LINK Mobility Group Holding ASA
Annual Report 2021
2 Because every communication matters
WWW.LINKMOBILITY.COM
LINK in short
Message from the CEO
LINK and the digital messaging industry
LINK strategy overview
LINK expanding to the U.S.
Value creation and opportunities through M&A
Commercial update: Use cases and GTM
Product development: Roadmap
Sustainability
Social
Environment
Governance
Report from the BoD
Financial statements
04
06
09
14
19
22
31
38
42
58
78
3LINK Mobility Group Holding ASA Annual report 2021
LINK has 714 employees and 30 oces
across 19 countries in Europe and the U.S.
Pro forma 2021 revenue NOK 4.6 billion,
pro forma adjusted EBITDA NOK 619 million
=> EBITDA margin 13%
LINK’s 47 200 customers worldwide last year
sent 14.4 billion messages
LINK in short
1958
212
308
391
619
2000
4000
6000
0
2890
3539
4605
300
600
900
0
2018 2019 2020 LTM Q4 21 2018 2019 2020 LTM Q4 21
33% 43%
Revenue NOKm Adjusted EBITDA NOKm
* including all closed acquisitions
4
Because every communication matters
WWW.LINKMOBILITY.COM
LINK in short
Renewed our values: United, Dedicated, Enthusiastic
COVID-19 Commitment
FEBRUARY
Global Partnership with Conversation24 announced
SMS Collaboration with Universal Music Sweden Tismi Acquisition
JANUARY
Interview with CEO, Guillaume Van Gaver
MARCH
Marketing Platform Acquisition
LINK Mobility Hackathon 2021
Announced agreement with Everbridge
AMM Acquisition
Announced framework agreement with Bisnode
APRIL
Launched LINK Partner Community:
new partnership program
TietoEVRY Integration
MAY
Ranked as an established leader in
Juniper Research´s CPaaS Competitor Leaderboard
Adobe Integration
SEPTEMBER
Xenioo Acquisition
Emarsys Integration
Black Friday 2021
NOVEMBER
Juniper Research CPaaS Webinar
OCTOBER
Attended Mobile World Congress 2021 (Barcelona)
LINK Days 2021: Culture, Climate, and Creativity
Message Broadcast Acquisition
JUNE
Altiria TIC Acquisition
Eversource mobile communication agreement
DECEMBER
Signed Diversity, Equity, and Inclusion Pledge
as part of CEO Commitment
Global Logistics company launch WhatsApp
for customer care
Integrated with Salesforce Marketing Cloud
AUGUST
MWC Guest Blog
Insparia Interview
JULY
2021 Highlights
5LINK Mobility Group Holding ASA Annual report 2021
6 Because every communication matters
WWW.LINKMOBILITY.COM
Message
from
the CEO
LINK celebrated the one-year milestone of our public listing on the Oslo Stock Exchange by
establishing ourselves as a rapidly growing, global communication-platform-as-a-service
(CPaaS) player gaining market recognition in 2021. The digitalization of our economies and the
focus on seamless customer experience along with new ways of working in so many industries
increased use cases for mobile messaging, and LINK continued to push the envelope to deliver
increasingly relevant products and services for all our customers.
In addition to expanding the footprint in Europe, LINK distinguished itself this past year by
entering the U.S. market via the acquisition of Message Broadcast, a leading provider of
mission-critical customer engagement solutions to blue chip enterprise customers. This was
one of six acquisitions closed in 2021 that delivered on our targeted M&A strategy outlined in
greater detail later in this report.
On the commercial front, we launched our new LINK Partner Community that focuses on
providing the technology, software, and integrations to continually enhance customer value.
Business-critical integrations now provide massive potential in partner sales for years to come.
Two major deals were Salesforce Marketing Cloud, where LINK is now part of the Salesforce
Journey Builder to deliver both SMS and rich landing pages, and Emarsys, the SAP company
empowering digital marketing leaders and business owners with its popular omnichannel
customer engagement platform.
Our completed integrations, 1,785 new signed business opportunities driving total gross
margin, and expansion geographically and in product offerings shined an industry light on
LINK. We were thrilled to be ranked as an established leader in Juniper Research’s 2021 CPaaS
Competitor Leaderboard, a major indicator in our journey towards becoming a global forerunner
in this emerging technology.
In early February 2022, we rose above a record number of competitors when Juniper yet again
acknowledged our contributions to the industry by awarding LINK the “Best RCS Provider”
Platinum title in the Telco Innovation category of the 2022 Future Digital Awards. This was due
to our innovative Rich Communication Services (RCS) product which is positioned to make a
Success and public recognition carry great responsibility for an organization. We have joined the
world’s largest corporate sustainability initiative by signing the United Nations Global Compact,
committing to aligning LINK’s strategies and operations with Ten Principles on human rights,
labor, environment, and anti-corruption. Within social governance, LINK was one of 40 founding
companies to make the Diversity, Equity, and Inclusion Pledge as part of the CEO Commitment,
within LINK that is fully dedicated to our ESG efforts, which is of vital importance as the world
faces escalating humanitarian and climate crises.
We have strong aspirations for our CPaaS product development and market positioning in the
coming year and will work together as a united, dedicated, and enthusiastic team, with an eye on
environmental and social responsibility, to deliver for our employees and customers around the
world.
Oslo 28 April 2022
Guillaume Van Gaver CEO
Message from the CEO
7LINK Mobility Group Holding ASA Annual report 2021
WWW.LINKMOBILITY.COM
LINK and the digital
messaging
industry
LINK has been operating in the digital messaging industry for two decades. When the company
was founded in Norway more than 20 years ago, short message service (SMS) from person-to-
person (P2P) was well established, while application-to-person (A2P) SMS was just emerging.
LINK was instrumental in driving the development of the A2P market in Norway throughout
the 2000s, which today is the most penetrated and mature A2P SMS messaging market in the
from 2016, and to the U.S. in 2021. LINK is now the clear market leader for enterprise mobile
digital messaging in Europe with a foothold in the U.S. for further growth.
NORWAY
548
312
250
164
93
130
87
60
457
257
236
147
90
121
64
51
SWEDEN UK FRANCE AUSTRIA POLAND SPAIN GERMANY
91 54 15 39 3 9 23 9
20%
GROWTH
INCREASE
2021 SMS per inhabitant
2020 SMS per inhabitant
21% 6% 11% 3% 8% 37% 17%
High adoption of A2P SMS in Scandinavia and the UK,
large potential in rest of Europe
10 Because every communication matters
WWW.LINKMOBILITY.COM
LINK and the digital messaging industry
These new channels provide vast new opportunities for digital communication, but also greatly
increase complexity for enterprises and governments. Orchestration is no longer just between
telecom operators, but in addition the multitude of new internet-based, third-party messaging
app companies. This emerging market landscape over the past 10 years has given rise to a new
industry, communication-platform-as-a-service (CPaaS), to manage the complexity and facilitate
the opportunities these new technologies present.
While standard SMS is limited to 160 characters in black and white, the new OTT channels have
introduced full rich media experiences including images, videos, group chats, and interactions
that smartphone users now take for granted in their person-to-person (P2P) communication
with friends and family.
Enterprises and governments are therefore pushed to embrace newer rich media
communication to meet more demanding customer expectations. Simultaneously they are
experimenting with the newer rich media communication capabilities to increase engagement,
conversations, customer satisfaction, and overall return on communication investment.
New channels to transform digital messaging
0 1 2 3 4 5 6
SMS
5.2
IG/FBM* 1.4
Viber 1.2
Whats App 2.3
WeChat 1.2
RCS
Monthly active users, billions
* Instagram / Facebook Messenger Source: Mobilesquared
0.9
reminders, chatbots, and one-time-passwords (OTP). The importance of digital messaging has
naturally and exponentially grown with the increased penetration of mobile phones.
deliver A2P SMS messages, LINK orchestrates these SMS messages sent by enterprises or
governments through relevant telecom operator networks to the end users. Therefore, the
telecom operators are channel suppliers to LINK.
Until the shift from mobile phones to smart phones about 10 years ago, telecom networks were
the only mobile digital messaging channel. However, with the rise of new internet-based mobile
third-party messaging apps a multitude of new digital messaging possibilities have arisen.
WhatsApp, Facebook Messenger, WeChat, Viber and many other over-the-top (OTT) channels
are now the preferred way to communicate for many people. OTT refers to internet streamed
content, historically devices that go “over-the-top” of the cable TV box.
11LINK Mobility Group Holding ASA Annual report 2021
The telecommunication operators meanwhile are not standing still. They are taking steps to
maintain relevance in the A2P messaging market and prevent the OTT third party messaging
companies from gaining market share in the USD 60 billion global A2P messaging market.
This market dynamic is driving the telecommunication companies’ investment in Rich
Communication Services (RCS), sometimes nicknamed SMS 2.0. RCS has been rolled out by
telecommunication operators in dozens of European countries and hundreds of operators
worldwide. RCS offers similar features to the new OTT channels but is orchestrated via the
telecommunication operator data networks to Android mobile devices.
OTT and RCS have made digital messaging much more colorful and interesting. Richer
content gives more user engagement. Engaged customers purchase more and are more loyal.
Enterprises and governments increasingly see the importance of investing in a broader range of
digital messaging solutions. The CPaaS industry is perfectly positioned to deliver these new and
mature solutions as a single communications partner for enterprises and governments.
The new and colorful OTT and RCS solutions are just emerging for business purposes and are
still a relatively small percentage of total volume when compared to SMS. The vast opportunities
in the coming years.
Not to be left out, traditional A2P SMS messaging has also evolved during the last two decades
to extend value and compete with these emerging technologies by including in the SMS an
internet URL link to a landing page with rich content in mature markets like northern Europe.
Advanced digital messaging solutions are therefore more adopted than the still relatively low
OTT and RCS volumes would indicate.
Without doubt, the emerging CPaaS technologies will allow for seamless digital messaging
communication, establishing two-way conversational messaging over the end users’ preferred
channels and will become the de facto standard for enterprise and government interactions with
customers and citizens.
Gartner projects the API-enabled CPaaS market to grow with a
CAGR of 28.1% in the 2020-2025 time frame. Global expansion
and the continued quest for enterprise digital adoption will fuel
market growth. Key technology areas driving growth are A2P
messaging, video and messaging apps.
12 Because every communication matters
CPaaS market growth by segment
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
2020 2021 2022 2023 2024 2025
$0
Basic messaging Video
Core Voice Advanced Messaging
Security & Intelligent Services Service and Support
Advanced Voice Programable Wireless
Source: Gartner (September 2021)
Rev $US Mil
LINK and the digital messaging industry
13LINK Mobility Group Holding ASA Annual report 2021
LINK strategy overview
Because every communication matters, LINK constantly enhances how messages are delivered
and conversations are created for our customers.
All customer communications, from the simplest one-way messages to rich conversations,
must bring real value. The communication needs to be carried and delivered in the most
and location or device. Such communication can also be omnichannel in the sense of enabling
continuous communication across several channels.
At the heart of LINK’s strategy is our continuous effort to offer enterprises and governments
communication solutions that increase customer engagement, satisfaction, and loyalty. By
implementing our solutions, companies can greatly improve their customer satisfaction.
From a history of being the leading enterprise business application-to-person (A2P) provider
in Europe, focusing on one-way ubiquitous communication, LINK has evolved its strategy to
become a worldwide communication-platform-as-a-service (CPaaS) provider. This omnichannel
during 2021.
In our renewed strategy, we have maintained the enterprise customer focus. We cover the
requirements and needs of large corporations and multinationals, typically offering our solutions
for worldwide deployment. We also serve large and medium enterprises as well as governments
through dedicated sales teams at 30 sales branches. The needs of smaller enterprises are
covered through multiple Self Sign-Up (SSU) portals, where onboarding can be done in minutes
with off-the-shelf product offerings.
LINK’s go-to-market (GTM) includes an extensive partner strategy, enabling our partners to
embed LINK solutions in their own product offerings. From independent software vendors to
large-scale software integration providers, resellers, and telecommunication operators, the LINK
Partner Community has now grown to more than 750 partners.
Local market presence has always been and continues to be part of LINK’s DNA. We are
strengthening our local sales teams within enterprise and partner sales to ensure we fully
understand the needs of our customers in each market. Additionally, we support local product
customers’ preferred language. Local presence in combination with advanced CPaaS solutions
tuned to the needs of each enterprise customer improves loyalty and net retention rates while
minimizing churn.
LINK strategy
overview
16 Because every communication matters
WWW.LINKMOBILITY.COM
M&A is an important part of LINK ’s growth history and continues to be a key vehicle in
achieving our strategic targets. Acquisitions serve different purposes, including being an
effective tool for acquiring key products or capabilities, expanding into new geographies, or
achieving scale in existing markets.
During 2021, LINK started an international expansion beyond Europe. The acquisition of U.S.-
As a result of LINK ’s strategy to become a major CPaaS player, we are aggressively rolling
out extensive omnichannel and conversational offerings. We have also started to strengthen
additional channels such as voice and email. In Mobile Messaging, we are completing the
rollout of Rich Communication Services (RCS) across our footprint, and LINK is already covering
more than 16 mobile messaging channels.
LINK’s customers access our message channels and services through our extensive API
offering as well as through our unique software offering, covering a wide range of use cases.
For instance, we enable customers to build RCS campaigns towards their opted-in customer
base, delivering the campaign through a richer channel which results in higher response rates.
We also offer advanced software to support our customers in segmenting their customer base
and tailoring the right communication messages.
LINK’s solutions and software enable our customers to deliver excellent customer service
implementing omnichannel customer care solutions, enabling end-users to obtain support
through their preferred channel. As customers change their behaviors, LINK is constantly
adapting and enhancing how messages are delivered and conversations are created.
The dedicated, enthusiastic, and united
employees who make up our organization
are instrumental in delivering industry
leading products and services to our
customers. We strive to be an attractive
employer for passionate and driven
individuals who want to take part in our
journey to become a worldwide CPaaS
player. In our operational and strategic work
and in our attitudes and behaviors towards
colleagues, customers, and suppliers, we
regard diversity, equity and inclusion as
levers for innovation, development, and
Environmental, Social, and Governance
(ESG) criteria to lead as a responsible
company serve as an integral part of LINK ’s
strategy. Please refer to the “Sustainability”
section of this report for more details on our
initiatives in this area.
LINK strategy overview
17LINK Mobility Group Holding ASA Annual report 2021
WWW.LINKMOBILITY.COM
LINK expanding
to the U.S.
In June of last year, LINK expanded its foothold outside of Europe through the acquisition of
Message Broadcast. Message Broadcast is headquartered in Newport Beach, California, and is
a leading provider of mission-critical customer engagement solutions to large U.S. enterprise
Message Broadcast was founded in 1998 by Bill Joiner and Bill Potter, leveraging innovative
information technology to automate customer interactions.
Bill Joiner Bill Potter
System (EONS) as well as API-driven communication for email, A2P SMS, and voice
communication services. The company operates within large industry verticals such as utilities,
communication needs.
20 Because every communication matters
WWW.LINKMOBILITY.COM
Message Broadcast is headquartered in Newport Beach, California
The company is especially focused on helping businesses that need to comply with strict
industry and government regulations related to customer communication. The company’s
software manages customer contact data and consent, supporting critical event messaging in
Message Broadcast currently serves large U.S. brands, automating personalized conversations
that increase customer engagement and satisfaction while reducing operational expenses.
Notable clients include utility companies such as Duke Energy, Eversource, Southern California
industries such as AT&T, McKesson, and IBM.
high value-added solutions, the EBITDA margin for the company is above 50%.
For its utility clients, extreme weather events demand highly scaled communications
capabilities, resulting in Message Broadcast deploying millions of health and public safety
communications to consumers during a single event. Moving forward and backed by the full
suite of products that LINK offers, Message Broadcast is well-poised to expand further in
supporting enterprise brands’ operational communications needs.
The Message Broadcast acquisition provides excellent organic growth opportunities for LINK in
the U.S., generates cross-selling revenue between the U.S. and European markets, and gives a
foothold for further M&A in the U.S.
LINK expanding to the U.S.
21LINK Mobility Group Holding ASA Annual report 2021
LINK grows fast and
creates value through
core business M&A
LINK has a distinct M&A strategy and proven track record in creating value beyond its organic
growth. Since 2014, LINK has completed 31 acquisitions, including seven since the initial public
offering (IPO) in October 2020, to become the clear market leader for enterprise messaging
acquisition of Message Broadcast in the U.S. The new overseas foothold provides opportunity
for additional expansion in the low penetrated, high growth, and high margin U.S. market. In
consolidating its market leader position and adding new product capabilities.
The distinct M&A strategy drives value through acquisitions of companies that advance LINK’s
core business. Execution of the strategy follows a three-pillar approach depending on the type
of acquisition target. Add-on or tuck-in acquisitions aim to increase the customer base and
grow market share in local markets. Level-up cases refer to acquisitions of larger companies
software products to provide upselling opportunities across LINK’s large customer base.
Tuck-in acquisitions to
further strenghten local
presence and become the
market leader
Acquire platform companies
in new territories to gain and
build market position
Seek new innovative
solutions to leverage
existing footprint and further
differentiate product offering
Three pillar M&A approach
Add-on Level-up Solutions
24 Because every communication matters
WWW.LINKMOBILITY.COM
screening process that assesses the target’s technical platform, business performance,
and CPaaS capabilities. Targets considered suitable for acquisition by LINK must be either
2021, a more structured manner of integrating newly acquired companies was implemented, in
process, more time is allowed for focusing on commercial and product strategies for driving
reduced operating expenses (OPEX) and lower cost of goods sold (COGS) while also taking
away many of the operational and administrative burdens the company may have experienced
before they became a part of the group.
Pre 2020 IPO: Building the European market leader for
enterprise messaging solutions
LINK began its expansion outside Scandinavia in 2016 and continued to consolidate its
European position as a privately owned company before its IPO in October 2020.
the scale of the business by leveraging its advanced product portfolio and improved operational
Level-up
2016
27.3
45.9
2.3
5.2
5.1
2021
CAGR EBITDA
+17%
Revenure
Adj.EBITDA
Developmnent in revenue and adjusted EBITDA
EUR million
LINK grows fast and creates value through core business M&A
25LINK Mobility Group Holding ASA Annual report 2021
Post 2020 IPO: Building a global market leader for enterprise
messaging solutions
LINK has closed seven acquisitions in Europe and the U.S. since its IPO in October 2020:
WebSMS in Austria, Tismi in the Netherlands, MarketingPlatform in Demark, AMM in Italy,
Message Broadcast in the U.S., Xenioo in Italy, and Altiria in Spain.
LINK completed one level-up acquisition in 2021 with Message Broadcast, a leading provider
of mission critical customer engagement solutions to large enterprise customers, in the U.S.
the U.S.” section of this report.
LINK entered the French market in 2019 by acquiring Netsize, a leading enterprise focused
for years. The LINK integration rekindled growth through implementation of best practices
synergies were realized through increased commercial effectiveness.
Level-up
Level-up
Developmnent in revenue and adjusted EBITDA
53
56
62
62
68
2
1
5
7
8
2017 2019 20212018 2020
CAGR EBITDA
+58%
EUR million
26 Because every communication matters
WWW.LINKMOBILITY.COM
Add-on acquisitions
Add-on acquisitions aim to increase the customer base and grow market share in local markets.
LINK acquired WebSMS in Austria in October 2020 shortly after the IPO. WebSMS was and
wider DACH region, including Germany and Switzerland. The acquisition consolidated LINK’s
business activities in the region. WebSMS has delivered solid growth across all client segments
and gained an increased foothold within healthcare and the public sectors since the acquisition.
In April 2021, LINK acquired AMM in Italy. AMM operates within mobile-marketing and web-
advertising and the product offering includes SMS A2P, email services, and chatbots. The
company serves close to 3,500 enterprise and SME customers throughout Italy by direct sales
and a self-sign-up (SSU) platform. The acquisition consolidated LINK’s position as a leading
CPaaS player in the Italian market
Add-on
Add-on
Developmnent in revenue and adjusted EBITDA
2019
15.4
15.5
22.9
5.4
4.8
8.8
2020 2021
CAGR EBITDA
+62%
LINK grows fast and creates value through core business M&A
EUR million
27LINK Mobility Group Holding ASA Annual report 2021
LINK acquired MarketingPlatform in Denmark in April 2021. The company has developed a top-
of-class modular omnichannel marketing platform with an integrated customer data platform
web, and social media. The acquisition expanded LINK’s CPaaS offering within multichannel
marketing campaigns through customer data management and email. This advanced marketing
offering is currently being rolled out in the Nordics.
LINK acquired Altiria in December last year. The company is headquartered in Madrid and
active in the A2P market in Spain in addition to some activity in other Spanish-speaking
countries through its web-based go-to-market business model. Altiria is the market leader within
nongovernmental organizations (NGOs) in the Spanish market. The acquisition enabled LINK
to consolidate and further expand its position in Spain through upselling opportunities and a
strengthening of its SSU offering.
Add-on
Solutions acquisitions
Solutions refer to acquisitions of innovative software products to provide new upselling
opportunities.
opportunities to both European and U.S. customers from an extensive cross-sell pipeline.
In February last year, LINK acquired Tismi in the Netherlands. Tismi is a provider of
telecommunication services and products and holds licensed operator status in eight European
countries. The company’s main business comprises of providing virtual mobile phone numbers,
The acquisition advanced LINK’s technical infrastructure, adding voice and number masking
capabilities to the product portfolio. The business expanded revenue generation to Austria and
Solutions
Solutions
28 Because every communication matters
WWW.LINKMOBILITY.COM
In December 2021, LINK acquired the Italian conversational messaging and NLP/AI chatbot
company Xenioo. The acquisition immediately strengthened LINK’s omnichannel offering
through enhanced conversational messaging capabilities with NLP/AI chatbot competencies,
(CCaaS) capabilities. The chatbot is a cloud-based application with support for 16 messaging
and voice channels, including SMS, RCS, WhatsApp, Facebook Messenger, Instagram, Google
Business Messaging, Telegram, web channel, Discord, Slack, Microsoft Teams, Voice, Amazon
Alexa, and Google Assistant. Xenioo is currently being included in CPaaS solutions for both
European and U.S. customers.
M&A pipeline for further expansion
LINK has a strong M&A pipeline consisting of solutions companies to advance product
capabilities, local A2P players to gain further market share and level-up cases to open or win
new regions. The digital messaging industry remains highly fragmented and as such opportunity
rich for acquisitions at accretive valuations.
Diverse pipeline – Execution along all three pillars
Bubble size illustrates number of opportunities
Solutions
by
1
1 2
Avg. target size by revenue
Avg. technological capabilities
3
4
2
3
4
5
CCaas CPaaS Solutions Voice/Video Messaging
LINK grows fast and creates value through core business M&A
29LINK Mobility Group Holding ASA Annual report 2021
WWW.LINKMOBILITY.COM
LINK’s go-to-market (GTM)
LINK focuses on three main go-to-market (GTM) strategies that allow for the acquisition of
ensuring the customer receives the right service with a frictionless experience to becoming
a customer, onboarding, and using our services. GTM methodology drives revenue growth,
Commercial update:
Use cases and GTM
New Customers and partnerships through GTM expansion
Enterprise
Nordics
Central
Europe
Western
Europe
Global
messaging
Partners Self-Sign-Up
Invest in critical localozed
salesforce to maintain regional
expertise and win new logos
in both new and existing
territories
Buil direct relationships to
deeply integrate with costomer
systems, increase stickiness
Expand number of partners
within LINK ecosystem
Ability to sacle quicky, as
partnerships brind immediate
cedibility and access to
customers in new markets
Leverage current LINK SSU
brands and existing management
”playbook” to expand intp other
geographies
Allows LINK to expand rapidly
without sales reps; onine
marketing & local customer
support may be set up quickly to
bootstrap markets
Well Developed Developed Opportunity
Large growth opportunity
32 Because every communication matters
WWW.LINKMOBILITY.COM
LINK’s biggest customer acquisition funnel is through a localized enterprise salesforce. LINK
employs well over 100 salespeople within our local markets, each with a standardized way of
working and being well equipped with local knowledge of the peculiarities of that market. A
key differentiator for LINK is to be local so we know our market and know our customers. This
unique insight enables LINK to provide superior value and levels of service to customers.
As a result of the extraordinary growth of CPaaS for several global customer accounts, in 2021
LINK increased focus and investments into its global sales initiatives, which primarily focus on
large tech and logistics companies
The largest commercial investments during
2021 were made on the partner channel
sales effort with roughly 20 partner sales
managers recruited into LINK’s local
organizations. This was implemented based
on LINK’s Nordic blueprint where partners
have been instrumental in the GTM success.
In 2021, LINK launched a best-in-class
Partner Program with three different tiers,
successful cooperation.
LINK’s third GTM category is the Self Sign-
Up (SSU) approach. LINK has, in multiple
markets, very strong local SSU brands in
its portfolio that are champions on local
customer acquisition. It is an important
category to highlight as there is an
increasing rate of enterprise customers
and partner accounts being acquired
through web channels. Just as the world
is digitalizing, so are LINK’s customer
acquisition principles.
LINK does most of its business under the
brand of LINK Mobility selling to enterprises
and partners. Our SSU business is primarily
conducted under local brands.
LINK has a strong partner
community
PLATINUM
GOLD
CERTIFIED
Commercial update: Use cases and GTM
33LINK Mobility Group Holding ASA Annual report 2021
LINK’s primary use cases
LINK sees the adaptation of services being driven by three main use cases: Transactions or
growth drivers, and LINK’s efforts are continuously focused on these differences.
password (OTP) use cases. Vast growth in OTP volumes has been driven by large global tech
companies. CPaaS will over time bring further value, a trend already evident for some of the
landing pages, and logics being implemented.
Deutsche Post and DHL improve their customer service
experience through WhatsApp
y LINK positioned as DHL’s backbone for
mobile messaging globally, providing DHL
Express (which handles 70% of all B2C
shipments), and DHL IT Services
y Deutsche Post and DHL are using
WhatsApp as a new channel for their
customer services, with WhatsApp
supported chatbot functionality
enhancing both customer service and
operational efficiencies
y During 2021, Deutsche Post service
already sees substantial messaging
volumes, with high volume growth
expected
y DHL IT services using WhatsApp for their
Digital Assistant globally
34
Because every communication matters
WWW.LINKMOBILITY.COM
eCommerce-focused mobile messaging increased, especially among large retailers. Other
growth use cases for marketing are the industries we see growing in a digital-only environment.
Marketing is currently experiencing a boom with rich messaging optionality providing a rich
experience through utilizing add-ons to the traditional SMS. LINK is in a good position to
capitalize on this trend, with rich messaging now starting to come in many forms including Rich
SMS, OTT channels, and RCS.
promotional and transactional messaging. These messaging needs include promotional
marketing, showcasing product catalogs with personalized shopping assistance, presenting
have experienced +400% increases in open rates, engagement scores, and click-through rates
using RCS in comparison to the same campaigns on other channels.
