18 July 2013

TranscomSecond 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 agentsTranscom’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

• 29,000 people

• 62 contact centers, onshore, off-shore and near shore

• 26 countries

• Delivering services in 33 languages...

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

• €605.6 million revenue in 2012

• Market cap: SEK 865.6 million as at June 28, 2013. Listed on NASDAQ OMX Stockholm

(TWW SDB B and TWW SDB A)

4

We have an extensive global footprint

Domestic markets

Austria

Netherlands

Slovakia

UK

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 domestic/near shore

markets

Canada

Croatia

Estonia

Latvia

Czech Republic

Hungary

Lithuania

Transcom’s service portfolio

6

• 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

7

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 Q2 2013

2

Revenue in Q2 2013 increased 13.0% compared to Q2 2012

38.0 43.9

27.031.6

28.9

34.6

25.7

27.514.0

15.813.8

13.1

Q2 2012 Q2 20139

Central Europe

South

Iberia

North America

& Asia Pacific

North

Growth

+15.5%

CMS

Net revenue, Q213 vs. Q212

€m

+17.0%

+19.7%

+7.0%

+12.9%

-5.1%

166.5

147.4

• Stable growth in our CRM operations

• Main driver is increasing volumes with our installed client base

• Several new clients added during the year also contributed significantly

EBIT Q212 Cost savings programs

Volume & efficiency Expansion investments

Corporate costs EBIT Q213

EBIT increased by €1.5m in Q2 2013 compared to Q2 2012

10

1.4

+2.5

+1.0 -1.0

-1.0

2.9

EBIT margin improvement driven by Central Europe and South

11

Including corporate

cost allocations*

2013

Apr-Jun

2012

Apr-Jun

EBIT margin

North

Central

South

Iberia

North America & AP

CRM

CMS

TOTAL

1.0%

1.9%

3.6%

3.2%

0.0%

1.9%

0.0%

1.7%

1.3%

-10.0%

-3.1%

4.8%

3.0%

0.4%

6.5%

0.9%

• North: Shortfall compared to projected

call volumes impacted profitability. New

pricing model to be implemented

gradually from Q413.

• Central: Higher volumes and

performance improvements in Germany

and the Netherlands.

• South: Deconsolidation of France as well

as higher volumes and efficiency in Italy.

• Iberia: Lower volumes in Chile with

associated dismissal costs.

• North America & Asia Pacific: Low

capacity utilization onshore in North

America offset profitable growth in Asia.

• CMS: Impact of sale in Q113 of right to

collect on a debt portfolio. Evaluation of

strategic alternatives for CMS

progressing; further details to be

communicated when decision is made.

Excluding corporate

cost allocations*

2013

Apr-Jun

2012

Apr-Jun

EBIT margin

North

Central

South

Iberia

North America & AP

CRM

CMS

TOTAL

4.8%

5.7%

7.3%

6.9%

3.5%

5.5%

3.8%

5.4%

4.7%

-7.1%

0.4%

8.3%

6.3%

3.7%

10.1%

4.3%

* Corporate costs increased from €5m in Q212 to €6m in Q213. This increase is of a

temporary nature, and we expect corporate costs to begin decreasing in Q413.

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

12

Stop the losses in France (€1m/month in 2012).

Increase onshore seat utilization in North America

Successfully resolve tax claims

Lower corporate costs

Improve operational performance in Latin America

Successfully implement action plan to improve operational performance in the North region

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

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Key performance

driver

Trend vs. Q2 2012 Q2 2013 vs. Q2 2012

Average Seat

Utilization ratio

(88% vs. 85%)

Share of revenue

generated offshore

(19% vs. 16%)

Average Efficiency

ratio (billable over

worked hours)

n/a (positive development)

Monthly attrition n/a (slight increase)

Improvements on four KPIs vs. previous year

Continue improving key performance indicators

• Seat utilization

• Efficiency

• Offshore/onshore split

• Attrition

14

65.3 65.071.0

75.980.7

86.391.1

13.2 11.917.2

32.138.1

59.3 56.7

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

Q411 Q112 Q212 Q312 Q412 Q113 Q213

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

• Gross debt increased by €4.9m vs. Q113

• Net Debt decreased by €2.6m compared to the Q113 level, despite €5.3m

transfer in relation to former French subsidiary

• Net Debt/EBITDA ratio: 2.38 (2.51 in Q113)

• Financial cost €1.1m (€0.9m in Q113)

Debt & leveraging

3

Going forward– Transcom’s strategic direction

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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

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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?