Sinch Ab · OMXSTO:SINCH

Sinch Ab — Merger or Acquisition (June 2021)

16 slides from Sinch Ab's merger presentation, Jun 9, 2021

  1. Slide 1: Acquisition of MessageMedia

    Acquisition of MessageMedia 9 June 2021 Oscar Werner CEO Roshan Saldanha CFO Thomas Heath Chief Strategy Officer & Head of Investor Relations

  2. Slide 2: Sinch at a glance

    SEK 9.7bn SEK 968m SEK 111BN 2,160 47 countries with revenue in the Adj. EBITDA in the Market Cap people local presence past 12 months past 12 months 152 billion Publicly listed on Customer engagement through mobile technology engagements per year NASDAQ in Stockholm Scalable cloud communications Se

  3. Slide 3: Track record of profitable growth

    Track record of profitable growth 6,000 MessageMedia 5,000 • Focus on Gross profit since pass- Inteliquent through revenues vary between 4,000 geographies SEK million Wavy 3,000 Acquisitions adding significantly SDI ACL • 2,000 MessageMedia Inteliquent to our scale and profitability 1,000 Wavy SDI •

  4. Slide 4: Complementary Go-To-Market models

    Complementary Go-To-Market models Enterprise Developer SME • 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 • Target small and medium sized indi

  5. Slide 5: Expanding our addressable market

    Expanding our addressable market Turnkey Consumer Engagement market, 2018-24 (USDbn) 26.9 • Global market for “Turnkey Consumer Engagement” solutions 21.2 estimated at USD 9-13 billion 16.7 • Market expected to grow at 25-30% CAGR, with US growth at 30-35% 13.2 10.5 • 50-70% of turnkey spend from sm

  6. Slide 6: SaaS products focused on ease-of-use

    SaaS products focused on ease-of-use • Web-based SaaS application suite supporting outbound messaging and conversational use cases • Optimized for ease-of-use and quick time-to-value • Subscriptions-based price model • Single platform supporting multiple brands • Preconfigured integrations to multip

  7. Slide 7: 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

  8. Slide 8: 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

  9. Slide 9: Strategic acquisitions

    Strategic acquisitions SAP Digital Interconnect Rich messaging, Low code tools Conversational AI Technology & Go To Market Voice, video, Personalized Conversational Voice SME verification video messaging Australia, Americas, Southeast Asia Europe, APAC Scale and profitability USA, Western Germany, L

  10. Slide 10: Deal rationale

    Deal rationale • Leading provider of software-as-as-service for mobile customer engagement to small and medium sized businesses with strong organic growth in the United States, Australia, New Zealand and beyond Message • More than 60,000 customers, sending over 5 billion mobile messages per year Med

  11. Slide 11: Global, digital, go-to-market model

    Global, digital, go-to-market model Website Hundreds of thousands per users month Leads & Thousands per >5,000 customers 4% of gross profit >25,000 customers Trials month 27% of gross profit 40%+ y/y growth Paying >20% customers >28,000 customers 62% of gross profit Returning 2/3 >1,000 customers cu

  12. Slide 12: Multi-brand strategy

    Multi-brand strategy Legacy brands Mid-market Tech-capable Non-technical Existing customers • Small and medium sized • Targets “tech capable” • Targets non-technical • Legacy brands and website businesses, mid-market small and medium sized small and medium sized maintained as is accounts, and channe

  13. Slide 13: Improved margin profile

    Improved margin profile 33% • Multiple acquisitions over past year 26% • ACL, SDI, Wavy consolidated less than 12 months 14% • Inteliquent and MessageMedia 10% transactions not yet closed • Pro forma* calculation implies SEK 17.9 bn revenue, SEK 6.0 bn gross profit, and SEK 2.4 bn Adj EBITDA Gross p

  14. Slide 14: Financial leverage

    Financial leverage Pro forma net debt/Adjusted EBITDA • Pro forma calculation includes last 3.1 2.6 12 months of Adj EBITDA for acquired entities • Updated financial target is to maintain Net debt < 3.5x adjusted EBITDA over time • Pro forma Net debt/Adj EBITDA of -0.9 2.6x to after recent share iss

  15. Slide 15: Financial targets

    Financial targets Targets: • Adjusted EBITDA per share to grow Adjusted EBITDA per share, rolling 12 months 20% per year 18.0 • Net debt < 3.5x adjusted EBITDA 16.0 over time 14.0 12.0 10.0 Performance: 8.0 • Adjusted EBITDA per share grew 6.0 30% in Q1 21, measured on a rolling 4.0 12 month basis 2

  16. Slide 16: Thanks!

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

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