Investor PresentationJP Morgan European High Yield & Leveraged Finance Conference

Sep 10, 2020

Today’s presenters

2

Jonas DahlbergChief Executive Officer

Transcom since June 2019

Previous roles:CFO, Transcom (2019)

CFO, Sweco Group (2012-2019)President, Sweco Russia (2008-2012)

Associate Principal, McKinsey (1998-2008)

Snejana KolevaChief Financial Officer

Transcom since August 2020

Previous roles:Finance Director, Rock Tools Sandvik (2017-2020)

VP Strategy Sandvik Mining & Rock Technology (2013-2017)

McKinsey (2005-2013)

Highlights• Transcom provides world class customer services to leading

consumer brands predominately in Europe and North America

• Since the buy out by Altor in 2017, Transcom is on a transformation journey aiming at profitable growth and double-digit margins

• Strategy is focusing on client focus and operational excellence, driven by strong culture and leadership. Moreover, Transcom has a strong portfolio of digital services and is shifting the mix towards attractive client segments and delivery locations

• During 2018-2020H1 Transcom shows improvements on all key financials: EBITDA, margins, E/O-items, cash flow and leverage

• Transcom is resilient in Covid due to Work-At-Home (increased from 6% to >60% in the span of 8 weeks), Digital and a diverse footprint

• As consumers chose to interact with brands at distance, Transcomexperiences strong demand and inflow of new contracts, driving organic growth

3

Agenda

4

• Company overview and strategy

• Industry trends

• Financial development

Transcom overview

5

Who we are: Transcom at a glance

6

200+international clients

33Languages spoken

1.5m+Customerinteractions on a daily basis

26,000people, 50+ sites, 22 countries

40+sites in Europe

Global presence: Albania, Bosnia Herzegovina, Canada, Croatia, Egypt, Estonia, Germany, Hungary, Italy, Latvia, Lithuania, Netherlands, Norway, Philippines, Poland, Portugal, Serbia, Spain, Sweden, Tunisia, United Kingdom, USA

1,000+distributed workforce in North America (US & Canada)

11 sites in the Philippines serving the English speaking markets

532 €M2020 Q2 LTM sales

49 €M2020 Q2 LTM EBITDA (1)

(1) Adjusted EBITDA excl. IFRS 16

Utilities BFSI Gov &Health-

care

Media Travel

What we do: outsourced customer relationship managementWe are a global customer care provider

offering future proof customer facing concepts delivered by our global

team of local specialists…

…supporting our clients’ digital agenda by combining our core services with

leading digital capabilities and tools…

…delivering services in 33 languages to international brands in various

industries

Call Chat Email

26,000customer experience specialists

serving customers via

Services & utilities

Commerce & Logistics

Auto-motive

Logistics Retail/ e-commerce

IT/Tech White-goods

Telco & Cable

Social media MessagingTelco Cable

7

Conversationalcommerce

Core services

Digital channels

Robotic process

automation

Interactionanalytics

Chatbots

Gamification

Transcom has an extensive portfolio of satisfied clients…

8

Telco & cable

Commerce & logisticsServices & utilities

IPSY

NPS 49(2)

Selected clients by vertical (1)

• No single client >10% of revenue

• Top 10 clients <55% of revenue

• Top 10 client relations 13-year long on average

(1) (2)

As of H1 2020Net Promoter Score as of August, 2020, calculated in line with the industry

practice

0

25

50

75

100

Cumulative share of revenue by client (1)

% Revenue

+200 clients

… and is growing in attractive customer segments

Developments during Q2 2020

6.8%

6.5%

14.6%

EBITDA Q2 2020 LTMRevenue by industry segment, EUR Millions

169130

206

208

2018

155

208

179

2019

175

Q2 2020LTM

188

Telco & Cable

Service & Utilities

Commerce & Logistics

544 541 532

• Strong demand in commerce and logistics from existing clients

• Continued intake of new contracts, of which some COVID-driven

• COVID-driven delays of tenders and ramp-ups of new contracts

• Travel and hospitality subsegment at standstill (<1% of Transcom revenue)

9

Notes: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% by industry segment includes allocation of unallocated/group-wide expenses, excludes IFRS16 adjustments