Global brands adopting rich messaging functionality – leading
with the French market
Significant traction on RCS messaging in
France
y Early movers - all mobile network
operators adopted RCS in 2020
y RCS device reach continues to exhibit
strong growth
LINK connects with all mobile network
operators to facilitate use cases for
customers
y Marketing messages – RCS with Rich
SMS fall back options
y Conversational – RCS with LINK
Conversations Web Client fall back
Clear benefits from RCS
y Significantly higher brand exposure
y Verified senders increases trust for the
end user
y Engagement drives conversions and the
bottom line
y ROI as high as 10x compared to SMS
I did not encounter such a
well-knitted & complete RCS
campaign, it is really a great
piece of work.
Mathieu Dubois, SFR
Commercial update: Use cases and GTM
35LINK Mobility Group Holding ASA Annual report 2021
Thirdly, the customer experience area is, over time, an area where CPaaS providers will have
partnered with leading players in this space, building established partnerships inside CCaaS.
These solutions come in various shapes and forms but almost all of them rely on a CPaaS
vendor in an environment where customers become more and more channel-agnostic, with an
omnichannel strategy allowing them to choose different channels depending on the customer
preferences and experience.
Value creation for DNB through enhanced customer experience
Of businesses think they provide
‘superior’ customer service
Of customers believe they have
experienced superior support
LINK created value in DNB’s customer care
department with 2,500 employees
y Largest cost in customer in customer
care is personnel time with phone
support being the least efficient channel
y Phone support is also not a preferred
channel for their customers
LINK delivers a solution that enables
signicantly less telephone support
y Moving customers into a messaging
format authenticated through their IP
y Algorithms showcase most frequently
used templates. The template library
enables only one click to inform
customers quickly
y Integration with CRM systems and data
compilation track KPI’s and provides
advice on what templates to use
LINK solution signicantly enhanced
effectiveness and generated high ROI
y Time spent per customer request
decreased by more than 80% from 5-8
minutes to 30-60 seconds
y Increased customer satisfaction with
information quickly available
80%
08%
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Many of LINK’s customers are turning to conversational messaging across all use cases, an
area that is being adopted by most industries as the digitalization trend was expedited during
the COVID pandemic, with consumer preferences and demands on big brands to communicate
on the right channel and at the most convenient time.
Specsavers using LINK to transform its conversational
messaging
Specsavers, a leader in optometry, audiology,
and healthcare services, will work with LINK
over the next five years to transform their
digital customer communications
y Omnichannel engagement strategy which
includes SMS, Rich SMS, and RCS
Turning customer enquiries into messaging
conversations
y Facilitating promotional marketing
messaging
y Providing company updates and
appointment reminders
Adobe’s Campaign Classic Connector
integrated with LINK’s CPaaS solutions
y Providing real-time, relevant, and
personalized communications
y Easily managed by multiple business
functions including Marketing, CRM,
Customer Service, and Store teams
Commercial update: Use cases and GTM
37LINK Mobility Group Holding ASA Annual report 2021
The A2P messaging and CPaaS industries are continuously evolving with new technologies
enabling more advanced use cases. LINK develops products and solutions in readiness to these
new market opportunities and currently drives digitalization with a product offering ahead of
customers’ expectations.
Innovation in the industry is typically led by large global customers’ adoption of CPaaS
technology and improve their services more incrementally. LINK is in this context seen as a
key strategic partner, and combined with its extensive local presence, attracts strong customer
relationships in developing innovative new CPaaS solutions. By delivering and enabling new
CPaaS use cases for customers, LINK helps to accelerate the digitalization of business
processes. The transition to more advanced CPaaS solutions provides additional SaaS license
revenue for LINK on top of messaging volume revenue from A2P SMS.
implementations, Juniper Research in 2021 positioned LINK as a leading CPaaS player. In this
rapid growth market, LINK has the product portfolio and the critical customer base to facilitate
accelerated adoption of CPaaS solutions.
Product development
roadmap
RCS gives huge flexibility on the type of messages you can send
Text Messges Video Media Image Media Carousel
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Demonstrating the lead in innovation, LINK won the 2022 Platinum Award for the “Best RCS
provider” in the CPaaS industry. In the emerging RCS market, LINK has invested to take a market
leader position for global RCS capabilities on GSMA standards, with integrated RCS NLP/AI
LINK took a position in the NLP/AI chatbot industry through the acquisition of the Xenioo
conversational platform in 2021. This industry segment is estimated to grow from a total value
of USD 20 billion in 2021 to USD 100 billion in 2026, according to Mordor Intelligence. The broad
are seen as drivers of that growth.
Expanding further from LINK’s A2P messaging roots, planned expansion and acquisition of
voice and video capabilities will unlock new addressable markets, use cases, and revenue
streams from new and existing customers. As Europe’s leading digital messaging company
with a foothold in the U.S., award winning CPaaS solutions, and a leading product development
portfolio, LINK is positioned as a key player and contributor in the ever-advancing digital
communication services industry.
Marketplace
Internal and partners
Customer
Success Plans
Vertical and
Regulatory
Compliances
Developer Blogs,
Developer Relations,
Certifications and
Events
Visual Builders
Templates
SDKs and IDE
Provisioning
Monitoring
Billing
RCS WhatsAppVideo Web Chat EmailSMS Voice
L2 – Cloud Communications API
SIP Trunks Phone Numbers Short and Long Codes Network Interconnect
L1 – Networking Layer
Sentiment Analysis Analytics Chatbots Voice Bots
L4 – Intelligence / AI
Contact Center Campaign Manager CRM
L5 – Solutions
Emergency Services
L3 – Package Business Capabilities
Authentication Anonymization Notification Basic SecurityIVR Omnichannel
TOOLS
PROGRAMS
Current
Roadmaps
Apple
Messages for
Business
NLP
CDP
GTM Phase
LINK will evolve its core product portfolio to this emerging new market over the next two years.
Horizontally, the product expansion will focus on expanding digital messaging capabilities in
voice and video while further developing RCS, OTT, NLP & AI capabilities. Vertically, innovation
will be focused upwards in expanding integrated SaaS solutions to address advanced solutions
downwards into the value chain of delivering network layer capabilities needed to optimize the
CPaaS value proposition.
Product development roadmap
LINK CPaaS product offering
Illustration adapted from Gartner’s Market Guide for Communications Platform as a Service published September 2021
41LINK Mobility Group Holding ASA Annual report 2021
CHAPTER 07
environmental, social, and corporate governance (ESG) factors into its daily operations and as
a part of its strategic processes. The board has considered these topics in relation to LINK’s
business operations and reviewed factors based on the UN Sustainable Development Goals
(SDGs), the Ten Principles of the UN Global Compact, and the OECD Guidelines for Multinational
Enterprises.
Principles of the UN Global Compact in its operations by becoming
a signatory. In line with the UN Global Compact, LINK is committed
to continuously progress in the four focus areas: Anti-Corruption,
Human Rights, Environment & Labor.
Our Sustainability report shows the key actions that we have
implemented in these areas in 2021 and our ambitions for 2022. The
directive and the Norwegian Accounting Act Section 3-3C.
Materiality assessment
As the global understanding of ESG as important factors affecting businesses across markets
and industries gain ground, it is crucial for any business to understand and manage the risks
and opportunities related to these topics, not only when making strategic decisions but also in
its daily operations.
In a context that is constantly evolving, LINK recognizes that the areas affected by ESG factors
as well as other internal stakeholder such as the board members and employees.
Sustainability at LINK
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People
The topics listed below are material for LINK as we believe we can have a positive impact on
these factors. Our workforce is at the heart of our company, and we believe in growing together
with our employees by empowering them.
Diversity, equal opportunity, and non-discrimination
LINK aims to have representation from all sections of society and for each employee to
feel respected so they can perform at their best. At LINK, we do not tolerate any kind of
discrimination based on origin, religion, gender or sexual orientation, state of health and/or
disability, political opinions, religious beliefs, or family status. These values are clearly stated in
our Code of Conduct and upheld in our daily actions.
Gender equality
Our permanent and freelance contract workforce combined has 66% male and 34% female
representation, which exceeds the technology industry average reporting in 2021. We do
not have any employees who self-designate as any other gender currently, but the option is
available to all. Our greatest areas for representative improvement are in our Global Leadership
Team (GLT) and Extended Leadership Team (ELT), where women made up 25% and 22% of the
leadership groups in 2021, respectively.
Customer & Employee Privacy
Diversity and equal opportunities
Non-discrimination
Developing Skills & Employee engagement
Human Rights
Energy management
Carbon Emissions
Supplier Environmental Assessment
Material use
Rapidly changing technology context
Anti-corruption
Supplier Assessment
People
Material topics for LINK
Planet
Profit
Sustainability at LINK
45LINK Mobility Group Holding ASA Annual report 2021
In 2021, LINK implemented an organization-wide human resources and employment position
categorization system which was required to gain a clear understanding of our worldwide
steps toward quantitative data mapping on gender representation and compensation. We aim to
have an actionable analysis of the gender pay gap at LINK completed in 2022.
Professional equality at LINK Mobility Norway
Gender pay equality: The unadjusted gender pay gap for 2021 is 13.6%. The rate shows the
difference between average male salaries over average female salaries in percent, irrespective
of other variables, such as position level. The gender pay gap analysis refers to the workforce in
Norway.
Parental leave: In 2021, the average number of days of parental leave for women was 121 days
and for men was 48.5 days. The scope of this analysis is the workforce in Norway.
How we are working to improve gender equality
Our recruitment process includes new policy guidelines including strategies and hiring manager
training to attract more diverse candidates, with an emphasis on women, across all levels
of responsibility in the organization. LINK was an early signatory of the CEO Commitment’s
Diversity, Equity, and Inclusion Pledge, vowing to set diversity and inclusion as an integrated and
strategic priority in our organization that is anchored in our top management.
Geographic diversity
LINK had operations in 19 countries in 2021, consisting of European nations and the U.S.
employees representing 12 different nationalities.
To accommodate our multinational workforce and foster an inclusive environment, the entire
organization participated in an interactive workshop on cultural differences and cross-country
collaboration in June 2021. This initiative is discussed in further detail under Employee
Engagement in this report.
Disability
LINK does not tolerate discrimination of any kind based on state of health and/or disability,
and we offer accommodation wherever possible to ensure a quality work environment for all
employees. We currently have employees who self-report as working with a disability.
Our ambitions for 2022
In 2022, LINK plans to conduct a detailed analysis of gender representation, compensation, and
gender pay gap. The goal is to have a strategy in place to support this ambition by 2023 using
the data and analysis produced in the current year.
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Employee engagement – Making LINK a better place to work
Remaining united with high employee engagement is an integral part of LINK’s values and
bimonthly, quarterly, and annual events to keep our employees informed about the latest
developments and to present the results of our cooperative dedication.
LINK Days
We held our company-wide virtual gathering, called LINK Days, over two and a half days in
June 2021. The goal of this event was to bring LINKers from around the world together to
interact across country and department lines. One of the main themes for LINK Days 2021 was
cultural differences and cross-country collaboration. We engaged an external speaker with
expertise in bridging cultural differences to present new ways of working and interacting with
awareness. LINKers used this new learning in break-out workshops on cross-country teamwork
to discuss cross-cultural communication and challenges. They also reviewed what the LINK
values – united, dedicated, and enthusiastic – mean in different cultures across all countries.
Through this exercise, we examined our current and desired LINK culture, identifying gaps for
improvement.
All Hands
All Hands meetings are organized at the group, regional, and local levels for employees on
regular schedules. These meetings are used to share business updates from the past months,
celebrate milestones and new arrivals, and offer employees the opportunity to ask questions.
Tune-In-Tuesdays hosted by Group Product
One department that continually innovates and develops new products and cases is Group
Product. To keep all LINKers informed, this team also organizes optional bimonthly information
sessions to showcase developments concerning LINK’s products.
LINK Voice
Twice per year, we conduct a company-wide survey for all LINKers to express satisfaction or
areas for improvement across a spectrum of issues. The LINK Voice survey is critical to gauging
our employee engagement and overall satisfaction, and managers also use the results to guide
decision-making in their departments.
Sick leave at LINK Mobility Norway
For the accounting year 2021, the sick leave rate was reported to be 2.2% for our workforce in
Norway. This analysis includes short- and long-term sickness and does not consider childcare
leave and/or parental leave.
Sustainability at LINK
47LINK Mobility Group Holding ASA Annual report 2021
Measuring our employee engagement
LINK’s strategic vision for 2025 includes securing an employee engagement score of 75 on the
LINK Voice survey conducted through the Culture Amp® platform, as we seek to be a highly
desirable workplace in our industry. For the concluding LINK Voice of 2021, we experienced
an all-time high participation rate of 92% across the company (exceeding the Culture Amp®
industry benchmark of 83%) and an employee engagement score of 65. This score trails the
technology Europe benchmark of 71 by 6 points, but this was a marked improvement for LINK
over the 10-point difference in our score and the Culture Amp® industry benchmark one year
earlier in 2020. We aim to close the gap even further in 2022 as we steadily progress in our
multi-year strategic plan.
Customer and employee privacy
Protecting personal data in line with the European General Data Protection Regulation (GDPR)
and mitigating risks related to this subject is a material topic for LINK. In 2021, LINK has
implemented several measures to mitigate risks related to personal data protection:
Companywide awareness and training
During 2021, LINK refreshed internal training on topics related to Personal Data Protection,
Compliance, and Information Security. Each employee is required to complete the training on a
yearly basis.
80%
82%
84%
86%
88%
90%
92%
94%
November 2020
374/440 responses
Participation
443/492 responses
554/601 responses
June 2021 January 2022
85%
90%
92%
Company participation
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Companywide policy updates and implementation
In 2021, LINK reviewed and published updated guidelines related to personal data protection
including Privacy by Design Guidelines and Data Breach Policies, and delivered company-wide
training on the topic. To help identify and minimize the data protection risks of a project, LINK
has made available a refreshed Data Protection Impact Assessment handbook and Privacy by
Design Guidelines that are available to all employees.
Focus on personal data protection and privacy compliance in new aliates
By 2021 all companies that were acquired by LINK before 2021 have approved and are in
process of adopting the Personal Data Protection Policy directly and/or have implemented the
policy or equivalent policies that are accepted by LINK as evidenced by the yearly audit process.
transparency of LINK’s processes to comply with the GDPR.
Larger scope for data privacy
LINK is going beyond the initial GDPR Project and since 2018 focused on mitigation of the initial
customer privacy and data protection risks and has put in place a continuous improvement
process focused on the following areas
y Policy Implementation
y Encryption of data
y Deletion of data
y Access control
y Security strategy
Our data privacy ambitions for 2022
Data retention
In 2022, we would like to prioritize data retention and increase the automation of data deletion
processes. Roadmaps and action plans have been laid down by internal and business IT teams
to focus on data retention in business IT systems
Increasing awareness and training participation
LINK will put in place monetary incentives to encourage employees to participate in groupwide
training and achieve 100% participation
Sustainability at LINK
49LINK Mobility Group Holding ASA Annual report 2021
Environment and climate change
LINK is aware of the environmental impact of its operations. In this regard, the material topics
for LINK are energy management, climate change, and material use. As a business with high
requirements for data storage, LINK can reduce our impact in several ways by implementing
measures directly in its operations. LINK chooses well recognized international hosting
impact on GHG emission and looks to contribute to global reduction of emissions. We can do so
by helping customers reduce emissions from their operations.
In addition to working on our direct operations, it is our responsibility to educate our employees
about environmental issues. In 2021, there were several actions carried out to raise awareness
about this topic:
A. Climate action during LINK Days 2021
The LINK Days is a digital company-wide gathering bringing together employees from
edition was innovation and sustainability. Sylvija Seres, an expert on these two topics,
presented and shared knowledge with all employees all about how we can balance
sustainability are things that everyone can take part of and aren’t just dedicated to one
day a year – they are meant to be a part of our day-to-day lives.
Planet
Access control
Managing access to critical systems is a priority for LINK in 2022 and several measures will be
implemented in the next couple of years to gain a better ability for managing access.
Human rights
To ensure that all managers and employees commit to operating consistently with the UN
Guiding Principles on Business and Human Rights and the Ten Principles of the UN Global
Compact, LINK has implemented the following measures
Employee code of conduct
The values of human rights that we promote can be found in our Employee Code of Conduct
signed by all new employees. Our code of conduct clearly states that we
y Oppose all forms of forced labor and child labor in our operations
y Report on any human rights abuse in our operations or in those of our business partners
y Always apply national labor laws and regulations
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This talk led to another workshop: our employees were brought together to work in
proposed by our employees ranged from measures to improve direct emissions to
working on our products to help our customers meet their climate goals.
After the LINK Days, to kick-off our dedication to climate action, LINK signed up for
Challengize, a social platform for health and team building where companies can track
employee teams and their workouts. We encouraged all employees to get out and
exercise for an hour and a half during one of the LINK Days as part of the challenge to
raise money. In just this short time, we raised 10,000 euros. The money raised through
our LINK Challenge for Climate Action, was donated to a European NGO that works to
preserve and restore forests around the world.
Even though groupwide operations will be implemented in 2022, some of LINK’s subsidiaries are
examples.
B. Climate action in the DACH region
In 2021, with the help of external consultants specialized in sustainability transformation,
LINK Mobility Austria and Germany implemented a comprehensive carbon footprint
assessment. This carbon footprint covered Scope 1, 2 and 3 emissions which totalled to
328 tCO2. Emissions related to mobility contributed to 50% of the total carbon footprint.
Having assessed its carbon footprint in the last accounting year, in 2022, the DACH
footprint, to name a few:
y Educating employees about emissions related to commuting
y Reducing and optimizing business travel
y Purchasing nuclear-free low carbon electricity
y Selecting server hosting partners with carbon assessments and reduction measures
y Switching to sustainable certified provision fund for employees in Austria
For areas in which direct emission reductions are not possible, globally standardized
climate protection projects will be supported using carbon compensation. The next steps
for LINK Austria and Germany are to assess the carbon footprint of its products and
thereby help reduce their customers’ carbon footprint.
Suppliers’ environmental assessment
is in the process of implementing requirements towards its suppliers in procurement processes,
and routines to document its assessments of providers. There are more details on this topic in
the supplier assessment section.
Sustainability at LINK
51LINK Mobility Group Holding ASA Annual report 2021
Material use
With a business model that relies heavily on the use of IT infrastructure, we are aware that
the materials used in manufacturing our IT infrastructure has an impact on the environment.
implemented in 2022-203. This step consists of mapping of all IT equipment in data centers and
Energy consumption
To have a comprehensive idea of our energy consumption, LINK will assess primary energy and
electricity consumption related directly to its operations. This assessment will allow LINK to
understand its dependence on energy and electricity within our operations and will form a basis
Carbon footprint calculation
is to evaluate our impact on the climate. Keeping this in mind and to begin its journey to
positively contribute to climate change, LINK will calculate its GHG emission related to direct
operations (Scope 1 & 2) using standard reporting frameworks such as GHG Protocol and
ISO14064/14069.
Climate Risk assessment
In 2022, we will start assessing transition and physical risks related to climate. Our objective
also verify our business’ vulnerability to this topic.
Climate actions on a local level
We feel that it is our responsibility to help create awareness on climate change for our
related to climate change in their local settings.
Our ambitions to reduce our environmental impact in 2022
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Rapidly changing technology context
As part of an industry that is vulnerable to rapid technological change, with technology under
constant development, and the market’s expectations for messaging services to follow the
development, LINK strives towards adaptability to technological changes as part of its strategy.
Strategy assessments are therefore made annually for LINK’s management to ensure a
are a tool for measuring vulnerability going forward.
LINK’s focus on adaptability is seen through multiple areas of its business, hereunder
Development of new product offerings
expectation and new developments, in order to ensure a product portfolio that is in line with
technological development in the marketplace
Resilient infrastructure
As a business highly dependent upon data storage, LINK maintains and develops its processes
company of its size and geographical presence. Migration of server sites, assessment of
carbon footprint, and secure redundancy are examples of such processes
Promotion of ESG as part of its business
With the increased global understanding of Environmental, Social and Corporate Governance
as important factors affecting business across markets and industries, it is crucial for any
technology business to understand the effects on expectations for technology to meet and
exceed requirements and make them part of strategic decisions and daily operations
Attraction and retention of skilled employees
A rapidly changing and complex industry requires the ability to attract and retain highly skilled
employees. An important element of attracting and retaining skilled personnel is to retain its
focus on diversity and inclusion as well as equal opportunities. Furthermore, a clear stand
against harassment and intimidation, as well as focus on treating personnel with respect and
tolerance are elements of importance for LINK’s ability to retain skilled personnel. LINK will
continue to ensure that its procedures in this area are upheld and enforced.
In addition to the above, LINK’s core business of providing better digital communication for
enterprises and governments directly forms part of how technological changes can improve and
simplify processes in society.
Prot
Sustainability at LINK
53LINK Mobility Group Holding ASA Annual report 2021
Anti-Corruption
Bribery and corruption undermine any legitimate business operations and therefore is an area of
focus at LINK. In line with its values, laws, and regulations governing all areas where it operates,
LINK is putting into practice its commitment, as outlined in its Anti-Corruption Policy and Code
anti-corruption system.
Anti-Bribery and Anti-Corruption Policy
LINK is committed to observe the laws and regulations that govern our operations wherever it
operates. Compliance with anti-bribery and anti-corruption laws is of key importance to all of
LINK’s businesses.
Employee Code of Conduct
At LINK, we do not tolerate corruption in any form, including bribery, facilitation payments, and
corruption in business practices
Supplier Code of conduct
One of the focus areas of our Supplier Due Diligence process that was put in place in 2021, is
Anti-corruption. Like our Employee Code of Conduct, our Supplier Code of conduct states our
non-tolerance of corruption in the context of our suppliers.
Training
All LINK Mobility’s employees and contractors complete an annual training program covering
areas of key importance to perform their work at LINK. Anti-Corruption is one of the areas where
all employees are measured annually. LINK’s board of directors decided from the year 2022 to
ensure incentives for completion of the program and approved completion as a KPI for bonus
achievement for LINK employees.
A global whistleblowing system
LINK’s current whistleblowing system was set up in May 2021 and is available to all LINK
of corruption or other ethical issues (environment, security, fraud, personal data, human rights,
etc.) and, more generally speaking, to any situation or conduct that may be contrary to the Code
the use of the Integrity Line set out the whistle-blowers’ rights and responsibilities so that the
system can operate smoothly in a climate of trust.
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Suppliers’ assessment - The supplier due diligence process at LINK
LINK has committed to avoid causing adverse impacts on people, the environment, and society
in its daily operations, as well as to avoid contributing to such adverse impacts within its
relations with stakeholders, including suppliers.
LINK depends on several suppliers, including entities operating in the telecommunication
industry (mobile network operators (MNO), aggregators, and over-the-top (OTT) providers),
certain IT vendors (hosting, server and storage solution providers, software vendors), as well as
a variety of other supply-side partners.
LINK has taken up certain actions aimed at identifying and organizing its relations with
suppliers, enabling the company to act responsibly and to create added value throughout its
value chain. In 2021, LINK has introduced a basic supplier-due-diligence (SDD) process, based
on the methodology proposed by OECD Due Diligence Guidance for Responsible Business
Conduct. The focus areas for LINK Mobility in supplier assessment are
y Data Privacy
y Anti-Corruption
y Antitrust/ Fair competition
y Environment
In 2021, the supplier assessment process has included suppliers’ mapping, risk assessment,
and proposal of mitigation measures. After having mapped the entirety of its suppliers, LINK has
implemented the following measures
Supplier and Employee Code of Conduct
Embedding LINK core values into corporate policies and subsequently developing relevant
Introduced in 2021, our codes of conduct convey a clear message of LINK’s expectations
within areas covered by ESG, anti-corruption, competition, and privacy policies, and hence, they
contribute to improving sustainability through LINK’s value chain.
Employees training
Compliance training is a measure of raising employees’ awareness of various compliance
issues, including the required conduct towards third parties. Privacy training (GDPR and IT
security) has been obligatory for all LINK employees for several years now, and in 2021 the
company additionally launched a general compliance training, covering sustainability, anti-
corruption, and competition policies. All new employees are expected to complete both training
courses upon commencement of their employment at LINK and subsequently every year.
Privacy/ IT security questionnaires
The questionnaires are aimed at mitigating risks related to the processing of personal data in
vendors’ systems. LINK has used questionnaires for several years now.
Sustainability at LINK
55LINK Mobility Group Holding ASA Annual report 2021
To continue our efforts to reduce risks associated with suppliers, the following measures will be
implemented in 2022.
Increasing the scope of suppliers
In 2021 the suppliers’ mapping covered telecommunication vendors. In 2022, LINK will increase
its supplier assessment scope to certain IT suppliers.
SDD questionnaire
The general SDD questionnaire, developed in 2021, is expected to act as a primary guidance
to raise employees’ awareness of compliance issues, and to collect relevant knowledge on
suppliers’ entities.
Contract measures
LINK expects its suppliers to adhere to standards set out in the Supplier Code of Conduct and it
will therefore introduce relevant clauses in the supplier contracts.
Internal audits
performance against corporate policies. Internal audits relevant to the implementation of
supplier assessment measures will be introduced in 2022.
Environment clauses
In 2022, material environmental issues will be analyzed with respect to suppliers.
IT security
LINK believes that information security is not a one-time exercise, but a continuous effort.
All of our digital channels serve a business purpose. To assure that the assets we provide to
customers are safe to use, we employ a standardized approach to information security, from
both internal and external vectors. LINK is currently in the process of obtaining ISO 270001
compliance for its major software portfolio lines. One main policy regarding IT Security has
been implemented.
Information Security Policy
The Information Security Policy is an overarching document that contains all major directions,
as well as several sub-policies. The overall guidelines to follow are based on ISO 27K
frameworks, as well as GDPR.
Our 2022 ambitions
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There are two prevalent approaches that are being instilled in our daily development and
is to establish a framework for the protection of information at LINK and all subsidiaries,
and availability. It is the policy to permit the use, access, and disclosure of information in
accordance with the company’s guidelines and with due regard to applicable laws at any
time. Based on risk assessment, the company establishes a level of safety that corresponds
to the importance of the information in question. LINK carries out frequent risk assessments
The document also describes the security strategy, which consists of elements such as
responsibilities and organizational levels, training, collection, and management of information,
etc. The Information Security Policy document is updated on a regular basis, and it is approved
by the top-level management of the company, preceded by a wide review of specialists.
Sustainability at LINK
57LINK Mobility Group Holding ASA Annual report 2021
CHAPTER 08
LINK Mobility Group Holding ASA (LINK) is the Oslo Stock Exchange-listed parent company of
the group. LINK is headquartered in Oslo and has 714 employees across Europe and in the U.S.
LINK has more than 20 years of experience in providing mobile messaging services and mobile
solutions for companies, public services, and organizations. LINK has decades-long experience
in the Nordics, the world’s most innovative market for digital mobile solutions, and has in recent
years leveraged its knowledge and capabilities throughout Europe to become the clear market
leader within enterprise mobile messaging solutions. Including the new foothold in the U.S.,
globally.
