#1Acquisition of Chatlayer 19 March 2020 Oscar Werner CEO Roshan Saldanha CFO Thomas Heath Chief Strategy Officer & Head of Investor Relations sinch#2SEK 5.0bn revenue in the past 12 months SEK 574m Adj. EBITDA in the past 12 months $ Customer engagement through mobile technology Scalable cloud communications platform for messaging, voice and video 100%) Consumer penetration SEK 18bn 722 Market Cap people Profitable since our foundation in 2008 All O 40 billion engagements per year 33 countries with local presence Publicly listed on NASDAQ in Stockholm Serving 8 of the 10 largest U.S. tech companies >600% gross profit growth since IPO in 2015 Growing, global, multi-billion USD market sinch 2#3Technology evolution in messaging Text notifications - Rich media messaging Next-generation messaging offers a step-change in customer experience Conversational messaging sinch 3#4CPaaS relevance throughout the customer journey STAGE OBJECTIVE EXAMPLE PRODUCTS Revenue generation Add revenues Reduce churn Rich SMS with dynamic mobile landing page Personalized video to prevent bill shock Service enablement Use CPaaS functionality in own apps and products Improve efficiency Reduce cost One Time Passwords (OTP) Verification Number masking Mobile boarding pass Customer care Handle customer support Improve customer experience Reduce contact center cost WhatsApp instead of phone Bots and Al to automate conversations 4#5Playbook for profitable growth Software- as-a-Service Connectivity ● ● ● Empower businesses to leverage rich and conversational messaging Increase our software value-add (CPaaS) in addition to our connectivity offering Increase stickiness with maintained scalability • Ensure leading direct global connectivity without middlemen Differentiate through superior quality, scale and reach Benefit from market growth and continue to win market share ● sinch LO 5#6Leveraging M&A to meet strategic objectives Technology & Go To market Scale and profitability Complementary technology that fits our strategic product roadmap • Go To Market-ability in relevant products and geographies Increased software value-add with higher gross margin Future growth drivers ● ● ● • Acquire sticky customer relationships ● Add direct operator connections in new markets • Extract synergies by transferring traffic to Sinch's technology platform • EV/EBITDA-accretive: acquiring profit at a valuation below our own sinch (O 6#7Strategic acquisitions Founded as CLX Networks 2008 2009 + Technology & Go To Market Scale and profitability 2010 2014 - T 2015 + Symsoft > Industry-leading tech platform VOLTARI USA, Canada IPO 2016 Caleo Billing technology mblox USA, Western Europe 2017 Sinch! Voice, video, verification XURA Germany, Central Europe 2018 vehicle Personalized video dialogue Australia, south east Asia sinch One brand 2019 myElefant Rich messaging, Low code tools unwire Nordics 2020 Chatlayer.ai Conversational Al D TWW Brazil#8Deal rationale Chatlayer Deal rationale Integration Financials Founded in 2018 • Cloud-based software platform to build high-performing chat- and voicebots in multiple languages • Custom Al for superior Natural Language Understanding • Team of 17 people in Antwerp, Belgium ● "Technology and Go To Market"-type acquisition to strengthen product offering and fuel growth • Increased SaaS value-add in addition to our global connectivity offering ● • Partner-based Go To Market model in line with Sinch strategy ● Future growth with cross- and upsell opportunities ● Integration with Sinch APIs for communications across all mobile channels • Zero-touch onboarding for cross-channel conversational messaging • Cross-selling to Sinch customers ● • Sinch pays an upfront EV of EUR 6.9m Transaction expected to close in early April Chatlayer recorded revenues of EUR 0.8m, gross profit of EUR 0.7m, and EBITDA of EUR -0.9m in 2019 Recurring revenue growing rapidly. Gross margin of 86 percent in 2019. ● ● ● 8#9Select customers proximus προ Chatlayer.ai 100+ languages | Text- and voicebots | Own Al | No-code configuration | Analytics & Training AG INSURANCE E Foyer Belfius (P&V Web Chatlayer.ai Analytics. NLP Dashboard Intents Expressions. Entities 4 Generator Train Threshold ✔Test Improve Bot Dialogs History Versioning Channels WhatsApp Choo Choo demo < My Bots Test ? Enter the expression you want to test here. Я хочу забронировать билет на поезд Intent name EN English book train ticket test intent lost item. timeschedule wrong departure location. change user lang invalid arrival time show_elements who are you what can you do Confidence Score Facebook Messenger 99.8% 0.09% 0.04% 0.03% 0.02% 0.01% 0.01% 0% 0% 0% Test Text and voice channels Twitter Entity + Add as expression Phone Update NLP Value 8 Confidence Score Test your bot Amazon Alexa Google Assistant Integration partners KPMG ORDINA proximus Livechat integrations VOCALCOM GENESYS INTERCOM CRM integrations salesforce HubSpot 9#10First-generation chatbots use simple scripts and keyword processing 13:42 +32 473 04 16 35 Welcome to KD Insurance. Select your option: 40+ 69% Reply for Home insurance Reply for Auto insurance Reply 3 for Life insurance Reply 0 for Main menu 13:35 Where is the nearest office? 