#1Acquisition of Wavy 27 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 SEK 18bn 722 Market Cap people Scalable cloud communications platform for messaging, voice and video 100%) Consumer penetration Profitable since our foundation in 2008 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 6#7Strategic mergers & 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 2018 vehicle Personalized video dialogue Australia, South East Asia sinch One brand 2019 + Amy Elefant Rich messaging, Low code tools unwire Nordics Chatlayer.ai 2020 Conversational Al D TWW Brazil WAVY Innovation Next-generation messaging WAVY SMS Latin America 7#8Deal rationale Wavy Deal rationale Integration Financials Leading SMS messaging provider in Latin America, second largest in Brazil Conversational messaging business growing >200 percent through innovation & use of new channels High WhatsApp volumes, customers using Apple Business Chat, RCS and Facebook Messenger • 260 employees with operations in Brazil, Mexico, Colombia, Peru, Chile, Argentina and Paraguay ● ● • SMS business fits in "Scale and Profitability" category of earnings-accretive deals with scale benefits • Innovation business fits in "Technology and Go To Market" category aiming to fuel organic growth • 50 direct operator connections in Latin America strengthens Sinch's global Super network • Innovation leader in next-generation messaging growing >200 percent with high gross margins • Await approval from competition authorities in Brazil • Coordinate multiple Sinch operations across Latin America • Ensure Sinch global customers benefit from improved connectivity to Latin America Leverage Wavy expertise in next-generation messaging with customers throughout the world ● • Sinch pays BRL 355m in cash and 1,534,582 new shares in Sinch, implying an EV of SEK 1,170m Wavy is expected to record revenues of BRL 464m, gross profit of BRL 130m, and EBITDA of BRL 48m in the 12 months ending March 2020. • Full financial details in press release. Transaction expected to close in H2 2020 ● 8#9Mexico Colombia Peru Chile ур Argentina Paraguay Brazil ● ● ● ● Latin America 626 million people in the region Rapid increase in smartphone penetration and mobile internet use Wavy Part of Movile Group 260 employees, 9 offices, 6 countries Connectivity throughout Latin America with 13 billion transactions per year Customers & volumes using WhatsApp, Apple Business Chat and RCS sinch 9#10Use case: Customer care through WhatsApp Conversational messaging for Ingresso Rápido, the leading ticket sales and event management company in Brazil. Challenge Large number of incoming calls to contact center with 20k tickets per month ● ● ● Very complex to scale support teams with maintained quality Looking to engage with customers on WhatsApp, where they already are active 82% 70% Tickets answered by bot Satisfied users Solution Hybrid chatbot combining scripted decision trees with Al and Natural Language Processing ● ● WAVY Support for multiple use cases like order status, PDF ticket delivery and event information ● • Seamless handover to live customer care agents when needed 45% Cost reduction in call center ingresso rápido 10#11Use case: Interactivity with Apple Business Chat Using Apple Business Chat to win back defaulting customers for PlayKids, the Movile-founded education & entertainment platform with content in 7 languages and customers in 180 countries. 9:41 Playkids PlayKids PlayKids Playkids Selecione o horário para ser atendido Escolha um dos horários TOQUE PARA SELECIONAR Hoje, Agosto 29 11:00 AM 11:00 AM Amanhã, Agosto 30 02:00 PM 11:00 AM 02:00 PM Sábado, Agosto 31 02:00 PM X 90% Mostrar mais 04:00 PM Mostrar mais 04:00 PM Mostrar mais Time Picker 04:00 PM Reduction in default rate 9:41 Playkids Playkids Ⓒ Olá, estou com uma dúvida PlayKids PlayKids Como podemos ajudar? Selecione um dos assuntos 8 TOQUE PARA SELECIONAR OConteúdo disponível Pagamento e assinatural Botões Playkids Esqueci minha senha List Picker 45% 9:41 PlayKids Playkids Muito obrigada! Já posso acessar o app? Playkids Toque para logar Já é nosso usuário? Faça login na sua conta! A To: Playkids QWERTYUIO P ASDFGHJKL Z XCVBNM X 12 Q space Label Authentication Activation increase compared to email and phone 9:41 Playkids Playkids Temos mais de 4 Mill comeudos interativos disponíveis no PlayKids! Legal! Quero saber mais sobre livros Na nossa biblioteca digital, temos títulos para os pequenos lerem junto da família e vídeos com histórias contadas, cheias de emoção! O A To: Playkids 12 WAVY QWERTYUIOP ASDFGHJKL ZXCVBN M ↓ space ABC Chat Label PlayKids 11#12Use case: Empowering the mobile workforce Raised productivity for the largest food delivery platform in Latin America Challenge • 120k couriers on motorbike delivering food for iFood ● ● ● Many situations require conversations between the customers, couriers, and iFood Challenging for to answer effectively and quickly as volumes are increasing 7k Tickets resolved Solution Chatbot available through in-app messaging with integration to iFood Zendesk environment ● ● ● WAVY Al and Natural Language Processing to help resolve common use cases Automatic processing of main uses cases "Restaurant delayed", "Can't find location" and "Client can't pay" 5min 93% Time to completely solve tickets Customer satisfaction score (CSAT) ifood 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 Proforma net debt/EBITDA of 0.3x after acquisitions of Chatlayer, Wavy and directed share issue 13#14Thanks!