Q2 2021Presentation

August 27, 2021

Summary

• Transcom continues to grow strongly with organic growth of 11%

• eCommerce & Tech growing 32% vs Q2 LY to reach 43% of total revenue

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

• Q2 EBITDA of 8.7% -2.4 pp vs Q2 LY –Impacted by investments in growth, consequences of the Covid pandemic and weak demand in Spain

• Actions taken and strong ending of the year expected, but issues related to profitability expected to linger into Q3

2

123

01

02

03

Company overview and Q2 highlights

3

Financial performance

Strategy going forward

123

01

02

03

Company overview and Q2 highlights

4

Financial performance

Strategy going forward

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

Services & Utilities

eCommerce& Tech

Telco & Cable Cable TV &

Broadband operatorsTelecom

operators

Segment Client examplesShare of revenue LTM

EBITDA margin Q2 LTM

19%

10%

6%

Serving leading consumer brands across industries

6

Utilities BFSI Gov &Healthcare

Media Travel

Online retail

IT/Tech Fintech Logistics Consumer durables

30%

28%

41%

Growing strongly in highly profitable eCommerce & Tech sector

Strong YoY growthRevenue, MEUR

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

Growing share of portfolio %

47 62,1

Q220 Q221

36%43%

Q220 Q221

32% +8p.p.

7

140167

210245

20202019

14.3%16.9% 18.7%

2018*

19.0%

2021 Q2 LTM

RevenueEBITDA Margin

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

‘Recognized as Star Performer by Everest Group

Transcom has established itself as strategic CXM partner for clients, especially for digital-native enterprises, with its comprehensive suite of proprietary and third-party CX solutions (T:Universe) and global delivery capability, with a strong presence in Europe.

David Rickard, Vice President, Everest Group

Global delivery and growing near/offshore capability provides scalability

8

33Languages

25Countries

63Locations

Site locationsServiced geographies

EuropeGlobal English

Regional mix2021Q2 LTM revenue

Shoring mix2021Q2 LTM revenue

37%

63%

12%

25%63%

OffshoreNearshore Onshore

• Continued acceleration of new business momentum• Contract wins split ~50/50 between new logos and existing

clients• Carry over provides solid growth momentum into 2022

Strong development of new sales

9

Contract wins new business1, Annual contract value, end Q2, MEURKey Q2 wins

Global TelcoBroadband tech care

US onshore16 MEUR

FintechCustomer careEU nearshore

14 MEUR

Global TelcoCustomer care &

back officeEU nearshore

3 MEUR

Consumer TechTechnical Support

US WAH5 MEUR

Consumer ProductsCustomer careEU nearshore

2 MEUR

Financial ServicesBack office

EU nearshore1 MEUR

1. 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.

Food DeliveryCustomer servicesEU on/nearshore

4 MEUR

FintechCustomer service &

back officeEU nearshore

8 MEUR13

3973

18

411

2021 Q2 YTD2

60

2018 2019 20202

129

In-year revenue, 2021

Annual contract value

M&A growth agenda – City Connect acquisition speeds up shift towards nearshore and strengthens German capabilities

10

M&A focus in line with strategic priorities

Expand near/offshore delivery

Grow in eCom/Tech sector

Strengthen digital offering

• Transcom growing strongly in German nearshore delivery

• City Connect adding +540 employees in Adriatic region and significant additional growth potential

• Combined operations offering the market’s strongest nearshore offering for German

Germany

Adriatic Region

Continued growth in the 2nd quarter, but margin impacted by investments in growth, Covid and weak demand in Spain

11

2021 Q22020 Q2

14.712.5

-15.0%

EBITDA, EUR Millions Revenue, EUR Millions

2020 Q2

8.711.1

2021 Q2

-2.4pp

EBITDA Margin, Percent

• Organic growth 10.7%, currency impact -2.2%

• Growth driven by eCommerce & Tech sector and existing clients

• Investments in growth for ramping up new clients and new sites

• Business continuity costs for Covid

• Weakness in demand in Spain

2021 Q22020 Q2

132.2 143.4+8.5%

Three drivers impact EBITDA negatively

12

Investment in growth

Pandemic impact

Weak demand in Spain

Drivers Actions/Outlook EBITDA impact Q2

• Opening new sites• Ramp-up costs for new

contracts

• Positive contribution Q4 and onwards 1.6M

• Offshore business continuity cost

• Productivity loss and US labor shortage

• Temporary impact, but timing uncertain >1.4M*

• Overcapacity due to weak demand in banking and telecom

• Actions during Q3/Q4, positive impact Q4 and onwards

0.4M

∑3.4MEUR2.4 pp margin impact

*1.4M only BCP cost, not quantified impact of productivity loss and labor shortage

Transcom continues on the trend

13

Revenue EUR millions; EBITDA1 percent

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

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

115 76 50

7.2%

9.1% 9.0%

2020

6.5%

2017*

9.8%11.6%

558

2018*

10.2%

2019

12.7%

542469

468 59219

12.4%11.9%

2021 Q2 LTM

2020 Q2 LTM

513

Exited businessContinuing business EBITDA Margin excl. IFRS 16

EBITDA Margin

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

469 468492

558

123

01

02

03

Company overview and Q1 highlights

14

Financial performance

Strategy going forward

Continued strong growth – Short term weakness in profitability

15

• Continued strong revenue growth– 143.4 MEUR (132.2)– Growth of 8.5% in Q2 2021 (10.7% excluding currency

impact – all organic)

