LINK Mobility Group Holding ASA
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Annual Report 2022 |
Annual Report 2022
LINK Mobility Group Holding ASA
LINK Mobility Group Holding ASA
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Annual Report 2022 |
LINK in short
Message from the CEO
LINK and the digital messaging industry
LINK strategic context
LINK’s versatile business model
LINK to execute on profitability in 2023
LINK in the US
LINK product portfolio
Sustainability at LINK
People
Planet
Profit
Report from the Board of Directors
Market position and development
Comments related to financial statements
Risks
Board statement on corporate governance
Financial statements
03
05
07
11
14
19
22
25
30
32
37
40
44
45
46
47
51
61
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK in short
LINK has 700 employees in 30 offices across 18 countries
in Europe and the US
2022 revenue NOK 5.2 billion
Adjusted EBITDA NOK 625 million => EBITDA margin 12%
LINK’s 50 000 customers worldwide last year sent 17 billion messages,
averaging more than 300 000 messages per customer
LINK in short
Revenue NOKm Adjusted EBITDA NOKm
2000
4000
6000
0
5190
300
600
900
0
2022
+22% +27%
2890
2019
3539
2020
4410
2021
625
308
391
557
20222019 2020 2021
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK in short
2021
2020
2022
US customer base
WebSMS (Austria)
Altiria (Spain)
Acquisition of chatbot Xenioo
Expansion to the US
with Message Broadcast
AMM (Italy)
Tismi (Netherlands)
LINK was founded more than 20 years ago and relisted on the Oslo Stock Exchange in 2020 after being
taken private in 2018. Since returning to the stock market, LINK has completed 5 new acquisitions in
Europe and expanded to the US.
LINK has offices in most European countries and the US
LINK Mobility Group Holding ASA
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Annual Report 2022 | Message from the CEO
LINK continues to grow and dominate its markets,
demonstrating our ability to adapt to changing macroeconomic
conditions and market trends. After a couple of strong years
for the Communication Platform as a Service (CPaaS) industry,
2022 experienced slower growth with lagging market adoption
for more advanced CPaaS products. New complex solutions,
with a significant potential for increased customer satisfaction
and efficiency savings, require larger value chain adaptations
by customers which were postponed in a more uncertain macro
environment. Despite these tougher market conditions in 2022,
LINK delivered organic revenue growth of 12% and entered
2023 with a significantly higher contract backlog and better
growth momentum. Assuming stable
macro trends, we expect continued
improvements through 2023 and into
2024.
LINK’s board of directors concluded in
2022 that the company had matured
from a private to a public company
and successfully evolved from an
Application to Person (A2P) messaging
provider to an established CPaaS
player. To build on this position and
further strengthen strategic execution
in the next development phase,
André Christensen was elected new
chairperson of the board and I was
appointed CEO. A continuation of historical knowledge and
competence was secured by Jens Rugseth, the founder and
former chairperson, carrying on as board member. The new
chairperson brings strong industry knowledge and commercial
capabilities as an entrepreneur and investor with broad strategic
and operational experience from Software as a Service (SaaS)
scale-ups across Europe, North America and Asia.
LINK implemented commercial changes and cost reduction
initiatives in 2022 to improve growth and profitability. We also
prioritized development and sales of products on the preferred
customer channels SMS, RCS and WhatsApp and selected
CPaaS solutions with proven market demand like our chatbot
Xenioo. These changes resulted in higher forecasted gross
profit contribution from new contract wins, up 63% YoY to NOK
70 million in the second half of 2022.
Message
from the
CEO
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Annual Report 2022 | Message from the CEO
In addition, reflecting LINK’s evolving product portfolio and
broader geographical footprint, the contribution from our global
clients also increased through 2022.
In the US, LINK’s growth momentum gained traction with several
new contract signings, significantly increasing recurring revenue
streams through licenses, committed buckets of messaging
and ongoing professional services. On top of this, additional
revenue from weather related critical events messaging will
be recognized as the new contracts, geographically diversified
across the US, are implemented, and scaled.
LINK’s Environmental, Social and Governance (ESG) strategy
set in 2021 was followed for 2022, with collection of carbon
data for the first time. The results are visible in this report, with
further information in the GHG report available on our webpage
as part of LINK’s sustainability reporting.
LINK is now well positioned to reach our growth objectives with
an attractive product portfolio and dedicated employees working
together with existing and new clients in all our markets. Main
priorities for 2023 are improved organic gross profit growth
combined with tight cost control
to deliver growth in fixed currency
organic adjusted EBITDA of 12-15%
and to further enhance free cash flow
generation. In close cooperation with
our numerous customers and partners,
we are confident LINK will provide
significant value creation through 2023
and continue to strengthen our leading
position within the CPaaS industry.
Thomas Berge, CEO
Oslo, 27 April 2023
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK and the digital messagig industry
LINK
and the
digital
messagig
industry
Annual Report 2022
CHAPTER 01
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK and the digital messagig industry
LINK and the digital
messaging industry
LINK has been in the digital messaging industry since the company was founded in Norway more
than 20 years ago. At the time SMS from Person to Person (P2P) was already established, while A2P
SMS was still emerging. LINK played a vital role in growing the A2P market in Norway, which today is
the most mature and widely adopted digital messaging market in the world. Following its success in
Norway, LINK expanded in Scandinavia, throughout Europe from 2016 and to the US in 2021. LINK is
now the leading provider of enterprise digital messaging solutions in Europe and has a firm foothold
in the US.
A2P SMS refers to one-way messaging sent by an application to many individuals at once. Businesses
and governments send billions of A2P messages, including notifications, like reminders and One-Time
Passwords (OTP) and mobile marketing messages. Digital messaging has increased exponentially
during the last two decades with the proliferation of mobile phones.
A2P messaging utilises local and global
telecommunications networks. To deliver
A2P SMS, LINK orchestrates messages sent
by businesses or governments through the
relevant Mobile Network Operators (MNOs)
to reach end users. MNOs are channel
suppliers and LINK facilitates message
delivery across all competing mobile
networks.
Before the emergence of smartphones
and third-party messaging apps, MNOs
were the only channel available for mobile
digital messaging. Today, apps such as
WhatsApp, Facebook Messenger, WeChat,
Viber and others are now the favoured
mode of communication for many. These
types of communication apps are known as
Over-the-Top (OTT) channels which refer to
internet streamed content, historically with
devices that go “over the top” of the cable
TV box. SMS however remains the largest
messaging channel globally with more than
5 billion monthly active users.
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Annual Report 2022 | LINK and the digital messagig industry
OTT apps have transformed digital messaging as billions of smartphone users across the world
have been introduced to rich media experiences such as images, videos, group chats and interactive
content. Features which now are commonplace in daily communication globally. The popularity of the
different OTT apps however varies greatly by country and region.
Messaging platform Monthly active users (m)
WhatsApp 2,440
WeChat 1,290
Facebook Messenger 1,000
Viber 823
Telegram 550
LINE 86
Kakao Talk 47
Global OTT messaging apps
OTT messaging apps popularity by country
Source: Juniper Research
Source: Juniper Research
Facebook Messenger
Viber
WeChat
WhatsApp
No Data
ICQ Videa Calls & Chat Rooms
LINE
Kakao Talk
Telegram
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Annual Report 2022 | LINK and the digital messagig industry
Given the rise of competing channels, MNOs have taken steps to retain its dominant position in the
A2P messaging market and prevent third-party OTT apps capturing a large share of a global market
estimated at more than USD 60 billion. Plain SMS, restricted to text only with a maximum of 160
characters, has evolved to incorporate a URL link to a landing page with rich content. In addition to
SMS, MNOs have developed Rich Communication Services (RCS) together with Google and compatible
with Android mobile devices. RCS or SMS 2.0 provides comparable features to the new OTT channels
and has been introduced by MNOs in numerous European countries and by hundreds of operators
globally.
These technology shifts offer vast new opportunities for digital messaging, but also increase
complexity for businesses and governments. The challenge of orchestration is no longer limited to
MNOs but also includes the many new third-party messaging apps. End users increasingly expect
to communicate with businesses and governments as they do privately, conversational or two-way
messaging on their preferred channel. To orchestrate this complexity and facilitate for the significant
value creation potential in direct conversations with end users, the channel agnostic CPaaS industry
has emerged. MarketsandMarkets estimates the global CPaaS market to grow by a Compound Annual
Growth Rate (CAGR) of 29.4% over the next five years from USD 12.5 billion in 2022 to USD 45.3 billion
in 2027.
To benefit fully from these recent technological advances, end users need to be engaged in conversational
communication on their preferred channel. LINK has a clear competitive advantage in facilitating such
CPaaS solutions with our unique use case library from the most advanced digital messaging market in
the world, local market presence across Europe and in the US and a well-established global customer
base.
Disruptors & Challengers
MITTO
SOPRANO DESIGN
INTEROP TECHNOLOGIES
ZENVIA
PLIVO
GMS WORLDWIDE
TYNTEC
ROUTE MOBILE
KALEYRA
WEBEX by CISCO
TWILLIO LINK Mobility INFOBIP
Leading Challengers
Capacity and Capability
Product and Positioning
Established Leaders
VONAGE
SYNIVERSE
MESSAGEBIRD
COMVIVA
SINCH
CM.com
LINK is a leading global CPaaS provider
Source: Juniper Research
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK strategic context
LINK
strategic
context
Annual Report 2022
CHAPTER 02
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK strategic context
LINK strategic context
Because every communication matters, LINK constantly enhances how messages are delivered and
conversations are created for our customers.
At the heart of LINK’s strategy is our continuous effort to offer businesses and governments
communication solutions that increase customer engagement, satisfaction and loyalty. By
implementing our solutions, companies can greatly improve their customer satisfaction.
All customer communications, from a simple one-way SMS to rich omnichannel conversations,
must bring real value, both to LINK’s customer and to the end user. The communication needs to be
carried and delivered by the most appropriate channel depending on the type of message, profile and
preference of the customer and location or device.
From a history of being the leading enterprise business A2P provider in Europe, focusing on one-way
ubiquitous communication, LINK has evolved its strategy to become a worldwide CPaaS provider.
LINK has maintained and strengthened 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 situated across 30 offices. The needs of smaller enterprises or SMEs are covered through
Self-Sign Up (SSU) portals, where onboarding can be done in minutes with off the shelf product
offerings.
LINK’s Go-to-Market (GTM) approach 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 grown to more than
750 partners.
Local market presence has always been and
continues to be part of LINK’s DNA and a key
part of our value proposition. We have further
strengthened 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
adaptation and development where needed and
we provide local first line customer support in our
customers’ preferred language. Local presence
in combination with solutions tuned to the needs
of each enterprise customer improves loyalty, net
retention rates and minimizes customer churn.
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK strategic context
M&A is an important part of LINK’s growth history and
continues to be a key part of our strategy. Acquisitions
serve different purposes, including being an effective tool
for acquiring new products or capabilities, expanding into
new geographies, or achieving scale in existing markets.
Increased macroeconomic uncertainty last year impacted
the digital messaging industry differently depending on
use case. Retail volumes, often linked to mobile marketing,
experienced headwinds, while notifications use cases, used
for more essential communication, saw sustained growth.
Efficient customer care solutions, which reduce costs and
increase customer satisfaction, proved countercyclical.
Into 2023, LINK is well positioned for continued growth
and sees a large upselling potential for our more advanced
products longer-term as market adoption rates catch up
with technological advances.
In the second half of 2022, LINK enhanced its focus on
execution of existing commercial opportunities by more
clearly prioritizing mature products and selected CPaaS
solutions with proven demand. LINK also implemented
operating expenditure (OPEX) and capital expenditure
(CAPEX) initiatives to ensure continued strong free cash
flow generation. As part of the cost reduction initiatives,
the organization was further decentralized to support local
governance, which best understand the customer needs.
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 as a top
global CPaaS player. In our operational and strategic work
and in our attitudes and behaviours towards colleagues,
customers and suppliers, we regard diversity, equity
and inclusion as levers for innovation, development and
profitability. Our ESG criteria form an integral part of LINK’s
strategy. Please refer to section “Sustainability at LINK”.
DEDICATED
ENTHUSIASTIC
UNITED
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK’s versatile business model
LINK’s
versatile
business
model
Annual Report 2022
CHAPTER 03
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK’s versatile business model
LINK’s versatile
business model
LINK derives revenue from three
main use cases; notifications, mobile
marketing and customer service.
LINK’s largest share of traffic
comes from notification use cases
with around 70% of group revenue.
Notifications are linked to essential
activities like healthcare, utilities and
critical supplies and include reminders,
alerts, updates and mission critical
communication. The market for
essential communication tends to be
stable with a growth momentum in the
high single-digits.
LINK is less exposed to mobile
marketing use cases, contributing
just above a fifth of revenue. Digital
messaging for marketing has for years
been an important channel for large retailers. With higher engagement scores and click-through rates
for RCS and WhatsApp, we are now also seeing accelerated interest from smaller players across Europe.
Mobile marketing use cases are more sensitive to changes in consumer confidence as compared to
essential notifications.
Customer service or Contact Center as a Service (CCaaS) is an area with significant value creation
potential from CPaaS solutions. As an example, introduction of chatbots to resolve most inbound
enquiries bring large cost savings and increases end user satisfaction with its ease and timeliness.
Customer service, vast and to a large extent still based on Interactive Voice Response (IVR) or
automated telephone systems, is a large and counter cyclical growth area for CPaaS players due to
cost savings for clients.
LINK’s GTM approach
LINK focuses on three main GTM approaches to scale revenue through customer acquisitions. The
most important customer acquisition method for LINK’s enterprise business model is our localized
salesforce. LINK employs more than 100 salespeople in local markets to provide superior service and
value by being present, speaking the language and knowing our customers.
Revenue by use case*
Notifications Mobile marketing Customer service
* Estimated from industry classification of customer data
70%
22%
8%
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK’s versatile business model
To reach beyond local enterprise markets, LINK has established a new team, Global Sales, to gain
traction on global clients. Several global companies were acquired as new customers in 2022 and
an extensive pipeline was established. LINK’s approach is to evolve initial contract wins into deep
software integrations and long-term client relations. As an example, LINK now sees a considerable
growth potential together with a global hyperscaler, from already signed high margin contracts, with
the initial business being simple OTP messaging.
Another important GTM route for LINK is our partnership program with dedicated partner managers
based on LINK’s success in the Nordics, where partners have been instrumental for growth and
scalability. The program has in recent years been expanded throughout Europe and is divided into three
tiers, pending level of integration and commercial cooperation.
Official
Platinum Partner
Official
Gold Partner
Official
Certified Partner
More than 100 local
salespeople speaking the
language and knowing the
customers
Global Sales team reaching
beyond local markets
Dedicated partner managers
following up tier based
program
Self-Sign Up portals with
strong local SME brands in
several markets
Enterprise Partners SSU
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Annual Report 2022 | LINK’s versatile business model
LINK’s pragmatic M&A approach
LINK has a proven M&A track record in creating value beyond organic growth. In less than 10 years, LINK
has completed more than 30 acquisitions to become the clear market leader for enterprise messaging
solutions in Europe and gained a foothold in the US with the 2021 acquisition of Message Broadcast.
Value is driven by acquiring companies that advance LINK’s core business based on a three-pillar
approach depending on the type of acquisition target. Add-on acquisitions aim to increase the
customer base and grow market share in local markets. Level-up cases refer to acquisitions of larger
companies to gain access to new markets. Solutions acquisitions are defined as acquisitions of
innovative software products to further advance LINK’s product portfolio.
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
LINK’s third GTM approach is SSU portals with strong local brands in several markets. SSUs form the
central part of business with high margin local SME customers.
LINK’s top three SSU portals and brands are SMSAPI, Spot-Hit and WebSMS.
SMSAPI, offered in a number of
European languages, operates
out of Poland and successfully
been expanded into Sweden
and Bulgaria
Spot-Hit, multi-channel CPaaS
brand with a strong retail
position. Based in France, it
is also offered to the Spanish
market and selected UK
customers as a white-label
solution
WebSMS, easy-to-use online
portal for SMS messaging in the
DACH region. The portal allows
for numerous SMS messages
to and from multiple contacts
simultaneously
powered by
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Annual Report 2022 | LINK’s versatile business model
The M&A process follows a clear path from target identification through to integration and realization
of synergies. Suitable targets must either be technically advanced or established and profitable with a
documented low customer churn. Valuation must be accretive and financing deleveraging.
In November 2002, LINK took over a customer base
in the US carved-out from a larger undisclosed
company. Please refer to section “LINK in the US”.
LINK acquired the chatbot Xenioo in December 2021
Example of add-on acquisition
Example of solutions acquisition
US customers base
Add-on
Solution
by
M&A pipeline for further expansion
LINK seeks out potential targets from an extensive and largely exclusive M&A pipeline including
solutions companies with advanced product capabilities, local players with strong market positions
and level-up cases into new markets. The digital messaging industry is still fragmented with significant
opportunities to be harvested through a pragmatic M&A approach.
LINK lastly completed a level-up acquisition in 2021
with the acquisition of Message Broadcast in the US.
The acquisition expanded LINK’s footprint beyond
Europe. Please refer to section “LINK in the US”.
Example of level-up acquisition
Level-up
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Annual Report 2022 | LINK to execute on profitability in 2023
LINK to
execute on
protability in
2023
Annual Report 2022
CHAPTER 04
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK to execute on profitability in 2023
LINK to execute on
profitability in 2023
Commercial attention was aligned to market demand in 2022 by focusing on the preferred customer
channels SMS, RCS and WhatsApp and selected CPaaS solutions with proven market demand like
LINK’s chatbot Xenioo. These solutions are quick to implement and contribute 75% of their contracted
full gross profit potential within 12 months. LINK still invests in technologically advanced CPaaS
solutions, we are however aligning our pace to the rate of market adoption.
High demand customer channels
SMS remains the channel of choice with more than 5 billion global users due to its simplicity and
unparalleled open rate of 98%. For simple but essential notifications, SMS continues to have a clear
advantage over other channels. At LINK we have successfully rolled out our new customer initiative
“One-more SMS” creating additional value to our broad customer base.
RCS is a communication channel for
customer engagement. RCS combines
the usability of SMS with an engaging
and conversational experience. RCS
has been developed by Google in
cooperation with MNOs and works on
Android smartphones within the native
SMS application. RCS is especially well
suited for mobile marketing, vastly
improving customer engagement
and generating return on investment
metrics up to 5x traditional SMS.
LINK was awarded
“Best RCS Provider”
by Juniper Research
last year
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Annual Report 2022 | LINK to execute on profitability in 2023
LINK’s cloud-based chatbot Xenioo includes
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 easy to implement,
provides immediate cost savings for customers
and is currently included in CPaaS solutions in
both Europe and the US. Batfast, a virtual reality
multi-sports entertainment company, applies
Xenioo to answer customer Frequently Asked
Questions and for quick technology support.
Since implementation both usage and customer
satisfaction have increased.
WhatsApp, the largest messaging channel after
SMS, is an alternative OTT internet streamed
messaging channel owned by Meta with more
than 2 billion users globally. WhatsApp is
emerging as an attractive new channel both for
marketing purposes and within customer care in
combination with chatbots. Marionnaud, a multi-
brand European beauty retailer has adopted
Xenioo combined with WhatsApp as a channel
for customer chats. This seamless chatbot
integration, with live agents at central or store
level, has improved customer satisfaction and
reduced costs.
Costs streamlined
LINK specified concrete OPEX and CAPEX initiatives in October 2022, which have been increased and
implemented ahead of plan. OPEX reductions are expected to partly offset underlying cost increases
and improve profitability in 2023 by NOK 60 million compared to 2022, which reported adjusted EBITDA
of NOK 625 million. CAPEX has further been reduced by close to NOK 30 million to an annual level of
around NOK 150 million. LINK now has the right resources and capabilities to continue to grow and
advance our leading market position.
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK in the US
LINK in the US
Annual Report 2022
CHAPTER 05
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK in the US
LINK has a strong foothold in the US, through its fully consolidated subsidiary Message Broadcast,
with significant scope for growth and profitability. Message Broadcast is headquartered in Newport
Beach, California, and is a leading provider of mission-critical customer engagement solutions to large
US enterprise customers.
LINK
in the US
Message Broadcast was founded in 1998 by Bill Joiner and Bill Potter, leveraging innovative information
technology to automate customer interactions. LINK acquired Message Broadcast in June 2021.
Bill Joiner Bill Potter
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Annual Report 2022 | LINK in the US
Message Broadcast offers its proprietary CPaaS platform Enterprise Omnichannel Notification 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, healthcare, telecommunications
and financial services, all with operational and mission-critical communication needs strictly regulated
by industry and government bodies.
Message Broadcast has two main revenue streams. Revenue from messaging solutions, which
include messaging transactions, licenses and professional services. Alongside more volatile revenue
from weather related critical events messaging, historically driven by wildfires in the Western US
and hurricanes in the Gulf of Mexico and more recently also including winter related weather events
across the US. For its utility clients, extreme weather events demand highly scaled communications
capabilities, resulting in millions of digital health and public safety communications to consumers
during a single event.
In 2022, Message Broadcast won several new contracts including two 3-year utilities agreements
worth close to USD 8 million covering both messaging solutions and critical events messaging, not
including unforeseen or non-committed messaging volumes.
