Post on 28-Jul-2020
Investor Presentation
March 2020
Confidential
Agenda
1 Transcom at a glance 2
2 Business update and strategic priorities 8
3 Key credit highlights 15
4 Key financials 26
5 Supporting materials 33
1
Confidential
Transcom at a glance
12
Confidential
Commerce & logistics
Services & utilities
Telco & cable
Europe
Global English
66%
34%
579544 543
36 39 50
6,3%7,2%
9,2%
2017A 2018A 2019A
Sales Adj. EBITDA Adj. EBITDA margin %
Transcom – a Nordic contact center champion with a global footprint
Transcom in numbers International footprint and offering
Key financials Sales overview (2019A)1)
Full service offering in 33 languages through 51 sites in 20 countries
contact centers worldwide:
on-shore, near-shore and
off-shore, in addition to
work-at-home agents
200+clients served globally across a
diverse range of industries
Operating
51
languages
spoken33
2019A sales
€543m
2017by Altor, a leading Nordic
private equity firm
Privately-owned since
employees in 20 countries
27,000
customer interactions on
a daily basis
1.5m+
Philippines
11 sites delivering off-shore
services to English-
speaking regions
Europe
40 sites across
16 countries
33 languages
North America
1,000+ work-at-home
agents
Transcom is active in 20 countries, with 51 sites serving clients in 33 languages
By geography/language By industry
Global presence: Albania, Canada, Croatia, Estonia, Germany, Hungary, Italy, Latvia, Lithuania, Netherlands, Norway,
Philippines, Poland, Portugal, Serbia, Spain, Sweden, Tunisia, United Kingdom, US
(€ m)
3
Note: 1) Breakdown excluding non-material unreconciled sales.
29%
38%
33%
Confidential
A leading provider of outsourced customer relationship management solutions…Future-proof multi-channel delivery on a global scale
Transcom is a global customer care
provider offering future-proof customer-
facing concepts delivered by a global team
of local specialists…
…supporting clients’ digital agenda by
combining core services with leading digital
capabilities and tools…
…delivering services in 33 languages to
international brands in various industries
27,000customer experience
specialists
Call
Messaging
Chat E-mail
Social media
Core services
Conversational commerce
Digital channels
Robotic process
automation
Interactionanalytics
Chatbots
Gamification
Services & utilities
Commerce & logistics
Auto-
motive
Logistics Retail/
e-commerce
IT/Tech White
goods
Telco & cable
Utilities BFSI Gov &
Health-
care
Media Travel
Telco Cable
serving customers via...
4
Confidential
▪ 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
Strong focus on increasing digital customer penetration
Digital process automation 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
managing best-in-class customer
experience solutions
Customer experience (CX)
managementDigital interactions
…with a highly competitive digital offering…At the forefront of developing high-value digital solutions
▪ 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
▪ Gamification: application of game-
design elements in a non-game
context. Game types cover the full
agent life-cycle needs:
- Leadership
- Employability
- Operational
- Commercial
▪ Digital channels
- Messaging (conversational
commerce)
- Webchat
- Social media
- Rating-apps
- Self-service
Best cloud implementation Best use of customer insights, finalist
5
Confidential
…serving an established portfolio of satisfied blue-chip clientsQuality offering well-entrenched in clients’ operations
Telco & cableServices & utilities Commerce & logistics
Transcom agents providing high-quality service
Integrated into the clients’ systems Up-sell, cross-sell and retentionTechnically trained Updated and prepared
Trained agents able to answer “entry-
level” queries, with a pass-through
system in place – i.e. transferring
customers to senior Transcom agents
(where necessary)
Agents are aware of changes to clients’
product offering and are prepared to
handle potential complaints
Agents can access clients’ systems
and provide live information about
deliveries and other requests
Agents are incentivised by KPIs set by
clients and can offer pre-agreed deals
should a client call to terminate a
contract
6
Confidential
Transcom is riding the key trends that will shape the industry going forwardDigitalisation, shift in service mix, market consolidation and increased outsourcing to drive market development
New technologies
and ongoing
digitalisation
Service mix change towards higher-value interactions
Market consolidation
Increasing outsourcing share
▪ 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
▪ 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
Selected consolidators
Key industry trends
MaturityHigh Low
AnalyticsRobotic process
automation
Cognitive / artificial
intelligence
Additional volume from outsourcing drives
~25%of annual market growth
Value per contract
Outsourced contract volume
7
Current contracted value
Value-added sales
Service expansion
Source: Third party provider.