13:37 You have typed an incorrect response- Please try again. This is the Main menu. Please select your option: skriv meddelande 13:38 Reply 1 for Product info Reply 2 for Current offers Reply 3 for Insurance claims Reply 0 for Main menu 13:40 0 13:39 ✔ I give up 13:41 ✓ O Scripted dialogue Adding intelligence to messaging Radical improvement in end-user experience 13:42 ←KD KD Insurance KD Insurance Hi! I'm KDbot at KD Insurance! I can help you with all your insurance questions! 4G+ 69% Which city are you in? Where is the nearest office? 13:37 ✔ You're welcome! 13:35 13:35 13:38 I'm in Liverpool 13:39 We have two offices in Liverpool. One is on 31 Victoria Street and the other is on 74 Beresford Road. Skriv meddelande 13:40 Great, thanks! 13:42 If you have any other insurance questions, you know where to find me ! 13:42 O 13:41 Conversational Al ... Chatlayer.ai Conversational Al uses NLU to interpret user input and provide a relevant answer 10#11Continuous learning for higher performance User messages 30.250 Not understood 3.025 ● ● All users 7.175 Session start 100% 17,7% Introduction 41,1% Book train ticket 11,5% Lost item 7,4% Departure times 17,7% Contact 5,3% Thalys 4,9% Discounts 2,1% Not understood 7% 100% 12,5% 17,6% 5,3% 4,5% 2,2% 1,9% 7,1% Arrival time Arrival location Departure time First or second class Departure time Transfer To Human Not understood 9,5% 4,2% 3,2% 0,5% 0,2% Departure time Departure location Arrival location Transfer To Human Not understood Visual flow metrics illustrate how user cohorts navigate through the bot. Multi-lingual design for lower total cost of ownership: Supporting e.g. five languages within one bot means flow design is reused and effort to train NLU is reduced by 75-80%. 3,1% Confirmation 0,2% Departure time Bot dialog name Departure time Intent Time input % of all user messages 82,5% Number of messages 817 % dropoff 80% % unhappy user messages 8 60% % neutral user messages 8 38% % happy user messages 8 12% Start from here 8 See conversations X Chatlayer.ai 11#12Customer case: Banking & Finance L 10:52 Schade aangeven Hallo Rick! Ik ben myBo, uw slimme digitale assistent, Aangenaam! Ik help u graag schade in. aan of rond uw woning aangeven. Voor lichamelijke schade kan u bij mij helaas niet terecht: een van mijn collega's is u daarvoor graag van dienst via 02 286 70 00. Mijn specialiteit? Dat is materiële schade! 10:51:29 O ja,ik zou het superfijn vinden als u korte zinnen, sleutelwoorden en de knoppen gebruikt, die begrijp ik het allerbest. Alvast bedankt! 10:51:31 Laten we van start gaan. Wil u nieuwe schade aangeven of uw schadedossier aanvullen? 10:51:32 Nieuwe schade Dossier aanvullen Nieuwe schade 10:51:38 OK, mag ik dan eerst even uw e-mailadres? Dat is handig om uw dossier op te volgen. 10:51:53 schrijf een bericht Over uw privacy Conversational Al for Belfius Belfius is a tier 1 bank in Belgium servicing 3.5 million customers. ● ● ● Chatlayer.ai Its mobile app is the most used banking app in Belgium and has won numerous awards for its convenience. ● Chatlayer helped the bank become even more conversational with the Chatlayer.ail platform. Two intelligent chatbots for targeted use cases Bbot answers questions about daily banking and is an expert on questions on fees or how to transfer money abroad. ● • myBo is used to report insurance claims, guiding the user step-by-step to ensure that all relevant information is collected. Service rated 4.5 out of 5 by end users. 12#13Financial targets 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Adjusted EBITDA per share, rolling 12 months Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 2016 2017 2018 2019 Targets: Adjusted EBITDA per share to grow 20% per year ● Net debt < 2.5x adjusted EBITDA over time Performance: Adjusted EBITDA per share grew 54% in Q4 19, measured on a rolling 12 month basis Net debt/EBITDA of 1.7x, measured on a rolling 12 month basis 13#14Thanks!