Sinch Ab · OMXSTO:SINCH

Sinch Ab — Merger or Acquisition (October 2019)

12 slides from Sinch Ab's merger presentation, Oct 10, 2019

  1. Slide 1: Acquisition of TWW

    Acquisition of TWW 10 October 2019 Oscar Werner CEO Roshan Saldanha CFO Thomas Heath Chief Strategy Officer & Head of Investor Relations

  2. Slide 2: Sinch at a glance

    SEK 4.4bn SEK 431m SEK 8.3bn 540+ 30+ revenue in the Adj. EBITDA in the Market Cap employees offices in 30+ countries past 12 months past 12 months 30 billion Publicly listed on Customer engagement through mobile technology engagements per year NASDAQ in Stockholm Scalable cloud communications Servi

  3. Slide 3: CPaaS relevance throughout the customer journey

    CPaaS relevance throughout the customer journey S TA G E Revenue Service Customer generation enablement care OBJECTIVE Add revenues Use CPaaS functionality in Handle customer support Reduce churn own apps and products Improve customer Improve efficiency experience Reduce cost Reduce contact center c

  4. Slide 4: Playbook for profitable growth

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

  5. Slide 5: 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

  6. Slide 6: Strategic acquisitions

    Strategic acquisitions Founded IPO One brand in Stockholm 2009 2014 2015 2016 2017 2018 2019 2008 Technology & Industry-leading Voice, video, Personalized video and Rich messaging Go To Market Billing rich media messaging tech platform technology verification Low code tools Scale and Germany, profit

  7. Slide 7: Deal rationale

    Deal rationale • Founded in 1996 • Today the 3rd largest SMS connectivity provider in Brazil TWW • 3 000 enterprise customers of varied sizes across all industries • Team of 37 people in São Paulo, Brazil • ”Scale and Profitability”-type acquisition to add scale, operator connections, and customer r

  8. Slide 8: Brazil and TWW

    Brazil • The largest country in Latin America by population, GDP and geographical size • 210m population Brazil • Rapid increase in smartphone penetration and mobile internet use TWW • 3,000 customers, 98% customer approval • 3.4 billion messages sent in 2018 • Sinch partner since 2012 8

  9. Slide 9: Rising interest for Brazil from Sinch global customers

    Rising interest for Brazil from Sinch global customers Increase in Sinch global traffic to Brazil (x) 10.0 10x increase 9.0 Traffic to Brazil, indexed (x) 8.0 • Messaging volumes from Sinch 7.0 global customers to Brazil has 6.0 increased by 10x in 12 months 5.0 4.0 • Acquisition of TWW secures 3.0

  10. Slide 10: Strengthening our global connectivity offering

    Strengthening our global connectivity offering 300+ direct mobile operator connections Sinch Tier 1 Global Connectivity Network TWW adds direct connections to all mobile operators in Brazil Tier 1 Connectivity for: • End-to-end control • Enhanced security • Speed and throughput • Improved redundancy

  11. Slide 11: 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 9.0 8.0 7.0 6.0 Transaction impact: 5.0 4.0 • The acquisition of TWW increases 3.0 Net debt/Adjusted EBITDA by 2.0 around 0.8x 1.0 0.0

  12. Slide 12: Thanks!

    Thanks! Copyright© 2019 CLX Communications AB (publ). All rights reserved. NDA Confidential. 12

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