▪ 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
▪ 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)
Technological capabilities
Confidential
Business update and strategic priorities
28
Confidential
A solid foundation as a basis for profitable growth
Profitable growth
Double-digit margin and
solid organic growth
Building the foundation
From 5 to 9% EBITDA margin
(2015-2019)
9
1
2
▪ Reduction of €30m OH and support cost
▪ Attractive segments and delivery locations
▪ Developing strong digital offering
▪ Client focus
▪ Operational excellence
▪ Culture & leadership
Confidential
46%
38%33%
37%
38%
38%
17%
24%29%
579
544 543
2017A 2018A 2019A
Growth in attractive segmentsPortfolio shift away from telco & cable towards growth sectors and high-margin business
Sales by industry1)
▪ Commerce & logistics
- Fast-growing vertical
- Increasing share of sales driven by e-commerce
and acquisition of Awesome
▪ Service & utilities
- Stable outlook
- Fintech and insurance amongst attractive
segments for expansion
- Selective M&A supporting journey, incl. TMS
- Impacted by divestiture of legal services
operations in Spain in June 2019
▪ Telco & cable
- Increasing profitability on the back of operational
improvements and exits from unprofitable
contracts
- Not actively seeking new logos
10.7%
6.4%
5.1%
Comments
(€ m)
10
Note: 1) Breakdown excluding non-material unreconciled sales. 2) Estimates.
Commerce &
logistics
Services &
utilities
Telco &
cable
EBITA margin
2019A2)
Confidential
▪ Near- and off-shore
- Global shift to sourcing near- and off-shore
- Strong position in profitable European near-shore &
multi-lingual segments; off-shore in the Philippines
- Sourcing trend ensures low-cost options
▪ On-shore
- Strong current footprint with multi-lingual capabilities
- Target to keep clients within focus sectors and to further
build on work-at-home concept in North America
Optimisation of delivery footprintExpanding near- and off-shore capabilities to drive profitability
Sales by type of delivery1)
74%71%
65%
18%
20%25%
8%
9% 10%
579
544 543
2017A 2018A 2019A
EBITA margin
2019A2)
8.0%
19.0%
2.0%
Recent initiatives
Shoring trends
Q2 2019
▪ Acquisition of ASA Informationsdienste
Q3 2019
▪ New site in Pasig, Philippines
▪ New site in Elblag, Poland
Q1 2019
▪ Divestment of operations in Chile
▪ New site in Novi Sad, Serbia
▪ New site in Zagreb, Croatia
Q4 2019
▪ Ramp-up of additional capacity in Zagreb, Croatia
▪ New site in Tunis, Tunisia
▪ Developing new sites in Cairo, Egypt and Davao,
Philippines (ready in Q1 2020)
(Divested)
11
(€ m)
Note: 1) Breakdown excluding non-material unreconciled sales. 2) Estimates.
Near-shore
Off-shore
On-shore
Confidential
Headcount reductions through de-layering,
ratio optimisation and transfer to shared
services centers
Profitability uplift from delivery on cost-out programmePeople, Passion, Performance (PPP) programme – closing-in on €33m cost-out target
Note: Actual run-rate. 1) Gross of investments, ~€1.5m in 2018A and ~€1.0m in 2019A.