Market position and development
The overall market trend towards digital conversations continued through 2021. The new
channels with richer content and conversational features, RCS (SMS 2.0) and OTT (internet
streaming) are increasingly a required addition to the core SMS product. Multichannel and
The market growth is driven by a broader adoption of digital messaging from private companies,
public services, and organizations as a central part of their communication strategy. In 2021,
LINK sent 14.4 billion messages (including the full-year effect of acquired entities), compared to
10.7 billion messages the previous year, on behalf of its 47 200 (40 600) customers. The market
for mobile messaging solutions is expected to continue to expand with the vast opportunities
presented by new CPaaS solutions.
LINK has an exceptionally low customer churn (2% in 2021) securing recurring and growing
revenue from existing clients. Most customers increase their use of LINK’s mobile services and
include more advanced solutions as they realize high returns on investment (ROI). ROI is driven
by higher revenue from better communication with their end-users and lower costs through
LINK has a clearly stated twofold strategy for growth. The company drives organic growth
through an increased market share in existing markets and enters new markets through
acquisitions. M&A is also supportive to the product offering through acquisitions of solutions
companies. Last year LINK acquired Timsi in the Netherlands (voice and number masking),
MarketingPlatform in Denmark (email and customer data platform), and Xenioo in Italy
(chatbot). The new solutions advance the CPaaS offering and create value for LINK’s large
customer base.
Report from the
board of directors
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Organic growth in the various markets is supported by LINK’s unique threefold go-to-market
(GTM) strategy. Larger enterprise customers are approached directly by dedicated salespeople,
small and medium-sized enterprises (SMEs) are acquired through self-sign-up (SSU) portals
and the partner model expands the customer base and product offering. LINK delivers tailored
CPaaS solutions to its enterprise customers. These tailored innovations are then standardized
to SaaS solutions and offered through LINK’s SSU portals. Partners further scale the business
as LINK solutions are sold to partner customers and partner applications are offered to LINK
customers.
LINK’s extensive experience and a large customer base in the most innovative and advanced
markets for digital messaging in the world give it a clear competitive advantage. The unique
threefold GTM strategy provides scalability to the highly competitive business model.
Comments related to the nancial statements
statements have been prepared based on that assumption. As a listed company, LINK Mobility
accordance with IFRS (International Financial Reporting Standards) as adopted by the European
Union.
Acquisitions
Netherlands. Tismi is a provider of telecommunication services and products and holds
licensed operator status in 8 European countries. The company’s main business comprises
Enterprise customers and CPaaS providers.
Denmark. The company has developed an omnichannel marketing platform with an integrated
in Macedonia and revenue is primarily related to software licenses.
On 26th April 2021, LINK entered into an agreement to acquire approximately 81% of AMM, a
mobile communications company listed on the AIM list of the Italian Stock Exchange. LINK
launched a mandatory offer for the remaining shares in June and exercised the squeeze-out
right pursuant to Italian rules in July. All shares were transferred to LINK on 27th July 2021 and
AMM was delisted from AIM Italia. AMM operates within mobile-marketing and web-advertising
and the product offering includes A2P SMS, email services, and chatbots.
in the U.S. The company offers its proprietary CPaaS platform EONS (Emergency Outage
communication. Message Broadcast operates within large US industry verticals like utilities,
Report from the board of directors
61LINK Mobility Group Holding ASA Annual report 2021
Matelab. The company’s core offerings are proprietary conversational AI and NLP-driven
software, including advanced conversational chatbot Xenioo, and the customer support
software system xDesk.
On 14th December 2021, LINK acquired the Spanish self sign-up (SSU) company Altiria. The
company is active in the A2P market in Spain and has some activity in other Spanish-speaking
countries through its web-based go-to-market business model. Altiria is the market leader within
NGOs in Spain.
Revenue, costs, and prots
LINK reported revenue of NOK 4 410 million in 2021, an increase of 25% from NOK 3 539 million
Operating costs (including payroll and related services and other operating expenses) were
NOK 896 million (NOK 606 million) and include non-recurring costs of NOK 252 million. The
non-recurring costs included a pre-IPO restricted share unit (RSU) share-based compensation
program of NOK 149 million (cash effect only NOK 6 million), restructuring costs of NOK 27
million, and expenses related to acquisitions of NOK 76 million. Depreciation and amortization
were NOK 338 million (NOK 271 million).
of NOK 13 million and a positive currency effect of NOK 100 million. LINK’s outstanding bond
170 million, related to the acquisition of Message Broadcast in the U.S., was completed in June
Income tax was NOK 30 million (positive NOK 77 million), resulting in a net loss for LINK of NOK
78 million (negative NOK 328 million) in 2021.
Annual result and allocation
The board proposes that the 2021 net loss will be transferred to accumulated losses.
Financial position, cash ow, and liquidity
As of 31 December 2021, LINK’s total assets amounted to NOK 10 540 million (NOK 7 700
million), of which intangible assets were NOK 8 561 million (NOK 5 806 million). Intangible
assets are mainly comprised of goodwill equal to NOK 5 615 million (NOK 3 983 million). Trade
receivables and other receivables amounted to NOK 905 million (NOK 749 million) and cash
and cash equivalents to NOK 844 million (NOK 952 million). Total equity was NOK 5 090 million
(NOK 4 304 million) and constituted of NOK 1 million in share capital, a share premium of NOK 5
802 million, and NOK 714 million in accumulated losses and translation differences. Long-term
liabilities were NOK 4 317 million (NOK 2 425 million) and consisted mainly of a EUR 370 million
bond maturing in December 2025.
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from investing activities was NOK 2009 million (NOK 660 million) of which the acquisition of
activities amounted to NOK 1 583 million (NOK 1 135 million), largely stemming from a tap
issue of EUR 170 million in June 2021.
Risks
successful implementation of LINK’s business strategy or manage its growth effectively. Market
The below section describes how the Global Leadership Team (GLT) evaluates and mitigates
these risks and includes comments on the risks related to the global pandemic, and the
geopolitical uncertainty that has evolved in 2022.
Market risk
LINK’s risks related to its customers and competition, hereunder loss of contracts and
opportunities, are managed under the headline of market risk.
LINK is operating in the CPaaS market which is transitioning from the A2P SMS market via
multichannel offerings to omnichannel solutions. The evolution of SMS to RCS and new
OTT options like WhatsApp, Facebook Messenger, or Viber enables brands to communicate
with their customers on many channels in a richer format. An omnichannel offering hands
the channel choice to the customer as the brands facilitate all types of customer-originated
communication.
The A2P SMS market has traditionally grown by more than 10% annually and continues to do so
through adoption in new markets and industries and increased usage in more mature segments.
As the new channel technologies offer vast new opportunities for value creation, the new CPaaS
reaching critical mass, the CPaaS market will however be small in comparison to the more
penetrated A2P SMS market. The timeline to reach critical mass remains uncertain and a risk
for overall high growth in the industry. A channel-agnostic approach limits this risk for LINK as
the company is versatile to adopt channels and solutions as they mature and gain traction in the
market.
Report from the board of directors
63LINK Mobility Group Holding ASA Annual report 2021
Financial risk
credit. Overall, these risks are regarded as low and manageable.
prices. As expected, some margin pressure is observed for simple use cases like one-time
passwords (OTP), wholesale SMS, and basic mobile payment services. LINK is only to a limited
degree exposed to simple use cases as the company’s strategy has always been towards
enterprise solutions. This strategy results in a very low customer churn and growing recurring
revenue. LINK did not experience material margin pressure for enterprise solutions in 2021 and
will continue its enterprise customer focus on innovative CPaaS solutions to increase margins.
By being the leading provider and thus the largest buyer of SMS in its markets. LINK can
purchase SMS from telecom operators at favorable prices. Additionally, LINK’s position ensures
priority from the operators, which secures high quality in terms of deliverability.
LINK’s subsidiaries operate using their local currencies. Revenue and cost for transactions
are usually carried out in the same currency. This natural hedge reduces the currency risk and
protects margins. There is, however, a translation effect to LINK’s reporting currency NOK as
exchange rate risk in relation to its 5-year EUR 370 million outstanding bond. The bond was
issued at an original size of EUR 200 million on 15 December 2020 and upsized by EUR 170
bond is listed on the Oslo Stock Exchange and LINK considers its liquidity risk to be limited and
future M&A agenda. LINK saw marginal losses on trade receivables in 2021 and has established
Acquisition risk
Value creation through the acquisition of businesses requires the successful purchase of
suitable companies at sound multiples and well-managed integrations to realize synergies
and scale advantages. Failure to realize synergies or winner’s curse through overpayment for
Please refer to the section “LINK grows fast and creates value through core business M&A” in
this report.
The board has established routines and procedures regarding possible takeovers. This
procedure does not include any content regarding countermeasures like poison pills or other
defense measures to hinder a possible takeover of the group.
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IT Risk
IT risk includes risks related to LINK’s architecture, data management, information security,
software development, internal infrastructure and IT Services, business IT and processes, and
external threats, hereunder cyber incidents. IT risk is managed by central IT functions under the
procedures for subsidiaries to implement locally. The central IT function provides support and
counseling to local entities depending on requirements in the covered areas.
LINK is taking steps to enhance and increase focus on the efforts to minimize the potential
loss caused by inadequate or failed internal processes, or from external or internal incidents.
Processes to manage the causes or mitigating the impacts of risks in these areas are therefore
continuously implemented. In 2021, the following actions should be noticed
y Alignment on group level of the process to perform penetration testing on LINK’s platforms
y Structuring of LINK’s approach to documenting its information security management system
y Groupwide implementation of incident management processes
Legal & compliance risk
awareness or misunderstanding of, ambiguity in, or indifference to, the way laws, regulations,
and commitments apply to LINK. Legal & compliance risk at LINK is managed by a group
function under the authority of the CEO. LINK’s processes are based on a top-down approach,
function provides support and counseling to local entities depending on requirements in the
covered areas, hereunder areas such as contract alignment and negotiation, GDPR compliance,
compliance with anti-money laundering regulations, fair competition, and supplier due diligence.
in the material topics under the “Sustainability” section of this report.
Internal annual audits are performed for compliance with GDPR. Policies are accessible to
employees at the LINK Intranet, and training is provided.
Operational Risk
Operational risks at LINK include risks related to human rights, health and safety, security, and
leadership and organization. The area thus covers people, buildings, assets, internal structures,
and external events.
The safety of all employees is a key priority throughout LINK from headquarters to every local
subsidiary.
The development of a skilled organization with regards to leadership and key area competence
is crucial for LINK’s competitiveness, and therefore a top priority.
Report from the board of directors
65LINK Mobility Group Holding ASA Annual report 2021
Recruitment, training, and people management, as well as dedication to equality and diversity,
are areas that are continuously developed to ensure growth and robustness in the organization.
LINK is taking steps to enhance and increase focus on its efforts to minimize potential losses
from inadequate or failed internal processes or from external events. Processes to manage the
causes or mitigate the impacts of risks in these areas are continuously implemented. In 2021,
the following actions should be noticed.
y LINK’s introduction of a group-wide CRM system to ensure alignment with group-wide
processes and policies, and mitigating negative impact through detective controls
y LINK’s centralization and structuring of insurance to ensure adequate coverage is aligned in
all areas
Global pandemic
The coronavirus pandemic continued to be a challenge last year and led to numerous
government restrictions and lockdowns across LINK’s footprint. This was particularly
challenging for the retail sector and negative effects were observed throughout the year. LINK’s
growth rates will vary between quarters in 2022 as the lockdowns in 2021 resulted in high and
and in the U.S. was however an asset and helped to reduce the effect of lower retail volumes.
Longer-term, the pandemic is likely to have accelerated the secular digitalization trend with
numerous new use cases created especially within public services and healthcare. Successful
mass vaccinations have enabled most European countries to reduce or remove restrictions fully
as of the end April 2022, which gives hope for more normal activity levels throughout this year.
Geopolitical uncertainty
LINK has no direct business activities in Ukraine and Russia but did terminate a certain
volume of messages on behalf of customers in these markets. The revenue shortfall, as most
customers now have ceased operations in Ukraine and Russia, is immaterial compared to total
group revenues.
The heightened global uncertainty and the unprecedented economic sanction imposed on
Russia are likely to be negative for world economic growth. This could have an indirect negative
customers of all sizes in numerous industries and geographies. As the various industries and
markets are likely to experience different effects from these global shifts, the impact on LINK is
likely to be mitigated.
LINK’s IT security team has assessed its exposure to cyber incidents because of the heightened
geopolitical uncertainty, taking operations and stakeholders into account. The conclusion as of
April 2022 is no major risk increase for LINK.
As of the end of April 2022, LINK has observed a modest negative impact from reduced
business activity in Poland. No direct negative effect from the unprecedented economic
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sanctions, affecting global energy and raw material markets, has been experienced by LINK.
Shareholders and shares
LINK issued new shares in 2021 related to acquisitions and a share-based remuneration
program. Throughout the year, the number of shares in the company increased from
270,911,039 shares to 294,252,254 shares, of which 22,105,791 shares, or 95% were related to
acquisitions.
Netherlands. In connection with the acquisition, the company issued a total of 1,226,637 new
shares at a subscription price of NOK 54.76 per share.
Following the issuance, the share capital of the company was NOK 1,360,688.38, comprising
272,137,676 shares, each with a nominal value of NOK 0.005.
in Denmark. In connection with the acquisition, the company issued a total of 1,723,310 new
shares at a subscription price of NOK 43.70 per share. Following the issuance, the share capital
of the company was NOK 1,377,742.875, comprising 275,548,575 shares, each with a nominal
value of NOK 0.005. The acquisition of MarketingPlatform closed after the AMM acquisition
below.
On 26th April 2021, LINK entered into an agreement to acquire approximately 81% of AMM,
a mobile communications company listed on the AIM list of the Italian Stock Exchange. In
connection with the acquisition, the company issued a total of 1,687,589 new shares at a
subscription price of NOK 36.78 per share. Following the issuance, the share capital of the
company was NOK 1,369,126.325, comprising 273,825,265 shares, each with a nominal value of
NOK 0.005. The acquisition of AMM closed before the MarketingPlatform acquisition above.
in the U.S. In connection with the acquisition, the company issued a total of 16,755,069 new
shares. Following the issuance, the share capital of the company was NOK 1,461,518.22,
comprising 292,303,644 shares, each with a nominal value of NOK 0.005.
In November 2021, 1,235,424 new shares were issued as part of the share-based restricted
stock units (RSUs) program. At year-end 2021, 2,261,444 new shares included in the program
remained to be issued during 2022 and 2023.
On 14th December 2021, LINK acquired the Spanish self sign-up (SSU) company Altiria.
In connection with the acquisition, the company issued a total of 713,186 new shares at a
subscription price of NOK 20.37 per share. Following the issuance, the share capital of the
company was NOK 1,471,261.270, comprising 294,252,254 shares, each with a nominal value of
NOK 0.005.
At an extraordinary general meeting (EGM) on December 7th, the board was given the
authorization to issue shares amounting to up to 10% of the share capital of the company to
strengthen the equity position in relation to acquisitions. The board was also granted the option
to acquire treasury shares up to a total of 5% of the share capital and in addition, provided the
right to issue shares in relation to a management incentive program (MIP). The authorizations
are valid until the annual general meeting in 2022. For shares relating to the MIP programs,
please refer to note 8.
Report from the board of directors
67LINK Mobility Group Holding ASA Annual report 2021
A LINK share represents one vote at the company’s general meeting. LINK does not have
multiple share classes. The shares are freely tradable and to the knowledge of the board, there
are no shareholders’ agreements in the company regarding the exercise of voting power or
limiting trading in the shares in general. However, in connection with company acquisitions,
major shareholders and shares issued to majority sellers can be subject to customary 12 – 18
months lockups from the time of completion.
The company at year-end 2021 had close to 3,000 shareholders, of which the largest 10
shareholders combined controlled 2/3 of the company. Abry Partners, represented by Citibank
as nominee, was the largest single shareholder with a 31.8% stake through subsidiary holdings.
The LINK Mobility Group Holding ASA share closed at NOK 19.27 on the Oslo Stock Exchange at
stocks.
Organization, workforce, and management
LINK’s workforce, coupled with its technology, is the most important asset both in terms of
serving LINK’s customers of today and for the future development of the company. LINK
sales, and technology departments through reorganizing internal competencies and by
recruiting new employees.
Regional segments have also been restructured to maximize synergies. By the end of 2021,
LINK had 714 employees. 34% of the total LINK workforce is women, compared to 34.6%
in 2020. The Global Leadership Team (GLT) consists of 8 people, 2 women and 6 men. The
working environment is regarded as positive . None of LINK’s subsidiaries or the parent
company recorded work-related accidents that resulted in personal injury or property damage.
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Board statement on corporate governance
This statement forms part of the board of directors’ report and describes the foundation and
principles for LINK’s corporate governance structure. Further information can be found at LINK ’s
website (linkmobility.com) and in the “Sustainability” section of this report.
LINK believes in transparent corporate governance processes, and that good corporate
interests of shareholders, employees, and other stakeholders.
1. Applicable legislation and principles
LINK is subject to corporate governance reporting requirements according to the Norwegian
Accounting Act, section 3-3b, Issuer Rules by the Oslo Stock Exchange (Oslo Rulebook II –
Issuer Rules, Chapter 4.4), and the Norwegian Code of Practice for Corporate Governance
(“Code”). The regulations are openly available on www.lovdata.no, www.oslobors.no, and www.
nues.no, respectively.
The structure of this statement shall follow the structure of the Code and will specify under
each section either how the board of LINK adheres to the Code or provide explanations in areas
where it does not fully comply.
LINK has adopted and implemented a corporate governance policy to safeguard the interests of
the company’s shareholders, employees, customers, and other stakeholders. These policies and
associated rules and practices are intended to create increased predictability and transparency
and thus reduce uncertainty related to the business. LINK’s Corporate Governance Policy as
adopted by the board on September 7th, 2020, with revisions made on December 7th, and the
Code of Conduct for the Nomination Committee is presented in the annual report.
2. Business
As described in its Articles of Association, LINK itself or through its group of subsidiaries,
develop and operate software for mobile telephone services to private and public businesses.
Please refer to “Market position and development” in the board of directors report above for
more on LINK’s business.
LINK’s Articles of Association are published in full on the company’s website (linkmobility.com).
through deep dives into the strategy and business throughout the year, in order to ensure that
social, and environmental considerations into account when performing such deep dives.
LINK fully complies with the Code.
Report from the board of directors
69LINK Mobility Group Holding ASA Annual report 2021
3. Equity and dividends
Dividend Policy is published on LINK’s homepage under corporate governance, key documents.
LINK fully complies with the Code.
4. Equal treatment of shareholders
All LINK shareholders are treated equally. If the board of directors was to carry out an increase
in share capital and waive the pre-emption rights of existing shareholders, the reasoning would
be fully transparent and publicly disclosed in a stock exchange announcement. Any transactions
the company carries out in its own shares will be carried out either through the stock exchange
or at prevailing stock exchange prices. In the case of limited liquidity in the company’s shares,
LINK will consider other ways to ensure equal treatment of all shareholders.
LINK fully complies with the Code.
5. Shares and negotiability
LINK does not limit any party’s ability to own, trade, or vote for shares in the company. In the
unlikely event that this was not to be the case, LINK will provide an account of any restrictions
on owning, trading or voting for shares in the company.
LINK fully complies with the Code.
6. General meetings
In accordance with LINK’s Articles of Association, all shareholders with shares acquired before
The annual general meeting shall resolve the annual accounts and other matters that the
general meeting is required by law or the articles of association to resolve.
All shareholders are invited to the general meeting within the deadlines that follow from law
the general meeting is shared in the invitation and/or by reference to the documents publicly
available at LINK’s website.
Deadlines for shareholders to give notice of their intention to attend the meeting are set as
close to the date of the meeting as possible.
Members of the board of directors attend the general meeting to the extent it is practically
possible and in accordance with the goal of minimizing travel. The chairman of the board of
directors, or a board member who represents the chairman, shall in all cases attend the general
meeting.
The chairman of the nomination committee shall attend the general meeting in person or by
representative.
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The general meeting elects a chairman for the general meeting and shall be able to elect an
independent chairman.
Shareholders can vote on each individual matter, including on each individual candidate
nominated for election.
Shareholders who cannot attend the meeting in person are given the opportunity to vote
beforehand or give proxy to do so, through a form provided with the invitation, where each
individual matter can be voted over separately.
LINK has not adopted any special procedures regarding the general meeting that deviates from
provisions applicable for Norwegian public limited liability companies that are listed on the Oslo
Stock Exchange.
LINK fully complies with the Code except for the board of directors and nomination committee
attendance. As LINK has a goal of reducing all its travel to the largest extent possible, board
members shall attend the general meeting only to the extent necessary.
7. Nomination committee
LINK’s Articles of Association provides that LINK shall have a nomination committee comprising
of two to three members elected for two years by the general meeting of LINK, which shall be
independent of the board and executive management to ensure that all shareholders’ interests
are taken into account. The current members of the nomination committee are Tor Malmo
(Chairman) and Oddny Svergja. The members are not part of LINK’s board or personnel.
The general meeting sets guidelines for the duties of the nomination committee, as well as its
general meeting (EGM) in LINK on September 7th, 2020. The nomination committee’s duties are
to propose candidates for election to the board and to propose remuneration to be paid to such
The nomination committee is in contact with shareholders, the board of directors and the
company’s executive personnel as part of its work on proposing candidates for election to the
board.
LINK fully complies with the Code.
8. Board of directors’ composition and independence
The composition of the board of directors shall ensure that the board can attend to the common
interests of all shareholders and meet the company’s need for expertise, capacity, and diversity.
LINK’s Articles of Association stipulate that the company shall have a board consisting of 5 to 9
members elected by the general meeting. The Articles of Association further determine that the
chairman of the board shall be elected for two years by the general meeting.
The composition of the board of directors shall ensure that it can operate independently of any
special interests. The majority of the shareholder-elected members of the board of directors
Report from the board of directors
71LINK Mobility Group Holding ASA Annual report 2021
LINK fully complies with the Code.
shall thus be independent of the company’s executive personnel and material business
connections. In addition, at least two of the members of the board must be independent of the
company’s major shareholders. For the purposes of the LINK Corporate Governance Policy, a
major shareholder shall mean a shareholder that controls 10% or more of the company’s shares
or votes. Members of the board are, however, encouraged to own shares in the company.
The board of directors does not include executive personnel.
There were 6 members on the board through 2021, 3 women and 4 men. With the exception of
the chairman, who is elected for two years, each board member is elected for one year at the
annual general meeting.
Overview of the Board of Directors
The names and positions of the Board members are set out in the table below.
Name Position Served since Term expires Independence
Jens Rugseth Chairman 2005 2022 -
Robert Joseph Nicewicz Jr Board member 2018 2022 -
Charles Joseph Brucato III Board member 2019 2022 -
Ralph Paul Choufani Board member 2019 2022 -
Katherine Ji-Young Woo Board member 2020 2022 -
Grethe Viksaas Board member 2020 2022 Yes
Sara Murby Forste Board member 2020 2022 Yes
9. The work of the board of directors
The board of directors has issued instructions for its own work and the CEO’s work, the
current version is dated December 7th, 2021. The board and CEO instructions have a particular
emphasis on clear internal allocation of responsibilities and duties.
The instructions state how the board of directors and executive management handle
agreements with related parties, including whether an independent valuation must be obtained,
and that any such agreement will be presented in the annual report.
The board of directors considers any material interests held by board members or executive
personnel. If the chairman should be personally involved in a matter, another board member
would chair the consideration of such matter. No such matters have been managed in 2021.
The board of directors evaluates its performance and expertise annually.
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The board held 31 meetings in 2021 and arranged two general meetings. The average board
meeting attendance by members was 100%.
The Board of directors has set out three sub-committees, as described below. The table shows
the board members’ memberships in the committees
Name
Audit committee
members
Remuneration
committee members
M&A Committee
members
Jens Rugseth
Robert Joseph Nicewicz Jr
Charles Joseph Brucato III
Ralph Paul Choufani
Katherine Ji-Young Woo
Grethe Viksaas
Sara Murby Forste
Audit committee
In accordance with the Public Companies Act, LINK has established an audit committee
consisting of board members who are independent of management, and who are appointed for
board. The current version of the audit committee’s instructions is from December 7th, 2021.
and risk, maintains ongoing contact with LINK’s elected auditor regarding the audit of the annual
accounts and evaluates and monitors the auditor’s independence, and monitors compliance
with legal and regulatory requirements.
Remuneration committee
LINK has a remuneration committee that consists of board members who are independent
of management, and who are appointed for a two-year term. The remuneration committee’s
remuneration committee’s instructions is from September 7th, 2020. The remuneration
committee prepares remuneration guidelines for executive personnel including the main
principles for the company’s remuneration policy. The guidelines are communicated to
the annual general meeting (AGM). The remuneration committee may liaise with external
compensation consultants. The remuneration of senior executives is currently threefold.
incentives linked to share price performance.
Report from the board of directors
73LINK Mobility Group Holding ASA Annual report 2021
M&A committee
LINK has an M&A committee that consists of board members and members of the company’s
board, and it acts as a preparatory and advisory body to support the board in the process of
mergers and acquisitions.
LINK fully complies with the Code.
10. Risk management and internal control
LINK’s risk management and internal control activities are integrated with its corporate strategy
and part of the business planning processes in all areas. The Global Leadership Team (GLT) is
responsible for risk management at LINK, subject to directions and approval from the board of
directors.
Risk management is an integral part of LINK’s business, and it is therefore performed in
cooperation with operative teams in all parts of the organization. The daily management
activities that form part of, and follow, the risk management processes are held by the operative
teams in LINK.
LINK’s audit committee and board are informed of the processes, and the board annually
the basis for management execution, controls, and resource allocation within each risk area.
LINK is in the process of strengthening its internal control as part of its strategy #LINK25, to
ensure compliance in the group, hereunder by extending its abilities to provide support through
tools and resources, and by increasing training and internal audits. LINK’s operative processes
IT and legal & compliance, and each area provides support and information from group level to
for some areas. Policies are accessible to employees at the LINK Intranet, and training is
provided by area.
Please refer to “Risks” in the board of directors report above for an overview of the risk areas.
LINK fully complies with the Code.
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11. Remuneration of the board of directors
in note 8 payroll.
The remuneration of the board of directors is not linked to the company’s performance, and
share options are not granted to members of the board.
LINK fully complies with the Code.
12. Salary and other remuneration for executive personnel
The current guidelines for remuneration of executive management were proposed to the
general meeting in December 2021 and adopted by the board. The guidelines are published and
available on LINK’s website under LINK-ASA-Guidelines-rem-exec-mngmt.pdf (linkmobility.com).
absolute limit.
LINK fully complies with the Code.
13. Information and communication
information based on openness and equal treatment of all stakeholders. The board has
established guidelines for LINK’s contact with shareholders beyond general meetings, including
a dedicated investor relations professional and management meetings in relation to quarterly
reporting.
LINK fully complies with the Code.
14. Takeovers
The board of directors has established guidelines for the event of a take-over bid. In the case
of a bid, the board has an independent responsibility to ensure that shareholders are treated
equally and that business activities are not disrupted unnecessarily. If an offer were to be made
for LINK’s shares, the board would issue a statement making a recommendation as to whether
shareholders should or should not accept the offer. The board will ensure shareholders are
offer will make it clear whether the views expressed are unanimous or specify the basis on
offer will be made by the shareholders in an extraordinary general meeting (EGM).