In November 2022, LINK agreed to take over a customer base in the US carved-out from a larger
undisclosed company. The customer base was fully merged with Message Broadcast in December to
provide further diversification and growth opportunities in the US.
Message Broadcast serves large US brands, automating personalized conversations that increase
customer engagement and satisfaction while reducing operational expenses. Notable clients include
companies such as AT&T, Southern California Edison, Entergy and IBM.
Message Broadcast increased its contribution to the group significantly in 2022 with traction on both
messaging solutions and a more normalized level of critical events messaging. LINK sees excellent
scope for further growth in 2023.
LINK Mobility Group Holding ASA
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Annual Report 2022 | LINK product portfolio
LINK
product
portfolio
Annual Report 2022
CHAPTER 06
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Annual Report 2022 | LINK product portfolio
LINK product portfolio
A2P messaging is advancing to CPaaS solutions with the emergence of new technologies that
facilitate more sophisticated applications. LINK seeks to be a leader in digitalisation, with an offering
that may surpass customer expectations, by creating products and solutions anticipating these market
developments.
LINK’s product portfolio is transitioning from basic one-way A2P messaging to conversational CPaaS
solutions. The portfolio currently consists of messaging channels and software solutions. The shift
towards conversational interfaces is primarily based on utilizing more advanced channels with greater
capabilities than the basic channels. LINK is adapting to this transition by creating products which
allow customers to choose their preferred communication with end users. When identifying the best
solution, the focus is on customer objectives and needed system interactions to streamline or digitize
the communication process. Once a successful solution has been designed, LINK achieves scalability
by marketing the product to other industries and markets.
CHANNEL ORCHESTRATION
Software Solutions
Messaging Channels
NOTIFICATION
MARKETING
AUTOMATION CONVERSATIONCHAT PAYMENT
CUSTOMER
DATA
PLATFORM
LINK CPaaS product offering
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Annual Report 2022 | LINK product portfolio
Messaging channels
LINK offers access to various messaging channels like SMS, WhatsApp, RCS and Viber and helps
businesses combine these efficiently and effortlessly. This orchestration process ensures that our
enterprise customers can reach their end users where they are at the right time and in the right format.
Software Solutions
Notifications
LINK provides a variety of solutions for executing traditional A2P notification messages. Customers
can use these solutions from their web browsers to communicate with single recipients and large
audiences for internal and external purposes. The primary channel for communication is SMS, which
has global reach and high recipient attention. The solutions include several features such as opt-in and
opt-out, automated responses and actions, two-way capabilities, forwarding, voting, and competitions
to ensure efficient communication and user satisfaction for both sender and recipient.
Marketing automation
The solution efficiently engages and converts
leads with the help of social media and search
engine optimization. Advanced segmentation
helps in accurate targeting, ensuring high
returns on investment. The key to marketing
success is sending automated campaigns
with personalized content at the right time
and through the right channel. The solution
provides a visual builder accessible from the
web browser to create templates and customer
journeys across various channels. It is easily
integrated with all data sources and provides an
array of standard connectors to market leading
systems. The customer data platform predicts
customer preferences, sentiment, brand loyalty,
and frustrations, enabling organizations to create
personalized marketing campaigns, customer
journeys and product recommendations.
Conversations
LINK Conversation facilitates mobile customer journeys that can be utilized for various purposes,
including campaigns, sales, information, and newsletters. The solution supports rich content,
including pictures, videos, and CTA buttons, and offers various channels such as SMS, RCS, WhatsApp,
and the web. The visual builder in the proprietary user interface helps build customer journeys, and
communication can be initiated from existing systems, the user interface, or even the customer. The
solution improves customer experience and helps businesses and organizations drive customer and
user communication engagement.
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Annual Report 2022 | LINK product portfolio
Chatbot
Xenioo is a solution that handles one-to-one
interactions between customers and chatbots,
live agents, or a combination to provide an
excellent experience for both parties. It can
be operated from a web browser or an existing
application like CRM or CCaaS via standard
integrations or APIs. Xenioo is an omnichannel
solution that supports popular channels like web,
SMS, WhatsApp, RCS, Messenger and Telegram.
It can initiate customer interaction for automated
conversational journeys such as surveys and
payment journeys. The visual builder in the
proprietary user interface helps build customer
journeys. Xenioo streamlines processes and
interactions to improve efficiency and customer
experience.
Payment
LINK offers an integrated payment solution consolidating multiple payment channels. This service
supports various payments, including event payments, reminder fees, digital services and content
charges. Not only is it convenient for the customers, but it is also easy, efficient and secure. By using
this cost-effective, dynamic and flexible payment service, the customer can eliminate the need for
paper invoices.
Multi-Factor Authentication (MFA)
LINK delivers MFA solutions through OTP to a range of customers globally, with the usage of MFA
solutions increasing substantially in recent years. OTP through MFA limits account theft and the creation
of fake accounts. LINK offers standard integrations with market-leading MFA platforms, primarily using
SMS to transport OTP due to its encrypted traffic, 100% mobile device reach, high attention, and no app
download requirement. Other channels like Voice and WhatsApp are also available for OTP delivery,
combining the best of SMS and native apps.
Connectivity
LINK offers global connectivity through local MNOs, providing customers with two-way communication
worldwide. We also provide voice services such as masked calls, SIP (Session Initiation Protocol)
trunking, and virtual numbers and offer look-up services to validate numbers and formats, retrieve
customer information, and improve user experience.
Local products
In addition to the centralized products, LINK has several products adapted to the local market to meet
customers’ needs.
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Product focus adapted to market trends
Customer Data Platform (CDP)
Enables predictive intelligence for personalisation. LINK’s proprietary CDP is primarily utilized
within marketing automation. The CDP can predict customer preferences, value, brand loyalty,
sentiment, unmet needs, and frustrations, resulting in a dynamic layer of consumer intelligence that
enables organizations to create personalized marketing campaigns, customer journeys and product
recommendations. With the phasing out of third-party cookie tracking due to privacy concerns, CDP
has become an increasingly important component of omnichannel messaging within the CPaaS space.
Orchestration
Intelligent orchestration is important for optimal communication across different channels and
customer systems. LINK offers channel orchestration for advanced messaging, where channels
are selected based on user preferences or performance. Application orchestration is also provided,
with integrations and partnerships to optimize communication with other systems. This ensures
that customers can target the right customers and have a full overview of communication across all
channels and systems.
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Annual Report 2022 | Sustainability at LINK
Sustainability
at LINK
Annual Report 2022
CHAPTER 07
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Annual Report 2022 | Sustainability at LINK
Sustainability at LINK
LINK’s board of directors has adopted a policy to reflect the company’s commitment to integrate 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.
In 2021, LINK confirmed its committed to integrating the Ten Principles of the UN Global Compact
in its operations by becoming a signatory. The participation in the UN Global Compact continued in
2022, which reflects constant efforts to incorporate sustainability factors into our operations. In line
with the UN Global Compact, LINK is committed to continuously progress in the four focus areas: Anti-
Corruption, Human Rights, Environment & Labor. LINK’s report for 2022 can be found here:
www.unglobalcompact.org/what-is-gc/participants/145208-LINK-Mobility-Group-Holding-ASA
Our sustainability report (herein) shows the key actions that we have implemented in these areas in
2021 and 2022 and our ambitions for 2023. The report is published in accordance with the EU non-
financial reporting directive and the Norwegian Accounting Act Section 3-3C.
Materiality assessment
Since 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 may
vary over time and it therefore performs an annual materiality assessment that reflects changes
in the company’s micro and macro environment. The topics listed below are the material risks and
opportunities identified during accounting year 2022. The process of identification involved key
department experts as well as other internal stakeholders such as the board members and employees.
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Material topics for LINK
Diversity, inclusion and belonging
Employee engagement
Privacy and Security
Energy consumption, monitoring, and
efficiency
Establishing and operationalizing
ethical business practices
Compliance with laws
People
Planet
Profit
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, inclusion and belonging
LINK aims to have a diverse representation from all sections of society and for each employee to
feel respected and valued, 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
The board of LINK Mobility Group Holding ASA has 50% male and 50% female members.
The boards of the subsidiaries in LINK Mobility group combined have ~80% male and ~20% female
members.
Our permanent and freelance contract workforce combined has ~70 % male and ~30 % female
representation in Norway, which is in line with the information and communication industry average
reporting in 2022. We have one employee who self-designates as any other gender currently, and 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 ~26 % and men ~74 % of the
leadership groups in 2022.
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Annual Report 2022 | Sustainability at LINK
Gender representation % in LINK Mobility Norway
LINK implemented an organization-wide human resources and employment position categorization
system in 2021, which was required to gain a clear understanding of our worldwide workforce and
connect our operations. With this system, we have been able to take the first steps toward quantitative
data mapping on gender representation and compensation. Our CPSO is a regular contributor to the
ODA network’s leadership program for females in the tech industry on a voluntary basis.
Geographic diversity
LINK had operations in 18 countries in 2022, including Europe and the USA. National identification of
employees is optional, based on office, but we know of 29 reported nationalities at LINK, representing
5 of the seven continents of the world. Our global headquarters in Oslo has employees representing 14
different nationalities.
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.
Attraction and retention of skilled employees
A rapidly changing and complex industry requires the ability to attract and retain highly skilled
employees, which may be supported by promoting diversity, inclusion and equal opportunities. LINK
adheres to these values, openly stands against harassment and intimidation and focuses on treating
personnel with respect and tolerance. These elements are regarded by LINK as important factors to
attract and retain skilled personnel.
Our recruitment process follows 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.
0 10
FEMALE
Gender
MALE
20 30
40
50 60 70 80
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Annual Report 2022 | Sustainability at LINK
Our 2023 ambitions within the area of diversity, inclusion and belonging
In 2023, LINK plans to conduct a detailed analysis of gender representation, compensation and benefits
to more clearly measure and identify opportunities to increase diversity and narrow the gender pay
gap. LINK will also continue to ensure that its procedures in diversity, inclusion and belonging are
upheld and enforced.
Employee engagement – making LINK a better place to work
Remaining united with high employee engagement is an integral part of our values and culture,
particularly as we grow and add new affiliates. We hold several monthly, bimonthly, quarterly and annual
events to keep our employees informed about the latest developments and to present the results of our
cooperative dedication.
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.
LINK Voice
Twice per year, we conduct a company-wide survey for all employees 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 engagement action
planning and decision-making in their departments.
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. In November 2022, we experienced an all-time high LINK Voice participation
rate of ~90% across the company and an employee engagement score of 67%. This score trails the
New Tech Europe benchmark of 72% by 5 points, but this was an improvement for LINK over the 6-point
difference in our score and the Culture Amp® industry benchmark one year earlier in 2022.
Our 2023 ambitions within the area of employee engagement
In 2023, LINK plans to strengthen the existing initiatives aimed at increasing the level of enthusiasm
and dedication employees have towards the company. The goal is to further close the gap LINK has
towards the industry benchmark, as represented by the score achieved through the Culture Amp®
platform.
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Privacy and security
Customer and employee privacy
As a provider of electronic communications services, LINK must make sure that our customers can
trust the privacy of our services. Protecting personal data in line with the European General Data
Protection Regulation (GDPR) and mitigating risks related to this subject is therefore a material topic
for LINK. In 2022, LINK has implemented several measures to mitigate risks related to personal data
protection:
Company-wide awareness and training
During 2022, LINK refreshed internal training on topics related to personal data protection, compliance,
and information security. Each employee has been required to complete the training on a yearly basis.
In 2022, the completion of this training was an obligatory factor considered under the company’s bonus
plan.
Company-wide policy updates and implementation
In 2022, LINK reviewed and published updated guidelines related to personal data protection,
including Personal Data Protection Policy with supporting policies, 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. All privacy related policies and procedures are available to all
employees at any time.
Focus on personal data protection and privacy compliance in new affiliates
All companies that were acquired by LINK before 2022 have approved and adopted 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.
Binding Corporate Rules (BCR)
LINK has applied for BCR for its processing as Processor and as Controller under the GDPR, which
will significantly improve the transparency of LINK’s processes to comply with the GDPR. The
application for BCR was submitted in 2022 and is currently being scrutinized by the competent
authorities.
Larger scope for data privacy
Since 2018, LINK has focused on implementation of mitigations to risks in processing of personal
data for our internal data and data of our customers. LINK has put in place a continuous improvement
process focused on the following areas: (1) policy implementation, (2) encryption of data, (3)
deletion of data, (4) access control, (5) security strategy.
IT security
LINK believes that information security is a continuous effort. All 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. One main policy regarding IT
security has been implemented.
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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.
Privacy by design and zero trust
There are two prevalent approaches that are being instilled in our daily development and processing
workflows. Privacy by design and zero trust. The purpose of the security policy is to establish a
framework for the protection of information at LINK and all subsidiaries, so that critical or sensitive
information and systems preserve their confidentiality, integrity 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 to determine the current “threatscape” and subsequently
react based on the final evaluation. 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 LINK’s group leadership team, preceded by a wide review of specialists.
Our 2023 ambitions within the area of data privacy and IT security
Data retention
In 2023, we would like to prioritize the automation of data retention, especially to 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
In 2022, LINK introduced monetary incentives to encourage employees to participate in groupwide
training and achieved more than 90% participation. In 2023, we aim to maintain our high levels of
compliance and participation achieved.
Access control
Managing access to critical systems continues to be a priority for LINK. In 2023, we will further
strength our controls with additional measures for managing access.
CISO function
In 2023, LINK plans to establish a group-wide Chief Information Security Officer to better manage
and supervise all issues related to information security.
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Annual Report 2022 | Sustainability at LINK
Planet
Energy consumption, monitoring and efficiency
LINK is aware of the environmental impact of its operations and the need to balance our energy
consumption. As a significant consumer of data storage, the mobile communications industry may
positively affect global energy consumption, but it is also vulnerable to disruptions and failure. LINK
is in the initial stages of defining processes for evaluating our material and resource usage and will
continue to work towards a better understanding of our current impact as well as putting in place
action plans for areas of improvement.
Suppliers’ assessment
LINK has ensured that environmental aspects are taken into account during the assessment of new
providers. The relevant assessment is based on a risk analysis and performed within the supplier
due diligence process. LINK pays particular attention to the selection of well recognized international
hosting providers that have efficient energy management systems in place.
Material use
With a business model that relies heavily on the use of IT infrastructure, LINK is aware that the
materials used in manufacturing our IT infrastructure have an impact on the environment. The first
step in evaluating the environmental impact of material and resource use will be implemented in the
future by initiating the process of mapping all IT equipment in data centers and offices.
Greenhouse Gas (GHG) emissions
To get a better picture of energy consumption and greenhouse gas emissions related to our activities,
LINK in 2022 collected detailed information from its European and US entities. Going forward, LINK
will continue to expand our data collection methodology with improvements to the data quality and
availability.
The most significant source of emissions from LINK is indirect emission from electricity use. For
2022, we report on direct emissions (Scope 1) and indirect emission (Scope 2) from electricity use and
district heating/cooling. This includes electricity emissions from our own offices. Scope 2 does not
include emissions from hosted data centers and cloud hosting, which would be categorized as Scope 3
emissions. Our goal is to include Scope 3 emissions in the future to get a more comprehensive picture
of LINK’s climate footprint.
Calculation of gas emissions
The calculations have been made according to the Greenhouse Gas Protocol (GHGP). Emissions have
been calculated for direct emissions (Scope 1) including emissions from stationary combustion (use
of natural gas for heating) and use of fossil fuels in cars owned or leased by LINK. Indirect emissions
(Scope 2) are calculated based on energy use in LINK subsidiaries’ offices. Subsidiaries with less than
15 employees have been excluded, unless they share offices with another LINK company giving a total
of 15 or more employees. The basis for this exclusion is that smaller offices are frequently based on
shared office space solutions where specific data related to LINK is not possible or practical to extract
and wide use of home-office.
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Annual Report 2022 | Sustainability at LINK
For further insights into calculations and scope, please visit LINK Mobility’s GHG report on
https://www.linkmobility.com/investors
Category Emissions(tCO²e) Share of emissions
Scope 1 40.9
Scope 2 (location based) 267.5 87 %
Scope 2 (market based) 328.3 89 %
Total
Scope 1 + Scope 2 (location based) 308.4 100 %
Scope 1 + Scope 2 (market based) 369.2 100 %
Positive indirect impact
LINK goes beyond its direct impact on GHG emission and looks to contribute to global reduction of
emissions. The essence of operating within the digital industry is to reduce emissions related to tasks
that will otherwise require travel. By helping customers to move some of their communication into a
virtual world, we strive to reduce emissions from their daily operations.
Employees’ awareness
In addition to working on our direct operations, it is our responsibility to educate our employees about
environmental issues. In 2022, each of LINK’s affiliates implemented at least one action related to
climate change in their local settings. There were also several other environmental actions carried out
to raise employees’ awareness. These included, among others:
• A Climate Awareness Day, organized in August 2022, when employees were invited to help cleaning
up a beach at an island, Hovedøya, in Oslo;
• A Climate Championship, organized together with “Framtiden i våre hender”, a Norwegian NGO,
in September 2022, when employees registered their daily footprint-reducing activities to collect
points, and competed on a team level, with the main objective of raising awareness about what can
be done to reduce individual emissions.
Scope 2 are emissions from the production of electricity and district heating. Scope 2 emissions from
electricity production are, according to GHGP, calculated both according to the estimated carbon
content of the electricity grid in the different countries (location-based) or with a market-based
method where the electricity mix is adjusted for net import/export of Guarantees of Origin (GOs) in the
respective countries.
See notes 1 and 3 in the consolidated financial statement for further explanation of organization and
principles of consolidation.
LINK’s GHG-emission from 1st January to 31st December 2022 is summarized in the table below.
Indirect (Scope 2) emissions are the largest source of emissions related to LINK’s business activities.
Most of Scope 2 emissions are linked to electricity use at offices. Of total energy use at offices,
approximately 72.1% is electricity and about 27.1% comes from district heating.
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Establishing and operationalizing ethical business practices
Ethical business practices shall govern the operations of any responsible enterprise in the modern
world. They underpin the creation of ethical, trust-based corporate culture, where people act not only
in line with specific legal requirements, but they also take into consideration moral values in order to
do even more than the law requires.
For the foundation and principles for LINK’s corporate governance structure, please see the board
statement on corporate governance under the board of directors' report below.
Employee Code of Conduct
LINK’s Employee Code of Conduct, based on the Ten Principles provided by the UN Global Compact,
reflects our core values of being united, dedicated and enthusiastic. It applies to all employees as
well as to management and to board members, with the aim to foster an ethical business culture, the
cornerstone of a sustainable company.
Supplier Code of Conduct
LINK’s Supplier Code of Conduct, based on the Ten Principles provided by the UN Global Compact, the
OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human
Rights, aims to ensure that our values and commitment to ethical business conduct are reflected in
our expectations towards third parties. LINK strives to develop long-lasting, trusting and mutually
beneficial relationships with suppliers and business partners, who share strong values and who
demonstrate the same commitment to operating responsibly and ethically. LINK expects its suppliers,
consultants, contractors and any other business partners to show the same commitment to ethical
business practices as we do in LINK.
Embedding responsible business conduct into LINK’s daily operations
With the increased global understanding that ESG factors affect business across markets and
industries, it is crucial for any digital business to understand the effects on expectations for technology
to meet and exceed requirements and make them part of strategic decisions and daily operations.
To embed responsible business conduct into its daily business. LINK has adopted several policies,
including ESG, Anti-Corruption, Anti-Trust, Privacy, Security, Corporate Governance, Whistleblowing
and others, and has introduced relevant measures to implement them.
Our 2023 ambitions within the area of ethical business practices
Promote ethical business practices
In 2023, LINK commits to further disseminate its core values by promoting its Employee and
Supplier Codes of Conduct, providing training to employees, supporting ethical attitude in its daily
operations and by a regular follow up on its policies.
Our 2023 ambitions within the area of energy consumption,
monitoring and efficiency
Energy consumption
LINK will continue the energy assessment of its providers and its own operations. We will continue
and improve the collection of greenhouse gas emission to include scope 3 emissions and to get a
more comprehensive picture of LINK’s climate footprint. The results will form a basis for defining
energy efficiency targets.
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Annual Report 2022 | Sustainability at LINK
Profit
Compliance with laws
LINK operates in a number of jurisdictions and is subject to laws and regulations that involve matters
central to LINK’s business. Such laws and regulations are in a wide range of areas. Examples include
the electronic communications sector, privacy, data protection, anti-corruption, employment law,
human rights, competition and sustainability.
To ensure compliance with obligations LINK is subject to, including applicable laws, LINK has
implemented a Compliance Management System (CMS) for systematic follow-up of defined standards
and objectives at a group level. LINK’s processes for identification of applicable legislation and
processes for operational implementation are part of the CMS.
Anti-Corruption
Bribery and corruption undermine any legitimate business operations and is therefore an area of focus
at LINK. In line with our values, laws and regulations governing all areas where we operate, LINK puts
into practice its commitment, as outlined in its Anti-Corruption Policy and codes of conduct, to fight
against corruption in all its forms by gradually introducing a comprehensive anti-corruption system.
• Anti-Bribery and Anti-Corruption Policy. Compliance with anti-bribery and anti-corruption laws is of
key importance to all of LINK’s businesses, which has been reflected by adoption of Anti-Bribery and
Anti-Corruption Policy. The policy was adopted in 2021 and reviewed in 2022.
