LINK Mobility Group Holding ASA · OSL:LINK
LINK Mobility Group Holding ASA — Q3 2020 Earnings Presentation
25 slides from LINK Mobility Group Holding ASA's earnings presentation, 2020
Slide 1: Interim Report Third Quarter 2020
Interim Report Third Quarter 2020
Slide 2: Todays presenters
Todays presenters Chief Executive Officer Chief Financial Officer Guillaume Van Gaver Thomas Berge
Slide 3: Third Quarter 2020 - Highlights
Third Quarter 2020 - Highlights Enterprise messaging volume growing +13% despite impact of Covid -19 Diverse footprint and use cases proves resilience Strong reported revenue growth of +19% 15% Organic growth from existing footprint Adjusted EBITDA growth of +14% 11% organic growth Solid performance
Slide 4: LINK Mobility's growth trajectory is supported by positive underlined trends
LINK Mobility’s growth trajectory is supported by positive underlined trends Economic a nd s ocie ta l digita liza tion Mobile firs t from bra nds to cons ume rs a nd cons ume rs to bra nds Me s s a ging is be coming a n indis pe ns a ble pa rt of cus tome r communica tion a nd the numbe r of cha nn
Slide 5: Covid-19 has an impact but also drives adoption and new use cases
Covid -19 has an impact but also drives adoption and new use cases Enterprise messaging volume growth yoy % Consumers are active across a plethora of messaging and media channels (e.g. social media, instant messaging etc.) 22 20 • Strong growth in “notifications” use cases for information on Covid m
Slide 6: Strong demand for OTT channels requiring a full CPaaS ecosystem
Strong demand for OTT channels requiring a full CPaaS ecosystem Unique Active Us e rs Consumers are active across many messaging and media channels Consumer Engagement Platforms (e.g. social media, instant messaging etc.) SMS 4.0bn • Diffe re nt cha nne ls s e rve diffe re nt purpos e s a nd ha ve v
Slide 7: Link is increasing its investments in its innovative and modular CPaaS platform
Link is increasing its investments in its innovative and modular CpaaS Platform Customer Local Enterprise SSU Reseller Dev Support Portals Portals Portal Portal Portal Portal Portal Marketing & Reference LINK Rapid Exp. Innovation Marketplace SDKs Architecture Guidance Innovation “App Store” Intelli
Slide 8: Go-To-Market Evolution in motion
Go-To-Market Evolution in motion LINK Mobility Go ‐To‐Market target initiative Current H1 2021 investments Enterprise + Partner SSU Enterprise +SSU Enterprise + SSU + Partner Enterprise Potential M&A targets
Slide 9: Covid-19 has an impact but also drives adoption and new use cases
Covid -19 has an impact but also drives adoption and new use cases Number Of A2P Messages Per Capita (1) • Enterprises are accelerating their digital transformation to Norway 362 better communicate with customers on their chosen Germany 37 Potential Volume Increase platform, increasing customer enga
Slide 10: Successful in Winning New Customers
Successful in Winning New Customers Customer Da te Won Ve rtica l Ge ogra phy P roducts Q3 2020 Banking Norway Messaging Gateway Q3 2020 Defense UK Voice & Account Takeover Protection (ATP) Q3 2020 Marketing Group Mobile Marketing (Singapore /Hong Kong) Q3 2020 Finance Spain SIM Swap Protection Q3 2
Slide 11: Banques populaires & Caisses d'Epargne: 3rd largest French bank
Banques populaires & Caisses d’Epargne : 3 rd largest French bank (30 million customers) 2020 traffic YTD more than doubled vs 2019 traffic YTD Us e ca s e s – 100% notifica tion, no ma rke ting tra ffic Tra ffic incre a s e from: • Ne w s e rvice s • Imple me nta tion of P S D2 (90-da y pa s s word
Slide 12: websms acquisition closed 16th Nov - Largest acquisition in LINK's history
websms acquisition closed16 th Nov - Largest acquisition in LINK's history! Largest Messaging Company in Austria LTM re ve nue of 15mEUR re ve nue a nd LTM a djus te d EBITDA of 5.1mEUR a s of J une 30 th 2020 Incre a s ing LINK’s le a ding pos ition in the DACH Re gion S trong ma na ge me nt te a m
Slide 13: Financial Review
Financial Review
Slide 14: Key metrics: Solid Growth Revenue and profitability
