Highlights Q EBITDA INTERIM REPORT Q SMS delivered (million) Operating revenues (NOK million) Mobilizing Your Business

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1 LINK Mobility Group ASA Financial Results Fourth quarter 2015

2 Highlights Q Continued strong and profitable growth Increasing market shares in growing markets 365 million mobile messages delivered (1.2 billion full year incl. acquired business) NOK 111 million collected through mobile payment solutions 140,0 120,0 Operating revenues (NOK million) 119,4 EBITDA (NOK million) 100,0 80,0 60,0 40,0 20,0 0,0 35,5 Q ,9 38,2 46,7 72,3 Q2 Q3 Q4 Q , Q2 Q3 Q4 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0-0,8 Q ,9 4,2 4,5 8,7 Q2 Q3 Q4 Q ,2 11,7 14,1 Q2 Q3 Q Q SMS delivered (million) Q2 Q3 Q4 Q Q2 Q3 Q ,5 85,1 Revenues by business area (NOK million) 12,5 18, ,1 Q Q ,1 3,3 Dialogue Payment License Consulting 2 / 25

3 Strong and profitable growth LINK Mobility Group ASA (LINK) confirms its strategy and reports strong growth in revenue and profit in the fourth quarter 2015 across all business segments and geographical markets. LINK achieved total consolidated operating revenues of NOK million in the fourth quarter, up 156 per cent compared with the corresponding quarter last year. Adjusted EBITDA increased with 226 per cent to NOK 14.7 compared with the corresponding period last year. The main drivers behind this strong growth are solid organic growth combined with acquisitions. In full year 2015 LINK achieved pro forma revenue including acquired businesses of NOK and pro forma adjusted EBITDA of NOK 56.1 million. Market conditions in the fourth quarter were favorable, with a strong increase in the use of mobile messaging services delivered by LINK. The strategy of continuing to increase marked shares in the rapid growing marked for mobile messaging through delivery of high quality messaging services in combination mobile solutions and database services is proving successful. The financial position is good, with a solid cash position of NOK 39.7 million. The cash conversion is solid, especially given the strong revenue growth and the investments in further development. LINK delivered according to plan, both on organic growth and on it s strategy of being the consolidator of the industry through acquisitions. LINK s main priorities going forward will be to increase market shares in existing markets and to enter new markets through a combination of organic growth and acquisitions. Consolidated Key Figures Pro forma Key Figures¹ (Amounts in NOK million) Q Q Q Q Operating revenues EBITDA Non recurring costs ² Adjusted EBITDA Adjusted EBITDA margin 12.3 % 9.5 % 13.8 % 10.2 % 12.3 % 14.6 % 14.5 % 14.2 % Profit for the period No. of shares at balance date (mill.) Earnings per share, basic (NOK) Earnings per share, diluted (NOK) / 25

