20 March 2014

TranscomLondon Roadshow 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 credit

management...

• ...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?

Transcom’s service portfolio enables the creation of outstanding customer experiences, while reducing cost and helping to drive growth

Customer service

• Quality, accuracy, speed,

efficiency and sales targets

• Competitive differentiation

• Reinforce buying decisions

and brand relationships

Technical support

• Tiered support models

• Extensive product training

• Resolve customer issues at

first contact

Customer retention

• Prevent defection and

maximize customer lifetime

• Protect your revenue

streams and turn potential

defectors into fans

4

Customer acquisition

• Acquire new customers

cost-efficiently

• Uncover customer needs,

identify the right offerings,

secure customer orders

Cross-selling & upselling

• Generate new sales directly

from existing customer base

• Support complex products

in day-to-day service

interactions

• Adept at building

relationships

Collections

• Recover debt and

rehabilitate customers

• Case management approach

• In-house teams for legal

processes

5

Transcom in numbers

• 29,000 people…

• …representing more than 100 nationalities

• 62 contact centers, onshore, off-shore and

near shore…

• …in 26 countries

• Delivering services in 33 languages...

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

• €653.2 million revenue in 2013

• Market cap: SEK 1,525.8 million as at December 30, 2013. Listed on NASDAQ OMX

Stockholm (TWW SDB B and TWW SDB A)

A global player serving clients in many industries

6

North Europe

Iberia &

Latam

North

America &

Asia

Pacific

Central & South

Europe

CMS

30%

22%20%

19%

9%

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

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Czech Republic

USA

Canada

Italy

Poland

Sweden

Denmark

Portugal

Switzerland

Croatia

* Developing into domestic/near shore

markets

Canada

Croatia

Estonia

Latvia

Czech Republic

Hungary

Lithuania

What is customer experience and how does Transcom add value?

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What is customer experience?

• There is a multitude of “touch points” where

a customer can interact with an

organization, e.g. when evaluating,

purchasing, using, or getting support for a

product

• Customer Experience = The sum total of

a customer’s experience with a product, a

service, or a brand

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“Customer experience is how your customers

perceive their interactions with your company.”

What is Transcom’s role?

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Transcom’s principal role is to positively impact customer loyalty and, thus, revenue

through making service and support interactions as effortless and enjoyable as possible

How Transcom delivers Customer Experience

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Multiple ToolsInconsistent Information

High Handle Time Low Productivity

• At the start of this project, we did not have a dynamic and well-designed knowledge

base system that could aid our agents in supporting and resolving our client’s

customers’ issues

• The reference information that our agents had to use was spread out across many

different documents, affecting their productivity negatively:

Client case example – innovative knowledge base for a world-leading consumer electronics company

Process Maps and Decision Trees

Frequently Asked Questions

Simulators Product How To’s

F e a t u r e s B e n e f i t s G a i n s

Transcom developed a robust and dynamic knowledge base system

O n e S t o p O n e S o u r c e

“One-Stop-Shop” repository of support tools and materials

R e p o r t s A n a l y t i c s

Most Viewed Content RatingAgent

FeedbackSite Utilisation Keywords

Powerful analytical capabilities

89.00%

97.00%

80.00%

82.00%

84.00%

86.00%

88.00%

90.00%

92.00%

94.00%

96.00%

98.00%

100.00%

May June July August September

First Call Resolution

First Call Resolution Linear (First Call Resolution)

Our first call resolution is significantly better since the implementation of the system

69%

85%

50.00%

55.00%

60.00%

65.00%

70.00%

75.00%

80.00%

85.00%

90.00%

95.00%

100.00%

Q1 Q2 Q3 Q4

Customer Satisfaction Rating

Customer Satisfaction Rating Linear (Customer Satisfaction Rating)

And we have seen a significant increase in customer satisfaction

Our performance in 2013

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Key events in 2013

• Settlement agreement signed concerning former French subsidiary

• Settlement agreement resolving tax dispute in Italy

• Divestment of German Credit Management Services (CMS) operations

• Establishment of operations in Colombia

• Organizational changes in the North America & Asia Pacific region

• Transcom Cares launched as overarching Corporate Social

Responsibility (CSR) governance program

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• 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

During 2013, we continued to focus hard on enhancing Transcom’s performance

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*

* Underlying performance, excluding restructuring and other non-

recurring costs* Excluding non-recurring items.

Revenue in 2013 increased by 7.9% compared to 2012.

180.4 197.0

138.3145.8

119.4130.9

112.1122.7

55.3

56.8

2012 201321

Central &

South Europe

Iberia & Latam

North America

& Asia Pacific

North Europe

Growth

9.2%

CMS

Net revenue, 2013 vs. 2012

€m

5.5%

9.6%

9.4%

2.7%

653.2

605.6• All regions contributed to overall

growth

• Net of currency effects, growth was 8.8% (9.3% in core CRM operations)

• Main driver is increasing volumes with our installed client base

We have improved against the most important operational KPIs

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Key performance

driver

Trend vs. 2012 2013 vs. 2012

Average Seat

Utilization ratio

(87% vs. 85%)

Share of revenue

generated offshore

(22% vs. 20%)

Average Efficiency

ratio (billable over

worked hours)

n/a (positive development)

Monthly staff

attrition

n/a (stable)

Improvements on four KPIs vs. previous year

Continue improving key performance indicators

• Seat utilization

• Efficiency

• Offshore/onshore split

• Attrition

EBIT 2012 Cost savings programs

Volume & efficiency Expansion costs Other EBIT 2013

EBIT, excluding non-recurring items, increased by €8.7m in 2013 compared to 2012

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8.9

+8.9

+8.1

-2.9

17.6

-5.4

EBIT margin* increase in FY 2013 driven by improvements in Central & South Europe and CMS

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FY 2013 FY 2012

EBIT margin*

North Europe

Central & South Europe

Iberia & Latam

North America & AP

CRM

CMS

Total

2.5%

2.9%

2.8%

-1.2%

1.9%

10.9%

2.7%

3.7%

-3.8%

4.6%

0.2%

1.3%

3.5%

1.5%

* Excluding non-recurring items

• North Europe: Costs for closing the Norrköping

site and the CRM operations in Denmark.

Temporarily higher costs due to volume ramp-up

in Norway and Sweden. New sites in Oslo,

Norway and Umeå, Sweden increased costs.

• Central & South Europe: Higher volumes,

increased offshore delivery, and deconsolidation

of former French subsidiary.

• Iberia & Latam: Costs due to expansion in Spain

and Latam, and closure of site in Valdivia, Chile.

Lower volumes and efficiency in Chile.

• North America & Asia Pacific: Lower volumes

delivered onshore in North America, price

decrease on one account.

• CMS: Revenue increase and lowered production

and overhead costs

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65.071.0

75.980.7

86.391.1

94.6 94.4

11.917.2

32.138.1

59.3 56.7

49.7

36.2

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

Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413

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

• Gross debt stable compared to the Q313 level

• Net Debt decreased by €13.5m compared to the Q313 level

• Net Debt/EBITDA ratio: 1.40 (1.93 in Q313)

• Financial cost €1.3m (€2.0m in Q313)

Debt & leveraging

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Going forward– Transcom’s strategic direction

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

• Higher costs due to ramp-down in Chile while simultaneously ramping up in Colombia

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

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Transcom’s brand promise

Outstanding Customer

Experience, driving

revenue and brand

loyalty

”

Transcom’s long-term strategic priorities are informed by these important trends

What we are seeing… Transcom is responding by…

More channels and increasing complexity• Rising interaction volumes with an increasingly

sophisticated customer base

• Social networks are emerging as important

customer channels

• Increasing product complexity

• Developing integrated channel competencies

• Providing more insight due to increasing

customer demands

• Developing analytic platforms and KPIs specific

to customer service via non-voice channels

Business Focus• While price is still an issue, more and more, the

focus is on generating revenue – up-sell/cross-

sell and customer retention – and customer

loyalty

• Sourcing, training and retaining the best agents

to deliver higher levels of customer service

Market• Stagnant growth in mature, Western

outsourcing markets

• Significantly higher growth in emerging markets,

particularly APAC and Latin America

• Seeking to capitalize on domestic opportunities

in developing markets to drive growth and

diversify revenue

• Developing traditional offshore locations as

delivery centers

• Increasing focus on community engagement

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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

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Transcom Cares– CSR focus areas and objectives

Transcom Cares was launched as our CSR governance program in November 2013

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Starting in November 2013, Transcom Cares is our global CSR

governance program. We have three prioritized focus areas:

People developmentTo be recognized as a responsible employer, attracting people and

strengthening our brand in all our local markets.

Equality and diversityWe strive for gender equality on all levels, and are dedicated to show that equal

opportunity employment is part of our DNA.

Community engagementMany of our community engagement activities depend on our employees’

passion to contribute their time and energy, making us all proud to work at

Transcom.

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What we have done

People Development

• >85% of managers

recruited internally – a true

career for young people

• Learn as we go – role

models and mentors

support our young leaders

on their road to success

• Caring managers – 90% of

employees feel they get

support from their

manager

• Extensive training

programs and talent

management programs in

place or to be launched

Equality and Diversity

• Employment of disabled

people, for example in the

Netherlands, Germany,

Spain, and Chile

• Women make up 61% of

our workforce, but 39% of

managerial employees –

we need to empower and

facilitate a more equal

distribution

• Diversity of cultures and

languages is key to our

service delivery, e.g. in

our multilingual centers

Community Engagement

• On-site child care centers,

pharmacies, and

employee microloans are

some activities supporting

our employees in the

Philippines

• Supporting the local

communities in the cities

or countries we are

operating in – via charity

organizations or direct

involvement

• Activities to aid poor

people in Latin American

countries and Asia

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Our objectives going forward

People Development

• Launch of a global Talent

Management program in

April 2014

• Global management

training program for

managers at all levels

• Attrition ratio in line with

market levels

Equality and Diversity

• Gender distribution -

manager ratio reflecting

our gender distribution for

the total workforce

• Diversity – more proactive

management and follow-

up

Community Engagement

• Transcom Cares program

launched globally in 2013

• Activities will continue to

be initiated and driven by

employees, supported by

Transcom

Transcom fully supports the ten principles of the UN Global Compact with

respect to human rights, labor rights, environmental care and anti-

corruption work.

These principles are an integral part of our corporate strategy, business

culture and day-to-day operations.

Policies and Codes of Conduct

Code of Business Conduct

• Ethical practices adopted across our company and the standards to which our people are expected to aspire.

• Action plan: All employees are obliged to sign the Code of Conduct and we also conduct traning sessions every year.

Supplier Code of Business

Conduct

• Standards to which our suppliers and partners are expected to adhere.

• Action plan: Supplier self-assessments and evaluation conducted by Ethos during Q1 2014.

Environmental Policy

• Our commitment to a responsible approach to reducing the environmental impact of our business and to encourage our people to adopt environmentally -friendly working practices.

• Action plan: Review of travel policies.

Transcom is a signatory of UN Global Compact

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Stay up-to-date on Transcom

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Thank you!

Questions?