May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital...

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Q1 2021 Presentation May 12, 2021

Transcript of May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital...

Page 1: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Q1 2021Presentation

May 12, 2021

Page 2: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Summary

• Q1 EBITDA +35% – Organic growth 20%, EBITDA margin +1.6pp vs Q1 LY

• eCommerce & Tech growing 46% vs Q1 LY to reach 43% of total revenue

• Strong intake of new business – Enabled by digital offering and near/offshore expansion

• New board members supporting development in North America and of eCommerce & Tech clients

• Continued execution on strategy to sustain >5-10% organic growth p.a. and to achieve >16% EBITDA

2

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123

01

02

03

Company overview and Q1 highlights

3

Financial performance

Strategy going forward

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123

01

02

03

Company overview and Q1 highlights

4

Financial performance

Strategy going forward

Page 5: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Transcom is a global leader in digital customer experience

…in digital and traditional channels…

…enabled by leading digital capabilities

5

Transcom provides world class customer experience…

Customer care & Technical support

Customer acquisition, sales & retention

Compliance & Back office

Chat & Email

Messaging & Social media

Voice & Video

Digital CX Advisory

Digital solutions

Digital operations

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Services & Utilities

eCommerce& Tech

Telco & Cable Cable TV &

Broadband operatorsTelecom

operators

Segment Client examplesShare of revenue

EBITDA margin Q1 LTM

19%

10%

7%

Serving leading consumer brands across industries

6

Utilities BFSI Gov &Healthcare

Media Travel

Online retail

IT/Tech Fintech Logistics Consumer durables

40%

31%

30%

Page 7: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Growing strongly in highly profitable eCommerce & Tech sector

Strong YoY growthRevenue, MEUR

Long term and profitable growth Revenue, MEUR; EBITDA, %

Growing share of portfolio %

44,464,9

Q120 Q121

35% 43%

Q120 Q121

46% +8p.p.

Client Service

Global consumer tech • Customer service & Technical support

• North America & Europe

Global consumer tech • Customer service & Technical support

• North America

Global online payments

• Customer service & Backoffice

• EMEA

US and EU fashionsubscription

• Membership service• North America &

Europe

Global parcel delivery • Customer service• North America &

Europe

Consumer tech

Logistics

Fintech

Online retail

Top 5 clients, eCommerce & Tech

Consumer tech

7

140167

210230

2020

16.9%19.5%

14.3%

2018*

19.0%

2019 2021 Q1 LTM

RevenueEBITDA Margin

* 2018 EBITDA adj. For IFRS 16 is an estimate; IFRS16 reporting was fully implemented from 2019 onwards

Page 8: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Strong offering to eCommerce & Tech clients at all stages of their lifecycle

Startups Scaleups Blue chipsValue proposition

Size

Examples

Brands

~5 – 200 FTEs ~100 – 1000 FTEs >1000 FTEs

• Flexibility• Simple commercial

model• Proven solutions and

best practices

• Rapid expansion• Global reach• Standardized approach

and one point-of-contact

• Scalable locations• Operational excellence

and competitive cost• People best practices

and sustainable practices

8

Page 9: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Transcom’s digital solutions drives CSAT, productivity and revenue for clients

• Chatbots• Intelligent routing• Social media and

messaging integration

T:Perform

T:eCommerceT: Automation

Supply chainintegration

+30% CSAT +25% productivity

AI routing ofincoming calls

~60K sales casesper month

Knowledgebase for search and

coaching

+7.5% FCR +14.2% NPS

Conversational AnalyticsConversational AIMessaging

Predictive analyticsfor lead generation

+41% salesconversion

Troubleshooting bot

+8% deflection Client ROI in 3

months

WhatsApp channelimplementation

+64% Productivity 4.9 (5) CSAT

T:Perform

Client examples

Solution examples

• Digital recruitment • Virtual training• Coaching, engagement &

performance management• Conversational analytics

• WAH• Automation• Business intelligence• eCommerce• Omnichannel

Customer facing

Agent support

Operating platforms

9

Page 10: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Significant share of revenue in digital channels and expected to grow strongly

10

• Revenue from agent assisted digital channels and omnichannel 27% of revenue Q1 2021

• Supported by 236 robots handling +300k cases/month

• In addition 396 automation processes managing 300k tasks 24/7 every month

27%

12

7

6

-5

-5

-10Voice

Onlineform

Socialmedia

Messaging

Chat

Email

• Digital channels preferred by young consumers – And provides superior productivity vs voice

