===== SIDA 1 ===== ===== SIDA 2 ===== • • • • • • • Group, SEKm (unless otherwise stated) 2023 Jan-Mar 2022 Jan-Mar 2022 Jan-Dec Net sales 387.1 398.3 1,772.9 Gross profit 291.0 311.3 1,355.2 Gross margin (%) 75.2% 78.1% 76.4% Adjusted EBITDA 150.0 181.4 717.2 Adjusted EBITDA margin (%) 38.8% 45.5% 40.5% EBIT (operating profit) 139.8 175.5 688.5 EBIT margin (%) 36.1% 44.0% 38.8% Adjusted EBIT 139.8 175.5 688.5 Adjusted EBIT margin (%) 36.1% 44.0% 38.8% Profit or loss after net financial income or expense 147.0 170.1 688.1 Basic earnings per share (SEK) 0.30 0.36 1.43 Diluted earnings per share (SEK) 0.30 0.35 1.43 Equity 1,738.4 1,566.0 1,804.1 Total assets 2,123.5 1,857.3 2,344.4 Equity to assets ratio (%) 81.9% 84.3% 77.0% Employees at the end of the period 400 321 395 ===== SIDA 3 ===== ● ● ● ● • • • • • • ===== SIDA 4 ===== ===== SIDA 5 ===== The average number of monthly active users increased by 34 million to 344 million in the quarter. We continue to grow the number of users on Android as well as iOS, where growth is strong after the launch of our new iOS app in 2022. During the quarter, we invested in growing our growth engineering team that focuses on user growth, as well as improving the product to be able to continue to build underlying growth in our growth markets. Eighty-one percent of monthly users are active on a daily basis, a new re cord level. To put this in perspective, we have an engagement level on a daily basis that is equivalent to that of other large global services such as WhatsApp and Facebook. Relative user growth was strongest in regions outside India, and in absolute term s growth for the first time in the years 2020 - 2023 was just as high outside India as in India. The stronger growth at the end of the quarter has continued and in April we passed 350 million monthly users, a major milestone for us as a company. The growth h as mainly been achieved through the launch of features that have gone viral, as well as through major improvements in the product that make more users discover the value of the service faster, which in turn leads to higher retention. During the quarter, we continued to deliver a number of major production improvements such as Live Caller ID on iOS as a premium function and improved SMS functions on iOS. Paying iOS users now receive the same quality of information as users on Android, which is a big improvement. Our investments in AI, coupled with feedback from users, continue to bear fruit in the form of improved data quality as well as a number of improvements to functions that are designed to prevent fraud by phone, including an AI-based fraud protection for SMS. The lower demand for digital advertising led to a drop in advertising revenue of 10 percent to SEK 303.9m (339.0) compared to the same quarter in 2022. Prices on the ads market decreased due to generally lower demand, primarily driven by lower investments in large-scale branding campaigns by private equity owned firms and larger companies, which has affected pricing in the market. Seasonally, the first quarter is the weakest quarter in the ads market. This year the pattern was even more evident as revenue related to the Indian Premier League (IPL) for 2023 is recognized entirely in the second quarter, while in 2022 it was partially recognized in the first quarter. In recent quarters, we have made big improvements to our Ad -tech platform to offset the weaker demand. In the first quarter, this enabled us to increase ad impressions by 20 percent compared to last year. This is positive, but more important is that the improvements will generate a significantly higher return once demand regains momentum on a broad basis. This has already proven to be true at the beginning of the Q2 when we on individual days reached all time high for advertising revenue tied to the increased demand in connection with the IPL. Revenue from subscriptions increased by 20 per cent to SEK 46.5m (38.9). Revenue is rising mainly due to better conversion to the subscription offering, which resulted in an 18% increase in the number of subscribers, a higher growth rate than total user growth. The subscription product is growing stead ily and we see great long-term potential. With further investments, and as the willingness to pay for subscriptions rises in our markets, it could in time account for a substantially larger share of our revenue. Truecaller for Business continues to prosper with new products and an increased number of customers. Revenue grew by 87 percent to SEK 34.4m (18.4) and there are now customers in a total of 36 countries. New sales were slightly lower in the quarter as sales processes took somewhat longer time, impacted by the weaker economy. During the quarter, we launched “Verified SMS” to complement “Verified Calling,” which means that companies can now verify their identity with Truecaller to create more secure communication with consumers by voice as well as SM S. Truecaller Business Messaging saw rising popularity in the quarter and volumes were record high. We think this service, which today is done exclusively in a partnership with the CPaaS company Tanla, could eventually become an important part of our busin ess offering, beyond the opportunities we have already created with our calling solutions. Our adjusted EBITDA amounted to SEK 150.0m (181.4) with an adjusted EBITDA margin of 38.8 percent (45.5) and our cash flow from operating acti vities before tax amounted to SEK 126.7m (131.7). When revenue growth slowed in the fourth quarter we increased investments in our server infrastructure to obtain a more scalable and resource-efficient architecture, which in the long term can have a greater effect , and compared to the previous quarter we reduced underlying costs (excluding the major marketing campaigns in the fourth quarter) by approximately 20 percent. The company’s cash position and holdings in short-term interest-bearing securities amounted to SEK 1.6bn at the end of the quarter. Our view that the general advertising market will be weaker in the first half of 2023 remains unchange d, although we noticed positive effects on demand and prices at the beginning of the second quarter, driven by the IPL. The view of major market players and partners we continuously dialogue with is that the second half of the year is generally expected to be somewhat better than the first half, but economic conditions and their impact on the advertising market remain difficult to assess. In summary, we have had a quarter with many product improvements towards the end user, strong profitability despite a weaker macro through continuous improvements in our Ad - tech platform, increased conversion of paying users, and we have scaled up Truecall er for Business on the messaging side, while we have invested in increased efficiency of our server infrastructure. Our focus is still to build a world -class product for our users, grow number of users and the engagement in the product and deliver solid pr ofitability through the entire economic downturn, while at the same time ensuring that we stand even stronger when demand turns higher again and also planning to take advantage of opportunities that can arise during a recession. This combined provides exce llent opportunities for growth once the macroeconomy and demand regain momentum. Alan Mamedi, President and CEO ===== SIDA 6 ===== Group, SEKm (unless otherwise stated) 2023 Jan-Mar 2022 Jan-Mar 2022 Jan-Dec Net sales 387.1 398.3 1,772.9 Gross profit 291.0 311.3 1,355.2 Gross margin (%) 75.2% 78.1% 76.4% Adjusted EBITDA 150.0 181.4 717.2 Adjusted EBITDA margin (%) 38.8% 45.5% 40.5% EBIT (operating profit) 139.8 175.5 688.5 EBIT margin (%) 36.1% 44.0% 38.8% Adjusted EBIT 139.8 175.5 688.5 Adjusted EBIT margin (%) 36.1% 44.0% 38.8% Profit or loss after net financial income or expense 147.0 170.1 688.1 Basic earnings per share (SEK) 0.30 0.36 1.43 Diluted earnings per share (SEK) 0.30 0.35 1.43 Equity 1,738.4 