Key metrics: Solid Growth Revenue and profitability Reported revenue growth of 19% and 15% organic growth Group revenue S trong m om e ntum on ne t re te ntion of 117% on e nte rpris e clie nts NOK m illions Covid im pa cte d ne ga tive ly m obile m a rke ting m e s s a ge s a nd m obile +19%
Slide 15: Double digit volume growth and Robust Net Retention Rate
Double digit volume growth and Robust Net Retention Rate Growth in num be r of cus tom e rs a ccounts with 2000 Customer accounts from the s e cond qua rte r of 2020 of which 1500 de rive s from s e lf-s ign on s olutions +6% 35.000 The volunta ry churn of a ggre ga tor tra ffic in S pa in 33.00
Slide 16: Consolidated income statement
Consolidated income statement NOK in millions Q3 2020 Q3 2019 YTD 2020 YTD 2019 FY 2019 Revenue YTD of NOK 2.545 million Total operating revenue 828 697 2 545 2 033 2 933 Direct cost of services rendered -621 -518 -1 909 -1 499 -2 180 Re ve nue growth YTD of 25% whe re of 19% Gross Profit 207 17
Slide 17: Acquisition of websms - largest deal in LINKs history
Acquisition of websms - largest deal in LINKs history! Operations in Austria, Switzerland and Germany a nd more tha n 5000 e nte rpris e clie nts Agre e d e nte rpris e va lue of EUR 53.8 million 60 – 30 -10 pe rce nt Ca s h – LINK s ha re s – Es crow s e ttle me nt LTM a djus te d EBITDA of 5.1 mil
Slide 18: Northern Europe – solid growth in revenue and profitability
Northern Europe – solid growth in revenue and profitability Revenue (NOKm) Solid volume growth momentum from large NOK millions clients driving 20% revenue growth Client mix effects towards larger clients +20% impacts gross margin 286 269 277 272 226 Scalable business model drives strong growt
Slide 19: Central Europe – solid growth in revenue and profitability
Central Europe – solid growth in revenue and profitability Revenue growth negatively impacted by Covid Revenue (NOKm) NOK millions effects with lower volumes from smaller retail +13% clients and decline in direct carrier billing 202 193 187 165 182 Strong volume growth within logistics and e - 8
Slide 20: Western Europe – solid growth in revenue and profitability
Western Europe – solid growth in revenue and profitability Revenue (NOKm) Organic revenue growth of 17% driven by NOK millions strong growth momentum from existing clients and upselling activities +24% Net retention rate of 114% in Q3 2020 300 272 262 266 215 Gross margin expansion excluding M
Slide 21: Global Messaging – solid growth in revenue and profitability
Global Messaging – solid growth in revenue and profitability Revenues NOK millions +14% 141 123 113 103 90 Healthy growth in Global OTP traffic with good margin development Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Consciously moving away from highly Gros s Profit & Ma rgin competitive routes and refocusing
Slide 22: Cash Flow: Healthy Cash Conversion Metrics
Cash Flow: Healthy Cash Conversion Metrics Cash flow last quarter • Net cash from operating activities at NOK NOK m illion 65 million +8% -18 626 • CAPEX at NOK 18 million -2 -4 8 65 • Cash EBITDA at NOK 44 million • Large interest payment of NOK 97 million 578 due early October which will decrease
Slide 23: Financial Position – IPO proceeds utilized for debt repayment
Financial Position – IPO proceeds utilized for debt repayment Cash position change from draw-down on loa n fa cilitie s a nd working ca pita l improve me nt NOK in millions Q3 2020 Q3 2019 Post IPO (est) FY 2019 Long-te rm lia bilitie s incre a s e from dra wdown on loa n fa cilitie s Non-curren
Slide 24: Reiterated Outlook 2020 – excluding recent acquisition of websms
Reiterated Outlook 2020 – excluding recent acquisition of websms Revenues Gross Margin Adj. EBITDA Other 24.2% Capex: 3.500m – 360m – – 95m – 3.600m NOK 370m NOK 24.7% 105m NOK 1) The 2020 profit forecast is prepared by the Company’s management using its best estimate and judgment based on experienc
Slide 25: Reiterated Outlook 2020 Q&A
Covid-19 has an impact but also drives adoption and new use cases Reiterated Outlook 2020 Q&A
LINK Mobility Group Holding — Q3 2020 Earnings Presentation on 6ix