Link Mobility Group ASA

Transcription

1 Link Mobility Group ASA Financial Result Second quarter

2 Highlights Q Growth through organic developments and acquisitions Link Mobility Group (LINK) started off 2015 with a solid Q1. The financials for Q prove that the positive trend continues. Q gave revenue of MNOK 78,9 and an EBITDA of MNOK 11,2, representing a solid growth in revenue and EBITDA compared with Q Giving YTD 2015 revenue of MNOK 151,2 and EBITDA of MNOK 19,9. During Q LINK acquired Fivestarday AB, a Swedish prizewinning company developing mobile solutions for the B2B market, and Cool Group ApS, one of Denmark s largest suppliers of B2B mobile communication. Through these acquisitions and LINK s organic development and growth, LINK has strengthened its position as the largest B2B mobile service provider in the Scandinavian and Baltic markets significantly. The financial result YTD 2015 for LINK including the acquired companies shows combined revenue of MNOK 185,6 and combined EBITDA of MNOK 25,7. TNOK YTD 2015 Link YTD 2015 Acquisitions YTD 2015 Total Revenues Total operating revenues Cost of services rendered Payroll Other operating expenses Total operating expenses EBITDA The acquisitions of Fivestarday AB and Cool Group ApS 18 May 2015 LINK acquired all shares in Fivestarday AB. The company has assisted big Swedish brands in their successful development of digital and mobile customer relation strategies and solutions. The acquisition of Fivestarday is a result of LINK s strategy to become a complete provider of mobile B2B solutions for all businesses, public services and organizations. Fivestarday was purchased at the price of MSEK 4,2, where MSEK 2,1 represent a possible earn out the sellers can obtain if Fivestarday meets certain sales and financial targets during the first 24 months after closing. For further information regarding the acquisition see note 2, 8 and June 2015 LINK acquired all shares in Cool Group ApS. Cool Group ApS owns 100 per cent of the subsidiaries CoolSMS A/S, CoolTEL ApS and CoolSystems ApS. Cool Group has, in addition of being a leading SMS aggregator, operator status. The operator status gives Cool Group a unique position in the market, as it can transmit SMS traffic directly into the other Danish operators network. Resulting in lower costs and high quality in terms of delivery reliability. Through the acquisitions of Cool Group, LINK has become a leading 2

3 player in the Danish mobile B2B market, gained operator status and has increased its total capacity in terms of technology and operational resources. The enterprise value of Cool Group was MDKK 75, 2014 EV/EBITDA of 6. For further information regarding the acquisition see note 2, 8, 10 and 11. The acquisitions prove that LINK delivers upon its communicated strategy of creating growth, by both increasing its share in existing markets and by entering new markets. Furthermore, by combining LINK's, Fivestarday s and Cool Group's wide range of mobile services, operational resources, technology, business models and skilled employees, LINK is about to reach its ambition of becoming a complete provider of mobile solutions for its thousands of customers. LINK has now the capacity and capability to serve all companies, public services and organizations that are going mobile in order to satisfy their customers and users rapidly growing demands for mobile services. LINK can assist in the whole process; from developing mobile strategies and building mobile infrastructures to operating mobile marketing/dialog with customers and providing mobile payment solutions. A total of MNOK 2,5 of acquisition costs were booked in Q Increasing market share in existing markets represent great potential The growth in revenue was mainly driven by the business segment LINK Dialog. In Q LINK sent 184,4 million SMS on behalf of its customers, representing an increase of 13 percent from Q and an increase of 35 percent from Q (adjusted for business acquired in 2014). The Norwegian business increased its A2P SMS market share with 0,41 percentage point from 38,54 to 38,95 of the total market. Whereas the Swedish business increased its A2P SMS market share by 3 percentage points from 13 to 16 percent. 4,7 million unique Norwegian mobile subscribers and 4,8 million unique Swedish subscribers received SMS provided by LINK in Q Given the total Norwegian population of 5,2 million and the Swedish population of 9,8 million, LINK proves to have the customer portfolios, technology and resources to assist its customers in reaching a remarkable percentage of the population in its markets. LINK s solid customer portfolio, large markets shares and regular mobile communication with a remarkable percentage of the mobile subscribers, give a unique position for further growth in other mobile business segments as customers tend to start their path towards a more complete mobilizing after first having taken SMS in use. Being a provider of complete mobile solutions, LINK can assist all existing and potential customers towards the level of mobilization fit for their businesses. Given LINK s growing organization in 5 geographical markets and the market s increasing demand for complete mobile solutions, LINK is about to establish a Solutions Sales Unit at Group level to ensure optimal focus on its new solution Next. Through this new customer software LINK can offer the market a mobile solution that manages every aspect of customer dialog and allows customers to manage loyalty programs and target mobile dialog; starting with look-up of a variety of information and registration of clients to automatic dialog flow, segmentation tools, analytic tools and payment solutions. The 3