4 Information from the new CEO I joined LINK Mobility in November last year. And what a timing. The market for mobile messaging is exploding. Analyst companies such as Ovum, Forrester, IDC etc. are all forecasting strong mobile messaging (A2P) growth for the period 2016 to Consensus is an annual growth rate of more than 25%. The growth is driven by the extensive the usage of smartphones, high penetration of smartphones, and companies mobilizing their businesses. All leading companies are now implementing their mobilization strategy to take advantage of the fact that everyone uses the mobile all the times. Look around anywhere you go and you will witness most consumers interacting with their mobile phone at all times. The smartphone is now the strongest communication channel businesses can use to interact with their customers. Our Q4 figures support these market growth figures. The growth in number of SMS messages sent in Q4 were 365 million compared to Q3 of 276 million, a stellar growth of 32%. The growth in SMS messaging were converted into a corresponding revenue growth of 32% from Q3 to Q4. The growth in revenue comes from existing customers in addition to new customers that we have recruited during Q4. And we are happy to welcome new customers such as; Steen & Strøm Oslo, Kredinor, McDonalds (Sweden) and several more customers came via our extensive partnerships. Kredinor, Bahs and Intrum Justitia have deployed our comprehensive mobile solution for debt collection. Another LINK innovation with great potential. So why is SMS messaging gaining such a strong momentum and retaining the undisputed #1 position as the global mobile messaging platform? The answer lies in its unique profile. Always connected and always on. No interconnectivity issues and a reliable and trusted messaging platform. A startling 98% of all SMS messages sent globally were read by the recipients. And over 90% of all SMS messages were read within 3 minutes from receipt. As a comparison only 23% of all messages that were sent were read by the recipients. I therefore concur with the various analysts, that the SMS messaging platform will continue to prosper for a long period ahead. I am also truly impressed with all the mobile solutions that we have developed in LINK. We have taken a strong position in enabling mobile payment solutions for our customers. In Q4 more than MNOK 111 were processed through our platform. We see a strong demand for mobile payment enabling services going forward and will continue to develop this area actively. Customer loyalty programs developed with some of our largest customers are also in great demand. Black Friday mobile campaigns were a huge success for some of our Mall Centre customers. Sales leads generation and data base lookup and profiling services are also growing. Our ability to gather and process huge amount of consumer data is another area we will continue to develop in the near future. We call this the LINK Mobile Intelligence Hub. With this Hub our customers will be enabled to tailor make their mobile messages to each specific customer and/or customer segments. Thereby improve hit rates for campaigns, business messages, interaction with their customers etc. It is clear to me that the Nordic Market is ahead of many large European markets in both developing and deploying state of the art Mobile Messaging and Mobile Solutions. Sweden and Norway are probably the most advanced markets in Europe. I see a great potential in expanding our geographical footprint to some of the larger European markets in the future. We can capitalize on our platform development and 4 / 25

5 create greater scale synergies from increasing the volume of transactions. Our strategy going forward will therefore be to further strengthen our Nordic foothold, and look at establishing LINK in some of the larger European markets through a combination of organic growth and acquisitions. Some closing remarks. We are still in the early development phase of mobile messaging and solutions. This excites me strongly and I am very glad to be part of the LINK team and to continue to capture market share and develop state of the art mobile messaging and solutions. We will strive hard to keep ahead of our competitors and ensure that our customers can continue to prosper using our mobilizing services. The future is growth for LINK. 5 / 25

6 Market conditions The overall market conditions in the fourth quarter have been favorable, with a strong increase in mobile services delivered by LINK. The underlying business to consumer (B2C) market for mobile messaging services continues to grow firmly as more and more businesses, public services and organizations chose SMS as their preferred tool for communication with customers and users. LINK was experiencing a high degree of recurring revenue combined with increased revenue per customer as most of the customers increased their use of LINK s various mobile services. The overall market trend is the move towards mobilization of businesses. Customers who have first started using mobile communications in one area, tend to move more and more business activities to mobile platforms. LINK was, in addition to the strong increase in demand for mobile messages, also experiencing an increased demand for integrated mobile solutions such as customer clubs, statistical and analytical tools, databases, payment solutions, strategic advices and numerous other mobile services. LINK s enterprise with the Olav Thon Group s shopping centers is exemplifying this trend. In May 2015 the first shopping centers started to us LINK s SMS services as a tool of communicating with their customers. After seven months, 88 of Olav Thon s shopping centers were using LINK s mobile messaging services in combination with LINK s marketing and customer club solutions. Resulting in increased revenue and more than new members. Through the use of LINK s mobile service, LINK s customers increase their revenue through efficient communication with their customers and are at the same time reducing costs by running more efficient internal processes. In addition to increased revenue from to the existing customer portfolio of more than customers, LINK was also experiencing satisfactory new sales. LINK increased its share of the Norwegian SMS A2P market significantly during By December 2015 LINK had reached a market share of 45 per cent, up 5 per cent points compared with the same period last year. LINK was also strengthening its market position in its other main markets, especially in the Swedish market where LINK increased its market share from 9 per cent to 23 per cent. In the fourth quarter LINK delivered mobile services to more than 20.5 million unique mobile subscribers million Norwegians used mobile services delivered by LINK in the fourth quarter. The penetration in the other Scandinavia markets was not far behind, with 6.4 million unique subscribers in Sweden and 5.4 million in Denmark. LINK s international business was also picking up, through enterprise with global customers. 6 / 25

