Sinch : Financial Document

Restated historical segment reporting

Roshan Saldanha, CFO

Thomas Heath, Chief Strategy Officer

Ola Elmeland, Investor Relations Director

APRIL 16, 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 28.7bn

net sales in the past 12 months

SEK 9.5bn

gross profit in the past 12 months

SEK 3.6bn

Adj. EBITDA in the past 12 months

2

Changes to our reporting

01

Reporting changes from Q1

• Sinch announced changes to its operating model on 26 October 2023.
• New organization implemented from 1 January 2024.
• Updated external reporting matches changed internal governance and accelerated product integration.
• Proforma figures for 2023 are available atinvestors.sinch.com.

02

Three operating segments

• Integrated sales force now tasked to sell the full Sinch portfolio.
• Regional structure with three operating segments:
• • Americas
    EMEA APAC
• Replaces earlier segments Messaging, Voice, Email, SMB.
• Will disclose Net sales and Gross profit by segment.

03

New product categories

• Financial performance by product supplements regional segment reporting.
• Updated product categories reflect accelerated product integration and focus on cross- and upselling:
• • Applications API Platform Network Connectivity

3

New reporting vs earlier disclosure

Previous operating segments

New operating segments

Complementary

product view

SMB

APAC

Applications

Email

EMEA

Voice

API Platform

Americas

Messaging

Network

Connectivity

Relative size reflects share of gross profit in 2023.

4

Three operating segments

Americas	EMEA	APAC

• Includes both North and Latin America.
• United States is the largest revenue contributor.
• Led by Julia Fraser, EVP Americas.
• 45% of all Sinch employees work in the region (across all functions).

• United Kingdom and France are the largest contributing countries by revenue.
• Led by Nicklas Molin,
  EVP EMEA.
• 30% of all Sinch employees work in the region (across all functions).

• India and Australia are the largest contributing countries by revenue.
• Led by Wendy Johnstone,
  EVP APAC.
• 25% of all Sinch employees work in the region (across all functions).

5

Key financials by segment

SEKm	Americas	EMEA	APAC	Total
Headline financials
Net sales	17,900	6,953	3,892	28,745
Gross profit	6,008	2,116	1,418	9,542
Gross margin (%)	33.6%	30.4%	36.4%	33.2%

Share of group total
Net sales	62%	24%	14%	100%
Gross profit	63%	22%	15%	100%

Figures refer to the full year 2023.

6

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.

7

Product categories by segment

	Americas	EMEA	APAC	Total
Net sales
Applications	6%	13%	31%	11%
API Platform	67%	78%	67%	70%
Network Connectivity	27%	9%	3%	19%
	100%	100%	100%	100%
Gross profit
Applications	13%	29%	51%	22%
API Platform	56%	69%	46%	55%
Network Connectivity	31%	12%	3%	23%
	100%	100%	100%	100%

Percentages refer to share of Net sales and Gross profit, within each Operating segment, in 2023.

8

Previous segments vs new products

Share of total	Messaging	Voice	Email	SMB
Net sales
Applications	3%	1%	24%	100%
API Platform	92%	26%	76%	-
Network Connectivity	5%	73%	-	-
	100%	100%	100%	100%
Gross profit
Applications	11%	2%	23%	100%
API Platform	81%	36%	77%	-
Network Connectivity	8%	62%	-	-
	100%	100%	100%	100%

Percentages refer to share of Net sales and Gross profit, within each previous operating segment, in 2023.

9

Updated Opex disclosure

Previously reported Adjusted Opex by segment

Other

SMB

Email

Voice

Messaging

Will now report group Adjusted Opex by function

Sales &

marketing

Research &

development

General &

administrative

• Sinch reports group costs by nature, this remains unchanged.
• Opex, EBITDA and Adjusted EBITDA will be reported for the group, but not by operating segment.
• For increased visibility, Sinch will add complementary disclosure of group Adjusted OPEX by function.

Adjusted Opex = Gross profit - Adjusted EBITDA. Adjusted Opex hence excludes depreciation, amortization and impairments.	10
R&D expenses exclude capitalized R&D.