• Employee Code of Conduct. At LINK, we do not tolerate corruption in any form, including bribery,
facilitation payments or trading in influence. Our Employee Code of Conduct clearly states our
commitment to anti-corruption in business practices.
• Supplier Code of Conduct. Anti-corruption is one of four focus areas of LINK’s supplier due diligence
process that was initiated in 2021 and further developed in 2022. Like our Employee Code of Conduct,
our Supplier Code of Conduct states zero tolerance of corruption in relation to third parties.
• Training. All LINK’s employees and contractors are required to complete an annual training program
covering areas of key importance to perform their work, including anti-corruption. In 2022, the
completion of the training program was set as a key performance indicator for the employee’ bonus
program.
• A global whistleblowing system. LINK’s current whistleblowing system was set up in May 2021 and is
available to all LINK affiliates. It allows all employees, as well as external and temporary employees
and contractors, to issue an alert securely and confidentially via an outsourced internet platform.
These reports can relate to acts of corruption or other ethical issues (environment, security, fraud,
personal data, human rights, etc.) and, more generally, to any situation or conduct that may be
contrary to the codes of conduct. The overall system architecture was designed to provide a means
of filing reports and processing them internally, while ensuring complete confidentiality. Rules
governing 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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Fundamental human rights and decent working conditions
LINK has implemented several measures with the purpose of ensuring 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:
• Employee Code of Conduct. The values of human rights are included in LINK’s Employee Code of
Conduct, which clearly states that we oppose all forms of forced labour and child labour in our
operations, report on any human rights abuse in our operations or in those of our business partners
and always apply national labour laws and regulations.
• Whistleblowing. LINK has established a global whistleblowing channel, to allow existing and former
employees and contractors, on all levels, to raise concerns or to report any suspected or potential
breach without fear of retaliation.
Transparency
The Transparency Act (Åpenhetsloven) is a Norwegian law that came into effect on July 1st, 2022. The
Act promotes enterprises’ respect for fundamental human rights and decent working conditions in
connection with the production of goods and the provision of services.
The Act imposes certain obligations regarding respect for fundamental human rights and decent
working conditions. The account for due diligence, as required by the Act, constitutes a separate
document that is accessible at LINK’s corporate webpage https://www.linkmobility.com/investors.
A summary of the processes in place regarding due diligence for its suppliers and business partners
is provided below.
Third parties’ assessment - the supplier due diligence process
LINK is committed to promoting fundamental human rights and decent working conditions in its
operations. It is therefore of importance for LINK to avoid causing adverse impacts on people, the
environment and society in its daily operations, as well as avoiding contribution to such adverse
impacts in its relations with stakeholders, including suppliers and business partners.
Within the process of providing services, LINK depends on several types of suppliers, including entities
operating in the telecommunication industry (MNOs, aggregators, OTT providers, RCS providers, etc.),
IT sector entities (hosting, server and storage solution providers, software providers), as well as a
variety of other supply-side partners.
Since 2021, certain actions have been taken up, aimed at identifying and organizing LINK’s relations
with suppliers, enabling the company to act responsibly and to create added value throughout its value
chain. Basic Supplier Due Diligence (SDD) process, designed and introduced in 2021, has been further
developed in 2022. It follows the methodology proposed by the OECD Due Diligence Guidance for
Responsible Business Conduct, which reflects standards set up in the OCED Guidelines for Multinational
Enterprises. The process fulfils LINK’s obligation to carry out due diligence in accordance with the
Transparency Act that came into force in 2022.
LINK’s supplier due diligence process aims to integrate the principles of responsible business conduct
into our daily operation and in relation to the various stakeholders. The focus areas of the process
include ESG factors, covering inter alia fundamental human rights and decent working conditions, as
well as other areas such as data privacy, anti-corruption and antitrust.
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In 2022, the SDD process has primarily included re-assessment of risk associated with third parties,
followed by the introduction of measures aimed at addressing the identified risk. The following
measures have been implemented:
• Supplier Code of Conduct. Embedding LINK’s core values into corporate policies and subsequently
developing relevant codes of conduct for the supply chain has been an important step in raising
stakeholders’ awareness. First introduced in 2021, and applied ever since, our Supplier Code
of Conduct conveys a clear message of LINK’s expectations within areas covered by ESG, anti-
corruption, competition and privacy policies, and contributes to improving sustainability through
LINK’s value chain.
• Employee Code of Conduct. The Employee Code of Conduct is an important tool for raising
employees’ awareness regarding embedding LINK’s core values and ethical foundation. The code
was updated in 2021 and conveys a clear message of LINK’s expectations within areas covered by
ESG, anti-corruption, competition and privacy policies, and contributes to improving sustainability
in LINK’s operations.
• Employees training. Training is a measure of raising employees’ awareness of various compliance
issues, including the required conduct towards third parties. GDPR and IT security training has been
obligatory for all LINK employees for several years and in 2021 the company additionally launched
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.
• SDD questionnaire. The SDD questionnaire, developed in 2021, has acted as a primary guidance tool
in the SDD process since 2022. It has been identified as an effective measure to raise employees’
awareness of compliance issues and to collect relevant knowledge on third parties. The questionnaire
instructs employees on steps that should be performed when onboarding an individual provider,
depending on the associated risk that is assessed based on the embedded indicators.
• Contract measures. LINK expects its suppliers to adhere to standards set out in the Supplier Code of
Conduct. The company has therefore defined relevant clauses that have been introduced in selected
supplier contracts, depending on the specificity of a particular contractual relationship.
• Privacy / IT security questionnaires. LINK uses the questionnaires to mitigate risks related to the
processing of personal data in vendors’ systems.
Fair Competition
Abiding by antitrust rules is fundamental for creating and sustaining a competitive economy which
ultimately benefits society. Compliance with antitrust laws is of key importance to LINK. Antitrust
laws are designed to guarantee free and open competition in a capitalist economy and to prohibit
anti-competitive behaviour by either individual players acting alone or multiple players acting together.
In line with our values, laws and regulations governing all areas where it operates, LINK puts into
practice its commitment, as outlined in its Anti-Trust Policy and codes of conduct, to promote fair
competition. Implementing principles of antitrust and Fair competition in LINK’s normal course of
business is a defined objective in LINK.
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• Anti-Trust Policy. Compliance with competition laws is of key importance to LINK, which has been
reflected by the adoption of the Anti-Trust Policy. The policy was adopted in 2021 and reviewed in
2022.
• Supplier Code of Conduct. Fair competition is one of the focus areas of LINK’s supplier due diligence
process that was initiated in 2021 and further developed in 2022. Our Supplier Code of Conduct
states zero tolerance of breach with competition regulations.
• Training. All LINK’s employees and contractors are required to complete an annual training program
covering areas of key importance to perform their work, including fair competition. In 2022, the
completion of the training program was set as a key performance indicator for the employee’ bonus
program.
• A global whistleblowing system. LINK’s current whistleblowing system was set up in May 2021 and is
available to all LINK affiliates. It allows all employees, as well as external and temporary employees
and contractors, to issue an alert securely and confidentially via an outsourced internet platform.
These reports can relate to acts of corruption or other ethical issues (environment, security, fraud,
personal data, human rights, etc.) and, more generally, to any situation or conduct that may be
contrary to the codes of conduct. The overall system architecture was designed to provide a means
of filing reports and processing them internally, while ensuring complete confidentiality. Rules
governing 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.
Raising employees’ awareness
All LINK’s employees and contractors are required to complete an annual training program on
compliance, privacy and GDPR. In 2022, the completion of the training program has constituted one of
the key performance indicators of the employee bonus program. To raise employees’ awareness within
the area of compliance, LINK in 2022 started an initiative of a regular “Legal & Compliance Update” that
is available to all employees and that presents various current legal and compliance topics in an easy
and concise format.
Our 2023 ambitions within the area of compliance
Transparency reporting
LINK commits to make a regular assessment of its obligations under the Transparency Act and to
act in accordance with it. The first report has already been published on LINK’s webpage as required by
the law.
Increasing the scope of third parties covered by the due diligence process
In 2021, the suppliers’ mapping covered telecommunication vendors. In 2022, the process covered
vendors operating within both the telecommunication and the IT sectors. The aim for 2023 is to
extend the process to further groups of suppliers and business partners.
Increasing awareness
The introduction of the employees’ compliance training and the implementation of the supplier due
diligence process has already contributed to the recognition and understanding of the sustainability
issues among employees. LINK’s ambition is to further disseminate and promote this knowledge
within its own organisation and towards third parties.
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Annual Report 2022 | Report from the Board of Directors
Report from
the Board of
Directors
Annual Report 2022
CHAPTER 08
LINK Mobility Group Holding ASA
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Report from the
Board of Directors
LINK Mobility Group Holding ASA (LINK) is headquartered in Oslo and listed on the Oslo Stock
Exchange (OSE). The group has 700 employees across Europe and in the US with 30 offices located in
18 countries.
LINK has more than 20 years of experience in providing mobile messaging services and mobile solutions
for businesses, public sectors and organizations. LINK has for decades operated in the Nordics, the
world’s most innovative market for digital mobile solutions, and has leveraged its knowledge and
capabilities to become the clear market leader within enterprise mobile messaging solutions in Europe
and expanded to the US in recent years. Given its experience and reach, LINK is uniquely positioned to
benefit from the increased usage of mobile messaging solutions globally.
Market position and development
Market growth and the trend towards more advanced digital messaging solutions continued in 2022.
The new channels complementing SMS with richer content and conversational features, RCS (SMS 2.0)
and OTT (internet streaming) in CPaaS solutions are a requirement to win new customer contracts.
More advanced CPaaS solutions however have slower adoption rates and longer revenue lead times
as clients need to adapt their value chains. Market growth is however expected to accelerate as digital
messaging solutions increasingly become the preferred end user communication for businesses,
public sectors and organizations.
In 2022, LINK sent 17.4 billion messages (including the full-year effect of acquired entities), compared
to 16.4 billion messages the previous year, on behalf of its 50 thousand 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 (0.96% in 2022) securing recurring and potential for
growing revenue from existing clients. Most customers increase their use of LINK’s digital messaging
and include more advanced solutions over time as they realize high Returns on Investment (ROI). ROI
is driven by higher revenue from more satisfied customers and lower costs through more efficient
internal processes.
LINK drives organic growth with increased usage from existing customers and through new customer
wins. In addition, market share is increased, and new markets entered through acquisitions. M&A is
also supportive to the product offering through acquisitions of solutions companies. The new solutions
advance the CPaaS offering and create additional value for LINK’s large customer base. Please refer to
section “LINK to execute on profitability in 2023” for chatbot Xenioo as an example.
Organic growth is supported by LINK’s Go-to-Market (GTM) strategy. Larger enterprise customers
are approached directly by dedicated salespeople, Small and Medium-sized Enterprises (SMEs) are
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acquired through Self-Sign Up (SSU) portals and the partner model further expands the reach. LINK’s
tailored and innovative enterprise solutions are later standardized to SaaS solutions and offered to
SMEs. The partner network scale the business as LINK solutions are offered partner customers and
partner applications are made available to LINK customers.
LINK’s extensive use case library from a large innovative customer base in advanced markets for digital
messaging give the group a clear competitive advantage.
Comments related to the financial statements
In accordance with the Norwegian Accounting Act §3.3.a the board confirms that the company fulfils
the requirements necessary to operate as a going concern and the 2022 financial statements have
been prepared based on that assumption. As a listed company, LINK Mobility Group Holding ASA
prepared the consolidated financial statements for the financial year 2022 in accordance with the
International Financial Reporting Standards (IFRS) as adopted by the European Union.
Acquisitions
In November 2022, LINK agreed to take over a US customer base carved-out from a larger undisclosed
company. The customer base has been merged with Message Broadcast to provide further
diversification and growth opportunities in the US. The purchase price was settled in cash at multiple
equal to the financial policy ceiling of 3.5x leverage.
Revenue, costs, and profits
LINK reported revenue of NOK 5 190 million in 2022, an increase of 18% from NOK 4 410 million in 2021.
LINK’s gross profit was NOK 1 385 million (NOK 1 200 million).
Operating costs (including payroll and related services and other operating expenses) were NOK 907
million (NOK 896 million) and include non-recurring costs of NOK 148 million. The non-recurring costs
include a share-based compensation program of NOK 44 million, restructuring costs of NOK 22 million,
and expenses related to acquisitions of NOK 32 million. Depreciation and amortization were NOK 416
million (NOK 338 million) and there was an impairment of intangible assets and goodwill of NOK 180
million related to the Spanish footprint.
Net financial items amounted to negative NOK 37 million (negative NOK 14 million) and constituted a
net interest expense of NOK 149 million linked to an outstanding bond, net other financial expenses of
NOK 18 million and a positive currency effect of NOK 94 million. LINK’s outstanding EUR 370 million
bond carries a fixed coupon of 3.375% and matures in December 2025.
Income tax was positive NOK 4 million (negative NOK 30 million), resulting in a net loss for LINK of NOK
151 million (negative NOK 78 million) in 2022.
Annual result and allocation
The board proposes that the 2022 net loss will be transferred to accumulated losses.
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Financial position, cash flow, and liquidity
As of 31 December 2022, LINK’s total assets amounted to NOK 10 994 million (NOK 10 540 million),
of which intangible assets were NOK 8 718 million (NOK 8 561 million). Intangible assets are mainly
comprised of goodwill equal to NOK 5 788 million (NOK 5 615 million). Trade receivables and other
receivables amounted to NOK 1 244 million (NOK 905 million) and cash and cash equivalents to NOK
827 million (NOK 844 million). Total equity was NOK 5 226 (NOK 5 090 million) and constituted of NOK
1 million in share capital, a share premium of NOK 5 856 million, and NOK 415 million in accumulated
losses and translation differences.
Long-term liabilities were NOK 4 416 million (NOK 4 317 million) and consisted mainly of a EUR 370
million bond. LINK’s cash flow from operating activities during 2022 was NOK 421 million (NOK 356
million) and significantly better than the net loss reported for the year mainly due to non-recurring
costs with a limited or no cash effect and non-cash depreciation and amortization expenses. Cash flow
from investing activities was negative NOK 242 million ( -2 009 million). The acquisition of Message
Broadcast in the US the previous year explain the large reduction in 2022. Cash flows from financing
activities amounted to a negative NOK 233 million (NOK 1 568 million), mainly reflecting interest
payments of NOK 142 million and repayment of borrowings of NOK 81 million.
Risks
LINK has defined six risk areas under which risks are identified that are a threat to LINK’s objectives.
Market risk, financial risk, acquisition risk, IT risk, legal & compliance risk and operational risk. Identifying
and mitigating risks are vital to prevent the successful implementation of LINK’s businessstrategy or
manage its growth effectively.
The below section describes how the Global Leadership Team (GLT) evaluates and mitigates these
risks and includes comments on increased macroeconomic uncertainty.
Market risk
LINK risks related to its customers and competition, hereunder loss of contracts and opportunities, are
managed under the headline of market risk.
LINK’s revenue, costs and profits are subject to the risk of changes in customer and supplier prices.
As expected, simple use cases like One-Time Passwords (OTP) or Two-Factor Authentications (2FA),
wholesale SMS trading and basic mobile payment services are exposed to margin pressure. LINK is
however only exposed to simple use cases to a limited degree as the group’s strategy is long term
customer relationships through enterprise CPaaS solutions. This strategy has resulted in a very low
customer churn and growing recurring revenue. LINK did not experience any material margin pressure
for enterprise solutions in 2022 and expect increased adoption of more advanced CPaaS solutions to
be supportive to margins in coming years.
The A2P SMS market grows in the high single digits annually as adoption increases throughout
markets and industries. LINK is operating in a market with one-way mass communication through A2P
SMS transitioning to conversational communication on multi-channel CPaaS solutions. The evolution
of SMS to RCS and the addition of new OTT channels like WhatsApp and Viber enables brands to
communicate with their customers on their preferred format. These new channel technologies offer
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vast value creation opportunities and the market growth for CPaaS is thus expected to be higher
when adoption of advanced solutions reach critical mass. Currently, the CPaaS market remain small
compared to the more penetrated A2P SMS market.
The timeline to reach critical mass is uncertain and a risk for growth in the CPaaS industry. LINK
however believes its channel-agnostic approach limits this risk as the company is versatile to adopt to
channels and solutions as they mature and gain traction in the market.
Financial risk
LINK’s business activities expose the group to financial risks related to prices, currencies, interest
rates, credit and liquidity. Overall, these risks are regarded as low and manageable.
As a leading provider, LINK may obtain volume discounts for SMS purchases from Mobile Network
Operators (MNOs) and provide high quality deliverability for its customers as a trusted MNO partner.
Over time the growth in new OTT channels competing with MNOs could be beneficial for channel
agnostic CPaaS companies.
The group undertakes business in foreign currencies and is consequently exposed to fluctuations
in exchange rates. Foreign exchange risk arises from transactions related to operations conducted,
and assets and liabilities arising in foreign currencies. LINK’s subsidiaries operate using their local
currencies with revenue and costs for transactions 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 changes in NOK to underlying currencies will impact reported
figures.
Increased macroeconomic uncertainty may affect LINK’s ability to refinance its 5-year EUR 370 million
outstanding bond maturing in December 2025. The bond is listed on the Oslo Stock Exchange and
carries a fixed coupon of 3.375% per year, exposing LINK to interest rate risk upon refinancing. The EUR
bond also exposes LINK to additional exchange rate risk. This currency risk is however mitigated by
LINK’s significant cash flow exposure to EUR. Through both revenue enhancing commercial initiatives
and cost reducing initiatives, LINK expects to improve future cash flows and financial results which
will support deleveraging of the company. A prudent debt level and plans for a credit rating are main
leavers to secure future refinancing of current debt.
LINK’s credit risk is limited to trade and other receivables and mitigated by the group’s guidelines to
ensure that credit sales are only made to customers with a high credit rating. Customers with a low
credit rating are required to prepay for services rendered by the group.
LINK considers its liquidity risk to be limited and has sufficient liquidity available on bank accounts as
of year-end 2022 to fund its operations and strategy for growth. LINK has established efficient routines
to monitor and handle overdue trade receivables across its footprint and only saw marginal losses in
2022.
LINK manages financial risk with an emphasis to minimize its exposure and holds no financial assets
or liabilities for speculative purposes.
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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 acquired companies
may lead to significant value destruction. The results of the prior year’s acquisitions confirm that LINK
has such expertise. In 2022, the organizational structure and key functions were further developed to
ensure even more efficient integration of new businesses. Please refer to section “LINK to execute on
profitability in 2023” including a description of LINK’s pragmatic M&A strategy.
The board has established routines and procedures regarding possible takeovers. This procedure does
not include any content regarding countermeasures like poison pills or other defence measures to
hinder a possible takeover of the group.
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 authority of LINK’s
Chief Technology Officer. LINK’s processes are based on a top-down approach, where LINK defines
policies and procedures for subsidiaries to implement locally. The central IT function provides support
and counselling 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 2022, the following actions should be noticed:
1. Continuous alignment on group level of the process to perform internal/external penetration testing
on LINK’s platforms
2. Continuous structuring of LINK’s approach to documenting its information security management
system
3. Groupwide implementation of incident management processes
Legal & compliance risk
Legal & compliance risk includes financial or reputational damage that can result from a lack of
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, where LINK defines
policies and procedures for subsidiaries to implement locally. The group function provides support
and counselling to local entities depending on requirements in the covered areas, hereunder areas
such as contract alignment and negotiation, GDPR compliance, Sustainability, compliance with anti-
money laundering regulations, fair competition, and supplier due diligence. Internal annual audits are
performed for compliance with GDPR. Policies are accessible to employees at the LINK Intranet, and
training is provided.
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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.
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 2022, the following
actions should be noticed:
• LINK’s introduction of a group-wide system to ensure alignment with group-wide processes and
policies, and mitigating negative impact through detective controls
Macroeconomic uncertainty
Increased global tensions and financial uncertainty could be negative for world economic growth
and indirectly affect LINK’s global operations. LINK is however well-diversified with fifty thousand
customers of all sizes in numerous industries and geographies. As these various industries and
markets are likely to be impacted differently from global shifts, the effect for LINK should be mitigated.
LINK has no direct business activities in Ukraine and Russia.
LINK’s IT security team has reassessed its exposure to cyber incidents taking both operations and
stakeholders into account. The conclusion as of April 2022 is no major risk increase for LINK.
Through to the end of April 2023, LINK has observed expected business activity in Europe and the US.
No material effects from volatile financial markets have been experienced by LINK.
Shareholders and shares
LINK issued new shares in 2022 related Management Incentive Programs (MIP). Throughout the year,
the number of shares in the company increased from 294,252,254 shares to 295,890,306 shares, with
formal registration of the last issued shares on January 3rd, 2023.
On 3rd June 2022, LINK issued a total of 588,127 new shares at a subscription price of NOK 9.29
per share in connection with the Employee Share Purchase Program (ESPP). Under the terms of the
ESPP, all employees were given the opportunity to apply for shares for up to a maximum amount of
NOK 100,000. The subscription price was based on a seven-day Volume Weighted Average share Price
(VWAP) to which a discount was applied. Following the issuance, the share capital of the company was
NOK 1,474,201.905 divided into 294,840,381 shares, each with a nominal value of NOK 0.005.