• Q2 EBITDA ex Non-recurring items1

– 12.5 MEUR (14.7) – Margin of 8.7%, -2.4pp vs Q2 2020– Challenges driven by investments in growth, Covid costs, and

weakness in demand in Spain

• Solid operating cash flow 7.5 MEUR (13.6), and net cash flow of 60.3 MEUR (-7.9)

• Non-recurring items: +0.6 MEUR (-7.2)

• Net debt/EBITDA of 3.7x (Q1 2021 3.3x)

Continued growth momentum, but short term weakness of profitability

16

Revenue, EUR Millions

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

• After three quarters with improving profitability, in Q2 EBITDA margin decreased with 2.4pp

EBITDA Margin, Percent

2019 2020 2021

131 142140157

128 132151 143

Q3 Q4 Q1 Q2

+7.6%+11.0% +18.1% +8.5%

Q3 Q4 Q1 Q2

10.8

15.1

11.012.413.2 14.3

11.18.7

+2.2pp+0.8pp

+1.6pp-2.4pp

Currency impacted negatively both revenue and profitability

17

All figures in EUR Millions

Q2 2020Growth and Productivity Currency

In-organic/structural changes Q2 2021

Revenue 132.2 14.2(+10.7%) -3.0 - 143.4

EBITDA 14.7 -0.7 -1.5 - 12.5

EBITDA Margin 11.1% -1.6 pp -0.8 pp - 8.7%

Continued strong growth in the most attractive sector

18

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.

6.2%

9.5%

18.7%

EBITDA LTM 2021

Revenue by industry, EUR Millions

140 167 210 245

195 195177

180

208 179 172167

2018 20202019 2021 LTM

Telco & Cable

Services & Utilities

eCommerce & Tech

543 542 558592

• 32.1% revenue growth in eCommerce & Tech vs Q2 last year, 35.4% growth LTM

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

Continued near/offshore expansion in 2021

19

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).

71 65 64 63

20 25 24 25

9 10 12 12Nearshore

2018

Onshore

Offshore

2021 LTM2019 2020

EBITDA

Teens

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 operational Q1-Q2 2021• Bogota, Colombia• Malaga, Spain• Zenica, Bosnia & Herzegovina

Stable operating cash flow in the quarter

20

• Q2 2021 operating cash flow is EUR 7.5M (13.6)

• Negative difference to Q2 2020 mostly driven by higher cash income taxes paid as compared to Q2 2020

• Q2 2021 cash flow from financing activities mostly driven by refinancing and issuing of EUR 315M Floating Rate Bonds

EURm 2019 2020 2020 Q2 2021 Q2

Profit/loss before tax 2,143 -7,949 -6,932 -7,490

Adjustments for non-cash items 33,429 38,599 8,817 9,962

Net financial items 17,565 19,445 6,081 10,431

Income taxes paid -7,456 -4,881 -516 -4,405

Changes in working capital 5,684 5,040 6,157 -980

Operating cash flow 51,366 50,255 13,606 7,518

Investments/disposals -16,522 -14,438 -3,807 -5,994

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

Other -560 98 -29 -220

Cash flow from investing activities -18,183 -21,121 -10,617 -6,214

Cash flow from financing activities -32,055 -28,775 -10,881 59,762

Cash flow for the period 1,127 359 -7,892 61,066

Q2 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

21

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

Q1-2 2021: Timing effect of decreased payables

25

3032

3031

28

14

23

26

31

Q3 19

4.7%5.5%

Q1 19 Q2 19

5.8% 5.6%

2.6%

Q4 19

5.9%

Q1 20

5.2%

Q2 20

4.5%

Q3 20

4.1%

Q4 20 Q1 21

5.3%

Q2 21

NWC, totalNWC % of LTM Sales

2.6%

Net debt and leverage development

22

Debt structure Maturity

Outstanding balance

2019 2020 2021 Q2

Fixed rate secured notes

Paid June 2021 180.0 180.0 -

Floating rate secured notes Dec 2026 - - 315.0

Secured term loan Paid June 2021 - 20.0 -

SSRCF incl overdraft facility usage June 2026 21.0 - -

5-year secured bond Paid June 2021 10.0 10.0 -

Lease liabilities 27.5 28.8 33.4

Other liabilities2) 7.1 8.2 -2.9

Gross debt 245.6 247.0 345.5

Cash on balance 14.3 13.7 76.9

Net debt 231.2 233.3 268.6Net debtLeverage1

Net debt excl. Lease liabilities

All figures in EUR Millions

Net debt and leverage

1) Net debt, incl. Lease liabilities/fully adjusted EBITDA; 2) Other liabilities includes subordinated loans, pension liabilities and unamortized cost.

231 233251

269

204 205218

235

3.7x

2019

3.3x

2020

3.7x3.3x

2021 Q1 2021 Q2

Continued reduction of NRIs

Non-recurring items, EUR millions

23

Q2 NRI totaled +0.6 MEUR related to transaction-related costs and release of various provisions

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 Q2 2020 Covid costs reported as NRI amounted to 3.6 MEUR (LTM of EUR 4.4m)

• In Q2 2021 1.4M of Covid costs have been reported as operational costs, and not as NRI

10.1

20.9

Q3-

2019

Q1-

2019

Q2-

2019

15.0Q

1-20

20

0.1

11.5

Q4-

2020

Q4-

2019

13.1Q

2-20

20

1.6

17.6

Q3-

2020

Q1-

2021

Q2-

2021

7.2

32.5

4.0 3.10.8

8.4

0.5

6.08.3

22.4

5.3

-0.6

Quarter LTM

123

01

02

03

Company overview and Q1 highlights

24

Financial performance

Strategy going forward

Financial targets

25

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