Sinch : Financial Document

Q4 2021

Investor Presentation

17 February 2022

Oscar Werner, CEO

Roshan Saldanha, CFO

Thomas Heath, Chief Strategy Officer & Head of Investor Relations

SEK 16,2bn	SEK 80bn	SEK 1.3bn	4,090	62 countries with
net sales in the	Market Cap	Adj. EBITDA in the	people	local presence
past 12 months		past 12 months

a global leader in cloud communications

and mobile customer engagement

Over 150,000	Listed on NASDAQ
customers	in Stockholm, Sweden

Scalable cloud communications	More than 600 billion	Serving 8 of the 10 largest
platform for messaging, voice and video	engagements per year	U.S. tech companies

100%	Consumer	Growing, global, multi-billion	$	Profitable since our
	penetration	USD market	foundation in 2008

* Consolidated figures as of Q4 2021. MessageMedia, Inteliquent, MessengerPeople, Pathwire, SDI and Wavy consolidated less than 12 months.

Fourth quarter highlights

01

Strengthened position as global leader in CPaaS

• Net sales growing 74%, Gross profit 69% and Adj EBITDA 25%
• Adjusted EBITDA of SEK 471m and operating cash flow of SEK 462m
• Transformative acquisitions positioning Sinch as the leading profitable CPaaS company
• Full year proforma Net sales at SEK 23.1bn with GP at SEK 7.7bn

02

Factors affecting organic earnings growth

• Strong comparison quarter
• Minimum commitments to a multinational mobile operator, in combination with low traffic volume, had a 5% (SEK 34m) negative effect on Gross profit in Q4
• Bad debt relating to one customer added SEK 37m to Opex in Q4
• Continued effect of previously communicated price adjustments

03

Focus areas for 2022

• Capitalizing on strong market position to drive growth
• Cost control in Messaging and group functions to ensure that costs do not grow faster than Gross profit
• New operating model with full P&L responsibility for Business Unit Presidents

3

Gross profit evolution

Gross profit, SEKm

	Organic		Acquisitions	FX
SEKm		+5%		+63%		+2%
1,400					155	15	1,348
1,200				142	64
1,000			141
796	36
800
600
400
200
0	Q4 20	Organic	Inteliquent	Message	Pathwire Other M&A	FX	Q4 21
				Media

• Tough comparables in Q4 2021
• Minimum commitment to a multinational global mobile operator causing a 5% negative impact on GP in Q2 2022
• Unable to immediately pass on full carrier price increases in Brazil and India
• Price adjustments causing new sales to contribute lower margins than existing business
• 10% underlying GP growth in local currency excluding impact of pre- commitments

4

Opex development

Adjusted Opex, SEKm

											877
800
												228
600	524	551	586	597
400	418
														Includes 37m
	524	532	547	556	649		bad debt
200	418

0

Q4	Q4 with 3	Q1		Q2	Q3	Q4
as reported	months of SDI
2020				2021
				Sinch & SDI		Other acquisitions

• Slower opex growth in 2020 due to Covid-19 outbreak
• Increased opex base during 2021
• • Sales & product initiatives
  • Preparations for upcoming, large acquisitions
  • Businesses acquired during 2022 adding further Opex
• SEK 37m one-time impact on Opex in Q4 21 due to bad debt from a specific voice customer
• 17% underlying opex growth in Sinch+SDI excluding one-off

Adjusted Opex = Gross profit - Adjusted EBITDA	5