Sinch Ab · OMXSTO:SINCH

Sinch Ab — Q4 2018 Earnings Presentation

18 slides from Sinch Ab's earnings presentation, Feb 22, 2019

1. Slide 1: Q4 2018 Investor Presentation

   Q4 2018 Investor Presentation 22 February 2019 Oscar Werner CEO Thomas Heath Chief Strategy Officer & Head of Investor Relations

2. Slide 2: Sinch at a glance

   Sinch ata glance We deliver customer engagement through mobile technology Scalable cloud communications platform for messaging, voice and video 100% consumer penetration Growing, global, multi-billion dollar market We serve 8 out of 10 of the largest US tech companies Software for mobile operators b

3. Slide 3: Growth markets

   Growth markets (oe) Messaging Application-to-Person (A2P) messaging is used across the world for ever-more use cases * We believe a USD 10bn market size estimate is reasonable * Third-party market size estimates vary between USD 10-50bn « Large variation in usage between markets « We foresee continu

4. Slide 4: Successful rebrand from brands to Sinch

   Successful rebrand from 4 brands to 1 CLX Symsoft> nh!

5. Slide 5: Sinch

   sinch

6. Slide 6: Connect with customers and make engagement personal

   SINGH sana Hears creme waren engagement to retail : ON eg yor Connect with customers and make engagemént personal with our simple, programmable communication tools & operator software. -* t Bringing enriched | £

7. Slide 7: Sinch products and services

   SINCH ——proovcrs nsicnts oevevorers wir sen oe SMS MESSAGING PERSONALIZED MESSAGING Rich Media, SMS MESSAGING 'S, MMS, " VERIFICATION SMS, Flash C VOICE CALLING ENTERPRISE MESSENGER D ing, Ph NUMBER MASKING. White AQP Services Anonymous P um VIDEO CALLING RCS AS A SERVICE VALUE ADDED SERVICES ing SD

8. Slide 8: Q4 2018

   Q4 2018 A & 7) < © = Li

9. Slide 9: October - December 2018

   October - December 2018 * Gross profit grew 55% to SEK 309.9 million (199.8) * Adjusted EBITDA increased by 56% to SEK 109.4 million (70.1) ¢ EBIT of SEK 107.7 million (31.1) ¢ Profit after tax of SEK 103.5 million (90.3) * Rising Gross Profit and EBITDA in all business units * Organic growth and co

10. Slide 10: Rising volumes

    Rising volumes 22 2.0 18 1.6 14 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Number of A2P-transactions per month (billions) slolalalslelalelchdst 2016 | slalalalslelalelehdst 2017 | sbolalalslelalel obit 2018 | Continued growth with existing customers New customers, new use cases 42% increase in Gross Profit in the

11. Slide 11: Operational efficiency

    Operational efficiency EBITDA/gross profit, OPEX/transaction and Gross profit/transaction (SEK) 60% 0.06 50% 0.05 _ a a ae -_ 30% 0.03 20% ear 0.02 10% 0.01 0.00 tfolalalslel tel shiolulis 2018 tLalslalslel zlels loli. 2017 —— EBITDA/GP (R3M) ——— OPEX/transaction (R3M) ——— GP/transaction (R3M) Gross

12. Slide 12: Gross Profit

    Gross Profit 1704 Acquisitions +16% Organic +39% VT 5 17 10 0 || u § 7 | |_| £ 8 8 8 $3 & ES rat a g 2&3 5 5 $ 5 8 SF c (e) Ww 310 18 Q4 55% growth in Gross Profit Rising Gross Profit in all business units Organic growth helped by key client wins in the U.S. CA Organic growth in the chart includes t

13. Slide 13: Adjusted EBITDA

    Adjusted EBITDA SEKm Acquisitions £28% Organic +33% 120 9 “4409 Ce 100 8 . . H 5 m * 56% growth in Adjusted EBITDA _ 80 70 * Higher Adjusted EBITDA in all business units 60 ¢ Strong end to the year in Operator 40 * Positive Adjusted EBITDA in 20 Voice & Video 0) oF @ 2 x 5 co 5 x C ¢ £2 & & 88 2 § f

14. Slide 14: Financial targets

    Financial targets Targets: + Adjusted EBITDA per share to grow 20% per year Adjusted EBITDA per share, rolling 12 months + Net debt < 2.5x adjusted EBITDA over time 7.00 6.00 Performance: 5.00 + Adjusted EBITDA per share grew 4.00 20% in Q4 18, measured on a rolling 3.00 12 month basis 2.00 * Net de

15. Slide 15: Positive EBITDA in Voice & Video

    Positive EBITDA in Voice & Video 40 35 30 25 20 a 1 a So ° -10 aga gigl Sinch Voice & Video (SEKm) 2018 "Revenue ™Gross Profit @ EBITDA Acquired in December 2016 Now seeing impact from targeted effort towards ride hailing vertical Key client wins in Number Verification CA

16. Slide 16: Rising support for RCS

    Rising support for RCS * RCS is an upgrade to SMS with support for rich media, interactivity, branding and verified senders @ © a0 Your nest fight to LAX is 48 hours away. Here is your boarding pass, we ¢ App-like experience without any 2 130 downloads OES rer * Verizon set to launch RCS in 2019 YWG

17. Slide 17: Future growth

    Future growth foe) Strong pipeline with several US-based, global tech companies Considerable interest in Personalized Video More customer engagements in Number Verification Number Masking for ride-hailing with further markets set to go live Investment in rich media, conversational messaging, RCS and

18. Slide 18: Thanks!

Sinch — Q4 2018 Earnings Presentation on 6ix