4 software can be implemented in POS, ecommerce platforms or other ERPs and can be part of every businesses core systems. 6 of 10 employees invested in LINK 11 May 2015 LINK announced a Share Incentive Program offering all employees of the Group shares at NOK 27,80, the closing value at Oslo Stock Exchange at the day of the announcement. More than 60 percent of the Group s employees invested in LINK shares, proving their trusts in LINK s future financial performance and the employees long-term commitment to the Group. For further information regarding the Share Incentive Program see note 10. Final settlement of PSWinCom AS deal reduced debt Final settlement of the PSWinCom AS (PSW), that took place in Q2 2015, reduced the seller s credit from the seller of PSWinCom AS, Stabben AS, with MNOK 4,2. For further information regarding the reduction of the seller s credit see note June 2015 PSWinCom AS merged successfully with Link Mobility AS, creating Norway s largest mobile B2B solutions company. Solid cash position LINK had cash and cash equivalent of MNOK 46,3 per Comfortable credit covenants and level of financial costs Long-term liabilities related to acquisitions amounted to MNOK 84,7, MNOK 52,4 in seller s credits and MNOK 31,8 in debt to financial institutions. No debt bearing an interest of more than 5 percent. For further information regarding the long-term liabilities see note 8. Short-term liabilities related to acquisitions amounted to MNOK 24,7, MNOK 18,5 in shareholders loan with an interest of NIBOR 3M + 5 percent and MNOK 6,2 to Eniro AS that bears no interest. For further information regarding the short-term liabilities see note 9. New contracts and business On Group level, LINK experienced some major positive developments in Q with regards to its Telenor partnerships:! LINK delivers a platform to Telenor Group for handling direct operator billing to Telenor s 13 markets across the Nordic region, Central and Eastern Europe and in Asia. During Q2 there has been a significant increase of transactions and new partners have been launched their services.! LINK completed some major developments in its client lookup, search and SMS messages for Microsoft Lync in Q LINK will together with Telenor Unified Communications launch new versions of Office 365 with Lync and Skype for Business for the Scandinavian market in August In the Norwegian market, LINK won the following contracts of financial and strategically importance in Q2 2015: 4

5 ! Oslo Stock Exchange signed an agreement with LINK regarding delivery of mobile information messaging and mobile payment. The agreement included SMS alerts and notifications for stocks, corporate announcements and fund prices and indices in real time.! OBOS, Norway s larges property developer with more than employees, chose LINK s mobile solutions for SMS alert and crisis management.! Valyou, DnB and Telenor s payment app, chose LINK's technology for the registration of new uses and to facilitate 2-way customer interaction.! Sykepleierforbundet, Norwegian Nurses Organization with members, chose LINK s solutions for handling of enrollment and administration of member portfolio.! Kristiansand Zoo, one of Norway s most visited tourist attractions, entered an agreement with LINK that enabled the Zoo to offer all visitors complete mobile services through mobile marketing, registration and sales as well as the possibility for mobile payment of parking.! PostNord Logistics, a leading Nordic logistics company, chose LINK s services to send mobile notification to all end-users about when and where their parcel has arrived. The solution includes tracking of packages. In the Swedish market, LINK won several contracts of financial and strategically importance in Q2 2015:! Gina Tricot, the Swedish retailer with 135 Nordic shops, chose LINK as partner for developing CRM strategy and CRM solutions for the Swedish market.! Trygg Hansa assigned LINK to develop a mobile app that will be able to publish, inform and support sales for all Trygg Hansa s insurance products.! Aurora Innovations chose LINK as partner in developing and operating its highly distinguished call back services. Aurora Innovations provides services in Sweden, Finland and Norway via its services TeleQ and Spondi, which are used by approximately 70 percent of the Swedish population when contacting medical services. LINK will deliver look-up regarding personal credentials and SMS services. The Danish acquired business, Cool Group, won one particular important contracts in Q2 2015:! KMD A/S, one of Denmark s leading IT- & software companies with employees, a turnover 5 billion DKK and more than 400 IT-systems to host, chose Cool Group s SMS solutions. In Q LINK also expanded its indirect sales through partnerships, especially in the Swedish market. 5

