LINK Mobility Group ASA

Den store selskapskvelden 6.juni 2018

Arild E.Hustad CEO What does Link do? Link makes businesses mobile across all LINK Mobility messaging platforms

How? Linking businesses to consumers, – the undisputed, sending 6 billion B2C messages in 2017, reaching +200 million unique mobile users on behalf of more than market leading mobile 16,500 customers Where? Link is in 15 European countries, and the market leader in in the Nordics, messaging and solution Germany, Spain and Poland

What next? Execute ambitious M&A and organic growth strategy, attain scaling synergies provider and drive profitability

Copyright 2017 LINK Mobility 2 LINK Mobility key figures 2018 outlook 15 revenue countries with 2.7bn (54% growth) … 18 leading positions … 1 EBITDA … acquisitions 1 (14.8% margin) 400m since 2014 … 1 1 …

… 1 1

320 >17,000 24% 1 customers average 1 employees organic 1 across 15 growth L8Q countries 1) Pro forma guidance for 2018 revenue and EBITDA, including full year effect of acquisitions. Revenue growth relates to growth versus 2017 pro forma figures. The above outlook for 2018 is calculated on LINK’s best estimate based on information available to LINK, and views and assessment of LINK, as of the date of this report. LINK’s growth assumptions may deviate from the outcome resulting in material or immaterial deviations from the outlook. Further, LINK’s assumption relating to successfully acquire further businesses during 2018 is to a great extent outside the control of LINK. LINK’s ability to successfully acquire new businesses at fair value, or at all, could materially affect the outlook figures correspondingly. Investors must therefore make their own calculation in relation to valuing LINK based on their own analysis and judgement Copyright 2017 LINK Mobility 3 Successfully LINKing enterprises with consumers

Appointments …but businesses are struggling to navigate through the increased complex mix of Polls …revenue devices, platforms, technologies and regulations growth… Loyalty programs …customer Parcel interaction & notifications loyalty… Enterprise use Alerts mobile solutions to increase… …customer Chat satisfaction…

Payments

…cost Updates Link provides a platform agnostic, savings… integrated messaging solution that seamlessly finds the most efficient Invoices communication platform to fit the customer’s requirements

Product description Business model Share of revenues1 COGS

. Enriched mobile . Monthly messaging . Fee to mobile messaging and omni platform license fee 86% operators and 1 channel solutions . Revenue per . Double-digit growth rate other channel owners message . Recurring, scalable revenue

Mobile Mobile . Mobile payment and . Monthly license fee 14% . Limited 3 Intelligence Messaging 1 licenses . Revenue per mobile . Customer club, mobile solution transaction 2 invoice, notifications, . Recurring and sticky authentication and revenue, high margins, Mobile Joyn Solutions highly scalable

2 . Making mobile . Revenue from 2018 . Limited 3 messaging more powerful by data harvesting and analysis

Revenue growth 2013 – 2018E

NOKm 2,700

Reported revenue Estimated Proforma effect annualized M&A effect3

Estimated 1,754 organic growth

Revenue run- 2007-2012 1 294 rate end 2017

622

361 161 136

2013 2014 2015 2016 2017PF 2018 Est

1) Reported revenue growth from 2013 to 2017. Organic growth based on average organic growth across the period 2) 2018 outlook represents year-end revenue run-rate based on the assumptions of organic growth of 25% on the 2017 pro forma revenue run-rate and acquisitions representing NOK ~500m in full year revenues. Note that a term sheet to acquire SMS.it was disclosed in late January and is not included in the 2017 pro forma revenue run-rate 3) Please note that Link Mobility has signed terms sheets with SMS.it and Allterco regarding the Teracomm assets, i.e. the acquisitions are not closed Copyright 2017 LINK Mobility 6 Nordic innovation driving European sales

Early adopters Late majority

Travel Financials Retail TMT Travel Financials Retail TMT + +

Public Logistics Industry Other Public Logistics Industry Other

Norway historically been an early adopter of technology

Significant potential from Status and vertical penetration maturity of the mobile

messaging Market development in other market European countries assessed to be ~4 years behind Norway Market development in the Nordics assessed to be ~1-2 years behind Norway

Source: Management estimates

Number of mobile messages per capita (NOK)1 Market size ’17E Population2 Market potential

Norway 362 NOK ~700m 5.1m NOK ~1.3bn Spain 48 Volume increase NOK ~500m 46.4m NOK ~3bn Germany 37 NOK ~1.3bn 82.1m NOK ~11bn Denmark 213

Sweden 181

Finland 109

Poland 74 Nordics ahead in B2C messaging penetration Austria 71 compared to Europe. Substantial revenue potential France 68 from volume growth across existing Link markets Italy 54

Switzerland 48

Bulgaria 39

1) Company input and Mobilesquared Global A2P messaging traffic 2018 2) Worldometers European Countries by population 2018 (http://www.worldometers.info/population/countries-in-europe-by-population/)

Global and Western European messaging volume SMS is still the preferred and superior B2C solution

Billion messages sent per year1 98 % read rate, compared to email, Facebook and Worldwide Western Europe SMS tweets with 20%, 12% and 29%, respectively

2 381 CAGR 90% opened within 3 minutes 22% 2 127

1 923 CAGR 1 697 14% 67 Average response time 90 seconds 60 1 432 53 46 41 Reliable – independent of platform, network, device, 875 35 apps, internet access.