On 14th November 2022, 929,457 new shares were issued as part of the Restricted Stock Units (RSUs)
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program. Following the issuance, the share capital of the company was NOK 1,478,849.19 divided
into 295,769,838 shares, each with a nominal value of NOK 0.005. At year-end 2022, 120,468 shares
included in the program remained to be issued during 2023.
On 24th November 2022, 120,468 new shares were issued as part of ESPP. Following the issuance,
the share capital of the company was NOK 1,479,451.53 divided into 295,890,306 shares, each with
a nominal value of NOK 0.005. These shares were formally registered with the Norwegian Register of
Business Enterprises on January 3rd, 2023.
At the Annual General Meeting (AGM) on May 31st, the board was given the authorization to issue
shares amounting to up to 20% 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 of up
to 10% of the share capital and in addition provided the right to issue shares in relation to MIP. At an
Extraordinary General Meeting (EGM) on July 12th, the board’s authorization to issue shares in relation
to MIP was renewed to include share options which can be granted to the chairperson. Options were
granted to the chairperson on 1st September. The authorizations are valid until the annual general
meeting in 2023.
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.
LINK at year-end 2022 had more than 3,000 shareholders, of which the largest 10 shareholders
combined controlled 66% of the company. Abry Partners, represented by Citibank as nominee, was the
largest single controlling shareholder with a 31.7% stake through subsidiary holdings.
The LINK Mobility Group Holding ASA share closed at NOK 7.52 on the Oslo Stock Exchange at year-
end 2022, depreciating 61% mainly reflecting a general repricing of growth and technology 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 continues to strengthen
and focus on strategic functions with reorganizing internal competencies and with emphasis on the
sales departments through streamlined sales skills development and measurements.
Regional segments have also been restructured to maximize synergies. By the end of 2022, LINK had
688 permanent employees. 34.16% of the total LINK workforce is women, compared to 34% in 2021.
The 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.
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 (www.
linkmobility.com/investors/sustainablilty) and in the “Sustainability” section of this report.
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LINK believes in transparent corporate governance processes, and that good corporate governance
will strengthen confidence, and help to ensure sustainable value creation in the best 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 latest revisions made on December 7th 2022, 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).
The board of directors defines objectives, strategies, and risk profiles for LINK’s business through
deep dives into the strategy and business throughout the year, to ensure that the company creates
value for shareholders in a sustainable manner. The board takes financial, social, and environmental
considerations into account when performing such deep dives.
The board of directors evaluates objectives, strategies, and risk profiles annually.
LINK fully complies with the Code.
3. Equity and dividends
LINK has a capital structure appropriate to the company’s objective, strategy, and risk profile.
Dividend Policy is published on LINK’s homepage under corporate governance, key documents.
LINK fully complies with the Code.
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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
fifth business day ahead of the general meeting have a right to attend.
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 and
regulations, and all documentation required for the shareholders to sufficiently prepare for 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.
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.
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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 considered. 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
remuneration. A code of conduct for the nomination committee was defined by an EGM in LINK on
September 7th, 2020, and revised by the AGM on May 31st, 2022. The nomination committee’s duties
are to propose candidates for election to the board, to make assessments of proposed candidates, and
to propose remuneration to be paid to such members. The justification for the committee’s proposal
is provided separately.
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 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 after EGM on September 27th, 2022, 3 women and 3 men. Except
for the chairman, who is elected for two years, each board member is elected for one year in general
meeting.
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Overview of the Board of Directors
The names and positions of the Board members are set out in the table below.
LINK fully complies with the Code
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, 2022. 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 2022.
The board of directors evaluates its performance and expertise annually.
The board held seventeen (17) meetings in 2022 and arranged three (3) general meetings. The average
board meeting attendance by members was 94%.
The Board of directors has set out three sub-committees, as described below. The table shows the
board members’ memberships in the committees per December 31st, 2022.
Name
Audit
Committee members
Remuneration
Committee members
M&A
Committee members
André Christensen
Jens Rugseth
Robert Joseph Nicewicz Jr
Sara Murby Forste
Grethe Viksaas
Sabrina Gosman
LINK fully complies with the Code
Name Position Served since Term expires Independence
André Christensen Chairman 2022 2024
Jens Rugseth Board member 2005 2023
Robert Joseph Nicewicz Jr Board member 2018 2023
Sabrina Gosman Board member 2022 2023
Grethe Viksaas Board member 2020 2023
Sara Murby Forste Board member 2020 2023
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Annual Report 2022 | Report from the Board of Directors
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 a two-year term.
The audit committee’s obligations are defined in instructions defined by the board. The current version
of the audit committee’s instructions is from December 7th, 2022. The committee is a preparatory
and advisory body for the Board and support the Board in the exercise of its responsibility for financial
reporting, internal control and risk management. Furthermore, the committee is a preparatory body for
the Board in relation to LINK’s election of statutory auditor and make recommendations to the Board
in accordance with requirements in law, regarding the appointment or removal of statutory auditor and
the statutory auditor’s remuneration and other terms of engagement.
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 obligations
are defined in instructions defined by the board. The current version of the remuneration committee’s
instructions is from December 7th, 2022. 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 AGM. The remuneration committee may liaise with external
compensation consultants. The remuneration of senior executives is currently threefold. An individual
fixed salary, variable salary elements based on a group-wide set of KPIs, and incentives linked to share
price performance.
M&A committee
LINK has an M&A committee that consists of board members and members of the company’s
management. The M&A Committee’s obligations are defined in instructions defined by the board.
The current version of the remuneration committee’s instructions is from February 16th 2021. The
committee 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 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 on the process through the year, and the board annually
supervises the risk management process output and approves the risk profile for each of the six risk
areas defined by LINK. LINK’s risk profile defines the level acceptable in order to reach its objectives.
The definition forms the basis for management execution, controls, and resource allocation within
each risk area.
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Annual Report 2022 | Report from the Board of Directors
LINK’s operative processes for risk management are based on an approach where the group
organization defines policies and procedures enabling entities to implement locally or within a specific
area. Internal controls are implemented by the functional areas, market, M&A, finance, operational,
IT and legal & compliance, and each area provides support and information from group level to local
entities or specific areas depending on requirements. Internal annual audits are performed for some
areas. Policies are accessible to employees at the LINK Intranet, and training is provided by area.
Please refer to “Risks” above for an overview of the risk areas.
LINK fully complies with the Code.
11. Remuneration of the board of directors
The remuneration of the board of directors reflects the board’s responsibility, expertise, time
commitment, and the complexity of the company’s activities. The specific remuneration is listed in
note 8 payroll.
The remuneration of the board members is not linked to the company’s performance, and share options
have not been granted except for to the chairman. The chairman of the board was in an EGM on July
12th, 2022, granted a right to 2,000,000 share options, where 1 option shall give the right to subscribe
for 1 share in LINK. A share option agreement was entered into in accordance with this decision, and
the grant of share options was made public on the Oslo Stock Exchange on September 1st, 2022.
LINK deviates from the Code regarding grant of share option to chairman.
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 General Meetings (linkmobility.com) .
Remuneration report following the guidelines will be made available on LINK’s website
https://www.linkmobility.com/investors/related-documents
LINK’s performance-related remuneration is defined annually by the board and is subject to an absolute limit.
LINK fully complies with the Code.
13. Information and communication
The board of directors has established guidelines for LINK’s reporting of financial and other 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 monthly newsletter, a dedicated
investor relations professional and management meeting in relation to quarterly reporting.
LINK fully complies with the Code.
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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 given sufficient information and
time to form a view of the offer. The board’s statement on the offer will make it clear whether the views
expressed are unanimous or specify the basis on which specific members excluded themselves. Any
final decision to go ahead with a potential offer will be made by the shareholders in an extraordinary
general meeting (EGM).
LINK fully complies with the Code.
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 and key aspects
of the audit, comment on any material estimated accounting figures, and 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 annually,
including weaknesses identified by the auditor and proposals for improvement.
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.
Sustainability
LINK is committed to maintaining high ethical standards regarding values and ethics 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 labour standards and equality
and to become leading in terms of Environmental, Social, and Governance (ESG). The “Sustainability”
section of this report will provide further insight into LINK’s approach to sustainability.
Insurance
LINK has a Directors and Officers Liability Insurance in place. The insurance covers 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’s subsidiaries.
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Annual Report 2022 | Report from the Board of Directors
Forward-looking statement 2023
Organic adjusted EBITDA growth in fixed currency 12-15%
Forward-looking statement
2025
Pro forma revenue (NOK million) 10 000
Pro forma adjusted EBITDA margin 15-17%
The insurance policy is issued by a reputable, specialized insurer with appropriate rating, and protects
LINK’s directors, officers and any employees that can incur personal liability from claims made against
them in respect of actual or alleged acts in their capacity as directors and officers.
Forward looking statement
LINK expects organic adjusted EBITDA growth of 12-15% in fixed currency for 2023, driven by higher
gross profit growth than in 2022 and opex savings from cost reduction initiatives. The increased
growth in profitability reflects significantly improved commercial momentum with increased inflow of
new business, opex reductions progressing ahead of target partly offsetting underlying cost increases
and dilutive effect on growth from non-recurring covid traffic to disappear after Q1 23. Macroeconomic
uncertainty remains, customer churn is however expected to remain at a low level.
LINK aims to become a top 5 global CPaaS player and sees long-term organic revenue growth at 20%
per year with traction on adoption of advanced CPaaS solutions. Pro forma annual revenue of NOK
10 billion, from both accretive acquisitions and organic growth, is targeted for 2025. LINK’s highly
scalable business model will support a pro forma adjusted EBITDA margin in the 15-17% range at that
revenue level.
LINK Mobility Group Holding ASA
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Annual Report 2022 | Report from the Board of Directors
The board of directors appreciates and emphasizes uncertainty in relation to assessments of expected
future development.
Oslo, 27 April 2023
The Board of Directors at LINK Mobility Group Holding ASA
Andre Alexander Christensen
Chairman of the board
Sabrina Emma Gosman
Board member
Thomas Martin Berge
Chief Executive Officer
Sara Katarina Murby Forste
Board member
Jens Rugseth
Board member
Robert Joseph Nicewicz Jr
Board member
Grethe Helene Viksaas
Board member
LINK Mobility Group Holding ASA
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Annual Report 2022 | Financial statements 2022
Financial
statements
2022
Annual Report 2022
CHAPTER 09
LINK Mobility Group Holding ASA
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Annual Report 2022 | Financial statements 2022
Andre Alexander Christensen
Chairman of the board
Sabrina Emma Gosman
Board member
Thomas Martin Berge
Chief Executive Officer
Sara Katarina Murby Forste
Board member
Jens Rugseth
Board member
Robert Joseph Nicewicz Jr
Board member
Grethe Helene Viksaas
Board member
Responsibility Statement
We confirm that, to the best of our knowledge, the consolidated financial statements for the year
ended 31 December 2022 have been prepared in accordance with IFRS as adopted by the EU, that the
financial statements for the parent company for the year ended 31 December 2022 have been prepared
in accordance with IFRS as adopted by the EU, that they give a true and fair view of the Company’s and
Group’s assets, liabilities, financial position and results of operations, and that the Report of the Board
of Directors gives a true and fair review of the development, performance, and financial position of the
Company and the Group and includes a description of the principal risks and uncertainties that they face.
Oslo, 27 April 2023
LINK Mobility Group Holding ASA
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Annual Report 2022 | Financial statements 2022
Consolidated income statement
For the period ended 31 December
(Amounts in NOK 1000)
Note 2022 2021
Revenue 6 5,190,049 4,410,136
Total operating revenue 5,190,049 4,410,136
Direct cost of services rendered -3,805,181 -3,209,707
Payroll and related expenses 8 -565,492 -579,045
Other operating expenses 9 -341,745 -316,867
Depreciation and amortization 7, 13, 14 -415,592 -337,706
Impairment of intangible assets and goodwill 14 -180,360 -
Total operating expenses -5,308,369 -4,443,325
Operating profit (loss) -118,320 -33,189
Finance income and finance expenses
Net currency exchange gains (losses) 10 93,776 99,745
Net interest expense 10 -148,556 -127,518
Net other financial expenses 10 17,670 13,291
Total finance income (expense) -37,109 -14,481
Loss before income tax -155,429 -47,670
Income tax 22 4,323 -29,891
Loss for the period -151,106 -77,561
Loss attributable to:
Owners of the company -151,106 -77,561
Earnings per share (NOK/share):
Earnings per share (NOK/share): 11 -0.51 -0.26
Diluted earnings per share 11 -0.51 -0.26
The accompanying notes are an integral part of these financial statements.
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Annual Report 2022 | Financial statements 2022
Consolidated statement of Comprehensive Income
For the period ended 31 December
(Amounts in NOK 1000)
2022 2021
Profit (loss) for the period -151,106 -77,561
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences of foreign operations 271,850 -113,432
Gains and losses net investment hedge -49,875 45,743
Tax on OCI that may be reclassified to P&L 10,973 -10,063
Other comprehensive income for the period 232,947 -77,753
Total comprehensive income for the period 81,841 -155,314
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Annual Report 2022 | Financial statements 2022
Consolidated statement of financial position
(Amounts in NOK 1000)
2022 2021
ASSETS Note
Goodwill 5, 13 5,788,277 5,614,510
Other intangible assets 5, 13 2,929,503 2,946,506
Deferred tax asset 22 133,145 142,944
Equipment and fixtures 14 22,143 20,485
Right-of-use assets 7 47,865 64,398
Other non-current assets 2,876 3,011
Total non-current assets 8,923,810 8,791,854
Trade and other receivables 15, 18 1,243,758 904,923
Cash and cash equivalents 16, 18 826,851 843,618
Total current assets 2,070,609 1,748,540
TOTAL ASSETS 10,994,419 10,540,394
EQUITY AND LIABILITIES
Share capital 1,479 1,471
Share premium and other reserves 5,856,471 5,802,356
Accumulated translation differences 414,942 181,994
Retained earnings (accumulated losses) -1,047,370 -896,264
Total equity 17 5,225,521 5,089,557
Liabilities
Long-term borrowings 18, 19 3,837,096 3,696,470
Lease liabilities 7, 18, 19 34,381 45,040
Deferred tax liabilities 22 533,064 556,961
Other long-term liabilities 11,006 18,792
Total non-current liabilities 4,415,547 4,317,263
Short-term borrowings 18, 19 5,470 24,423
Lease liabilities 7, 18, 19 14,217 16,906
Trade and other payables 18, 21 1,331,086 1,062,618
Income tax payable 22 2,578 29,627
Total current liabilities 1,353,351 1,133,574
Total liabilities 5,768,898 5,450,837
TOTAL EQUITY AND LIABILITIES 10,994,419 10,540,394
The accompanying notes are an integral part of these financial statements.
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Annual Report 2022 | Financial statements 2022
Consolidated statement of financial position
Oslo, 27 April 2023
The Board of Directors of LINK Mobility Group Holding ASA
Andre Alexander Christensen
Chairman of the board
Sabrina Emma Gosman
Board member
Thomas Martin Berge
Chief Executive Officer
Sara Katarina Murby Forste
Board member
Jens Rugseth
Board member
Robert Joseph Nicewicz Jr
Board member
Grethe Helene Viksaas
Board member
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Annual Report 2022 | Financial statements 2022
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 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
- - -77,753 - -77,753
Total comprehensive income for
the period
- - -77,753 -77,561 -155,314
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
Balance at 01 January 2022 1,471 5,802,356 181,994 -896,264 5,089,557
Profit (loss) for the period - - - -151,106 -151,106
Other comprehensive income (loss) for the period,
net of income tax
-
- 232,947 - 232,947
Total comprehensive income for
the period
- - 232,947 -151,106 81,841
Issue of ordinary shares 8 6,282 - - 6,289
Redemption of preference shares - - - - -
Share based payment - 47,833 - - 47,833
Other adjustments - - - - -
Balance at 31 December 2022 17 1,479 5,856,471 414,942 -1,047,370 5,225,521
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 2022 2021
Cash flows from operating activities
Loss before income tax -155,429 -47,670
Adjustments for:
Taxes paid -58,213 -57,224
Finance income (expense) 10 37,109 14,483
Depreciation and amortization 7, 13, 14 595,952 337,706
Share based payment expense 47,833 134,505
Net gain from disposals 32 -88
Change in trade and other receivables -290,208 -115,968
Change in trade and other payables 219,084 93,529
Change in other provisions 24,585 -3,328
Net cash flows from operating activities 420,745 355,944
Cash flows from investing activities
Payment for equipment and fixtures 14 -8,084 -2,506
Payment for intangible assets 13 -172,217 -137,453
Payment for acquisition of subsidiary, net of cash acquired 5 -61,477 -1,869,208
Disposal of subsidiary - 62
Purchase price adjustment acquisition of subsidiary 10 - -
Net cash flows from investing activities -241,778 -2,009,105
Cash flows from financing activities
Proceeds on issue of shares 6,289 60,807
Repayment of equity - -
Other financial items 19 - -
Proceeds from borrowings 19 - 1,670,021
Repayment of borrowings 19 -81,429 -40,898
Interest paid -141,967 -110,076
Principal elements of lease payments -15,931 -11,379
Net cash flows from financing activities -233,037 1,568,476
Effect of foreign exchange rate changes 37,304 -23,840
Net change in bank deposits, cash and equivalents -16,767 -108,525
Cash and equivalents at beginning of period 843,618 952,144
Cash and equivalents at end of the period 826,851 843,618
The accompanying notes are an integral part of these financial statements.
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Annual Report 2022 | Financial statements 2022
Notes to the financial statements for the period ended
31 December 2022
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 and income expenses
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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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.
LINK Mobility Group Holding ASA owns 100% of LINK Mobility Group AS, which in turn owns 100% the LINK
subsidiaries. The Group’s subsidiaries as at 31 December 2022 are listed below.
Name of entity Date of
acquisition
Place of business / country of
registration
Ownership
interest
LINK Mobility Group AS
10/9/2018 Oslo, Norway 100 %
LINK Mobility AS
10/9/2018 Oslo, Norway 100 %
LINK Mobility USA AS
5/27/2021 Oslo, Norway 100 %
Tismi AS
7/1/2021 Oslo, Norway 100 %
BK Invest Alpha GmbH
1
11/16/2020 Vienna, Austria 100 %
LINK Mobility Austria GmbH
1
11/16/2020 Graz, Austria 100 %
Simple SMS GmbH
10/9/2018 Wels, Austria 100 %
Allterpay EOOD
7/29/2019 Sofia, Bulgaria 100 %
LINK Mobility Bulgaria EAD
3
7/29/2019 Sofia, Bulgaria 100 %
LINK Mobility Holding Aps
3/11/2020 Copenhagen, Denmark 100 %
LINK Mobility A/S
10/9/2018 Copenhagen, Denmark 100 %
Tismi A/S4
10/9/2018 Copenhagen, Denmark 100 %
MarketingPlatform Aps
6/7/2021 Vejen, Denmark 100 %
LINK Mobility Oy
10/9/2018 Tampere, Finland 100 %
Labyrintti International Oy
10/9/2018 Tampere, Finland 100 %
LINK Mobility SAS²
10/9/2018 Paris, France 100 %
Netsize S.A.
1/9/2019 Boulogne- Billancourt, France 100 %
LINK Mobility GmbH
10/9/2018 Hamburg, Germany 100 %
GfMB Gesellschaft für Mobiles
Bezahlen
10/9/2018 Hamburg, Germany 100 %
LINK Mobility Hungary Kft.
12/18/2018 Budapest, Hungary 100 %
LINK Mobility Italia Srl
10/9/2018 Milan, Italy 100 %
AMM S.p.A.
5/31/2021 Arezzo, Italy 100 %
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Annual Report 2022 | Financial statements 2022
Name of entity Date of
acquisition
Place of business / country of
registration
Ownership
interest
Matelab Srl
12/15/2021 Lecco, Italy 100 %
Tismi B.V.
3/10/2021 Bunnik, Netherlands 100 %
Tismi Mobile B.V.
3/10/2021 Bunnik, Netherlands 100 %
LINK Mobility Sp.z.o.o
10/9/2018 Gliwice, Poland 100 %
Razvoen Centar na eMailPlatfor
DOOEL
6/7/2021 Kumanovo, Republic of North
Macedonia
100 %
Tera Communications DOOEL
7/29/2019 Skopje, Republic of North
Macedonia
100 %
LINK Mobility SRL
10/2/2017 Bucharest, Romania 100 %
Teracomm RO SRL 7/29/2019 Bucharest, Romania 100 %
LINK Mobility Spain S.L.U. 10/9/2018 Madrid, Spain 100 %
Altiria TIC Sociedad Limitada 12/14/2021 Madrid, Spain 100 %
LINK Mobility AB5 10/9/2018 Stockholm, Sweden 100 %
Horisen Messaging AG 10/9/2018 Rorschach, Switzerland 100 %
LINK Mobility UK Limited 12/14/2018 Edinburgh, Scotland 100 %
Netsize UK Ltd. 1/9/2019 London, United Kingdom 100 %
Message Broadcast LLC 6/24/2021 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
The French entities Multiwizz SAS and Inwave SAS are merged with LINK Mobility SAS in 2022.
3
The Bulgarian entities TeraVoice EAD and LINK Mobility EAD were merged in Tera Communications EAD
in January 2022.
In February 2022, Tera Communications EAD was renamed LINK Mobility Bulgaria EAD.
LINK Mobility Development Hub EOOD was merged in LINK Mobility Bulgaria EAD in July 2022.
