#1Acquisition SAP Digital Interconnect 5 May 2020 Oscar Werner CEO of Roshan Saldanha CFO Thomas Heath Chief Strategy Officer & Head of Investor Relations sinch#2SEK 5.6bn revenue in the past 12 months SEK 646m 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 29bn 766 Market Cap people Profitable since our foundation in 2008 血 (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 st 4#5Playbook for profitable growth Software- as-a-Service Connectivity ● ● • Ensure leading direct global connectivity without middlemen Differentiate through superior quality, scale and reach Benefit from market growth and continue to win market share ● 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 ● 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 6#7Strategic acquisitions Founded as CLX Networks * 2008 Technology & Go To Market Scale and profitability IPO 2016 mblox USA, Western Europe 2017 Sinch! Voice, video, verification XURA Germany, Central Europe Acquisitions of Wavy and SAP Digital Interconnect are pending regulatory approval dialogue 2018 + vehicle Personalized video Australia, South East Asia unwire sinch One brand Amy Elefant Rich messaging, Low code tools Nordics 2019 2020 TWW Brazil Chatlayer.ai Conversational Al WAVY SMS Latin America WAVY Innovation Next-generation messaging SAP Digital SAP Interconnect Americas, Europe, APAC 7#8Deal rationale SAP Digital Interconnect Deal rationale Integration Financials • Global cloud communications provider with operations in Americas, Europe and Asia Pacific Programmable Communications (67% of revenue), Carrier Messaging (28%), Enterprise Solutions (5%) • 18bn business messages and 292bn person-to-person (P2P) messages in 2019 • Around 320 employees with headquarters in San Ramon, California ● • 1,500 enterprise customers, some of the world's most valuable brands, diversifies Sinch customer base Highly accretive deal, fits Scale and Profitability category Significantly strengthened US presence, more people also in Asia Pacific and Europe Very strong operator relationships as trusted vendor to hundreds of carriers ● ● ● • Await approval from competition authorities in multiple jurisdictions ● • Combine operations across the USA, Europe, and Asia • Win synergies through SMS platform integration Cross- and upsell combined & broadened Sinch+SDI product portfolio ● • Sinch pays an enterprise value of EUR 225m SAP Digital Interconnect recorded revenues of EUR 340m, gross profit of EUR 94m, and Adj EBITDA of EUR 15.4m in the 12 months ending March 2020. Revenue growth around 10% in the past two years. Closing is subject to regulatory approval. Transaction expected to close in H2 2020 ● ● 8#9Programmable communications ● ● ● ● Products Programmable communications APIs, developer tools, and digital interfaces Verification & Authentication Omnichannel capabilities with SMS, push, email, WhatsApp, WeChat, Viber, etc. Single-point APIs with rich failover capabilities 18 billion enterprise messages processed in 2019 ● ● Go To Market Value proposition built on high quality of service and international reach Presence in 20 countries Programmable Communications contributed 67 percent of SDI revenues in the past 12 months. ● SAP SAP Digital Interconnect Customers Broad base of blue-chip enterprise customers Very strong customer base with many of the worlds most well- known brands. Low churn ■ Bank & Finance ■ Technology ☐Telecom Marketing ■ Other 9#10● Carrier Messaging 292 billion person-to-person (P2P) carrier messages processed during 2019 Intelligent Hubbing 365 for dynamic routing of person-to-person messaging between carriers Messaging Proxy 365 allowing carriers to handle business messaging and person-to-person messaging in a single solution Very strong relations to several of the largest operators in the world 28 percent of SDI revenues in the past 12 months. ● ● ● ● SAP Enterprise Solutions Contact Center 365 for end-to-end omnichannel communications On-premise Private cloud Public cloud ● ● ● SAP Digital Interconnect Message Manager 365 for SMS messaging campaigns loT Connect 365 for cross-carrier connectivity People Connect 365 for workforce disruption communications 5 percent of SDI revenues in the past 12 months. 10#11Sinch global footprint Super Network Scalable cloud platform Messaging, voice & video Five continents Hundreds of mobile operator connections Country with local sales 11#12Growing our scale and profitability MSEK 12,000 10,000 8,000 6,000 4,000 2,000 0 MSEK 3,000 2,500 2,000 1,500 1,000 500 0 2016 2016 2017 Net sales 2017 2018 Gross profit 2018 2019 2019 L12M L12M Acquisitions of Wavy and SDI are both pending regulatory approval. Sinch L12M includes Chatlayer. *Expected synergies for both Wavy and SDI, estimated mid-point, at full run rate. MSEK 1,200 1,000 800 600 400 200 0 1,500 1,250 1,000 750 500 250 0 2016 2016 Adjusted EBITDA 2017 2018 Employees 2017 2018 2019 2019 L12M L12M Sinch Wavy SDI JP Synergies (Wavy & SDI) 12#13Financial leverage -1.0 Q1 20 reported Pro forma net debt/Adjusted EBITDA -0.9 + TWW & my Elefant -0.8 + Chatlayer Acquisitions of Wavy and SDI are both pending regulatory approval. 2.2 + SDI 2.7 + Wavy ● Pro forma calculation include last 12 months of Adj EBITDA for acquired entities Financial target is to maintain Net debt < 2.5x adjusted EBITDA over time Pro forma Net debt/Adj EBITDA of 2.7x is within the constraints set by bank and corporate bond covenants 13#14Financial targets 14.0 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 Mar 2017 2019 2020 2016 2018 Targets: Adjusted EBITDA per share to grow 20% per year ● Net debt < 2.5x adjusted EBITDA over time Performance: Adjusted EBITDA per share grew 52% in Q1 20, measured on a rolling 12 month basis ● Net debt/Adj EBITDA of -1.0x, measured on a rolling 12 month basis, at the end of Q1 2020 JP 14#15Thanks!