Sinch Ab · OMXSTO:SINCH

Sinch Ab — Merger or Acquisition (May 2020)

15 slides from Sinch Ab's merger presentation, May 5, 2020

  1. Slide 1: Acquisition of SAP Digital Interconnect

    Acquisition of SAP Digital Interconnect 5 May 2020 Oscar Werner CEO Roshan Saldanha CFO Thomas Heath Chief Strategy Officer & Head of Investor Relations

  2. Slide 2: Sinch at a glance

    SEK 5.6bn SEK 646m SEK 29bn 766 33 countries with revenue in the Adj. EBITDA in the Market Cap people local presence past 12 months past 12 months 40 billion Publicly listed on Customer engagement through mobile technology engagements per year NASDAQ in Stockholm Scalable cloud communications Servin

  3. Slide 3: Technology evolution in messaging

    Technology evolution in messaging Text Rich media Conversational notifications messaging messaging Next-generation messaging offers a step-change in customer experience 3

  4. Slide 4: CPaaS relevance throughout the customer journey

    CPaaS relevance throughout the customer journey S TA G E Revenue Service Customer generation enablement care OBJECTIVE Add revenues Use CPaaS functionality in Handle customer support Reduce churn own apps and products Improve customer Improve efficiency experience Reduce cost Reduce contact center c

  5. Slide 5: Playbook for profitable growth

    Playbook for profitable growth • Empower businesses to leverage rich and conversational messaging Software- • Increase our software value-add (CPaaS) in addition to our connectivity offering as-a-Service • Increase stickiness with maintained scalability • Ensure leading direct global connectivity wi

  6. Slide 6: Leveraging M&A to meet strategic objectives

    Leveraging M&A to meet strategic objectives • Complementary technology that fits our strategic product roadmap Technology & • Go To Market-ability in relevant products and geographies Go To market • Increased software value-add with higher gross margin • Future growth drivers • Acquire sticky custom

  7. Slide 7: Strategic acquisitions

    Strategic acquisitions Founded as CLX Networks IPO One brand 2016 2017 2018 2019 2020 2008 Technology & Innovation Go To Market Voice, video, Personalized Rich messaging, Conversational AI Next-generation verification video Low code tools messaging Scale and SAP Digital Interconnect SMS profitabilit

  8. Slide 8: Deal rationale

    Deal rationale • Global cloud communications provider with operations in Americas, Europe and Asia Pacific SAP Digital • Programmable Communications (67% of revenue), Carrier Messaging (28%), Enterprise Solutions (5%) Interconnect • 18bn business messages and 292bn person-to-person (P2P) messages in

  9. Slide 9: Programmable communications

    SAP Digital Interconnect Programmable communications Products Go To Market Customers • Programmable communications • Value proposition built on high • Broad base of blue-chip APIs, developer tools, and quality of service and enterprise customers digital interfaces international reach • Very strong c

  10. Slide 10: Carrier Messaging and Enterprise Solutions

    SAP Digital Interconnect Carrier Messaging Enterprise Solutions • 292 billion person-to-person (P2P) carrier messages • Contact Center 365 for end-to-end omnichannel processed during 2019 communications • Intelligent Hubbing 365 for dynamic routing of • On-premise person-to-person messaging between

  11. Slide 11: Sinch global footprint

    Sinch global footprint Country with local sales Scalable Messaging, Hundreds of mobile Super Network Five continents cloud platform voice & video operator connections 11

  12. Slide 12: Growing our scale and profitability

    Growing our scale and profitability MSEK Net sales MSEK Adjusted EBITDA 12,000 1,200 10,000 1,000 8,000 800 6,000 600 4,000 400 2,000 200 0 0 Sinch 2016 2017 2018 2019 L12M 2016 2017 2018 2019 L12M Wavy SDI MSEK Gross profit Employees 1,500 Synergies (Wavy & SDI) 3,000 2,500 1,250 2,000 1,000 1,500

  13. Slide 13: Financial leverage

    Financial leverage Pro forma net debt/Adjusted EBITDA 2.7 • Pro forma calculation include last 2.2 12 months of Adj EBITDA for acquired entities • Financial target is to maintain Net debt < 2.5x adjusted EBITDA over time -1.0 -0.9 -0.8 • Pro forma Net debt/Adj EBITDA of 2.7x is within the constraint

  14. Slide 14: Financial targets

    Financial targets Targets: • Adjusted EBITDA per share to grow Adjusted EBITDA per share, rolling 12 months 20% per year 14.0 • Net debt < 2.5x adjusted EBITDA over time 12.0 10.0 Performance: 8.0 6.0 • Adjusted EBITDA per share grew 52% in Q1 20, measured on a rolling 4.0 12 month basis 2.0 • Net d

  15. Slide 15: Thanks!

    Thanks! Copyright© 2019 CLX Communications AB (publ). All rights reserved. NDA Confidential. 15

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