10

Europe Global English

Markets• Delivery across

Europe• 33 languages

• US• UK• Philippines

Delivery model

• On-shore in 8 countries

• Near- /off-shore from 10 countries

• Off-shore from the Philippines

• Work-at-home in the US and Canada

Share of total revenueQ2 2020 LTM

EuropeGlobal English

Site locations Serviced geographies

67%

33%

Serving Global English and European market through global delivery

Continued shift towards more profitable delivery locations

Of which WAH ~60%<3%

74% 71% 65% 63%

18% 20% 25% 25%

8% 9% 10% 12%

Onshore

20192017 2018

541544

2020 Q2 LTM

Nearshore

Offshore

584 532

Share of revenue by delivery location% of Revenue

Current EBITDA levels

Low teens

High teens

Single digit

100%

11

Notes: FY 2017 is consolidated at Issuer level, adjusted for EO items and full year adjusted for the acquisitions of TWW group and Xzakt group. 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)

Highly competitive digital offering

• Chatbots: AI serving as customer service representative to both agent and end-consumer. Often embedded in chat or messaging channel

• Robotic process automation: automation of repetitive manual back-office process

• Robotics desktop automation: real time automation of front-end tasks on the screen of the agent

Digital Process Automation

• Gamification: application of game-design elements in a non-game context. Game types cover the full agent life-cycle needs:

- Leadership

- Employability

- Operational

- Commercial

Gamification

• Global Business Intelligence: data-driven analysis and reporting

• Interaction Analytics: insights from in-depth analysis of communications between end-customer and Transcom’s clients

• CX Advisory Services: advisory on designing, implementing and management of the best-in-class customer experience solutions

Customer Experience (CX) Management

• Digital channels

- Messaging (Conversational commerce)

- Webchat

- Social media

- Rating-apps

- Self-service

Digital Interactions

12

Best Cloud Implementation Best Use of Customer Insights, Finalist

• Digital solutions implemented for 45% of top 20 clients

• Launch of T:Labs – Transcom’s hub for rapid digital innovation and experimentation with our clients

• Innovation & CX Awards

Acquisitions supporting growth and increasing its exposure to attractive segments and geographies

to strengthen European nearshore and multilingual

services with +500 employees

August 2018

Transcom Holding AB acquires a site in

Durrës

to strengthen digital capabilities and position on in the e-commerce industry

July 2018

Transcom Holding AB acquires Awesome OS

to create a center of excellence for utilities and

strengthen exposure to German market

March 2019

TopCo ABacquires TMS connected!(1)

to expand footprint on the German market and

strengthen capabilities in the media industry

April 2019

Transcom Rostock acquires ASA Informationsdienste

GmbH

to further strengthen its position in the Nordic within

the SME market

June 2017

Transcom Holding AB acquires Xzakt

Kundralatiom AB

M&A transactions since take-private in 2017

• Going forward, Transcom is looking for “polished pearls”, i.e. companies with double digits profitability, attractive growth potential and complementary assets

• ASA Informationsdienste was Transcom’s first carve-out transaction, transaction type growing in importance for the future

(1) Acquired outside bond group, intended to be incorporated at a later stage13

Overview of strategic roadmap

14

Establish platform

• OH cost out 30 MEUR• Developing strong digital offering• Repositioning towards attractive

segments and locations

2017 2018 2019 2020 2021 2022 2023

Drive profitable organic growth

• Increased Client focus• Drive Operational Excellence• Strong Culture & Leadership

Accelerate development

• Invest in near- and offshore• Carve outs• M&A to support repositioning

Financial objectives

• Solid double digit EBITDA

• Organic growth above industry average

• Further inorganic value creation

Industry trends

Strong global industry growth is expected to continue

Source: Third party provider16

CAGR‘19-’24F

Global outsourced customer care services market, EUR Billions

CAGR‘19-’24F

Market size, 2019, EUR Billions

2015

12%2%10%

83

16%

31%

44%

12%3%

11%14%

30%

42%

2019

3%

28%

41%

2024

5868

+4%

+4%

19,0

12,7

7,1

5,9

5,4

2,8

15,1

IT and tech

Telecom

Retail

Financial services

Healthcare

Travel

Other

3.5% North America

2.6% Europe

6.4% APAC6.0% LatAm5.3% MEA

8.3%

6.3%

4.4%

2.6%

1.5%

5.6%

5.0%

Note: estimates pre-Covid – impact on e.g., Travel not reflected

Drivers of increased outsourcing:• More complex and multi-channeled interactions• Ongoing digitalization of customer service activities• Value-added and outbound services• Contact centers as sales engines