1,566.0 1,804.1 Total assets 2,123.5 1,857.3 2,344.4 Equity to assets ratio (%) 81.9% 84.3% 77.0% Employees at the end of the period 400 321 395 January-March 2023 Total India Middle East & Africa Rest of the world Monthly Active Users (MAU). quarterly average (millions) 344.4 249.3 69.9 25.2 Daily Active Users (DAU). quarterly average (millions) 278.0 208.8 52.3 16.9 Cost per mille impressions (CPM) for ad sales (SEK) 0.94 0.84 1.37 3.15 Average revenue per user (ARPU) for premium subscriptions (SEK) 8.34 4.77 10.95 13.37 January-March 2022 Total India Middle East & Africa Rest of the world Monthly Active Users (MAU). quarterly average (millions) 310.1 227.8 60.1 22.2 Daily Active Users (DAU). quarterly average (millions) 247.7 189.4 44.1 14.2 Cost per mille impressions (CPM) for ad sales (SEK) 1.24 1.13 1.57 3.18 Average revenue per user (ARPU) for premium subscriptions (SEK) 8.05 4.50 10.10 11.83 ===== SIDA 7 ===== 300 310 321 331 338 344 238 248 255 261 271 278 0 50 100 150 200 250 300 350 Q421 Q122 Q222 Q322 Q422 Q123 Användare, milj Monthly active users (MAU) Daily active users (DAU), avg 392 398 480 450 444 387 0 100 200 300 400 500 600 Q421 Q122 Q222 Q322 Q422 Q123 MSEK Net sales 306 311 374 337 333 291 70% 72% 74% 76% 78% 80% 0 50 100 150 200 250 300 350 400 Q421 Q122 Q222 Q322 Q422 Q123 MSEK Gross profit Gross margin 196 181 218 181 136 150 0% 10% 20% 30% 40% 50% 60% 0 50 100 150 200 250 Q421 Q122 Q222 Q322 Q422 Q123 MSEK Adjusted EBITDA Adjusted EBITDA-margin ===== SIDA 8 ===== Net sales during the first quarter decreased by 3 percent compared to the corresponding period last years and amounted to SEK 387.1 (398.3) million. Revenue increased for subscriptions and the business offering, Truecaller for Business (TfB), while advertising revenue decreased. Currency effects had a minor positive effect on revenues during the quarter, see Currency exposure below. One important fact or for Truecaller's revenue development over the longer term is the continued growth in the number of regular users of Truecaller's app. The app is one of the world's most downloaded, and the user base is growing continuously, in many different geographies. Scams and other unwanted calls and messages continue to increase in many countries, as smartphones become the primary communication channel for individuals in their communications with businesses and authorities. This drives a need to be able to communic ate securely and efficiently, which benefits Truecaller. In the markets where a sufficiently large part of the users of smartphones are also users of Truecaller, the company gets a very good accuracy in identifying who contacts the users of the company's app, and thereby good opportunities to prevent fraud and other unwanted communication. This leads to continued organic growth of the user base, a network effect. In markets where the company does not yet have a sufficiently extensive database to be able to offer this accuracy, Truecaller invests in user acquisition through platforms such as Google and Facebook. These user acquisitions contribute to Truecaller's users getting a continuously improved experience of the company's services, and when the experien ce is good enough, organic growth takes off, which is clearly visible in well - established markets such as India. The last year, new smartphone sales declined globally. This have had some impact on the growth in the number of monthly active users (MAU) of Truecaller's app, as many choose to start using the app when they get their first smartphone, or switch to a more modern version. To make it easier for new smartphone users to take advantage of Truecaller's services, the company has signed agreements with a number of smartphone manufacturers to pre-install the company's app on a large number of new phones in several different markets. Over time, these agreements are expected to have positive effects on the growth in the number of users, as well as data quality, but the agreements span several years, and so far only a small percentage of phones with Truecaller pre - installed have reached end users. The rollout is considered to have been delayed due to macroeconomic developments, which reduced sales of new smartphones during the past year. Net sales in India decreased by 1 per cent to SEK 292.2 (296.6) million, in the Middle East & Africa it decreased by 13 percent to SEK 49.2 (56.4) million and in the rest of the world it increased by 1 percent to SEK 45.7 (45.3) million. Ad revenues decreased by 10 percent t o SEK 303.9 (339.0) million. Truecaller continuously optimizes the balance between prices (CPM) and utilization (fill rate) of the company's advertising space. CPM therefore varies between quarters, as a consequence of seasonal and macroeconomic variations in demand in different geographies, th e mix between different types of ads and the mix between direct sales and sales via partners such as Google and Facebook. Compared to the corresponding quarter last year, prices (CPM) decreased by approximately 24 percent. The price reduction is due to lower demand in the wake of weak macroeconomic development. Many companies have become more cautious about marketing investments, and have either postponed these, or have chosen to reduce their digital advertising budgets. This effect has become increasing ly clear even in markets where the underlying macroeconomic development remains good, such as India. The fact that the Indian cricket season (IPL) last year was divided between the first and the second quarter, and this year only takes place during the second quarter, impacted the comparison between the years . This as IPL increases the demand for digital advertising and thereby increases CPM levels. The effects of the weak demand and price trend have been partially counteracted thanks to investments and improvements in Truecaller's advertising platform, which has enabled a greater number of ads to be displayed than was the case before. This means that the company is even stronger than before once the economy turns upwards and demand increases. On the supply side, the continuous user growth also increases our available advertising space. We are also working on continued optimization of the utilization of advertising space, with the aim of increasing both fill rate and prices. On the demand side, we continue to increase our advertiser base, as well as making it easier for advertisers to use our services without intermediaries, which has a positive effect on our profitability while helping us to increase fill rates. Revenue from premium subscriptions increased by 20 percent to SEK 46.5 (38.9) million. This is primarily an effect of more India 75.5% Africa and Middle East 12.7% Rest of the World 11.8% ===== SIDA 9 ===== premium subscribers. The growth in the number of subscriptions and subscription revenue occurs in most regions and for both Android and iOS users. From this quarter Truecaller for Business (TfB) is reported separately, and not as a part of other income. Revenue from TfB amounted to SEK 34.4 (18.4) million. The demand for these services is still very high i n several of our established markets, as many companies need to maintain a secure communication channel to their customers. The number of connected customers continues to show good growth both in India and in other markets, and in total Truecaller for Busi ness now has active customers in 36 countries. During the quarter new sales was somewhat lower , as a consequence of he weaker global macro economy which makes companies more cautious when it comes to signing new business agreements. The services are sold through direct sales, through partners and through a self - service portal . In collaboration with CPAAS company Tanla, Truecaller also sends B2C messages to Truecaller's users. The volumes of business messages have gradually increased. Other income amounted to SEK 1.0 (2.3) million. The gross profit decreased by 7 percent t o SEK 291.0 (311.3) million compared to the same period last year. The gross margin amounted to 75.2 (78.1) percent but has been stable during the last three quarters. The gross margin is partly determined by fees to partners such as Google and Apple, partly by costs for verification of new users and for servers used for the company's services. During the second half of 2022, transparency was improved fro m partners who previously did not specify brokerage costs for advertisements. Truecaller are now receiving information about brokerage costs, which will partly increase revenues somewhat, and partly will be included in the reported costs of goods sold. Thi s has a certain negative impact on the gross margin compared to the comparison period. The fees to partners are proportional to the number of displayed ads and the number of premium users. Truecaller also sells ads directly to end customers, resulting in a higher gross margin. Different advertising partners have different fee levels, and the gross margin is therefore affected by how the advertising traffic is distributed between direct sales and different partners during different periods. Verification costs are proportional to growth in the customer base but are also affected by how local telecom operators price their messaging services. The cost of server hosting is, in the short and medium term, relatively independent of traffic volumes, but rises when these reach new volume bands. The costs both for messaging services used for verification of new users and for servers increased compared to the comparison period, which had a certain negative impact on the gross margin. Operating profit before depreciation and write-downs excluding items affecting comparability (adjusted EBITDA) amounted to SEK 150.0 (181.4) million. The adjusted EBITDA margin amounted to 38.8 (45.5) percent. Operating profit (EBIT) decreased to SEK 139.8 (175.4) million, corresponding to an operating margin of 36.1 (44.0) p ercent. EBIT excluding items affecting comparability (adjusted operat - ing profit) amounted to SEK 1 39.8 (175.4) million with an ad - justed operating margin of 36.1 (44.0) percent. The lower operating profit is largely due to the lower ad related income due to a worsening macro, timing efffects with regards to IPL (the indian cricket league, somewhat lower gross margin and higher costs for incentive programs. The company will closely monitor the demand trend in order to adjust costs during the ongoing macroeconomic slowdown, without renouncing the growth potential when demand picks up again. Costs excluding incentive costs is stable compared to the comparison p eriod and decreased compared to the last three quarters as a result of a number of efficiency improvements during the end of 2022 and the first quarter of 2023. Among other things, the investments in user acquisition have been focused on a smaller number of focus markets where the cost effectiveness is high. Staff costs during the quarter increased to SEK 84.8 (58.7) million. Salary costs increased as an effect of increased number of employees and salary adjustments. The recruitment rate of new staff has decreased significantly during the period as a result of the weaker demand The group's long -term incentive program (LTIP 2021 and LTIP 2022) entailed a salary cost for the period of SEK 10.6 (3.4) million with a corresponding increase in equity and social security contributions of SEK 0.4 (-) million reported as a provision in the balance sheet. Salary costs are valued at fair value and amortized over the term of the program. The social security contributions are affected by the share price at the end of each accounting period and may therefore amount to significantly higher amounts in the future and create volatility in the income statement. In order to clarify the distribution of staff costs between staff costs attributable to salaries, and personnel costs related to performance or share price -related incentive programs, the company will continue to report the latter separately. Excluding costs for incentive programs, the EBITDA margin during the quarter would have increased by 2.9 (0.9) percentage points and been 41.6 (46.4) percent. See more info in note 5. Other external costs decreased to SEK 57.1 (73.4) million compared to the same period last year. The reduction in costs is primarily an effect of investments in user growth and marketing being focused on a smaller number of markets where cost efficiency is high. Profit before tax amounted to SEK 147.0 (170.1) million. Profit after tax for the period was SEK 109.1 (133.7) million. Net financial income amounted to SEK 7.2 (-5.4) million and comprises positive exchange rate differences of SEK 4.5 (0.9) million, interest income of SEK 4.1 (-5.0) million and other financial expenses of SEK -1.3 (-1.3) million. The total tax amounted to SEK 37.9 (36.4) million which corresponds to an effective tax rate of 25.8 (21.4) percent for the group. Basic earnings per share were SEK 0.30 (0.36) and diluted earnings per share were SEK 0.30 (0.35). Net cash from operating activities amounted to SEK 80.1 (121.5) million. Net cash from investing activities amounted to SEK - 519.1 (-29.1) million and included an investment in short term ===== SIDA 10 ===== interest funds of SEK -500.0 (-0.0) million. Net cash used in financing activities was SEK -189.1 (-28.7) million and included purchase of treasury shares SEK -182.2 (-) million. Net cash for the period was SEK -628.1 (63.7) million. Truecaller had cash and cash equivalents of SEK 699.5 (1,302.2) million at the end of the quarter. The equity to assets ratio was 81.9 (84.3) percent. In excess to the cash and cash equivalents Truecaller has SEK 900 (150) million invested in short-term interest rate funds. Truecaller have a revolving credit facility of SEK 500 (500) million. SEK 0 (0) million had been utilized as of the reporting date. Consolidated total assets amounted to SEK 2,123.5 (1,857.3) million at 31 March 2023. The carrying amounts of financial assets and financial liabilities are estimated to coincide with fair value in all material respects. Trade receivables for the Group amounted to SEK 60.0 (38.7) million and claims on advertising networks and platform owners amounted to SEK 93.8 (125.6) million. The increase in trade receivables is attributable mainly to the increase in direct sales in the advertising business and growth in Truecaller for Business. Payment terms for the company’s customers are normally 30 -60 days. A structured credit review process in combination with non -paying customers being quickly suspended from the company’s services and proactive assurance that customers pay their invoices with minimal delay has r esulted in limited customer losses. Recognized but unrealized customer credit losses amounted to SEK 2.2 (1.7) million as of 31 March 2023 . The increase in claims on advertising networks and platform owners is mainly linked to outstanding claims against Google and Facebook. The Group began capitalizing development costs in 2021 when certain initiated projects were assessed as meeting the criteria under IAS 38 . Development costs for these projects have therefore been capitalized. During the first quarter of 2023, SEK 1.1 (2.8) million were capitalized as internally developed intangible assets. The majority of Truecaller’s revenues are denominated in Swedish kronor (SEK) via partners including Google and Apple. Accordingly, there is little direct currency expo sure. In turn, these partners bill users of Truecaller’s services partly in local currency, which entails indirect currency exposure. Truecaller does not, however, have complete information concerning currency exposure or how currency effects are managed b y partners and thus cannot at present accurately quantify indirect currency exposure. A depreciation of SEK against currencies including USD and INR, however, has a positive impact on the company’s sales and profit, although