21 April 2015

Outstanding

Customer

Experience

Transcom

First quarter 2015 results presentation Johan Eriksson, President & CEO

Pär Christiansen, CFO

At a glance

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3

• A global customer experience specialist…

• …employing 30,000 people…

• …representing more than 100 nationalities...

• …operating 54 contact centers, onshore, off-shore and near shore…

• …in 23 countries…

• …delivering services in 33 languages...

• ...to over 400 clients in various industry verticals…

• …generating €616.8 million revenue in 2014…

• …with a market cap of SEK 2.1 billion as at March 31, 2015. Listed on Nasdaq Stockholm (Mid Cap segment) under ticker TWW.

Transcom in numbers

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• Founded in Sweden in

1995

• European expansion;

focus on organic growth

• Presence in 15 European

countries at the end of

2001

• Transcom WorldWide

formed in 2000,

headquartered in

Luxembourg

• Shares were listed in

2001

• Acquisition-led growth

• Diversification into debt

collection via acquisitions

• Expansion of near-shore

services

• Establishment in Latin

America, serving Spanish

clients

• Expansion into North

America & Asia through

acquisition of NuComm

and Cloud10

• Restructuring program to

strengthen

competitiveness and

improve profitability

• Focus on growth in

prioritized geographies;

divestment of smaller

country operations

• Divestment of Credit

Management Services

(CMS) unit, to focus on

core customer care

business

• Re-domiciliation to

Sweden

• Growth with clients while

creating more balanced

client portfolio

• Continuously improve

service offering, focusing

on advanced, value-

added services

• Strengthen global

footprint

• Ensure competitive

operational platform

This year, Transcom celebrates 20 years in business

Steady improvement towards our mid-term EBIT margin target of at least 5 percent

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Q1 2013 Q1 2014 Q1 2015

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12-month rolling EBIT* margin development

* Excluding non-recurring items

Mid-term target

• Targeted sales efforts

- Growth with existing

clients in new

geographies

- Broadening client base

• Efficiency improvements

and continuous focus on

underperforming areas

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Q1 2014 Q1 2015

Net income, Q1 2015 vs. Q1 2014

€m 5.3

1.6

Net income improved significantly in the quarter

• €2.5m improvement in net

financial items

• Income tax decreased by €0.7m

(current tax in Q1 2015: 25%)

Our performance in Q1 2015

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Q1 2014 Q1 2015

Like-for-like revenue, Q1 2015 vs. Q1 2014

€m 160.9 157.1

• Like-for-like revenue in Q1 2014

adjusted for currency effects (€+4.6m)

and CMS divestments (€-6.7m), and

one-off effect in Q1 2014 (€-0.9m due

to sale of right to collect on portfolio)

• The €3.8m like-for-like revenue

increase was mainly driven by higher

business volumes in North Europe and

Iberia & Latam

• We are refocusing our efforts on

revenue growth, targeting at least 5%

On a like-for-like basis, revenue in Q1 2015 increased by 2.4%

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EBIT Q1 2014 One-off items Q1 2014

Cost savings programs

Volume & efficiency

Expansion costs

Other EBIT Q1 2015

5.4 -2.1 +1.7

-0.2 +0.6

+0.4

EBIT (mEUR)

Q1 2014 vs. Q1 2015

5.9

EBIT margin in Q1 2015 improved to 3.7% from 3.4% (1.6% in Q1 2014 excluding CMS and one-off effect)

• EBIT in Q1 2014 includes €1.0m from since-divested CMS units and a positive €0.9m one-off effect

• Excluding the effects mentioned above, the EBIT margin improved by 2.1 percentage points

• Higher profitability in the North America & Asia Pacific and Iberia & Latam regions

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• North Europe: EBIT strengthened due to higher

volumes and improved efficiency in the

Netherlands. EBIT in Q1 2014 was positively

impacted by a €0.9m one-off item.

• Central & South Europe: Lower volumes in

Italy and start-up of new projects.

• Iberia & Latam: Improved profitability in Chile

and Portugal. Continued focus on improving

efficiency in Latin America.

• North America & Asia Pacific: Increased

efficiency and cost reductions. Positive

development in Asia continues.

EBIT margin improvement driven by higher profitability in North America & Asia Pacific and Iberia & Latam

2015

Jan-Mar

2014

Jan-Mar

EBIT margin

North Europe

Central & South Europe

Iberia & Latam

North America & AP

CRM

CMS*

Total

4.8%

4.2%

1.3%

3.5%

3.7%

n/a*

3.7%

4.8%

5.3%

-1.1%

0.3%

2.3%

18.1%

3.4%**

* Divested since Q1 2014

** 1.6% excluding CMS and €0.9m one-off effect in Q1 2014

Trend vs.

Q1 2014

Q1 2015 vs. Q1 2014

Average seat utilization

ratio

Average Efficiency ratio

(billable over worked hours

Monthly staff attrition

89% vs 88%

n/a – slight positive development

Decrease – positive development

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Improvements on KPIs vs. previous year

Key drivers to reach mid-term profitability targets

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80.7 86.3

91.1 94.6 94.4

90.1 85.7

67.0 62.8

56.7

38.1

59.3 56.7

49.7

36.2

55.3 54.3

38.4

24.6 27.1

0.00

0.50

1.00

1.50

2.00

2.50

3.00

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115

Gross debt (€ m) Net debt (€ m) Net debt/EBITDA

• Gross debt decreased by €6.1m compared to the Q414 level

• Net Debt increased by €2.5m compared to the Q414 level

• Net Debt/EBITDA ratio: 0.9 (0.9 in Q414)

Debt & leveraging

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Going forward – Transcom’s strategic direction

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Transcom’s brand promise

Outstanding Customer

Experience, driving

revenue and brand

loyalty

”

Attractive market growth

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• 5-6% annual growth in customer

management BPO in the next five years

• Fastest growth in emerging APAC and

Latam…

• …but the bulk of the industry increase will

be generated in mature markets, in

particular the United States

An industry in change

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PRIMARY CHANNELS USED:

•Telephone, including voice and interactive voice

response (IVR) self-service

•Email response management

•Web chat

•Social media monitoring and response

•Knowledge management for Web-based self-service

Frost & Sullivan recognizes Transcom’s growth and innovation in multiple customer care outsourcing markets

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• 2015 European Frost & Sullivan Award for

Visionary Innovation Leadership

• 2014 Peru Frost & Sullivan Award for Growth

Excellence Leadership

• 2014 Philippines Contact Center Outsourcing

Growth Excellence Leadership Award

Transcom’s strategic priorities

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www.transcom.com blog.transcom.com

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