Drivers of sustained profitability levels:• High and increasing entry barriers• Increased lock-in effect for SMEs• Steady growth with only some volume variability

Stability of industry revenue and margins over cycles

(1) Includes Teleperformance, Convergys (acquired by Synnex Corp. in 2018), Sykes, TTEC and Transcom. FX rates based on constant currency as of year-end 2018Source: Capital IQ, AT Kearney, Company information17

5,96,5 6,5 6,2 6,2 6,4 6,7 7,0

8,18,8 9,2

9,9 10,1

2008

12.6% 13.2%

2006 2007

11.9%12.2% 12.6%10.9%

2009

10.7%11.9%

2010 2018

12.5%10.4%

20132011

10.7%

20162012

11.7%

2014 2015

13.4%

2017

EBITDA marginPercent

Peer group sales,EUR Billions

Historical sales and EBITDA margin for the largest players (1)

• Top-line growth with stable profitability for the 5 largest players over the last 10+ years, driven partly by market consolidation, a broadened service offering and geographic expansion

• Strong underlying growth, sector consolidation and increasing barriers to entry have strengthened the main players whilst protecting and enhancing their profitability

• Profitability of the largest companies in the sector underpins the non-cyclicality of the industry

Transcom is at the forefront of the key trends shaping the industry future

Source: Third party provider18

Market consolidation

New technologies and ongoing digitalization

Increasing outsourcing share

Service mix change towards higher-value interactions

• Market is consolidating through mega-deals and smaller roll-ups• Vendors pursue consolidation path acquiring other global and local players to

strengthen delivery footprint and industry exposure• Financial investors continue to remain interested in the segment (e.g. GBL’s

acquisition of Webhelp)

• New technologies, such as AI and analytics, will have a significant long-term impact and shape the future of the CRM/BPO industry

• However, the market will continue to be dominated by human interactions in the foreseeable future

• New technologies will automate some interactions but mainly augment agent capabilities

• Focus is moving from voice to text-based channels

• Additional volume from increasing outsourcing drives ~25% of the annual market growth

• The need to access capabilities remains a fundamental growth driver, especially given the increased digital interaction complexity

• Continued push for lower cost and improved customer experience

• The service mix changes towards value-added care, sales, and outbound provide significant upside

• New high-margin care models (in- and out-bound) are emerging and many companies are shifting volume to pro-active outbound care and sales

• Companies follow different archetypes in their customer experience models

~25%

Technological capabilities

Value per contract

Selected consolidators

of annual market growth

Additional volume from outsourcing drives

Maturity

Outsourced contract volume

High Low

Current contracted value Service expansion

Value-added sales

AnalyticsCognitive /

Artificial Intelligence

Robotic Process

Automation

Transcom in the COVID-19 pandemic

Our business model has proven more relevant than ever

20

As consumers are socially distanced from physical retail…

Call Chat Email

Social media Messaging

… Transcom is available to service consumers

26,000customer experience specialists

serving customers via

Workforce capacity maximized through WAH and safe site delivery

21

May

55%

6%

March June

60% 62%

April

Percentage of direct workforce working from home

Move back to site in certain geographies with strict preventive measures

• >1.5 meter distance between workstations

• High frequency of disinfections and cleaning

• Reinforcement of hygiene measures and disinfection stations

• Following local regulations and requirements regarding masks, gloves, temperature checks

• Cooperation with worker’s councils and unions

Transcom’s resilience is based on WAH, digital solutions and a diversified footprint

22

Digital solutions• Increased productivity & business resilience• Improved customer experience• Increased sales conversion