More than 6.1bn frequent users

Safe communication platform 17E 18E 19E 20E 21E 22E 17E 18E 19E 20E 21E 22E

Geographically diversified Low customer concentration Insignificant churn

Revenue by geography, Q4 2017 Top 30 customers percent of gross margin, 20171 Norway: Loss of recurring revenue to total revenue (%)2

Norway 29%

Germany 21%

Spain 14% 2,2% 2,3%

Sweden 10% 24% 0,6% Poland 8%

Denmark 7% 2015 2016 2017 France 5%

Finland 4%

Bulgaria 2%

Baltics 0% Link gateway solutions are Low customer concentration implemented in customer’s CRM Over 17 000 customers across and well-diversified across 15 countries in Europe system, creating high switching sectors and geography costs

LINK is the unrivalled European market leader

1 As the market leader, LINK is in a highly attractive position with several competitive advantages

 Market visibility  Broader service offering 1 1  R&D competence and technologic  Facilitating for multinational clients leadership 1  Leverage to suppliers  Technology sharing

1 1 . Significant economies of scale realised by leveraging the position as market leader with >6bn messages sent¹

1 . Attractive position towards new clients with a demonstrated track record of working with large and reputable regional and international clients . Substantial cost synergies across subsidiaries and geographical markets 1

1) Pro forma including full year effect of companies acquired in 2017

New and innovative services Next generation messaging Upgrade SMS with rich media

RCS1 Early Access Program

1) Early Access Program from Google for RCS business messaging. RCS business messaging uses RCS (Rich Communication Services) to upgrade business SMS with rich media, interactivity, branding and better analytics

Release 1.0 – Ultimo June 2018 Release 1.x – Q3 2018 • Channels: RCS via Googles RBM API, depending on coverage in Europe, Web Client • Business Information Page • Carousels of Rich Cards • Text (bi-directional) • Suggestions • Media (inbound) • Suggested actions (e.g. create calendar item, location request, phone call, …) • Media (outbound: picture, video, audio) • Mobile invoice (Release 2.0 - 2019) • Rich Cards

LINK Mobile Invoice

• Great interest for LINK mobile invoice in several of our markets; Spain, Bulgaria, Germany as well as the Nordics

• Strong growth in number of transactions

• 36 contracts signed to date and a strong salespipe of 120 prospects

Significant experience acquiring assets across W. Europe Established acquisition criteria and structure

Limited competition for targets, due to lack of . Strong local market position companies with scale and well developed . Cash positive, i.e. no turnaround cases and cash platforms flow to LINK from day one . Solid, well-diversified customer portfolios . Churn below 3% Proven value-creating . ~80% overlapping technology acquisition strategy . Strong telecom operator relationships All companies acquired have been purchased at attractive  multiples (average of ~6.2x EV/EBITDA) Typical financing structure Attractive synergy potential  utilized, driving strong margin . Historically financing has consisted of expansion 1/3 cash, 1/3 seller’s credit and 1/3 LINK Cash 1 shares shares in LINK Mobility Group ASA Proven successful  integration Seller’s . Shares and cash settled at closing Credit while sellers credit has historically had a tenor of 3 years

1) The financing structure for future acquisitions will be tailored and optimized to each specific situation

COGS savings Annual recurring One LINK Messaging • Consolidate local Platform platforms and solutions synergies of NOK • Terminate local products 50-70m from end of + and services 2019 • Joint support, operations and routing Delivered NOK 17m One LINK Services in 2017 Application Platform Plan to deliver NOK 30-40m in 2018 Capex savings • Common products and services EBITDA margin One LINIK Common • Cost efficient Bulgarian contribution of 2-3 Routing Team development hub p.p

Revenue evolution Organic growth evolution EBITDA evolution 1

Reported revenue (NOKm) Y-o-y growth Organic growth y-o-y Adjusted EBITDA (NOKm) EBITDA margin

53% 58% 43% 115% 107% 126% 129% 89% 9.1% 13.7% 8.0% 11.7% 7.3% 10.8% 10.8% 12.5%

486 61 30% 29%

25% 25% 23% 22% 20% 298 19% 281 256 32 229 30 30

125 130 17 17 111 10 10

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

1) Adjusted for costs related to acquisitions, one-off costs and share based compensation

Operating revenues (NOKm) – Revenues of NOK 467 (23% organic growth & 104% total 104% growth) 486 467