4
LINK Mobile A/S (Denmark) was renamed Tismi A/S in 2022.
5
Netsize IPX AB is merged with LINK Mobility AB in 2022.
LINK Mobility SIA (Latvia/Estonia) is liquidated in 2022.
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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 2022. The requirements arising from revised
IFRSs or IFRIC interpretations are embedded in the recognition, measurement and disclosures relevant
to the consolidated financial statements of the Group from the date of establishment. The accounting
policies adopted are described in Note 3 Summary of significant accounting policies.
Standards and interpretations affecting amounts reported in the current period
The accounting policies adopted, and methods of computation followed are consistent with those of
the previous financial year, except for items disclosed below. The adoption of the following standards
and interpretations has not had any material impact on the disclosures or on the amounts reported in
these financial statements:
• Amendment to IFRS 16 to clarify how a seller-lessee subsequently measures sale and leaseback
transactions
• Amendments to IAS 8 regarding the definition of accounting estimates
• Amendments to IAS 12 regarding defferred tax on leases and decommissioning obligations
As at the date of authorisation of these financial statements, Standards and Interpretations had been
issued by the IASB but were not effective for the financial year ended 31 December 2022. At the date
of these financial statements, it is not foreseable that these changes will not have a material impact on
the financial reporting for the Group.
New or amended standards that have effective date on 01 January 2024 or later have not been
assessed if these will have any impact on LINK Mobility Groups financial statements in the period of
initial application. Management will continue to follow the development of changes to Standards and
Interpretations issued by the IASB throughout 2023.
Note 3 Summary of significant accounting policies
3.1 General information
LINK Mobility Group Holding ASA ("the Company") is a limited liability Company incorporated and
domiciled in Norway. The address of the registered office is Universitetsgata 2, 0164 Oslo, 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”.
These financial statements were approved for issue by the Board of Directors on date 27 April 2023.
Minor rounding differences may be present, and the total may deviate from the total of the individual
amounts. This is due to the rounding of whole figures to thousands for presentation purposes.
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3.2 Basis for preparation
The financial statements of the Company and the Group have been prepared in accordance with
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards
Board (IASB) and adopted by the European Union. The financial statements have been prepared on the
historical cost basis.
The preparation of financial statements in conformity with IFRSs requires the use of certain 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, and areas in which
assumptions and estimates are significant to the financial statements are disclosed in Note 4 Critical
accounting judgements and key sources of estimation variances. The financial statements have been
prepared on a going-concern basis.
The presentation currency of the financial statement is Norwegian kroner (NOK). Amounts are rounded
to nearest thousand, unless otherwise stated.
3.3 Principles of consolidation
The consolidated financial statements incorporate the financial statements of the Company 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 financial statements of the subsidiaries are prepared for the same reporting periods as 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 transferred
and all the identifiable assets and liabilities of acquired entities are, with limited 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 amount of any
non-controlling interest in the investee over the net amounts of the identifiable assets acquired and
the liabilities assumed. If, after reassessment, the Group’s interest in the net fair value of the investee’s
identifiable assets, liabilities and contingent liabilities exceeds 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 of cash generating units) that is expected to
benefit from the synergies of the combination. A cash-generating unit is the smallest identifiable group
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of assets that generate cash inflows that are largely independent of the cash inflows from other assets
or group of assets. If the recoverable amount of the cash-generating unit is less than its carrying
amount, the impairment loss is allocated first to reduce the carrying amount of each asset in the unit.
Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised
for 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 period adjustments depends on how the contingent
consideration is classified. Contingent consideration that is classified as equity is not remeasured
at subsequent reporting dates and 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 profit or loss.
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 measurement period
(see above), or additional assets or liabilities are recognised, to reflect new 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 classification
An asset is classified as current when it is expected to be realised, or is intended for sale or consumption,
in the Group’s normal operating cycle, it is expected/due to be realised or settled within next twelve
month after the reporting date. Other assets are classified as non-current. A liability is classified as
current when it is expected to be settled in the Group’s normal operating 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 months after the reporting period. All other
liabilities are classified as non-current.
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.
When another party is involved in providing goods or services to a customer, the Group evaluates
whether it has an obligation to provide the specified service itself (i.e. the Group is the 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.
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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 to fulfilling a specified
contract with a customer are regarded as a contract fulfilment cost and 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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3.7 Foreign currency translation
The consolidated financial statements are presented in NOK, which is the Group’s functional currency.
In preparing the financial statements of the individual companies, transactions in 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 are
presented in the income statement as financial items. All other foreign exchange gains 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.
For the purposes of presenting consolidated financial statements, the assets and liabilities of 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, unless exchange rates
fluctuate significantly during that period, in which case the 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 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 respect of that
operation attributable to the owners of the foreign operation are reclassified to 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 interests and are not recognised in profit or loss.
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 years
Customer relations/contracts 7-10 years
Technology 3-10 years
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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 of cash-generating units) expected to
benefit from the synergies of the combination. If the recoverable amount of the cash-generating unit is less
than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount
of any goodwill allocated 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. Intangible assets with indefinite useful lives are carried at cost less accumulated
impairment losses.
Separately acquired intangible assets
Intangible assets with finite useful lives such as Technology, that are acquired separately 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:
• the technical feasibility of completing the intangible asset so that it will be available for use or sale;
• the intention to complete the intangible asset and use or sell it;
• the ability to use or sell the intangible asset;
• how the intangible asset will generate probable future economic benefits;
• the availability of adequate technical, financial and other resources to complete the development
and to use or sell the intangible asset; and
• 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 expenditure
incurred from the date when the intangible asset first meets the recognition criteria 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 fixtures
Equipment and fixtures are initially recognised at cost, which includes the purchase price (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 intended manner. Equipment
and fixtures are subsequently recognised at cost less accumulated 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. The
straight-line depreciation method is used as this best reflects the consumption of the 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 are
derecognised and any remaining net carrying amount is recognised in operating profit (loss) as loss
on disposal.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. The gain or loss arising on the
disposal or retirement of an item of equipment and fixtures is determined as the 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-financial 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 (if any). Where the asset does
not generate cash flows that are independent from other assets, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent
basis of allocation can be identified, corporate 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 basis can be identified.
Goodwill and intangible assets with an indefinite useful life are tested for impairment at least 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 assessing value
in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.
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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 prior years. A reversal of an impairment loss
is recognised immediately in profit or loss, unless 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 use of an identified
asset for a period of time in exchange for consideration. 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 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.
3.13 Financial Instruments
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
The Group has classified the financial instruments into the following categories of financial assets and
liabilities: Financial assets and liabilities at fair value through profit and loss (FVTPL), financial assets
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at amortised cost (FAAC), financial assets at fair value through other comprehensive income (FVTOCI)
and Financial liability at cost (FLAC). Currently the Group does not have any assets in the classification
of FVTOCI.
The categorisation of financial instruments (financial assets and liabilities) for measurement purposes
is based on the nature and purpose of the financial instrument and is determined on initial recognition.
The Group presents financial assets and liabilities in the following classes: 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 financial assets
The financial assets held by the Group, primarily trade and other receivables, are held within a business
model whose objective is to hold financial assets in order to collect contractual cash flows and are
thus measured subsequently at amortised cost less loss allowances. The 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 each reporting date to reflect changes in credit risk
since initial recognition. The impairment is calculated by taking into account the historic evidence of
the level of credit losses experienced and the ageing profile of the trade receivables. Individual trade
receivables are impaired when 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-interest-
bearing financial liabilities. Borrowings (non-current and current) include bank loans and overdrafts.
These liabilities are initially recognised in the statement of financial position at fair value (net of any
transaction costs), and subsequently measured at amortised cost using the effective interest rate
method.
The effective interest method calculates the amortised cost of a financial liability and the 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 or discounts, through the expected life
of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial
liability.
The Group derecognises financial liabilities when, and only when, the Group’s obligations are
discharged, cancelled, or have expired. The difference between the carrying amount of the financial
liability derecognised, and the consideration paid and payable is recognised in profit or loss.
3.14 Cash flow
The Group presents the statement of cash flows using the indirect method. Cash inflows and outflows
are shown separately for investing and financing activities, while operating activities 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 financing activities. Value Added
Tax and other similar taxes are regarded as collection of tax on behalf of authorities.
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3.15 Employee benefits
The Group operates a defined contribution plan (DCP) for post-retirement benefits. A defined
contribution plan is a pension plan under which the Group pays fixed contributions to a separate entity
(insurance company). The Group has no legal or constructive obligations to pay further contributions
to the pension plan for benefits relating to employee service in the current and prior periods. Payments
to defined contribution retirement benefit plans are recognised as an 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 temporary
differences between the carrying amount of assets and liabilities for financial 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 profits, nor for differences relating to investments
in subsidiaries to the extent that it is probable 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 tax asset is recognised only to
the extent that it is probable that the future taxable profits will be 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 to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be realised.
Tax positions are regularly reviewed to identify situations where it is not probable that the relevant tax
authorities will accept the treatment used in the tax filings. Uncertain tax positions 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 authority will accept an uncertain tax
treatment, the effect of uncertainty is reflected when 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.
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Current tax payable is based on taxable profit for the year. Taxable profit differs from profit 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
considered probable that there will be a future outflow of funds to a tax authority. The provisions 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 of assets
and liabilities in the consolidated financial statements and the corresponding tax bases used in the
computation of taxable profit and is accounted for using the liability method. 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 that it is probable that taxable profits
will be available against which deductible temporary differences can be utilized. The carrying amount
of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
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.
Current and deferred tax are recognised in profit or loss, except when they relate to items that 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.
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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 significant
accounting policies), management is required to make judgements, estimates and 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
The Group has finalised an acquisition in FY2022; refer to note 5 (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 significant judgement. In order
to calculate the fair value of the intangible assets in the acquired companies, the expected future cash
flows have been 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 fair value of the net
identifiable assets acquired is recognised as goodwill.
Significant input used in the estimation of fair values utilising the above methods are as follows:
• The remaining estimated useful life of technology is between 3 and 10 years
• The remaining estimated useful life of technology is 10 years
• 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 estimate the future cash flows
expected to arise from the cash-generating unit and a suitable discount rate in order to calculate
present value. As of 31 December 2022, the amount of goodwill tested for impairment amounted to
KNOK 5 788 277 (FY2021 - KNOK 5 614 510). In the current year, an impairment loss of NOK 180 million
was recognised in the Spanish CGU in the Western Europe region (FY2021 - nil). Please refer to notes
3 (summary of significant accounting policies) and 13 (intangible assets) for further details related to
the impairment testing methodology and results.
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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 ultimate tax determination
is uncertain during the ordinary course of business. Where the final 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 an
assumption that the acquired company will achieve a target EBITDA for the current financial year.
The final purchase price is subject to an upwards or downwards earn-out adjustment based on the
company’s actual achieved EBITDA. The earn-out adjustment is accounted for in the income statement
as finance income or expense.
Note 5 Business combinations
Acquisition of US Customer Base
On 16 November 2022, LINK Mobility Group AS acquired the complete US customer base from a larger
undisclosed company. Upon completion of this transaction, the customer base was merged with Message
Broadcast LLC; the company is headquartered in Newport Beach, California, USA.
The purchase price is cash upon closing.
Acquisitions during the period
2022 Main business activity Date of business
combination
Proportion of voting
equity acquired
Acquiring entity
Customer Base Provider of mobile
messaging services
and mobile solutions
16 November 2022 100% Message Broadcast LLC
Revenue and net profit, in the period from the date of acquisition until 31 December 2022:
(Amounts in NOK 1 000)
Revenue 7,886
EBITDA 1,405
Net profit 1,405
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Estimated revenue and net profit, as if the acquisition had occurred 01 January 2022
(Amounts in NOK 1 000)
Revenue 86,889
EBITDA 15,258
Net profit 15,258
Consideration transferred
(Amounts in NOK 1 000)
Cash 61,477
Total consideration 61,477
Identifiable assets and liabilities recognised on the date of the business combination
Assets assumed in connection with the business combinations have been recognised at the
estimated fair value on the date of the business combination. Management has identified 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.
(Amounts in NOK 1 000)
Customer relationships 37,608
Trademark -
Technology -
Deferred tax asset -
Equipment and fixtures -
Other non-current assets -
Trade and other receivables 14,015
Cash and cash equivalents 520
Long-term borrowings* -
Deferred tax liability (7,898)
Other long-term liabilities -
Trade and other payables (9,175)
Income tax payable -
Fair value of identifiable net assets acquired 35,070
* 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.
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Goodwill
(Amounts in NOK 1 000)
Consideration transferred 61,477
Fair value of identifiable net assets acquired 35,070
Goodwill 26,408
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)
Incurred 2022 5,487
Total 5,487
Identifiable assets and liabilities recognised on the date of the business combination
Assets assumed in connection with the business combinations have been recognised at the
estimated fair value on the date of the business combination. Management has identified 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.
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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 profitable growth means that
adjusted EBITDA is the prevailing measure of performance (refer to alternate performance measures).
An examination of operating units based on market maturity and product development as well as
geography identifies five natural reporting segments. These are Northern Europe, Western Europe,
Central Europe, Northern America and Global Messaging; these represent market clusters. Generally,
regions are segregated into similar geographic locations as these follow similar market trends. Global
Messaging includes all regions with aggregator traffic; the other four have enterprise traffic.
The regions are:
Northern Europe
Northern Europe is comprised of Norway, Sweden, Denmark, Finland.
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.
North America
North America is comprised of the US market and currently includes Message Broadcast LLC.
Global Messaging
Global messaging is comprised of non-enterprise traffic and is representative of either stand-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.
Wholesale/aggregator business is defined as an operating unit within LINK’s industry, and 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 connections. Smaller
local aggregators cannot be expected to be covered efficiently by Global 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).
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Revenue per segment 2022 2021
Northern Europe 1,364,335 1,333,080
Central Europe 1,183,616 1,075,264
Western Europe 1,423,472 1,251,425
North America 276,309 119,502
Global Messaging 942,317 630,866
Total 5,190,049 4,410,136
Gross profit per segment 2022 2021
Northern Europe 375,816 381,904
Central Europe 361,792 360,094
Western Europe 317,179 285,686
North America 246,594 108,937
Global Messaging 83,487 63,808
Total 1,384,869 1,200,429
Adjusted EBITDA per segment 2022 2021
Northern Europe 226,653 241,137
Central Europe 232,052 241,614
Western Europe 153,469 139,421
North America 139,703 65,692
Global Messaging 47,998 33,601
Group Costs -174,653 -164,806
Total 625,221 556,660
Reconciliation of adjusted EBITDA to Group profit
(loss) before income tax 2022 2021
Adjusted EBITDA 625,221 556,659
Non-recurring items* -147,589 -252,142
Depreciation and amortization -595,952 -337,706
Operating profit -118,320 -33,189
Finance income (expense) -37,109 -14,481
Total -155,429 -47,670
*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 described in the table provided in note 3 to
the financial statements.
Revenue per business line 2022 2021
Mobile messaging transactions 4,795,130 4,103,926
Payment services 25,054 30,676
Licenses 286,838 212,634
Consulting services 83,027 62,900
Group 5,190,049 4,410,136
Revenue per geographical region
Austria 210,443 257,916
Bulgaria 112,151 94,428
Denmark 172,014 143,343
Finland 100,597 93,711
France 846,996 722,171
Germany 486,481 466,128
Hungary 17,213 17,897
Italy 415,764 296,184
Latvia 40 6,849
The Netherlands 146,892 60,064
North Macedonia 1,878 1,530
Norway 753,586 761,781
Poland 241,811 236,598
Romania 4,023 2,507
Spain 116,977 92,004
Sweden 352,422 439,741
Switzerland 869,706 551,450
United Kingdom 64,747 46,334
United States of America 276,309 119,502
Total 5,190,049 4,410,136
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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 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
Period ended 31 December 2022
Opening net book amount 685 60,116 3,597 64,398
Additions 902 1,696 - 2,598
Net additions from acquired businesses - - - -
Depreciation charge (968) (15,027) (3,137) (19,131)
Closing net book amount 31.12 620 46,785 460 47,865
Cost 5,018 108,422 7,009 120,449
Accumulated depreciation (4,399) (61,636) (6,548) (72,583)
Net book amount 31.12 619 46,786 460 47,865
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 706 57,565 3,674 61,946
New lease liabilities recognised in the period 902 1,696 - 2,598
Total leasing payments for the lease liability (1,058) (15,427) (3,368) (19,852)
Interest expense on lease liabilities 97 3,611 200 3,907
Closing net book amount 31.12 647 47,445 506 48,599
whereof:
Current lease liabilities 14,217
Non-current lease liabilities 34,381
The Group's leasing activities and how these are accounted for:
The Group leases office space, equipment and vehicles. Rental contracts are typically made for fixed
periods between 1 and 10 years but may have extension options as described below.
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:
• Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• Variable lease payment that are based on an index or a rate, initially measured using the index or rate
as at the commencement date;
• Amounts expected to be payable by the group under residual value guarantees;
• The exercise price of a purchase option if the group is reasonably certain to exercise that option; and
• Payments of penalties for terminating the lease, if the lease term reflects the group exercising that
option.
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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:
• 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;
• 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
• 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.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit
or loss over the lease period to produce a constant periodic rate of interest on the remaining balance
of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
• The amount of the initial measurement of lease liability;
• Any lease payments made at or before the commencement date less any lease incentives received;
• Any initial direct costs; and
• 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 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 low-value
assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are
leases with a lease term of 12 months or less. Low-value assets comprise IT equipment and small
items of office furniture.
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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 the
Group. These are used to maximise operational flexibility in terms of managing the assets 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 expenses
(Amounts in NOK 1000)
2022 2021
Wages and salaries 390,997 324,839
Share-based payment expense 47,833 134,505
Social security tax 77,654 80,147
Pension expense 21,370 19,680
Other benefits 27,637 19,875
Total payroll and related expenses 565,492 579,045
The number of labor years employed during the financial year: 761 714
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 asset to the extent that future benefits can be determined as plausible.
Remuneration of key group employees
Key group employees are defined as employees who are part of LINK Group management. In FY2022 and as at
31 December 2022, Group management consisted of the following individuals (amounts in NOK 1000):
Name and position Employed since Salary Bonus Pension
expense
Other
remuneration
Thomas Berge (Interim CEO) September 2016 4,572 972 80 12,389
Morten Løken Edvardsen (Interim CFO) January 2018 2,177 275 79 240
Pål Marius Brun (CPO and Interim CTO) February 2013 1,468 224 66 -
Lin Ackema (Chief People and Strategy Officer) October 2020 2,417 497 80 961
Benoit Bole (COO Western Europe) January 2019 1,908 183 294 4,805
Ina Rasmussen (COO Northern Europe) January 2015 2,010 454 54 1,442
Hendrik Faasch (COO Central Europe) August 2020 1,927 703 - 961
Total 16,480 3,309 652 20,798
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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 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 Adjusted EBITDA, and
other quantitative 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 was NOK 46.995 (for all practical purposes equal to the
share price) and NOK 20.30 at the grant date, respectively.
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 wasNOK 20.89.
An expense of NOK 44 million (including accrued social security tax) related to share options has been
recorded in FY2022. The expenses related to the RSU and LTI are NOK 36 million and NOK 12 million,
respectively. The amount directly related to the social security tax provision is credit of 6 million.
In addition to the RSU and LTI programs, all employees may participate in the employee share purchase
program (ESPP). Under the terms of the ESPP, all employees were given the opportunity to apply for
shares for up to a maximum amount of NOK 100,000; employees receive a 20% discount on these
shares. The shares are subject to a lock-up period of 12 months and after a vesting period of two years,
employees are entitled to 1 matching (subject to paying the nominal value per share) per 3 shares
subscribed if certain conditions are fulfilled. An expense of NOK 1 million related to ESPP shares is
recognised in 2022.
In 2022, it is resolved that the Chairperson can be granted 2 million share options ("COB Options"),
whereby 1 option gives the right to subscribe for 1 share in the Company. The subscription right is the
volume weighted average trading price of the Company's shares on the Oslo Stock Exchange for the
last 10 trading days before the date of the Extraordinary General Meeting. The options shall vest for 24
months from the grant date and may be exercised for 7 years from the date of grant; vesting is subject
to the Chairperson having not withdrawn from this position. An expense of NOK 1 million related to COB
Options is recognised in 2022.