7 Volumes In the fourth quarter LINK delivered 365 million SMS. This is up 265 million from the corresponding quarter last year, representing an increase of 265 per cent. The strong growth was driven by increased demand in existing markets as well as by acquisitions. Payments of a total of NOK 111 million were made by the use of LINK s mobile payment solutions in the fourth quarter. LINK provided direct operator billing for its customers as well as solutions for customers preferring to use LINK s technology in their own billing systems. An increasing number of LINK s customers took LINK s mobile solutions and big data/intelligence services in use, resulting in increased revenue from license and consulting. 7 / 25

8 Operations Increased sales to existing customers In the fourth quarter LINK experienced increased sales to established customers like the Olav Thon Group, Norsk Tipping, Norwegian, Granngården and Clas Ohlson - in line with it s strategy of working closer with customers to help them mobilizing their businesses. The partner segment grew significant in this quarter. Deliveries to Posten and Difi through the Evry partnership increased substantially. Sales through Swedish partnership agreements were also showing a very positive development. The international business was expanding through worldwide deliveries for large customers. In the fourth quarter, LINK delivered mobile services to subscribers in approximately 175 countries. New contracts in the quarter In addition to the increased sales to existing customers, the following new contracts of financial and strategic importance were signed in the fourth quarter: Norway: The Norwegian high-end shopping centre Steen & Strøm Oslo chose to extend its partnership with LINK. LINK will deliver full service mobile solution for customer dialog and customer loyalty. The solutions are expected to be launched in February The contract is for 2 years, with the possibility for extension. Kredinor, on of Norway s leading debt collectors, chose LINK s mpay solution, SMS gateway and data look-up service. Sweden: McDonalds AB LINK chose LINK s mobile messaging solutions, and is considering LINK s other mobile solutions. Two significant partner deals with CRM implementation agencies were signed. Strengthening of executive management In the fourth quarter LINK s executive management was strengthen in accordance with the plan of preparing the group for further growth and expansion in local as well as in global markets. Arild Hustad was appointed new Chief Executive Officer (CEO) on 16 November Arild Hustad is a seasoned manager within Telecom, and has previously held CEO positions in Telecom Management Partner, Network Norway and Tele2 Norway. Arild Hustad has also long experience from Telenor's national, international and African operations as well as from British Telecom. The resigned CEO Johan Andersen was appointed Head of Strategy and Business Development. Jan Tore Kjær was appointed Chief Sales Officer (CSO) on 2 December Jan Tore Kjær has for the last 18 years been the general manger of Vålerenga Ice Hockey Club, a period in which the club 8 / 25

9 experienced great commercial success. Prior to that, Jan Tore Kjær held leading positions in IDG Norge AS and Tradewinds AS. Mergers and reorganization Fivestarday AB was merged with LINK Mobility AB on 31 December 2015 (LINK Mobility AB owned 100 percent of the shares in Fivestarday AS prior to the merge). The reorganization of the Danish business was accomplished, and consisted by 31 December 2015 of the two companies LINK Mobility A/S and LINK Mobile A/S, both fully owned by LINK Mobility Group ASA. The merges and reorganizations were in line with LINK s strategy of running an efficient organization with clear functions and structures. Both to accommodate the organization of today and to prepare for further expansion. 9 / 25

