#1Q4 2021 Investor Presentation 17 February 2022 Webcast 14:00 CET Oscar Werner, CEO Roshan Saldanha, CFO Thomas Heath, Chief Strategy Officer & Head of Investor Relations sinch#2SEK 16.2bn net sales in the past 12 months SEK 80bn Market Cap a global leader in cloud communications and mobile customer engagement Scalable cloud communications platform for messaging, email, voice and video 100% Consumer penetration SEK 1.3bn Adj. EBITDA in the past 12 months O 4,090 people More than 600 billion engagements per year Over 150,000 customers Growing, global, multi-billion USD market 62 countries with local presence $ sinch Listed on NASDAQ in Stockholm, Sweden Serving 8 of the 10 largest U.S. tech companies Profitable since our foundation in 2008 * Consolidated figures as of Q4 2021. MessageMedia, Inteliquent, MessengerPeople, Pathwire, SDI and Wavy consolidated less than 12 months.#3Transforming into a a global leader Major Vendors in CPaaS Gross profit in SEKm. Bandwidth LINK Mobility MessageBird Mitto Vonage Tanla Twilio Sinch 8x8 NetEase Yunxin Microsoft* Plivo Developer Model Source: Gartner (November 2021) * Gartner estimate based on launch in April 2021 Infobip Megaprovider: More Than $1 Billion CM.com Cisco Kaleyra Route Mobile IntelePeer Syniverse Telnyx Zenvia Large Provider: $100 Million to $1 Billion Co-creation Model Upstart: Less Than $100 Million Rising gross profit and broadened product mix 2,183 2020 3,933 2021 7,743 11% 11% 32% 46% 2021 proforma SMB Email Voice Messaging incl. Applications 3#4Fourth quarter highlights 01 Strengthened position as global leader in CPaaS • Net sales growing 74%, Gross profit 69% and Adj EBITDA 25% Adjusted EBITDA of SEK 471m and operating cash flow of SEK 462m ● Transformative acquisitions positioning Sinch as the leading profitable CPaaS company • Full year proforma Net sales at SEK 23.1bn with GP at SEK 7.7bn 02 Factors affecting organic earnings growth ● ● ● ● Strong comparison quarter Minimum commitments to a multinational mobile operator, in combination with low traffic volume, had a 5% (SEK 34m) negative effect on Gross profit in Q4 Bad debt relating to one customer added SEK 37m to Opex in Q4 Continued effect of previously communicated price adjustments 03 Focus areas for 2022 ● Capitalizing on strong market position to drive growth • Cost control in Messaging and group functions to ensure that costs do not grow faster than Gross profit • New operating model with full P&L responsibility for Business Unit Presidents 4#5Gross profit evolution SEKM 1,400 1,200 1,000 800 600 400 200 0 796 Organic +5% 36 Gross profit, SEKm Acquisitions +63% 141 142 64 155 Q4 20 Organic Inteliquent Message Pathwire Other M&A Media FX +2% 15 FX 1,348 Q4 21 • Tough comparables in Q4 2021 Minimum commitment to a multinational global mobile operator causing a 5% negative impact on GP in Q4 2021 ● • Unable to immediately pass on full carrier price increases in Brazil and India • Price adjustments causing new sales to contribute lower margins than existing business • 10% underlying GP growth in local currency excluding impact of pre- commitments 5#6Opex development 800 600 400 200 0 418 418 Q4 as reported 2020 524 Adjusted Opex Gross profit - Adjusted EBITDA 524 Q4 with 3 months of SDI Adjusted Opex, SEKm 551 532 Q1 586 547 Q2 2021 Sinch & SDI Other acquisitions 597 556 Q3 877 228 649 Q4 Includes 37m bad debt • Slower opex growth in 2020 due to Covid-19 outbreak • Increased opex base during 2021 - Sales & product initiatives - Preparations for upcoming, large acquisitions ● - Businesses acquired during 2022 adding further Opex SEK 37m one-time impact on Opex in Q4 21 due to bad debt from a specific voice customer 17% underlying opex growth in Sinch+SDI excluding one-off 6#7Inteliquent The largest independent voice communications provider in the United States. 1,400 1,200 1,000 800 600 400 200 0 1,209 All figures proforma. Inteliquent proforma Net sales and Gross profit (SEKm) 593 (49%) Q121 1,222 596 (49%) Q221 1,263 594 (47%) Q321 Net sales Gross profit 1,262 595 (47%) Q421 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 4,970 2381 (48%) 2020 4,957 2378 (48%) 2021 Net sales Gross margin • Transaction closed 9 December • Adj EBITDA in Q421 of SEK 325m, implying a 26% margin •7% organic net sales growth and 7% organic gross profit growth in local currencies in FY 2021 • Healthy underlying growth driven by enterprise demand for programmable voice Growth in 2021 impacted by Covid- 19, growth in 2022 affected by 8YY regulation 7#8MessageMedia Leading mobile messaging solutions for small and medium sized businesses (SMB) in the United States and Australia, New Zealand, and Europe. 450 400 350 300 250 200 150 100 50 0 Message Media proforma Net sales and Gross profit (SEKm) 313 All figures proforma. 202 (64%) Q121 350 221 (63%) Q221 377 232 (61%) Q321 Net sales Gross profit 383 226 (59%) Q421 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1,137 691 (61%) 2020 Net sales 1,423 880 (62%) 2021 Gross profit • Transaction closed 5 November ● • Adj EBITDA in Q421 of SEK 100m, implying a 26% margin ● 25% organic net sales growth and 28% organic gross profit growth in local currencies in FY 2021 •7,000 new customers started using the web-based products in Q4 • Integration with Sinch Conversation API has begun 8#9Pathwire The best-in-class email deliverability platform for transactional and marketing email. 350 300 250 200 150 100 50 0 238 All figures proforma. Pathwire proforma Net sales and Gross profit (SEKm) 190 (80%) Q121 257 200 (78%) Q221 280 215 (77%) Q321 Net sales Gross profit 303 228 (75%) Q421 1,400 1,200 1,000 800 600 400 200 0 868 679 (78%) 2020 Net sales 1,078 833 (77%) 2021 Gross profit • Transaction closed 7 December ● • Adj EBITDA in Q421 of SEK 113m, implying a 37% margin ● 32% organic net sales growth and 30% organic gross profit growth in local currencies in FY 2021 Strong early stage pipeline of cross sales to existing Sinch customers •High-velocity developer Go To Market with over 100,000 paying customers 9#10New operating model Business Unit Financials Focus 2022 ● . . ● Enterprise & Messaging President Anders Olin 46% of proforma GP* 23% gross margin* 17% GP growth in 2021** Gross profit growth recovery & attention to gross margins Ensuring opex grows in line with gross profit Cross sales of other products to large enterprise customers . Voice President Ed O'Hara 32% of proforma GP 46% gross margin* 7% GP growth in 2021 Sales efforts & product development to accelerate voice sales to enterprise customers • Cross sales of voice and messaging • International expansion 8YY reform ● ● . ● ● * Applications is currently included in Enterprise & Messaging ** Including Applications. Excluding ACL (India) and Wavy (Brazil) Developer & Email President Will Conway 11% of proforma GP 77% gross margin* 30% GP growth in 2021 Continued focus on profitable growth Cross sales of Email to Sinch enterprise customers Cross sales of SMS to Pathwire developer community ● ● Applications President Eduardo Henrique Currently included in Messaging Separation of Applications offering into separate business unit Includes Chatlayer, MessengerPeople, Sinch4Marketing, Contact Pro 2022 focus on product unification and international expansion . ● ● SMB President Paul Perrett 11% of proforma GP 62% gross margin* 28% GP growth in 2021 Continued growth in the United States through new customer acquisition Integration of SMS backend to Sinch global platform Extension of omnichannel capabilities leveraging Sinch Conversation API SMB Small and Medium-sized Businesses 10#11Financials sinch#12Income statement SEKM Net sales Cost of goods sold and services Gross profit Other operating income Work performed by the entity and capitalized Other external costs Employee benefits expenses Other operating expenses EBITDA Depreciation and amortization EBIT Net finance income/expenses Profit before tax Income tax Profit for the period Q4 2021 5,207 -3,860 1,348 89 37 -504 -559 -80 330 -342 -12 615 603 -176 427 Q4 2020 2,999 -2,204 796 34 20 -293 -312 -66 179 -88 91 -34 57 156 213 2021 16,177 -12,244 3,933 192 98 -1,306 -1,837 -249 831 -673 158 1,039 1,197 -315 882 2020 8,023 -5,840 2,183 198 69 -683 -869 -183 715 -262 453 -74 379 67 446 ● • Adjusted EBITDA is different from EBITDA primarily due to acquisition costs, integration costs, and share- based incentive plans • Adjusted EBITDA of SEK 471 million (378) in Q4 21 Depreciation & amortization includes non-cash amortization related to acquired entities • Adjusted EBIT of SEK 393 million (356) in Q4 21 ● Net financials affected by currency gains ahead of upcoming acquisitions 12#13Reconciling Cash flow with Adjusted EBITDA SEK million Adjusted EBITDA Paid interest Paid taxes Other items Cash flow before changes in working capital Cash flow before changes in working capital / Adjusted EBITDA Q4 2021 471 0 -126 140 485 103% Q4 2020 234 -8 -28 -43 155 66% 2021 1,322 -34 -253 142 1,177 89% 2020 989 -30 -101 -256 602 61% ● High conversion of Adjusted EBITDA to cash flow • Other items positively impacted by realized currency changes 13#14Cash flow SEKM Cash flow before changes in working capital Change in working capital Cash flow from operating activities Net investments in property, plant and equipment and intangible assets Change in financial receivables Acquisition of Group companies Cash flow from investing activities Changes in loans Amortization lease liability New issue/warrants Cash flow from financing activities Cash flow for the period Opening cash and cash equivalents Exchange rate differences Closing cash and cash equivalents Q4 2021 486 -24 462 -174 -2 -28,216 -28,392 10,662 -23 6,505 17,144 -10,786 11,934 717 1,865 Q4 2020 155 -207 -52 -20 -8 -2,190 -2,218 -29 -8 3,318 3,280 1,011 2,113 -1 3,123 2021 1,177 -859 318 -277 -4 -28,877 -29,158 10,533 -55 15,976 26,454 -2,386 3,123 1,128 1,865 2020 602 -148 454 -86 -2 -2,885 -2,972 -267 -30 5,529 5,231 2,713 466 -56 3,123 • Positive net working capital excluding acquisitions Acquisitions and financing related to acquisitions during Q4 14#15Cash flow reclassification SEKM Cash flow before changes in working capital Change in working capital Cash flow from operating activities Net investments in property, plant and equipment and intangible assets Change in financial receivables Acquisition of Group companies Cash flow from investing activities Changes in loans Amortization lease liability New issue/warrants Cash flow from financing activities Cash flow for the period Opening cash and cash equivalents Exchange rate differences Closing cash and cash equivalents Q1 2021 226 361 587 -39 6 -505 -538 -21 -10 37 6 54 3,123 22 3,199 Q2 2021 221 -461 -240 -26 -9 -178 -213 -71 -16 9,395 9,308 8,855 3,200 209 12,264 Q3 2021 244 -735 -491 -38 1 22 -14 -37 -6 39 -4 -510 12,264 179 11,934 Q4 2021 486 -24 462 -174 -2 -28,216 -28,392 10,662 -23 6,505 17,144 -10,786 11,934 717 1,865 • Part of the financing for Wavy was recognised as "New share issue" in Q1 2021 Reassessment causing reclassification of select cash flow items in Q1 and Q2 2021 • Acquisitions affecting cash flow in Q4 2021 15#16Financial targets 2.00 1.50 1.00 0.50 0.00 Adjusted EBITDA per share, rolling 12 months |||| Mar սոՐ Գ Sep Dec Mar N Jun 2017 des co 2018 Dec Mar Jun Sep Dec 2019 Mar Jun Sep Dec Mar 2020 2021 Targets: • Adjusted EBITDA per share to grow 20% per year •Net debt < 3.5x adjusted EBITDA over time Performance: Adjusted EBITDA per share grew 12% in Q4 21, measured on a rolling 12 month basis ● Net debt/EBITDA of 8.1x, measured on a rolling 12 month basis • Proforma Net debt/EBITDA of 3.2x 16#17Financial leverage 8.1 Pro forma net debt/Adjusted EBITDA Net debt/Adjusted EBITDA 3.2 Proforma Net debt/Adjusted EBITDA 2.9 Proforma Net debt/Adjusted EBITDA excl. IFRS16 lease liabilities ● Pro forma calculation includes last 12 months of Adj EBITDA for acquired entities • Financial target is to maintain Net debt 3.5x adjusted EBITDA over time •Pro forma Net debt/Adj EBITDA of 3.2x, or 2.9x excluding IFRS 16- related lease liabilities 17#18Transforming into a a global leader Major Vendors in CPaaS Gross profit in SEKm. Bandwidth LINK Mobility MessageBird Mitto Vonage Tanla Twilio Sinch 8x8 NetEase Yunxin Microsoft* Plivo Developer Model Source: Gartner (November 2021) * Gartner estimate based on launch in April 2021 Infobip Megaprovider: More Than $1 Billion CM.com Cisco Kaleyra Route Mobile IntelePeer Syniverse Telnyx Zenvia Large Provider: $100 Million to $1 Billion Co-creation Model Upstart: Less Than $100 Million Rising gross profit and broadened product mix 2,183 2020 3,933 2021 7,743 11% 11% 32% 46% 2021 proforma SMB Email Voice Messaging incl. Applications 18#19Thank you! To get in touch, contact: Ola Elmeland, Investor Relations Director Thomas Heath, Chief Strategy Officer & Head of Investor Relations [email protected] sinch