• Digital channels drives outsourcing to avoid complexity and investments

• Transcom well positioned to capture growth in digital channels through a strong service offering

*) Source: Zendesk Customer Experience survey 2020, Transcom analysis

Transcom digital channel and omni-channel share of revenue, Q1 2021

Millennials/Gen Z use of CX channels vs general population, percentage points*

Page 11: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Alfred von Platen

Elected to the Board in 2018Previously CEO Xzakt

New board members supporting focus on North America and eCommerce & Tech clients

11

Fredrik CappelenChairman

Elected to the Board in 2015, Chairman since 2017

Brent J. Welch

Elected to the Board in 2020Previously COO Teleperformance

Klas Johansson

Elected to the Board in 2015Partner, Altor

Mattias Holmström

Elected to the Board in 2017Principal, Altor

Lisa StonerElected to the board May 3, 2021

Global Head of Support Operations at Uber

Previously 20 years with Convergys, recently SVP HealthCare, Government, Consumer Goods and Services

Donald HicksElected to the board May 3, 2021

VP Trust Policy and Partnerships at Airbnb

Previously VP Operations, Twitter; Global Head of Operations and Customer Care, Facebook; Global Head of Customer

Care, Google; Director Operations, Amazon

Page 12: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Global delivery and growing near/offshore capability provides scalability

12

33Languages

23Countries

54Locations

Site locationsServiced geographies

EuropeGlobal English

Regional mix2020 revenue

Shoring mix2020 revenue

34%

66%

12%

24%63%

OffshoreNearshore Onshore

Page 13: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Three new near/offshore locations opening during H1 2021

13

Malaga, Spain• Nearshore for Nordics, Dutch,

German• Spanish onshore

Bogota, Colombia• North American nearshore• Spanish offshore

Zenica, Bosnia-Herzegovina• German nearshore

Page 14: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Transcom has a world leading WAH solution and demand is growing in the new normal

14

WAH, % of delivery

Recruit Train Onboard Operate

Fully virtual and highly automated selectionprocess in all stages

Wide-range of training formats (gamification, e-learning, VR)

Employee engagement & community building –Cultural induction tailored to client’s brand

Virtual model to coach, monitor, manage, develop & incentivize

yOperating model, technical platform, security and compliance (GDPR, PCI, COPC)

Unrivalled scalability from vast talent pool

Reduced cost of idle capacity

Improved service quality & customer experience

Increased business resilience & flexibility

Transcom named#10 US remotework company

4 4 4 6 6 13

4664 52 52

47

Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Temporary

Permanent50%

68%58% 58% 60%

50%

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Sustainability framework aligned with core business

15

Be trusted by employees, clients, and

clients’ customers to handle their

data and safeguard integrity

and privacy

Actively empower and support our people in their

current role and future career

Create an inclusive and

diverse workplace

Unlock the power of local

communities by contributing to the

overall equality, opportunity, and

sustainability

Reduce and mitigate our

negative environmental impact through

the way we think, act, and procure

Ensure that our actions,

interactions, activities, and decisions are

rooted in a core sense of ethics

and responsibility

PeopleDevelopment

Inclusion& Diversity

CommunityEngagement Environment Business

EthicsSecurity

& Privacy

Employee satisfaction &

development, job creation in developing

economies and emerging markets

Gender balance, fighting

unconscious bias

Local community and employee engagement

agendas

Reduce scope 1, 2, and 3, global

governance for e-waste

Conduct, ethics, anti-corruption

training & compliance,

sustainable supply chain

Data privacy and security training &

compliance

How

?Ta

rget

s

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Stable and diversified revenue base

16

• Top 10 clients representing 47 % of revenue

• #1 client 11% of revenue

Diversified client base… …split in several contracts…Top 10 clients, share of revenue, % Top 10 lines of business, share of

revenue, %

2020

47%

27%

• Top 10 LoBs representing 27% of revenue

• #1 LoB 4% of revenue

• Average relationship of top 10 clients 16 years

• 2020 revenue retention 97%

… with long term relationships…Top 10 clients, duration of relationship, years

1128

191414

1721

813

19

123456789

10

Ø 16 years

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• Continued acceleration of new business momentum

• Contract wins split ~50/50 between new logos and existing clients

• Rich pipeline and carry over provides solid growth momentum into 2022

Strong development of new sales

17

Contract wins new business1, Annual contract value, end Q1, MEURKey 2021-sales year wins