10 Financial Review (Figures in brackets refer to the same quarter or balance date last year, unless otherwise specified) Group Income Statement Consolidated operating revenues amounted to NOK million (NOK 46.7 million). The strong growth was partly a result of organic growth and a consequence of the acquisitions made in the fourth quarter 2014 and the second quarter The charts below explain the revenue development for the fourth quarter and full year more detailed from corresponding periods previous year Q vs Q Revenue development 1,1 16, vs 2015 Revenue development 2,2 115,1 29, ,7 23,8 31,4 119, ,4 68,2 361,4 0 Q4/14 LMG Organic growth PSWinCom Fivestarday CoolGroup Q4/15 LMG LMG Organic growth PSWinCom Fivestarday CoolGroup 2015 LMG The charts show that revenue increased by 156 per cent from the fourth quarter 2014 to the fourth quarter 2015, and with 124 per cent year on year. The organic revenue increased by 51 per cent from the fourth quarter 2014 to the fourth quarter 2015 and by 42 per cent year on year. The growth has to a large extent taken place in the Mobile Dialogue business segment. Further details about the business segments can be found in the Segments section below. Total operating costs excluding non-recurring costs, amounted to NOK million (NOK 42.3 million). The increase mainly reflects the strong growth, structural changes and investments in costbase to prepare to further profitable growth. Total gross margin was 40.6 per cent (41.7 per cent). Reduced margin were mainly caused by: Increasing messaging sale to large global customers and through partners at lower margins Messaging services amounted for 71.2 per cent of total revenue in the fourth quarter 2015 compared with 50 per cent in the corresponding period last year. Messaging services have lower gross margin that the average margin of the other segments 10 / 25

11 Personnel costs were, in addition to cost of services rendered, the main cost element. Personnel costs in the fourth quarter were 20.7 per cent of net operating revenues (24.8 per cent). Consolidated EBITDA came to NOK 14.1 million (NOK 4.5 million). Non-recurring costs related to acquisitions have been booked with NOK 0.6 million in the fourth quarter (NOK 0.0 million), translating into an adjusted EBITDA of NOK 14.7 million (NOK 4.5 million), equaling an EBITDA margin of 12.3 per cent (9.5 per cent). Financial items amounted to NOK negative 1.4 million (NOK 0.4 million). NOK 0.2 million (NOK 0.1 million) were intrest income on bank deposits. NOK 1.1 million (NOK 0.1 million) were intrest expenses on sellers s credits, debt to financial institutions and shareholders loan. Other financial expences of NOK 0.5 million (NOK 0.3 million) consisted of currency translations on the seller s credit of DKK 25.8 million (NOK 0) to Sundahl ApS (seller of Cool Group ApS). The impact of currency changes from Q to Q amounted to NOK 1.4 million (gain) on net operating revenues, while the corresponding EBITDA impact was NOK 0.1 million (gain). The impact of currency changes from year on year amounted to NOK 2.5 million (gain) on net operating revenues, while the corresponding EBITDA impact was NOK 0.2 million (gain). Segments LINK has four business segments; Dialogue, Payment, License and Consulting, altogether they cover the markets in Norway, Sweden, Denmark and the Baltics. The table below shows the quarterly development during 2014 and 2015 by segment and country: ,1 Revenues by business segment (NOK million) Q Q ,1 Revenues by country (NOK million) ,5 12,5 18, ,1 1,1 3,3 Dialogue Payment License Consulting ,4 14,4 24,8 16,4 0 1,9 Q Q Norway Sweden Denmark Latvia 2,1 All business segments experienced strong sales growth in the quarter, driven by organic growth and acquisitions. Variations in the competitive landscape drive variations in the price and margin developments in the various markets. 11 / 25