6 Financial Performance LINK had revenue of MNOK 78,9, gross margin of MNOK 31 and EBITDA of MNOK 11,2 in Q2 2015, giving a gross margin ratio of 39 percent and an EBITDA ratio of 14 percent. PSW was acquired 30 December 2014 and is not included in LINK s official financial reports for Analysis of LINK s 2015 financials in terms of comparisons with previous periods will therefore have to be based on the following Consolidated Profits and Loss statement that also include PSW: TNOK Q Q Change % Revenues % Total operating revenues % Cost of services rendered % Payroll % Other operating expenses % Total operating expenses % EBITDA % Compared with the financial performance in Q2 2014, the revenue increased with 20 percent by MNOK 13 from MNOK 66 to MNOK 78,9. The revenue growth was to a large extent driven by the business segment LINK Dialog increasing its share of the total revenue from 58,8 percent in Q to 63,9 percent in Q Gross margin increased with MNOK 1,6 from MNOK 29,4 to MNOK 31. Reducing the total margin ratio from 44 percent to 39 percent. The reduction was mainly a result of LINK Dialog s growth relatively to the other business segment combined with a fall in LINK Dialog s margins. In addition, MNOK 0,5 of Q costs were booked in Q due to incorrect billing from an operator. The acquisition of Cool Group gives LINK both operator status and increased SMS volumes, and LINK is about to launch a project at Group level to increase SMS margins. LINK Payment margin fell due to a higher share of donations with low margins. EBITDA was reduced with 5 percent by MNOK - 0,7 from MNOK 11,9 to MNOK 11,2, giving a reduction of the EBITDA margin from 18 percent to 14 percent. A total of MNOK 2,5 in acquisition costs were booked in Q Adjusting for those extraordinary costs, the Q EBITDA is MNOK 13,7. Giving an increase in EBITDA of MNOK 1,8, compared with Q2 2014, and an EBITDA ration for Q of 17 percent. The figures on the next page show the overall financial development during the period from Q to Q2 2015, including businesses acquired in 2014, in terms of revenue, gross margin and EBITDA. 6

7 Revenue% Margin% EBITDA% MNOK% 60,7% 22,4% 65,9% 29,4% 61,4% 27,4% 72,8% 72,3% 78,9% 31,1% 31,2% 31% 4,1% 11,9% 6,8% 5,6% 8,7% 11,2% Q1%2014% Q2%2014% Q3%2014% Q4%2014% Q1%2015% Q2%2015% Underlying seasonal trends in the mobile B2B market, create seasonal variations in most business segments. Resulting in relatively weak Q1 and Q3, and strong Q4, as shown in the development through the four quarters of Q and Q show the same seasonal pattern, and that there is a strong underlying growth in revenue. Weaker margin ratio is caused by the increasing share of SMS revenue of the total revenue at lower margins. Measures are taken to improve SMS margins. Adjusting for extraordinary acquisition costs of MNOK 2,5 in Q2 2015, EBITDA shows positive development. The figures on the next page show revenue per business segments in terms of MNOK and in terms of the percentage of LINK s total revenue during the period Q to Q The figures include businesses acquired in

