Sinch Ab · OMXSTO:SINCH

Sinch Ab — CLX Communications — Q1 2018 Earnings Presentation

18 slides from Sinch Ab's earnings presentation, May 18, 2018

1. Slide 1: 18Q1 Interim Report

   18Q1 INTERIM REPORT Stockholm, May 18, 2018 Johan Hedberg President and CEO, CLX Communications AB (publ) Odd Bolin CFO, CLX Communications AB (publ) Thomas Heath Chief Strategy Officer and Head of Investor Relations, CLX Communications AB (publ) Important information This communication may contain

2. Slide 2: Highlights 18Q1

   HIGHLIGHTS 18Q1 Johan Hedberg, CEO Copyright© 2018 CLX Communications AB (publ). All rights reserved. 2

3. Slide 3: 18Q1 Summary CLX Group

   18Q1 SUMMARY CLX GROUP ▪ Successful restructure of Enterprise sales team delivering 16 percent organic growth in 18Q1, hired APAC regional director. ▪ 2017 was the year we established relationships with many US-based, global digital-native companies. Recent successful launch of one key customer and

4. Slide 4: Unwire Acquisition

   UNWIRE ACQUISITION Strengthening our position in the Nordics ▪ Established position with key clients in Nordic banking & finance ▪ More than 300 enterprise customers overall ▪ Successful track-record through value-based sales process ▪ Positive impact on CLX margins ▪ Phased integration approach to

5. Slide 5: Vehicle Acquisition

   VEHICLE ACQUISITION Personalized video technology ▪ Leading provider of personalized video messaging ▪ Proven use cases with leading mobile operators who significantly reduce churn ▪ Cross-selling potential to existing CLX messaging customers ▪ Key building block for enhanced customer proposition in

6. Slide 6: Innovative Solutions in Voice and Video

   INNOVATIVE SOLUTIONS IN VOICE AND VIDEO ▪ Cloud-based capabilities in voice and ▪ Targeted sales effort now focusing on real-time video ride-hailing vertical ▪ Temporary phone numbers for each driver safeguards privacy and safety Copyright© 2018 CLX Communications AB (publ). All rights reserved. 6

7. Slide 7: Financials

   FINANCIALS Odd Bolin, CFO Copyright© 2018 CLX Communications AB (publ). All rights reserved. 7

8. Slide 8: January – March 2018

   JANUARY – MARCH 2018 ▪ Gross profit increased to SEK 200.0 million vs. 191.3 in 17Q1 ▪ EBITDA was SEK 53.2 million (70.8) ▪ Adjusted EBITDA was SEK 65.0 million (80.9) ▪ EBIT was SEK 20.3 million (41.1) ▪ Net profit for the quarter was SEK 9.2 million (33.4) ▪ Operator division disappointing, slower

9. Slide 9: Enterprise – Results and Events in 18Q1

   ENTERPRISE – RESULTS AND EVENTS IN 18Q1 ▪ EBITDA flat at SEK 71.8 million compared to 71.4 in 17Q1. ▪ Very strong customer pipeline, in particular within US-based global enterprises. ▪ Increase in OPEX during the quarter, primarily due to final phase of Nova platform project and customer migrations.

10. Slide 10: Operator – Results and Events in 18Q1

    OPERATOR – RESULTS AND EVENTS IN 18Q1 ▪ Underlying business is developing as planned, but slow conversion of sales pipeline and orders to projects and revenue, as well as a lack of capacity expansion projects during the quarter impacted revenue and profitability. ▪ Strong focus on conversion and clo

11. Slide 11: Sinch, Vehicle, IoT & RCS

    SINCH, VEHICLE, IOT & RCS ▪ Sinch is continuing to invest in increased functionality and customer- adaptions. ▪ Ride-sharing is developing favorably, and further markets are set to go live during the remainder of the year. ▪ Vehicle is developing well, with increasing revenue and very considerable i

12. Slide 12: Key Metrics

    KEY METRICS Enterprise division: ▪ Gross profit – we use gross profit as our key measure since gross margin depends on geographical traffic mix, which we have limited influence over. ▪ Adjusted EBITDA/gross profit – measures operational efficiency in the business. ▪ OPEX per transaction – measures o

13. Slide 13: Enterprise - Gross Profit and Transaction Development

    ENTERPRISE - GROSS PROFIT AND TRANSACTION DEVELOPMENT ▪ Gross profit flat vs 17Q4, despite seasonal effects ▪ Gross profit up by 16 percent vs 17Q1, but… ▪ 17Q1 was weak ▪ Some positive periodization effects ▪ Positive long-term outlook Copyright© 2018 CLX Communications AB (publ). All rights reserv

14. Slide 14: Enterprise – Operational Efficiency

    ENTERPRISE – OPERATIONAL EFFICIENCY ▪ Operational efficiency increasing due to economies of scale ▪ Gross profit is the primary bottom line driver ▪ Revenue and gross margin are both heavily dependent upon mix of terminating markets ▪ Increase in OPEX during 18Q1 creates a temporary dent in EBITDA/G

15. Slide 15: Way Forward

    WAY FORWARD Johan Hedberg, CEO Copyright© 2018 CLX Communications AB (publ). All rights reserved. 15

16. Slide 16: Next Generation Enterprise Messaging

    NEXT GENERATION ENTERPRISE MESSAGING Branding RCS = SMS “2.0” Customize with your Real Time Feedback company name, colour and Know when your customer has received and read your message and whether your logo. customer is typing you a response to your message. Know if your customer has tapped on links

17. Slide 17: Personalized Video

    PERSONALIZED VIDEO ▪ Drive nearly perfect open rates while driving 4.5 higher click-thru rate (than email). ▪ The secret weapon of digital direct is mobile messaging. ▪ Nearly 100 percent device reach and 98 percent open-rate. ▪ With CLX mobile messaging platform, you can deliver a wide range of med

18. Slide 18: Q&A

    Q&A Copyright© 2018 CLX Communications AB (publ). All rights reserved. 18

CLX Communications — Q1 2018 Earnings Presentation on 6ix