Diversified footprint• Flexibility and scalability from more

sites• De-risked footprint - clients’ and

Transcom• Larger talent pool and sourcing

capabilities

Work at Home flexibility• Increased business resilience• Increased business agility &

flexibility• Larger talent pool and sourcing

capabilities

Transcom is highly competitive in the “new normal”

23

• Continued social distancing drives consumers

from physical channels to distance channels

• Clients looking for improved efficiency and

improved customer experience

• Increased demand of resilient business

continuity options in case of coronavirus

resurgence

The new normal

Strong references in ecom, fin-tech and digitally

enabled businesses

Strong portfolio of digital services and CX

services

Leading WAH service and globally diversified

site operations

Transcom’s position

Financial highlights

Q2 2020 Highlights• Strong quarter in the midst of the pandemic – Revenue

from continuing business +11%, and improved EBITDA (1)

+19% and +1.5 pp vs last year (excl. NRI)

• Resilience based on WAH, digital solutions and diversified footprint – 60% of workforce WAH during Q2

• Production bottlenecks and COVID-related NRIs tampering off from June – Positive outlook for H2 2020, provided no major COVID resurgence

• NRI: EUR -7.2 million (-3.1) – EUR 3.6 million relating to COVID business continuity cost, and EUR 3.0 million relating to Transcom’s operational and commercial transformation

• Net debt/adj. EBITDA 4.3x (1) (4.5x bond leverage definition)25 (1) Adj. EBITDA excluding effects from IFRS 16

Strong EBITDA and organic top line growth, adjusting for last year divested and exited business

(1) 2016 figures represents consolidated TWW accounts, 2017-2018 is consolidated at Issuer level, and adjusted for the acquisitions of TWW and Xzaktgroup. On July 27, 2018, the group acquired Awesome OS which has been consolidated from this date. 2019 and onwards are fully including recording of IFRS 16 Leases, no retroactive calculation done for comparison periods(2) M&A amortization not included in D&A26

Sales and EBITDA development (1) Summary of historical P&L (1)

EUR Millions 2016 2017 2018 2019 2020LTM

2019 Q2YTD

2020 Q2YTD

2019Q2

2020Q2

Sales 586.1 584.0 543.6 541.5 532.3 269.1 260.0 134.0 132.2

Cost of sales -458.7 -456.3 -419.3 -399.3 -387.1 -202.0 -189.9 -101.5 -96.2

D&A(2) -8.0 -8.2 -7.7 -10.9 -12.1 -4.5 -5.7 -2.4 -2.8

D&A leasing -0.4 -0.4 -0.2 -0.2 -0.0 -0.1

Gross profit 119.4 119.5 116.7 130.9 132.8 62.5 64.3 30.0 33.2

% margin 20.4% 20.5% 21.5% 24.2% 24.9% 23.2% 24.7% 22.4% 25.1%

SG&A -96.2 -89.5 -85.1 -79.3 -82.1 -38.8 -41.6 -20.2 -21.3

D&A leasing -12.5 -12.5 -6.0 -6.0 -2.1 -2.8

Adj. EBITA (1) 23.1 30.0 31.6 39.0 38.2 17.6 16.7 7.8 9.0

% margin 3.9% 5.1% 5.8% 7.2% 7.2% 6.6% 6.4% 5.8% 6.8%

Adj. EBITDA (1) 62.8 63.1 28.3 28.5 12.2 14.7

% margin 11.6% 11.9% 10.5% 11.0% 9.1% 11.1%

Adj. EBITDAexcl. IFRS 16 31.2 38.2 39.4 48.8 48.9 21.6 21.6 9.7 11.5

% margin 5.3% 6.5% 7.2% 9.0% 9.2% 8.0% 8.3% 7.2% 8.7%

586 584544 542 532

31 38 39 49 49

5.3

201920182016

6.5

2017

7.2

9.0 9.2

2020 LTM

Adj. EBITDA excl IFRS 16Sales Adj. EBITDA excl IFRS 16, Percent

EUR Millions

NRI increasing due to COVID and accelerated transformation efforts

Note: FY 2017 is consolidated at Issuer level and full year adjusted for the acquisitions of TWW group and Xzakt group27