12 Dialogue had net operating revenues of NOK 85.1 million (NOK 23.5 million), mainly consisting of SMS services. Dialogue had a gross margin of 31.0 per cent (28.3 per cent). There are significant margin variations from market to market. Further details about the SMS margins can be found in the Group Income Statement section. Payment had net operating revenues of NOK 12.5 million (NOK 11.0 million). The gross margin was 30.6 per cent (25.6 per cent). License had net operating revenues of NOK 18.5 million (NOK 11.1 million). The growth was due to solid recurring sales combined with new sales. The gross margin was 86.1 per cent (82.0 per cent). Consulting is the smallest business area with net operating revenues of NOK 3.3 million (NOK 1.1 million). The EBITDA margin was 71.1 per cent (82.1 per cent). LINK strategy going forward will be to focus on the business areas LINK Mobile Messaging, LINK Mobile Solutions and LINK Mobile Intelligence. To accommodate for this development, LINK will from the first quarter 2016 onwards report according to the following business segments: LINK Mobile Messaging (corresponding to today s Dialogue segment) LINK Mobile Solutions (corresponding to today s Payment and Consulting segments as well as the software part of the License segment) LINK Mobile Intelligence (corresponding to today s database part of the License segment) Balance sheet, financing and liquidity Non current assets amounted to NOK million (NOK million). NOK 10.9 million (NOK 5.3 million) was R&D resulting from developments of LINK s technical platforms. Total assets from acquisitions amounted to NOK million (NOK million), and these values were booked as NOK million in goodwill, NOK 56.0 million in customer portfolios and NOK 5.3 million in technology. Equipment and fixture amounted to NOK 4.3 million (NOK 2.3 million). Trade receivables and other receivables amounted to NOK 98.7 million (NOK 78.4 million) and cash NOK 39.7 million (NOK million). The cash situation is satisfactory. The positive cash flow from operations were also used to pay short term shareholders loans in full. Total equity amounted to NOK million (NOK 81.8 million) of which NOK 9.7 million (NOK 8.4 million) were share capital, share premium were NOK million (NOK 67.1 million) and other equity NOK 32.1 million (NOK 6.3 million). Long term liabilities amounted to NOK 82.1 million (NOK 36.5 million), all related to the funding of the acquisitions of PSWinCom AS, Fivestarday AS and Cool Group ApS. The liabilities consisted of NOK 19.8 million (NOK 24 million) to Stabben AS (seller of PSWinCom AS), DKK 25.8 million (DKK 0) to Sundahl Aps (seller of Cool Group ApS), SEK 0.9 million (SEK 0) to Reynolds Industries AB (seller of Fivestarday AB), NOK 27.5 million (NOK 0) to Danske Bank and NOK 1.5 million (NOK 2.2) to Sparebanken Vest. For more information regarding the liabilities see note 8 to the accounts. LINK regards the credit covenants and level of financial costs as comfortable. 12 / 25

13 Debt to Eniro AS of NOK 2.1 million will be paid in full by the end of the first quarter Cash Flow Cash and cash equivalents were at the end of the period NOK 39.7 million (NOK 18.5 million), of which NOK 32.8 million (NOK 29.0 million) were from operating activities, negative NOK 4.0 million (negative NOK 75.1 million) from investing activities and negative NOK 13.2 million (NOK 40.2 million) from financial activities 13 / 25

14 Outlook and way forward The market for B2C mobile services has been a double-digits growth market over the last years. LINK expects this trend to last, with a further increase in growth rates as more and more businesses, public services and organizations are forced by customers and users demands to use mobile devices as the key channel for communication and use of services. LINK has so far experienced a higher growth rate than the market, and will continue to out preform the general market. LINK s main growth driver, will continue to be SMS services and related mobile solutions and intelligence services. LINK s clear ambition is to assist all its existing customers as well potential customers in their drive towards mobilization by providing ever more mobile messaging services in combinations with complementary mobile solutions and mobile intelligence. LINK is delivering a variety of mobile messaging services like SMS, , mobile Apps, App Push and various multi channel solutions. SMS is by fare the preferred tool of B2C mobile messaging due to it s high degree of reliability and traceability. The use of SMS in the B2C market is expected to double or even triple over the next years. LINK s focus will thus be on SMS as the main mobile message carrier, whilst it also continues to develop other mobile message carriers and solutions. LINK s technological architecture and platforms, business models and organization are highly adjustable to new trends, services and technologies. It is the opinion of the Board of Directors that LINK is well positioned to pursue new, profitable growth initiatives. The company has a solid customer portfolio, a highly scalable technology and an experienced organization. The R&D capacity is good, and the business models arte agile. LINK is well prepared to further strengthen its position in the fast growing B2C market for mobile services. Going forward LINK will focus on the following: Strengthen of the LINK Mobile Messaging position in a growing market Continue to develop world leading LINK Mobile Solutions Continue to develop LINK Mobile Intelligence Services Continue the consolidation of the Nordic and Baltic markets Expansion into major European markets 14 / 25