Cost savings development and target
16.0
5.0
1.8
10.6
6.0
8.4
2017A
10.8
2018A1)
12.2
4.8
2019A1)
12.3
10.2
Target
11.0
21.0
33.0 33.1
Headcount reduction in support functions,
transfer to shared service centers and
procurement
Headcount reductions through de-layering,
ratio optimisation and transfer to shared
service centers
Realised savings
Europe
English-speaking region
Central functions
Realised cost savings 2019A (€ m) Comments
Direct operations 3.7 Increased efficiency in mainly team leaders
Direct support 13.2 Rightsizing based on process improvements and de-layering
General & expenses 16.1 Rightsizing of overhead functions, incl. HR and IT and reduction of 3rd party spending (facility and IT)
Total 33.0
12
(€ m)
Confidential
A strong platform for the next development phaseClient focus, operational excellence and culture & leadership as key efficiency drivers
▪ Strengthen market presence in
North America
▪ Accelerate sales in Europe
▪ Develop and protect existing
clients
▪ Operational performance
management
▪ Best practices for productivity,
recruiting, retention and
workplace presence
▪ Client-by-client improvement
approach
▪ Leadership for people
performance
▪ Clear, decentralised
accountability and lean
overheads
▪ Culture of client and customer
centricity
Client focus Operational excellence Culture & leadership
13
Confidential
Expansion through accretive M&AGrowth in attractive segments and geographies through a targeted M&A agenda
Note: 1) TMS acquired outside of the SSN restricted group.
M&A transactions since the take-private in 2017
to strengthen its European
near-shoring and multi-lingual
services (500+ employees)
August 2018
Transcom Holding AB
acquires a site in
Durrës, Albania
Durrës
to strengthen its digital
capabilities and position in the
e-commerce industry
July 2018
Transcom Holding AB
acquires Awesome OS
to create a center of
excellence for utilities and
increase its footprint on the
German market
March 2019
TopCo AB
acquires TMS
connected!1)
to expand its footprint in 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 Nordics within
the SME market
June 2017
Transcom Holding AB
acquires Xzakt
Kundrelation AB
▪ Transcom has pursued a targeted M&A agenda since its take-private by Altor in 2017
▪ Key drivers behind the acquisitions include the strengthening of its positioning in growth markets (e.g. e-commerce and utilities), further penetration of
selected geographies (e.g. the Nordics, Germany and the US), the enhancement of near- and off-shore capabilities (e.g. Albania and Philippines) as well
as the improvement of operating performance and profitability
▪ By acquiring ASA Informationsdienste in 2019, Transcom carried-out its first carve-out deal – a transaction type which could be of increasing relevance
for the business going forward
14
Confidential
Key credit highlights
315
Confidential
Diversified customer base with
long-standing relationships
Key credit highlights
16
Strong management team, committed owner and proficient board
Growing industry with proven
resilience through the cycle
Strong and protected market position;
well-equipped for the adoption of new
technologies
A B C
G
Cash-generative business on the back
of capital-light model and flexible cost
base
Operational excellence and continued
client focus will drive profitability
uplift in line with industry peers
D E
Market size
58 6883
2015 2019 2024F
4%4%
0%
50%
100%
0 20 40 60
Sales, 2019A (%)
No. of customers
200+clients
1.5m+Customers
served daily
33Languages
spoken
27kEmployees in
20 countries
Next generation digital service portfolio
Limited technology risk in the foreseeable future
97%retention
88%78%
67%
2017A 2018A 2019A
Cash conversion2) as % of adj. EBITDA
6,3%9,2%
2017A 2019A Target Sel. peers
Adj. EBITDA margin (%)
Double-
digit
CAGR
Note: 1) For 2017A, no adjustments for acquisitions or Q1 ‘17A cash flow (prior to the take-private by Altor). 2) Cash conversion defined as adj. EBITDA - capex.
Source: Third party provider.