281 298 – An adjusted EBITDA of NOK 51m (10,9%) up from NOK 17 229

25% 25% 23% – 1,6 billion transactions and interaction with more than 23% 22% 205 million unique mobile phones Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 = Organical growth QonQ

– 17 000 customer and signed 658 new contracts of which Adjusted EBITDA 61 (NOKm) 384 new customers 51

– High acquisition activity 30 32

17 – Continued strong performance in all our markets 7,3% 10,8% 10,8% 12,5% 10,9%

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 = Adjusted EBITDA margin

subsidiaries as reported in first quarter in 2017. Acquired business inlude the acquisition of Didimo-Jet Group, GMS, Voicecom, Copyright 2017 LINK Mobility 20 Considerable scale advantages visible in Q1 2018

Adjusted EBITDA% development QonQ Substantial scale advantages in business model 0,2 % 1,4 % § +4.3 percentage points increased margin from scale advantages offsetting gross margin reduction of -2.0 percentage points in

10,9 % existing markets 4,3 % -2,0 % 7,3 % § High organic growth is expected to drive scale advantages going -0,3 % forward

Q1 17 GM1 pr market GM1 mix Delta OPEX Delta OPEX Margin effect Q1 18 Existing markets Group Aquired § Future acquisitions will further strengthen scale advantages functions entities Existing markets are defined as the subsidiaries as reported in first quarter in 2017. Acquired business inlude the acquisition of Didimo Adjusted EBITDA 61 (NOKm) 51 Scale advantages counteract gross margin reduction

32 § High growth from large enterprises customers drives scalability 30 further, positive gross profit and no additional OPEX 17 § Dilutes gross margin in existing markets as large enterprise

7,3% 10,8% 10,8% 12,5% 10,9% customers have lower margins than SME customers

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 § Acquired entities have lower gross margin than existing markets = Adjusted EBITDA margin subsidiaries as reported in first quarter in 2017. Acquired business inlude the acquisition of Didimo-Jet Group, GMS, Voicecom,

Low working capital requirements Low investment requirements High cash conversion

Net working capital and share of revenue1 (NOKm) Quarterly capital investments and share of revenue2 (NOKm) Cash conversion: Average last three years3

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 19,9

-2% - -4% - -6% -6% -7% -7% - 14,5 -17,9 -11% - - -14% -27,9 - 10,7 - -32,9 - 8,6 9,1 8,7 - -42,6 87% 6,9 - - -53,9 3,9 - 1,9% -62,6 1,6% - -65,7 1,4% 1,5% 1,5% 1,2% 1,0% 1,0% - - -79,3 - - Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Net working capital Share of revenue CAPEX Share of revenue

1) Net working capital: (trade receivables – trade payables – tax payables) 2) CAPEX: Investments excl. acquisitions 3) Cash conversion: Net cash flow from operations to adjusted EBITDA (average FY’15-FY’17)

LTM per. quarter, NOKm 3 2 700

1 754 1 294 € 2,700m 1 065 25% 897 +500m in Pro forma revenue organic 622 740 acquisitions 400 445 485 growth 198 236 289 361

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017Q4 2018 2015 2016 2017 Pro Organic M&A outlook forma growth 400m Pro forma EBITDA LTM Adjusted EBITDA1 evolution

LTM per. quarter, NOKm 400 25% Organic growth 209

140 25% organic growth 87 109 67 74 Acquisitions 40 48 49 51 54 52 33 3%-p margin improvement

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017Q4 2018 8bn 2015 2016 2017 Pro outlook Mobile messages forma

1) Adjusted for costs related to acquisitions, one-off cost and share based compensations 2) Pro forma revenue and EBITDA outlook figures. Includes full year effect of acquisitions. The above outlook for 2018 is calculated on LINK’s best estimate based on information available to LINK, and views and assessment of LINK, as of the date of this report. LINK’s growth assumptions may deviate from the outcome resulting in material or immaterial deviations from the outlook. Further, LINK’s assumption relating to successfully acquire further businesses during 2018 is to a great extent outside the control of LINK. LINK’s ability to successfully acquire new businesses at fair value, or at all, could materially affect the outlook figures correspondingly. Investors must therefore make their own calculation in relation to valuing LINK based on their own analysis and judgement 3) Please note that Link Mobility has signed terms sheets with SMS.it and Allterco regarding the Teracomm assets, i.e. the acquisitions are not closed

The #1 European mobile messaging and mobile solutions company – well protected by high 1 barriers to entry

Annual organic growth of 20+%, backed by strong underlying market growth through increased 2 European mobile messaging penetration

The European consolidator with a proven roll-up acquisition model in a fragmented market with 3 attractive benefits of scale

4 Highly scalable and asset light business model with ~90%+ recurring revenues and ~90% cash conversion

5 Experienced management team ready to take LINK Mobility to the next level