Sinch Ab · OMXSTO:SINCH
Sinch Ab — Merger or Acquisition (September 2021)
22 slides from Sinch Ab's merger presentation, Sep 30, 2021
Slide 1: Acquisition of Pathwire
Acquisition of Pathwire 30 September 2021 Oscar Werner, CEO Roshan Saldanha, CFO Thomas Heath, Chief Strategy Officer & Head of Investor Relations
Slide 2: Customer engagement through mobile technology
SEK 11.8bn SEK 132bn SEK 1.2bn 2,292 47 countries with revenue in the Market Cap Adj. EBITDA in the people local presence past 12 months past 12 months Listed on NASDAQ Customer engagement through mobile technology in Stockholm, Sweden Scalable cloud communications 170 billion B2C Serving 8 of the 1
Slide 3: Transaction highlights
Transaction highlights Empowering developers and marketeers to succeed 01 Leading cloud-based email communications platform with the world’s most-used digital communication channel Fast setup, easy integration. Proven digital 02 Proven, developer-centric go-to-market model go-to-market model resulti
Slide 4: CPaaS throughout the customer journey
CPaaS throughout the customer journey Marketing Operations Customer Service • Generate leads • Use CPaaS functionality • Handle customer support • Add revenues in own apps and products • Improve customer • Reduce churn • Improve efficiency experience • Reduce cost • Reduce contact center cost • Emai
Slide 5: Strengthening our developer go-to-market
Strengthening our developer go-to-market Enterprise Developer SMB* • Online lead-generation • Online self-signup • Online self-signup • Lead with APIs and SaaS • Lead with APIs • Lead with SaaS & integrations • Target enterprise customers and • Target developers, who may work • Target small and medi
Slide 6: Improved margin profile and balanced product mix
Improved margin profile and balanced product mix Gross margin & Adjusted EBITDA margin Gross profit by product 40% 100% 35% 10% 22% 19% 33% 30% 75% 13% 25% 18% 16% Other 20% 50% Operators 16% 85% Email 14% Voice & Video 10% 59% 10% 25% 51% Messaging 0% 0% Gross margin Adj EBITDA margin L12M Q2 21 L1
Slide 7: Establishing a global leader in CPaaS
Establishing a global leader in CPaaS 2019 2021 Source: IDC MarketScape: Worldwide Communications Platform-as-a-Service (“CPaaS”) 2021 Vendor Assessment (doc #US46746221, May 2021). An excerpt is available on sinch.com 7
Slide 8: Target market by product
Target market by product Programs Tools L5 – Solutions Visual Marketplace Builders (internal and Unified Campaign Remote Tele- Emergency Contact Center CRM partners) Communications Manager Learning medicine services • CPaaS tech stack as illustrated L4 – Intelligence/AI Templates by Gartner • Email
Slide 9: 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
Slide 10: Recent transactions
Recent transactions SAP Digital Interconnect Rich messaging, Conversational Low code tools Conversational AI messaging Technology & Go To Market Voice, video, Personalized Conversational Email Voice SME verification video messaging Developer GTM Australia, Americas, Southeast Asia Europe, APAC Scale
Slide 11: Deal rationale: Pathwire
Deal rationale: Pathwire • Founded in 2010 • Leading developer-centric cloud-based email communications platform Pathwire • More than 100,000 paying customers using Mailgun and Mailjet products • Headquarters in San Antonio, Texas, with around 290 employees worldwide • Gain leading product offering
Slide 12: Transactional and marketing email
Transactional and marketing email 146bn business emails sent daily1 7.7bn email accounts worldwide1 $16bn market size, with Source: (1) Radicati Group, Email Statistics Report, 2021-2025 (2) Technavio Research, Global Transactional and Marketing Emails Market, 2021-2025 >60% relating to transactiona
Slide 13: Sending email is complicated
Sending email is complicated Sending to a mailbox is easy, but sending Over 90% of incoming email is blocked by Deliverability is the rate in which your to the inbox is another story entirely. inbox service providers, with only 8% of messages are being sent to the inbox. all email traffic maki
Slide 14: Mailgun: API platform for developers
Mailgun: API platform for developers • Email sending • 20+ API’s, SDK’s and plugins for • Email routing developers • Send time • Fast onboarding; product is usable optimization in <1 minute • Logs analytics • High performance for time-sensitive • Suppression email messages management • Domain and IP
Slide 15: Mailjet: sending platform for marketeers
Mailjet: sending platform for marketeers • Email editor • One of the most advanced • Collaboration drag-and-drop email builders on the • Campaign market management • Seamless collaboration features for • Contact designers and developers management • Advanced automation to onboard • A/B testing new r
Slide 16: Pathwire manages the entire email lifecycle
Pathwire manages the entire email lifecycle VALIDATE DEFINE CREATE TEST SEND OPTIMIZE Collect real email Segment your audience Create beautiful emails Ensure your email Fast and reliable Advanced analytics and addresses and clean to deliver personalized that reflects your brand renders perfectly and
Slide 17: Loved by developers, trusted by businesses
Loved by developers, trusted by businesses nekoashide on Jan 31, 2020 “Mailgun makes it easy to track the delivery “We went from a few thousand emails on of emails without maintaining our own email Mailgun to almost 7 million emails across infrastructure, subscribing to spam feedback 140 domains and
Slide 18: Flexible pricing & packaging
Flexible pricing & packaging 18
Slide 19: Track record of profitable growth
Track record of profitable growth Proforma gross profit and Adjusted EBITDA • Focus on Gross profit since pass- through revenues vary between 8.0 products and geographies 7.0 Pathwire • Acquisitions adding significantly to 6.0 our scale and profitability MessageMedia • Investing to increase growth i
Slide 20: Financial targets
Financial targets Targets: Adjusted EBITDA per share, rolling 12 months • Adjusted EBITDA per share to grow 20% per year 2.0 • Net debt < 3.5x adjusted EBITDA over time 1.5 1.0 Performance: • Adjusted EBITDA per share grew 0.5 38% in Q2 21, measured on a rolling 12 month basis 0.0 Mar Jun Sep Dec Ma
Slide 21: Financial leverage
Financial leverage Pro forma net debt/Adjusted EBITDA 2.6 2.7 2.7 • Pro forma calculation includes last 12 months of Adj EBITDA for 0.5 acquired entities -0.5 • Updated financial target is to maintain Net debt < 3.5x adjusted EBITDA over time • Pro forma Net debt/Adj EBITDA of -8.8 2.7x after paymen
Slide 22: Thank you!
Thank you! To get in touch, contact: Thomas Heath, Chief Strategy Officer & Head of Investor Relations Ola Elmeland, Investor Relations investors@sinch.com