lime Nordic SaaS CRM expert with solid growth opportunities success factors * Long history of profitable growth: 2000-2020 CAGR of 19 % 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
Slide 5: Agenda
Agenda
Slide 6: Slide 6
Slide 7: Welcome new Limerz!
Slide 8: Substantially growing organization
Substantially growing organization while increasing employee satisfaction ( Lime is an attractive employer > and ~45 began in Aug ~95% have academic Degree >50% are women, ~28 employees began in Jan| w On-boarding limeO = Kick-off - Follow-up education x2 - Graduation! - Personal development plan =
Slide 9: Impact
Impact * Order intake less than expected from new customers during mid-March to May. * Many of our customers decided to have extended holidays. * Reduced sales to new customers. * The business climate is getting better and better. * Good profitability during the whole year.
Slide 10: Agenda
Agenda
Slide 11: Several deals in the Nordics
Several deals in the Nordics Good mixture of small, midsize and large enterprises @misa — éneroie Adduife? Sar bob [pall] bygger fellesskap 9,9% 2018 2019 2020 Top 10 customers % of net sales sm Top customer % of net sales
Slide 12: Agenda
Agenda 3. Revenue
Slide 13: Increase in annual recurring revenue drives growth
Increase in annual recurring revenue drives growth ARR development (SEK Growth 19Q4-2094 14% 20% 93.2018 Q42018 12019 Q22019 Q32019 Q4 2019 12020 22020 Q3.2020 Q4 2020 mmm Subscription mmm Service agreements Annual recurring revenue (ARR)
Slide 14: Transition from up-front to subscription pricing model since 2015 is nearly complete
Transition from up-front to subscription pricing model since 2015 is nearly complete Recurring revenue is growing rapidly Pricing model transformation over time LTM net sales by revenue stream, SEKm 378 380 CRM system mainly as subscription ¥ Increased sales team to drive further ARR for subscriptio
Slide 15: Revenue
Revenue SEKm x Total \a% ys Traction across geographies Oo growth € SEKm 8 Crgenie 9% 14% © Y-0-Y growth (%) E @ > 2 338,7 sox] ie 289,7 & 3 @ 7) 6) 818 93,1 Zz Hy 637 Q4 2019 Q4 2020 LTM Q4 2019 LTM Q4 2020 551 : 275,0 SEKm 93,1 mSweden mRest of Europe 85,0 234,6 i 75,6 Growth oO 689 69.9 70,0 8,0
Slide 16: Agenda
Agenda 3. Revenue
Slide 17: Profit
Profit Reaching an adjusted EBITA margin of 31% in Q4 2020 EBITA development? ‘olling EBITA and margin development” SEKm SEKm 99,3 66,8 SEKI 29,3 : i Q4 2019 Q4 2020 LT Q42019 LTM Q4.2020 T7Q4 QI 18Q2_18QS_18Q4_19QI_ 19Q2_-19Q3_19Q4_—-20Qi_- 20Q2_-20Q8_—-20Q4 mmm Adjusted EBITA = —m— Adjusted EBITA-
Slide 18: OPEX development
OPEX development Large majority of operating expenses related to growth in FTEs Personnel expenses development Other operating expenses development (adj.)” SEKm SEKm | 4% 54, 526 184,7 1699 7% a 15,6 145 465 48,7 Q4 2019 Q4 2020 LTM Q4 2019 LTM Q4 2020 Q4 2019 Q4 2020 LTM Q4 2019 LTM Q4 2020 mmm Per
Slide 19: Agenda
Agenda 3. Revenue
Slide 20: New financial targets
Sales growth EBITA margin Capital structure Dividend policy New financial targets “Lime’s objective in the medium term is to achieve an annual net sales growth above 18%" “Lime’s objective in the medium term is to achieve an annual EBITA margin above 25%” “The objective in respect of the capital str
Slide 21: Financial targets
Sales growth EBITA margin Capital structure Dividend policy Financial targets “Lime’s objective in the medium term is to achieve an annual net sales growth above 18%" “Lime’s objective in the medium term is to achieve an annual EBITA margin above 25%” “The objective in respect of the capital structu
Slide 22: Agenda
Agenda
Slide 23: Q4 2020 summary
Q4 2020 summary Profitability New financial targets We continue to invest in growth. During the fourth quarter, we invested in sales and marketing, recruitment (25 empl) and product development. Net sales MSEK 93,1 +113 MSEK (14 % total growth Q4 and 17 % total growth 2020) Adjusted EBITA margin 31%
Slide 24: Thank you for listening!
Thank you for listening! investors.lime-technologies.com