1)
2019A incl. ~€2m in non-
recurring intangible capex
(€ bn)
Targeted and disciplined M&A agenda
in a highly fragmented marketF
Sales of M&A target pipeline
~40
~22 ~20
~7 ~4
#1 #2 #3 #4 #5
(€ m)
Confidential
Global outsourced customer care services market
58 60 63 65 68 71 74 7680 83
2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F
17
Growing industry with proven resilience through the cycleOutsourced CRM market to expand on the back of secular trends; profitability stable also through downturns
A
Peer group reported EBITDA margin1)
Strong market growth expected to continue Levers for increased outsourcing
Resilient industry margins through the cycle Profitability levels sustained by market drivers
High and
increasing entry
barriers
▪ Long established customer relationships
▪ Intl. coverage and skilled staff required to service blue-chip clients
▪ Increased digitisation leading vendors to offer more advanced
technology capabilities
Increased lock-in
effect for SMEs
▪ Technological solutions becoming increasingly important in
delivering high-quality customer service
▪ SMEs without necessary technological capabilities request them
from vendors, enabling lock-in effect and improved margin control
Steady growth
with only some
volume
variability
▪ Strong volume growth in sectors such as e-commerce and logistics
▪ In telco and financial services, digitisation has reduced volume
(mainly low value and simple interactions); decline is expected to
stabilise, with some volume variability to remain
11%12% 12%
10% 11% 10%9%
10%10% 10% 10% 10%
11%10% 10%
0
5
10
15
2005 2007 2009 2011 2013 2015 2017 2019
Note: 1) Average EBITDA margin for industry peers incl. Arvato, Atento, Conduent, Convergys, Group Konecta, Sitel, Startek, Sykes, Teleperformance, Transcom and Ttech (for all years with publicly available financials, based on reported figures).
Source: Third party provider.
4%
4%
Ongoing digitalisation of
customer service activities
Value-added and outbound
services requirement
More complex and
multi-channelled interactions
Contact centers turning into
growth engines
(€ bn)CAGR
Confidential
Transcom has a strong and protected market position…Well-entrenched positioning in a market with rising barriers to entry
B
Gradually increasing barriers to entry to the BPO market
▪ Sticky customer base with high
customer integration and long
established relationships
▪ Geographical coverage and
international capabilities demanded to
serve large and international clients
Customer relationships
and integration
1.5m+Customers
served daily
13 yearsAvg. length of top
10 client
relationships
18
Source: Third party provider.
Transcom differentiates itself with a strong core offering and an increasing focus on value-added services
▪ Languages and dialects act as
barriers to several geographical
regions and access to global sizable
markets
Languages and dialects
33Languages
> 60%Non-
English
51Contact
centers
▪ Increased mobile interaction and
higher technical capabilities
requirements makes it harder for
competitors to enter
- AI and virtual agents gradually
replacing tasks and enhancing
human performance
▪ Virtual agents expected to be used by
25% of companies in 2020
Increasing digitalisation
Next generation services
portfolio with robotics, virtual
agents and speech analytics
used in live assistance via
chat, social media, etc.
▪ Staff needs to be educated and
trained to secure high-quality service
▪ Efficient production platform to allow
large-scale services and integration
with clients
▪ Capabilities within consulting,
analytics, integration technology and
new technology to yield a competitive
advantage and increased efficiency
going forward
Investments to develop
service offering
27,000Employees
across
20 countries
10 / 10Industry tech.
and platform
standards
✓ ✓✓✓
Confidential
▪ Put transactional,
historical, behavioral,
social and demographic
data to a customer profile
analysis
▪ Complex and fast-moving
field providing business
benefits far beyond
conventional business
intelligence
▪ Rapidly automate simple
and repetitive processes,
improving customer
experience and
increasing efficiency - but
with less capabilities than
artificial intelligence
▪ 30% of volumes
expected to be
supported by
automation and script-
based bots in 5 years
▪ Domains analyse
information, build models,
and test hypotheses to
form guidance
▪ Current scope is still
narrow – only specific
tasks can be undertaken
as RPA enablers
▪ 10-15% of volumes
expected to be
supported or fully-
handled by artificial
intelligence in 5 years
…and is well equipped for the adoption of new technologiesNew technologies to shape the future of the industry; however, limited impact expected over the next 3-5 years
Low technology risk in the foreseeable future
19
Source: Third party provider.
