Q1 2024

Laurinda Pang, CEO

Roshan Saldanha, CFO

Sean O'Neal, CPO

Thomas Heath, Chief Strategy Officer

INVESTOR PRESENTATION MAY 7, 2024

150,000+

business customers

800bn+

interactions per year

60+

Scalable cloud communications

countries with

platform for messaging, voice and email

local presence

Pioneering the way

the world communicates

SEK 28.6bn

net sales in the past 12 months

SEK 9.6bn

gross profit in the past 12 months

SEK 3.6bn

Adj. EBITDA in the past 12 months

2

First quarter highlights

01

02

Rising gross margin

Strong cash flow

03

Growth acceleration plan

  • Gross margin at 34%, up 1.4pp from Q1 2023.
  • Adjusted EBITDA margin of 12% and EBITDA margin of 11%
  • Net debt/Adjusted EBITDA excl. IFRS16 leases at 2.0x, down from 2.7x in Q1 2023.
  • Operating cash flow of SEK 553 million in Q1.
  • Operating cash flow of SEK 2.1 billion over the last 12 months.
  • L12M cash conversion* from Adjusted EBITDA at 42% is in line with 40-50% target range.
  • Launched Growth Acceleration Plan with launch of new organization from 1 January 2024.
  • Targeting SEK 300 million gross opex savings run-rate by year-end 2024, which will be redeployed into growth initiatives.
  • Total integration and restructuring cost estimated at SEK 300 million in 2024. SEK 67m booked in Q1, out of which SEK 18m was restructuring.

* Cash conversion calculated as Cash flow from operating activities after investments / Adjusted EBITDA.

3

Overview

Operating segments

Gross profit by region, 2023

15%

22%

63%

Americas

EMEA

APAC

Figures refer to the full year 2023.

Product categories

Gross profit by product, 2023

23%

55%

22%

API Platform

Applications

Network Connectivity

Expenditures

Adjusted opex by function, 2023

22%

49%

29%

R&D

Sales & marketing

General & administrative

4

Performance by segment

Americas

  • Gross profit up 4% year-on- year in constant currencies.
  • Sinch named the 2024 Adobe Digital Experience ISV Resell Partner of the Year.
  • Gross profit growth driven by Applications and verification products, and by improved gross margins for the API- business.
  • Increased COGS and 8YY reform impacted growth in Network Connectivity.

EMEA

  • Gross profit down 5% year- on-year in constant currencies.
  • Customer cases this quarter include Micromania, Club Med, Orange and Currys.
  • Gross profit decline due to decreased API Platform sales.
  • Network Connectivity and Applications have a positive contribution.

APAC

  • Gross profit up 9% year-on- year in constant currencies.
  • Regional partnership with Aircall resulted in multiple new customer wins.
  • Gross profit growth driven by API Platform in India and by Applications in Australia & New Zealand.

5

Boosting brand visibility for MicroMania-Zing

Increased interactivity with RCS

MicroMania-Zing, part of the gaming retail giant Game Stop, used Sinch RCS to boost brand visibility, trigger customer interactions, simplify transactions, and improve customer experience.

Personalized offers

"RCS was an obvious choice to reinforce our system with a conversational format," said Caroline Pineau Marescal, Data

  • CRM Manager at Micromania-Zing. "We were able to boost traffic among an audience looking for good deals."

120% increase in website traffic

Sinch RCS delivered an 86% higher read rate compared to newsletters and a 120% higher redirection rate to MicroMania's website compared to Rich SMS

(SMS with a link to a landing page).

Full customer story at sinch.com.

6

Investing in growth areas

Gross profit, Q1 24 vs Q1 23, SEKm

1,500

+8%

1,321

1,250

1,233

1,000

750

+11%

-15%

521

552

476

470

500

250

0

Applications

API Platform

Network Connectivity

  • Targeting continued profitable growth in API Platform and Applications
  • Focusing on cash generation in Network Connectivity
  • API Platform and Applications contribute 80% of gross profit

Organic growth rates in constant currencies.

7

  • 30 years of cloud marketing and communications experience
  • Joined Sinch in 2022 to lead the SMB business unit
  • Strong track record at Sinch delivering consistently solid results
  • Appointed Chief Product Officer from 1 January 2024

Sean O'Neal

Chief Product Officer

8

Product update

9

New product categories

Customer

Communications

Cloud

Applications

API Platform

Network Connectivity

  • Software applications for customer engagement supporting use cases across marketing, operations and customer care.
  • Targets business users.
  • APIs allow businesses to trigger mobile messaging, voice calling, and emails from their own internal or third-party IT systems.
  • Targets developers and product managers.
  • Primarily voice and messaging interconnect services, operator software and services.
  • Target telecom operators and wholesale voice buyers.

10

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Disclaimer

Sinch AB (publ) published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 06:10:37 UTC.