Global TelcoCustomer care

Carve out13 MEUR

Italy insuranceCustomer careItaly onshore

4 MEUR

Ministry of healthCOVID hotline

Germany onshore3 MEUR

Rideshare AppCustomer careEU nearshore

3 MEUR

Global TechTech support

US WAH20 MEUR

EU retaileCom customer care

Spain onshore2 MEUR

US Cable operatorBilling

Asia offshore1 MEUR

EU ConsumerCustomer careItaly nearshore

1 MEUR1. Excludes renewals and growth in existing contracts 2. 2020 Sales year is 9 months and ending September 2020. 2021 Sales year is 12 months and starting 1 Oct 2020.

1339 44

7611

56

4

2018

18

2019 20202 20212 2021 Outlook

60

132In-year Revenue

Page 18: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Strong first quarter with profitable organic growth

18

2020 Q1 2021 Q1

18.6

13.7

+35.3%

EBITDA, EUR Millions Revenue, EUR Millions

2020 Q1 2021 Q1

10.712.3+1.6pp

EBITDA Margin, Percent

• Organic growth 20%, currency impact -2%

• Growth driven by eCommerce & Tech sector and existing clients

• Positive volume impact and industry mix shift

• Operational excellence and productivity improvement

2020 Q1

150.9127.7

2021 Q1

+18.1%

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Transcom continues on the trend

19

Revenue EUR millions; EBITDA1 percent

Solid and accelerating organic growth in continuing business• Strong growth in E-commerce & Tech• Investments in sales organization• Development of digital offering

Continued steady margin improvements• Client mix shift• Operational Excellence• Near/offshore delivery

115 76 50468

7.2%

2018*

9.8%9.1%

6.5%

2017*

11.6%

9.0%10.2%

2019

12.7%

2020

469542 558

58133

13.0%

11.3%

2021 Q1 LTM

2020 Q1 LTM

534

EBITDA Margin excl. IFRS 16Exited businessContinuing business

EBITDA Margin

* 2017 and 2018 EBITDA adj. For IFRS 16 is an estimate; IFRS16 reporting was fully implemented from 2019 onwards

469 468492

558

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123

01

02

03

Company overview and Q1 highlights

20

Financial performance

Strategy going forward

Page 21: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Continued growth and margin improvement

21

• Continued strong revenue growth– 150.9 MEUR (127.7)– Growth of 18.1% in Q1 2021 (20.3% excluding currency

impact - all organic)• Q1 EBITDA ex Non-recurring items1

– 18.7 MEUR (13.8) – Margin of 12.4%, +1.6pp improvement vs Q1 2020

• Operating cash flow 11.7 MEUR (7.3), and net cash flow is 3.1 MEUR (3.0)

• Non-recurring items: -0.1 MEUR (-1.6) • Net debt/EBITDA of 3.3x (Q4 2020 of 3.3x)1

• Leverage according to bond definition: 4.6x (Dec 2020: 5.1x)2

Page 22: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Strong sequential momentum in growth and margin improvement

22

Revenue, EUR Millions

• Transcom is continuing the strong growth driven by eCommerce & Tech clients and primarily by English segment

• Continued y-o-y margin improvement in Q1• Volume, positive industry shift and operational

improvements contribute to the margin expansion

EBITDA Margin, Percent

134 131142132 140

157

128151

Q1Q2 Q3 Q4

-1.3% +7.6%+11.0% +18.1%

Q3Q2 Q4 Q1

13.2

9.110.811.1

12.411.0

14.3 15.1+2.0pp+2.2pp

+0.8pp

+1.6pp

2019 2020 2021

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Organic growth of 20% and margin improvement of 2.7 pp vs Last year

23

All figures in EUR Millions

Q1 2020Growth and Productivity Currency

In-organic/structural changes Q1 2021

Revenue 127.7 25.9(+20.3%) -2.7 - 150.9

EBITDA 13.8 6.9 -2.0 - 18.7

EBITDA Margin 10.8% +2.7 pp -1.1 pp - 12.4%

Page 24: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Development by segment

Revenue EBITDA EBITDA Margin, %

MEUR Q120 Q121 Change Q120 Q121 Change Q120 Q121 Change

Sector eCommerce & Tech

44.4 64.9 46% 7.3 12.3 5.0 16.4 19.0 2.5pp

Services & Utilities

41.2 43.9 7% 3.1 4.9 1.8 7.5 11.2 3.6pp

Telco & Cable

42.2 42.1 +/- 0% 3.3 1.4 (1.9) 7.8 3.3 (4.5pp)

Region Europe 84.6 95.1 12% 5.8 10.1 4.3 6.9 10.6 3.8pp

Global English

43.1 55.7 29% 8.0 8.6 0.6 18.6 15.4 (3.1pp)

TOTAL 127.7 150.9 18% 13.8 18.7 4.9 10.8 12.4 1.6pp

24

Page 25: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Q1 2021 is continuing the long-term profitability improvement trend

25

Summary of historical P&L1

EUR Millions 2017 2018 2019 2020 2021Q1 LTM

2020Q1

2021Q1

Sales 584.0 543.6 541.5 557.8 580.9 127.7 150.9

Cost of sales -456.3 -419.3 -399.3 -405.2 -422.9 -93.7 -111.2

D&A2) -8.2 -7.7 -10.9 -11.8 -11.9 -2.9 -3.0

D&A leasing -0.4 -0.2 -0.2 -0.1 -0.1

Gross profit 119.5 116.7 130.9 140.6 146.1 31.1 36.7

% margin 20.5% 21.5% 24.2% 25.2% 25.2% 24.3% 24.3%

SG&A -89.5 -85.1 -79.3 -81.8 -82.6 -20.3 -21.0

D&A2) - -0.9 -1.3 - -0.3

D&A leasing -12.5 -13.0 -14.0 -3.1 -4.1

Adj. EBITA1) 30.0 31.6 39.0 44.8 48.3 7.7 11.2

% margin 5.1% 5.8% 7.2% 8.0% 8.3% 6.0% 7.4%

Adj. EBITDA1) 62.8 70.8 75.7 13.8 18.7

% margin 11.6% 12.7% 13.0% 10.8% 12.4%

Adj. EBITDA excl. IFRS 16 38.2 39.4 48.8 56.6 60.9 10.1 14.4

% margin 6.5% 7.2% 9.0% 10.2% 10.5% 7.9% 9.5%

• Strong EBITDA development primarily driven by organic growth

• Positive EBITDA margin development mainly due to increased operational leverage on fixed cost

• Continued underlying Gross profit margin improvement due to operational excellence, positive client mix shift and increased near/offshore delivery

• Short term Gross profit margin impacted by increase of training cost due to growth, Covid costs and negative currency impact

Page 26: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

New clients provide recurring and growing revenue

26

Revenue from new clients*

Client vintage

2018

2019

2020

6 9 10

8

22

8

2018 2019 2020

2018 2019 2020

• Long term relations providing recurring revenue

• Client growth and increased share of wallet drives growth

• Limited client churn provides resilient revenue

Page 27: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Continued strong growth in the most attractive sector

27

Note: On July 27, 2018, the group acquired Awesome OS which has been consolidated from this date. 2019 includes Latin America until Feb 2019 (0.9M Sales and -0.1M EBITA). Adj. EBITDA% per industry includes allocation of unallocated/group-wide expenses.

7.1%

10.4%

19.5%

EBITDA LTM 2021

Revenue by industry, EUR Millions

140 167 210 230

195195

177 179

208 179 172 172

2019 2021 LTM2018 2020

Telco & Cable

Services & Utilities

eCommerce & Tech

543 542 558 581• 46.2% revenue growth in

eCommerce & Tech vs Q1 last year, 33.8% growthLTM

• Accelerated demand growth and increased market share in eCommerce & Tech

Page 28: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Continued near/offshore expansion in 2020 – More to come 2021

28

Revenue by type of delivery, Percent

Note: On July 27, 2018, the group acquired Awesome OS which has been consolidated from this date. 2019 includes Latin America until Feb 2019 ((0.9M Sales and -0.1M EBITA).

65 58 54 53

66 9 11

20 25 24 24

9 10 12 12

Onshore

Nearshore

2018

North America WAH

2019 2020

Offshore

2021 LTM

EBITDA 2020Teens

High teens

Single digit

Four near/offshore sites launched or expanded during 2020• Cairo, Egypt• Tuzla, Bosnia & Herzegovina• Davao, Philippines• Zagreb, Croatia

Three new near/offshore sites announced, operational Q1-Q2 2021• Bogota, Colombia• Malaga, Spain• Zenica, Bosnia & Herzegovina

Single digit

Page 29: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Reduction of NRIs

Non-recurring items, EUR millions

Note: FY 2017 is consolidated at Issuer level and full year adjusted for the acquisitions of TWW group and Xzakt group.29

Q1 NRI totaled –0.1 MEUR related to transaction-related costs.

The majority of NRIs during LTM relates to the transformation program support (EUR 10m) completed in 2020*

From 2021, all Covid costs are taken as operational

• In Q1 2020 Covid costs reported as NRI amounted to 0.8 MEUR (LTM of EUR 7m)

• In Q1 2021 1.5M of Covid costs have been reported as operational costs, and not part of the NRI

Q1-

2017

9.5

37.3

Q2-

2017

2.6

16.6

8.38.4

Q3-

2017

6.0

Q4-

2017

23.8

Q1-

2018

Q2-

2018

Q4-

2018

34.4

3.6

Q3-

2018

10.1

Q3-

2019

Q1-

2019

3.1

15.0

20.6

Q2-

2019

11.5

Q4-

2019

7.2 6.0

Q1-

2020

Q2-

2020

Q3-

2020

17.6

Q4-

2020

Q1-

2021

5.37.2

2.2

20.0

3.5 4.3

0.5

34.532.5

7.0

20.9

0.8 1.6

22.4

0.1

4.0

Quarter LTM* Performance-based component might lead to single-digit additional NRI in the coming quarters

Page 30: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Stable cash flow in the quarter

30

• Q1 operating cash flow is EUR 11.7 million (7.3), mostly driven by positive profit/loss before tax.

• Q1 working capital change is EUR -5.9 million (4.0) – mainly explained by increased sales which have increased our working capital compared to same period last year

EURm 2019 2020 2020 Q1 2021 Q1

Profit/loss before tax 2,143 -7,949 -923 3,329

Adjustments for non-cash items 33,429 38,599 8,071 9,775

Net financial items 17,565 19,445 4,292 5,041

Income taxes paid -7,456 -4,881 -126 -575

Changes in working capital 5,684 5,040 -3,997 -5,874

Operating cash flow 51,366 50,255 7,318 11,696

Investments/disposals -16,522 -14,438 -3,144 -3,806

Acquisitions/disposals of business, net of cash -1,101 -6,781 - -13,675

Other -560 98 -27 -166

Cash flow from investing activities -18,183 -21,121 -3,117 -17,647

Cash flow from financing activities -32,055 -28,775 -1,242 9,045

Cash flow for the period 1,127 359 2,959 3,094

Page 31: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Q1 working capital within normal variations

Note: 2017-2018 figures are consolidated at Issuer level. Q2 2017 and onwards includes the acquisition of Xzakt group.Q3 2018 and onwards, includes the acquisition of Awesome group.

EUR millions

31

36

2326

27

31

22

29

34

25

3032

3031

28

14

23

26

Q4 17

6.4%

4.0%

6.1%

4.3%

Q1 17 Q2 18Q3 17Q2 17 Q4 20

5.5%

Q1 18

3.9%

5.3%5.9%

6.3%

Q3 18 Q4 18

4.1%4.7%

Q1 19

5.5%

Q2 19

5.8%

Q3 19

5.6%

Q4 19 Q1 20

5.2%

Q2 20

2.6%

Q3 20

4.5%

Q1 21

NWC, total NWC % of LTM Sales

Q2-Q3 2020: Covid-related government support in terms of deferred taxes, due in 2022, total of EUR 12 M

Q4 2020: Timing effect of increased receivables

Q1 2021: Timing effect of decreased payables

Page 32: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Net debt and leverage development

32

231 233251

204 205218

3.3x

4.23.7x

4.6x

2019

5.0x

2020

3.3x

2021 Q1

Debt structure Maturity

Outstanding balance

2019 2020 2021 Q1

Fixed rate secured notes Mar 2023 180.0 180.0 180.0

Secured term loan Mar 2023 - 20.0 20.0

SSRCF incl overdraft facility usage Sep 2022 21.0 - 15.3

5-year secured bond Sep 2022 10.0 10.0 10.0

Lease liabilities 27.5 28.8 33.3

Other liabilities3) 7.1 8.2 8.0

Gross debt 245.6 247.0 266.6

Cash on balance 14.3 13.7 15.2

Net debt 231.2 233.3 251.4 Net debtLeverage (bond definition)2Leverage1

Net debt excl. Lease liabilities

All figures in EUR Millions

Net debt and leverage

1) Net debt, incl. Lease liabilities/fully adjusted EBITDA; 2) Net debt, excl. Lease liabilities, subordinated loans and pension liabilities /adj. EBITDA excl. IFRS16 impact and not including non-recurring items in excess of 15% of EBITDA. 3) Other liabilities includes subordinated loans, pension liabilities and unamortized cost.

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Appendix: EBITDA and Net Debt IFRS 16 impact

33

Restated figures per Quarter 2019-20202019

Q12019

Q22019

Q32019

Q42019

FY2020

Q12020

Q22020

Q32020

Q42020

FY

Operating profit/loss (EBIT) 3.1 2.0 5.2 9.5 19.7 3.4 -0.9 1.1 7.9 11.5

Amortization, transaction-related

2.7 2.7 2.7 2.7 10.9 2.7 2.7 2.7 2.7 10.9

Non-recurring items 4.0 3.1 0.8 0.5 8.4 1.6 7.2 8.3 5.3 22.4

EBITA excl. Non-recurring items

9.9 7.8 8.7 12.7 39.0 7.7 9.0 12.1 15.9 44.8

Depreciation IFSR 16 4.0 2.0 3.3 3.3 12.6 3.1 3.0 3.4 3.8 13.3

Depreciation/Amortization 2.2 2.2 2.4 4.1 10.9 2.9 2.8 3.0 4.0 12.7

EBITDA excl. non-recurring items*

16.0 12.2 14.4 20.2 62.8 13.8 14.7 18.5 23.7 70.8

EBITDA margin excl. non-recurring items* 11.8% 9.1% 11.0% 14.3% 11.6% 10.8% 11.1% 13.2% 15.1% 12.7%

EBITDA excl. non-recurring items (previously reported)

11.9 9.7 10.6 16.6 48.8 10.1 11.5 15.3 19.7 56.6

EBITDA margin excl. non-recurring items (previously reported)

8.8% 7.2% 8.1% 11.7% 9.0% 7.9% 8.7% 10.9% 12.5% 10.2%

Net debt (previously reported)

198.1 202.9 206.0 203.7 203.7 202.1 209.4 197.3 204.5 204.5

Leasing liabilities IFSR16 31.7 29.6 30.5 27.5 27.5 28.9 26.2 30.0 28.8 28.8

Net debt* 229.8 232.5 236.5 231.2 231.2 231.0 235.7 227.3 233.3 233.3

Leverage Net debt/EBITDA (LTM)*

5.0 4.5 4.1 3.7 3.7 3.8 3.7 3.4 3.3 3.3

* Recalculated to include IFSR 16 Leases

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123

01

02

03

Company overview and Q1 highlights

34

Financial performance

Strategy going forward

Page 35: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

Financial targets

35

Continuation on the trend• Operational Excellence• Client mix shift• Near/offshore expansion

Sustaining current momentum• Continued mix shift towards eCommerce & Tech• Investments in sales and commercial organization• Grow share of wallet of strategic clients

Shifting up to the next gear• Supporting strategic shift: Digital, Ecommerce & Tech• Near and offshore delivery• Reinforcing market access and accretive in-market bolt-ons

Conservative leverage, reinvesting in growth when leverage permits• Strong cash flow generation and EBITDA expansion providing natural de-leveraging• Ability for targeted accretive M&A growth within leverage limits

>16% EBITDA IFRS 16

>5–10% organic

growth p.a.

>5–10% acquired

growth p.a.

Conservative leverage

Page 36: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.

We continue to execute on our priorities to achieve our targets

36

Client focus• Invest in commercial and solutions organization• Protect existing client base• Invest in North America

Operational excellence• Finalize performance management roll-out • Implement group-wide operating model • Continue client-by-client improvement approach

Culture and leadership• Leadership for people performance• Clear, decentralized accountability and lean OH• Culture of client and customer centricity

Execution priorities

Develop digital services• Digital CX Advisory• Digital solutions• Digital operations

Evolve delivery options• Nearshore• Offshore• Work At Home

Continue client & service mix shift• eCommerce & Tech• Carveouts/M&A• Adjacent services

Strategic priorities

Page 37: May 12, 2021 Q1 2021 Presentation · 2021. 5. 12. · Voice & Video. Digital CX Advisory. Digital solutions . Digital operations. Services & Utilities. eCommerce & Tech. Telco & Cable.