8 ConsulFng% License% Mobile%Payment% Mobile%Dialog% 78,9%MNOK% 72,8%MNOK% 72,3%MNOK% 60,7%MNOK% 65,9%MNOK% 61,4%MNOK% 55,4%%% 58,8%%% 57,9%%% 58,5%%% 61,4%%% 63,9%%% 27,3%%% 16,2%%% 19,0%%% 17,5%%% 15,8%%% 14,1%%% 22,9%%% 21,8%%% 15,1%%% 21,6%%% 20,1%%% 18,8%%% 2,2%%% 2,2%%% 1,6%%% 2,2%%% 2,8%%% 3,3%%% Q1%2014% Q2%2014% Q3%2014% Q4%2014% Q1%2015% Q2%2015% LINK Dialog s share of the total revenue has been increasing over the last four quarters, and represent in Q ,9 percent of LINK s revenue and 45 percent of the gross margin. After the acquisition of Cool Group LINK Dialog will, based on the Q financials, represent approximately 70 percent of total revenue. LINK Consulting s share of the total revenue has increased over the last quarters, and represents 3,3 of LINK s revenue in Q The increase is mainly due to the delivery of complete mobile solutions for Olav Thon Group 107 shopping centres customer clubs. 8

9 Market conditions and outlook LINK is, due to the general expanding market for B2B mobile services and the recent acquisition of Fivestarday and Cool Group, expecting continuing growth in terms of both revenue and profits. In the short run, the growth will be driven mainly by SMS and application sales. LINK s strategy has for the last 2 years been to expand its LINK Dialog, LINK Payment, LINK Licence and LINK Consulting services in order to become the leading provider of B2B mobile solutions in the Scandinavian and Baltic markets. During this period LINK has more than doubled revenue, quadrupled profits and reached the goal of becoming the main player in its markets. Rapid technological developments have in the same period changed peoples use of mobile phones significantly. Today, more than half of all global Google search is done by mobile devices whereas a relatively little share of companies, public services and organizations businesses are mobilized to such an extent that they meet the users present and future demands for mobile services. LINK therefore expects an increase in the market for complete B2B mobile services over the next years. When going mobile, businesses will have to integrate mobile technology and solutions into their core business systems. LINK has the software, technological platforms, operational resources and experience to assist all these businesses in their drive towards mobilization. The market and LINK have simultaneously reached the point of development, where it is natural for LINK to start directing its main focus towards solutions sales. LINK s ambition for the next years is to become the main provider of complete mobile solutions within its existing geographical markets as well as in new markets. All companies, public services and organizations with B2C business are potential customers of LINK s complete B2B mobile solutions. Future growth, like past growth, will be achieved through a combination of further development of the exiting LINK business as well as through M&As. 9

10 Consolidated Profit and Loss Note 2Q Q 2014 YTD 2015 YTD 2014 Year 2014 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 8, Other financial expenses Net financial items Profit before tax Income tax expense Profit for the period Earnings per share (NOK/Share) Earnings per share 2,10 0,817 0,484 1,137 0,425 0,882 Diluted earnings per share 2,5,10 0,792 0,466 1,104 0,409 0,851 Exchange rate differences Group Total comprehensive income

11 Consolidated Balance Sheet Note Assets Non-current assets Deferred tax assets Intangible assets Equipment and fixtures Total non-current assets Inventories Total inventories 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 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

12 Statement of change in equity Note Ordinary shares Share premium Uncovered losses Total equity Balance at Profit for the year Issue of share capital Value of warrant Currency translation differences Balance at 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 and Q Issue of share capital Other correction Currency translation differences Balance at

