5 February 2015

Transcom Fourth quarter 2014 results presentation Johan Eriksson, President & CEO

Pär Christiansen, CFO

Outstanding

Customer

Experience

At a glance

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3

• A global customer experience specialist…

• …employing 29,000 people…

• …representing more than 100 nationalities...

• …operating 54 contact centers, onshore, off-shore and near shore…

• …in 23 countries…

• …delivering services in 33 languages...

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

• …generating €616.8 million revenue in 2014…

• …with a market cap of SEK 1,649.1 million as at December 30, 2014. Listed on Nasdaq Stockholm (Mid Cap segment) under ticker TWW.

Transcom in numbers

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• Founded in Sweden in

1995

• European expansion;

focus on organic growth

• Presence in 15 European

countries at the end of

2001

• Transcom WorldWide

formed in 2000,

headquartered in

Luxembourg

• Shares were listed in

2001

• Acquisition-led growth

• Diversification into debt

collection via acquisitions

• Expansion of near-shore

services

• Establishment in Latin

America, serving Spanish

clients

• Expansion into North

America & Asia through

acquisition of NuComm

and Cloud10

• Restructuring program to

strengthen

competitiveness and

improve profitability

• Focus on growth in

prioritized geographies;

divestment of smaller

country operations

• Divestment of Credit

Management Services

(CMS) unit, to focus on

core customer care

business

• Re-domiciliation to

Sweden

• Growth with clients while

creating more balanced

client portfolio

• Continuously improve

service offering, focusing

on advanced, value-

added services

• Strengthen global

footprint

• Ensure competitive

operational platform

This year, Transcom celebrates 20 years in business

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599.2

631.8

560.2

589.1

554.1

605.6

653.2

616.8

2007 2008 2009 2010 2011 2012 2013 2014

6.0%

4.4%

2.2%

0.7%

1.5%

2.7%

4.3%

Revenue (€m)

Operating margin*

* Underlying performance, excluding restructuring and other

non-recurring costs

3.5%

We are now leaving the turnaround phase that we initiated at the end of 2011

• Focus on core customer care

business

• Targeted sales efforts

- Growth with existing clients in

new geographies

- Broadening client base

• Efficiency improvements and

continuous focus on

underperforming areas

• Like-for-like revenue growth

• Significant margin improvement

• Re-domiciliation to Sweden completed in Q4 2014

• Leaving the turnaround phase that we initiated at the end of 2011

• Mid-term financial targets externally communicated

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Key messages

Our performance in Q4 2014 and FY 2014

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8

Q4 2013 Q4 2014

Like-for-like revenue, Q4 2014 vs. Q4 2013

€m

158.7 152.6 • Like-for-like revenue in Q4 2013

adjusted for currency effects (€+1.1m),

CMS divestments and site closures (€-

8.7m)

• All regions contributed to the €6.1m

like-for-like revenue increase

On a like-for-like basis, revenue in Q4 2014 increased by 3.8%

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EBIT Q4 2013 One-off items 2013

One-off items 2014

CMS divestment Cost savings programs

Volume & efficiency

Expansion costs

Other EBIT Q4 2014

2.2* +1.0

+1.2

+2.5

+3.8

-0.2

EBIT (mEUR)

Q4 2013 vs. Q4 2014

-0.4 9.2

• Strong margin progression in the North America & Asia Pacific and North Europe regions

* Excluding €21.1m intangible asset impairment in Q4 2013

-0.9

EBIT margin in Q4 2014 improved to 5.8% (1.3% in Q4 2013*)

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• North Europe: Higher business volumes in the

region, and higher efficiency in Sweden and

Norway

• Central & South Europe: Higher efficiency in

Italy mitigated start-up costs for new sites in

Hungary and Serbia

• Iberia & Latam: Positive impact from reversal of

personnel-related accrual

• North America & Asia Pacific: Increased

efficiency and cost reductions. Positive

development in Asia continues.