Description Technology impact Description Technology impact
Robotic process automation (RPA) Cognitive / artificial intelligence
Description
Analytics
Transcom to monetise digital service offering with newly-introduced value propositions, e.g. RPA virtual agents, conversational analytics and gamification
Customer-centric delivery model and increasing organizational agility
Transcom is well positioned to be the party that evolves part of its customers’ contacts to a hybrid model
High maturity Low maturity
The future technology in contact centers will involve augmenting human performance rather than replacing agents
✓
✓
✓
B
Transcom assumes a
low technology risk over
the foreseeable future
Confidential20
Diversified customer base with long-standing relationships…Leadership in core markets; over 200 clients with consistently high retention rates
C
Market-leading position in core markets Long-standing relationships with key clients
Diversified customer base High customer retention rates1)
0%
25%
50%
75%
100%
0 10 20 30 40 50 60
Sales (%)
No. of customers
Client Since Region Industry
European mobile operator
Global technology client
US cable operator Cable
1995 Europe Telecom
2010
US2002
2007
TechGlobal
Global logistics client 2007 Global Logistics
SpainSpanish bankFinancial
services
Average length of top 10 client relationships: 13 years
Top
3
Market-leading position in
Sweden and Norway - the
two most consolidated
markets in the Nordics
Top
10
2% market share
in Europe, placing
Transcom amongst the
top 10 players globally
97% 99% 97%
2017A 2018A 2019A
Client retention rate
200+ clients
Note: Figures as of 2019A. 1) Calculated based on sales.
Source: Third party provider.
Confidential21
…built on a differentiated offering and strong market recognitionOutperforming competition on key purchasing criteria; highly rated by both customers and competitors
C
Strengths and differentiators
Outperforming competition on key purchasing criteria Recognised as a preferred vendor and a strong competitor
Flexibility
NS/ML capabilities
Quality excellence
Digital expertise
Client-centricity
Competitor average
average Low
1 3 4
High
5
Commercial partnering1)
Quality of service
Digital capabilities
Breadth of service types
Footprint and language
Industry/domain expertise
Risk management2)
2
Flexible and customised solutions provided by multiple delivery platforms and models (i.e. Awesome, Flex)
Organisation transformed into an agile and client-centric global model
Established on-shore/near-shore footprint ensuring strong multi-lingual capabilities and low-cost options
Standardised way of working with continuous improvements to offer outstanding service quality
Investments in innovation and future technology to deliver best-in-class solutions
Note: 1) Commercial model includes innovation and proactivity in commercial relationships, including proposing “win win” models, in addition to flexibility in understanding and meeting client requirements. 2) Risk management includes security, emergency management contingency plans.
Source: Third party provider.
“Transcom is our preferred vendor. They are good and offer a solid commercial model"
Head of Customer Service, European telco operator
”Transcom’s agents are ready for virtually any
situation and guarantee high-quality service
all the time”
Operations director, Global travel reseller
“Transcom deliver tangible results,
with even higher customer satisfaction and
reduced operating costs”
Head of Customer Service,
European telco operator
”Customers in our industry require a whole
new level of service. We can rely on the
agents’ knowledge in our field”
CS manager,
Global manufacturing company
“Transcom is doing really interesting things
in their market”
Management, competitor
Confidential
31%16%
69%
18%
23%
2%
18%
23%
Total costs Indirect costs
(€ m)
4,3
8,8
16,5
2017A 2018A 2019A
Capex
4.8% 6.3%
Cash-generative business on the back of capital-light model and flexible cost base
22
(€ m)
Highly variable cost base providing flexibility
Capital-light business modelSolid cash conversion1)
D
Direct costs
100% flexible
Indirect costs
60% flexible
88% flexible 60% flexible
Solid cash conversion rate with capex geared towards investments in new sites; flexible cost base
32 3133
88%
78%
67%
2017A 2018A 2019A
Cash conversion
Note: 1) Cash conversion is defined as adj. EBITDA - capex. 2) For 2017A, no adjustments for acquisitions or Q1 ‘17A cash flow (prior to the take-private by Altor).