it also increases the company’s costs. The largest currency exposures are against INR and USD. The company estimates that exchange rate changes had a minor positive impact on sales during the first quarter of 2023 compared to the corresponding quarter in 2022. The company's estimate is that exchange rate changes did not affect the EBITDA margin. Parent company income for the quarter amounted to SEK 1.6 (1.0) million which refers to billing of subsidiaries for services rendered The profit before tax amounted to SEK 1.4 (-5.4) million. The profit after tax amounted to SEK 1.2 (-4.3) million. Cash and cash equivalents on 31 March 2023 amounted to SEK 173.5 (718.7) million. In excess to the cash and cash equivalents the parent company has SEK 400 (150) million invested in short- term interest rate funds. No investments have taken place in intangible or tangible assets. At the end of the period, 2 (2) people were employed in the parent company ===== SIDA 11 ===== During the first quarter, Truecaller made significant progress in improving the app’s core infrastructure. Focused engineering efforts led to more streamlined operations, resulting in more efficient use of resources and reduced costs. With a focus on user experience improvements that enhance stickiness, Truecaller optimized its infrastructure with a leaner architecture and lower latency. This approach resulted in faster response times, which reduced the resources required to serve its users and lowered server costs and data usage. Additionall y, low latency minimizes the risk of server downtime or disruptions, which can be costly and disrupt user experience. Throughout 2022, Truecaller invested in strengthening its growth engineering team. This strategic investment in engineering resources is expected to enhance Truecaller's capacity to support and drive long -term organic and inorganic growth. Truecaller invested in enhancing metrics and observability to track user behavior at a much more granular level in order to identify leaks in the activat ion funnel and retention. In the first quarter, this resulted in improvements to the product, increased user engagement and a material increase in retention of new users. These initiatives are expected to have long -term benefits with respect to organic growth and retention. Truecaller continues to improve its core offering in order to deliver on its promise of a smarter, safer, and more efficient experience across communication needs. AI Identity technology, which leverages artificial intelligence and machine learning, continued to develop during the first quarter, ensuring that users receive the most up-to-date and relevant information about unknown numbers in real time. Community feedback played a significant role in driving these improvements, with up/down votes and comments growing by 63% quarter on quarter. By using community input to enhance AI Identity, Truecaller has created a valuable feedback loop; as more users contribute information throug h these channels, Truecaller’s data quality improves, which ultimately drives even higher in - app engagement. Other initiatives leveraging AI Identity in the first quarter facilitated continued improvements in data quality in both mature and nascent markets. One significant development in the first quarter was the expansion of AI Identity to SMS with the introduction of Message ID, which provides a Caller ID -like service for text messages. With Message ID, users can easily verify the authenticity of an SMS sender using visual cues provided by the app. Truecaller's advanced machine learning models power Message ID, and all processing is conducted locally on the user's device, ensuring complete privacy protection. The feature prioritizes time -sensitive, transacti onal, or bill reminder messages, cutting through spam and fraud and ensuring prompt and secure delivery. Truecaller continued to invest in developing its offering for iPhone users by further optimizing the caller identification experience on iOS. Improvements executed in the first quarter included updated SMS filtering for users in key markets to drive further adoption. This new filtering mechanism uses the same machine learning model as on Android, ensuring that messages are sorted in the relevant inbox (e.g., junk, coupons, and more). Efforts to improve the Truecaller experience on iPhone continue to demonstrate strong potential, with healthy growth across performance indicators. In the first quarter, the daily active user base on iPhone continued to show good growth, while retention continued to show improvements, particularly in comparison to prior to the launch of the brand new Truecaller experience on iPhone in August 2022. In addition to internal product development efforts, Truecaller expanded its collaboration with Indian government authorities. Government Directory Services (GDS), an in -app service available to Indian users, helps users seamlessly connect with the government through easy access to verified contacts, and has grown to cover ove r 30 different states and union territories. Additionally, a partnership with the Delhi Police added the organization’s official numbers and addresses to the GDS Directory, further protecting the population from fraud and impersonation. During the first quarter, Truecaller made advancements in bolstering its web capabilities, including expanding its search experience. This brings the benefits of using the Truecaller app to the web and facilitates intent -driven traffic to the website. The company also focu sed on improving localization on this channel, making the Truecaller website more relevant to each user while also attracting organic traffic from a wider range of markets. These efforts continue to demonstrate positive results, with continued growth in we b traffic and improved SEO performance. Truecaller continues to explore innovative ways to enhance its desktop functionalities and drive adoption in regions with higher desktop usage. With further developments ===== SIDA 12 ===== planned for the web in 2023, Truecaller remain s committed to delivering the best possible user experience across all platforms. Truecaller’s paid offering continued to develop positively, with the subscriber base increasing by 18% compared to the first quarter of 2022. Adoption of the recently introduced Family Plan continues to gain traction, with 80% of those opting in to the plan being new subscribers. In the US, this package was expanded to include access to Truecaller Assistant. Truecaller continues to develop its premium offering by introducing new features, expanding its Assistant capabilities, and delivering the most attractive pricing packages for its users. Who Searched For Me, an extension of the popular Who Viewed Me feature, now gives subscribers visibility on users that have searched for their number using Truecaller. This feature was introduced in the beginning of the first quarter, and has already demonstrated very positive results with respect to driving higher subscriber conversion. For iPhone users, Truecaller made Live Caller ID available to paid users globally. As the first real-time, server-based number lookup solution for iPhone, Live Caller ID underscores Truecaller’s commitment to strengthening its foothold in the Apple ecosystem. Live Caller ID leverages Truecaller’s proprietary technology on the iOS platform to provide users with instant, reliable identification of incoming calls from unknown numbers. This development represents a significant breakthrough in bringing the quality of the Truecaller experience on iPhone even closer to that on Android. Early indicators are promising, including growth in conversions as well as increased usage. Truecaller Assistant, the newest paid feature powered by cloud telephony technology, developed further in the first quarter. Assistant now offers a higher level of customization, empowering users to personalize their experience to their specific