Sinch Implements New Financial Strategy to Enhance Stability

Sinch Announces Important Changes to Financial Leverage Policy

In a significant move, Sinch AB (publ) has altered its financial leverage policy to ensure the long-term sustainability and stability of its operations. Sinch, known for its innovative Customer Communications Cloud, focuses on enhancing communication solutions for businesses worldwide. This policy adjustment comes as a proactive strategy to strengthen its financial position as the company continues to grow and evolve.

Details of the Financial Leverage Policy Update

The new policy from Sinch dictates that net debt must remain below 2.5 times the adjusted EBITDA, evaluated on a rolling twelve-month basis. This marks a noteworthy adjustment from the previous threshold of 3.5 times adjusted EBITDA. This change demonstrates a shifting mindset towards maintaining a more robust financial health, allowing for strategic investments while controlling leverage to ensure the company's solvency.

Understanding the Implications of 'Over Time'

The term 'over time' denotes that Sinch may experience temporary increases in leverage, particularly after acquisitions. This flexibility allows Sinch to seize growth opportunities while managing debt levels suitably. Such a stance reaffirms the company's focus on long-term growth despite short-term fluctuations.

Commitment to Financial Responsibility

Sinch’s updated financial leverage policy underscores its dedication to financial prudence. By establishing stricter controls over debt levels, Sinch aims to create a cushion against economic uncertainties while fostering investor confidence. This commitment is vital as the company navigates through a competitive landscape marked by rapid technological changes and evolving customer expectations.

Building a Sustainable Future

This strategic financial adjustment is part of Sinch's broader vision to enhance its value proposition. By prioritizing fiscal discipline, the company ensures it remains an attractive choice for partners and investors alike. With a focus on delivery and a commitment to innovation, Sinch reinforces its position as a leader in the communication technology sector.

About Sinch AB

Sinch has made significant strides in revolutionizing communication frameworks globally. The company serves over 150,000 businesses, including major tech players, by offering integrated solutions via its Customer Communications Cloud. Since its inception in 2008, Sinch has embraced profitable growth, demonstrating resilience and adaptability in a constantly changing market. It is headquartered in Stockholm, Sweden, with shares actively traded on NASDAQ Stockholm under the ticker XSTO: SINCH.

Contact Information

For further inquiries regarding the recent policy changes or the company in general, interested parties can reach out to Ola Elmeland, the Investor Relations Director, via mobile at +46 721 43 34 59. As always, Sinch remains committed to transparent communication with its stakeholders and the public.

Frequently Asked Questions

What prompted the change in Sinch's financial leverage policy?

The change was prompted by Sinch's strategic focus on improving its financial health and maintaining a strong balance sheet in a dynamic market.

What are the new limits for net debt under the updated policy?

Net debt must now be below 2.5 times the adjusted EBITDA on a rolling twelve-month basis.

Does the new policy allow for increased leverage?

Yes, the policy includes a provision for temporary increases in leverage, particularly following acquisitions, under the phrase 'over time'.

How does this policy support Sinch's growth strategy?

This policy change allows Sinch to invest strategically while ensuring that it does not overleveraged, maintaining confidence among investors.

Who can I contact for more information about Sinch?

Ola Elmeland, the Investor Relations Director, can be contacted for further information regarding the company and its policies.

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