Slide 1: Q3 update
Q3 update October 22, 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: • • • •
• • • •
Slide 8: Agenda
Agenda
Slide 9: Several deals in the Nordics
Several deals in the Nordics Good mixture of small, midsize and large enterprises Customer concentration Karlshamn e Ishavskraft ©&#ergl Gotene IN sdlvesborg Elforening energi + 200 SME customers 2018 2019 RTM 2020-09 Top 10 customers % of net sales m Top customer % of net sales
Slide 10: Agenda: Revenue
Agenda 3. Revenue
Slide 11: Increase in annual recurring revenue drives growth
Increase in annual recurring revenue drives growth ARR development (SEK Growth 19Q3-20Q3 12% 3% 7% Q3 2018 Q4 2018 12019 Q22019 Q32019 4.2019 12020 22020 Q3.2020 mmm Subscription mmm Service agreements Annual recurring revenue (ARR)
Slide 12: 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 wes yae BSsgssg mExpert services License, subscription Source: Company information. 16Q4 T7Q 170
Slide 13: Revenue
Revenue SEKm Total im es Traction across geographies growth ° a rr) Cc © € SEKm Q Crgenie 40% 14% © Y-0-Y growth (%) 8 @ © 327,4 ze) 276,8 n 8 @ 8 @ 7) rm 2 68,0 75,6 62,4 Q3 2019 3.2020 LT™Q32019 —- LTM.Q3 2020 a8 265,0 85,0 227,3 SEKm mSweden mRest of Nordics 639 © -69,9——-70,0 > = [om ie D fo} oO
Slide 14: Agenda: Profit
Agenda 3. Revenue
Slide 15: Profit
Profit Reaching an adjusted EBITA margin of 33 % in Q3 2020 EBITA development? ‘olling EBITA and margin development” SEKm 89,9 62,5 SEKm 24,7 19,3 i Q3 2019 Q3 2020 LTM Q3 2019 LTM Q3. 2020 7Q3 17Q41BQT. 18Q2_18QS_—18Q4_19QT_ 19Q2_ 19Q3_19Q4_—-20Q1_—- 20Q2_—- 2098 mmm Adjusted EBITA = —m— Adjusted E
Slide 16: OPEX development
OPEX development Large majority of operating expenses related to growth in FTEs Personnel expenses development Other operating expenses development (adj.)” SEKm ‘SEKm 1% | 53,2 53,6 182,5 165,4 — 18% a 127 10,4 36,3 40,0 a Q3 2019 Q3 2020 LTM Q3 2019 LTM Q3 2020, Q3 2019 Q3 2020 LTM Q3 2019 LTM Q3 2
Slide 17: Agenda
Agenda 3. Revenue
Slide 18: Substantially growing organization
Substantially growing organization while increasing employee satisfaction ~25 employees began in Jar| . and ~45 began in Aug On-boarding limeO - Kick-off ~95% have academic - Follow-up education x2 Degree - Graduation! - Personal development plan ~60% are women = Start in January and August promoter
Slide 19: Lime BI
Lime BI
Slide 20: 15,36 MSEK won this year (Lime BI)
15,36 MSEK Won éealsthsyear 1,54 MSEK Lime BI
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Slide 23: Scope: Denmark
cope Denmark
Slide 24: Acquisition rationale
Acquisition rationale 1 Strengthen product offering and value proposition 2 Gather competence and resources 3 Cross sell Lime products to new customer base 4 Geographic expansion Targets < 25% of B2B Satisfied revenue focus customers Similar Satisfied No platforms culture employees
Slide 25: Agenda
Agenda 3. Revenue
Slide 26: 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 27: Q3 2020 summary
Q3 2020 summary Covid-19 impact Profitability Order intake was less than expected in Q2, deferral of the first invoice and extended holidays affected the growth in Q3. Net sales MSEK 76 +8 MSEK (11 % total growth and 18 % total growth LTM) Adjusted EBITA margin 33 % and 27,5 % LTM (28 % same period
Slide 28: Thank you for listening!
Thank you for listening! investors.lime-technologies.com