2014

Oct-Dec

2013

Oct-Dec*

EBIT margin

North Europe

Central & South Europe

Iberia & Latam

North America & AP

CRM*

CMS

Total

7.3%

3.8%

5.0%

6.4%

5.8%

n/a

5.8%

2.3%

4.7%

1.1%

-4.6%

1.3%

2.9%

1.3%*

* Excluding €21.1m intangible asset impairment in Q4 2013

Particularly strong development in North America & Asia Pacific and North Europe regions in Q4 2014

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2013 2014

Like-for-like revenue, 2014 vs. 2013

€m

616.8 613.6 • Like-for-like revenue in 2013 adjusted

for currency effects (€-7.9m) and a

number of CMS divestments (€-31.7m)

On a like-for-like basis, revenue in 2014 increased slightly, by 0.5%

EBIT 2013 One-off items 2013 One-off items 2014 Cost savings programs

Volume & efficiency

Expansion costs EBIT 2014

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14.2* -2.9 +0.3

+1.8 -3.3 +11.4

EBIT, core CRM business (mEUR)

2013 vs. 2014

21.4

• Considerable improvement in the North America & Asia Pacific region

• North Europe and Central & South Europe regions also developed strongly

* Excluding €21.1m intangible asset impairment in Q4 2013

EBIT margin in the core CRM business improved to 3.5% in 2014 (2.3% in 2013*)

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* Excluding €21.1m intangible asset impairment in Q4 2013

• North Europe: Higher volumes in the region and

improved performance in the Netherlands, as well

as divestment of loss-making Danish CRM unit

• Central & South Europe: Growth and Increased

efficiency in Italy, Germany and Poland.

• Iberia & Latam: Volume decreases, mainly in

Chile, impacted negatively.

• North America & Asia Pacific: Increased

efficiency and cost reductions. New profitable

business in Asia.

• CMS: Strategic review completed. All units sold or

integrated with core CRM business.

2014

2013*

EBIT margin

North Europe

Central & South Europe

Iberia & Latam

North America & AP

CRM*

CMS

Total

5.3%

3.3%

0.9%

3.5%

3.5%

n/a

3.5%

3.8%

2.9%

2.3%

-1.1%

2.3%

4.6%

2.4%*

Margin increase in 2014 mainly driven by improvements in North America & Asia Pacific and North Europe

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Key performance driver Trend vs. Q4

2013

Q4 2014 vs. Q4 2013

Average Seat Utilization

ratio

89% vs. 85%

Share of revenue generated

offshore

23% vs. 22%

Average Efficiency ratio

(billable over worked hours)

n/a – slight negative development

Monthly staff attrition Decrease – positive development

Improvements on four KPIs vs. previous year

Continue improving key performance indicators

• Seat utilization

• Efficiency

• Offshore/onshore split

• Attrition

We are continuing to focus on our key performance indicators

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80.7 86.3

91.1 94.6 94.4

90.1 85.7

67.0 62.8

38.1

59.3 56.7

49.7

36.2

55.3 54.3

38.4

24.6

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

Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414

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

• Gross debt decreased by €4.2 m compared to the Q314 level

• Net Debt decreased by €13.8m compared to the Q314 level

• Net Debt/EBITDA ratio: 0.9 (1.70 in Q314)

Debt & leveraging

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2014 key priorities Status

Increase onshore seat

utilization in North

America

• We returned our North American business to profitability

in 2014

• Focus on further improving capacity utilization, and

driving future growth

Improve operational

performance in the North

Europe region

• Major improvements compared to last year

Improve operational

performance in Latin

America

• We have won new business with domestic clients, but

volumes are still too low

• Strong focus on improving capacity utilization and

efficiency

We have made good progress our key priorities for 2014

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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 has adopted a set of mid-term financial targets

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• Like-for-like revenue growth of at least

5 percent per year

• EBIT margin of at least 5 percent

• Net debt/EBITDA ratio of maximum 1.0

• Provided that the net debt/EBITDA target is

met, Transcom would be in a financial

position to start paying a dividend in 2016,

i.e. for the 2015 financial year

We have a solid foundation from which to take the next steps in our

development, our mid-term targets are:

Transcom strategic priorities

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Grow together with our clients, while creating a more balanced

industry and client portfolio

Continuously improve our

service offering, focusing on advanced,

value-added services

Strengthen Transcom’s

global footprint

Competitive operational

platform

Organizational changes to be implemented in 2015 in order to increase focus and accountability in important areas

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CEO

North Europe Central & South

Europe Iberia & Latam North America Asia Pacific

Operations Finance

Commercial HR

• Chief Operating Officer (COO) appointed

• Chief Commercial Officer (CCO) and Group HR Director to be appointed

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