LINK fully complies with the Code.
Report from the board of directors
75LINK Mobility Group Holding ASA Annual report 2021
15. Auditor
The auditor submits the main features of the plan for the audit of the company to the audit
committee annually, in time for the committee to review before processing by the board.
The auditor is invited to board meetings where the annual accounts are dealt with. At these
meetings, the auditor reports on any material changes in the company’s accounting principles
report all material matters on which there has been disagreement between the auditor and the
executive management of the company.
The board of directors reviews the company’s internal control procedures with the auditor
The board of directors has guidelines in respect of the use of the auditor by the company’s
executive management for services other than the audit.
PWC has been the auditor of LINK since 2019. In the last decade, the group has had 2 auditors.
LINK fully complies with the Code.
Insurance
the members of the Board of Directors, the CEO and group management, in addition to any
employee acting in a managerial capacity. The insurance includes LINK Mobility’s subsidiaries.
The insurance policy is issued by a reputable, specialized insurer with appropriate rating, and
from claims made against them in respect of actual or alleged acts in their capacity as directors
Environmental, social, and governance (ESG)
LINK is committed to maintaining high ethical standards with regard to values and ethics in
order to secure a sound corporate culture and to preserve LINK by helping the employees to
promote standards of good business practice. LINK aspires to be a responsible company in
terms of labor standards and equality and to become leading in terms of ESG. Please refer to
the “Sustainability” section earlier in this report.
Forward looking statement
solutions and products. As LINK expands its go-to-market (GTM) initiatives and launches new
products, demand is expected to support even higher growth. LINK is also executing on its M&A
strategy with several acquisitions closed in Europe and expansion to the U.S. last year.
The global pandemic has been a particular challenge for the retail sector and negative effects
were still observed in the fourth quarter of last year with moderate volumes from retail in
France.
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This has directly reduced LINK’s medium-term growth rate and the pandemic has also delayed
the GTM expansion across the footprint. The adoption of CPaaS products has also been more
incremental in this period than initially assumed.
statement of 14-17% based on current market adoption of CPaaS solutions and GTM roll-out.
Growth rates may however vary between quarters in 2022 as 2021 was impacted by lockdowns,
resulting in high and low comparables. For full-year 2022, the net retention rate is expected to
in H2 2022 with a normal season for high margin critical events messaging in the US. Potential
additional growth through M&A will be accretive to LINK’s valuation and deleveraging or at least
LINK retains its long-term 2024 forward-looking revenue and margin statement and
commitment to its 20% annual growth target in a mature CPaaS market with S-curve adoption of
omnichannel solutions.
The board of directors appreciates and emphasizes uncertainty in relation to assessments of
expected future development.
Forward looking statement
Pro forma revenue
Pro forma adjusted EBITDA margin
2024
10,000
15-17%
Amounts are in million NOK
Ralph Paul Choufani
Board member
Guillaume Alain Van Gaver
Chief Executive Officer
Jens Rugseth
Chairman of the board
Sara Murby Forste
Board member
Charles Joseph Brucato III
Board member
Katherine Ji-Young Woo
Board member
Robert Joseph Nicewicz Jr
Board member
Grethe Helene Viksaas
Board member
Report from the board of directors
77LINK Mobility Group Holding ASA Annual report 2021
Consolidated income statement
For the period ended 31 December
(Amounts in NOK 1000)
Note 2021 2020
Revenue 6 4,410,136 3,539,231
Total operating revenue 4,410,136 3,539,231
Direct cost of services rendered -3,209,707 -2,640,012
Payroll and related expenses 8 -579,045 -404,060
Other operating expenses 9 -316,867 -201,553
Depreciation and amortization 7, 13, 14 -337,706 -271,389
Total operating expenses -4,443,325 -3,517,013
Operating profit (loss) -33,189 22,218
Finance income and finance expenses
Net currency exchange gains (losses) 10 99,745 -101,218
Net interest expense 10 -127,518 -207,093
Net other financial expenses 10 13,291 -118,735
Total finance income (expense) -14,481 -427,047
Loss before income tax -47,670 -404,829
Income tax 22 -29,891 76,823
Loss for the period -77,561 -328,006
Loss attributable to:
Owners of the company -77,561 -328,006
Earnings per share (NOK/share):
Earnings per share (NOK/share): 11 -0.26 -1.21
Diluted earnings per share 11 -0.26 -1.21
The accompanying notes are an integral part of these financial statements.
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Financial statements 2021
Consolidated statement of Comprehensive Income
For the period ended 31 December
(Amounts in NOK 1000)
2021 2020
Profit (loss) for the period
-77,561 -328,006
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences of foreign operations
-113,432 134,373
Gains and losses net investment hedge
Tax on OCI that may be reclassified to P&L
-10,063
Other comprehensive income for the period
-77,753 134,373
Total comprehensive income for the period
-155,314 -193,632
79LINK Mobility Group Holding ASA Annual report 2021
Consolidated statement of financial position
(Amounts in NOK 1000)
2021 2020
ASSETS Note
Goodwill 5, 13 5,614,510 3,982,843
Other intangible assets 5, 13 2,946,506 1,823,494
Deferred tax asset 22 142,944 140,551
Equipment and fixtures 14 20,485 25,083
Right-of-use assets 7 64,398 26,513
Other non-current assets 3,011 1,313
Total non-current assets 8,791,854 5,999,796
Trade and other receivables 15, 18 904,923 748,547
Cash and cash equivalents 16, 18 843,618 952,144
Total current assets 1,748,540 1,700,691
TOTAL ASSETS 10,540,394 7,700,487
EQUITY AND LIABILITIES
Share capital 1,471 1,355
Share premium and other reserves 5,802,356 4,882,513
Accumulated translation differences 181,994 259,748
Retained earnings (accumulated losses) -896,264 -839,718
Total equity 17 5,089,557 4,303,897
Liabilities
Long-term borrowings 18, 19 3,696,470 2,078,515
Lease liabilities 7, 18, 19 45,040 30,624
Deferred tax liabilities 22 556,961 313,090
Other long-term liabilities 18,792 2,398
Total non-current liabilities 4,317,263 2,424,628
Short-term borrowings 18, 19 24,423 27,244
Lease liabilities 7, 18, 19 16,906 8,619
Trade and other payables 18, 21 1,062,618 927,171
Income tax payable 22 29,627 8,928
Total current liabilities 1,133,574 971,963
Total liabilities 5,450,837 3,396,590
TOTAL EQUITY AND LIABILITIES 10,540,394 7,700,487
The accompanying notes are an integral part of these financial statements.
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Financial statements 2021
Ralph Paul Choufani
Board member
Guillaume Alain Van Gaver
Chief Executive Officer
Jens Rugseth
Chairman of the board
Sara Katarina Murby Forste
Board member
Charles Joseph Brucato
Board member
Katherine Ji-Young Woo
Board member
Robert Joseph Nicewicz Jr
Board member
Grethe Helene Viksaas
Board member
The Board of Directors of LINK Mobility Gr oup Holding ASA
81LINK Mobility Group Holding ASA Annual report 2021
Consolidated statement of Changes in Equity
For the period ended 31 December
(Amounts in NOK 1000)
Note
Share
capital
Share
premium
Currency
translation
reserve
Retained
earnings
(accumulated
losses)
Total
equity
Balance at 01 January 2020 1,081 2,725,406 125,374 -511,713 2,340,149
Profit (loss) for the period - - - -328,006 -328,006
Other comprehensive income
(loss) for the period, net of
income tax
Total comprehensive income for
the period
Issue of ordinary shares 286 2,538,146 - - 2,538,432
Redemption of preference shares -13 -411,744 - - -411,757
Share based payment - 30,704 - - 30,704
Balance at 31 December 2020 17 1,355 4,882,513 259,748 -839,718 4,303,897
Balance at 01 January 2021 1,355 4,882,513 259,748 -839,718 4,303,897
Profit (loss) for the period - - - -77,561 -77,561
Other comprehensive income
(loss) for the period, net of
income tax
Total comprehensive income for
the period
Issue of ordinary shares 117 785,339 - - 785,455
Redemption of preference shares - - - - -
Share based payment - 134,505 - - 134,505
Other adjustments - - - 21,015 21,015
Balance at 31 December 2021 17 1,471 5,802,356 181,994 -896,264 5,089,557
The accompanying notes are an integral part of these financial statements.
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Consolidated statement of cash flows
For the period ended 31 December
(Amounts in NOK 1000)
Note 2021 2020
Cash flows from operating activities
Loss before income tax -47,670 -404,829
Adjustments for:
Taxes paid -57,224 -41,431
Finance income (expense) 10 14,483 427,047
Depreciation and amortization 7, 13, 14 337,706 271,389
Share based payment expense 134,505 34,711
Net gain from disposals -88 -
Change in trade and other receivables -115,968 -8,383
Change in trade and other payables 93,529 104,513
Change in other provisions -3,328 -19,185
Net cash flows from operating activities 355,944 363,832
Cash flows from investing activities
Payment for equipment and fixtures 14 -2,506 -9,255
Payment for intangible assets 13 -137,453 -105,817
Payment for acquisition of subsidiary, net of cash acquired 5 -1,869,208 -397,234
Disposal of subsidiary 62 -
Purchase price adjustment acquisition of subsidiary 10 - -147,902
Net cash flows from investing activities -2,009,105 -660,209
Cash flows from financing activities
Proceeds on issue of shares 60,807 2,373,513
Repayment of equity - -411,757
Other financial items 19 - -
Proceeds from borrowings 19 1,670,021 2,687,634
Repayment of borrowings 19 -40,898 -3,259,081
Interest paid -110,076 -243,386
Principal elements of lease payments -11,379 -11,615
Net cash flows from financing activities 1,568,476 1,135,309
Effect of foreign exchange rate changes -23,840 -33,987
Net change in bank deposits, cash and equivalents -108,525 804,946
Cash and equivalents at beginning of period 952,144 147,198
Cash and equivalents at end of the period 843,618 952,144
The accompanying notes are an integral part of these financial statements.
Financial statements 2021
83LINK Mobility Group Holding ASA Annual report 2021
Notes to the financial statements for the period ended
31 December 2021
1 General information
2 Adoption of new and revised International Financial Reporting Standards (IFRS)
3 Summary of significant accounting policies
4 Critical accounting judgments and key sources of estimation variances
5 Business combinations
6 Segment reporting
7 Leases
8 Payroll and related expenses
9 Other operating expenses
10 Net finance income and finance expense
11 Earnings per share
12 Transactions with related parties
13 Intangible assets
14 Equipment and fixtures
15 Trade and other receivables
16 Cash and cash equivalents
17 Share capital and shareholder information
18 Classes and categories of financial instruments
19 Interest-bearing liabilities
20 Financial instruments, risk management objectives, and policies
21 Trade and other payables
22 Income tax
23 Contingencies and legal claims
24 Events after the reporting date
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Financial statements 2021
Note 1 General information
is headhquartered in Oslo , Norway. LINK is Europe ’ s leading pro vider of mobile and CPaaS
100% the LINK subsidiaries. The Group’s subsidiaries as at 31 December 2021 are listed below.
Name of entity Date of
acquisition
Place of business /
country of registration
Ownership
interest
LINK Mobility Group AS 09/10/2018 Oslo, Norway 100 %
LINK Mobility AS 09/10/2018 Oslo, Norway 100 %
LINK Mobility USA AS 27/05/2021 Oslo, Norway 100 %
BK Invest Alpha GmbH¹ 16/11/2020 Vienna, Austria 100 %
LINK Mobility Austria GmbH¹ 16/11/2020 Graz, Austria 100 %
Simple SMS GmbH 09/10/2018 Wels, Austria 100 %
Allterpay EOOD 29/07/2019 Sofia, Bulgaria 100 %
Tera Communications AD 29/07/2019 Sofia, Bulgaria 100 %
Teravoice EAD 29/07/2019 Sofia, Bulgaria 100 %
Link Mobility Development Hub EOOD 30/9/2016 Sofia, Bulgaria 100 %
LINK Mobility EAD 09/10/2018 Sofia, Bulgaria 100 %
LINK Mobility Holding Aps 11/03/2020 Copenhagen, Denmark 100 %
LINK Mobility A/S 09/10/2018 Copenhagen, Denmark 100 %
LINK Mobile A/S 09/10/2018 Copenhagen, Denmark 100 %
MarketingPlatform Aps 07/06/2021 Vejen, Denmark 100 %
LINK Mobility SIA 17/03/2020 Tallinn, Estonia 100 %
LINK Mobility Oy 09/10/2018 Tampere, Finland 100 %
Labyrintti International Oy 09/10/2018 Tampere, Finland 100 %
Inwave SAS 30/08/2019 Le Coteau, France 100 %
LINK Mobility SAS 09/10/2018 Paris, France 100 %
Multiwizz SAS 20/11/2018 Marseille, France 100 %
Netsize S.A. 09/01/2019 Boulogne- Billancourt, France 100 %
LINK Mobility GmbH 09/10/2018 Hamburg, Germany 100 %
GfMB Gesellschaft für Mobiles Bezahlen 09/10/2018 Hamburg, Germany 100 %
LINK Mobility Hungary Kft.² 08/12/2018 Budapest, Hungary 100 %
LINK Mobility Italia Srl³ 09/10/2018 Milan, Italy 100 %
Netsize Societa’ A Responsabilita’ Limitada7 09/01/2019 Rome, Italy 100 %
AMM S.p.A. 31/05/2021 Arezzo, Italy 100 %
Matelab Srl 15/12/2021 Lecco, Italy 100 %
LINK Mobility SIA 09/10/2018 Riga, Latvia 100 %
85LINK Mobility Group Holding ASA Annual report 2021
Name of entity Date of
acquisition
Place of business /
country of registration
Ownership
interest
Tismi B.V. 10/03/2021 Bunnik, Netherlands 100 %
Tismi Mobile B.V. 10/03/2021 Bunnik, Netherlands 100 %
LINK Mobility Sp.z.o.o 09/10/2018 Gliwize, Poland 100 %
Razvoen Centar na eMailPlatfor DOOEL 07/06/2021 Kumanovo, Republic of North
Macedonia
100 %
Tera Communications DOOEL 29/07/2019 Skopje, Republic of North
Macedonia
100 %
LINK Mobility SRL 02/10/2017 Bucharest, Romania 100 %
Teracomm RO SRL 29/07/2019 Bucharest, Romania 100 %
LINK Mobility Spain S.L.U. 09/10/2018 Madrid, Spain 100 %
Altiria TIC Sociedad Limitada 14/12/2021 Madrid, Spain 100 %
LINK Mobility AB 09/10/2018 Stockholm, Sweden 100 %
Netsize Internet Payment Exchange AB 09/01/2019 Stockholm, Sweden 100 %
Horisen Messaging AG 09/10/2018 Rorschash, Switzerland 100 %
LINK Mobility UK Limited 14/12/2018 Edinburgh, Scotland 100 %
Netsize UK Ltd. 09/01/2019 London, United Kingdom 100 %
Message Broadcast LLC 24/06/2021 Newport Beach, USA 100 %
¹ Collectively referred to as the WebSMS group or WebSMS. Sms.at Mobile Internet Services
GmbH has become LINK Mobility Austria GmbH.
² Formerly Dream Interactive Ltd.
³ Archynet s.r.s. and SMS IT Srl were merged on 01.01.2021 to become LINK Mobility Italia Srl.
Formerly Hay Systems Ltd.
Netsize Espana S.L.U. is merged with LINK Mobility Spain S.L.U. on 31 December 2021.
LINK Mobility EAD and Teravoice EAD are merged with Tera Communications AD on 27
January 2022.
Netsize Societa’ A Responsabilita’ Limitada is merged with LINK Mobility Italia Srl on 31
December 2021.
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Financial statements 2021
Note 2 Adoption of new and revised International Financial Reporting
Standards (IFRS)
A number of amended IFRS standards issued by the International Accounting Standards Board
(IASB) and IFRS interpretations issued by the IFRS Interpretations Committee (IFRS IC) are
effective for accounting periods commencing on or after 01 January 2021. The requirements
arising from revised IFRSs or IFRIC interpretations are embedded in the recognition,
from the date of establishment. The accounting policies adopted are described in Note 3
Standards and interpretations affecting amounts reported in the current period
The accounting policies adopted, and methods of computation followed are consistent with
following standards and interpretations has not had any material impact on the disclosures or
y Amendment to IFRS 16 concerning COVID-19-Related Rent Concessions beyond 30 June
2021
y Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark
Reform – Phase 2
New or amended standards that have effective date on 1 January 2023 or later have not been
period of initial application. Management will continue to follow the development of changes to
Standards and Interpretations issued by the IASB throughout 2022.
Note 3 Summary of signicant accounting policies
3.1 General information
LINK Mobility Group Holding ASA (“the Company”) is a limited liability Company incorporated
Norway. LINK Mobility Group Holding ASA is the parent company of the LINK Mobility Group AS.
LINK Mobility Group AS provides services in mobile communication and specialises in mobile
messaging services, mobile solutions, and mobile intelligence. LINK Mobility Group Holding
ASA and its subsidiaries are regarded as “the Group”.
Minor rounding differences may be present, and the total may deviate from the total of the individual
87LINK Mobility Group Holding ASA Annual report 2021
3.2 Basis for preparation
International Financial Reporting Standards (IFRS) as issued by the International Accounting
been prepared on the historical cost basis.
critical accounting estimates. It also requires management to exercise its judgments in applying
the Group’s accounting policies. Areas involving a high degree of judgment or complexity,
disclosed in Note 4 Critical accounting judgements and key sources of estimation variances.
rounded to nearest thousand, unless otherwise stated.
3.3 Principles of consolidation
and its subsidiaries, which are entities controlled by the Company. Control is achieved when
the Group has power over the investee, is exposed, or has rights to, variable returns from its
involvement with the investee, and has the ability to use its power to affect its returns through
its power over the investee. The Group reassesses whether it controls an investee if facts and
circumstances indicate that there are changes to one or more of the three elements of control
noted above.
the parent company and consistent accounting policies are applied. The results of subsidiaries
acquired or disposed of during the year are included in the income statement from the date
when control is obtained and until control ceases, respectively. Intercompany transactions,
balances, revenues, expenses and unrealised Group internal gains or losses are eliminated on
consolidation.
The presentation currency of the financial statement is Norwegian kroner (NOK). Amounts are
rounded to nearest thousand, unless otherwise stated.
3.4 Business combinations
Business combinations are accounted for using the acquisition method. The consideration
exceptions measured at fair values at the date of acquisition. Acquisition-related costs are
recognised in the income statement as incurred.
Goodwill arising from an acquisition is recognised as an asset measured as the excess of the
sum of the consideration transferred, the fair value of any previous held equity interest and the
assets acquired and the liabilities assumed. If, after reassessment, the Group’s interest in the
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total consideration of the business combination, the excess is immediately recognised in the
income statement. Goodwill is allocated to each of the Group’s cash-generating units (or groups
recoverable amount of the cash-generating unit is less than its carrying amount, the impairment
goodwill is not reversed in subsequent periods.
When the consideration transferred by the Company in a business combination includes
contingent consideration arrangements, the contingent consideration is measured at its
acquisition date fair value and included as part of the consideration transferred in a business
combination. Changes in fair value of the contingent consideration that qualify as measurement
period adjustments are adjusted retrospectively, with corresponding adjustments recognised in
goodwill. Measurement period adjustments arise from additional information obtained during
the ‘measurement period’ (which cannot exceed one year from the acquisition date) about
facts and circumstances that existed at the acquisition date. The subsequent accounting for
changes in the fair value of the contingent consideration that do not qualify as measurement
its subsequent settlement is accounted for within equity. Other contingent consideration is
remeasured to fair value at subsequent reporting dates with changes in fair value recognised in
If the initial accounting for a business combination is incomplete by the end of the reporting
period in which the combination occurs, the Group reports provisional amounts for the items
for which the accounting is incomplete. Those provisional amounts are adjusted during the
information obtained about facts and circumstances that existed as of the acquisition date that,
if known, would have affected the amounts recognised as of that date.
3.5 Current/non-current classication
consumption, in the Group’s normal operating cycle, it is expected/due to be realised or settled
cycle, the liability is due to be settled within twelve months after the reporting period or if the
Group does not have an unconditional right to defer settlement of the liability for at least twelve
3.6 Revenue recognition
Revenues are recognised when services are rendered and measured based on the consideration
to which the Group expects to be entitled in a contract with a customer net of discounts and
sales related taxes. The Group recognises revenue when it transfers control of a product or
service to a customer.
Financial statements 2021
89LINK Mobility Group Holding ASA Annual report 2021
When another party is involved in providing goods or services to a customer, the Group
principle) or to arrange for those services to be provided by the other party (i.e. the Group is the
agent). Where the Group does not control the service, the Group is considered an agent in the
transaction.
Revenues primarily comprise sale of services that enable customers to communicate by mobile
phone with their customers. To be able to render these services, the Group needs to obtain
services from one or more telecommunication operators. Cost incurred that are directly related
are expensed in the period in which the related revenue is recognised.
The services rendered are split into the following groups:
Type of service Timing of recognition Measurement of revenue
Mobile messaging
transactions
The Group provides mobile messaging services
via SMS and other messaging channels such
as Apps, Facebook, Messenger, WhatsApp and
email. Revenue from messaging is recognised
when the message service has been provided;
when the messages are delivered to the
recipient.
The revenue is based on the
price specified in the sales
contract, net of discounts and
value added tax.
Payment services The Group offers payment solutions where
the customer can get their customers (the end
users) to pay for services by charging their
mobile phone account or credit/debit card. As
payment for these services, the Group is entitled
to remuneration related to the processed
transactions/payment. Revenue is recognised
when the payment service is rendered.
The Group acts as an agent
for this type of service and
the performance obligation
is to arrange for the provision
of services by another party.
Consequently, only the income
from the processed transactions
is recognised as revenue.
Licences License revenue consists of revenue from
monthly fees paid by customers for access to
Group platforms and solutions. No proprietary
rights are transferred to the customer. The
revenue is recognised throughout the duration
of the license agreement.
The revenue is based on the
price specified in the sales
contract, net of discounts and
value added tax.
Consulting services Revenue from consulting services is recognised
in the accounting period during which the
services are rendered.
The revenue is based on the
price specified in the sales
contract, net of discounts and
value added tax.
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Financial statements 2021
3.7 Foreign currency translation
currencies other than the entity’s functional currency are recognised at the rate of exchange
on the date of the transaction. At each reporting date, monetary assets and liabilities that are
denominated in foreign currencies are retranslated at the balance sheet date. Non-monetary
items carried at fair value in foreign currencies are translated using the exchange rate at the
date when the fair value was measured. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated after the transaction date.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents
and losses are presented on a net basis in the income statement as other operating expenses.
Exchange differences are recognised in the income statement in the period in which they arise.
the Group’s foreign operations are translated to NOK at exchange rates on the reporting date.
Income and expense items are translated to NOK at the average exchange rates for the period,
rates at the date of transactions are used. Exchange differences arising, if any, are recognised in
other comprehensive income and accumulated in a separate component of equity.
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are
considered as assets and liabilities of the foreign entity and translated at the closing rate. These
exchange differences are recognised in other comprehensive income.
On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign
operation), or a disposal involving loss of control over a subsidiary that includes a foreign
operation, all of the exchange differences accumulated in a separate component of equity in
the income statement. In addition, in relation to a partial disposal of a subsidiary that includes
a foreign operation that does not result in the Group losing control over the subsidiary, the
proportionate share of accumulated exchange differences is re-attributed to non-controlling
3.8 Intangible assets
Goodwill and intangible assets acquired in a business combination are recognised initially as
set out in 3.4 Business Combinations above.
Amortisation of intangible assets are based on the following estimated useful lives:
Goodwill Indefinite
Tradename 25 year
Customer relations/contracts 7-10
Technology 3-10 years
91LINK Mobility Group Holding ASA Annual report 2021
Goodwill is not amortised but is reviewed for impairment at least annually, or more frequently
when there is an indication that the cash-generating unit to which goodwill has been allocated,
may be impaired. Goodwill is allocated to each of the Group’s cash-generating units (or groups
recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the
unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each
asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent
period. On disposal of a cash generating unit, the attributable amount of goodwill is included in
the determination of the gain or loss on disposal in the income statement.
Intangible assets acquired in a business combination and recognised separately from goodwill,
such as Tradename and Customer relations are recognised initially at their fair value at the
acquisition date (which is regarded as their cost).
Subsequent to initial recognition, intangible assets acquired in a business combination
are reported at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised on a straight-line basis over their estimated useful lives. The
estimated useful life and amortisation method are reviewed at the end of each reporting
period, with the effect of any changes in estimate being accounted for on a prospective basis.
losses.
Separately acquired intangible assets
are carried at cost less accumulated amortisation and accumulated impairment losses.
Subsequent to initial recognition, separately acquired intangible assets are reported at cost
less accumulated amortisation and accumulated impairment losses, on the same basis as
intangible assets that are acquired in a business combination.
Internally generated intangible assets – Technology
Expenditure on research and development activities is recognised as an expense in the period
in which it is incurred. An internally generated intangible asset arising from development of
the Group’s technical platforms and products is recognised if, and only if, all the following
conditions have been demonstrated:
y the technical feasibility of completing the intangible asset so that it will be available for use
or sale;
y the intention to complete the intangible asset and use or sell it;
y the ability to use or sell the intangible asset;
y how the intangible asset will generate probable future economic benefits;
y the availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset; and
y the ability to measure reliably the expenditure attributable to the intangible asset during its
development.
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The amount initially recognised for internally generated intangible assets is the sum of the
listed above. Where no internally generated intangible asset can be recognised, development
expenditures are expensed as incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at cost
less accumulated amortisation and accumulated impairment losses, on the same basis as
intangible assets that are acquired in a business combination.
3.9 Equipment and xtures
(including duties and non-refundable purchase taxes) and any directly attributable costs of
bringing the asset to the location and condition necessary for it to be able to operate in the
depreciation and accumulated impairment losses, if any. Depreciation is recognised using the
straight-line method to reduce the cost of assets less their residual values over their useful
lives. Depreciation commences when the assets are ready for their intended use.
Estimated useful life, depreciation method and residual values are reviewed at least annually.
assets, which often is the passage of time. Residual value is estimated to be zero for all assets.
Repair and maintenance are expensed as incurred. If new parts are capitalised, replaced parts
as loss on disposal.
An item of property, plant and equipment is derecognised upon disposal or when no future
difference between the sales proceeds and the carrying amount of the asset and is presented
as other income or other expenses in the income statement.
3.10 Impairment of non-nancial assets
At each reporting date, the Group reviews if there are any indicators that the carrying amounts
of its tangible and intangible assets may be impaired. If any such indication exists, the
recoverable amount of the asset is estimated to determine the extent of the impairment loss
the Group estimates the recoverable amount of the cash-generating unit to which the asset
assets are also allocated to individual cash-generating units, or otherwise they are allocated to
the smallest group of cash-generating units for which a reasonable and consistent allocation
annually and whenever there is an indication that the asset may be impaired.