13 Consolidated Cash Flow Statement 2Q Q 2014 YTD 2015 YTD 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

14 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 (Group) and owns 100 per cent of the subsidiaries Link Mobility AS, Link Mobility AB in Sweden, Link Mobility SIA in the Baltics and the Cool Group ApS in Denmark. The Group s headquarter is located in Oslo, Norway. PSWinCom AS was merged with Link Mobility AS 01 June Link Mobility AB purchased all shares in the Swedish company Fivestarday AB 18 May Link Mobility Group ASA purchased all shares in the Danish company Cool Group ApS 30 June Cool Group ApS owns 100 per cent of the subsidiaries CoolSMS A/S, CoolTEL ApS and CoolSystems ApS. The Group provides mobile services that enable companies, public services and NGOs to have mobile communication with their customers and users. The Group offers products and services extending from mobile dialog, mobile marketing, mobile payment, mobile CRM and mobile applications. The Group s business is classified into the business segments; Mobile Dialog, Mobile Payment, Mobile License and Consulting. Note 2 Basis for preparation / Accounting Policies The interim financial statement for the second quarter 2015 has been prepared in accordance with IAS 34 Interim Financial Reporting. The financial statement should be read in conjunction with the annual financial statement of the financial year 2014, which have been prepared in accordance with IFRS and the financial statements for the four quarters 2014 and the first quarter 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 Group s Board of Directors approved the financial statement for the second quarter 2015 on 17 August The financial statement has not been audited or reviewed by the auditors. The Group 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 and Link Mobility SIA that are 100 per cent owned by Link Mobility Group ASA, and are fully consolidated in the consolidated financial statement. 30 June 2015 Link Mobility Group ASA acquired all shares in Cool Group ApS from Sundahl Aps. The transaction value (enterprise value of Cool Group ApS) was MDKK 76,6. MDKK 25,8 was paid at closing. MDKK 25 was paid in shares in Link Mobility Group ASA based on closing value at Oslo Stock Exchange 29 May 2015 of NOK 29,90, which gave Sundahl ApS shares. The remaining is seller s credit to be paid no later than 36 months after closing. The seller s credit bears an interest of 5 percent p.a., and is to be paid monthly. The cash part of the transaction was financed by a loan from Danske Bank. The loan, which bears an interest of 4,75 percent, is to be paid by equal quarterly instalments over the next three years. 18 May 2015 Link Mobility Group ASA s fully owns subsidiary, Link Mobility AB, acquired all shares in Fivestarday AB from Reynholm Industries AB. Of the purchasing price of MSEK 4,2, MSEK 2,1 was paid at closing. The seller of Fivestarday can obtain an additional premium of maximum MSEK 1,8 based on the sales of certain services developed by Fivestarday at the time of closing and sold within 24 months after closing. An additional premium of MSEK 0,3 can be paid to the seller in October 2015 subject to certain conditions linked to Fivestarday AB's financial position per 30 September The Group s consolidated result for Q includes the result for Fivestarday AB for the period 19 May June 2015, whereas Cool Group ApS s result is not included in the consolidated result for Q as the company was acquired 30 June The balances of Fivestarday AB and Cool Group ApS per 30 June 2015 are included in the Group s consolidated balance Q Cool Group ApS s final closing balance per 30 June 2015 is to be settled by September

15 Note 3 Revenue and segment reporting The tables below show the revenues generated, by countries and business segment. Revenues by segment 2Q Q 2014 YTD 2015 YTD 2014 Year 2014 Dialog Payment License Consulting Total Revenues per country 2Q Q 2014 YTD 2015 YTD 2014 Year 2014 Norway Sweden Latvia Total Note 4 Cost of services rendered The table below shows cost of services rendered related to sales per business segment. 2Q Q 2014 YTD 2015 YTD 2014 Year 2014 Dialog Payments Licenses Consulting services Total Note 5 Warrants! In April 2014 Futurum Capital AS bought warrants in Link Mobility Group ASA. The warrants strike price is NOK 6 per share with a term of 3 years. In May 2015 Futurum Capital AS sold warrants to each of the flowing employees of the Group: - Johan Andersen, CEO Link Mobility Group ASA - Siw Ødegaard, CFO Link Mobility Group ASA - Krister Tånneryd, Managing Director, Link Mobility AB - Fredrik Nyman, Sales Director, Link Mobility AB - Guro Røed, KAM Manager, Link Mobility AS 15

16 Note 6 Related party transactions The following transactions were carried out with related parties: Sales (+) and purchases (-) of goods and services (excl. VAT) 2Q Q 2014 YTD 2015 YTD 2014 Year 2014 Crayon AS (Jens Rugseth, Rune Syversen) Complit Holding AS (Jens Rugseth, Rune Syversen) Futurum Capital AS (Harald Dahl) Kvinnesiden AS (Siw Ødegaard) Period-end balances arising from sales/purchases (incl. VAT) 2Q Q 2014 YTD 2015 YTD 2014 Year 2014 Crayon AS (Jens Rugseth, Rune Syversen) Complit Holding AS (Jens Rugseth, Rune Syversen) Futurum Capital AS (Harald Dahl) Loans from related parties 2Q Q 2014 YTD 2015 YTD 2014 Year 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) Note 7 - Options 11 May 2015 an option program was implemented. A total of options were given to executive management and other key employees of the Group. The options are to be earned over a 3 year period; meaning that options can be earned as of 30 April 2016, another options can be earned as of 30 April 2017 and the remaining options can be earned as of 30 April 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 27,80. No fees were paid nor will be paid for the options. 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 MNOK 19,8 is to be paid within 36 months from closing. The debt bears an interest of 5 per cent that is to be paid quarterly. As a result of the final settlement of the PSWinCom AS deal, the seller s credit was reduced with MNOK 4,2 in Q ! Seller s credit from Sundahl ApS from the purchase of Cool Group ApS 30 June 2015, amounting to MDKK 25,8 is to be paid within 36 months from closing. The debt bears an interest of 5 per cent that is to be paid monthly. See note 2 for more information regarding the acquisition.! Seller s credit to Reynolds Industries AB form the acquisition of Fivestarday AB 18 May 2015 of MSEK 2,1 relates to an earn out agreement of a period of 24 months after closing. The seller s credit bears no interest. See note 2 for more information regarding the acquisition and the earn out agreement. 16