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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 10/20/2021 10/20/2028
20.89 3,000,000 12/7/2023 10/20/2028
Sum 5,000,000
Q4 2022 2022
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
Name Grant date
Number of
LTI’s granted
Number
of LTI’s
vested at
31.12.2022 Expiry date
Exercise
price
range
Thomas Berge (Interim CEO) 10/20/2020 118,000 118,000 10/20/2027 47.00
Morten Løken Edvardsen (Interim CFO) 10/20/2020 58,000 58,000 10/20/2027 47.00
Pål Marius Brun (Interim CTO) 10/20/2020 34,000 34,000 10/20/2027 47.00
Benoit Bole 10/20/2020 88,000 88,000 10/20/2027 47.00
Hendrik Faasch 10/20/2020 88,000 88,000 10/20/2027 47.00
Ina Rasmussen 10/20/2020 88,000 88,000 10/20/2027 47.00
Lin Ackema 10/20/2020 88,000 88,000 10/20/2027 47.00
Others (not specified) 10/20/2020 1,438,000 1,179,000 10/20/2027 47.00
Sum 2,000,000 1,741,000
The tables below shows an overview of the outstanding LTI's, RSU's, and COB Options:
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Name Grant date
Number of
LTI’s granted
Number
of LTI’s
vested at
31.12.2022 Expiry date
Exercise
price
range
Thomas Berge (Interim CEO) 10/20/2021 135,000 - 10/20/2028 20.89
Morten Løken Edvardsen (Interim CFO) 10/20/2021 58,000 - 10/20/2028 20.89
Pål Marius Brun (Interim CTO) 10/20/2021 36,000 - 10/20/2028 20.89
Benoit Bole 10/20/2021 110,000 - 10/20/2028 20.89
Hendrik Faasch 10/20/2021 110,000 - 10/20/2028 20.89
Ina Rasmussen 10/20/2021 110,000 - 10/20/2028 20.89
Lin Ackema 10/20/2021 110,000 - 10/20/2028 20.89
Others (not specified) 10/20/2021 2,331,000 - 10/20/2028 20.89
Sum 3,000,000 -
Number of
RSU’s
Average
price
Vested RSU’s 2,638,364 0.005
Unvested RSU’s 1,130,728 0.005
Total outstanding RSU’s 3,769,092
Strike price Number of
options
Vesting
date
Expiration
date
Vested RSU’s 0.005 1,507,637 10/20/2021 10/20/2028
Vested RSU’s 0.005 1,130,728 10/20/2022 10/20/2028
Unvested RSU’s 0.005 1,130,728 10/20/2023 10/20/2028
Sum 3,769,092
Q4 2022 2022
Number of
options
Average
price
Number of
options
Average
price
Total unvested RSU’s 1,130,728 0.005 1,130,728 0.005
Assigned RSU’s - - - -
Cancelled RSU’s - - - -
Dropped RSU’s - - - -
Expired RSU’s in the period - - - -
Exercised RSU’s in the period -1,130,728 0.005 -1,130,728 0.005
Total outstanding RSU’s - 0.005 - 0.005
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Name Grant date
Number
of RSU’s
granted
Number
of RSU’s
vested at
31.12.2022 Expiry date
Exercise
price
range
Thomas Berge (Interim CEO) 10/20/2020 878,775 615,142 10/20/2028 0.005
Morten Løken Edvardsen (Interim CFO) 10/20/2020 17,044 11,930 10/20/2028 0.005
Pål Marius Brun (Interim CTO) 10/20/2020 - - 10/20/2028 0.005
Benoit Bole 10/20/2020 340,847 238,593 10/20/2028 0.005
Hendrik Faasch 10/20/2020 68,169 47,718 10/20/2028 0.005
Ina Rasmussen 10/20/2020 102,256 71,578 10/20/2028 0.005
Lin Ackema 10/20/2020 68,169 47,718 10/20/2028 0.005
Others (not specified) 10/20/2020 2,293,832 1,605,685 10/20/2028 0.005
Sum 3,769,092 2,638,364
Number of
COB Options
Average
price
Vested COB Options - -
Unvested COB Options 2,000,000 11.70
Total outstanding COB Options 2,000,000
Strike price
Number of
options
Vesting
date
Expiration
date
Unvested COB Options 11.70 2,000,000 8/31/2024 8/31/2031
Sum 2,000,000
Q4 2022 2022
Number of
options
Average
price
Number of
options
Average
price
Total unvested COB Options 2,000,000 11.70 2,000,000 11.70
Assigned COB Options - - - -
Cancelled COB Options - - - -
Dropped COB Options - - - -
Expired COB Options in the period - - - -
Exercised COB Options in the period - - - -
Total outstanding COB Options 2,000,000 11.70 2,000,000 11.70
Name Grant date
Number of
COB Options
granted
Number
of COB
Options
vested at
31.12.2022 Expiry date
Exercise
price
range
Andre Alexander Christensen (Chair) 8/31/2022 2,000,000 - 8/31/2031 11.70
Sum 2,000,000 -
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As at 31.12.2022 there was a total of NOK 1.8 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:
The share price is set equal to the offer price of LINK Mobility Group Holding ASA at the time of grant.
The strike price for the RSUs is set equal to the nominal share value (NOK 0.005).
We assume that historical volatility of a selected group comparable companies within the CPaaS-
univserse is an indication of future volatility.
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%, and the volatility for the COB
options is estimated at 59.99%.
We assume that the employees will exercise the options at the mid-point between earliest and latest
possible exercise opportunity. For the grant in 2022, the expected lifetime is set to vesting plus 1-year.
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.
Remuneration to the Board of Directors
The Board of Directors who did not waive their right to remuneration received payment in July/August
2022. On 31 May 2022, the Company's general meeting resolved the following remuneration for the
Board of Directors for the period from 31 May 2022 until the annual general meeting is held in 2023:
Name Remuneration
Andre Alexander Christensen (Chair) 675,000
Sabrina Emma Gosman 375,000
Robert Joseph Nicewicz Jr. 375,000
Grethe Viksaas 375,000
Sara Murby Forste 375,000
Jens Rugseth 375,000
Robert Joseph Nicewicz Jr. and Sabrina Emma Gosman have both 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.
Remuneration to the Nomination Committee
On 31 May 2022, the Company's general meeting resolved the following remuneration for the nomination
committee for the period from 31 May 2022 until the annual general meeting is held in 2023:
No loans, advances, or guarantees have been granted to key group employees, Board members, or
nomination committee members.
Name Remuneration
Tor Malmo (Chair) 55,000
Oddny Svergja 35,000
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Note 9 Other operating expenses
(Amounts in NOK 1000)
2022 2021
Advisors and consultants 82,854 66,360
IT, licenses and hosting 85,845 65,697
Restructuring costs 21,972 15,493
Cost related to acquisition of subsidiaries* 31,583 74,571
Sales and marketing cost 45,738 39,183
Cost for premises 21,875 19,087
Inventory and equipment 8,896 8,884
Bad debts expense -2,561 -3,179
Other expenses** 45,542 30,771
Total other operating expenses 341,745 316,867
* This expense line item includes costs related to both completed and ongoing acquisitions.
** Other expenses include variable operating expenses related to overhead, travel costs and other operating
expenses.
The table below summarises audit fees for FY2022 (FY2021) 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.
2022 2021
Audit fee 9,108 5,729
Other attestation services 459 37
Tax consulting services - 253
Other services* 969 2,336
Total fee to auditor 10,536 8,355
*In addition to the fees presented above NOK 50k (2021: NOK 1,647k), is remunerated to auditors other than PwC.
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Note 10 Net finance income and expenses
(Amounts in NOK 1000)
The Group’s finance income and expense is comprised of gains (losses) from foreign exchange and
from exposure to interest expenses related to loans from financial institutions. Interest amounts are
presented as a sum of interest on borrowings offset by amortised cost recognised in the profit and loss.
All categories of financial income and expense are presented on a net basis.
Net financial income and expenses 2022 2021
Net currency exchange gains (losses)¹ 93,776 99,745
Net interest expense -148,556 -127,518
Net other financial expense 17,670 13,291
Total finance income -37,109 -14,481
Net interest expense 2022 2021
Interest expense financial institutions - -
Other interest income (expenses) 1,941 -12,303
Interest expense leases -3,907 -3,330
Interest expense bond loan -146,590 -111,885
Total net interest expense -148,556 -127,518
Net other financial expenses 2022 2021
Amortized loan set-up costs - -
Previously capitalized loan set-up costs - -
Earn-out payment from M&A transactions² 15,810 13,291
Other financial (expenses) income 1,860 -
Total net other financial expenses 17,670 13,291
1
Foreign currency gain/loss is presented on a net basis here and in the Consolidated Statement of Profit and
Loss. Exposure to fluctuations in foreign currency comes from external lending denominated in EUR. Refer
to note 19 (interest-bearing liabilities) and note 20 (financial instruments, risk management objectives, and
policies) for further details.
2
2022: This is comprised of the settlement to Teracomm and the revaluation of the earn-out for Marketing
Platform.
2021: This is representative of a change in estimate related to the acquisition of Marketing Platform.
This does not have any cash effect.
LINK Mobility Group Holding ASA
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Note 11 Earnings per share
(Amounts in NOK 1000)
The Group’s earnings per share are calculated as below:
2022 2021
Net loss -151,106 -77,561
Owners of LINK Mobility Group Holding ASA -151,106 -77,561
Weighted average number of ordinary shares (basic)
Issued ordinary shares at 01 January 294,252 270,911
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
Effect of shares issued (07 July 2022) 588
Effect of shares issued (14 November 2022) 929
Effect of shares issued (24 November 2022) 120
Weighted average number of ordinary shares (basic) at 31 December 295,890 294,252
Basic loss per share (NOK) -0.51 -0.26
Weighted average number of ordinary shares (diluted)
Weighted average number of ordinary shares (basic) 295,890 294,252
Effect of share options on issue 2,076 -
Weighted average number of ordinary shares (diluted) at 31 December 297,966 294,252
Diluted loss per share (NOK) -0.51 -0.26
Number of outstanding ordinary shares per 01.01 294,252 270,911
Number of outstanding ordinary shares per 31.12 295,890 294,252
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 2022, the Company had no balances with related parties.
LINK Mobility Group Holding ASA
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Note 13 Intangible assets
(Amounts in NOK 1000)
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 years 7-10 years 3-10 years Indefinite
Amortisation method Linear Linear Linear
Year ended 31 December 2022
Trade
name
Customer
relations Technology Goodwill Total
Opening net book value 294,768 1,806,093 845,644 5,614,510 8,561,016
Net additions from acquired businesses - 37,608 - 28,175 65,783
Additions in period -20 3,006 168,925 - 171,912
Exchange differences 392 128,001 35,049 325,952 489,394
Amortization charge -13,209 -236,738 -140,017 - -389,964
Impairment of goodwill - - - -180,360 -180,360
Closing net book amount 281,931 1,737,970 909,601 5,788,277 8,717,780
At 31 December 2022
Cost 338,767 2,423,175 1,535,172 5,788,277 10,085,390
Accumulated amortisation and impairment -56,835 -685,204 -625,571 - -1,367,611
Net book amount 281,931 1,737,970 909,601 5,788,277 8,717,780
Estimated useful life 25 years 7-10 years 3-10 years Indefinite
Amortisation method Linear Linear Linear
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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 accordingly. The trade
name has not been allocated to specific CGUs.
Customer Relationships
For customer relationships identified and recognised through business combinations, the 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.
Impairment test
Goodwill and other intangible assets with an indefinite useful life (i.e. trade name) are not 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 use cash flow projections reflective of management's
best estimate extended over a five year period. The assumed growth rate has been based on the
management growth estimate for the next five years and subsequently reduced to 2% for the purpose
of determining the terminal value. The pre-tax discount rates applied to the cash flows are calculated
based on the weighted average cost of capital (WACC) specific to each CGU and are within the range
of 6.8% - 17.5%.
Based on the calculations referred to above, it has been concluded that the recoverable amount
exceeds the carrying amount of each CGU with the exception of Spain. Upon testing for impairment,
growth assumptions and future discounted cash flows are evaluated to ensure that the carrying value
of intangible assets is correct; this resulted in an impairment of goodwill in the Spanish CGU equal to
NOK 180 million (FY2021 - nil). There are no indications of further impairment and all other CGU's have
sufficient headroom.
LINK Mobility Group Holding ASA
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Norway 806,490
Sweden 197,135
Denmark 315,959
Finland 220,968
Germany 731,822
Spain 24,015
Poland 261,761
Bulgaria 65,259
France 415,993
Switzerland 186,076
Italy 266,435
Austria 476,121
United Kingdom 6,886
Hungary 13,677
Netherlands 137,120
USA 1,662,557
Total 5,788,277
Goodwill has been allocated to each CGU as presented in the table below. The Group classifies each
country in it operates in as a CGU:
The impairment test shows that the recoverable amounts significantly exceed the carrying amount of
the CGUs.
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 of the Spain. The
estimates used to determine future cash flows and WACC when calculating value in use are subject to
uncertainty. The assumptions are described as follows:
Budgeted period - The basis for the projection of the future cash flows estimated is based on the
financial budget of one year. The budget in combination with the forecasts represent management's
best estimate of the rance of economic conditions that will exist over a five-year 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 previous year
cash-flow, user-specified long-term growth and WACC for the specific CGU.
WACC - future cash flows are discounted to present value using a discounted rate based on a 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 significant
goodwill to exceed recoverable amounts.
LINK Mobility Group Holding ASA
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Note 14 Equipment and fixtures
(Amounts in NOK 1000)
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
Period ended 31 December 2022
Opening net book amount 20,485
Additions 8,084
Net additions from acquired businesses -
Disposals -32
Depreciation charge -7,456
Translation differences 1,062
Closing net book amount 31.12 22,143
Cost 112,369
Accumulated depreciation -90,226
Net book amount 31.12 22,143
Estimated useful life, depreciation plan and residual value is as follows:
Economic (useful) life 3-5 years
Depreciation plan Linear
LINK Mobility Group Holding ASA
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Note 15 Trade and other receiveables
(Amounts in NOK 1000)
2022 2021
Trade receivables 1,029,665 676,054
Accrued revenue 167,354 158,253
Prepayments 17,548 50,680
Other receivables 29,191 19,936
Total trade and other receivables 1,243,758 904,923
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 within the normal operating cycle.
Accrued revenues are representative of an estimate for messaging traffic based on submitted volumes and
delivery of professional services were the performance obligation criteria is met.
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 will be collected based on past experience with
customer and financial position of the debtor. Additional allowances for specific balances are recognised based
on past experience and an analysis of the financial position of the debtor along with other relevant factors.
There is no loss allowance related to accrued revenues.
The Group has recognised a provision for bad debts of KNOK 37 997 (FY2021 - KNOK 37 621). 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 (FY2021 - KNOK 0).
Ageing of past due but not impaired trade receivables
(in thousands of NOK) 2022 % 2021 %
Not past due 611,159 59 % 474,157 70 %
1-30 days overdue 204,810 20 % 131,112 19 %
31-60 days overdue 81,695 8 % 17,891 3 %
61-90 days overdue 58,242 6 % 14,308 2 %
91-180 days overdue 38,941 4 % 18,362 3 %
More than 180 days overdue 34,818 3 % 20,225 3 %
Total 1,029,665 100 % 676,054 100 %
LINK Mobility Group Holding ASA
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Note 16 Cash and cash equivalents
(Amounts in NOK 1000)
2022 2021
Cash and cash equivalents 826,851 843,618
Total cash and cash equivalents 826,851 843,618
Restricted cash 2022 2021
Taxes withheld 10,175 13,181
Other restricted cash 4,582 4,354
Total restricted cash 14,757 17,535
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 in different
currencies (defined as Facility Accounts). In addition to Facility Accounts, various transactional accounts exist in
the same currency as the Facility Account; these are defined as 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 in the cash pool and
the total balance thereof. This balance reflects the intra-Group balance 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.
LINK Mobility Group Holding ASA
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Note 17 Share capital and shareholder information
Share capital as at 31 December 2022 is KNOK 1 480 (2021: KNOK 1 471), being 295 890 306
ordinary shares (2021: 294 252 254 ordinary shares) at a nominal value of NOK 0.005/share (2021:
NOK 0.005/share). There are no preference shares in FY2022 (FY2021: 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:
2022 2021
Ordinary shares opening balance 2022/2021 294,252,254 270,911,039
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
Issue of ordinary shares (07 July 2022) 588,127
Issue of ordinary shares (14 November 2022) 929,457
Issue of ordinary shares (24 November 2022) 120,468
Ordinary shares at the end of the period 295,890,306 294,252,254
Total number of shares at the end of the period 295,890,306 294,252,254
LINK Mobility Group Holding ASA has the following major shareholders as at 31 December 2022:
Name of shareholder Type of account Ownership interest
Citibank, N.A. Nominee 31.65%
State Street Bank and Trust Comp Nominee 7.68%
KARBON INVEST AS Ordinary 5.39%
Citibank, N.A. Nominee 4.53%
FOLKETRYGDFONDET Ordinary 4.28%
The Bank of New York Mellon SA/NV Nominee 3.34%
Danske Bank A/S Nominee 3.23%
FERD AS Ordinary 2.49%
SKANDINAVISKA ENSKILDA BANKEN AB Ordinary 1.78%
The Bank of New York Mellon Nominee 1.44%
VERDIPAPIRFONDET FIRST GENERATOR Ordinary 1.32%
Saxo Bank A/S Nominee 1.31%
NORDEA BANK ABP Broker 1.20%
BARCLAYS CAPITAL SEC. LTD FIRM Ordinary 1.17%
DEFA ENDEAVOUR AS Ordinary 1.16%
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Name of shareholder Type of account Ownership interest
Citibank, N.A. Nominee 1.13%
J.P. Morgan SE Nominee 1.09%
The Bank of New York Mellon SA/NV Nominee 0.85%
VERDIPAPIRFONDET DELPHI NORDIC Ordinary 0.85%
The Bank of New York Mellon SA/NV Nominee 0.84%
76.74%
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 2 Board members)
93,612,321
Karbon Invest AS (controlled by Jens Rugseth) 15,945,105
Sundahl Aps (controlled by Consultant GLT - Søren Sundahl) 9,586,565
Rugz AS (controlled by Jens Rugseth) 500,000
Thomas Berge 331,122
Ina Rasmussen 51,213
Benoit Bole 50,000
Hendrik Faasch 47,719
Lin Ackema 29,460
Pål Marius Brun 16,251
Sara Murby Forste 15,957
Morten Løken Edvardsen 6,595
Grethe Helene Viksaas (Board member) 6,382
LINK Mobility Group Holding ASA
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Note 18 Classes and categories of financial instruments
(Amounts in NOK 1000)
Carrying value
2022 Amortised
cost
Total
Current financial assets
Trade receivables 1,029,665 1,029,665
Cash and cash equivalents 826,851 826,851
Non-current financial liabilities
Borrowings 3,837,096 3,837,096
Lease liabilities 34,381 34,381
Current liabilities
Borrowings 5,470 5,470
Lease liabilities 14,217 14,217
Trade payables 698,333 698,333
The financial assets held by the Group are held within a business model whose objective is 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 2022.
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.
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Note 19 Interest-bearing liabilities
(Amounts in NOK 1000)
Interest bearing liabilities are measured at amortised cost.
Non-current financial liabilities 2022 2021
Bond loan 3,837,096 3,629,772
Long-term lease liability 34,381 45,040
Holdback - 66,698
Total 3,871,478 3,741,510
Current liabilities 2022 2021
Holdback - 15,598
Short-term lease liability 14,217 16,906
Debt to financial institutions/bond loan* 5,470 8,856
Total 19,688 41,360
*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
Total 3,629,772
2022 2021
Bond loan (tap issue 15.12.2020) 2,102,883 1,998,768
Bond loan (tap issue 23.06.2021) 1,786,041 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 -56,127
Amortisation (tap issue 15.12.2020) 8,215 4,118
Amortisation (tap issue 23.06.2021) 17,313 5,231
Accrued interest and fees 5,470 6,980
Carrying amount 3,842,567 3,636,753
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.
LINK Mobility Group Holding ASA
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Maturity analysis of borrowings (including interest)
Contractual maturities of financial liabilities at
31 December 2022
< 3
months
3 months
- 1 year
1 - 2
years
2 - 5
years Total
Bond loan (tap issue 15.12.2020) - 70,968 70,968 2,173,728 2,315,664
Bond loan (tap issue 23.06.2021) - 60,323 60,323 1,847,669 1,968,315
Lease liabilities - 14,217 11,460 22,921 48,599
Holdback - - - - -
Total - 145,508 142,752 4,044,318 4,332,578
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
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:
• 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.
• 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.
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).
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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 cash, 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 unsecured
3.375% fixed rate bond issue, raising the total outstanding amount to EUR 370 million. The bonds were
issued at par.
The bonds have a 5-year tenor and a fixed coupon of 3.375% p.a.; any outstanding bonds are to be
repaid in full at the maturity date.
(Amounts in NOK 1 000) 2022 2021
Bond principal 3,888,923 3,697,779
Transaction costs¹ -77,355 -77,355
Debts secured by collateral 3,811,568 3,620,424
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.
LINK Mobility Group Holding ASA
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Movements in borrowings
See table below for changes in liabilities arising from financing activities, both cash flows and no cash
flow changes.
Bond loan Holdback Other Total
31/12/2020 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
31/12/2021 3,636,753 82,296 - 3,719,049
Bond loan Holdback Other Total
31/12/2021 3,636,753 82,296 - 3,719,049
New debt - - - -
Cancellation of debts - -86,260 - -86,260
Effects of foreign exchange 191,144 3,964 - 195,109
Transaction costs - - -
Amortization 16,180 0 - 16,180
Interest and fees paid -130,140 -1,944 - -132,084
Interest and fee expenses 128,630 1,944 - 130,574
31/12/2022 3,842,567 0 - 3,842,567
LINK Mobility Group Holding ASA
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Note 20 Financial instruments, risk management objectives,
and policies
Through its operations the Group is exposed to the the following financial risks;
• Interest rate risk
• Foreign exchange risk
• Credit risk
• 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 unsecured
3.375% fixed rate bond issue, raising the total outstanding amount to EUR 370 million. The bonds were
issued at par; refer to note 19 for further details.
