Sinch Ab · OMXSTO:SINCH

Sinch Ab — Merger or Acquisition (February 2021)

16 slides from Sinch Ab's merger presentation, Feb 17, 2021

  1. Slide 1: Acquisition of Inteliquent

    Acquisition of Inteliquent 17 February 2021 Oscar Werner CEO Roshan Saldanha CFO Thomas Heath Chief Strategy Officer & Head of Investor Relations

  2. Slide 2: Sinch at a glance

    SEK 6.6bn SEK 786m SEK 96bn 1,792 47 countries with revenue in the Adj. EBITDA in the Market Cap people local presence past 12 months past 12 months 120 billion Publicly listed on Customer engagement through mobile technology engagements per year NASDAQ in Stockholm Scalable cloud communications Ser

  3. Slide 3: Global scale and leadership

    Global scale and leadership 6,000 • Focus on Gross profit since 5,000 passthrough revenues vary between 4,000 Inteliquent geographies SEK million 3,000 ACL SDI • Acquisitions adding significantly to 2,000 Wavy Inteliquent Synergies our scale and profitability Inteliquent adds 62% to full year ACL 1,

  4. Slide 4: Adding voice & strengthening our US presence

    Adding voice & strengthening our US presence Gross Profit, rolling 12 months* Headcount distribution* 191 132 131 Messaging Voice & Video Operators Europe North America Asia Latin America Share Share of total: 42% 29% 29% of total: 32% 30% 25% 15% Sinch Inteliquent * Pro forma as of Q3 2020, includi

  5. Slide 5: Playbook for profitable growth

    Playbook for profitable growth • Empower businesses to leverage rich and conversational messaging Software- • Increase software value-add (CPaaS) in addition to our connectivity offering as-a-Service • Increase stickiness with maintained scalability • Ensure leading direct global connectivity withou

  6. Slide 6: 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

  7. Slide 7: Strategic acquisitions

    Strategic acquisitions Conversational AI Technology & Innovation Go To Market Voice, video, Personalized Rich messaging, Next-generation verification video Low code tools messaging 2016 2017 2018 2020 2021 Scale and profitability USA, Australia, SMS Western Europe South East Asia Brazil Latin Americ

  8. Slide 8: Deal rationale

    Deal rationale • Largest independent voice communications provider in the United States Inteliquent • 300+ billion voice minutes per year and 100+ million active phone numbers • Around 600 employees including contractors with headquarters in Chicago, Illinois • Establish Sinch as a leader in voice c

  9. Slide 9: CPaaS driving demand for voice

    CPaaS driving demand for voice CPaaS revenues, 2019-24 (USDbn) 17.7 • CPaaS voice expected grow with a 13.4 33% CAGR in 2019-24 • Growth driven by continued digital 10.1 transformation and increased use of API-based voice products 7.5 5.6 • Increased convergence of voice and 4.3 messaging 7.4 5.6 3.

  10. Slide 10: The Gartner CPaaS stack

    The Gartner CPaaS stack Programs Layers Tools L5: Marketplace Visual Builders Internal Marketplace Partner Marketplace • Focus on Gartner levels 1-3 Customer Success L4: Complete Solutions Plans SDKs and IDE Contact Unified Remote CRM Telemedicine Connected • Differentiate by quality Center Communic

  11. Slide 11: America's leading Super Network for Voice

    America’s leading Super Network for Voice • 100+ million phone numbers powered by our network • 300+ billion minutes of use on our network annually • 37% greater local number coverage than other providers • 99.999% uptime backed by 43 geo-redundant points of presence across the U.S. 11

  12. Slide 12: Serving the category leaders in every sector

    Serving the category leaders in every sector • Top 5 Collaboration Companies • Top 5 Wireless Carriers • Top 5 Communications • Top 5 Cable Companies Platform Companies • Top 5 Wireline Companies • 10 of Top 12 VoIP Companies 12

  13. Slide 13: CPaaS IaaS

    CPaaS IaaS • Full service provider of inbound • Strategic relationships with and outbound voice calling major wireless carriers • Unrivalled access to local phone • IP-based voice interconnection numbers across the US for off-net call termination • API-based delivery model • Outbound traffic routing

  14. Slide 14: Financial leverage

    Financial leverage Pro forma net debt/Adjusted EBITDA • Pro forma calculation includes last 12 months of Adj EBITDA for acquired 3.7 entities • Financial target is to maintain Net 1.4 debt < 2.5x adjusted EBITDA over time • Pro forma Net debt/Adj EBITDA of 3.7x to decline ahead of closing with -1.2

  15. Slide 15: Financial targets

    Financial targets Targets: • Adjusted EBITDA per share to grow Adjusted EBITDA per share, rolling 12 months 20% per year • Net debt < 2.5x adjusted EBITDA over 16.0 time 14.0 12.0 Performance: 10.0 • Adjusted EBITDA per share grew 51% 8.0 in Q3 20, measured on a rolling 12 6.0 month basis 4.0 • Net

  16. Slide 16: Thanks!

    Thanks! Copyright© 2019 CLX Communications AB (publ). All rights reserved. NDA Confidential. 16

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