needs. Users can now set a personalized greeting whenever the Assistant answers incoming calls. The custom greeting can be tailored to different callers based on their classification (e.g., phonebook contacts, top spammers, non - phonebook contacts). During the first quarter, T ruecaller also integrated voicemail into the offering. Given that voicemail is not available in many of Truecaller’s core markets, the cloud telephony product enables the app to expand the service to additional countries in parallel to the expansion of Ass istant to more markets. Truecaller made progress towards bringing the Assistant offering to more markets in the first quarter. Building on the valuable insights gained from the initial launch in the US, preparations are now underway to expand the service t o new markets, bringing the benefits of cloud telephony technology to even more users. Despite muted demand affecting revenue growth in advertising, Truecaller continues to enhance its AdTech capabilities to offer a superior experience to advertisers, demand partners, and end users. Investments in advertising capabilities over the previous year have been paying off, as demonstrated in continued improvements across multiple indicators —including notable growth in total impressions with a 20% improvement compared to the first quarter of 2022. Technical optimizations on the supply side continue to demonstrate substantial improvements to render rate and efficiency across the advertising life cycle. Key indicators such as ads engagement and click through rates continue to develop positively, establishing strong operating leverage when demand recovers. Other ongoing initiatives on the supply side include continued development of custom formats within existing ad inventory to drive better outcomes, and optimizations to inventory on iOS in order to better monetize Truecaller’s growing user base on iPhone. Investments in Truecaller’s independent tech stack have yielded positive results, with strong growth in demand from T ruecaller Ad Server. In the first quarter, Truecaller continued to build out its in-house capabilities in order to strengthen its offering for its growing range of demand partners and advertisers. Truecaller Ad Server now supports more advanced features su ch as custom targeting and retargeting, which have shown promising indicators in terms of further improving conversion rates (e.g., app installs, lead generation and sales) while maintaining the right balance of precision and scale. Truecaller continues to collaborate with ecosystem partners such as mobile measurement partners and attribution companies in order to make its advertising platform more performance -ready. Other initiatives to expand performance advertising capabilities have also gained traction, enabling advertisers to make more informed decisions about campaigns executed on the Truecaller Ad Server. Efforts to strengthen Truecaller’s demand side platform continue to scale well, giving direct advertisers a holistic solution for setting up and managing campaigns, using various targeting options and optimization tools. In addition to enabling access to target audiences beyond Truecaller’s ecosystem, investments in the demand side platform set the foundation for Truecaller’s transition towards becom ing a full stack advertising solutions partner catering to a wide range of use cases across the advertising funnel. ===== SIDA 13 ===== Demand for the Truecaller for Business (TfB) developed at a healthy pace, demonstrating the continued relevance and need for Truecaller’s business solutions amidst a more challeng ing macroeconomic environment. In the first quarter, TfB’s portfolio of accounts grew by 57% year on year. TfB continues to benefit from strong interest from the banking and financial services sector, with notable brands such as ICICI Prudential, Airtel Payments, and Godrej Housing Finance onboarded as new clients during the quarter, to name a few. While the offering has established product -market fit within banking and financial services, the portfolio of clients has continued to expand beyond the sector, with growing representation from automotive, logistics, retail, and more. Adoption of TfB has also shown steady growth outside of India, with the RoW segment accounting for 18% of the overall client base (vs. 15% in the same period of 2022). Product development for the enterprise offering continued to progress, with a number of milestones delivered in the first quarter. Verified Business expanded to include SMS, marking a significant step in the evolution of the offering. As SMS continues to function as a n important channel for businesses, Verified SMS offers a powerful tool for businesses seeking to create more impactful SMS communications with their audiences. By providing users with the assurance that an SMS message is genuine and secure, Verified SMS e nhances trust and confidence with an enterprise’s brand. Verified SMS was commercialized at the end of the first quarter and has already generated interest from some of the highest -volume SMS senders in India, most notably within the banking and financial services sector. Other product development efforts centered on facilitating two- way communication between users and businesses, which in turn provides high-intent signals from users to enterprises. Call Me Back for Business, an existing feature that allows users to request a call back from a business when they are not able to answer the phone, was updated in the first quarter such that users can now indicate their preferred time for the business to call back. This initiative is expected to drive conversion rates for businesses, and early results indicate a correlation between usage of Call Me Back and user propensity to purchase. Another new feature, User Feedback (screenshot #13), introduces a new way for businesses to get real -time customer feedback and insights after answered, missed, and rejected calls. User Feedback is self -serve and fully customizable, such that feedback can be solicited in multiple styles and formats based on the context of any call. Business messaging, a first -of-its-kind service delivered in partnership with leading CPaaS provider Tanla, facilitates the distribution of messages to end customers in a more efficient way. During the first quarter, implementation scaled up substantially, with over 1.5 billion messages delivered to end users on this channel — a 100% growth in volume, quarter on quarter. In addition to improved efficiency, business messaging also allows enterprises to analyze their messaging campaign performance, providing them with the insights necessary to fine-tune their messaging and targeting to optimize results. Adoption of business messaging has demonstrated applicability to various use cases, including transactional, bill payments, delivery, and informational message s. For important transactional and bill-related messages, the product is designed such that users do not miss out on important communications. Enterprises who have adopted business messaging —including some of the most recognizable brands in India—have observed higher levels of user engagement as compared to traditional SMS, suggesting significant potential for even broader adoption moving forward. Truecaller continues to build out its capabilities in order to serve growing demand and the evolving nee ds of enterprise customers. In the first quarter, Truecaller made significant progress with respect to its investments in technology supporting the business offering, repositioning Truecaller as a platform that allows businesses to integrate their CRM systems with Truecaller APIs. The platform’s APIs provide businesses with the flexibility to customize their communications and enhance overall customer experience. These efforts to evolve Truecaller’s platform into a more holistic business tool demonstrate the company’s commitment to driving innovation and creating value for