15 Consolidated Income Statement Note 4Q Q Operating revenues Total operating revenues Cost of services rendered Payroll Other operating expenses Total operating expenses EBITDA Depreciation and amortization Operating profit Interest income Other financial income Interest expense Other financial expenses Net financial items Profit before tax Income tax expense Profit for the period Earnings per share (NOK/Share) Earnings per share 0,523 0,237 1,851 0,882 Diluted earnings per share 5 0,507 0,229 1,795 0,851 Exchange rate differences Group Total comprehensive income / 25

16 Consolidated Balance Sheet Assets Note Non-current assets Intangible assets Equipment and fixtures Total non-current assets Inventories Total inventories 0 40 Current assets Trade receivables and other receivables Cash and cash equivalents Total current assets Total assets Equity and liabilities Equity Share capital Not registered share capital 625 Share premium Not registered share premium Other equity Total equity Deferred tax Deferred tax Total Deferred tax Long-term liabilities Seller s credit Debt to financials institutions Total long term liabilities Short-term liabilities Shareholder loan Debt to Eniro AS Trade and other payables Tax Payable Total short term liabilities Total liabilities Total equity and liabilities / 25

17 Statement of changes in equity Note Ordinary shares Share premium Other equity Total equity Balance at Profit for the year Issue of share capital Net profits purchase/sale own shares Currency translation differences Balance at Note Ordinary shares Share premium Other equity Total equity Balance at Profit for Q1, Q2, Q3 and Q Issue of share capital Other correction Currency translation differences Balance at / 25

18 Consolidated Cash Flow Statement 4Q Q Cash flow from operating activities Profit before tax Taxes paid Depreciation and amortization Net interest in profit and loss Interest received Interest paid Change in trade receivable and other receivables Change in trade and other payables Net cash flow from operating activities Cash flow from investing activities Proceeds from purchase of intangible assets Cash added with purchase of subsidiary Purchase of tangible assets Purchase of intangible assets Net cash flow from investing activities Cash flow from financial activities Proceeds from borrowings Repayment of borrowings Proceeds from issuing new shares Net profits from purchase/sale of own shares Net cash flow from financial activities Foreign exchange effect on cash Net change in cash and cash equivalents Cash and cash equivalents at the beginning for the period Cash and cash equivalents at end of the period / 25

19 Selected notes to the accounts Note 1 General information LINK Mobility Group ASA is a private limited company registered in Norway. LINK Mobility Group ASA is the parent company of the LINK Mobility Group (LINK or the group) and owns 100 per cent of the subsidiaries LINK Mobility AS in Norway, LINK Mobility AB in Sweden, LINK Mobility A/S and LINK Mobile A/S in Denmark and LINK Mobility SIA in the Baltics. LINK is headquartered in Oslo, Norway. LINK is the leading provider of B2C mobile messaging and services in the Scandinavian and Baltic markets. LINK provides services that enable companies, public services and organizations to have mobile communication with and deliver mobile services to their customers and users. LINK offers products and services extending from mobile dialog, marketing, payment, databases and applications. LINK s business is classified into the business segments; Mobile Dialog, Mobile Payment, Mobile License and Consulting. Note 2 Basis for preparation / Accounting Policies The consolidated interim financial statements for the fourth quarter 2015 have been prepared in accordance with IAS 34 Interim Financial Reporting. The financial statements should be read in conjunction with the annual financial statements of the financial year 2014, which have been prepared in accordance with IFRS and the financial statements for the four quarters 2014 and the three quarters 2015 that have been prepared in accordance with IAS 34 Interim Financial Reporting. The accounting policies adopted are consistent with those of the previous financial reporting. The consolidated financial statements for the fourth quarter of 2015 were approved by the Board of Directors of Link Mobility Group ASA on 5 February The financial statements have not been audited or reviewed by the auditors. LINK s presentation currency is Norwegian kroner (NOK), which is also the parent company s functional currency. All amounts are stated in NOK Consolidation The consolidated financial statements show the total financial results and financial position of the parent company, LINK Mobility Group ASA, and its subsidiaries LINK Mobility AS, LINK Mobility AB, LINK Mobility A/S, LINK Mobile A/S and LINK Mobility SIA that are 100 per cent owned by LINK Mobility Group ASA, and are fully consolidated in the consolidated financial statement. Businesses acquired in 2015 are included in the consolidated financial statement from the date of closing of the transactions. 19 / 25

