14 February 2013

Transcom Fourth Quarter and Full-Year 2012 Results Presentation

Johan Eriksson, President & CEO

Outstanding

Customer

Experience

Transcom at a glance

1

3

• A global customer experience

specialist...

• ...providing outsourced

customer care, sales,

technical support, and credit

management...

• ...through an extensive

network of contact centers

and work-at-home agents Transcom’s business is to

help make sure that our

clients’ customers form

positive perceptions of their

interactions with them.

”

What is Transcom?

Transcom in numbers

• 30,000 people

• 70 contact centers, onshore, off-shore and near shore

• 28 countries

• Delivering services in 33 languages...

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

• €605.6 million revenue in 2012

• Market cap: SEK 896.8 million as at February 11, 2013. Listed on NASDAQ OMX Stockholm

(TWW SDB B and TWW SDB A)

4

We have an extensive global footprint

Home markets

Austria

France

Netherlands

Slovakia

UK

Belgium

Germany

Norway

Spain

Australia

Near Shore Locations Offshore Locations

Chile*

Peru*

Philippines*

Tunisia

5

Czech Republic

USA

Canada

Italy

Poland

Sweden

Denmark

Portugal

Switzerland

Croatia

* Developing into home/near shore markets

Canada

Croatia

Estonia

Latvia

Czech Republic

Hungary

Lithuania

Transcom’s organization

6

• Corporate management

- CEO, CFO, CIO, Head of Operations, Head of Global

Sales & Accounts

• Regional management

- North region (28% of revenue)

- Iberia (19% of revenue)

- North America & Asia Pacific (20% of revenue)

- South (15% of revenue)

- Central Europe (10% of revenue)

- Credit Management Services (CMS) in eight European

countries (8% of revenue)

Transcom’s service portfolio

7

• Customer service

Customer experience specialists trained to support

best-in-class product, service and brand experiences

for our clients’ customers

• Technical support

Tiered support models, from the simplest questions to

more complex support scenarios

• Customer retention

Preventing defection and maximizing the lifetime of a customer

• Customer acquisition

Acquiring new customers cost-efficiently, and building

strong customer relationships as a basis for future interactions

• Cross- and upselling

Building relationships and identifying customer needs

during any type of interaction, and taking appropriate

action to satisfy the customer’s need

• Credit management services (CMS)

Early collections, Contingent collections and Legal collections

Recap of our situation and focus areas

8

Situation today and short-term focus

• Transcom’s profitability has decreased

in recent years, but is now improving

• Continuous focus on underperforming

areas

• Growth in selected areas and efficiency

improvements

• Broadening client base

Market trends

• Growth driven by domestic Asia Pacific

and Latin America markets

• Diversification (geography and

business models)

Going forward - Strategic direction

• Creation of outstanding customer

experiences, while helping clients to

reduce cost and drive growth

• Flexibility is critical

Our performance in Q4 2012 and FY 2012

2

Revenue in Q4 2012 increased 14.1% compared to Q4 2011

37.9 45.4

25.8 31.9

28.5

31.0 21.4

25.2 14.3

16.0 14.9

13.5

Q4 2011 Q4 2012 10

Central Europe

South

Iberia

North America

& Asia Pacific

North

Growth

+19.7%

CMS

Net revenue, Q412 vs. Q411

€m

+23.8%

+8.6%

+17.5%

+11.5%

-9.0%

162.9

142.8

• Increasing volumes with our installed base clients

• New clients contributed meaningfully to growth, not least in North America & Asia Pacific

Revenue in 2012 was 9.3% higher than in 2011

140.5 162.4

98.3 112.1

108.9

119.4

92.6

98.5 55.6

57.8 58.1

55.3

2011 2012 11

Central Europe

South

Iberia

North America

& Asia Pacific

North

CMS

Net revenue, 2012 vs. 2011

€m • Growth in all regions

• CMS revenue decreased

• Some of our offshore locations evolving into home markets as well

- Grow in new attractive markets

- Diversifying our client base

- Increasing seat capacity utilization

605.6

554.1

Growth

+15.6%

+14.0%

+9.6%

+6.4%

+4.0%

-4.8%

Underlying EBITA in Q4 2012 improved compared to Q4 2011

12

* Underlying performance, excluding restructuring and other non-recurring costs

** Underlying performance, excluding restructuring and other non-recurring costs, and a reassessment of

accrued revenue in the CMS business unit

Restructuring

savings

Volume &

efficiency-

driven

gains

Expansion

investments Sales &

support

Non-

recurring

costs

related to

France EBITA

Q412*

EBITA

Q412** EBITA

Q411

Reassess-

ment of

accrued

revenue in

CMS

2.2

+3.0

+1.3 -4.4

-0.1 +0.8 2.9

3.3 +0.4

Underlying EBITA in 2012 improved compared to 2011

13

* Underlying performance, excluding restructuring and other non-recurring costs

** Underlying performance, excluding restructuring and other non-recurring costs, and a reassessment of

accrued revenue in the CMS business unit

Restructuring

savings

Volume &

efficiency-

driven

gains Expansion

investments Sales &

support

Reclass-

ification of

amorti-

zation

EBITA

2012*

EBITA

2012** EBITA

2011

Reassess-

ment of

accrued

revenue in

CMS

Non-

recurring

costs

related to

France

6.8

+7.6

+3.5 -7.4

-0.7 +1.2 +1.7 12.8 +0.4 13.2

EBITA margin improvements in North America & APAC, Central Europe and South, offset by lower margins in North and CMS

14 * Underlying performance, excluding restructuring and other non-recurring costs

2012

Oct-Dec

2011

Oct-Dec

EBITA margin*

North

Central Europe

South

Iberia

North America & AP

CMS

TOTAL

3.1%

4.0%

-2.4%

4.4%

-0.6%

2.0%

1.8%

10.5%

-8.8%

-14.0%

4.9%

-1.6%

9.9%

1.5%

FY 2012 FY 2011

EBITA margin*

North

Central Europe

South

Iberia

North America & AP

CMS

TOTAL

3.1%

0.2%

-2.5%

4.5%

0.6%

7.2%

2.1%

5.9%

-0.1%

-8.8%

4.7%

-3.5%

8.7%

1.2%

• Volume and efficiency-driven performance improvements

in North America & Asia Pacific, Central Europe and

South

• North: operational performance issues on some client

projects and ramp-up costs for a new clients. Action

expected to yield results in Q1 2013.

• CMS: Decrease in volumes handled and increased price

pressure. Performance in the UK has improved, and we

expect a full turnaround during 2013.

• Volume and efficiency-driven performance improvements

in North America & Asia Pacific, Central Europe and

South

• North: lower operational efficiency on some client

projects, higher attrition and higher training costs.

• CMS: Decrease in volumes handled impacted results.

Cost reduction initiatives lowered SG&A by €2.1m.

We need to successfully address a number of short- and medium-term operational and financial challenges

15

Stop the losses in France (€1m/month in 2012). Transcom plans to stop financing

the French subsidiary’s loss-making operations beyond March 1, 2013

Increase onshore seat utilization in North America

Successfully resolve tax claims

Germany – renegotiate labor agreements

Return UK CMS to profitability

Successfully implement action plan to improve operational performance in the North region

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

16

Key performance driver

Trend vs. 2011 Q4 2012 vs. Q4 2011

Average Seat Utilization ratio

(87% vs. 78%)

Share of revenue generated offshore

(20% vs. 16%)

Average Efficiency ratio (billable over

worked hours)

n/a (positive development)

Monthly attrition n/a (positive development)

Improvements on four KPIs vs. previous year

Continue improving key performance indicators

• Seat utilization

• Efficiency

• Offshore/onshore split

• Attrition

126.8

111.2

65.3 65.0 71.0

75.9 80.7

89.1

73.4

13.2 11.9 17.2

32.1 38.1

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Q211 Q311 Q411 Q112 Q212 Q312 Q412

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

• Gross debt increased by €4.8m vs. Q312

• Net Debt increased by €6.0m compared to the Q312 level

• Net Debt/EBITDA ratio: 1.97 (1.71 in Q312)

• Interest charge €0.7m (€0.8m in Q312)

Debt & leveraging

3

Going forward – Transcom’s strategic direction

19

Transcom’s brand promise

Outstanding Customer

Experience, driving

revenue and brand

loyalty

”

North America and Asia Pacific • Continue expanding in local markets in Asia Pacific

Latin America • Serving domestic markets and the US,

in addition to Spanish clients

North Europe

Central Europe • Near shore

Growth opportunities

21

Short-term focus

• Continuous focus on executing turnaround in underperforming areas

• Continued focus on revenue expansion and efficiency improvements

• Increased focus on quality and service delivery to support significant ramp-up of new volumes

Medium-to long-term priorities

• Grow revenue in line with overall market growth in the markets where we choose to compete

• Improve profitability and decrease earnings volatility

- Continuously strengthen operational efficiency

- Optimizing our geographic delivery mix

- Focus on broadening our client base

Summary: key priorities going forward

Thank you! Questions?