LINK Mobility Group Holding ASA · OSL:LINK

LINK Mobility Group Holding ASA — Q4 2020 Earnings Presentation

33 slides from LINK Mobility Group Holding ASA's earnings presentation, February 2021

  1. Slide 1: Interim Report Fourth quarter 2020

    Interim Report Fourth quarter 2020

  2. Slide 2: Todays presenters

    Todays presenters Chief Executive Officer Chief Financial Officer Guillaume van Gaver Thomas Berge

  3. Slide 3: Fourth quarter 2020 highlights

    Fourth quarter 2020 highlights LINK exceeded its 2020 outlook Communicated in relation to the IPO last year Acquisition of Tismi, a rapid growing CPaaS enabler, in the Netherlands announced recently Supporting LINK’s CPaaS journey with the addition of voice solutions Enterprise continues upward tren

  4. Slide 4: LINK’s growth trajectory supported by growing tailwind trends

    LINK’s growth trajectory supported by growing tailwind trends Digitalization of economies and societies with internet penetration and connectivity Mobile first conversations between brands and consumers • Marketing volumes expected to rebound post lockdowns and expand with new use cases Mobile messa

  5. Slide 5: Deep dive into France - LINK outgrowing market by 22%

    Deep dive into France - LINK outgrowing market by 22% Netsize has become LINK Mobility France • Netsize was acquired by LINK in January 2019 • LINK Mobility France market share growing in 2020 • Through traffic consolidation and organic growth > 33% growth versus market growth of 11% LINK Mobility F

  6. Slide 6: RCS – France early adopter of new worldwide format

    RCS – France early adopter of new worldwide format Significant traction on RCS messaging in France • All operators adopted RCS by second half 2020 • RCS device ‘reach’ exhibiting strong growth through 2020 • From 7% end H1 2020 to 15% end H2 2020 LINK has connected with all operators to facilitate u

  7. Slide 7: Go-To-Market (GTM) track record

    Go-To-Market (GTM) track record Self Sign Up Partner Sales LINK has launched our SMS Brand smsapi in Sweden Finalized partner framework and application support to rollout in most LINK countries The launch is meeting all budgeted KPIs and performing well Securing best practice in LINKs localized valu

  8. Slide 8: A2P messaging market – Double digit growth

    A2P messaging market – Double digit growth Indicated trend A2P Message per inhabitant in number of A2P Messages per capita Norway early adopter of new technology CAGR: 12 % 19 % 6% 15 % 16 % 26 % 8% 15 % 18 % 6% na • Clearly most mature market, but still growing by 12% Increase 92 73 28 39 25 32 12

  9. Slide 9: LINK clear market leader in several countries

    LINK clear market leader in several countries LINK’S MARKET SHARE LINK’s market shares LINK market share >40% in Norway, Sweden, Austria and Bulgaria • LINK active in Scandinavia for two decades 69% 68% • Market leader in Bulgaria since Teracomm acquisition in 2019 • Market leader in Austria since W

  10. Slide 10: New customers win successes

    New customers win successes Customer Date Won Vertical Geography Products Skipton Building Society Q4 2020 Financial services UK Mobile Identity Protection (Voice, OTP) Alquiler Seguro SA Q4 2020 Real Estate Spain Mobile Identity Protection (KYC) Debt Collection Agency EAD Q4 2020 Financial services

  11. Slide 11: Student engagement across channels with LINK solutions

    Student engagement across channels with LINK solutions Emirates College of Technology – Innovative international university • Wanted to enhance student engagement through technology LINK launching multi-channel self-service solution for course assessment and enrollment Students able to engage throug

  12. Slide 12: LINK enters massive customer service market through partnership

    LINK enters massive customer service market through partnership Customer care conversations through messaging and CPaaS solutions Every day around 100 • Customers prefer messaging conversations to traditional telephone and e-mail billion messages are sent worldwide via • Brands available on customer

  13. Slide 13: Acquisition of Tismi in the Netherlands to close in 1Q21

    Acquisition of Tismi in the Netherlands to close in 1Q21 CPaaS enabler with high growth and national operator licenses in multiple European countries - fully operational in 4 countries Purchase price EUR 20 million on a cash and debt free basis With Tismi, LINK acquires an attractive business model

  14. Slide 14: Forward looking statement to 2024

    Forward looking statement to 2024 LINK exceeded its 2020 outlook Global CpaaS market expected to triple • Communicated in relation to the IPO last year Forward looking statement to 2024 based on strong organic growth and M&A pipeline 17 USDbn • Pro forma revenue NOK 10.000 million 12 • Proforma adju

  15. Slide 15: Financial Review

    Financial Review Fourth quarter 2020

  16. Slide 16: LINK exceeding full year 2020 outlook

    LINK exceeding full year 2020 outlook • Gross organic revenue of NOK 3.576 million at high-end LINK Mobility Group Q4 2020 FY 2020 Outlook Proforma of NOK 3.500 - 3.600 million range FY 2020 FY 2020* Gross revenue 1 031 3 576 3.500 - 3.600 Net revenue recognition impact 1) -14 -61 • Organic adj. EBI

