Sinch : Financial Document

Contents

• 4 About Sinch

• 5 Sinch as an investment

• 6 Sinch in brief

• 8 CEO's comments

• 10 The year in brief

• 11 Market

• 14 Strategy

• 16 Customers

• 18 Offering

• 22 Acquisitions and integration

• 24 Financial model

• 26 Share

• 28 Sustainability report

• 48 Auditor's opinion

• 49 Message from the chair

• 50 Corporate governance statement

• 56 Board of directors and executive management

• 60 Auditor's report

• 61 Management report

• 70 Multi-year review - Group

• 72 Consolidated income statement

• 72 Consolidated statement of comprehensive income

• 73 Consolidated statement of financial position

• 74 Consolidated statement of changes in equity

• 75 Consolidated statement of cash flows

• 76 Parent company income statement

• 77 Parent company balance sheet

• 78 Parent company statement of changes in equity

• 79 Parent company statement of cash flows

• 80 Notes

• 122 Certification and signatures

• 123 Auditor's report

• 127 Definitions of financial terms

• 129 Annual general meeting, terms and acronyms, addresses

About Sinch

Sinch develops digital tools that let businesses and people talk to each other.

Sinch's leading cloud communications platform lets businesses reach everyone on the planet, in seconds or less, through mobile messaging, email, voice and video. More than 150,000 businesses, including many of the world's largest companies and mobile operators, use Sinch's advanced technology platform to engage with their customers. Sinch has been profitable and fast-growing since its foundation in 2008. It is headquartered in Stockholm, Sweden, and has local presence in more than 60 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us at investors.sinch.com..

About Sinch

Sinch as an investment

1

Strong position in a global and growing market

2

Industry leading product portfolio for customer communications

Sinch is a leading provider in the growing global mar- ket for communications platforms as a service (CPaaS) and mobile customer engagement. We have more than 150,000 business customers and our products are used by both small local businesses and the world's biggest tech companies.

Sinch's cloud-based communications platform lets businesses interact with their customers via SMS, other messaging channels, voice, email and video. We ensure that Sinch has the most competitive offering in every communications channel, that Sinch solutions are scalable and that Sinch delivers high quality world-wide. Our industry is characterized by rapid technical development and we are further strengthening our competitiveness through investments in next generation messaging and artificial intelligence.

3

Organic and acquired growth

Sinch has always had sharp focus on growing the organic business while delivering good profitability. In parallel, we have successfully executed and integrated several strategic acquisitions that create economies of scale while adding new technology and new sales channels. Sinch reinforced its market-leading position with five acquisitions in 2021 that have virtually doubled the company's gross profit and its workforce.

SEK

Adjusted EBITDA per share (SEK)1), RTM

SEK 2.0

0.0

0.5

1.0

1.5

1) The board of directors of Sinch has set a financial target to grow Adjusted EBITDA per share by more than 20 percent per year. Adjusted EBITDA is an

Alternative Performance Measure (APM) and is disclosed with the purpose of clarifying the development in the underlying business. The historical development of this APM is shown on the chart above. See also the "Definitions" section, pages 127-128.

Sinch Annual Report 2021