20 Note 3 Segment reporting The tables below show the revenues generated, by countries and business segment. Revenues by segment 4Q Q 2014 YTD 2015 YTD 2014 Dialogue Payment License Consulting Total Revenues per country 4Q Q 2014 YTD 2015 YTD 2014 Norway Sweden Denmark Latvia Total Note 4 Cost of services rendered The table below shows cost of services rendered related to sales per business segment. 4Q Q 2014 YTD 2015 YTD 2014 Dialogue Payment License Consulting Total / 25

21 Note 5 Warrants There are outstanding warrants issued in April 2014 with a term of 3 years and a strike price of NOK 6. The warrants are owned by the following: Futurum Capital AS (owned by Board Member in LINK Mobility Group ASA, Harald Dahl), warrants Siw Ødegaard, CFO LINK Mobility Group ASA, warrants Johan Andersen, Managing Director LINK Mobility AS, warrants Krister Tånneryd, Managing Director LINK Mobility AB, warrants Fredrik Nyman, Sales Director LINK Mobility AB, warrants Guro Røed, Sales Manager Partners and Large Accounts in LINK Mobility AS and Board Member in LINK Mobility Group ASA, warrants Note 6 Related party transaction The following transactions with related parties have been carried out: Sales (+) and purchases (-) of goods and services (excl. VAT) 4Q Q 2014 YTD 2015 YTD 2014 Crayon AS (Jens Rugseth, Rune Syversen) Complit Holding AS (Jens Rugseth, Rune Syversen) Futurum Capital AS (Harald Dahl) Kvinnesiden AS (Siw Ødegaard) -80 Period-end balances arising from sales/purchases (incl. VAT) 4Q Q 2014 YTD 2015 YTD 2014 Crayon AS (Jens Rugseth, Rune Syversen) -1 1 Complit Holding AS (Jens Rugseth, Rune Syversen) Loans from related parties 4Q Q 2014 YTD 2015 YTD 2014 Unsecured loan (principal loan) from Rugz AS (Jens Rugseth) Unsecured loan (principal loan) from Sevencs AS (Rune Syversen) Outstanding interests on the loan from Rugs AS (Jens Rugseth) Outstanding interests on the loan from Sevencs AS (Rune Syversen) / 25