The sensitivity analysis below is based on the exposure to changes in interest rates for non-derivative
instruments at the reporting date. For floating rate liabilities, the analysis is prepared 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, the
Group’s profit (and corresponding equity) for the period ended 31 December 2022 would decrease/
increase by KNOK 38 901 (FY2021 KNOK 36 959). 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 fluctuations in
exchange rates. Foreign exchange risk arises from transactions related 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.
However, as the Group's overall financial reporting is presented in NOK, changes in the value of DKK,
EUR, SEK, PLN, BGN, CHF, GBP, HUF, RON, MKD or USD in relation to NOK affect the Group’s overall
revenue, profit or loss and financial position. Based on exposure throughout the year and balances at
the period-end, the Group assesses that fluctuations in NOK/EUR, NOK/SEK and NOK/CHF have the
most significant impact on the financial reporting of financial assets 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 2022. The analysis is based on
the assumption that the foreign exchange rates increase or decrease by 10%, all other variables held
constant.
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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.
The carrying value of trade and other receivables represent the Group's maximum exposure to credit
risk at the balance sheet date.
Liquidity risk
Liquidity risk is the risk that the Group is unable to meet its financial obligations when they mature,
resulting in default.
The Group considers its liquidity risk to be limited, and has sufficient liquidity available on bank
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 permitted
to raise external financing independently.
The Group has financial debt covenants related to the senior unsecured bonds. Refer to note 18 for
information about the bond convenants.
Capital management
The Group focuses on maintaining sufficient cash resources to ensure the ability to finance further
activities.
31 December 2022
(amounts in NOK 1000) NOK/EUR impact NOK/CHF impact NOK/SEK impact
Trade receivables 68,171 25,619 16,623
Trade payables 58,596 15,822 6,155
Borrowings 389,011 - -
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Note 21 Trade and other payables
(Amounts in NOK 1000)
Trade and other payables 2022 2021
Trade payables 698,333 579,542
Public duties 36,225 74,227
Accrued vacation pay 53,193 55,259
Accrued expenses 543,335 353,590
Total trade and other payables 1,331,086 1,062,618
Trade payables is comprised of amounts outstanding for trade purchases. Accrued expenses are
representative of accrued cost of goods sold for which a final invoice has not been received.
Trade and other payables are due within three months.
Note 22 Income tax
(Amounts in NOK 1000)
Specification of income tax expense
The tax benefit/(expense) is calculated based on profit before income tax and consists of current tax
and deferred tax.
2022 2021
Deferred tax expense (income) -35,542 -44,583
Current tax expense 31,219 74,474
Income tax expense (income) -4,323 29,891
Income tax payable (balance sheet) 2022 2021
Income tax payable 2,578 29,627
Current tax liabilities (balance sheet) 2,578 29,627
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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:
2022 2021
Profit/(loss) before income tax -155,429 -47,670
Statutory income tax rate* 22% 22%
Expected income tax expense/(benefit) -34,194 -10,487
Tax effect on non-taxable income/expenses -21,916 -5,566
Tax effect non deductible expenses 62,029 46,073
Prior year adjustment -8,230 5,839
Effect of changes in tax rules and rates 4,458 -1,652
Non deductible interest, interest cap rules - 14,135
Change in deferred tax asset not recognized -6,470 -18,450
Income tax expense/income (-) for the year -4,323 29,891
Effective tax rate 3% -63%
* The statutory income tax rate based on the currently enacted tax rate in Norway.
Specification 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
2022 2021
Unused tax loss carry forward 76,039 -
Interest cap 361,459 365,406
Potential tax benefit unused tax losses, 22% 16,728 -
Potential tax benefit interest cap, 22 % 79,521 80,389
The unused tax loss carry forward balances are related to Netsize S.A. For this company the benefit from the
unused tax losses is uncertain.
Interest cap is related to LINK Mobility Group Holding ASA and to LINK Mobility Group AS. The benefit from the
interest cap carried forward is uncertain and the amount can be carried forward for 10 years.
Unrecognised temporary differences
2022 2021
Temporary differences for which deferred tax liabilities have not been recognised -
-
Unrecognised tax liabilities relating to the above temporary differences, 22 % -
-
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Tax effect of temporary differences and tax losses carried forward as of 31 December
Deferred tax assets: 2022 2021
Tangible and intangible assets 12,096 6,569
Interest - -
Other non-current items 7,787 9,434
Total tax effect of temporary differences 19,884 16,003
Deferred tax asset arising from tax losses carried forward 113,262 126,941
Deferred tax assets 133,145 142,944
Deferred tax liabilities: 2022 2021
Intangible assets (mainly due to PPA business combinations) 498,624 528,555
Other 34,440 28,406
Deferred tax liabilities 533,064 556,961
Note 23 Contingencies and legal claims
As at 31 December 2022 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 or otherwise) accounted for
in the financial statements or disclosed elsewhere in the notes to the financial statements. Claims
for which Group entities are defendants are deemed to be low 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:
Entity Counterparty Claim Position
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
Teracomm RO SRL Customer € 460,000 Defendant
LINK Mobility Spain S.L.U. Supplier € 275,000 Defendant
LINK Mobility Spain S.L.U. Supplier € 378,000 Defendant
LINK Mobility Poland Sp. z.o.o. Customer € 1,700 Defendant
LINK Mobility Austria GmbH Private Person € 386,660 Plaintiff
LINK Mobility Austria GmbH Private Person € 160,000 Plaintiff
LINK Mobility EAD Customer € 5,545 Plaintiff
LINK Mobility EAD Customer € 112,000 Plaintiff
LINK Mobility EAD Customer € 4,745 Plaintiff
LINK Mobility GmbH Supplier € 1,000,000 Plaintiff
Note 24 Events after the reporting date
As at the date of this report, there are no events after the reporting date.
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Alternate performance measures ("APM's")
The financial information in this report is prepared under International Financial Reporting Standards
(IFRS), as adopted by the EU. To enhance the understanding of LINK’s performance, the Group presents
several alternative performance measures (“APM’s”). An APM is defined by the European Securities
and Markets Authority (ESMA) guidelines as a financial measure of historical or future financial
performance, financial position, or cash flows, other than a financial measure defined or specified in
the applicable financial reporting framework (IFRS).
Below, LINK presents certain APMs, including gross profit, gross margin, EBITDA, adjusted EBITDA,
and adjusted EBITDA margin. APMs such as EBITDA are commonly reported by 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 and amortization, which can vary
significantly, depending upon accounting methods (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."
Adjusted EBITDA margin
Adjusted EBITDA margin is presented as adjusted EBITDA as a percentage of total operating revenues
in the respective periods.
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.
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See below for a reconciliation of EBITDA to Adjusted EBITDA, and adjusted EBITDA margin.
NOK ‘000 YTD 2022 YTD 2021
Operating profit (loss), (“EBIT”) -118,320 -33,189
Add: Depreciation intangible assets 595,952 337,706
EBITDA 477,632 304,517
Add: Restructuring costs 71,937 26,815
Add: Share-based compensation 43,631 149,457
Add: Expenses related to acquisitions 32,021 75,870
Adjusted EBITDA 625,221 556,659
Operating revenues 5,190,049 4,410,136
Adjusted EBITDA 625,221 556,659
Adjusted EBITDA margin 12.0 % 12.6 %
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 liabilities such as bond loan, other debt from financial institutions and current and non-
current lease liabilities less cash and cash equivalents. Sellers credits, holdback and earn-outs are
excluded to the extent they are not interest-bearing.
Net debt/LTM adjusted EBITDA
LINK measures leverage ratio as Net debt/Last Twelve Months Adjusted EBITDA. The measure
provides useful information about the financial position. Due to the significant M&A activity LINK uses
the 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 2022 YTD 2021
Bond loan* 3,737,777 3,695,856
Other long-term -
IFRS 16 liabilities 48,599 61,946
Seller’s credit (interest bearing) - 66,698
Less cash -826,851 -843,618
Net debt 2,959,525 2,980,882
LTM adjusted EBITDA (proforma) 638,488 619,304
Net debt/LTM adjusted EBITDA 4.6 4.8
* The bond loan presented here is converted to NOK using the average of the monthly average currency
exchange rates for the last twelve months.
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Income Statement
For the period ended 31 December
(Amounts in NOK 1000)
Note 2022 2021
Other operating expenses 6 -5,106 -5,727
Total operating expenses -5,106 -5,727
Operating loss -5,106 -5,727
Finance income and finance expenses
Net currency exchange gains (losses) 44,385 168,532
Net interest expense -24,943 -35,837
Net other financial income (expenses) -16,138 1,331,915
Total finance income 7 3,304 1,464,610
Profit before income tax -1,802 1,458,883
Income tax 14 -1,143 -5,017
Profit for the period -2,945 1,453,866
The accompanying notes are an integral part of these financial statements.
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Statement of financial position
(Amounts in NOK 1000)
ASSETS Note 31 December 2022 31 December 2021
Investment in LINK Mobility Group AS 5 8,026,174 7,978,341
Long-term receivables - intercompany 7 3,181,121 2,914,375
Total non-current assets 11,207,295 10,892,716
Cash and cash equivalents 8, 10 14,794 139,684
Total current assets 14,794 139,684
TOTAL ASSETS 11,222,089 11,032,400
EQUITY AND LIABILITIES
Share capital 1,479 1,471
Share premium and other reserves 5,880,630 5,826,515
Retained earnings (accumulated losses) 1,479,622 1,482,567
Total equity 9 7,361,731 7,310,554
Liabilities
Long-term borrowings 11 3,837,096 3,698,186
Deferred tax 14 16,948 15,806
Loans and borrowings - intercompany 425 464
Total non-current liabilities 3,854,470 3,714,456
Short-term borrowings 10, 11 5,470 6,980
Trade payables and other payables 10, 13 418 410
Current tax liabilities 14 - -
Total current liabilities 5,888 7,390
Total liabilities 3,860,358 3,721,846
TOTAL EQUITY AND LIABILITIES 11,222,089 11,032,400
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)
2022 2021
Profit (loss) for the period -2,945 1,453,866
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 -2,945 1,453,866
Statement of financial position
Oslo, 27 April 2023
The Board of Directors at LINK Mobility Group Holding ASA
Andre Alexander Christensen
Chairman of the board
Sabrina Emma Gosman
Board member
Thomas Martin Berge
Chief Executive Officer
Sara Katarina Murby Forste
Board member
Jens Rugseth
Board member
Robert Joseph Nicewicz Jr
Board member
Grethe Helene Viksaas
Board member
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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
equity
Balance at 01 January 2021 1,355 4,906,672 28,701 4,936,728
Profit for the period - - 1,453,866 1,453,866
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
Balance at 01 January 2022 1,471 5,826,515 1,482,567 7,310,554
Profit for the year - - -2,945 -2,945
Other comprehensive income (loss) for
the year, net of income tax
- - - -
Total comprehensive income for the year - - -2,945 -2,945
Issue of ordinary shares 8 6,282 - 6,289
Share based payment - 47,833 - 47,833
Balance at 31 December 2022 9 1,479 5,880,630 1,479,622 7,361,731
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 2022
(Amounts in NOK 1000)
Note 2022 2021
Cash flows from operating activities
Profit before income tax -1,802 1,458,883
Adjustments for:
Finance income (expense) -3,304 -123,384
Change in trade and other payables 10, 13 8 -7,283
Change in other provisions 262 -125
Net cash flows from operating activities -4,836 1,328,091
Cash flows from investing activities
Net cash outflow, capital increase subsidiary 5 - -944,660
Net cash inflow (outflow), loan to subsidiaries 59,390 -2,717,473
Net cash flows from investing activities 59,390 -3,662,133
Cash flows from financing activities
Proceeds on issue of shares 9 6,289 785,455
Repayment of equity - -
Proceeds from borrowings - 1,670,117
Repayment of borrowings -70,501 -
Interest paid -133,960 -94,781
Net cash flows from financing activities -198,172 2,360,791
Net change in bank deposits, cash and equivalents -143,618 26,749
Effect of foreign exchange rate changes 18,728 -9,299
Cash and equivalents at beginning of period 139,684 122,234
Cash and equivalents at end of the period 14,794 139,684
The accompanying notes are an integral part of these financial statements.
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Notes to the financial statements for the period ended
31 December 2022
1 General information
2 Adoption of new and revised International Financial Reporting Standards (IFRSs)
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 2022 is listed below.
Name of entity Date of acquisition Place of business / country of
registration
Ownership interest
LINK Mobility Group AS 12/6/2021 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 2022. The requirements arising from revised
IFRSs or IFRIC interpretations are embedded in the recognition, measurement and disclosures relevant
to the consolidated financial statements of the Group from the date of establishment. The accounting
policies adopted are described in Note 3 Summary of significant accounting policies.
Standards and interpretations affecting amounts reported in the current period
The accounting policies adopted, and methods of computation followed are consistent with those of
the previous financial year, except for items disclosed below. The adoption of the following standards
and interpretations has not had any material impact on the disclosures or on the amounts reported in
these financial statements:
• Amendment to IFRS 16 to clarify how a seller-lessee subsequently measures sale and leaseback
transactions
• Amendments to IAS 8 regarding the definition of accounting estimates
• Amendments to IAS 12 regarding defferred tax on leases and decommissioning obligations
As at the date of authorisation of these financial statements, Standards and Interpretations had been
issued by the IASB but were not effective for the financial year ended 31 December 2022. At the date
of these financial statements, it is not foreseable that these changes will not have a material impact on
the financial reporting for the Group.
New or amended standards that have effective date on 01 January 2024 or later have not been
assessed if these will have any impact on LINK Mobility Groups financial statements in the period of
initial application. Management will continue to follow the development of changes to Standards and
Interpretations issued by the IASB throughout 2023.
Note 3 Summary of significant accounting policies
3.1 General information
LINK Mobility Group Holding ASA ("the Company") is a limited liability Company incorporated and
domiciled in Norway. The address of the registered office is Universitetsgata 2, 0164 Oslo, 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”.
These financial statements were approved for issue by the Board of Directors on date 28 April 2023.
Minor rounding differences may be present, and the total may deviate from the total of the individual
amounts. This is due to the rounding of whole figures to thousands for presentation purposes.
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3.2 Basis for preparation
The financial statements of the Company have been prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and
adopted by the European Union. The financial statements have been prepared on the historical cost
basis.
The preparation of financial statements in conformity with IFRSs requires the use of certain 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, and areas in which
assumptions and estimates are significant to the financial statements are disclosed in Note 4 Critical
accounting judgements and key sources of estimation variances. The financial statements have been
prepared on a going-concern basis.
The presentation currency of the financial statement is Norwegian kroner (NOK). Amounts are rounded
to nearest thousand, unless otherwise stated.
3.3 Principles of consolidation
The consolidated financial statements incorporate the financial statements of the Company 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 financial statements of the subsidiaries are prepared for the same reporting periods as 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 transferred
and all the identifiable assets and liabilities of acquired entities are, with limited 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 amount of any
non-controlling interest in the investee over the net amounts of the identifiable assets acquired and
the liabilities assumed. If, after reassessment, the Group’s interest in the net fair value of the investee’s
identifiable assets, liabilities and contingent liabilities exceeds 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 of cash generating units) that is expected to
benefit from the synergies of the combination. A cash-generating unit is the smallest identifiable group
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of assets that generate cash inflows that are largely independent of the cash inflows from other assets
or group of assets. If the recoverable amount of the cash-generating unit is less than its carrying
amount, the impairment loss is allocated first to reduce the carrying amount of each asset in the unit.
Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised
for 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 period adjustments depends on how the contingent
consideration is classified. Contingent consideration that is classified as equity is not remeasured
at subsequent reporting dates and 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 profit or loss.
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 measurement period
(see above), or additional assets or liabilities are recognised, to reflect new 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 classification
An asset is classified as current when it is expected to be realised, or is intended for sale or consumption,
in the Company’s normal operating cycle, it is expected/due to be realised or settled within next twelve
month after the reporting date. Other assets are classified as non-current. A liability is classified as
current when it is expected to be settled in the Company’s 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 for at least twelve months after the reporting
period. All other liabilities are classified as non-current.
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 evaluates
whether it has an obligation to provide the specified service itself (i.e. the Company is 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.
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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 to fulfilling a specified
contract with a customer are regarded as a contract fulfilment cost and 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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3.7 Foreign currency translation
The consolidated financial statements are presented in NOK, which is theCompany’s functional
currency. In preparing the financial statements of the individual companies, transactions in 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 are
presented in the income statement as financial items. All other foreign exchange gains 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.
For the purposes of presenting consolidated financial statements, the assets and liabilities of 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 the period, unless
exchange rates fluctuate significantly during that period, in which case the 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 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 reclassified to 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 Company losing control over the subsidiary, the proportionate share of accumulated
exchange differences is re-attributed to non-controlling interests and are not recognised in profit or
loss.
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
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impaired. Goodwill is allocated to each of the Company’s cash-generating units (or groups of cash-
generating units) expected to benefit from the synergies of the combination. If the recoverable amount
of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated
first to reduce the carrying amount of any goodwill allocated 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. Intangible assets with indefinite useful lives are carried at
cost less accumulated impairment losses.
Separately acquired intangible assets
Intangible assets with finite useful lives such as Technology, that are acquired separately 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 Company’s
technical platforms and products is recognised if, and only if, all the following conditions have been
demonstrated:
• the technical feasibility of completing the intangible asset so that it will be available for use or sale;
• the intention to complete the intangible asset and use or sell it;
• the ability to use or sell the intangible asset;
• how the intangible asset will generate probable future economic benefits;
• the availability of adequate technical, financial and other resources to complete the development
and to use or sell the intangible asset; and
• 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 expenditure
incurred from the date when the intangible asset first meets the recognition criteria listed above. Where
no internally generated intangible asset can be recognised, development expenditures are expensed
as incurred.
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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 fixtures
Equipment and fixtures are initially recognised at cost, which includes the purchase price (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 intended manner. Equipment
and fixtures are subsequently recognised at cost less accumulated 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. The
straight-line depreciation method is used as this best reflects the consumption of the 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 are
derecognised and any remaining net carrying amount is recognised in operating profit (loss) as loss
on disposal.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. The gain or loss arising on the
disposal or retirement of an item of equipment and fixtures is determined as the 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-financial 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 (if any). Where the
asset does not generate cash flows that are independent from other assets, the Company estimates
the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable
and consistent basis of allocation can be identified, corporate 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 basis can be identified.
Goodwill and intangible assets with an indefinite useful life are tested for impairment at least 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 assessing value
in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not 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.
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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 prior years. A reversal of an impairment loss
is recognised immediately in profit or loss, unless 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 modified
retrospective approach. 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 use of an identified asset for a period of time in exchange for consideration. 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 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.
3.13 Financial Instruments
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
The Company has classified the financial instruments into the following categories of financial assets
and liabilities: Financial assets and liabilities at fair value through profit and loss (FVTPL), financial
assets at amortised cost (FAAC), financial assets at fair value through other comprehensive income
(FVTOCI) and Financial liability at cost (FLAC). Currently the Company does not have any assets in the
classification of FVTOCI.
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The categorisation of financial instruments (financial assets and liabilities) for measurement
purposes is based on the nature and purpose of the financial instrument and is determined on initial
recognition. The Company presents financial assets and liabilities in the following classes: 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 financial assets
The financial assets held by the Company, primarily trade and other receivables, are held within a
business model whose objective is to hold financial assets in order to collect contractual cash flows
and are thus measured subsequently at amortised cost less loss allowances. The impairment model in
IFRS 9 Financial Instruments requires the recognition of impairment provisions based on expected credit
losses (ECL). The Company recognises an allowance for expected credit losses on trade receivables.
The amount of expected credit losses is updated at each reporting date to reflect changes in credit
risk since initial recognition. The impairment is calculated by taking into account the historic evidence
of the level of credit losses experienced and the ageing profile of the trade receivables. Individual trade
receivables are impaired when 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-interest-
bearing financial liabilities. Borrowings (non-current and current) include bank loans and overdrafts.
These liabilities are initially recognised in the statement of financial position at fair value (net of any
transaction costs), and subsequently measured at amortised cost using the effective interest rate
method.
The effective interest method calculates the amortised cost of a financial liability and the 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 or discounts, through the expected life
of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial
liability.
The Company derecognises financial liabilities when, and only when, the Company’s obligations are
discharged, cancelled, or have expired. The difference between the carrying amount of the financial
liability derecognised, and the consideration paid and payable is recognised in profit or loss.
3.14 Cash flow
The Company presents the statement of cash flows using the indirect method. Cash inflows and
outflows are shown separately for investing and financing activities, while operating activities 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 financing activities. Value
Added Tax and other similar taxes are regarded as collection of tax on behalf of authorities.
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3.15 Employee benefits
The Company operates a defined contribution plan (DCP) for post-retirement benefits. A defined
contribution plan is a pension plan under which the Company pays fixed contributions to a separate
entity (insurance company). The Company has no legal or constructive obligations to pay further
contributions to the pension plan for benefits relating to employee service in the current and prior
periods. Payments to defined contribution retirement benefit plans are recognised as an 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 temporary
differences between the carrying amount of assets and liabilities for financial 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 profits, nor for differences relating to investments
in subsidiaries to the extent that it is probable 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 tax asset is recognised only to
the extent that it is probable that the future taxable profits will be 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 to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be realised.
Tax positions are regularly reviewed to identify situations where it is not probable that the relevant tax
authorities will accept the treatment used in the tax filings. Uncertain tax positions are considered
independently or as a group, depending on which approach better predicts re resolution of uncertainty.
