25 April 2014

TranscomQ1 2014 Investor 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?

4

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 March 31, 2014. Listed on NASDAQ OMX Stockholm

(TWW SDB B and TWW SDB A)

A global player serving clients in many industries

5

North Europe

Iberia &

Latam

North

America &

Asia

Pacific

Central & South

Europe

CMS

30%

25%20%

18%

7%

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 Q1 2014

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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*

3.4%

Q1 2014

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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

We are focusing on enhancing Transcom’s performance

* Excluding non-recurring items.

Reported 6.1% revenue decrease due to exit from unprofitable entities and focus on CRM business in prioritized geographies

49.4 48.6

39.6 39.7

33.2 31.4

31.6 28.9

16.611.4

Q1 2013 Q1 201419

Central &

South Europe

Iberia & Latam

North America

& Asia Pacific

North Europe

Change

-1.7%

CMS

Net revenue, Q1 2014 vs. Q1 2013

€m

+0.2%

-5.3%

-8.5%

-31.2%

160.1170.6 • Decrease is due to divestments and

closures in order to exit unprofitable entities and focus on the core CRM business in prioritized geographies

• Negative currency impact: €-4.1m

Q1 2013 Q1 2014

Excluding divested or closed operations and currency effects, revenue increased by 2.8% on a like-for-like basis

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160.1155.8*

* Like-for-like revenue in Q1 2013 adjusted for currency effects (€-4.1m) and a number of divestments and closures (€-10.6m)

Most significant closures and divestments:

- Sale of CMS Germany

- Closure of Valdivia site in Chile

- Sale of Belgian operation

- Downsizing of Canadian operation

- Demerger of former French subsidiary

Net revenue, Q1 2014 vs. Q1 2013

on a like-for-like basis

€m+2.8%

EBIT Q1 2013 Cost savings programs

Volume & efficiency Expansion costs Other EBIT Q1 2014

EBIT in CRM business benefited from cost savings in North America and North Europe, and improved performance in Central & South Europe

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1.8

+2.1 -0.2

+0.8 3.4-1.1

EBIT, core CRM business

Q1 2013 vs. Q1 2014

• We are improving our performance in the core CRM business, mainly driven by

North Europe, Central & South Europe, and North America & Asia Pacific

• Temporary drop in performance in Iberia & Latam: Ramp-down in Chile and

simultaneous ramp-up in Colombia

EBIT Q1 2013 Cost savings programs

Volume & efficiency Expansion costs Other EBIT Q1 2014

EBIT comparison including CMS is influenced by sale of right to collect on debt portfolios, and by restructuring cost in Q114*

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6.1

+2.1 -1.9

+0.35.4

-1.1

* The comparison is influenced by the €3.8 million positive effect as a result of compensation that Transcom received in exchange for

transferring the right to collect on a Swedish debt portfolio to another party in Q1 2013 (corresponding effect in Q1 2014: €0.9 million).

EBIT in Q1 2014 was also impacted by a €0.5 million cost as a result of rationalization and reorganization in CMS. Excluding these

effects, EBIT improved by €2.7 million.

EBIT, Transcom Group

Q1 2013 vs. Q1 2014

EBIT margin increase in core CRM business driven by North Europe, Central & South Europe and North America & Asia Pacific

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• North Europe: Closure of loss-making Danish

operations, ended unprofitable client contracts,

and higher efficiency in a number of countries

• Central & South Europe: Deconsolidation of

former French subsidiary, and profitable growth

in Italy and Germany

• Iberia & Latam: Lower volumes and efficiency in

Chile and Portugal, ramp-up of volumes at new

site in Colombia, and investments in Spain to

expand with installed client base

• North America & Asia Pacific: New profitable

business won in Asia, and cost savings in North

America

• CMS: Comparison influenced by €3.8m sale in

Q1 2013 of right to collect on Swedish debt

portfolio (corresponding effect in Q1 2014:

€0.9m). Q114 impacted by €0.5m restructuring

cost.

2014

Jan-Mar

2013

Jan-Mar

EBIT margin*

North Europe

Central & South Europe

Iberia & Latam

North America & AP

CRM

CMS

Total

3.1%

5.3%

-1.1%

0.3%

2.3%

18.1%

3.4%

1.3%

2.8%

2.0%

-2.0%

1.2%

26.0%

3.6%

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

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

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Key performance driver Trend vs. Q1

2013

Q1 2014 vs. Q1 2013

Average Seat Utilization

ratio

88% vs. 89%

Share of revenue generated

offshore

19% vs. 20% (decrease in Chile impacted)

Average Efficiency ratio

(billable over worked hours)

n/a - positive development

Monthly staff attrition n/a – positive development (decrease in staff attrition)

Improvements on four KPIs vs. previous year

Continue improving key performance indicators

• Seat utilization

• Efficiency

• Offshore/onshore split

• Attrition

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71.075.9

80.786.3

91.194.6 94.4

90.1

17.2

32.138.1

59.3 56.7

49.7

36.2

55.3

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

Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114

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

• Gross debt decreased by €4.3 million compared to the Q413 level

• Net Debt increased by €19.1m compared to the Q413 level

• Net Debt/EBITDA ratio: 2.40 (1.40 in Q413)

• Financial cost €1.3m (€1.3m in Q413)

Debt & leveraging

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Going forward– Transcom’s strategic direction

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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

Stay up-to-date on Transcom

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Thank you!

Questions?