22 Note 7 Options A total of options were given to executive management and other key employees of LINK in an option program implemented in May The options are to be earned over a 3-year period: options can be earned as of 30 April options can be earned as of 30 April options can be earned as of 30 April 2018 The options must be exercised at the latest by 31 October 2018; if not, they will expire without any compensation. If the options are exercised, the price per share shall be equal to the closing value at Oslo Stock Exchange on 11 May 2015, NOK No fees were paid nor will be paid for the options. On 15 November 2015 LINK entered into a share option agreement with the new CEO, Arild Hustad. The share option agreement grants Arild Hustad the right to purchase a total of shares in on the following terms: options at strike price NOK 35,00 to be exercised 12 months from the grating of the options. 3 years lock up period from the purchase of the shares options at strike price NOK 40,25 to be exercised 36 months from the grating of the options. 3 years lock up period from the purchase of the shares options at strike price NOK 46,30 to be exercised 36 months from the grating of the options. 3 years lock up period from the purchase of the shares options at strike price NOK 53,25 to be exercised 36 months from the grating of the options. 3 years lock up period from the purchase of the shares options at strike price NOK 61,20 to be exercised 36 months from the grating of the options. 3 years lock up period from the purchase of the shares To the exception which the options are exercised, LINK Mobility Group ASA may choose to issue to shares, or to transfer shares from its own stock of shares - in either case against payment of the strike price specified above. The share option agreement contains provisions regarding the lock up period, and the consequences for remaining share options in case of a possible termination of employment After the end of this quarter, on 6 January 2016, LINK entered into a share option agreement with the new CSO Jan-Tore Kjær. The share option agreement grants Jan-Tore Kjær the right to purchase a total of shares in LINK over a 3-year period: options can be earned as of 1 January options can be earned as of 1 January options can be earned as of 1 January 2019 The strike price is sett to NOK 35. The options must be exercised at the latest by 30 March 2019; if not, they will expire without any compensation. To the exception which the options are exercised, LINK Mobility Group ASA may choose to issue to shares, or to transfer shares from its own stock of shares - in either case against payment of the strike price specified above. The share option agreement contains provisions regarding the lock up period, and the consequences for remaining share options in case of a possible termination of employment. 22 / 25

23 Note 8 Long-term liabilities Seller s credit: Seller s credit from Stabben AS from the purchase of PSWinCom AS 30 December 2014, amounting to NOK 19.8 million is to be paid within 36 months from closing. The debt bears an interest of 5 per cent that is to be paid quarterly. Seller s credit from Sundahl ApS from the purchase of Cool Group ApS (now LINK Mobility A/S and LINK Mobile A/S), 30 June 2015, amounting to DKK 25.8 million is to be paid within 36 months from closing. The debt bears an interest of 5 per cent that is to be paid monthly. Seller s credit to Reynolds Industries AB from the acquisition of Fivestarday AB 18 May 2015 of SEK 0.9 million relates to an earn out agreement of a period of 24 months after closing. The seller s credit was deduced by SEK 1.2 million in Q based on calculated earn out per 31 December The seller s credit bears no interest. Debt to financial institutions: In relation to the acquisition of Cool Group ApS (now LINK Mobility A/S and LINK Mobile A/S), the Group has a credit of NOK 27.5 million from Danske Bank. The loan bears an interest of 4.75 per cent. The interest is payable on a quarterly basis. The debt is payable by equal quarterly installments, the first was 1 October Through the acquisition of PSWinCom AS, the Group took over a loan from Sparebanken Vest that amounts to NOK 1.5 million. The loan bears an interest of 5 per cent. A total of NOK 0.1 million is paid monthly in interests and down payment. Note 9 - Short-term liabilities NOK 2.1 million in seller s credit from Eniro AS after the acquisitions of the Intouch business in March 2014 bears no interest. The last installments of NOK 2.1 million will be paid in the first quarter NOK 8.5 million in shareholder s loan were repaid in the fourth quarter. A total of NOK 20 million in shareholders loan related to the acquisition of PSWinCom AS were repaid in / 25

24 Pro forma figures Pro forma P&L key figures (Amounts in NOK million) Q Q Operating revenues EBITDA Non recurring costs ² Adjusted EBITDA EBITDA margin 12.3 % 14.6 % 14.5 % 14.2 % ¹ Pro forma figures, including results for acquired companies with full effect from to ² Non recurring costs related to acquisitions Growth based on pro forma accounts (Amounts in NOK million) Q Q Revenue growth Revenue growth rate 33.7 % 24.1 % EBITDA growth (adjusted) Acquisitions Q Q included in pro forma figures PSWinCom AS acquired Fivestarday AB acquired Cool Group ApS acquired Specification of non-recurring costs included above (Amounts in NOK million) Q Q Fivestarday AB, transaction costs Cool Group ApS, transaction costs Share issue July Closing costs PSWinCom AS deal Total / 25

25 LINK Mobility Group ASA Langkaia Oslo IR Contact Siw Ødegaard, CFO siw.odegaard@linkmobility.com Mobile phone: