17 July 2014

TranscomSecond quarter 2014 results presentation

Johan Eriksson, President & CEO

Pär Christiansen, CFO

Outstanding

Customer

Experience

Transcom at a glance

1

3

• A global customer experience

specialist...

• ...providing outsourced

customer care, sales,

technical support, and

collections services...

• ...through an extensive

network of contact centers

and work-at-home agentsTranscom’s business is to

help make sure that our

clients’ customers form

positive perceptions of their

interactions with them.

”

What is Transcom?

4

Transcom in numbers

• 29,000 people…

• …representing more than 100 nationalities

• 57 contact centers, onshore, off-shore and

near shore…

• …in 24 countries

• Delivering services in 33 languages...

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

• €653.2 million revenue in 2013

• Market cap: SEK 1,650.3 million as at June 30, 2014. Listed on NASDAQ OMX Stockholm

(TWW SDB B and TWW SDB A)

A global player serving clients in many industries

5

North Europe

Iberia &

Latam

North

America &

Asia

Pacific

Central & South

Europe

CMS

32%

25%

20%

19%

4%

Communi-

cations

Financial

Services

Retail

Public Sector

Services

61%14%

6%

4%

7%

4%

Healthcare

3%

Other

Business mix

By region By industry

We have an extensive global footprint

Domestic markets

Austria

Netherlands

Slovakia

UK

Germany

Norway

Spain

Australia

Near Shore Locations Offshore Locations

Chile*

Peru*

Colombia*

Philippines*

Tunisia

6

Czech Republic

USA

Canada

Italy

Poland

Sweden

Denmark

Portugal

Switzerland

Croatia

* Developing into domestic/near shore

markets

Canada

Croatia

Serbia

Estonia

Latvia

Czech Republic

Hungary

Lithuania

Our performance in Q2 2014

2

8

• Efficiency improvements

and continuous focus on

underperforming areas

• Targeted sales efforts

- Growth with existing

clients in new

geographies

- Broadening client base

Positive progress on turnaround

We are focusing on enhancing Transcom’s performance

* Excluding non-recurring items.

599.2

631.8

560.2

589.1

554.1

605.6

653.2

2007 2008 2009 2010 2011 2012 2013

6.0%

4.4%

2.2%

0.7%

1.5%

2.7%4.3%

Revenue (€m)

Operating margin*

3.1%

1H 2014

Two thirds of the 8.7% revenue decrease in Q2 2014 is due to divestments and closures and to currency impact

51.0 48.7

38.6 37.3

34.629.9

31.729.2

10.7

6.8

Q2 2013 Q2 20149

Central &

South Europe

Iberia & Latam

North America

& Asia Pacific

North Europe

Change

-4.5%

CMS

Net revenue, Q2 2014 vs. Q2 2013

€m

-3.4%

-13.6%

-7.9%

-36.4%

152.0

166.5• Revenue impacted by divestments

and closures in order to focus on the core CRM business in prioritized geographies (€-5.6m)

• Negative currency impact: €-4.0m

Q2 2013 Q2 2014

Excluding divested or closed operations and currency effects, revenue decreased by 2.9% on a like-for-like basis

10

152.0156.9*

* Like-for-like revenue in Q2 2013 adjusted for currency effects (€-4.0m) and a number of divestments and closures (€-5.6m)

Closures and divestments:

- Sale of a number of CMS units

- Sale of Belgian operation

- Closure of Valdivia site in Chile

- Closure of Danish CRM operation

€4.9m like-for-like revenue decrease mainly due to lower volumes in Iberia & Latam (Chile), North Europe and North America & Asia Pacific

Net revenue, Q2 2014 vs. Q2 2013

on a like-for-like basis

€m-2.9%

EBIT Q2 2013 One-off items 2013

One-off items 2014

Cost savings programs

Volume & efficiency

Expansion costs

Other EBIT Q2 2014

Improved profitability in core CRM operations (€1.1 million cost due to re-domiciliation project impacted on the result this quarter)

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2.6 -0.2-1.1

-1.0

-1.2

+2.2

EBIT, core CRM business

Q2 2013 vs. Q2 2014

+1.2 2.5

• €1.2m EBIT improvement excluding one-off items in Q2 2013 and Q2 2014,

mainly driven by the North America & Asia Pacific and North Europe regions

• Temporary drop in performance in Iberia & Latam: decreasing seat utilization and

unsatisfactory efficiency in Chile

EBIT Q2 2013 One-off items 2013

One-off items 2014

Cost savings programs

Volume & efficiency

Expansion costs

Other EBIT Q2 2014

EBIT comparison including CMS is negatively impacted by €1.3m due to sale of CMS units, in addition to the €1.1 cost for re-domiciliation

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2.9 -0.3

-2.4-1.3

-1.2

+2.2

EBIT, Transcom Group

Q2 2013 vs. Q2 2014

• €1.2m EBIT improvement excluding one-off items in Q2 2013 and Q2 2014,

mainly driven by the North America & Asia Pacific and North Europe regions

+1.4 1.4

Excluding the €1.1m one-off cost due to the re-domiciliation, EBIT margin in the core CRM business improved from 1.6% to 2.5%

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• North Europe: Improved performance in

the Netherlands and divestment of loss-

making Danish CRM unit

• Central & South Europe: Profitable

growth in Italy and Germany

• Iberia & Latam: Lower volumes and

efficiency in Chile and Portugal, ramp-up

of volumes at new site in Colombia

• North America & Asia Pacific: Increased

efficiency and cost reductions

• CMS: EBIT impacted by €1.3 million cost

as a result of the divestments of a number

of CMS units

2014

Apr-Jun

2013

Apr-Jun

EBIT margin*

North Europe

Central & South Europe

Iberia & Latam

North America & AP

CRM*

CMS

Total

3.8%

1.8%

-1.4%

1.5%

1.6%

-16.3%

0.9%

1.2%

2.0%

3.5%

-0.1%

1.6%

3.0%

1.7%

* Includes €1.1m cost for redomiciliation in Q2 2014

Key priorities in 2014

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• Increase onshore seat utilization in North America

• Increase focus and accountability

• Focus on creating opportunities for profitable growth, also expanding onshore footprint

• Improve operational performance in the North Europe region

• We have ended a number of unprofitable client contracts

• Greater financial predictability through the implementation of a new agreement with one of our largest clients

• Improve operational performance in Latin America

• Address decreasing seat utilization and unsatisfactory efficiency levels in Chile

• Presence in Colombia will support strategy to expand in fast-growing Latin American markets

What will it take for Transcom to return to historical margins?

15

Key performance driver Trend vs. Q2

2013

Q2 2014 vs. Q2 2013

Average Seat Utilization

ratio

87% vs. 88%

Share of revenue generated

offshore

22% vs. 19%

Average Efficiency ratio

(billable over worked hours)

n/a - flat

Monthly staff attrition n/a – positive development (decrease in staff attrition)

Improvements on four KPIs vs. previous year

Continue improving key performance indicators

• Seat utilization

• Efficiency

• Offshore/onshore split

• Attrition

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71.075.9

80.786.3

91.194.6 94.4

90.185.7

17.2

32.138.1

59.3 56.7

49.7

36.2

55.3 54.3

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

Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214

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

• Gross debt decreased by €4.4 million compared to the Q114 level

• Net Debt decreased by €1.0m compared to the Q114 level

• Net Debt/EBITDA ratio: 2.30 (2.40 in Q114)

• Financial cost €0.6m (€1.3m in Q114)

Debt & leveraging

3

Going forward– Transcom’s strategic direction

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Transcom’s brand promise

Outstanding Customer

Experience, driving

revenue and brand

loyalty

”

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Growth opportunities

North America and Asia Pacific

• Continue expanding in local markets in Asia Pacific

• Expand onshore volumes in North America

Latin America

• Serving domestic markets and the US, in addition to Spanish clients

North Europe

• Leverage strong position in home market

Central Europe

• Primarily near shore opportunities

• Strong capability in expanding Eastern European markets

Stay up-to-date on Transcom

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www.transcom.com blog.transcom.com

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Thank you!

Questions?