Financial statements 2021
93LINK Mobility Group Holding ASA Annual report 2021
Recoverable amount is the higher of fair value less costs of disposal and value in use. In
been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised immediately in the income statement.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-
generating unit) is increased to the revised estimate of its recoverable amount, but so that
the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset (or cash-generating unit) in
the relevant asset is carried at a revalued amount, in which case the reversal of the impairment
loss is treated as a revaluation increase. Any impairment loss recognised for goodwill is not
reversed in a subsequent period.
3.11 Leases
At the inception of a contract, the company assesses whether the contract is, or contains,
a lease. A contract is, or contains, a lease if the contract conveys the right to control the
liability is recognized at the commencement date and measured at the present value of the
remaining lease payments, discounted using the company’s incremental borrowing rate at
the commencement date. The lessee’s incremental borrowing rate is the rate of interest that
a lessee would have to pay to borrow over a similar term, and with similar security, the funds
necessary to obtain an asset of a similar value of the right-of-use asset in a similar economic
environment.
The Group has chosen to measure the Right-of-Use asset (RoU assets) at an amount equal
to the lease liability for all leases by using the lessee’s incremental borrowing rate; the rate
may differ from country to country. RoU assets are depreciated over the lease term as this
is ordinarily shorter than the useful life of the assets. The lease term represents the non-
cancellable period of the lease, together with periods covered by an option either to extend or to
terminate the lease when the company is reasonably certain to exercise this option. The Group
applies the exemption for short term leases (12 months or less) and low value leases. As such,
related lease payments are not recognized in the balance sheet but expensed or capitalized in
line with the accounting treatment for other non-lease expenses. The inclusion of non-lease
components may vary across different lease categories.
3.12 Government grants
The Group receives Government grant as part of the “Skattefunn” arrangement in Norway, which
is an arrangement to stimulate research and development in Norway. The government grant is
initially recognised as a deduction to the carrying amount of the relevant asset. The amount is
subsequently recognised to the income statement on a straight-line basis over the estimated
useful life of the related asset.
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3.13 Financial Instruments
through other comprehensive income (FVTOCI) and Financial liability at cost (FLAC). Currently
trade and other receivables (FAAC), cash and cash equivalents, trade and other payables (FLAC),
and borrowings (FLAC).
Trade receivables and other current and non-current nancial assets
impairment model in IFRS 9 Financial Instruments requires the recognition of impairment
provisions based on expected credit losses (ECL). The Group recognises an allowance for
expected credit losses on trade receivables. The amount of expected credit losses is updated at
calculated by taking into account the historic evidence of the level of credit losses experienced
management assesses them not to be wholly or partially collectible.
Cash and cash equivalents
Cash and cash equivalents include cash, bank deposits and commercial papers with original
maturities of three months or less.
Financial liabilities
Trade and other payables include trade payables and other current and non-current, non-
value (net of any transaction costs), and subsequently measured at amortised cost using the
effective interest rate method.
allocation of interest expense over the relevant period. The effective interest rate is the rate
that discounts estimated future cash payments, including all fees and points paid or received
that form an integral part of the effective interest rate, transaction costs and other premiums
95LINK Mobility Group Holding ASA Annual report 2021
discharged, cancelled, or have expired. The difference between the carrying amount of the
loss.
3.14 Cash ow
include both cash and non-cash line items. Interest received and paid, and dividends received,
are reported as a part of operating activities. Dividends distributed are included as a part of
behalf of authorities.
3.15 Employee benets
entity (insurance company). The Group has no legal or constructive obligations to pay further
expense when employees have rendered service entitling them to the contributions. Prepaid
contributions are recognised as an asset to the extent that a cash refund or a reduction in the
future payments is available.
3.16 Taxation
Income tax expense represents the sum of the current and deferred income tax. The income tax
expense is recognised in the income statement unless the tax effect relates to items recognised
in other comprehensive income or directly in equity, in which case the tax effect is recognised in
other comprehensive income or in equity, respectively.
Current tax is the expected tax expense on the taxable income for the year, using tax rates and
laws which have been enacted or substantively enacted at the balance sheet date.
Deferred tax assets and liabilities are recognised, using the balance sheet method, for
reporting purposes and the amount used for taxation purposes. Deferred tax assets are
recognised for the carry forward of unused tax losses and unused tax credits. Deferred tax is
not recognised for temporary differences arising on initial recognition of assets or liabilities in a
transaction that is not a business combination and that affects neither accounting nor taxable
that they will not reverse in the foreseeable future. In addition, deferred tax is not recognised for
taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary
differences when they reverse, based on the laws that have been enacted or substantively
enacted at the reporting date. Deferred tax assets and liabilities are not discounted. A deferred
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available against which the temporary differences, tax losses carried forward and unused tax
credits can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced
all or part of the asset to be realised.
Tax positions are regularly reviewed to identify situations where it is not probable that the
are considered independently or as a group, depending on which approach better predicts
re resolution of uncertainty. If the Group concludes that it is not probable that the taxation
determining tax treatment. This is done by using either the most likely amount or the expected
value, depending on which method better predicts the outcome of the uncertainty. Uncertain tax
treatment can affect both current tax and deferred tax.
Current tax assets and current tax liabilities are offset when the legal right to offset exists and
the Group intends to either settle the tax assets and the tax liability net or recover the asset and
settle the liability simultaneously. Deferred tax assets and deferred tax liabilities are generally
offset if there is a legally enforceable right to offset current tax assets and current tax liabilities.
before tax because it excludes items of income or expense that are taxable or deductible in
other years and it further excludes items that are never taxable or deductible. The Group’s
current tax liability is calculated using tax rates that have been enacted or substantively enacted
by the end of the reporting period.
A provision is recognised for those matters for which the tax determination is uncertain, but it is
are measured at the best estimate of the amount expected to become payable.
Deferred tax is recognized based on temporary differences between the carrying amounts
Deferred tax liabilities are generally recognised for all taxable temporary differences and
deferred tax assets arising from deductible temporary differences are recognized to the extent
differences can be utilized. The carrying amount of deferred tax assets is reviewed at each
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in
the period in which the liability is settled or the asset realized, based on tax rates that have been
enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied by
the same taxation authority and the Group intends to settle its current tax assets and liabilities
on a net basis.
97LINK Mobility Group Holding ASA Annual report 2021
are recognised in other comprehensive income or directly in equity, in which case, the current
and deferred tax are also recognised in other comprehensive income or directly in equity
respectively. Where current tax or deferred tax arises from the initial accounting for a business
combination, the tax effect is included in the accounting for the business combination.
Note 4 Critical accounting judgements and key sources of
estimation variances
In the application of the Group’s accounting policies, as described in note 3 (summary of
assumptions that affect the reported amounts of assets and liabilities, income and expenses.
Estimates and judgements are evaluated on an ongoing basis and are based on historical
experience and other factors, including expectations of future events that are considered to be
relevant. Future events may cause these estimates to change and actual results may differ from
these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Changes in accounting estimates are recognised in the period when the changes occurred,
if they apply to that period. If the changes also apply to future periods, the effect will be
distributed between the current period and future periods.
Business combinations
for further details. In order to account for the business combinations and determine the fair
value of the underlying assets and liabilities in accordance with IFRS 3, management has used
acquired companies. The reconciliation is performed via a Business Enterprise Valuation (BEV).
Intangible assets have been valued using the Multi Excess Earnings Method (“MEEM”) and
Relief From Royalty Method (“RFR”). The methods are considered to be appropriate for the type
of assets being valued (MEEM for customer relationships and RFR for technology and trade
is recognised as goodwill.
y The remaining estimated useful life of customer relationships is between 7 and 10 years
y The remaining estimated useful life of technology is 10 years
y Revenue growth and EBITDA (earnings before interest, tax, depreciation and amortisation)
margins are based on estimates of growth and margins in the respective companies
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Estimated impairment of goodwill and other intangible assets
The carrying amounts of non-current tangible and intangible assets are assessed by means of
impairment tests whenever there is an indication of impairment. Any impairment of goodwill
is assessed at least annually. The recoverable amounts of cash-generating units have been
determined based on value-in-use calculations. These calculations require management to
discount rate in order to calculate present value. As of 31 December 2021, the amount of
goodwill tested for impairment amounted to KNOK 5 614 510 (FY2020 - KNOK 3 982 843). No
impairment losses were recognised in FY2021 (FY2020 - nil). Please refer to notes 3 (summary
impairment testing methodology and results.
Deferred tax assets
Management judgment is required in determining provisions for income taxes, deferred tax
assets and liabilities and the extent to which deferred tax assets can be recognized. The Group
is also subject to income taxes in various jurisdictions. Judgment is required in determining the
Group’s provision for income taxes. There may be transactions and calculations for which the
tax outcome of these matters is different from the amounts that were initially recorded, such
differences will impact the income tax and deferred tax liability and expense in the period in
which such determination is made.
Purchase price of subsidiaries – earn-out
Periodically, the Group acquires subsidiaries where the preliminary purchase price is based on
based on the company’s actual achieved EBITDA. The earn-out adjustment is accounted for in
99LINK Mobility Group Holding ASA Annual report 2021
Note 5 Business combinations
Acquisitions during
the period 2021
Main business activity Date of business
combination
Proportion of
voting equity
acquired
Acquiring
entity
Tismi B.V.
Tismi Mobile B.V.
Provider of mobile
messaging services
and mobile solutions
10 March 2021 100% LINK Mobility
Group AS
AMM S.p.A.
LeadBI Srl
Provider of mobile
messaging services
and mobile solutions
31 May 2021 100% LINK Mobility
Group AS
MarketingPlatform Aps Provider of mobile
messaging services
and mobile solutions
07 June 2021 100% LINK Mobility
Group AS
Message Broadcast LLP Provider of mobile
messaging services
and mobile solutions
24 June 2021 100% LINK Mobility
Group AS
Altiria TIC, S.L. Provider of mobile
messaging services
and mobile solutions
14 December 2021 100% LINK Mobility
Group AS
Matelab Srl Provider of mobile
messaging services
and mobile solutions
15 December 2021 100% LINK Mobility
Group AS
Acquisition of Tismi B.V. and Tismi Mobile B.V.
On 10 March 2021, LINK Mobility Group AS acquired 100% of the voting equity instruments of
Tismi B.V. and Tismi Mobile B.V. These entities are headquartered in Bunnik, Netherlands and
are collectively referred to as Tismi.
The purchase price is a combination of cash upon closing, shares upon closing, and seller’s
credit.
Tismi is a provider of telecommunications services and products and holds licensed operator
status in 8 European countries. The company’s main business is comprised of providing virtual
CPaaS providers.
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Acquisition of AMM S.p.A.
On 31 May 2021, LINK Mobility Group AS acquired approximately 81.4% of the shares in AMM
S.p.A. (AMM) and immediately exercised a squeeze-out process, pursuant to Italian rules,
for the remaining ordinary shares. All outstanding shares were acquired in Q3 2021. AMM is
headquartered in Arezzo, Italy.
The purchase price is settled in cash and shares upon closing. There is no earn-out amount
related to this acquisition.
AMM operates within mobile marketing and web advertising, and the product offering includes
SMS A2P, email services, and chatbots. AMM serves close to 3500 enterprise and SME
customers throughout Italy through direct sales and a self sign-up (SSU) platform.
Acquisition of MarketingPlatform Aps
On 07 June 2021, LINK Mobility Group AS acquired 100% of the voting equity instruments of
MarketingPlatform Aps (MarketingPlatform). This entity is headquartered in Vejen, Denmark.
The purchase price is settled in cash and shares upon closing. The remainder of the purchase
price based on an estimated earn-out amount.
MarketingPlatform is a developer of an omnichannel marketing platform with an integrated
customer data platform (CDP).
Acquisition of Message Broadcast LLC
On 24 June 2021, LINK Mobility Group AS acquired 100% of the shares in the privately owned
Message Broadcast LLC (Message Broadcast). Message Broadcast is headquartered in
Newport Beach, California, USA.
Upon closing, the purchase price is settled in cash and shares.
Message Broadcast is a leading provider of mission critical customer engagement solutions to
blue chip enterprise customers in the USA.
Acquisition of Altiria TIC, S.L.
On 14 December 2021, LINK Mobility Group AS acquired the Spanish self sign-up (SSU)
company of Altiria TIC, S.L. (Altiria). Altiria is headquartered in Madrid, Spain.
Upon closing, the purchase price is settled in cash and shares.
Alteria was founded in 2002 and is active in the A2P market in Spain as well as other Spanish
speaking countries, through its web-based go-to market business model.
101LINK Mobility Group Holding ASA Annual report 2021
Acquisition of Matelab Srl
On 15 December 2021, LINK Mobility Group AS acquired 100% of Matelab Srl (Matelab).
Matelab is headquartered in Lecco, Italy.
Upon closing, the purchase price is settled in cash.
Matelab’s core offerings are the proprietary advanced conversational AI and NPL-driven
software, including advanced conversational chatbox Xenioo, and the customer support
software system xDesk. Xenioo currently operates over 22,000 chatbots, handles over 10 million
messages monthly, and supports over 260,000 conversations per month. This acquisition
strengthens LINK’s omnichannel offering through enhanced conversational messaging
capabilities with Contact Centre as a Service (CCaaS) and chatbot competencies.
Revenue and net profit, in the period from the date of acquisition until 31 December 2021:
(Amounts in NOK 1 000) Tismi AMM S.p.A. Marketing
Platform
Message
Broadcast
Altiria
TIC, S.L.
Matelab
Srl
Revenue 60,064 109,536 7,430 119,502 - -
EBITDA 15,102 10,211 (3,689) 58,127 - -
Net profit 9,309 6,192 (8,930) 32,411 - -
Estimated revenue and net profit, as if the acquisition had occurred 01 January 2021
(Amounts in NOK 1 000) Tismi AMM S.p.A. Marketing
Platform
Message
Broadcast
Altiria
TIC, S.L.
Matelab
Srl
Revenue 68,885 166,158 13,508 219,036 19,917 2,646
EBITDA 17,688 16,353 (8,009) 112,068 3,889 2,103
Consideration transferred
(Amounts in NOK 1 000) Tismi AMM S.p.A. Marketing
Platform
Message
Broadcast
Altiria
TIC, S.L.
Matelab
Srl
Cash 67,171 129,502 32,276 1,629,915 14,651 16,712
Share consideration ¹ 67,171 62,069 75,309 579,618 14,651 -
Vendor loan ² 67,171 - - - - -
Earn-out ³ - - 30,071 - - 3,068
Total consideration 201,512 191,571 137,655 2,209,534 29,303 19,780
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¹ Share consideration
As part of the consderation, LINK Mobility Group Holding ASA issued 1,226,637 ordinary shares
to the sellers of Tismi. The shares were issued at a fair value of NOK 54.76 per share.
As part of the consderation, LINK Mobility Group Holding ASA issued 1,687,589 ordinary shares
to the sellers of AMM. The shares were issued at a fair value of NOK 36.78 per share.
As part of the consderation, LINK Mobility Group Holding ASA issued 1,723,310 ordinary shares
to the sellers of MarketingPlatform. The shares were issued at a fair value of NOK 43.70 per
share.
As part of the consderation, LINK Mobility Group Holding ASA issued 16,755,069 ordinary
shares to the sellers of Message Broadcast. The shares were issued at a fair value of NOK
33.88 per share.
As part of the consderation, LINK Mobility Group Holding ASA issued 713,186 ordinary shares to
the sellers of Altiria. The shares were issued at a fair value of NOK 20.37 per share.
² Vendor loan
One third of the purchase price is settled by way of a vendor loan; interest shall accrue with 3.5%
per annum. This loan serves as security for any claims against the lender (Tismi) under the SPA
and such claims, if any, shall be deducted from the outstanding balance upon repayment.
³ Earn-out
performance milestones.
anniversaries after the closing of the transaction. Each stability payment is equal to €150,000.
Identiable assets and liabilities recognised on the date of the business combination
Assets assumed in connection with the business combinations have been recognised at the
technology and customer relations as major assets.
Note that the estimates are provisional and may be subject to change during the measurement
period, which is one year from the date of the acquisition.
103LINK Mobility Group Holding ASA Annual report 2021
(Amounts in NOK 1 000) Tismi AMM S.p.A. Marketing
Platform
Message
Broadcast
Altiria
TIC, S.L.
Matelab
Srl
Customer relationships 74,633 45,806 - 887,328 6,689 -
Trademark - 7,575 - - - -
Technology 12,962 16,139 160,575 82,082 1,347 15,393
Deferred tax asset - 1,248 - - 1,803 -
Equipment and fixtures 378 120 - - 8 -
Other non-current assets - 9,249 - 186 44 -
Trade and other receivables 11,055 40,520 1,595 28,913 1,953 301
Cash and cash equivalents 3,430 39,666 (7,808) 12,552 4,388 1,457
Long-term borrowings* - (11,956) (16,139) - - -
Deferred tax liability (21,899) (14,242) (35,327) (203,576) (1,672) (3,694)
Other long-term liabilities - (2,485) - - - -
Trade and other payables (10,334) (36,277) (6,618) (13,511) (2,703) (30)
Income tax payable (226) (993) - - - (409)
Fair value of identifiable
net assets acquired
70,000 94,370 96,279 793,974 11,857 13,017
* External debt held by the target company is settled subsequent to acquisition. Due to timing of any
given acquisition, this may not be reflected at the financial reporting date.
Goodwill
(Amounts in NOK 1 000) Tismi AMM S.p.A. Marketing
Platform
Message
Broadcast
Altiria
TIC, S.L.
Matelab
Srll
Consideration transferred 201,512 191,571 137,655 2,209,534 29,303 19,780
Fair value of identifiable net
assets acquired
70,000 94,370 96,279 793,974 11,857 13,017
Goodwill 131,512 97,201 41,376 1,415,559 17,446 6,763
Goodwill originating from the business combination is primarily related to anticipated synergies from
ongoing operations and the benefit of integrating the entire business into the group. No impairment has
been recognised subsequent to the business combination.
Goodwill that has arisen as part of the business acquisition is not tax deductible.
Acquisition related expenses
(Amounts in NOK 1 000) Tismi AMM S.p.A. Marketing
Platform
Message
Broadcast
Altiria
TIC, S.L.
Matelab
Srl
Incurred 2021 3,633 7,509 2,963 28,727 464 -
Total 3,633 7,509 2,963 28,727 464 -
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Note 6 Segment reporting
(Amounts in NOK 1000)
The Group reports revenue, gross margin (revenue less direct costs) and adjusted EBITDA in
functional operating segments to the Board of Directors (the Group’s chief operating decision
makers). While LINK uses all four measures to analyze performance, the Group’s strategy of
to alternate performance measures).
An examination of operating units based on market maturity and product development as well
Europe, Central Europe, Northern America and Global Messaging; these represent market
clusters. Generally, regions are segregated into similar geographic locations as these follow
The regions are:
Northern Europe
Northern Europe is comprised of Norway, Sweden, Denmark, Finland, and the Baltics.
Central Europe
Central Europe is comprised of Bulgaria, Romania, North Macedonia, Poland, Hungary, Germany,
Austria, and the Netherlands.
Western Europe
Western Europe is comprised of Spain, France, the United Kingdom, and Italy.
Global Messaging
alone business or as a component of revenues in countries included above. If a business is
comprised of both enterprise and wholesale/aggregator transactions, the latter is segregated
here. The Swiss operation Horisen Messaging is included here.
that use LINK connections in markets where they do not have such connections themselves.
This business can generally be referred to, at least partly, as a direct competitor that use LINK
Messaging and as such they are still subject to local handling (not a focus area though because
they are generally low margin and switch easily).
105LINK Mobility Group Holding ASA Annual report 2021
Revenue per segment 2021 2020
Northern Europe 1,333,080 1,169,382
Central Europe 1,075,264 765,980
Western Europe 1,251,425 1,125,316
North America 119,502 -
Global Messaging 630,866 478,553
Total 4,410,136 3,539,231
Gross profit per segment 2021 2020
Northern Europe 381,904 350,957
Central Europe 360,094 218,603
Western Europe 285,686 276,462
North America 108,937 -
Global Messaging 63,808 53,198
Total 1,200,429 899,220
Adjusted EBITDA per segment 2021 2020
Northern Europe 241,137 240,485
Central Europe 241,614 129,283
Western Europe 139,421 127,826
North America 65,692 -
Global Messaging 33,601 27,150
Group Costs -164,806 -133,902
Total 556,660 390,842
Reconciliation of adjusted EBITDA to Group
profit (loss) before income tax
2021 2020
Adjusted EBITDA 556,659 390,842
Non-recurring items* -252,142 -97,235
Depreciation and amortization -337,706 -271,389
Operating profit -33,189 22,218
Finance income (expense) -14,481 -427,047
Total -47,670 -404,829
*Non-recurring items
Non-recurring items is comprised of amounts that relate entirely to the company. Costs related to mergers
and acquisitions, personnel cost deemed to be non-recurring (or one-off), restructuring expenses, advisors,
and licenses are included in this reconciliation line item (this list is not exhaustive).
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Disaggregation of revenue
The Group’s operations are conducted through its subsidiaries in the countries listed below.
The Group derives its revenue from contracts with customers for the transfer of services as
Revenue per business line 2021 2020
Mobile messaging transactions 4,103,926 3,325,620
Payment services 30,676 35,414
Licenses 212,634 155,456
Consulting services 62,900 22,740
Group 4,410,136 3,539,231
Revenue per geographical region
Austria 257,916 47,081
Bulgaria 94,428 84,386
Denmark 143,343 122,076
Finland 93,711 78,405
France 722,171 696,036
Germany 466,128 504,875
Hungary 17,897 18,925
Italy 296,184 196,588
Latvia 6,849 6,383
The Netherlands 60,064 -
North Macedonia 1,530 849
Norway 761,781 671,976
Poland 236,598 190,325
Romania 2,507 3,423
Spain 92,004 89,725
Sweden 439,741 422,297
Switzerland 551,450 375,494
United Kingdom 46,334 30,387
United States of America 119,502 -
Total 4,410,136 3,539,231
107LINK Mobility Group Holding ASA Annual report 2021
Note 7 Leases
(Amounts in NOK 1000)
This note provides information for leases where the group is a lessee.
Amounts recognised in the balance sheet
The balance sheet shows the following amounts related to leases:
Right-of-use assets
Leased
vehicles
Leased
premises
Other
leased
items
Total
Period ended 31 December 2020
Opening net book amount 1,697 21,687 899 24,283
Additions - 23,382 - 23,382
Net additions from acquired businesses 514 4,102 - 4,616
Disposals (478) - (943) (1,420)
Depreciation charge (970) (23,353) (25) (24,348)
Closing net book amount 31.12 763 25,818 (68) 26,513
Period ended 31 December 2021
Opening net book amount 763 25,818 (68) 26,513
Additions 488 46,793 - 47,281
Net additions from acquired businesses 474 2,338 5,414 8,226
Depreciation charge (1,041) (14,833) (1,748) (17,622)
Closing net book amount 31.12 685 60,116 3,597 64,398
Cost 4,116 106,726 7,009 117,851
Accumulated depreciation (3,431) (46,610) (3,412) (53,453)
Net book amount 31.12 685 60,116 3,597 64,398
Estimated useful life, depreciation plan and residual value is as follows:
Economic (useful) life 0 - 3 years 0 - 5 years 0 - 3 years
Depreciation plan Linear Linear Linear
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Lease liabilities
Leased
vehicles
Leased
premises
Other
leased
items
Total
Period ended 31 December 2021
Opening lease liability 764 38,550 (70) 39,244
New lease liabilities recognised in the period 963 28,093 5,414 34,469
Total leasing payments for the lease liability (1,142) (12,079) (1,876) (15,097)
Interest expense on lease liabilities 121 3,002 207 3,330
Closing net book amount 31.12 706 57,565 3,674 61,946
whereof:
Current lease liabilities 16,906
Non-current lease liabilities 45,040
The Group’s leasing activities and how these are accounted for:
Contracts may contain both lease and non-lease components. The Group allocates the
consideration in the contract to the lease and non-lease components based on their relative
stand-alone prices. However, for leases of real estate (buildings) for which the group is a lessee,
it has elected not to separate lease and non-lease components and instead accounts for these
as a single lease component.
Lease terms are negotiated on an individual basis and contain a wide range of different terms
and conditions. The lease agreements do not impose any covenants other than the security
interests in the leased assets that are held by the lessor. Leased assets may not be used as
security for borrowing purposes.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which
the leased asset is available for use by the Group.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease
liabilities include the net present value of the following lease payments:
y Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
y Variable lease payment that are based on an index or a rate, initially measured using the index
or rate as at the commencement date;
y Amounts expected to be payable by the group under residual value guarantees;
109LINK Mobility Group Holding ASA Annual report 2021
y The exercise price of a purchase option if the group is reasonably certain to exercise that
option; and
y Payments of penalties for terminating the lease, if the lease term reflects the group
exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the
measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate
cannot be readily determined, which is generally the case for leases in the Group, the lessee’s
incremental borrowing rate is used, being the rate that the individual lessee would have to pay
to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a
similar economic environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the Group:
y Where possible, uses recent third-party financing received by the individual lessee as a
starting point, adjusted to reflect changes in financing conditions since third party financing
was received;
y Uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for
leases held by Group subsidiaries, which do not have recent third-party financing; and
y Makes adjustments specific to the lease (i.e. term, country, currency and security).
The Group is exposed to potential future increases in variable lease payments based on
an index or rate, which are not included in the lease liability until they take effect. When
adjustments to lease payments based on an index or rate take effect, the lease liability is
reassessed and adjusted against the right-of-use asset.
remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
y The amount of the initial measurement of lease liability;
y Any lease payments made at or before the commencement date less any lease incentives
received;
y Any initial direct costs; and
y Restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the
lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase
option, the right-of-use asset is depreciated over the underlying asset’s useful life. While the
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Group revalues its land and buildings that are presented within property, plant and equipment, it
has chosen not to do so for the right-of-use buildings held by the Group.
Payments associated with short-term leases of equipment and vehicles and all leases of
term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT
Variable lease payments
The Group is not exposed to variable lease payments.
Extension and termination options:
Extension and termination options are included in certain property and equipment leases across
used in the Group’s operations. The majority of extension and termination options held are
mutually exercisable and are evaluated accordingly.
Note 8 Payroll and related expense
(Amounts in NOK 1000)
2021 2020
Wages and salaries 324,839 288,039
Share-based payment expense 134,505 30,704
Social security tax 80,147 62,135
Pension expense 19,680 13,174
Other benefits 19,875 10,006
Total payroll and related expenses 579,045 404,060
The number of labor years employed during the financial year: 714 649
The pension plans in the Group comply with the pension legislation enacted in respective
countries. The pension plans require that the Group pays premiums to public or private
administrative pension plans on a mandatory, contractual or voluntary basis. There are no
further obligations once the annual premiums are paid. The premiums are accounted for as
personnel expenses as soon as they are incurred. Pre-paid premiums are accounted for as an
111LINK Mobility Group Holding ASA Annual report 2021
Remuneration of key group employees
FY2021 and as at 31 December 2021, Group management consisted of the following individuals
(amounts in NOK 1000):
The CEO has a performance based bonus of up to 7 months salary; the amount of the bonus is
determined by the successful completion of key management business objectives that are set
by the Board of Directors.
The CFO has a performance based bonus of up to 5 months salary. The criteria for this bonus is
a combination of quantitative and qualitative targets determined by the Board of Directors.
The remaining key Group employees have a performance based bonus of up to 5 months salary.
The bonus is calculated on the basis of achievment of budgeted Group income and EBITDA, and
other quantitave and qualitative criteria that are determined on an annual basis.
Share based remuneration
The Company has two programs for share based remuneration for its employees: the Restricted
Share Unit (RSU) program and the long-term incentive plan (LTI) option program. Fair value of
the RSU’s and LTI’s are calculated at the time of allocation and expensed over the vesting period.
In Q4 2020, the Company issued 3 769 092 RSU’s and 2 000 000 LTI’s to selected employees,
including management. Fair value of RSU’s and LTI’s were calculated to NOK 46.995 (for all
practical purposes equal to the share price) and NOK 20.3 at the grant date, respectively.
Name and position Employed since Salary Bonus Pension
expense
Other
remuneration
Guillaume Alain Van Gaver
(CEO)
September 2019 4,227 1,585 804 23,257
Thomas Berge
(CFO)
September 2016 2,400 900 76 16,519
Torbjørn Krøvel
(CTO)
January 2019 1,950 731 76 6,407
Lin Ackema
(Chief People and Strategy Officer)
October 2020 1,700 638 74 1,281
Fredrik Nyman
(CCO)
November 2007 1,964 736 410 6,407
Benoit Bole
(COO Western Europe)
January 2019 1,884 706 566 6,407
Ina Rasmussen
(COO Northern Europe)
January 2015 1,760 728 79 1,922
Hendrik Faasch
(COO Central Europe)
August 2020 1,866 700 81 1,281
Total 17,751 6,724 2,165 63,483
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Financial statements 2021
Grant date for both RSU’s and LTI’s is set at 20.10.2020. The “strike price” of RSU’s is NOK 0.005
(equal to the nominal value of the shares) and the strike price of the LTI’s is NOK 47.
In Q4 2021, the Company issued 3 000 000 additional options as part of the LTI (LTI II) program.
Fair value of the LTI II options was calculated to NOK 8.5 and the strike price of the LTI II options
was NOK 20.89.
An expense of NOK 135 million (including accrued social security tax) related to share options
has been recorded in FY2021. The expenses related to the RSU and LTI are NOK 101 million and
NOK 34 million, respectively. The amount directly related to the social security tax provision is
3.8 million.
The tables below shows an overview of the outstanding LTI’s and RSU’s:
Number of
options
Average
price
Vested LTI’s 2,000,000 47.00
Unvested LTI’s 3,000,000 20.89
Total outstanding options 5,000,000 31.33
Strike price Number of
options
Vesting
date
Expiration
date
47.00 2,000,000 20/10/2021 20/10/2028
20.89 3,000,000 07/12/2023 20/10/2028
Sum 5,000,000
Q4 2021 2021
Number of
options
Average
price
Number of
options
Average price
Total vested LTI’s 2,000,000 47.00 2,000,000 47.00
Granted unvested options 3,000,000 20.89 3,000,000 20.89
Cancelled LTI’s - - - -
Dropped LTI’s - - - -
Expired LTI’s in the period - - - -
Exercised LTI’s in the period - - - -
Total outstanding LTI’s 5,000,000 31.33 5,000,000 31.33
113LINK Mobility Group Holding ASA Annual report 2021
Name Grant date
Number of
LTI’s granted
Number
of LTI’s
vested at
31.12.2021 Expiry date
Exercise
price
range
Guillaume Alain Van Gaver 20/10/2020 470,000 220,000 20/10/2028 47.00
Thomas Berge 20/10/2020 253,000 118,000 20/10/2028 47.00
Torbjørn Krøvel 20/10/2020 100,000 100,000 20/10/2028 47.00
Fredrik Nyman 20/10/2020 198,000 88,000 20/10/2028 47.00
Benoit Bole 20/10/2020 198,000 88,000 20/10/2028 47.00
Hendrik Faasch 20/10/2020 198,000 88,000 20/10/2028 47.00
Ina Rasmussen 20/10/2020 198,000 88,000 20/10/2028 47.00
Lin Ackema 20/10/2020 198,000 88,000 20/10/2028 47.00
Others (not specified) 20/10/2020 3,187,000 1,122,000 20/10/2028 47.00
Sum 5,000,000 2,000,000
Q4 2021 2021
Number of
options
Average
price
Number of
options
Average
price
Total unvested RSU’s 3,769,092 0.005 3,769,092 0.005
Assigned RSU’s - - - -
Cancelled RSU’s - - - -
Dropped RSU’s - - - -
Expired RSU’s in the period - - - -
Exercised RSU’s in the period -1,507,639 0.005 -1,507,639 0.005
Total outstanding RSU’s 2,261,453 0.005 2,261,453 0.005
Strike price Number of options Vesting date Expiration date
Vested RSU’s 0.005 1,507,637 20/10/2021 20/10/2028
Unvested RSU’s 0.005 1,130,728 20/10/2022 20/10/2028
Unvested RSU’s 0.005 1,130,728 20/10/2023 20/10/2028
Sum 3,769,092
Number of RSU’s Average price
Vested RSU’s -
Unvested RSU’s 2,261,453 0.005
Total outstanding RSU’s 2,261,453
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Financial statements 2021
Name Grant date
Number
of RSU’s
granted
Number
of RSU’s
vested at
31.12.2021 Expiry date
Exercise
price
range
Guillaume Alain Van Gaver 20/10/2020 1,237,209 494,884 20/10/2028 47.00
Thomas Berge 20/10/2020 878,775 351,510 20/10/2028 47.00
Torbjørn Krøvel 20/10/2020 340,847 136,339 20/10/2028 47.00
Fredrik Nyman 20/10/2020 340,847 136,339 20/10/2028 47.00
Benoit Bole 20/10/2020 340,847 136,339 20/10/2028 47.00
Hendrik Faasch 20/10/2020 68,169 27,268 20/10/2028 47.00
Ina Rasmussen 20/10/2020 102,256 40,902 20/10/2028 47.00
Lin Ackema 20/10/2020 68,169 27,268 20/10/2028 47.00
Others (not specified) 20/10/2020 391,973 156,790 20/10/2028 47.00
Sum 3,769,092 1,507,639
As at 31.12.2021 there was a total of NOK 7.8 million accrued in social security expenses,
based on a weighted average of the social security tax rates in the recipients countries.
Fair value of the LTI’s and RSU’s are calculated using an adjusted (for exercise behavior) Black-
Scholes option pricing model.
The following assumptions are used in the calculations:
y The share price is set equal to the offer price on October 20th 2020 (date of completetion of
the Initial Public Offering (IPO) of Link Mobility Group Holding ASA.
y The strike price for the RSUs is set equal to the nominal share value (NOK 0.005).
y We assume that historical volatility of a selected group comparable companies within the
CPaaS-univserse is an indication of future volatility.
y Expected volatility is set identical to historical volatility, equal to 61 % in the calculations for
the first LTI’s and for the RSU’s. The volatility for the LTI II is estimated at 51%.
y We assume that the employees will exercise the options at the mid-point between earliest
and latest possible exercise opportunity.
y Risk free rate used in the calculations is set equal to the rate of Norwegian treasury bills and
Government Bonds corresponding to the lifetime of the option.
115LINK Mobility Group Holding ASA Annual report 2021
Remuneration to the Board of Directors
The Board of Directors who did not waive their right to remuneration received payment in
July/August 2021. On 26 May 2021, the Company’s general meeting resolved the following
remuneration for the board of directors for the period from 26 May 2021 until the annual general
meeting is held in 2022:
Robert Joseph Nicewicz Jr., Charles Joseph Brucato III, Ralph Paul Choufani, and Katherine
Ji-Young Woo have all waived their right to remuneration and therefore the Company will not
remunerate these board members in accordance with the amounts set in the table above.
No loans, advances, or guarantees have been granted to key group employees or Board
members.
Further information about remuneration can be found on our website.
* Other expenses include variable operating expenses related to overhead, travel costs and other
operating expenses.
Name Remuneration
Jens Rugseth (Chair) 600,000
Robert Joseph Nicewicz Jr. 350,000
Charles Joseph Brucato III 350,000
Katherine Ji-Young Woo 350,000
Ralph Paul Choufani 350,000
Grethe Viksaas 350,000
Sara Murby Forste 350,000
Note 9 Other operating expenses
(Amounts in NOK 1000)
2021 2020
Advisors and consultants 66,360 35,586
IT, licenses and hosting 65,697 53,899
Restructuring costs 15,493 14,471
Cost related to acquisition of subsidiaries 74,571 15,123
Sales and marketing cost 39,183 29,479
Cost for premises 19,087 11,163
Inventory and equipment 8,884 6,883
Bad debts expense -3,179 9,750
Other expenses* 30,771 25,197
Total other operating expenses 316,867 201,553
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Financial statements 2021
The table below summarises audit fees for FY2021 (FY2020) and fees for audit related services,
tax services and other services incurred by the Group during the period. Fees include both
Norwegian and foreign subsidiaries.
In 2021 and in addition to the fees presented above, NOK 1,647k is remunerated to auditors
other than PwC.
* In addition to expensed amounts, an additional NOK 6,946k is included here that has been
booked to equity. These are fees paid in relation to the IPO in FY2020.
2021 2020
Audit fee 5,729 5,450
Other attestation services 37 -
Tax consulting services 253 795
Other services* 2,336 7,322
Total fee to auditor 8,355 13,568
117LINK Mobility Group Holding ASA Annual report 2021
Note 10 Net nance income and expenses
(Amounts in NOK 1000)
amounts are presented as a sum of interest on borrowings offset by amortised cost recognised
¹ Foreign currency gain/loss is presented on a net basis here and in the Consolidated Statement
lending denominated in foreign currencies. Refer to note 19 (interest-bearing liabilities) and note
² 2021: This is representative of a change in estimate related to the acquisition of Marketing
Platform. This does not have any cash effect.
2020: The earn-out related to the acquisition of the Netsize Group was settled in full in 2020;
there were no earn-out balances payable at the end of FY2020. In total, the earn-out paid for the
Netsize Group was NOK 142.1 million; other payments of purchase price adjustments amounted
to NOK 5.8 million. Total purchase price adjustments amounted to NOK 147.9 million.
Net financial income and expenses 2021 2020
Net currency exchange gains (losses)1 99,745 -101,218
Net interest expense -127,518 -207,093
Net other financial expense 13,291 -118,735
Total finance income -14,481 -427,047
Net interest expense 2021 2020
Interest expense financial institutions - -196,728
Other interest expenses -12,303 -7,533
Interest expense leases -3,330 -2,670
Interest expense bond loan -111,885 -163
Total net interest expense -127,518 -207,093
Net other financial expenses 2021 2020
Amortized loan set-up costs - -2,529
Previously capitalized loan set-up costs - -73,698
Earn-out payment from M&A transactions² 13,291 -37,967
Other financial (expenses) income - -4,000
Total net other financial expenses 13,291 -118,194
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Financial statements 2021
Note 11 Earnings per share
(Amounts in NOK 1000)
The Group’s earnings per share are calculated as below:
2021 2020
Net loss -77,561 -328,006
Weighted average number of ordinary shares (basic)
Issued ordinary shares at 01 January 270,911 213,656
Effect of shares issued (07 January 2020) 219
Share split (15 September 2020) 213,875
Effect of shares issued (15 September 2020) 324
Effect of shares issued (05 October 2020) 53,200
Effect of shares issued (16 November 2020) 3,512
Effect of shares issued (11 March 2021) 1,227
Effect of shares issued (31 May 2021) 1,688
Effect of shares issued (07 June 2021) 1,723
Effect of shares issued (24 June 2021) 16,755
Effect of shares issued (11 November 2021) 1,235
Effect of shares issued (14 December 2021) 713
Weighted average number of ordinary shares (basic) at 31 December 294,252 270,911
Basic loss per share (NOK) -0.26 -1.21
Weighted average number of ordinary shares (diluted)
Weighted average number of ordinary shares (basic) 294,252 270,911
Effect of share options on issue - -
Weighted average number of ordinary shares (diluted) at 31 December 294,252 270,911
Diluted loss per share (NOK) -0.26 -1.21
Number of outstanding ordinary shares per 01.01 270,911 213,656
Number of outstanding ordinary shares per 31.12 294,252 270,911
119LINK Mobility Group Holding ASA Annual report 2021
Note 12 Transactions with related parties
(Amounts in NOK 1000)
Balances and transactions between LINK Mobility Group Holding ASA and its subsidiaries,
which are related parties of LINK Mobility Group AS, have been eliminated on consolidation and
are not disclosed in this note.
During the year, the Group has not entered into any transactions with related parties.
At 31 December 2021, the Company had no balances with related parties.
Note 13 Intangible assets
(Amounts in NOK 1000)
Balances and transactions between LINK Mobility Group Holding ASA and its subsidiaries,
which are related parties of LINK Mobility Group AS, have been eliminated on consolidation and
are not disclosed in this note.
During the year, the Group has not entered into any transactions with related parties.
At 31 December 2021, the Company had no balances with related parties.
Year ended 31 December 2020 Trade name
Customer
relations Technology Goodwill Total
Opening net book value 313,716 939,479 508,509 3,389,876 5,151,580
Net additions from acquired
businesses (PPA)
- 100,550 29,352 448,978 578,880
Additions in the period - - 105,235 - 105,235
Net additions from acquired
businesses
- 7,469 1,101 - 8,570
Exchange differences - 36,213 20,442 143,988 200,643
Amortization charge -13,209 -116,726 -108,636 0 -238,571
Closing net book amount 300,507 966,985 556,002 3,982,843 5,806,337
At 31 December 2020
Cost 330,227 1,214,290 791,607 3,982,843 6,318,967
Accumulated amortisation and
impairment
-29,720 -247,305 -235,605 0 -512,630
Net book amount 300,507 966,985 556,002 3,982,843 5,806,337
Estimated useful life 25 7-10 3-10 Indefinite
Amortisation method Straight-line Straight-line Straight-line
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Financial statements 2021
Year ended 31 December 2021 Trade name
Customer
relations Technology Goodwill Total
Opening net book value 300,507 966,985 556,002 3,982,843 5,806,337
Net additions from acquired
businesses
7,620 1,016,619 283,188 1,723,787 3,031,214
Additions in the period -6 1,774 132,572 - 134,341
Exchange differences -144 -1,752 -7,610 -92,119 -101,625
Amortization charge -13,209 -177,533 -118,508 - -309,250
Closing net book amount 294,768 1,806,093 845,644 5,614,510 8,561,016
At 31 December 2021
Cost 337,766 2,156,700 1,259,323 5,639,113 9,392,901
Accumulated amortisation and
impairment
-42,997 -350,607 -413,678 -24,603 -831,885
Net book amount 294,768 1,806,093 845,644 5,614,510 8,561,016
Estimated useful life 25 7-10 3-10 Indefinite
Amortisation method Straight-line Straight-line Straight-line
Trade name
The LINK name was established in 2008 and has become a known name within the mobile
solutions industry. The estimated useful life is determined to be 25 years and is amortised
Customer Relationships
amortisation period is estimated to be between 7-10 years. The amortisation period is based
on an analysis of customer churn and the remaining useful life of the customer relationships
recogonised in the balance sheet.
Technology
Amortisation of capital expenditure for the development of Group technology is between 3-10
years. For technology acquired through business combinations, the amortisation period is
between 7-10 years based on an evalution of the technological solution.
Goodwill
Goodwill generated from business combinations is primarily related to anticipated growth
prospects for the acquired businesses. No impairment has been recognised subsequent to the
business combination.
121LINK Mobility Group Holding ASA Annual report 2021
Impairment test
amortised. They are tested for impairment on an annual basis at a cash generating unit
(hereafter “CGU”) level, and more frequently if there are indications that amounts may be
impaired. In accordance with IAS 36 - Impairment of Assets, the carrying amount of the CGU
to which goodwill has been allocated is compared with the recoverable amount of the CGU.
The recoverable amount is determined based on value-in-use calculations. These calculations
period. The assumed growth rate has been based on the management growth estimate for the
Based on the calculations referred to above, it has been concluded that the recoverable amount
exceeds the carrying amount of each CGU. No impairment has been recognized for FY2021
(FY2020 - nil).
each country in it operates in as a CGU:
Goodwill
Norway 806,490
Sweden 203,224
Denmark 300,182
Finland 209,934
Germany 695,279
Spain 193,738
Poland 253,219
Bulgaria 62,001
France 395,221
Switzerland 168,503
Italy 258,434
Austria 452,347
United Kingdom 6,905
Hungary 14,110
Netherlands 130,273
USA 1,464,650
Total 5,614,510
amount of the CGUs.
122
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Financial statements 2021
Sensitivity analysis
In connection with the impairment testing of intangible assets, a sensitivity analysis has been
performed. The sensitivity analysis has tested changes in terminal growth; if no terminal
growth (zero-rated) is used, there is still impairment headroom for all CGU’s with the exception
calculating value in use are subject to uncertainty. The assumptions are described as follows:
Budgeted period
period. The forecasted years are estimated based on the company’s strategic initiatives.
Local currency and Fx rates - All CGU’s forecasted projections are done using NOK.
Terminal value - Terminal value is calculated using the Gordon growth formula based on
WACC
calculation of a weighted average cost of capital (WACC). The pre-tax WACC is based on an
average interest rate adjusted for each CGU.
Management have concluded that no forseable change in any of the key assumptions used
in the impairment test would cause the carrying amounts of the cash-generating units with
123LINK Mobility Group Holding ASA Annual report 2021
Period ended 31 December 2020
Opening net book amount 21,493
Additions 9,394
Net additions from acquired businesses 1,485
Disposals 0
Depreciation charge -7,975
Translation differences 685
Closing net book amount 31.12 25,083
Period ended 31 December 2021
Opening net book amount 25,083
Additions 811
Net additions from acquired businesses 2,506
Disposals 138
Depreciation charge -7,096
Translation differences -956
Closing net book amount 31.12 20,485
Cost 70,376
Accumulated depreciation -49,891
Net book amount 31.12 20,485
Estimated useful life, depreciation plan and residual value is as follows:
Economic (useful) life 3-5 years
Depreciation plan Linear
Note 14 Equipment and xtures
(Amounts in NOK 1000)
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Financial statements 2021
Note 15 Trade and other receiveables
(Amounts in NOK 1000)
2021 2020
Trade receivables 676,054 517,436
Accrued revenue 158,253 161,743
Prepayments 50,680 64,594
Other receivables 19,936 4,774
Total trade and other receivables 904,923 748,547
The above trade receivables and other receivables represent the Group’s maximum exposure to
credit risk at the balance sheet date.
Trade accounts receivable relate to the sale of mobile messaging transactions, payment
services, licenses, and consulting services; these are withing the normal operating cycle.
telecommunications provider is received.
The Group measures the loss allowance for trade receivables at an amount equal to lifetime
expected credit losses. Based on historical trends, the Group recognises a loss allowance of
100% against all receivables over 120 days past due, unless it is probable that the receivable
There is no loss allowance related to accrued revenues.
The Group has recognised a provision for bad debts of KNOK 37 621 (FY2020 - KNOK 29 617).
Trade receivables recognised as a part of business combinations are recognised at fair value on
the date of acquisition, allowance for impairment amounted to KNOK 0 (FY2020 - KNOK 302).
Ageing of past due but not impaired trade
receivables
(in thousands of NOK) 2021 % 2020 %
Not past due 474,157 70 % 359,489 69 %
1-30 days overdue 131,112 19 % 110,614 21 %
31-60 days overdue 17,891 3 % 12,083 2 %
61-90 days overdue 14,308 2 % 22,321 4 %
91-180 days overdue 18,362 3 % 7,314 1 %
More than 180 days overdue 20,225 3 % 5,615 1 %
Total 676,054 100 % 517,436 100 %
125LINK Mobility Group Holding ASA Annual report 2021
Note 16 Cash and cash equivalents
(Amounts in NOK 1000)
2021 2020
Cash and cash equivalents 843,618 952,144
Total cash and cash equivalents 843,618 952,144
Restricted cash 2021 2021
Taxes withheld 13,181 4,628
Other restricted cash 4,354 7,516
Total restricted cash 17,535 12,143
Cash and cash equivalents include restricted cash related to regulatory requirements.
The cash pool is a zero-balancing cash-pool, including the automatic transfers of funds between
a master account and subsidiary accounts to cover deposit and withdrawal activity wihin the
arrangement.
LINK Mobility Group AS is the cash pool administrator/master and holder of the top accounts
Detail Accounts.
Funds deposited into a Detail Account are automatically and instantly transferred to a Facility
Account. Similarly, funds withdrawn from a Detail Account are automatically and instantly
transferred from a Facility Account. The Detail Accounts maintain a balance of zero, whereas
each Facility Account holds the credit or debit balance of the funds available for drawing in the
cash pool.
A Facility Account (and its balance) is owned solely by LINK and creates rights and obligations
only between LINK and the bank. The balance on the Facility Accounts is subject to interest
calculations between LINK and the bank. Transactions (deposits or withdrawals) cannot be
performed on a Facility Account, but must be performed using a Detail Account.
The Bank registers each transaction between each Facility Account and each Detail Account
between LINK and each Detail Account Holder. The participating entities of the Group have
internal balances toward LINK through the use of the Detail Accounts.
126
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Financial statements 2021
Note 17 Share capital and shareholder information
(Amounts in NOK 1000)
Share capital as at 31 December 2021 is KNOK 1 471 (2020: KNOK 1 355), being 294 252 254
ordinary shares (2020: 270 911 039 ordinary shares) at a nominal value of NOK 0.005/share
(2020: NOK 0.005/share). There are no preference shares in FY2021 (FY2020: nil).
All shares were fully paid; each ordinary share carries one vote at any general meeting.
The movement in the number of shares during the year was as follows:
2021 2020
Ordinary shares opening balance 270,911,039 10,682,803
Issue of ordinary shares (07 January 2020) 10,934
Conversion of nominal value from NOK 0.10 to NOK 0.005
Share split (15 September 2020) 213,874,740
Issue of ordinary shares (15 September 2020) 324,000
Issue of ordinary shares (05 October 2020) 53,200,000
Issue of ordinary shares (16 November 2020) 3,512,299
Issue of ordinary shares (11 March 2021) 1,226,637
Issue of ordinary shares (31 March 2021) 1,687,589
Issue of ordinary shares (31 May 2021) 1,723,310
Issue of ordinary shares (07 June 2021) 16,755,069
Issue of ordinary shares (24 June 2021) 1,235,424
Issue of ordinary shares (14 December 2021) 713,186
Ordinary shares at the end of the period 294,252,254 270,911,039
Preference shares:
Preference shares opening balance 2021/2020 - 129,158
Share split (15 September 2020) 2,583,160
Settlement of preference shares -2,583,160
Preference shares at the end of the period - -
Total number of shares at the end of the period 294,252,254 270,911,039
127LINK Mobility Group Holding ASA Annual report 2021
LINK Mobility Group Holding ASA has the following major shareholders as at 31 December 2021:
Name of shareholder Type of account Ownership interest
Citibank, N.A. Nominee 31.84%
State Street Bank and Trust Comp Nominee 8.07%
KARBON INVEST AS Ordinary 5.42%
Citibank, N.A. Nominee 4.56%
FOLKETRYGDFONDET Ordinary 4.31%
Saxo Bank A/S Nominee 3.55%
UBS AG LONDON BRANCH Ordinary 3.09%
Skandinaviska Enskilda Banken AB Ordinary 3.08%
FERD AS Ordinary 2.50%
Skandinaviska Enskilda Banken AB Nominee 2.17%
J.P. MORGAN BANK LUXEMBOURG S.A. Nominee 1.62%
The Bank of New York Mellon SA/NV Nominee 1.29%
J.P. MORGAN BANK LUXEMBOURG S.A. Nominee 1.19%
Citibank, N.A. Nominee 1.14%
BARCLAYS CAPITAL SEC. LTD FIRM Ordinary 1.13%
The Bank of New York Mellon Nominee 0.95%
VERDIPAPIRFONDET DNB NORGE Ordinary 0.86%
Danske Bank A/S Nominee 0.79%
SUNDT AS Ordinary 0.78%
VERDIPAPIRFONDET DELPHI NORDIC Ordinary 0.64%
78.98%
The company’s trustees (Board Members, management) hold ownership interests and rights to shares:
Name of shareholder Total number of shares
Victory Partners VIII Limited via a nominee account in
Citibank (controlled by Abry who have 4 Board members)
93,612,321
Karbon Invest AS (controlled by Jens Rugseth) 15,945,105
Sundahl Aps (controlled by board observer Søren Sundahl) 9,139,242
Rugz AS (controlled by Jens Rugseth) 500,000
Guillaume Alain Van Gaver 204,010
Thomas Berge 182,786
Fredrik Nyman 168,465
Benoit Bole 54,585
Hendrik Faasch 27,267
Ina Rasmussen 26,343
Lin Ackema 14,725
Grethe Helene Viksaas (Board member) 6,382
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Financial statements 2021
Note 18 Classes and categories of nancial instruments
(Amounts in NOK 1000)
subsequently at amortised cost less loss allowances.
the carrying value at the reporting date has been assessed as approximating fair value.
The recognised amounts consitute a reasonable approximation of fair value.
Carrying value
12/31/2021 Amortised cost Total
Current financial assets
Trade receivables 676,054 676,054
Cash and cash equivalents 843,618 843,618
Non-current financial liabilities
Borrowings 3,696,470 3,696,470
Lease liabilities 45,040 45,040
Current liabilities
Borrowings 24,423 24,423
Lease liabilities 16,906 16,906
Trade payables 579,542 579,542
129LINK Mobility Group Holding ASA Annual report 2021
Note 19 Interest-bearing liabilities
(Amounts in NOK 1000)
Interest bearing liabilities are measured at amortised cost.
Non-current financial liabilities 2021 2020
Debt to financial institutions - 5,235
Bond loan 3,629,772 2,073,280
Long-term lease liability 45,040 30,624
Holdback 66,698 -
Total 3,741,510 2,109,140
Current liabilities 2021 2020
Holdback 15,598 24,340
Short-term lease liability 16,906 8,619
Debt to financial institutions/bond loan* 8,856 2,904
Total 41,360 35,863
*
Instalments falling due within a 12 month period, including non-capitalised interest, are classified as current.
The book value of borrowings is estimated to approximate their fair value.
Facility / Currency
Debt out-
standing
Amortized
cost EUR
Amortized
cost NOK Maturity Term
Interest
p. a.
Due date
Interest
Bond loan (tap issue 15.12.2020) 200,000 198,388 1,981,657 15 Dec
2025
5 year 3.375 %
p.a.
Half yearly
Bond loan (tap issue 23.06.2021) 170,000 164,996 1,648,115 15 Dec
2025
5 year 3.375 %
p.a.
Half yearly
Holdback amount Tismi - EUR - 6,661 66,538 10 Mar
2023
3 year 3.5%
p.a.
At maturity
Holdback amount Teracomm -
EUR
- 1,562 15,598 Disputed n/a n/a n/a
Holdback amount AMM - EUR - 16 160 21 Feb
2022
1 year n/a n/a
Total 3,712,068
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Financial statements 2021
2021 2020
Bond loan (tap issue 15.12.2020) 1,998,768 2,094,345
Bond loan (tap issue 23.06.2021) 1,699,011 -
Transaction costs (tap issue 15.12.2020)1 -21,228 -21,228
Transaction costs (tap issue 23.06.2021)1 -56,127 -
Amortisation (tap issue 15.12.2020) 4,118 163
Amortisation (tap issue 23.06.2021) 5,231 -
Accrued interest and fees 6,980 2,904
Carrying amount 3,636,753 2,076,184
¹ The bond loan is initially measured at fair value net of transaction costs and it is subsequently
measured at amortized cost using the effective interest rate method. Consequently, the
transaction cost will be amortized over the life of the bond loan. The carrying value of the bond
loan will be equal to the principal amount of EUR 370 million at maturity in FY2025.
Covenants
Under the bond terms, the Group is required to comply with the following financial covenants at
the respective quarterly and annual test dates:
Financial Reporting:
y Publish interim accounts (quarterly reports) in the English language on the Group website (or
other relevant platform) no later than 60 days after the end of the relevant interim period.
y Publish annual financial statements in the English language on the Group website (or other
relevant platform) no later than 120 days after the end of the fiscal year.
Maturity analysis of borrowings (including interest)
Contractual maturities of financial
liabilities at 31 December 2021
< 3 months 3 months - 1 year 1 - 2 years 2 - 5 years Total
Bond loan (tap issue 15.12.2020) - 67,424 67,424 2,132,609 2,267,458
Bond loan (tap issue 23.06.2021) - 57,311 57,311 1,812,717 1,927,339
Lease liabilities - 16,906 15,013 30,027 61,946
Holdback 160 15,598 66,538 - 82,296
Total 160 157,239 206,286 3,975,353 4,339,038
Contractual maturities of financial
liabilities at 31 December 2020 < 3 months 3 months - 1 year 1 - 2 years 2 - 5 years Total
Bond loan (tap issue 15.12.2020) - 71,666 71,666 2,309,539 2,452,871
Lease liabilities - 8,619 10,208 20,416 39,243
Holdback - 24,340 - - 24,340
Total - 104,625 81,874 2,329,955 2,516,454
131LINK Mobility Group Holding ASA Annual report 2021
A compliance certificate is to be provided with a copy of the financial reports; the compliance
certificate is to be signed by the Chief Executive Officer or the Chief Financial officer to certify
that the financial reports are fairly representative of its financial condition as at the date of
those financial statements.
Accounting standards are to be consistently applied.
Financial Indebtedness:
Except as permitted, the Issuer shall not, and shall procure that no other Group Company
will, incur any additional Financial Indebtedness or maintain or prolong any existing Financial
Indebtedness.
Negative Pledge:
Excluding Permitted Security, the Issuer shall not, and shall procure that no other Group
Company will, create or allow to subsist, retain, provide, prolong or renew any Security over any
of its/their assets (whether present or future).
Disposals of Business:
The Issuer shall not, and shall ensure that no other Group Company will, sell, transfer or
otherwise dispose of all or substantial part of its assets or operations unless the transaction
is carried out at fair market value, on terms and conditions customary for such transaction and
such transaction would not have a Material Adverse Effect.
Distribution:
Except as permitted, the Issuer shall not, and shall procure that no other Group Company will
make any Distribution.
Incurrence Test:
The incurrence test is met if the Leverage Ratio is less than, for any additional Financial
Indebtedness (3.50x) or for Distributions (1.50x).
The Interest Coverage Ratio exceeds 3.0x.
Compliance with the Incurrence Test is subject to in each case, that no Event of Default is
outstanding or would result from the relevant event for which compliance with the Incurrence
Test is required.
Collateral and guarantees
On 15 December 2020, LINK Mobility Group Holding ASA (LINK) successfully completed the
issuance of EUR 200 million senior unsecured bonds, with a EUR 350 million borrowing limit.
Part of the proceeds from the bond issue were used to repay the remaining outstanding senior
facility agreement (SFA).
On 23 June 2021, LINK issued EUR 170 million new bonds in LINK’s outstanding 5-year senior
million. The bonds were issued at par.
be repaid in full at the maturity date.
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Financial statements 2021
Bond loan Holdback Other Senior facilities Total
12/31/2019 - 26,721 2,923 2,505,877 2,535,522
New debt 2,122,800 2,312 562,521 2,687,634
Cancellation of debts - -3,791 - -3,255,289 -3,259,081
Effects of foreign exchange -28,455 1,410 - 151,751 124,706
Transaction costs -21,228 - - - -21,228
Amortization 163 - - 73,698 73,862
Interest and fees paid - - - -235,571 -235,571
Interest and fee expenses 2,904 - - 197,012 199,917
12/31/2020 2,076,184 24,340 5,235 - 2,105,759
Bond loan Holdback Other Senior facilities Total
12/31/2020 2,076,184 24,340 5,235 - 2,105,759
New debt 1,729,189 67,331 - - 1,796,520
Cancellation of debts - -7,819 -5,235 - -13,054
Effects of foreign exchange -123,504 -1,556 - - -125,059
Transaction costs -56,127 - - - -56,127
Amortization 9,186 - - - 9,186
Interest and fees paid -110,060 - - - -110,060
Interest and fee expenses 111,885 - - - 111,885
12/31/2021 3,636,753 82,296 - - 3,719,049
Note 20 Financial instruments, risk management objectives, and policies
(Amounts in NOK 1000)
y Interest rate risk
y Foreign exchange risk
y Credit risk
y Liquidity risk
Interest rate risk
Interest rate risk arises as a consequence of long-term debt. In December 2020 the Company
successfully completed the issuance of EUR 200 million senior unsecured bonds, with a EUR
350 million borrowing limit.
On 23 June 2021, LINK issued EUR 170 million new bonds in LINK’s outstanding 5-year senior
million. The bonds were issued at par; refer to note 19 for further details.
133LINK Mobility Group Holding ASA Annual report 2021
The sensitivity analysis below is based on the exposure to changes in interest rates for non-
assuming the amount outstanding at reporting date was outstanding for the whole year. A one
percent increase or decrease represents management’s assessment of reasonable and possible
changes in interest rates.
If interest rates had been one percent higher/lower and all other variables were held constant,
decrease/increase by KNOK 36 959 (FY2020 KNOK 20 941). This is mainly attributable to the
Group’s exposure to interest rates on its variable rate borrowings.
Foreign exchange risk
The Group undertakes business in foreign currencies and is consequently exposed to
operations conducted, and assets and liabilities arising in foreign currencies. The Group
undertakes transactions denominated in NOK, DKK, EUR, SEK, PLN, BGN, CHF, GBP, HUF, RON,
MKD and USD. Revenue and cost transactions within foreign subsidiaries are normally carried
out in the same currency, which mitigates the currency risk.
DKK, EUR, SEK, PLN, BGN, CHF, GBP, HUF, RON, MKD or USD in relation to NOK affect the Group’s
and liabilities. The table below summarises the impact a change in these currencies will have
on the consolidated income statement and on retained earnings/accumulated losses as at
31 December 2021. The analysis is based on the assumption that the foreign exchange rates
increase or decrease by 10%, all other variables held constant.
Credit Risk
Credit risk is the risk of a counterparty defaulting. The Group’s credit risk is limited to trade and
other receivables and is mitigated by the Group’s guidelines to ensure that credit sales are only
made to customers with high credit rating. Customers with a low credit rating are required to
prepay for services rendered by the Group.
The Group’s credit risk related to trade receivables is assessed to be limited due to the high
number of diverse customers in the Group’s customer base. Refer to note 15 for additional
information related to trade and other receivables.
31 December 2021
(amounts in NOK 1000) NOK/EUR impact NOK/SEK impact NOK/CHF impact
Trade receivables 55,403 11,049 8,769
Trade payables 41,521 7,277 9,222
Borrowings 369,586 - -
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Financial statements 2021
The carrying value of trade and other receivables represent the Group’s maximum exposure to
credit risk at the balance sheet date.
Liquidity risk
mature, resulting in default.
accounts as of year-end. Refer to notes 19 and 21 for information about maturity of trade and
other payables and borrowings.
The Group has no credit facilities. Subsidiaries receive all funding from the Group and are not
for information about the bond convenants.
Capital management
further activities.
Note 21 Trade and other payables
(Amounts in NOK 1000)
Trade and other payables 2021 2020
Trade payables 579,542 524,059
Public duties 74,227 53,791
Accrued vacation pay 55,259 25,401
Accrued expenses 353,590 323,920
Total trade and other payables 1,062,618 927,171
Trade payables is comprised of amounts outstanding for trade purchases.Accrued expenses
are representative of accrued cost of goods sold or other operating expenses for which a final
invoice has not been received.
Trade and other payables are due within three months.
135LINK Mobility Group Holding ASA Annual report 2021
Note 22 Income tax
(Amounts in NOK 1000)
Specication of income tax expense
current tax and deferred tax.
2021 2020
Deferred tax expense (income) -44,583 -116,053
Current tax expense 74,474 39,230
Income tax expense (income) 29,891 -76,823
Income tax payable (balance sheet) 2021 2020
Income tax payable 29,627 8,928
Current tax liabilities (balance sheet) 29,627 8,928
Effective Tax Rate
The difference between income tax calculated at the applicable income tax rate and the income tax
expense attributable to loss before income tax was as follows:
2021 2020
Profit/(loss) before income tax -47,670 -404,829
Statutory income tax rate* 22% 22%
Expected income tax expense/(benefit) -10,487 -89,062
Tax effect on non-taxable income/expenses -5,566 -2,117
Tax effect non deductible expenses 46,073 -
Prior year adjustment 5,839 -
Effect of changes in tax rules and rates -1,652 -9,417
Non deductible interest, interest cap rules 14,135 28,256
Change in deferred tax asset not recognized -18,450 -4,483
Income tax expense/income (-) for the year 29,891 -76,823
Effective tax rate -63% 19%
* The statutory income tax rate based on the currently enacted tax rate in Norway.
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Financial statements 2021
2021 2020
Unused tax loss carry forward - 97,280
Interest cap 365,406 312,784
Potential tax benefit unused tax losses, 22 % - 21,402
Potential tax benefit interest cap, 22 % 80,389 68,812
The unused tax loss carry forward balances are related to LINK Mobility Group Holding ASA. For
Interest cap is related to LINK Mobility Group Holding ASA, LINK Mobility Pecunia AS and to
amount can be carried forward for 10 years.
Specication of the tax effect of temporary differences and losses carried forward
Tax losses and interest cap for which no deferred tax asset has been recognised
Unrecognised temporary differences
2021 2020
Temporary differences for which deferred tax liabilities have not
been recognised
- -21,065
Unrecognised tax liabilities relating to the above temporary
differences, 22 %
- -4,634
The temporary differences are related to LINK Mobility Group ASA and form part of the net tax
asset that has not been recognised.
Tax effect of temporary differences and tax losses carried forward as of 31 December
Deferred tax assets: 2021 2020
Tangible and intangible assets 6,569 9,952
Interest - -
Other non-current items 9,434 -
Total tax effect of temporary differences 16,003 9,952
Deferred tax asset arising from tax losses carried forward 126,941 130,599
Deferred tax assets 142,944 140,551
Deferred tax liabilities: 2021 2020
Intangible assets (mainly due to PPA business combinations) 528,555 313,090
Other 28,406 -
Deferred tax liabilities 556,961 313,090
137LINK Mobility Group Holding ASA Annual report 2021
Note 23 Contingencies and legal claims
As at 31 December 2021 and as at the date of signing of this annual report, certain Group
subsidiaries are involved in ongoing legal proceedings as either defendant or as plaintiff. Due to
the uncertain outcome for all of these ongoing proceedings, there are no provisions (contingent
risk as the majority are covered by guarantees as a result of acquisitions (M&A).
A list of ongoing legal proceedings is provided as follows:
Note 24 Events after the reporting date
As at the date of this report, there are no events after the reporting date.
Alternate performance measures (“APM’s”)
Standards (IFRS), as adopted by the EU. To enhance the understanding of LINK’s performance,
EBITDA, and adjusted EBITDA margin. APMs such as EBITDA are commonly reported by
Entity Counterparty Claim Position
LINK Mobility EAD Customer € 13,000 Defendant
MarketingPlatform Aps Customer € 22,992 Defendant
Netsize S.A. Public Authority € 300,000 Defendant
LINK Mobility GmbH Supplier € 250,000 Defendant
LINK Mobility Italia Srl Customer € 262,000 Defendant
LINK Mobility Italia Srl Customer € 210,000 Defendant
LINK Mobility Group AS Seller (SPA) € 1,561,536 Defendant
Teracomm RO SRL Customer € 460,000 Defendant
LINK Mobility Spain S.L.U. Supplier € 275,000 Defendant
LINK Mobility Spain S.L.U. Supplier € 380,000 Defendant
Netsize S.A. Public Authority € 2,323,063 Defendant
LINK Mobility EAD Customer € 13,567 Plaintiff
LINK Mobility EAD Customer € 5,545 Plaintiff
LINK Mobility EAD Customer € 5,000 Plaintiff
LINK Mobility EAD Customer € 112,000 Plaintiff
LINK Mobility GmbH Supplier € 1,000,000 Plaintiff
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Financial statements 2021
companies in the markets in which LINK competes and are widely used by investors when
comparing performance on a consistent basis without regard to factors such as depreciation
(particularly when acquisitions have occurred) or based on non-operating factors.
LINK uses the following APMs:
Gross Profit
Gross Profit means revenues less direct costs of services rendered.
Gross margin
Gross margin means gross profit as a percentage of total operating revenues.
Adjusted EBITDA
Adjusted EBITDA means EBITDA adjusted by expenses related to significant one-time, non-
recurring events such as acquisitions and restructuring activities, legal advisors, and share-
based compensation. LINK has presented adjusted EBITDA in the consolidated statement
of profit and loss because management believes the measure provides useful information
regarding operating performance.
EBITDA
EBITDA means earnings before interest, taxes, amortization, depreciation, and impairments.
LINK has presented EBITDA in the consolidated statement of profit and loss because
management believes that the measure provides useful information regarding the Group’s ability
to service debt and to fund capital expenditures and provides a helpful measure for comparing
its operating performance with that of other companies.
See below for a reconciliation of EBITDA to Adjusted EBITDA, and adjusted EBITDA margin.
NOK ‘000 YTD 2021* YTD 2020*
Operating profit (loss), (“EBIT”) -33,189 22,218
Add: Depreciation intangible assets 337,706 271,389
EBITDA 304,517 293,607
Add: Restructuring costs 26,815 47,400
Add: Share-based compensation 149,457 34,711
Add: Expenses related to acquisitions 75,870 15,123
Adjusted EBITDA 556,659 390,841
Operating revenues 4,410,136 3,539,231
Adjusted EBITDA 556,659 390,841
Adjusted EBITDA margin 12.6 % 11.0 %
139LINK Mobility Group Holding ASA Annual report 2021
Net debt
The Group monitors Net debt according to Bond loan terms which includes interest-bearing debt
and debt like arrangements. Net debt is derived from the balance sheet and consists of both
current and non-current lease liabilities less cash and cash equivalents. Sellers credits, holdback
and earn-outs are excluded as they are not interest-bearing.
Net debt/LTM adjusted EBITDA
LINK measures leverage ratio as Net debt/Last Twelve Months Adjusted EBITDA. The measure
LINK use Last Twelve Months Proforma Adjusted EBITDA to calculate net debt to present a
comparable measure over time.
Below is a reconciliation of Net debt and Net debt/LTM adjusted EBITDA ratio*:
NOK ‘000 YTD 2021 YTD 2020
Bond loan 3,695,856 2,073,280
Other long-term - 5,235
IFRS 16 liabilities 61,946 39,244
Seller’s credit (interest bearing) 66,698 -
Less cash -843,618 -952,144
Net debt 2,980,882 1,165,615
LTM adjusted EBITDA (proforma) 619,304 435,169
Net debt/LTM adjusted EBITDA 4.8 2.7
loan terms and is therefore omitted for the historical periods.
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Income Statement
For the period ended 31 December
(Amounts in NOK 1000)
Note 2021 2020
Other operating expenses 6 -5,727 -369
Total operating expenses -5,727 -369
Operating loss -5,727 -369
Finance income and finance expenses
Net currency exchange gains (losses) 132,852 33,656
Net interest expense -35,837 -3,298
Net other financial income (expenses) 1,331,915 -169
Total finance income 7 1,428,931 30,189
Profit before income tax 1,423,203 29,820
Income tax 14 -5,017 -725
Profit for the period 1,418,187 29,095
The accompanying notes are an integral part of these financial statements.
Financial statements 2021
141LINK Mobility Group Holding ASA Annual report 2021
Statement of financial position
(Amounts in NOK 1000)
ASSETS Note 31 December 2021 31 December 2020
Investment in LINK Mobility Group AS 5 7,978,341 6,899,176
Long-term receivables - intercompany 7 2,914,375 -
Total non-current assets 10,892,716 6,899,176
Cash and cash equivalents 8, 10 139,684 122,234
Total current assets 139,684 122,234
TOTAL ASSETS 11,032,400 7,021,410
EQUITY AND LIABILITIES
Share capital 1,471 1,355
Share premium and other reserves 5,826,515 4,906,672
Retained earnings (accumulated losses) 1,482,567 28,701
Total equity 9 7,310,554 4,936,728
Liabilities
Long-term borrowings 11 3,698,186 2,073,280
Deferred tax 14 15,806 -
Loans and borrowings - intercompany 464 510
Total non-current liabilities 3,714,456 2,073,790
Short-term borrowings 10, 11 6,980 2,945
Trade payables and other payables 10, 13 410 7,222
Current tax liabilities 14 - 725
Total current liabilities 7,390 10,892
Total liabilities 3,721,846 2,084,682
TOTAL EQUITY AND LIABILITIES 11,032,400 7,021,410
The accompanying notes are an integral part of these financial statements.
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Statement of Comprehensive Income
For the period ended 31 December
(Amounts in NOK 1000)
2021 2020
Profit (loss) for the period 1,418,187 29,095
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences of foreign operations - -
Other comprehensive income for the period - -
Total comprehensive income for the period 1,418,187 29,095
Ralph Paul Choufani
Board member
Guillaume Alain Van Gaver
Chief Executive Officer
Jens Rugseth
Chairman of the board
Sara Katarina Murby Forste
Board member
Charles Joseph Brucato
Board member
Katherine Ji-Young Woo
Board member
Robert Joseph Nicewicz Jr
Board member
Grethe Helene Viksaas
Board member
The Board of Directors of LINK Mobility Group Holding ASA
Oslo, 28 April 2022
Financial statements 2021
143LINK Mobility Group Holding ASA Annual report 2021
Statement of Changes in Equity
for the period ended 31 December 2021
(Amounts in NOK 1000)
Note
Share
capital
Share
premium
Retained
earnings
(accumulated
losses)
Total equity
Balance at 01 January 2020 1,081 2,725,406 -393 2,726,094
Profit for the period - - 29,095 29,095
Other comprehensive income (loss) for
the year, net of income tax
- - - -
Total comprehensive income for the year - - 29,095 29,095
Issue of ordinary shares 273 2,150,562 - 2,150,835
Share based payment - 30,704 - 30,704
Balance at 31 December 2020 9 1,355 4,906,672 28,701 4,936,728
Balance at 01 January 2021 1,355 4,906,672 28,701 4,936,728
Profit for the year - - 1,418,187 1,418,187
Currency effect - hedge accounting 35,679 35,679
Other comprehensive income (loss) for
the year, net of income tax
- - - -
Total comprehensive income for the year - - 1,453,866 1,453,866
Issue of ordinary shares 117 785,339 - 785,455
Share based payment - 134,505 - 134,505
Balance at 31 December 2021 9 1,471 5,826,515 1,482,567 7,310,554
The accompanying notes are an integral part of these financial statements.
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Statement of cash flows
For the period ended 31 December 2021
(Amounts in NOK 1000)
Note 2021 2020
Cash flows from operating activities
Profit before income tax 1,423,203 29,820
-
Adjustments for: -
Finance income (expense) -87,705 -30,189
Change in trade and other payables 10, 13 -7,283 38,387
Change in other provisions -125 -345
Net cash flows from operating activities 1,328,091 37,672
Cash flows from investing activities
Net cash outflow, capital increase subsidiary 5 -944,660 -3,081,749
Net cash outflow, loan to subsidiaries -2,717,473 -
Net cash flows from investing activities -3,662,133 -3,081,749
Cash flows from financing activities
Proceeds on issue of shares 9 785,455 2,368,423
Repayment of equity -1,299,422
Proceeds from borrowings 1,670,117 2,101,572
Interest paid -94,781
Net cash flows from financing activities 2,360,791 3,170,573
Net change in bank deposits, cash and
equivalents
26,749 126,497
Effect of foreign exchange rate changes -9,299 -4,285
Cash and equivalents at beginning of period 122,234 22
Cash and equivalents at end of the period 139,684 122,234
The accompanying notes are an integral part of these financial statements.
Financial statements 2021
145LINK Mobility Group Holding ASA Annual report 2021
Notes to the financial statements for the period ended
31 December 2021
1 General information
2 Adoption of new and revised International Financial Reporting Standards (IFRS)
3 Summary of significant accounting policies
4 Critical accounting judgments and key sources of estimation variances
5 Investment in subsidiaries
6 Other operating expenses
7 Net finance income and expenses
8 Cash and cash equivalents
9 Share capital and shareholder information
10 Classes and categories of financial instruments
11 Interest-bearing liabilities
12 Financial instruments, risk management objectives, and policies
13 Trade and other payables
14 Income tax
15 Contingencies and legal claims
Note 1 General information
LINK Mobility Group Holding ASA is the parent company of LINK Mobility Group AS, and is
headhquartered in Oslo, Norway. LINK is Europe’s leading provider of mobile and CPaaS solutions
specializing in messaging, digital services and intelligent data usage.
The Company’s subsidiary as at 31 December 2021 is listed below.
Name of entity Date of acquisition Place of business / country of
registration
Ownership
interest
LINK Mobility Group AS 06/12/2021 Oslo, Norway 100%
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Note 2 Adoption of new and revised International Financial
Reporting Standards (IFRS)
A number of amended IFRS standards issued by the International Accounting Standards
Board (IASB) and IFRS interpretations issued by the IFRS Interpretations Committee (IFRS
IC) are effective for accounting periods commencing on or after 01 January 2021. The
requirements arising from revised IFRSs or IFRIC interpretations are embedded in the
of the Group from the date of establishment. The accounting policies adopted are described
Standards and interpretations affecting amounts reported in the current period
The accounting policies adopted, and methods of computation followed are consistent with
following standards and interpretations has not had any material impact on the disclosures or
y Amendment to IFRS 16 concerning COVID-19-Related Rent Concessions beyond 30 June
2021
y Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark
Reform – Phase 2
New or amended standards that have effective date on 1 January 2023 or later have not been
period of initial application. Management will continue to follow the development of changes
to Standards and Interpretations issued by the IASB throughout 2022.
Note 3 Summary of significant accounting policies
3.1 General information
LINK Mobility Group Holding ASA (“the Company”) is a limited liability Company incorporated
Norway. LINK Mobility Group Holding ASA is the parent company of the LINK Mobility Group AS.
LINK Mobility Group AS provides services in mobile communication and specialises in mobile
messaging services, mobile solutions, and mobile intelligence. LINK Mobility Group Holding
ASA and its subsidiaries are regarded as “the Group”.
2022. Minor rounding differences may be present, and the total may deviate from the total of the
Financial statements 2021
147LINK Mobility Group Holding ASA Annual report 2021
purposes.
3.2 Basis for preparation
Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board
historical cost basis.
critical accounting estimates. It also requires management to exercise its judgments in applying
the Group’s accounting policies. Areas involving a high degree of judgment or complexity,
disclosed in Note 4 Critical accounting judgements and key sources of estimation variances.
rounded to nearest thousand, unless otherwise stated.
3.3 Principles of consolidation
and its subsidiaries, which are entities controlled by the Company. Control is achieved when
the Group has power over the investee, is exposed, or has rights to, variable returns from its
involvement with the investee, and has the ability to use its power to affect its returns through
its power over the investee. The Group reassesses whether it controls an investee if facts and
circumstances indicate that there are changes to one or more of the three elements of control
noted above.
the parent company and consistent accounting policies are applied. The results of subsidiaries
acquired or disposed of during the year are included in the income statement from the date
when control is obtained and until control ceases, respectively. Intercompany transactions,
balances, revenues, expenses and unrealised Group internal gains or losses are eliminated on
consolidation.
rounded to nearest thousand, unless otherwise stated.
3.4 Business combinations
Business combinations are accounted for using the acquisition method. The consideration
exceptions measured at fair values at the date of acquisition. Acquisition-related costs are
recognised in the income statement as incurred.
Goodwill arising from an acquisition is recognised as an asset measured as the excess of the
sum of the consideration transferred, the fair value of any previous held equity interest and the
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assets acquired and the liabilities assumed. If, after reassessment, the Group’s interest in the
total consideration of the business combination, the excess is immediately recognised in the
income statement. Goodwill is allocated to each of the Group’s cash-generating units (or groups
recoverable amount of the cash-generating unit is less than its carrying amount, the impairment
goodwill is not reversed in subsequent periods.
When the consideration transferred by the Company in a business combination includes
contingent consideration arrangements, the contingent consideration is measured at its
acquisition date fair value and included as part of the consideration transferred in a business
combination. Changes in fair value of the contingent consideration that qualify as measurement
period adjustments are adjusted retrospectively, with corresponding adjustments recognised in
goodwill. Measurement period adjustments arise from additional information obtained during
the ‘measurement period’ (which cannot exceed one year from the acquisition date) about
facts and circumstances that existed at the acquisition date. The subsequent accounting for
changes in the fair value of the contingent consideration that do not qualify as measurement
its subsequent settlement is accounted for within equity. Other contingent consideration is
remeasured to fair value at subsequent reporting dates with changes in fair value recognised in
If the initial accounting for a business combination is incomplete by the end of the reporting
period in which the combination occurs, the Group reports provisional amounts for the items
for which the accounting is incomplete. Those provisional amounts are adjusted during the
information obtained about facts and circumstances that existed as of the acquisition date that,
if known, would have affected the amounts recognised as of that date.
3.5 Current/non-current classication
consumption, in the Company’s normal operating cycle, it is expected/due to be realised or
normal operating cycle, the liability is due to be settled within twelve months after the reporting
period or if the Company does not have an unconditional right to defer settlement of the liability
current.
Financial statements 2021
149LINK Mobility Group Holding ASA Annual report 2021
3.6 Revenue recognition
Revenues are recognised when services are rendered and measured based on the consideration
to which the Company expects to be entitled in a contract with a customer net of discounts and
sales related taxes. The Company recognises revenue when it transfers control of a product or
service to a customer.
When another party is involved in providing goods or services to a customer, the Company
the principle) or to arrange for those services to be provided by the other party (i.e. the Company
is the agent). Where the Company does not control the service, the Company is considered an
agent in the transaction.
Revenues primarily comprise sale of services that enable customers to communicate by mobile
phone with their customers. To be able to render these services, the Company needs to obtain
services from one or more telecommunication operators. Cost incurred that are directly related
are expensed in the period in which the related revenue is recognised.
The services rendered are split into the following groups:
Type of service Timing of recognition Measurement of revenue
Mobile
messaging
transactions
The Group provides mobile messaging
services via SMS and other messaging
channels such as Apps, Facebook,
Messenger, WhatsApp and email. Revenue
from messaging is recognised when
the message service has been provided;
when the messages are delivered to the
recipient.
The revenue is based on the
contract, net of discounts
and value added tax.
Payment
services
The Group offers payment solutions where
the customer can get their customers (the
end users) to pay for services by charging
their mobile phone account or credit/debit
card. As payment for these services, the
Group is entitled to remuneration related
to the processed transactions/payment.
Revenue is recognised when the payment
service is rendered.
The Group acts as an agent
for this type of service
and the performance
obligation is to arrange for
the provision of services by
another party. Consequently,
only the income from the
processed transactions is
recognised as revenue.
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Type of service Timing of recognition Measurement of revenue
Licences License revenue consists of revenue
from monthly fees paid by customers for
access to Group platforms and solutions.
No proprietary rights are transferred to
the customer. The revenue is recognised
throughout the duration of the license
agreement.
The revenue is based on the
contract, net of discounts
and value added tax.
Consulting
services
Revenue from consulting services is
recognised in the accounting period during
which the services are rendered.
The revenue is based on the
contract, net of discounts
and value added tax.
3.7 Foreign currency translation
currencies other than the entity’s functional currency are recognised at the rate of exchange
on the date of the transaction. At each reporting date, monetary assets and liabilities that are
denominated in foreign currencies are retranslated at the balance sheet date. Non-monetary
items carried at fair value in foreign currencies are translated using the exchange rate at the
date when the fair value was measured. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated after the transaction date.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents
and losses are presented on a net basis in the income statement as other operating expenses.
Exchange differences are recognised in the income statement in the period in which they arise.
the Company’s foreign operations are translated to NOK at exchange rates on the reporting
date. Income and expense items are translated to NOK at the average exchange rates for
exchange rates at the date of transactions are used. Exchange differences arising, if any, are
recognised in other comprehensive income and accumulated in a separate component of
equity.
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are
considered as assets and liabilities of the foreign entity and translated at the closing rate. These
exchange differences are recognised in other comprehensive income.
On the disposal of a foreign operation (i.e. a disposal of the Company’s entire interest in a
foreign operation), or a disposal involving loss of control over a subsidiary that includes a
Financial statements 2021
151LINK Mobility Group Holding ASA Annual report 2021
foreign operation, all of the exchange differences accumulated in a separate component
of equity in respect of that operation attributable to the owners of the foreign operation are
that includes a foreign operation that does not result in the Company losing control over the
subsidiary, the proportionate share of accumulated exchange differences is re-attributed to
3.8 Intangible assets
Goodwill and intangible assets acquired in a business combination are recognised initially as
set out in 3.4 Business Combinations above.
Amortisation of intangible assets are based on the following estimated useful lives:
Goodwill Indefinite
Tradename 25 year
Customer relations/contracts 7-10
Technology 3-10 years
Goodwill is not amortised but is reviewed for impairment at least annually, or more frequently
when there is an indication that the cash-generating unit to which goodwill has been allocated,
may be impaired. Goodwill is allocated to each of the Company’s cash-generating units (or
the recoverable amount of the cash-generating unit is less than the carrying amount of the unit,
to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount
of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a
subsequent period. On disposal of a cash generating unit, the attributable amount of goodwill is
included in the determination of the gain or loss on disposal in the income statement.
Intangible assets acquired in a business combination and recognised separately from goodwill,
such as Tradename and Customer relations are recognised initially at their fair value at the
acquisition date (which is regarded as their cost).
Subsequent to initial recognition, intangible assets acquired in a business combination
are reported at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised on a straight-line basis over their estimated useful lives. The
estimated useful life and amortisation method are reviewed at the end of each reporting
period, with the effect of any changes in estimate being accounted for on a prospective basis.
losses.
Separately acquired intangible assets
are carried at cost less accumulated amortisation and accumulated impairment losses.
Subsequent to initial recognition, separately acquired intangible assets are reported at cost
less accumulated amortisation and accumulated impairment losses, on the same basis as
intangible assets that are acquired in a business combination.
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Internally generated intangible assets – Technology
Expenditure on research and development activities is recognised as an expense in the period
in which it is incurred. An internally generated intangible asset arising from development of
the Company’s technical platforms and products is recognised if, and only if, all the following
conditions have been demonstrated:
y the technical feasibility of completing the intangible asset so that it will be available for use
or sale;
y the intention to complete the intangible asset and use or sell it;
y the ability to use or sell the intangible asset;
y how the intangible asset will generate probable future economic benefits;
y the availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset; and
y the ability to measure reliably the expenditure attributable to the intangible asset during its
development.
The amount initially recognised for internally generated intangible assets is the sum of the
listed above. Where no internally generated intangible asset can be recognised, development
expenditures are expensed as incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at cost
less accumulated amortisation and accumulated impairment losses, on the same basis as
intangible assets that are acquired in a business combination.
3.9 Equipment and xtures
(including duties and non-refundable purchase taxes) and any directly attributable costs of
bringing the asset to the location and condition necessary for it to be able to operate in the
depreciation and accumulated impairment losses, if any. Depreciation is recognised using the
straight-line method to reduce the cost of assets less their residual values over their useful
lives. Depreciation commences when the assets are ready for their intended use.
Estimated useful life, depreciation method and residual values are reviewed at least annually.
assets, which often is the passage of time. Residual value is estimated to be zero for all assets.
Repair and maintenance are expensed as incurred. If new parts are capitalised, replaced parts
as loss on disposal.
Financial statements 2021
153LINK Mobility Group Holding ASA Annual report 2021
An item of property, plant and equipment is derecognised upon disposal or when no future
difference between the sales proceeds and the carrying amount of the asset and is presented
as other income or other expenses in the income statement.
3.10 Impairment of non-nancial assets
At each reporting date, the Company reviews if there are any indicators that the carrying
amounts of its tangible and intangible assets may be impaired. If any such indication exists, the
recoverable amount of the asset is estimated to determine the extent of the impairment loss
the Company estimates the recoverable amount of the cash-generating unit to which the asset
assets are also allocated to individual cash-generating units, or otherwise they are allocated to
the smallest group of cash-generating units for which a reasonable and consistent allocation
annually and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In
been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised immediately in the income statement.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-
generating unit) is increased to the revised estimate of its recoverable amount, but so that
the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset (or cash-generating unit) in
the relevant asset is carried at a revalued amount, in which case the reversal of the impairment
loss is treated as a revaluation increase. Any impairment loss recognised for goodwill is not
reversed in a subsequent period.
3.11 Leases
The Company initially applied IFRS 16 from 01 January 2019; IFRS 16 was applied using the
the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the
The lease liability is recognized at the commencement date and measured at the present value
of the remaining lease payments, discounted using the company’s incremental borrowing rate
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at the commencement date. The lessee’s incremental borrowing rate is the rate of interest that
a lessee would have to pay to borrow over a similar term, and with similar security, the funds
necessary to obtain an asset of a similar value of the right-of-use asset in a similar economic
environment.
The Company has chosen to measure the Right-of-Use asset (RoU assets) at an amount
equal to the lease liability for all leases by using the lessee’s incremental borrowing rate; the
rate may differ from country to country. RoU assets are depreciated over the lease term as
this is ordinarily shorter than the useful life of the assets. The lease term represents the non-
cancellable period of the lease, together with periods covered by an option either to extend
or to terminate the lease when the company is reasonably certain to exercise this option. The
Company applies the exemption for short term leases (12 months or less) and low value leases.
As such, related lease payments are not recognized in the balance sheet but expensed or
capitalized in line with the accounting treatment for other non-lease expenses. The inclusion of
non-lease components may vary across different lease categories.
3.12 Government grants
The Company receives Government grant as part of the “Skattefunn” arrangement in Norway,
which is an arrangement to stimulate research and development in Norway. The government
grant is initially recognised as a deduction to the carrying amount of the relevant asset. The
amount is subsequently recognised to the income statement on a straight-line basis over the
estimated useful life of the related asset.
Note 4 Critical accounting judgements and key sources of
estimation variances
In the application of the Company’s accounting policies, as described in note 3 (summary of
assumptions that affect the reported amounts of assets and liabilities, income and expenses.
Estimates and judgments are evaluated on an ongoing basis and are based on historical
experience and other factors, including expectations of future events that are considered to be
relevant. Future events may cause these estimates to change and actual results may differ from
these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Changes in accounting estimates are recognised in the period when the changes occurred,
if they apply to that period. If the changes also apply to future periods, the effect will be
distributed between the current period and future periods.
Business combinations
combinations) for further details. In order to account for the business combinations and
determine the fair value of the underlying assets and liabilities in accordance with IFRS 3,
Financial statements 2021
155LINK Mobility Group Holding ASA Annual report 2021
reconciled to the purchase price of the acquired companies. The reconciliation is performed
via a Business Enterprise Valuation (BEV). Intangible assets have been valued using the Multi
Excess Earnings Method (“MEEM”) and Relief From Royalty Method (“RFR”). The methods
are considered to be appropriate for the type of assets being valued (MEEM for customer
relationships and RFR for technology and trade name). The excess of the consideration over the
y The remaining estimated useful life of customer relationships is between 7 and 10 years
y The remaining estimated useful life of technology is 10 years
y Revenue growth and EBITDA (earnings before interest, tax, depreciation and amortisation)
margins are based on estimates of growth and margins in the respective companies
Estimated impairment of goodwill and other intangible assets
The carrying amounts of non-current tangible and intangible assets are assessed by means of
impairment tests whenever there is an indication of impairment. Any impairment of goodwill
is assessed at least annually. The recoverable amounts of cash-generating units have been
determined based on value-in-use calculations. These calculations require management to
discount rate in order to calculate present value. As of 31 December 2021, the amount of
goodwill tested for impairment amounted to KNOK 5 614 510 (FY2020 - KNOK 3 982 843). No
impairment losses were recognised in FY2021 (FY2020 - nil). Please refer to notes 3 (summary
impairment testing methodology and results.
Deferred tax assets
Management judgment is required in determining provisions for income taxes, deferred
tax assets and liabilities and the extent to which deferred tax assets can be recognized.
The Company is also subject to income taxes in various jurisdictions. Judgment is required
in determining the Company’s provision for income taxes. There may be transactions and
calculations for which the ultimate tax determination is uncertain during the ordinary course
were initially recorded, such differences will impact the income tax and deferred tax liability and
expense in the period in which such determination is made.
Purchase price of subsidiaries – earn-out
Periodically, the Company acquires subsidiaries where the preliminary purchase price is
based on an assumption that the acquired company will achieve a target EBITDA for the
out adjustment based on the company’s actual achieved EBITDA. The earn-out adjustment is
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Note 5 Investment in subsidiaries
Group AS. As a result of this merger, LINK Mobility Group AS is the immediate subsidiary of
LINK Mobility Group Holding ASA.
The Company has the following investment in a subsidiary:
Acquisitions during the period:
Entity Country Industry Date of acquisition Proportion of
voting equity
acquired
LINK Mobility Group AS Norway Mobile
messaging
services and
solutions
06 December 2021 100%
LINK Mobility Group AS provides mobile communication services and specializes in
messaging, digital services and data intelligence. 100% of the voting equity interest of the
company was acquired on 06 December 2021 when LINK Mobility Pecunia AS was merged
with LINK Mobility Group AS.
The total amortized cost as of 31 December 2021:
(Amounts in NOK 1 000)
LINK Mobility Group AS
Total amoritzed cost (01.01) 6,899,176
Capital increase subsidiary 357,514
Capital increase subsidiary 587,146
Employee share options in
subsidiary
134,505
Total amoritzed cost (31.12) 7,978,341
Financial statements 2021
157LINK Mobility Group Holding ASA Annual report 2021
Note 6 Other operating expenses
(Amounts in NOK 1000)
2021 2020
Advisors and consultants:
Audit fees 375 163
Legal fees 2,182 37
Stock exchange listing expenses1 2,560 -
Other expenses2 610 169
Total other operating expenses 5,727 369
¹ These costs are representative of stock exchange listing fees, registration fees for increases in share
capital, management of insider logs, and share register analysis.
² Other expenses are representative of license fees, insurance related to merger and acquisition
activities, and insurance premiums.
Auditor’s fees
The table below summarises audit fees for the period 01.01.2021 - 31.12.2021 (01.01.2020 -
31.12.2020) and fees for audit related services, tax services and other services incurred by the
Company during the period.
2021 2020
Audit fee 375 138
Other attestation services - -
Tax consulting services - 25
Other services* - 6,983
Total fee to auditor 375 7,146
* In addition to expensed amounts, NOK 6,946k has been booked to equity. These are fees paid in
relation to the IPO in FY2020.
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Note 7 Net finance income and expenses
(Amounts in NOK 1000)
Interest amounts are presented as a sum of interest on borrowings offset by amortised cost
Net financial income and expenses 2021 2020
Net currency exchange gains (losses)1 132,852 33,656
Net interest expense -35,837 -3,298
Net other financial expense 1,331,915 -169
Total finance income 1,428,931 30,189
Net interest expense 2021 2020
Interest expense financial institutions -100,724 -2,945
Interest expense - seller’s credit -1,876 -
Other interest expenses -1,037 -353
Interest income from related parties 67,800 -
Total net interest expense -35,837 -3,298
Net other financial expenses 2021 2020
Amortized loan set-up costs -9,186 -163
Dividend from related parties2 1,341,726 -
Earn-out payment from M&A transactions - -
Other financial (expenses) income -625 -6
Total net other financial expenses 1,331,915 -169
¹ Foreign currency gain/loss is presented on a net basis here and in the Statement of Profit and Loss.
Exposure to fluctuations in foreign currency comes from external lending denominated in EUR. Refer
to note 11 (interest-bearing liabilities) and note 12 (financial instruments, risk management objectives,
and policies) for further details.
² In order to align intercompany financing with external financing for the Group, dividends were declared
in each of BK Invest GmbH, Simple SMS GmbH, LINK Mobility SAS, LINK Mobility AB, GfMB mbh, and
LINK Mobility Holding ApS. These amounts also comprise part of long-term receivables - intercompany;
they are adjusted for fluctuations in foreign currency as well as interest.
In addition to the dividend amounts receivable, long-term receivables is also comprised of
loans established and related to acquisitions in the current year. This includes the purchase of
Message Broadcast LLC (USA) and Altiria TIC Sociedad Limitada (Spain).
Financial statements 2021
159LINK Mobility Group Holding ASA Annual report 2021
Note 8 Cash and cash equivalents
(Amounts in NOK 1000)
2021 2020
Cash and cash equivalents 139,684 122,234
Total cash and cash equivalents 139,684 122,234
Restricted cash 2021 2020
Restricted cash - -
Bank balance in escrow account - -
Total cash and cash equivalents 139,684 122,234
If applicable, cash and cash equivalents include amounts classified as restricted cash. There are no
restricted amounts as at 31 December 2021.
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Note 9 Share capital and shareholder information
Share capital as at 31 December 2021 is KNOK 1 471 (2020: KNOK 1 355), being 294 252 254 ordinary
shares (2020: 270 911 039 ordinary shares) at a nominal value of NOK 0.005/share (2020: NOK 0.005/
share). There are no preference shares in FY2021 (FY2020: nil).
All shares were fully paid; each ordinary share carries one vote at any general meeting.
The movement in the number of shares during the year was as follows:
2021 2020
Ordinary shares opening balance 2021/2020 270,911,039 10,682,803
Issue of ordinary shares (07 January 2020) 10,934
Conversion of nominal value from NOK 0.10 to NOK 0.005
Share split (15 September 2020) 213,874,740
Issue of ordinary shares (15 September 2020) 324,000
Issue of ordinary shares (05 October 2020) 53,200,000
Issue of ordinary shares (16 November 2020) 3,512,299
Issue of ordinary shares (11 March 2021) 1,226,637
Issue of ordinary shares (31 March 2021) 1,687,589
Issue of ordinary shares (31 May 2021) 1,723,310
Issue of ordinary shares (07 June 2021) 16,755,069
Issue of ordinary shares (24 June 2021) 1,235,424
Issue of ordinary shares (14 December 2021) 713,186
Ordinary shares at the end of the period 294,252,254 270,911,039
Preference shares:
Preference shares opening balance 2021/2020 - 129,158
Share split (15 September 2020) 2,583,160
Settlement of preference shares -2,583,160
Preference shares at the end of the period - -
Total number of shares at the end of the period 294,252,254 270,911,039
Financial statements 2021
161LINK Mobility Group Holding ASA Annual report 2021
LINK Mobility Group Holding ASA has the following major shareholders as at 31 December 2021:
Name of shareholder Type of account Ownership interest
Citibank, N.A. Nominee 31.84%
State Street Bank and Trust Comp Nominee 8.07%
KARBON INVEST AS Ordinary 5.42%
Citibank, N.A. Nominee 4.56%
FOLKETRYGDFONDET Ordinary 4.31%
Saxo Bank A/S Nominee 3.55%
UBS AG LONDON BRANCH Ordinary 3.09%
Skandinaviska Enskilda Banken AB Ordinary 3.08%
FERD AS Ordinary 2.50%
Skandinaviska Enskilda Banken AB Nominee 2.17%
J.P. MORGAN BANK LUXEMBOURG S.A. Nominee 1.62%
The Bank of New York Mellon SA/NV Nominee 1.29%
J.P. MORGAN BANK LUXEMBOURG S.A. Nominee 1.19%
Citibank, N.A. Nominee 1.14%
BARCLAYS CAPITAL SEC. LTD FIRM Ordinary 1.13%
The Bank of New York Mellon Nominee 0.95%
VERDIPAPIRFONDET DNB NORGE Ordinary 0.86%
Danske Bank A/S Nominee 0.79%
SUNDT AS Ordinary 0.78%
VERDIPAPIRFONDET DELPHI NORDIC Ordinary 0.64%
78.98%
The company’s trustees (Board Members, management) hold ownership interests and rights to shares:
Name of shareholder Total number of shares
Victory Partners VIII Limited via a nominee
account in Citibank (controlled by Abry who have
4 Board members)
93,612,321
Karbon Invest AS (controlled by Jens Rugseth) 15,945,105
Sundahl Aps (controlled by EVP M&A and Global
Messaging Søren Sundahl)
9,139,242
Rugz AS (controlled by Jens Rugseth) 500,000
Guillaume Alain Van Gaver 204,010
Thomas Berge 182,786
Fredrik Nyman 168,465
Benoit Bole 54,585
Hendrik Faasch 27,267
Ina Rasmussen 26,343
Lin Ackema 14,725
Grethe Helene Viksaas (Board member) 6,382
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Note 10 Classes and categories of financial instruments
(Amounts in NOK 1000)
Carrying value
2021 Amortised cost Total
Current financial assets
Cash and cash equivalents 139,684 139,684
Non-current financial liabilities
Borrowings 3,698,186 3,698,186
Current liabilities
Borrowings 6,980 6,980
Trade payables 289 289
The financial assets held by the Company are held within a business model with the objective to hold
financial assets in order to collect contractual cash flows and are thus measured subsequently at
amortised cost less loss allowances.
All financial liabilities are measured at amortized cost.
The carrying amounts of financial assets and liabilities approximate their fair value as at 31 December
2021. Arrangements with financial institutions are entered into on market terms, and the carrying value
at the reporting date has been assessed as approximating fair value.
The recognised amounts consitute a reasonable approximation of fair value.
Note 11 Interest-bearing liabilities
(Amounts in NOK 1000)
Interest bearing liabilities are measured at amortised cost.
Non-current financial liabilities 2021 2020
Bond loan 3,629,772 2,073,280
Holdback 66,538 -
Total 3,696,310 2,073,280
Current liabilities 2021 2020
Bond loan* 6,980 2,945
Total 6,980 2,945
*Instalments falling due within a 12 month period, including non-capitalised interest, are classified as current.
Financial statements 2021
163LINK Mobility Group Holding ASA Annual report 2021
Contractual maturities of financial
liabilities at 31 December 2021
< 3 months 3 months -
1 year
1 - 2 years 2 - 5 years Total
Bond loan (tap issue 15.12.2020) - 67,424 67,424 2,166,321 2,301,170
Bond loan (tap issue 23.06.2021) - 57,311 57,311 1,841,373 1,955,994
Total - 124,735 124,735 4,007,694 4,257,164
Contractual maturities of financial
liabilities at 31 December 2020
< 3 months 3 months -
1 year
1 - 2 years 2 - 5 years Total
Bond loan (tap issue 15.12.2020) - 71,666 71,666 2,309,539 2,452,871
Total - 71,666 71,666 2,309,539 2,452,871
2021 2020
Principal amount (tap issue 15.12.2020) 1,998,768 2,094,345
Principal amount (tap issue 23.06.2021) 1,699,011 -
Transaction costs (tap issue 15.12.2020)1 -21,228 -21,228
Transaction costs (tap issue 23.06.2021)1 -56,127 -
Amortization (tap issue 15.12.2020) 4,118 163
Amortization (tap issue 23.06.2021) 5,231 -
Accrued interest and fees 6,980 2,945
Carrying amount 3,636,753 2,076,225
¹ The bond loan is initially measured at fair value net of transaction costs and it is subsequently
measured at amortized cost using the effective interest rate method. Consequently, the transaction
cost will be amortized over the life of the bond loan. The carrying value of the bond loan will be equal to
the principal amount of EUR 370 million at maturity in FY2025.
Collateral and guarantees
On 15 December 2020, LINK Mobility Group Holding ASA (LINK) successfully completed the
issuance of EUR 200 million senior unsecured bonds, with a EUR 350 million borrowing limit.
Part of the proceeds from the bond issue were used to repay the remaining outstanding senior
facility agreement (SFA).
On 23 June 2021, LINK issued EUR 170 million new bonds in LINK’s outstanding 5-year senior
million. The bonds were issued at par.
to be repaid in full at the maturity date.
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Note 12 Financial instruments, risk management objectives, and
policies
Through its operations LINK Mobility Group Holding ASA is exposed to the the following
y Interest rate risk
y Foreign exchange risk
y Credit risk
y Liquidity risk
Interest rate risk
Interest rate risk arises as a consequence of long-term debt. In December 2020 the Company
successfully completed the issuance of EUR 200 million senior unsecured bonds, with a EUR
350 million borrowing limit.
On 23 June 2021, LINK issued EUR 170 million new bonds in LINK’s outstanding 5-year senior
million. The bonds were issued at par; refer to note 11 for further details.
The sensitivity analysis below is based on the exposure to changes in interest rates for non-
assuming the amount outstanding at reporting date was outstanding for the whole year. A
one percent increase or decrease represents management’s assessment of reasonable and
possible changes in interest rates.
If interest rates had been one percent higher/lower and all other variables were held constant,
decrease/increase by KNOK 36 959 (FY2020 KNOK 20 941). This is mainly attributable to the
Company’s exposure to interest rates on its variable rate borrowings.
Foreign exchange risk
The Company is a holding company and does not actively undertake business in foreign
exchange risk arises from transactions related to operations conducted, and assets and
liabilities arising in foreign currencies.
31 December 2021
(amounts in NOK 1000) NOK/EUR impact NOK/SEK impact NOK/CHF impact
Borrowings 36,959 - -
Credit Risk
The Company is a holding company and owns all shares in LINK Mobility Group AS; credit risk is
deemed to be low.
Financial statements 2021
165LINK Mobility Group Holding ASA Annual report 2021
Liquidity risk
mature, resulting in default.
bank accounts as of year-end. Obligations are covered by transfer of cash from subisidiaries.
11 for information about the bond convenants.
The Company does not have any credit facilities.
Note 13 Trade and other payables
(Amounts in NOK 1000)
Trade and other payables 2021 2020
Trade payables 289 5,631
VAT payable 25 1,545
Other accruals 96 46
Total trade and other payables 410 7,222
Trade payables and accruals principally comprise amounts outstanding for trade purchases
and ongoing costs.
Trade and other payables are due within three months.
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Note 14 Income tax
(Amounts in NOK 1000)
Specication of income tax expense
tax and deferred tax.
2021 2020
Deferred tax expense (income) 5,017 -
Current tax expense - 725
Income tax (income) 5,017 725
Income tax payable (balance sheet) 2021 2020
Income tax payable - 725
Current tax liabilities (balance sheet) - 725
Effective Tax Rate
The difference between income tax calculated at the applicable income tax rate and the income
tax exepense attributable to loss before income tax was as follows:
2021 2020
Profit/(loss) before income tax 1,423,203 29,820
Statutory income tax rate* 22% 22%
Expected income tax benefit 313,105 6,560
Tax effect on non-taxable income/expenses -304,734 -23,973
Effect of changes in tax rules and rates* - -
Prior year adjustment -725 -
Non deductible interest, interest cap rules 14,864 -
Current tax expense, interest cap rules 725
Change in deferred tax asset not recognized -17,493 17,412
Income tax expense/income (-) for the year 5,017 725
Effective tax rate 0% 2%
* The statutory income tax rate based on the currently enacted tax rate in Norway.
Financial statements 2021
167LINK Mobility Group Holding ASA Annual report 2021
Specication of the tax effect of temporary differences and losses carried forward
Tax losses carried forward
2021 2020
Unused tax loss carry forward - 97,280
Interest cap - 3,298
Potential tax benefit unused tax losses @ 22 % - 21,402
Potential tax benefit interest cap @ 22 % - 725
Deferred tax assets related to tax losses have not been recognised as it is deemed unlikely
that the company will generate taxable income in the foreseeable future. The tax loss can be
recognised. The amount can be carried forward for 10 years.
Tax effect of temporary differences and tax losses carried
forward as of 31 December
Deferred tax liabilities: 2021 2020
Long term receivables and debt in foreign currency 35,031 -
Other provisions 4,898 -
Tax loss to carry forward (-) -24,124 -
Deferred tax liabilities 15,806 -
Unrecognised temporary differences 2021 2020
Temporary differences for which deferred tax liabilities have not been recognised - 21,065
Unrecognised tax liabilities relating to the above temporary differences @ 22 % - 4,634
The temporary differences are related to unrealized gains from currency translation. Deferred
tax liability has not been recognised as it is deemed unlikely that the company will generate
taxable income in the foreseeable future.
Note 15 Contingencies and legal claims
The Company is not involved in any disputes or litigation as at the balance sheet date or as at
or require additional disclosure. Management and the Board of Directors are not aware of any
such incidents that may have a negative impact on the Company.
168
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170 Because every communication matters
WWW.LINKMOBILITY.COM
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171LINK Mobility Group Holding ASA Annual report 2021
0164 Oslo , Norway
info@linkmobility.com
+47 22 99 44 00 (HQ)