If the Company concludes that it is not probable that the taxation authority will accept an uncertain
tax treatment, the effect of uncertainty is reflected when 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
Company 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.
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Current tax payable is based on taxable profit for the year. Taxable profit differs from profit 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 Company’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
considered probable that there will be a future outflow of funds to a tax authority. The provisions 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 of assets
and liabilities in the consolidated financial statements and the corresponding tax bases used in the
computation of taxable profit and is accounted for using the liability method. 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 that it is probable that taxable profits
will be available against which deductible temporary differences can be utilized. The carrying amount
of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
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.
Current and deferred tax are recognised in profit or loss, except when they relate to items that 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 Company’s accounting policies, as described in note 3 (summary of significant
accounting policies), management is required to make judgments, estimates and 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.
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Investment in subsidiaries
Subsidiaries are valued at cost. If actual value is below cost value and this continues over time, the
investment in subsidiaries will be impaired. Dividends, group contributions and other distributions
from subsidiaries are recognized in the same year as they are recognized in the financial statement of
the provider. If dividends or group contribution exceed withheld profits after the acquisition date, the
excess amount represents repayment of invested capital, and is recognized as a reduction in carrying
value of the investment.
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 of business. Where the final 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 Company acquires subsidiaries where the preliminary purchase price is based on an
assumption that the acquired company will achieve a target EBITDA for the current financial year.
The final purchase price is subject to an upwards or downwards earn-out adjustment based on the
company’s actual achieved EBITDA. The earn-out adjustment is accounted for in the income statement
as finance income or expense.
Note 5 Investment in subsidiaries
On 06 December 2021, LINK Mobility Pecunia AS was officially merged with LINK Mobility 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 2022:
(Amounts in NOK 1 000) LINK Mobility Group AS
Total amoritzed cost (01.01) 7,978,341
Employee share options in subsidiary 47,833
Total amoritzed cost (31.12) 8,026,174
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Note 6 Other operating expenses
(Amounts in NOK 1000)
2022 2021
Advisors and consultants 952 2,557
Stock exchange listing expenses
1
2,590 2,560
Insurance premiums
2
1,422 288
Other expenses
3
143 322
Total other operating expenses 5,106 5,727
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
Insurance premiums includes the cost of insurance brokerage services in addition to insurance policy covers.
3
Other expenses are representative of license fees, insurance related to merger and acquisition activities, and
external accounting services.
Auditor’s fees
The table below summarises audit fees for 2022 (2021) and fees for audit related services, tax services and
other services incurred by the Company during the period.
2022 2021
Audit fee 710 375
Other attestation services - -
Tax consulting services - -
Other services* - -
Total fee to auditor 710 375
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Net financial income and expenses 2022 2021
Net currency exchange gains (losses)
1
44,385 168,532
Net interest expense -24,943 -35,837
Net other financial expense -16,138 1,331,915
Total finance income 3,304 1,464,610
Net interest expense 2022 2021
Interest expense financial institutions -128,466 -100,724
Interest expense - seller’s credit -1,944 -1,876
Other interest income (expense) 467 -1,037
Interest income from related parties 105,000 67,800
Total net interest expense -24,943 -35,837
Net other financial expenses 2022 2021
Amortized loan set-up costs -16,180 -9,186
Dividend from related parties
2
- 1,341,726
Earn-out payment from M&A transactions - -
Other financial (expenses) income 42 -625
Total net other financial expenses -16,138 1,331,915
Note 7 Net finance income and expenses
(Amounts in NOK 1000)
The Group's finance income and expense is comprised of gains (losses) from foreign exchange and
from exposure to interest expenses related to loans from financial institutions. Interest amounts are
presented as a sum of interest on borrowings offset by amortised cost recognised in the profit and loss.
All categories of financial income and expense are presented on a net basis.
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 2021, 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.
Long-term receivables are also comprised of loans established and related to previous acquisitions. This
includes the purchase of Message Broadcast LLC (USA) and Altiria TIC Sociedad Limitada (Spain).
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Note 8 Cash and cash equivalents
(Amounts in NOK 1000)
2022 2021
Cash and cash equivalents 14,794 139,684
Total cash and cash equivalents 14,794 139,684
Restricted cash 2022 2021
Restricted cash - -
Bank balance in escrow account - -
Total cash and cash equivalents 14,794 139,684
If applicable, cash and cash equivalents include amounts classified as restricted cash. There are no restricted
amounts as at 31 December 2022.
Note 9 Share capital and shareholder information
Share capital as at 31 December 2022 is KNOK 1 479 (2021: KNOK 1 471), being 295 890 306 ordinary shares
(2021: 294 252 254 ordinary shares) at a nominal value of NOK 0.005/share (2021: NOK 0.005/share). There are
no preference shares in FY2022 (FY2021: 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:
2022 2021
Ordinary shares opening balance 2021/2020 294,252,254 270,911,039
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
Issue of ordinary shares (07 July 2022) 588,127
Issue of ordinary shares (14 November 2022) 929,457
Issue of ordinary shares (24 November 2022) 120,468
Ordinary shares at the end of the period 295,890,306 294,252,254
Total number of shares at the end of the period 295,890,306 294,252,254
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LINK Mobility Group Holding ASA has the following major shareholders as at 31 December 2022:
Name of shareholder Type of account Ownership interest
Citibank, N.A. Nominee 31.65%
State Street Bank and Trust Comp Nominee 7.68%
KARBON INVEST AS Ordinary 5.39%
Citibank, N.A. Nominee 4.53%
FOLKETRYGDFONDET Ordinary 4.28%
The Bank of New York Mellon SA/NV Nominee 3.34%
Danske Bank A/S Nominee 3.23%
FERD AS Ordinary 2.49%
SKANDINAVISKA ENSKILDA BANKEN AB Ordinary 1.78%
The Bank of New York Mellon Nominee 1.44%
VERDIPAPIRFONDET FIRST GENERATOR Ordinary 1.32%
Saxo Bank A/S Nominee 1.31%
NORDEA BANK ABP Broker 1.20%
BARCLAYS CAPITAL SEC. LTD FIRM Ordinary 1.17%
DEFA ENDEAVOUR AS Ordinary 1.16%
Citibank, N.A. Nominee 1.13%
J.P. Morgan SE Nominee 1.09%
The Bank of New York Mellon SA/NV Nominee 0.85%
VERDIPAPIRFONDET DELPHI NORDIC Ordinary 0.85%
The Bank of New York Mellon SA/NV Nominee 0.84%
76.74%
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 1 Board member)
93,612,321
Karbon Invest AS (controlled by Jens Rugseth) 15,945,105
Sundahl Aps (controlled by Consultant GLT - Søren Sundahl) 9,586,565
Rugz AS (controlled by Jens Rugseth) 500,000
Thomas Berge 331,122
Ina Rasmussen 51,213
Benoit Bole 50,000
Hendrik Faasch 47,719
Lin Ackema 29,460
Morten Løken Edvardsen 6,595
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
2022 Amortised cost Total
Current financial assets
Cash and cash equivalents 14,794 14,794
Non-current financial liabilities
Borrowings 3,837,096 3,837,096
Current liabilities
Borrowings 5,470 5,470
Trade payables 378 378
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 2022.
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 2022 2021
Bond loan 3,837,096 3,629,772
Holdback - 66,538
Total 3,837,096 3,696,310
Current liabilities 2022 2021
Bond loan* 5,470 6,980
Total 5,470 6,980
*Instalments falling due within a 12 month period, including non-capitalised interest, are classified as current.
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Contractual maturities of financial liabilities
at 31 December 2022 < 3 months
3 months
- 1 year
1 - 2
years 2 - 5 years Total
Bond loan (tap issue 15.12.2020) - 70,968 70,968 2,173,728 2,315,664
Bond loan (tap issue 23.06.2021) - 60,323 60,323 1,847,669 1,968,315
Total - 131,291 131,291 4,021,397 4,283,979
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
The book value of borrowings is estimated to approximate their fair value.
2022 2021
Principal amount (tap issue 15.12.2020) 2,102,883 1,998,768
Principal amount (tap issue 23.06.2021) 1,786,041 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 -56,127
Amortization (tap issue 15.12.2020) 8,215 4,118
Amortization (tap issue 23.06.2021) 17,313 5,231
Accrued interest and fees 5,470 6,980
Carrying amount 3,842,567 3,636,753
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 unsecured
3.375% fixed rate bond issue, raising the total outstanding amount to EUR 370 million. The bonds were
issued at par.
The bonds have a 5-year tenor and a fixed coupon of 3.375% p.a.; any outstanding bonds are to be
repaid in full at the maturity date.
LINK Mobility Group Holding ASA
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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 financial risks;
• Interest rate risk
• Foreign exchange risk
• Credit risk
• 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 unsecured
3.375% fixed rate bond issue, raising the total outstanding amount to EUR 370 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-derivative
instruments at the reporting date. For floating rate liabilities, the analysis is prepared 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, the
Company’s profit (and corresponding equity) for the period ended 31 December 2022 would decrease/
increase by KNOK 38 901 (FY2021 KNOK 36 959). 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 currencies; as
a consequence, exposure to fluctuations in exchange rates is limited. Foreign exchange risk arises from
transactions related to operations conducted, and assets and liabilities arising in foreign currencies.
31 December 2022
(amounts in NOK 1000) NOK/EUR impact NOK/SEK impact NOK/CHF impact
Borrowings 38,901 - -
Credit Risk
The Company is a holding company and owns all shares in LINK Mobility Group AS; credit risk is
deemed to be low.
LINK Mobility Group Holding ASA
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Annual Report 2022 | Financial statements 2022
Liquidity risk
Liquidity risk is the risk that the Company is unable to meet its financial obligations when they mature,
resulting in default.
The Company considers its liquidity risk to be limited, and has sufficient liquidity available on bank
accounts as of year-end. Obligations are covered by transfer of cash from subisidiaries.
The Company has financial debt covenants related to the senior unsecured bonds. Refer to note 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 2022 2021
Trade payables 378 289
VAT payable 40 25
Other accruals - 96
Total trade and other payables 418 410
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.
Trade and other payables are due within three months.
LINK Mobility Group Holding ASA
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Annual Report 2022 | Financial statements 2022
Note 14 Income tax
(Amounts in NOK 1000)
Specification of income tax expense
The tax benefit/(expense) is calculated based on profit before income tax and consists of current tax and
deferred tax.
2022 2021
Deferred tax expense (income) 1,143 5,017
Current tax expense - -
Income tax (income) 1,143 5,017
Income tax payable (balance sheet) 2022 2021
Income tax payable - -
Current tax liabilities (balance sheet) - -
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:
2022 2021
Profit/(loss) before income tax -1,802 1,458,883
Statutory income tax rate* 22% 22%
Expected income tax benefit -396 320,954
Tax effect on non-taxable income/expenses -312,583
Effect of changes in tax rules and rates* -
Prior year adjustment -725
Non deductible interest, interest cap rules 1,539 14,864
Current tax expense, interest cap rules -
Change in deferred tax asset not recognized -17,493
Income tax expense/income (-) for the year 1,143 5,017
Effective tax rate -63% 0%
* The statutory income tax rate based on the currently enacted tax rate in Norway.
Specification of the tax effect of temporary differences and losses carried forward
Tax losses carried forward
2022 2021
Unused tax loss carry forward - -
Interest cap 69,441 69,441
Potential tax benefit unused tax losses @ 22 % - -
Potential tax benefit interest cap @ 22 % 15,277 15,277
LINK Mobility Group Holding ASA
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Annual Report 2022 | Financial statements 2022
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 carried forward indefintiely.
The benefit from the interest cap carried forward is uncertain and the tax asset is not 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: 2022 2021
Long term receivables and debt in foreign currency 41,415 35,031
Other provisions 3,553 4,898
Tax loss to carry forward (-) -28,019 -24,124
Deferred tax liabilities 16,948 15,806
Unrecognised temporary differences
2022 2021
Temporary differences for which deferred tax liabilities have not been
recognised
- -
Unrecognised tax liabilities relating to the above temporary differences @ 22 % - -
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 the date
these financial statements are approved, that would lead to the recognition of a liability 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.
PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
To the General Meeting of LINK Mobility Group Holding ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of LINK Mobility Group Holding ASA, which comprise:
● the financial statements of the parent company LINK Mobility Group Holding ASA (the
Company), which comprise the statement of financial position as at 31 December 2022, the
income statement, statement of comprehensive income, statement of changes in equity and
statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies, and
● the consolidated financial statements of LINK Mobility Group Holding ASA and its subsidiaries
(the Group), which comprise the statement of financial position as at 31 December 2022, the
income statement, statement of comprehensive income, statement of changes in equity and
statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies.
In our opinion
● the financial statements comply with applicable statutory requirements,
● the financial statements give a true and fair view of the financial position of the Company as at
31 December 2022, and its financial performance and its cash flows for the year then ended in
accordance with International Financial Reporting Standards as adopted by the EU, and
● the consolidated financial statements give a true and fair view of the financial position of the
Group as at 31 December 2022, and its financial performance and its cash flows for the year
then ended in accordance with International Financial Reporting Standards as adopted by the
EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company and the
Group as required by relevant laws and regulations in Norway and the International Ethics Standards
Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 4 years from the election by the general meeting of the
shareholders on 17 September 2019 for the accounting year 2019.
2 / 5
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters. The Company’s and the Group’s business
activities have remained largely unchanged during 2022. Impairment of Goodwill has approximately
the same risks and characteristics as last year and continues to be in our focus.
Key Audit Matters
How our audit addressed the Key Audit Matter
Impairment of Goodwill
At the balance sheet date, the net book value
of goodwill was NOK
5 788 277 thousand,
distributed between different cash generating
units (CGU’s). The values involved are
significant and constitute a major part of total
assets in the balance sheet.
An impairment
charge
of NOK 180 360 thousand was
recognized
in 2022.
Manag
ement performs an impairment test at
least annually by estimating the recoverable
amount of goodwill. Determination of the
recoverable amount requires application of
significant judgment by management, in
particular with respect to cash flow forecasts
and
the applied discount rate.
We focused on impairment of goodwill due to
the pervasive effect of goodwill in the balance
sheet and management's use of judgment in
estimating the recoverable amount.
See note 13 in the consolidated financial
statement for furt
her explanation of
management's use of judgment and
impairment review.
We obtained an understanding of management’s process
related to impairment review of goodwill. We also
obtained management’s impairment review and satisfied
ourselves that the impairment review and the valuation
model used, contained the elements and methodology
required by IFRS. We also tested the impairment model
for mathematical accuracy by recalculating the
recoverable amount.
We challenged management’s assumptions on future
revenues and margins by comparing them to historical
financial data and future budgets approved by
management. Further, we assessed the accuracy of
management’s budgets and forecasts in prior years, by
comparing them to actual results.
We evaluated the discount rate used by management by
reviewing the elements in the calculation of the discount
rate against both internal and external information.
We found management's impairment assessment
reasonable and noted no deviations that would
significantly impact the conclusions of the impairment
assessment.
Finally, we considered the adequacy of Financial
Statements disclosure in note 13 and found them
appropriate.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information
in the Board of Directors’ report and the other information accompanying the financial statements. The
other information comprises information in the annual report, but does not include the financial
statements and our auditor’s report thereon. Our opinion on the financial statements does not cover
the information in the Board of Directors’ report nor the other information accompanying the financial
statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of
Directors’ report and the other information accompanying the financial statements. The purpose is to
consider if there is material inconsistency between the Board of Directors’ report and the other
information accompanying the financial statements and the financial statements or our knowledge
3 / 5
obtained in the audit, or whether the Board of Directors’ report and the other information
accompanying the financial statements otherwise appear to be materially misstated. We are required
to report if there is a material misstatement in the Board of Directors’ report or the other information
accompanying the financial statements. We have nothing to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
● is consistent with the financial statements and
● contains the information required by applicable statutory requirements.
Our opinion on the Board of Director’s report applies correspondingly to the statements on Corporate
Governance and Corporate Social Responsibility.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in
accordance with International Financial Reporting Standards as adopted by the EU, and for such
internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to
liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
● identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error. We design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
● obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's and the Group's internal control.
● evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
● conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
4 / 5
related to events or conditions that may cast significant doubt on the Company's and the
Group's ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company and the Group to cease to
continue as a going concern.
● evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves a true and fair view.
● obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of LINK Mobility Group Holding ASA, we have
performed an assurance engagement to obtain reasonable assurance about whether the financial
statements included in the annual report, with the file name 2549006RH08XJGKC2Y14-2022-12-31-
en, have been prepared, in all material respects, in compliance with the requirements of the
Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF
Regulation) and regulation pursuant to Section 5-5 of the Norwegian Securities Trading Act, which
includes requirements related to the preparation of the annual report in XHTML format, and iXBRL
tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all
material respects, in compliance with the ESEF regulation.
5 / 5
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF
regulation. This responsibility comprises an adequate process and such internal control as
management determines is necessary.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the
ESEF reporting, see: https://revisorforeningen.no/revisjonsberetninger
Oslo, 27 April 2023
PricewaterhouseCoopers AS
Jone Bauge
State Authorised Public Accountant
LINK Mobility Group Holding ASA
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Link Mobility Group Holding ASA Oslo limited liability Company Norway Universitetsgata 2, 0164 Oslo Oslo LINK is Europe’s leading provider of mobile and CPaaS solutions specializing in messaging, digital services and intelligent data usage LINK Mobility Group Holding ASA LINK Mobility Group Holding ASA 2549006RH08XJGKC2Y14 2022-01-01 2022-12-31 2549006RH08XJGKC2Y14 2021-01-01 2021-12-31 2549006RH08XJGKC2Y14 2022-12-31 2549006RH08XJGKC2Y14 2021-12-31 2549006RH08XJGKC2Y14 2020-12-31 ifrs-full:IssuedCapitalMember 2549006RH08XJGKC2Y14 2021-01-01 2021-12-31 ifrs-full:IssuedCapitalMember 2549006RH08XJGKC2Y14 2020-12-31 ifrs-full:IssuedCapitalMember ifrs-full:FinancialEffectOfCorrectionsOfAccountingErrorsMember 2549006RH08XJGKC2Y14 2021-12-31 ifrs-full:IssuedCapitalMember 2549006RH08XJGKC2Y14 2020-12-31 ifrs-full:SharePremiumMember 2549006RH08XJGKC2Y14 2021-01-01 2021-12-31 ifrs-full:SharePremiumMember 2549006RH08XJGKC2Y14 2020-12-31 ifrs-full:SharePremiumMember ifrs-full:FinancialEffectOfCorrectionsOfAccountingErrorsMember 2549006RH08XJGKC2Y14 2021-12-31 ifrs-full:SharePremiumMember 2549006RH08XJGKC2Y14 2020-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2549006RH08XJGKC2Y14 2021-01-01 2021-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2549006RH08XJGKC2Y14 2020-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember ifrs-full:FinancialEffectOfCorrectionsOfAccountingErrorsMember 2549006RH08XJGKC2Y14 2021-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2549006RH08XJGKC2Y14 2020-12-31 ifrs-full:RetainedEarningsMember 2549006RH08XJGKC2Y14 2021-01-01 2021-12-31 ifrs-full:RetainedEarningsMember 2549006RH08XJGKC2Y14 2020-12-31 ifrs-full:RetainedEarningsMember ifrs-full:FinancialEffectOfCorrectionsOfAccountingErrorsMember 2549006RH08XJGKC2Y14 2021-12-31 ifrs-full:RetainedEarningsMember 2549006RH08XJGKC2Y14 2020-12-31 2549006RH08XJGKC2Y14 2020-12-31 ifrs-full:FinancialEffectOfCorrectionsOfAccountingErrorsMember 2549006RH08XJGKC2Y14 2022-01-01 2022-12-31 ifrs-full:IssuedCapitalMember 2549006RH08XJGKC2Y14 2021-12-31 ifrs-full:IssuedCapitalMember ifrs-full:FinancialEffectOfCorrectionsOfAccountingErrorsMember 2549006RH08XJGKC2Y14 2022-12-31 ifrs-full:IssuedCapitalMember 2549006RH08XJGKC2Y14 2022-01-01 2022-12-31 ifrs-full:SharePremiumMember 2549006RH08XJGKC2Y14 2021-12-31 ifrs-full:SharePremiumMember ifrs-full:FinancialEffectOfCorrectionsOfAccountingErrorsMember 2549006RH08XJGKC2Y14 2022-12-31 ifrs-full:SharePremiumMember 2549006RH08XJGKC2Y14 2022-01-01 2022-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2549006RH08XJGKC2Y14 2021-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember ifrs-full:FinancialEffectOfCorrectionsOfAccountingErrorsMember 2549006RH08XJGKC2Y14 2022-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2549006RH08XJGKC2Y14 2022-01-01 2022-12-31 ifrs-full:RetainedEarningsMember 2549006RH08XJGKC2Y14 2021-12-31 ifrs-full:RetainedEarningsMember ifrs-full:FinancialEffectOfCorrectionsOfAccountingErrorsMember 2549006RH08XJGKC2Y14 2022-12-31 ifrs-full:RetainedEarningsMember 2549006RH08XJGKC2Y14 2021-12-31 ifrs-full:FinancialEffectOfCorrectionsOfAccountingErrorsMember iso4217:NOK iso4217:NOK xbrli:shares