Q2 NRI EUR -7.2 million

• Of which EUR -3.6 million relating to COVID business continuity cost

• Of which EUR -3.2 million relating to Transcom’s operational and commercial transformation

• Of which EUR -0.4 million transactional

NRI totaled EUR 10.1 million for 2020 LTM

Non-recurring items, EUR Millions

2,27,2

3,56,0

20,6

4,3 3,6 4,0 3,10,8 0,5 1,6

16,6

37,334,4 34,5

32,5

8,46,0

10,1

20.0

Q2 2019

Q4 2017

2.2

Q1 2017

9.5

Q3 2017

Q2 2017

Q3 2019

23.8

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q4 2019

15.011.5

7.2

Q1 2020

7.0

Q2 2020

Quarter LTM

Solid operating cash flow in the quarter

28

EUR Millions 2019FY

2019Q2 YTD

2020 Q2 YTD

2019 Q2

2020 Q2

Profit/loss before tax 2,143 -3,345 -7,855 -2,437 -6,932

Adjustments for non-cash items 33,429 19,220 16,887 12,009 8,817

Net financial items 17,565 8,429 10,373 4,388 6,081

Income taxes paid -7,456 -2,834 -642 -2,171 -516

Changes in working capital 5,684 -3,819 2,160 -7,216 6,157

Operating cash flow 51,366 17,651 20,924 4,573 13,606

Investments -16,522 -5,182 -6,950 -2,837 -3,807

Acquisitions/disposals of business,net of cash -1,101 5,936 -6,781 6,540 -6,781

Other -560 -84 -3 9 -29

Cash flow from investing activities -18,183 670 -13,733 3,712 -10,617

Cash flow from financing activities -32,055 -7,120 -12,123 -4,880 -10,881

Cash flow for the period 1,127 11,201 -4,933 3,405 -7,892

• Q2 operating cash flow amounted to EUR 13.6 million (4.6)

• Q2 working capital change amounted to EUR 6.2 million (-7.2)

• Working capital developing positively – partly swing of temporary nature, partly tax deferrals enabled by government support programs

Working capital is improving slightly in Q2 2020

Note: 2016 figures represents consolidated TWW accounts, 2017-2018 figures are consolidated at Issuer level Q2 2017 and onwards includes the acquisition of Xzakt groupQ3 2018 and onwards, includes the acquisition of Awesome group29

31

4.9%

25

Q1 16

3.0%

Q2 16

29

5.3%

Q4 16

315.8%

Q1 18Q3 16

4.7%

5.4%

6.1%6.4%

Q1 17

31

4.0%

Q2 17

4.3%

22 6.3%

Q3 17 Q4 17 Q4 19

5.5% 5.3%

3.9%

30

Q3 19Q2 18

5.2%

Q3 18 Q4 18

32

Q1 19 Q1 20

5.5%

Q2 19

5.6%5.9%

34

Q2 20

3018

3036

23 283126 27

Oth recPrep exp accr

Trade pay

Trade recAccr exp prepOth liab

NWC%EUR Millions

Leverage ratios improving and long term financing is secured

Note: On July 27, 2018, the group acquired Awesome OS which has been consolidated from this date. Figures based on legal reporting of TranscomHolding(1) EBITDA levels are calculated excl. IFRS 16 for comparison(2) Excluding local facilities and subordinated loans (Q2’20: 6.7MEUR); Fixed rate secured notes mature in July 2021, SSRCF in September 2022, Secured term loan in March 2023, 5-year secured bond in March 202330

Net debt and leverage Debt structure and maturity profile (2)

EUR Millions EUR Millions

208 204 209

5,3

4,2 4,3

2018 2019 2020 Q2

Net debt / Adj EBITDA (1) Net debt

180 180 180 180

45 47 4720

20 20

2019 2020 2021 2022

235257 247

20010

10

Fixed rate secured notes5-year secured bondSSRCF

Secured term loan

Summary

31

• We are more relevant than ever – And we have a resilient delivery model

• Transcom shows improvements on all key financials and resilience in the midst of the pandemic

• Our priorities remain – Profitable growth through client focus and operational excellence, driven by great culture and leadership

Thank you.