17 Debt to financial institutions:! In relation to the acquisition of Cool Group ApS, Danske Bank lent the Group MNOK 30. The loan bears an interest of 4,75 per cent. The interests are to be paid quarterly. The debt is to be paid by equal quarterly instalments over the next three years.! Through the acquisition of PSWinCom AS, the Group took over a loan from Sparebanken Vest that amounts to MNOK 1,8. The loan bears an interest of 5 per cent. A total of MNOK 0,1 is paid monthly in interests and down payment. Note 9 Short-term liabilities The shareholder loans provided by Sevencs AS (MNOK 10) and Rugz AS (MNOK 8,5) bear an interest of NIBOR 3M + 5 per cent. MNOK 6,2 in seller s credit from Eniro AS after the acquisitions of the Intouch business in March 2014 bears no interest. The debt will be paid with equal instalments of MNOK 2 over the next 3 quarters. Note 10 Increase in share capital The Board of Link Mobility Group ASA decided to increase the share capital with NOK by issuing new shares at par value NOK 1 at the price NOK 27,80 per shares at its meeting 18 June The shares were issued related to the Share Incentive Program for the Group s employees where 60 per cent of the employees acquired shares. The Board of Link Mobility Group ASA decided to increase the share capital with NOK by issuing new shares at par value NOK 1 at the price NOK 29,90 per shares at its meeting 30 June The shares were issued to Sundahl ApS, the seller of Cool Group ApS. See note 2 for more information regarding the acquisition. The total of NOK new shares increased the share capital from NOK to NOK The increase in share capital was registered with the Norwegian Register of Business Enterprise by 24 July The increased share capital of NOK and increased share premium of NOK are thus stated as respectively Not registered share capital and Not registered share premium in the balance per 30 June 2015 Note 11 Acquisition Of Business Cool Group ApS Link Mobility Group ASA acquired all shares in Cool Group ApS 30 June The transaction value was set to MDKK 76,6. Acquisition analysis 100% of the shares Cool Group ApS Cash Link Mobility Group ASA shares Seller s credit Total purchase price Book value of equity Book value of existing goodwill 0 Value to distribution Customer contracts Deferred tax on unrealized gains Net identifiable in realized gains Goodwill

18 Fivestarday AB Link Mobility AB acquired all shares in Fivestarday 18 May The purchasing price was set to MSEK 4,2 Acquisition analysis 100% of the shares Fivestarday Purchase price Book value of equity 131 Book value of existing goodwill 0 Value to distribution Customer contracts 0 Deferred tax on unrealized gains 0 Net identifiable in realized gains 0 Goodwill

19 Declaration on the financial statements We confirm that the financial statements for second quarter 2015, to the best of our knowledge, have been prepared in accordance with International Financial Reporting Standards (IFRS), gives a true and fair view of the company s and group s consolidated assets, liabilities, financial position and results of operations, and that the annual report includes a fair review of the development, results and position of the company and group, together with a description of the most central risks and uncertainty factors facing the companies. Oslo, The Board of Link Mobility Group ASA Jens Rugseth Gisela Sogn Rune Syversen Chairman of the board Board Member Board Member Guro Røed Tove Giske Harald Dahl Board Member Board Member Board Member Johan Andersen CEO 19

20 Link Mobility Group ASA Rosenkrantz' gate Oslo Contact information: CFO Siw Ødegaard [email protected] Mob: