18 April 2013

Transcom First Quarter 2013 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

• 27 countries

• Delivering services in 33 languages...

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

• €605.6 million revenue in 2012

• Market cap: SEK 1046.2 million as at March 28, 2013. Listed on NASDAQ OMX Stockholm

(TWW SDB B and TWW SDB A)

4

We have an extensive global footprint

Home markets

Austria

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 (25% of revenue)

- Iberia (19% of revenue)

- North America & Asia Pacific (19% of revenue)

- South (16% of revenue)

- Central Europe (10% of revenue)

- Credit Management Services (CMS) in eight European

countries (10% 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

• We see positive effects as a result of

restructuring actions

• 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 Q1 2013

2

Revenue in Q1 2013 increased 15.9% compared to Q1 2012

38.1 43.2

25.4 31.6

30.6

33.2

24.6

28.0 14.0

16.7 14.4

17.8

Q1 2012 Q1 2013 10

Central Europe

South

Iberia

North America

& Asia Pacific

North

Growth

+13.5%

CMS

Net revenue, Q113 vs. Q112

€m

+24.5%

+8.3%

+13.9%

+19.3%

+23.3%

170.5

147.1

• All units contributed positively to the top-line growth

• Main driver is increasing volumes with our installed base clients

• Several new clients added during the year also contributed

• Revenue benefited from €3.8m in compensation received for transferring the right to collect on a Swedish debt portfolio

• France deconsolidated from March 1 (effect in Q113: -€0.9m)

EBIT increased by €5m in Q1 2013 compared to Q1 2012

11

Restructuring

net effects

Volume &

efficiency-

driven

gains

Expansion

investments

Other

EBIT

Q113

EBIT

Q112

1.1

+2.3

+4.3 -1.7

+0.1 6.1

• €3.8 million positive impact in Q113 as a result of compensation that Transcom has

received in exchange for transferring our right to collect on a Swedish debt portfolio

• €6.0 million positive impact in Q113 due to a capital gain following the

deconsolidation of our former French subsidiary, offset by €6.0 million in

restructuring and other non-recurring costs

• EBIT in Q112 included a non-recurring cost of €1.3 million related to site closures in

North America

EBIT margin improvements in North America & APAC, Central Europe, South and CMS, counterbalanced by North and Iberia

12

2013

Jan-Mar

2012

Jan-Mar

EBIT margin

North

Central Europe

South

Iberia

North America & AP

CMS

TOTAL

0.2%

3.4%

4.7%

2.0%

-2.0%

23.4%

3.6%

3.4%

-1.9%

-4.9%

5.5%

-4.8%

6.0%

0.7%

• Volume and efficiency-driven performance improvements

in North America & Asia Pacific, Central Europe and

South

• Deconsolidation of France as well as higher volumes and

efficiency in Italy benefited South

• North: Volume fluctuations against forecast, leading to

overstaffing, and salary increases

• Iberia: Impact of early Easter

• CMS: Compensation received for transferring our right to

collect on Swedish debt portfolio

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

13

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?

14

Key performance driver

Trend vs. Q1 2012 Q1 2013 vs. Q1 2012

Average Seat Utilization ratio

(89% vs. 83%)

Share of revenue generated offshore

(21% vs. 16%)

Average Efficiency ratio (billable over

worked hours)

n/a (positive development)

Monthly attrition n/a (unchanged)

Improvements on four KPIs vs. previous year

Continue improving key performance indicators

• Seat utilization

• Efficiency

• Offshore/onshore split

• Attrition

111.2

65.3 65.0 71.0

75.9 80.7

86.1

73.4

13.2 11.9 17.2

32.1 38.1

59.3

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

Q311 Q411 Q112 Q212 Q312 Q412 Q113

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

• Gross debt increased by €5.4m vs. Q412

• Net Debt increased by €21.2m compared to the Q412 level

• Net Debt/EBITDA ratio: 2.51 (1.97 in Q412)

• Interest charge €0.9m (€0.7m in Q412)

Debt & leveraging

3

Going forward – Transcom’s strategic direction

17

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

Short- and medium-term growth opportunities

19

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?