business customers and end users. ===== SIDA 14 ===== On the 26th of April Truecaller published the notice for the Annual General Meeting (AGM). The AGM will be held on the 26th of May at 2pm CET in the companys office on Mäster Samuelsgatan 56 in Stockholm. The Board of directors has presented a number of proposals for the AGM. Among them are proposals for resolution on authorization for the Board of Directors regarding new issue of up to 10 percent of the current number of shares in the company and authorization regarding repurchase and transfer of a maximum of 10 percent of the outstanding B-shares in the company. The Board has also propsed to implement a employee stock option program and a share program for Truecaller’s staff. Upon full exercise of the two programs the total potential dilution is 0.86% of the outstanding shares in the company. The nomination Committee, among other things, propose a re- election of the current board which consists of Bing Gordon, Alan Mamedi, Annika Poutianen, Helena Svancar, Nami Zarringhalam och Shailesh Lakhani. Nami Zarringhalam is proposed as new chairman . The Nomination Committee also proposes unchanged remuneration for board duties as well as a re -election of the companys audit Ernst & Young with responsible Auditor in charge Jennifer Rock-Bailey. All information about registration, documents and the full notice is available at https://corporate.truecaller.com/governance/general- meetings. Like all companies. Truecaller is exposed to various types of risk in the course of business. These include risks related to currency movements. dependence upon certain strategic partners. the general economic trend and developments in the financial market. technical progress. dependence on key individuals. legal risks and risks associat ed with personal privacy. as well as tax risks and political risks. Risk management is an integrated component of the management of Truecaller. The risks described for the Group could also have indirect impact on the parent company. A complete description of risks and uncertainties associated with Truecaller is provided in the 2022 annual report. The war in Ukraine and its global economic repercussions have had minimal impact on Truecaller’s business. Truecaller’s focus has been to take care of our employees who have family and friends in Ukraine. The report presents statements pertaining to matters including Truecaller’s financial position and performance as well as statements on market conditions that may be forward-looking. Truecaller believes the expectations reflected in these forward- looking statements are based on reasonable assumptions. Forward-looking statements are. however. associated with risks and uncertainties and actual outcomes or conseq uences may differ materially from those presented here. In addition to that required under applicable law. forward -looking statements apply only on the date presented and Truecaller disclaims any obligation to update them in the light of new information or future events. Truecaller does not publish forecasts. Truecaller AB. CRN 559278-2774. is a Swedish public company whose registered office is in Stockholm. Sweden. Annual General Meeting: 26 May 2023 Interim report, January-June 2023: 21 July 2023 Interim report, January-September 2023: 9 November 2023 Alan Mamedi. CEO alan.mamedi@truecaller.com Odd Bolin. CFO +46 70 428 31 73 odd.bolin@truecaller.com Andreas Frid. Head of IR & Communication +46 705 29 08 00 andreas.frid@truecaller.com This interim report has not been reviewed by the company’s auditor. This information constitutes insider information that Truecaller AB is required to disclose under the EU Market Abuse Regulation. The information was released for publication, through the agency of the contact persons above, on 11 May 2023 at 07.30 CET. ===== SIDA 15 ===== Operating revenue 3 387,064 398,300 1,772,926 Other income 21 9 7,506 Work performed by the entity and capitalized 1,018 2,245 5,204 Third party fees -96,108 -87,050 -417,689 Other external costs -57,118 -73,430 -349,750 Employee costs -84,830 -58,701 -301,031 Depreciation. amortization and impairments -10,220 -5,927 -28,664 EBIT (operating profit) 139,827 175,447 688,502 Net financial income or expense 7,199 -5,380 -381 Profit or loss after net financial income or expense 147,026 170,067 688,121 Tax -37,906 -36,372 -152,891 Profit for the period 1) 109,120 133,695 535,230 Earnings per share Basic earnings per share (SEK) 0.30 0.36 1.43 Diluted earnings per share (SEK) 0.30 0.35 1.43 Average number of shares before dilution 367,572,311 373,696,919 373,273,365 Average number of shares after dilution 367,572,311 375,343,332 373,300,072 1) The profit for the period is attributable entirely to shareholders in the parent company. ===== SIDA 16 ===== 1) The profit for the period is attributable entirely to shareholders in the parent company. Profit or loss for the period 109,120 133,695 535,230 Other comprehensive income for the period Items that will be reclassified to profit and loss in subsequent periods Foreign exchange translation differences -952 -302 -753 Items that will not be reclassified to profit and loss in subsequent periods Remeasurement of defined-benefit pension plans - - -1,891 Other comprehensive income for the period -952 -302 -2,645 Comprehensive income for the period 1) 108,168 133,393 532,586 ===== SIDA 17 ===== ASSETS Non-current assets Goodwill 33,653 34,209 34,530 Other intangible assets 14,567 13,955 15,200 Property. plant and equipment 17,642 1,314 8,118 Right-of-use assets 136,932 88,225 139,777 Deferred tax assets 38,022 40,132 39,584 Other non-current receivables 4 14,777 18,819 16,697 Total non-current assets 255,592 196,654 253,906 Current assets Current receivables 4 260,415 208,838 362,175 Short-term placements 4 907,941 149,604 400,490 Cash and cash equivalents 4 699,510 1,302,180 1,327,801 Total current assets 1,867,865 1,660,623 2,090,466 TOTAL ASSETS 2,123,457 1,857,277 2,344,372 EQUITY AND LIABILITIES Equity Equity attributable to owners of the parent 1,738,400 1,565,957 1,804,093 Total equity 1,738,400 1,565,957 1,804,093 Non-current liabilities Liability arising from defined-benefit pension plans 6,345 4,445 7,653 Lease liabilities 115,559 70,723 118,208 Deferred tax liability 33,532 20,800 34,563 Other non-current liabilities 4 8,568 12,097 8,395 Total non-current liabilities 164,003 108,065 168,819 Current liabilities Lease liability 21,820 16,233 23,307 Other current liabilities 4 199,234 167,022 348,153 Total current liabilities 221,055 183,255 371,460 TOTAL EQUITY AND LIABILITIES 2,123,457 1,857,277 2,344,372 ===== SIDA 18 ===== Operating activities Profit or loss after net financial income or expense 147,026 170,067 688,121 Adjustments for non-cash items 10,935 8,692 47,094 Income tax paid -46,586 -10,123 -154,078 Cash flow from operating activities before changes in working capital 111,374 168,636 581,137 Net cash from changes in working capital Change in operating receivables -6,616 -34,599 -50,434 Change in operating liabilities -24,623 -12,523 79,707 Net cash from operating activities 80,136 121,514 610,410 Investing activities Acquisitions of Group companies, net effect on cash and cash equivalents - -26,824 -32,158 Purchases of property, plant and equipment -10,551 - -7,594 Disposals of property, plant and equipment - - - Purchases of intangible assets -1,141 -2,760 -7,146 Purchases of short-term investments -500,000 - -250,000 Change in financial receivables -7,450 461 -425 Net cash used in investing activities -519,143 -29,123 -297,323 Financing activities Funds received for warrants - - 3,146 Repurchase of warrants - -374 -872 Amortization of lease liability -6,926 -5,148 -19,869 Payout synthetic options - -23,140 -23,140 Buyback of treasury shares -182,164 - -182,389 Net cash from (-used in) financing activities -189,090 -28,662 -223,124 Net cash flow for the period -628,098 63,729 89,963 Cash and cash equivalents