Slide 1: Q2 2025 Investor Presentation
Q2 2025 Laurinda Pang, CEO IN V ES TOR P RES EN TATION Jonas Dahlberg, CFO J U L Y 22, 2025 Ola Elmeland, Investor Relations
Slide 2: Second quarter highlights
Second quarter highlights 01 02 03 Stable growth Resilient financial Product and performance innovation spotlight • Net sales grew 2% organically – Fourth • Gross margin 35% (34) • Exclusive direct two-way connectivity to consecutive quarter with organic growth all U.S. Tier-1 carriers for 10DLC • A
Slide 3: Advancing holistic AI capabilities
Advancing holistic AI capabilities Model Context Protocol AI Innovation AI Ecosystem Expansion Market Validation & (MCP) Implementation Recognition • Enables autonomous AI agent • Conversational Solution • Salesforce Agentforce: • 97% of businesses adopting communication across packages, offering pr
Slide 4: Sinch strategy for value creation
Sinch strategy for value creation Growth EBITDA margin Active capital reacceleration expansion allocation We are focused on profitable and We are reshaping our business to We are driving continued strong sustainable growth expand margins over time cash generation • Enterprise expansion • Product mix
Slide 5: Financials
Financials 5
Slide 6: Fourth consecutive quarter of organic net sales growth
Fourth consecutive quarter of organic net sales growth LTM Quarter 10 500 Reported net sales, SEKm 28 968 29 000 10 000 28 745 28 712 28 610 28 630 9 500 28 574 28 544 28 505 28 515 28 500 9 000 • 2% organic growth Q2 y/o/y 8 500 28 099 • Americas 2% 8 000 7 729 7 500 7 265 7 532 28 000 • EMEA 3% 7
Slide 7: Organic gross profit reacceleration
Organic gross profit reacceleration LTM Quarter Reported gross profit, SEKm 9 781 2 800 9 685 9 717 9 800 9 657 9 630 9 542 9 593 9 600 2 700 9 431 9 359 9 400 2 600 2 582 9 200 • 6% organic growth Q2 y/o/y – 8 974 2 526 9 000 Net sales growth, mix shift and 2 500 2 433 2 406 2 408 improved margins
Slide 8: All regions and product categories contributing to organic GP growth
All regions and product categories contributing to organic GP growth Gross profit, SEKm 2 526 2 582 2 526 2 582 2 433 2 386 2 406 2 408 2 433 2 386 2 406 2 408 2 322 2 312 2 322 2 322 2 312 2 322 504 574 617 593 564 505 536 518 536 548 554 544 522 504 516 520 521 540 390 425 355 391 388 380 532 535
Slide 9: Development by segment
Development by segment Americas EMEA APAC • 2% year-on-year organic growth in net • 3% year-on-year organic growth in net • 2% year-on-year organic growth in net sales and 6% organic growth in gross sales and 7% organic growth in gross sales and organic gross profit grew 3% profit profit • Gross mar
Slide 10: Positive margin development
Positive margin development Gross margin, % EBITDA margin, % EBITDA margin Adjusted EBITDA margin 36% 35.1% 16% 13% 13% 13% 13% 13% 13% 34.2% 12% 12% 12% 34.0% 33.9% 34% 33.5% 33.5% 33.6% 12% 33.4% 33.1% 12% 11% 11% 11% 11% 11% 8% 10% 11% 32% 4% 4% 0% 30% Q223 Q323 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 2
Slide 11: Cost control supporting Adj EBITDA
Cost control supporting Adj EBITDA Adj Opex, SEKm 2,000 • Q2 organic Adj OPEX +5% y/o/y, -4% reported 1,579 1,519 1,483 1,519 1,453 • Disciplined cost control and vigilance to potential 1,500 changes in the market 1,000 • Continued integrations to drive synergies and cost 500 efficiency 0 Q2 24 Q3 2
Slide 12: Reduced integration and restructuring costs
Reduced integration and restructuring costs Q2 2024 Change YoY Q2 2025 SEKm Adj EBITDA 867 2 869 Operational foreign • Adj EBITDA +8% organic y/o/y 34 -69 -35 exchange gains/losses • FX translational effects - 39 - 51 impacting Adj EBITDA, nullifying Integration costs - 12 reported growth Restructur
Slide 13: Solid cash flow in the quarter
Solid cash flow in the quarter Cash conversion from Adj EBITDA, LTM Cash flow after investments (FCF), SEKm 80% 72% 1,000 903 66% 61% 734 800 60% 50% 600 523 39% 40% 400 293 20% 200 -104 0 0% Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 -200 • Cash flow from operating activities after
Slide 14: Net Working Capital within normal variations
Net Working Capital within normal variations Net working capital, SEKm* • Net Working Capital within normal variations 3 861 4 181 4 245 4 551 3 949 3 962 4 232 4 152 3 945 4 066 • NWC somewhat elevated due to cost savings agreement with large supplier in Q1 – 1 190 1 273 1 176 -122 095 1 055 -102 8
Slide 15: Continued strengthening of the balance sheet
Continued strengthening of the balance sheet Net debt/Adjusted EBITDA R12m* • Continued strengthening of balance sheet with Net debt/Adj EBITDA now at 1.3x 1.7 • Reduced leverage in quarter mainly 1.6 1.5 driven by FCF and translation of 1.4 debt in foreign currency 1.3 • BoD resolved to activate sh
Slide 16: Second quarter highlights
Second quarter highlights 01 02 03 Stable growth Resilient financial Product and performance innovation spotlight • Net sales grew 2% organically – Fourth • Gross margin 35% (34) • Exclusive direct two-way connectivity to consecutive quarter with organic growth all U.S. Tier-1 carriers for 10DLC • A
Slide 17: Thanks!
Thanks! For more information, contact: Ola Elmeland Investor Relations Director investors@sinch.com
Slide 18: Pioneering the way the world communicates
175,000+ 900bn+ 60+ Scalable cloud communications business interactions countries with platform for messaging, customers per year local presence voice and email Pioneering the way the world communicates SEK 28.5bn SEK 9.7bn SEK 3.7bn net sales in the gross profit in the Adj. EBITDA in the past 12 mo
Slide 19: Income statement
Income statement SEKm Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 2024 R12M Net sales 6,792 7,041 7,150 7,729 7,049 6,616 28,712 28,544 Cost of services sold -4,480 -4,655 -4,744 -5,147 -4,641 -4,294 -19,026 -18,827 Gross profit 2,312 2,386 2,406 2,582 2,408 2,322 9,685 9,717 Operating expenses -1,544 -1,59
Slide 20: Cash flow
Cash flow SEKm Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 2024 R12M Profit or loss before tax 40 21 -5,963 -333 -8 80 -6,235 -6,224 Adjustment for non-cash items 574 594 6,754 991 738 740 8,914 9,224 Income tax paid -57 -147 -99 -45 -111 -334 -348 -589 Cash flow before changes in working capital 557 468 69
Slide 21: Cash conversion
Cash conversion SEKm Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 2024 R12M Adjusted EBITDA 794 867 923 1,003 889 869 3,587 3,683 Net interest paid -131 -130 -117 -103 -76 -73 -480 -369 Paid taxes -57 -147 -99 -45 -111 -334 -348 -589 Other items -49 -122 -15 -242 -83 24 -428 -315 Cash flow before changes in