Financial and sustainability targets

The Board of Directors of Sinch has set the following financial and sustainability targets:

Mid-term financial targets

By the end of 2027, Sinch targets to reach:

• Organic growth in net sales and gross profit of 7-9% year-on-year.
• Adjusted EBITDA margin of 12-14%.

Financial leverage policy

Sinch’s financial leverage policy is that:

• Net debt over time shall be below 2.5 times adjusted EBITDA (measured on a rolling twelve-month basis).

The phrase ‘over time’ means that leverage may temporarily exceed 2.5 times adjusted EBITDA in the time period following an acquisition.

This leverage policy underlines Sinch’s commitment to maintaining a strong financial position and supports the long-term financing strategy of the company.

Capital allocation

Sinch is a profitable and cash-generative business. Excess cash generated by the company will be allocated to reduce debt, finance future acquisitions, and return cash to shareholders.

Sustainability target

Additionally, Sinch has set a Net Zero emissions target for 2050, which is in line with the Science Based Targets initiative (SBTi). The company aims to achieve short- and long-term emission reductions in line with the 1.5°C goal of the Paris agreement.