at the beginning of the period 1,327,801 1,238,443 1,238,443 Foreign exchange differences in cash and cash equivalents -194 9 -605 Cash and cash equivalents at the end of the period 699,510 1,302,180 1,327,801 ===== SIDA 19 ===== Opening balance at 1 January 2022 747 1,707,864 3,153 -300,354 1,411,410 Profit for the period - - - 133,695 133,695 Other comprehensive income for the period - - -302 - -302 Comprehensive income for the period - - -302 133,695 133,393 Transactions with owners of the Group Share issue after transaction costs 1 - - 18,152 18,152 Warrants - -374 - - -374 Share-based payment - - - 3,375 3,375 Total 1 -374 - 21,527 21,153 Closing balance at 31 March 2022 748 1707,490 2,851 -145,132 1,565,957 Opening balance at 1 January 2023 758 1,710,139 2,400 90,797 1,804,093 Profit for the period - - - 109,120 109,120 Other comprehensive income for the period - - -952 0 -952 Comprehensive income for the period - - -952 109,120 108,168 Transactions with owners of the Group Treasury shares after transaction costs - - - -184,470 -184,470 Share-based payment - - - 10,610 10,610 Total - - - -173,861 -173,861 Closing balance at 31 March 2023 758 1,710,139 1,448 26,056 1,738,400 ===== SIDA 20 ===== Operating revenue 1,566 1,034 6,734 Other external costs -2,541 -3,006 -13,003 Employee costs -2,763 -1,697 -12,846 EBIT (operating profit) -3,738 -3,670 -19,116 Net financial income or expense 5,181 -1,746 -2,978 Profit or loss after financial items 1,443 -5,416 -22,094 Appropriations - - 102,600 Profit or loss before tax 1,443 -5,416 80,506 Tax -295 1,116 -16,598 Profit or loss for the period 1,148 -4,300 63,908 ===== SIDA 21 ===== ASSETS Non-current assets Investments in Group companies 10,297,177 10,217,177 10,247,177 Deferred tax assets - 17,698 - Total non-current assets 10,297,177 10,234,875 10,247,177 Current assets Current receivables 12,739 27,291 12,357 Receivables from Group companies 12,471 26,370 106,248 Short-term placements 405,193 149,604 400,490 Cash and cash equivalents 173,472 718,691 305,935 Total current assets 603,875 921,957 825,030 TOTAL ASSETS 10,901,053 11,156,832 11,072,207 EQUITY AND LIABILITIES Equity and liabilities Equity 10,886,786 11,152,347 11,059,499 Liabilities to Group companies - 74 - Current liabilities 14,226 4,410 12,708 TOTAL EQUITY AND LIABILITIES 10,901,053 11,156,832 11,072,207 ===== SIDA 22 ===== This interim report covers the Swedish parent company Truecaller AB (“Truecaller”). company registration number 559278-2774. and its subsidiaries. The principal business of the Group is to develop and publish software. primarily mobile Caller ID applications. under the Truecaller brand. The parent is a limited liability company registered and domiciled in Stockholm. Sweden. The address of the head office is Mäster Samuelsgatan 56. 111 21 Stockholm. Sweden. Truecaller restructured the Group in 2021. whereby the former parent company. True Software Scandinavia AB. became a wholly owned subsidiary of the new parent. Truecaller AB. Truecaller AB was previously a dormant shelf compa ny. The restructuring was accomplished through a non -cash issue directed at shareholders in True Software Scandinavia AB. who retained their relative ownership interests in Truecaller AB. The newly formed Group is a direct continuation of the True Software Scandinavia Group and Truecaller has thus assumed the financial history of the True Software Scandinavia Group unencumbered. Truecaller applies International Financial Reporting Standards (IFRS). as adopted by the EU. The interim report for the Group was prepared in compliance with IAS 34 Interim Financial Reporting and applicable sections of the Swedish Annual Accounts Act (1995:1554). Disclosures according to IAS 34 are provided in other parts of the interim report. in addition to the financial statements. The interim report for the parent company was prepared in accordance with the Annual Accounts Act. Chapter 9 Interim Financial Reporting. and recommendation RFR 2 Accounting of Legal Entities issued by the Swedish Financial Accounting Standards Council . The accounting principles. basis for measurement and estimates and judgements applied on the interim report for the Group and the parent are identical to those applied in Truecaller’s annual report. Accordingly. refer to the most recently published annual report for a description of applied accounting policies. Equity Shares issued by the company are classified as equity. Additional costs arising directly from the issue of common shares and stock options are recognized as a debit item in equity after deducting tax effects. if any. When Truecaller’s shares classified as equity are repurchased. the amount of consideration paid is recognized as a reduction in equity. after deducting tax effects. if any. Repurchased shares are c lassified as treasury shares and recognized as a debit item under equity. When treasury shares are subsequently sold or reissued. the amount received is recognized as an increase in equity and the surplus or deficit resulting from the transaction is transferred to or from other capital contributions Preparation of the interim report requires management to make judgements. estimates and assumptions that affect the application of the accounting policies and the recognized amounts of assets. liabilities. revenues and costs. Actual outcomes may differ from these judgements and estimates. The key judgements and sources of estimation uncertainty are unchanged from those described in the most recently published annual report. Geographical region India 292,158 296,568 1,324,080 Middle East and Africa 49,159 56,427 237,096 ===== SIDA 23 ===== Rest of the world 45,747 45,305 211,750 Revenue from contracts with customers 387,064 398,300 1,772,926 The geographical distribution is based on where the customer has their mobile subscription. Type of service Advertising revenues 303,924 338,955 1,488,558 User revenues 46,546 38,883 170,507 Truecaller for Business 34,375 18,417 105,473 Other revenues 2,219 2,044 8,388 Revenue from contracts with customers 387,064 398,300 1,772,926 Measurement of financial assets and liabilities at 31 March 2023 Financial assets measured at fair value through profit and loss Financial assets measured at amortized cost Total carrying amount Other non-current receivables - 14,777 14,777 Claims on advertising networks and platform owners - 93,826 93,826 Trade receivables - 59,984 59,984 Short-term placements 907,941 - 907,941 Cash and cash equivalents - 699,510 699,510 Total 907,941 868,096 1,776,037 Trade payables - 58,872 58,872 Conditional consideration (earnout) 13,520 - 13,520 Total 13,520 58,872 72,392 Measurement of financial assets and liabilities at 31 March 2022 Financial assets measured at fair value through profit and loss Financial assets measured at amortized cost Total carrying amount Other non-current receivables - 18,819 18,819 Claims on advertising networks and platform owners - 125,615 125,615 Trade receivables - 38,712 38,712 Short-term placements 149,604 - 149,604 ===== SIDA 24 ===== Cash and cash equivalents - 1,302,180 1,302,180 Total 149,604 1,485,326 1,634,930 Trade payables - 28,776 28,776 Conditional consideration (earnout) 16,785 - 16,785 Total 16,785 28,776 45,561 Measurement of financial assets and liabilities at 31 December 2022 Financial assets measured at fair value through profit and loss Financial assets measured at amortized cost Total carrying amount Other non-current receivables - 16,697 16,697 Claims on advertising networks and platform owners - 91,158 91,158 Trade receivables - 60,704 60,704 Short-term placements 400,490 - 400,490 Cash and cash equivalents - 1,327,801 1,327,801 Total 400,490 1,496,360 1,896,851 Trade payables - 69,835 69,835 Conditional consideration (earnout) 13,301 - 13,301 Total 13,301 69,835 83,136 The carrying amount is considered a good estimate of the fair value of current receivables and liabilities. such as claims on advertising networks and platform owners. trade receivables and trade payables. The maximum credit risk of the assets comprises the net amounts of the carrying amounts shown in the table above. The Group has short -term placements and conditional consideration (earnouts) that are measured at fair value through profit or loss. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The measurement methods are classified in a hierarchy consisting of three levels defined as follows: • Level 1 Quoted prices in active markets • Level 2 Inputs other than quoted prices that are observable directly (prices) or indirectly (derived from prices) • Level 3 Non-observable market data There were no transfers between the levels during the period. The Group has no financial assets or liabi lities that have been offset in the accounts or which are covered by a legally binding netting agreement. Short-term placements Truecaller has SEK 900 million placed in short-term fixed income funds. The fair value of the holding is determined by using market prices on the reporting date according to Level 1. The effect of the measurement at fair value is recognized in profit or loss. The adjustment to the fair value of these instruments is reflected directly in “Short-term placements” in the statement of financial position. Short-term placements, SEK 000s 2023 Jan-Mar 2022 Jan-Mar 2022 Jan-Dec Balance at 1 January 400,490 150,066 150,066 Investment in short- term placements 500,000 - 250,000 Change in value recognized in profit and loss 7,451 -462 424 Closing balance 907,941 149,604 400,490 Conditional consideration (earnout) Conditional consideration is categorized at level 3 of the fair value hierarchy. The fair value of conditional consideration is calculated by discounting future cash flows by a risk -adjusted discount rate. The conditional consideration for CallHero has been classified as a current and non-current liability. Conditional consideration (earnout), SEK 000s 2023 Jan-Mar 2022 Jan-Mar 2022 Jan-Dec Balance at 1 January 13,301 - - Acquisition value - 16,785 16,785 Payout - - -5,228 ===== SIDA 25 ===== Change in value recognized in profit and loss 219 - 1,744 Closing balance 13,520 16,785 13,301 Shareholders at the annual general meeting held 24 May 2022 endorsed the board’s proposal regarding incentive programs directed at key management personnel. Key individuals and employees of the Truecaller Group. The incentive program comprises at maximum of 500.000 warrants and a maximum of 5.100.000 performance-based share rights. Participants buy the warrants at market value and the price for one warrant (the warrant premium) is calculated using the Black & Scholes valuation model. Performance-based share rights give participants the right to receive Class B shares in the company against no monetary consideration after the fixed vesting period has ended. Provided that participants remained employed by the company during the vesting period and that certain specific performance targets were reached by Truecaller regarding revenue growth and adjusted EBITDA. The Group applies IFRS 2 Share -based Payment to performance-based share rights. Where the cost is measured at fair value and allocated over the term o f the program and recognized in equity. The Group recognizes a reserve for accrued social insurance costs for the program based on the estimated benefit value for participants. The Group has a previously implemented incentive program. LTIP 2021. Refer to the 2021 annual report for detailed information about the program. Costs of LTIP 2021 and LTIP 2022, SEKm 2023 Jan-Mar 2022 Jan-Mar 2022 Jan-Dec Cost of vested warrants per IFRS 2 -10.6 -3.4 -28.4 Social insurance contributions -0.4 - -1.8 Costs of LTIP 2021 and LTIP 2022 -11.1 -3.4 -30.2 The annual general meeting held 24 May 2022 authorized the board of directors to decide a treasury share buyback program. The buyback program is limited to 5 percent of shares outstanding as of the date of the AGM equivalent to 18,697,985 shares. Share buybacks may be executed on one or more occasions prior to the next AGM. The buyback program began on 23 September and until the end of the reportin g period a total of 10,997, 407 Class B shares were repurchased for SEK 373.3 million including transaction costs. Distribution of shares at the end of the reporting period: Share class Shares Class A Class B Class C 46,783,800 327,175,910 5,100,000 Total number of shares outstanding 379,059,710 - of which Class B shares held by Truecaller - of which Class C shares held by Truecaller 10,997,407 5,100,000 Total number of shares outstanding. net after shares held by Truecaller 362,962,303 The Group’s contingent liabilities consist of a tax matter in the previously acquired subsidiary Backwater Technologies related to determination of income for FY 2016-17. The ongoing matter refers to a period prior to the acquisition date. The Group has determined that it is likely that the outcome will be in its favor and has therefore not recognized a provision in relation to this matter. The total undiscounted amount that the Group could be obligated to pay if the decision in the proceedings is not in the Group’s favor is estimated at between SEK 3 million and SEK 12 million. No related party transactions occurred during the reporting period. After the end of the reporting period, in line with the share repurchase program initiated on September 23, 2022, Truecaller has repurchased an additional 569,397 Class B shares for SE K 17.0 million including transaction costs. Truecaller's total holding of treasury Class B shares amounts to 11,566,804, which were repurchased for a total of SEK 390. 3 million including transaction costs. On April 10, 2023, Truecaller acquired 4+ percent of the shares in the Singapore-based game development company Mayhem Studios Private Ltd. for SEK 32.6 million. The investment was financed through existing cash. Other investors include Sequoia and Mobile Premier League. Mayhem Studio s Private Ltd. focuses on developing mobile games for the Indian market. The Indian mobile gaming market is expected to grow strongly from USD 2.8 billion in 2022 to USD 5 billion in 2025 and the number of players is expected to grow from 400 million in 20 22 to 500 million in 2025. The availability of affordable mobile data coupled with increased smartphone penetration are two of the factors which is expected to contribute to the strong market growth. ===== SIDA 26 ===== Stockholm, 11 May 2023 Bing Gordon Board Chair Alan Mamedi Director and CEO Annika Poutiainen Director Helena Svancar Director Nami Zarringhalam Director Shailesh Lakhani Director ===== SIDA 27 ===== . ===== SIDA 28 ===== Group, SEKm 2023 Jan-Mar 2022 Jan-Mar 2022 Jan-Dec Gross profit and gross margin Net sales 387.1 398.3 1,772.9 Minus brokerage costs -96.1 -87.0 -417.7 Gross profit 291.0 311.3 1,355.2 Divided by Net sales 387.1 398.3 1,772.9 Gross margin 75.2% 78.1% 76.4% Adjusted EBITDA and Adjusted EBITDA margin Profit before tax 147.0 170.1 688.1 Excluding net financial income or expense -7.2 5.4 0.4 Excluding depreciation. amortization and impairments 10.2 5.9 28.7 EBITDA 150.0 181.4 717.2 Excluding items affecting comparability - - - Adjusted EBITDA 150.0 181.4 717.2 Divided by Net sales 387.1 398.3 1,772.9 Adjusted EBITDA margin 38.8% 45.5% 40.5% EBIT (operating profit) and EBIT margin Profit before tax 147.0 170.1 688.1 Excluding net financial income or expense -7.2 5.4 0.4 EBIT (operating profit) 139.8 175.5 688.5 Divided by Net sales 387.1 398.3 1,772.9 EBIT margin 36.1% 44.0% 38.8% Adjusted EBIT and Adjusted EBIT margin EBIT (operating profit) 139.8 175.5 688.5 Excluding items affecting comparability - - - Adjusted EBIT 139.8 175.5 688.5 Divided by Net sales 387.1 398.3 1,772.9 Adjusted EBIT margin 36.1% 44.0% 38.8% Equity to assets ratio Total equity 1,738.4 1,566.0 1,804.1 ===== SIDA 29 ===== Divided by Total assets 2,123.5 1,857.3 2,344.4 Equity to assets ratio 81.9% 84.3% 77.0%