  17. Slide 17: Group organic revenue growth of 16% driven by Enterprise segment

    Group organic revenue growth of 16% driven by Enterprise segment Total revenue NOK millions Enterprise with strong performance at 18% organic growth on track to +18% deliver on the mid to long-term goal of 20% 1 041 24 • Growth driven by go-to-market initiatives with strong performance from existing

  18. Slide 18: Organic revenue growth trending upwards in all segments

    Organic revenue growth trending upwards in all segments Organic growth per region* YoY % revenue growth Northern 23 Northern Europe Europe 20 18 • Accelerated organic growth driven by high intake of new clients and 15 upselling of more advanced solutions and products to existing clients 11 • Strong

  19. Slide 19: Group has more than 40.000 customer accounts

    Group has more than 40.000 customer accounts Customer accounts Group customer accounts increased by 8.800 in 2020 +28% 40.600 • Organic GTM strategy resulted in 3.800 new customers 5.000 31.800 3.800 • Acquisition of WebSMS added 5.000 enterprise customers Net retention remained high throughout the

  20. Slide 20: Gross profit and adjusted EBITDA growing YoY by 20% and 25% respectively

    Gross profit and adjusted EBITDA growing YoY by 20% and 25% respectively Gross Profit / Gross Margin NOK millions / percentage +20% Gross profit increased to NOK 263 million in 4Q20 (NOK 219 million) 263 12 • Organic growth contributed NOK 32 million 219 220 209 207 • M&A added another NOK 12 millio

  21. Slide 21: Consolidated income statement – Fourth quarter and FY 2020

    Consolidated income statement – Fourth quarter and FY 2020 Revenue FY 2020 at NOK 3.539 million or a growth of 22%. NOK in millions Q4 2020 Q4 2019 FY 2020 FY 2019 • Organic revenue growth FY 2020 at 18% Total operating revenue 1 041 879 3 539 2 890 Direct cost of services rendered -778 -660 -2 640

  22. Slide 22: Balance sheet – Solid position for growth and M&A agenda

    Balance sheet – Solid position for growth and M&A agenda LINK has low leverage with net debt / adjusted EBITDA of 2.7x NOK in millions Q4 2020 Q4 2019 • Net debt NOK 1.166 million • Net debt significantly reduced following IPO Non-current assets 5 929 5 254 Cash deposits 4Q20 NOK 952 million (NOK 14

  23. Slide 23: Financial position further strengthened by bond issue

    Financial position further strengthened by bond issue Senior unsecured bond issue completed on 15 December last year Group leverage – Net debt / adjusted EBITDA • EUR 200 million 5-year bond 7,0 Debt refinanced and cash deposits increased • Fixed coupon of 3,375% materially reduces annual interest p

  24. Slide 24: IPO and refinancing improved cash balances during the fourth quarter

    IPO and refinancing improved cash balances during the fourth quarter Cash flow* NOK million +52% Cash flow from operating activities NOK 161 million -6 952 • Adjusted EBITDA and release of working capital -51 161 626 Capex not related to M&A NOK 51 million 798 -551 • Go-live of new rating and billin

  25. Slide 25: Q&A

    Q&A

  26. Slide 26: Appendix

    Appendix Segment information

  27. Slide 27: Northern Europe

    Northern Europe Revenue (NOKm) +23% 352 286 269 277 272 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Gross Profit (NOKm / %) +16% 89 96 83 84 82 29.0% 31.2% 32.3% 30.2% 27.2% Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Adjusted EBITDA before group cost (NOKm / %) +27% 63 64 56 57 51 17.8% 20.8% 22.8% 20.9% 18.3% Q4 19 Q1 20 Q2

  28. Slide 28: Central Europe

    Central Europe Revenue (NOKm) +39% 252 181 179 174 162 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Gross Profit (NOKm / %) +43% 76 53 51 48 44 29.4% 26.9% 28.4% 27.9% 30.2% Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Adjusted EBITDA before group cost (NOKm / %) +34% 44 33 33 25 28 17.3% 18.0% 15.6% 18.2% 16.0% Q4 19 Q1 20 Q2 2

  29. Slide 29: Western Europe

    Western Europe Revenue (NOKm) +9% 325 300 272 262 266 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Gross Profit (NOKm / %) +4% 72 74 69 68 65 23.9% 25.4% 25.9% 24.5% 23.0% Q1 20 Q4 19 Q2 20 Q3 20 Q4 20 Adjusted EBITDA before group cost (NOKm / %) +32% 45 34 31 27 25 11.5% 11.2% 9.4% 10.3% 14.0% Q4 19 Q1 20 Q2 20 Q

  30. Slide 30: Global Messaging

    Global Messaging Revenues -1% 141 123 113 112 103 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Gross Profit (NOKm / %) +49% 17 12 13 11 11 10.1% 8.9% 10.2% 10.9% 15.2% Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Adjusted EBITDA before group cost (NOKm / %) +33% 9 7 7 5 5 6.2% 5.1% 4.2% 5.3% 8.3% Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

  31. Slide 31: Follow us

    Reiterated Outlook 2020 Follow us

  32. Slide 32: Because every communication matters

    Because every communication Reiterated Outlook 2020 matters

  33. Slide 33: Reiterated Outlook 2020

    Reiterated Outlook 2020

LINK Mobility Group Holding — Q4 2020 Earnings Presentation on 6ix