Slide 1: Q4 2021 Investor Presentation
Q4 2021 Investor Presentation 17 February 2022 Oscar Werner, CEO Roshan Saldanha, CFO Thomas Heath, Chief Strategy Officer & Head of Investor Relations
Slide 2: A global leader in cloud communications and mobile customer engagement
SEK 16,2bn SEK 80bn SEK 1.3bn 4,090 62 countries with net sales in the Market Cap Adj. EBITDA in the people local presence past 12 months past 12 months a global leader in cloud communications Over 150,000 Listed on NASDAQ in Stockholm, Sweden and mobile customer engagement customers Scalable cloud
Slide 3: Fourth quarter highlights
Fourth quarter highlights 01 02 03 Strengthened position as Factors affecting organic Focus areas for 2022 global leader in CPaaS earnings growth • Net sales growing 74%, Gross • Strong comparison quarter • Capitalizing on strong market profit 69% and Adj EBITDA 25% position to drive growth • Minimu
Slide 4: Gross profit evolution
Gross profit evolution Gross profit, SEKm • Tough comparables in Q4 2021 • Minimum commitment to a Organic Acquisitions FX +63% +2% multinational global mobile operator SEKm +5% 15 1,348 causing a 5% negative impact on 1,400 155 GP in Q2 2022 64 1,200 142 • Unable to immediately pass on full 141 1,0
Slide 5: Opex development
Opex development Adjusted Opex, SEKm • Slower opex growth in 2020 due to Covid-19 outbreak 877 800 • Increased opex base during 2021 228 – Sales & product initiatives 586 597 600 524 551 – Preparations for upcoming, large acquisitions 418 400 Includes 37m – Businesses acquired during 649 bad debt 52
Slide 6: Inteliquent
Inteliquent The largest independent voice communications provider in the United States. • Transaction closed 9 December Inteliquent proforma Net sales and Gross profit (SEKm) • Adj EBITDA in Q421 of SEK 325m, implying a 26% margin 1,400 7,000 1,263 1,262 1,200 1,209 1,222 6,000 • 7% organic net sale
Slide 7: MessageMedia
MessageMedia Leading mobile messaging solutions for small and medium sized businesses (SMB) in the United States and Australia, New Zealand, and Europe. • Transaction closed 5 November MessageMedia proforma Net sales and Gross profit (SEKm) • Adj EBITDA in Q421 of SEK 100m, implying a 26% margin 450
Slide 8: Pathwire
Pathwire The best-in-class email deliverability platform for transactional and marketing email. • Transaction closed 7 December Pathwire proforma Net sales and Gross profit (SEKm) • Adj EBITDA in Q421 of SEK 113m, implying a 37% margin 350 1,400 300 280 303 1,200 • 32% organic net sales growth and 1
Slide 9: New operating model
New operating model Enterprise & Developer & Business Unit Voice Applications SMB Messaging Email President President President President President Anders Olin Ed O’Hara Will Conway Eduardo Henrique Paul Perrett • 46% of proforma GP* • 32% of proforma GP • 11% of proforma GP • 11% of proforma GP Fin
Slide 10: Financials
Financials CAD sinch
Slide 11: Income statement
Income statement Q4 Q4 SEKm 2021 2020 2021 2020 Net sales 5,207 2,999 16,177 8,023 • Adjusted EBITDA is different from Cost of goods sold and services -3,860 -2,204 -12,244 -5,840 EBITDA primarily due to acquisition Gross profit 1,348 796 3,933 2,183 costs, integration costs, and share- Other operat
Slide 12: Reconciling Cash flow with Adjusted EBITDA
Reconciling Cash flow with Adjusted EBITDA Q4 Q4 • High conversion of Adjusted SEK million 2021 2020 2021 2020 EBITDA to cash flow Adjusted EBITDA 471 234 1,322 989 Paid interest Paid taxes 0 -126 -8 -28 -34 -253 -30 -101 • Other items positively impacted by Other items 140 -43 142 -256 realized cur
Slide 13: Cash flow
Cash flow Q4 Q4 SEKm 2021 2020 2021 2020 Cash flow before changes in working capital 486 155 1,177 602 • Positive net working capital Change in working capital -24 -207 -859 -148 excluding acquisitions Cash flow from operating activities 462 -52 318 454 • Acquisitions and financing related Net inves
Slide 14: Cash flow reclassification
Cash flow reclassification Q1 Q2 Q3 Q4 SEKm 2021 2021 2021 2021 Cash flow before changes in working capital 226 221 244 486 • Part of the financing for Wavy was Change in working capital 361 -461 -735 -24 recognised as “New share issue” in Cash flow from operating activities 587 -240 -491 462 Q1 202
Slide 15: Financial targets
Financial targets Adjusted EBITDA per share, rolling 12 months Targets: 2.00 • Adjusted EBITDA per share to grow 20% per year • Net debt < 3.5x adjusted EBITDA 1.50 over time 1.00 Performance: • Adjusted EBITDA per share grew 0.50 12% in Q4 21, measured on a rolling 12 month basis 0.00 • Net debt/EB
Slide 16: Financial leverage
Financial leverage Pro forma net debt/Adjusted EBITDA • Pro forma calculation includes last 8.1 12 months of Adj EBITDA for acquired entities • Financial target is to maintain Net debt < 3.5x adjusted EBITDA over 3.2 2.9 time • Pro forma Net debt/Adj EBITDA of 3.2x, or 2.9x excluding IFRS 16- Net de
Slide 17: Transforming into a global leader
Transforming into a a global leader Rising gross profit and broadened product mix 7,743 11% SMB 11% Email 3,933 32% Voice 2,183 Messaging incl. 46% Applications 2020 2021 2021 proforma Gross profit in SEKm. 17
Slide 18: Thank you!
Thank you! To get in touch, contact: Ola Elmeland, Investor Relations Director Thomas Heath, Chief Strategy Officer & Head of Investor Relations investors@sinch.com