Cost item Flexibility (%) Approach Timing
Operational support staff 90% Attrition, temps, pass-on Fast
Other direct support 60% Medium
Sales & marketing 50% Medium
Admin personnel costs 25% Medium
Rent & building costs 75% Flexibility in contracts Medium - slow
Other G&A 50% Medium
NWC as % of sales
Cost base
5.6%
2)2)
2019A incl. ~€2m in non-
recurring intangible capex
Cash conversion as % of adj. EBITDA
Confidential
Peer group EBITDA margin (%)
Source: Company information.
23
Transcom
2019A
10%
15%
8%
25%
9%
13%
6%
11%
Transcom
2017A
13%
18%
5%
13%
20%
9%
32%
9%
26%
12%
25%
22%
21%
11%
21%
20%
18%17% 17%
16% 16%
15%
14%
11% 11%11%
10%
5%
10%
8%
+3%pts
Effectiveness & agility
✓ Cost-out programme
✓ Shift towards more profitable
segments and delivery models
✓ Targeted M&A
✓ Digitalisation
Ø 14%
Efficiency
✓ Focus on operational efficiency
and productivity
✓ Further repositioning of
portfolio
✓ Growth in attractive segments
through accretive M&A
2 1Transcom targets profitability
levels in line with industry peers
Double-digit
Operational excellence and continued client focus will drive profitability uplift in line with industry peers
Acceleration of strategic initiatives expected to bridge margin gap vis-à-vis peers
Global, regional and local peers’ profitability levels provide proof of margin uplift potential
E
0
5
10
15
20
25
30
Confidential
Targeted and disciplined M&A agenda in a highly fragmented market
24
Estimated BPO CRM market share of top 5 players1)
Strong M&A pipelineFragmented market
Sales of potential M&A targets
▪ Selective approach and clearly defined acquisition strategy focused on “polished pearls”, i.e. companies with double-digit profitability, attractive growth potential and
complementary assets
▪ Large tail of suitable targets with significant value creation potential
▪ Key criteria for M&A is to improve growth and profitability by strengthening footprint in attractive verticals, geographies and delivery models (incl. healthcare,
e-commerce)
▪ Proven track record of successful integration of a number of businesses and sites since Altor’s take-private in 2017
▪ The tap issue will generate increased firepower for future add-on acquisitions
F
25% 25%
Global Europe
Note: 1) OES (2018).
Opportunistic pursuit of accretive acquisitions of “polished pearls”
(€ m)
~40
~22~20
~7~4
#1 #2 #3 #4 #5
Northern Europe Central Europe
Confidential
Fredrik CappelenChairman of the Board
▪ Chairman of the Board of Transcom, Terveystalo and
Dometic
▪ Board member of Securitas
▪ Previously Chairman of Byggmax, Carnegie
Investment Bank, Munksjö, Dustin, Cramo, etc.
Brent WelchBoard member
▪ 35+ years of experience in running global operations
at a world class peer to Transcom
▪ Global COO of Teleperformance
▪ Former CEO of Teleperformance US and other
English speaking countries
Klas JohanssonBoard member
▪ Partner at Altor Equity Partners
▪ Board member of Carnegie Investment Bank and BTI
Studios
Mattias HolmströmBoard member
▪ Director at Altor Equity Partners
▪ Board member of BTI Studios, Meltwater and
Curamando
Alfred von PlatenBoard member
▪ Previously 20 years entrepreneurship within the
Finance and Customer Service industries
Strong management team, committed owner and proficient board
25
Experienced management team
Steffen BaggeCOO, Europe
Transcom since Aug 2019
▪ Co-founder, Plecto (’13-’19)
▪ VP, YouSee (’15-’17)
Robert KresingGM, Central
Transcom since Sep 2019
▪ COO, Terram Energie
(’18-’19)
▪ MD, Accenture (’12-’17)
Alexandra DahanHead of Corporate Projects
Transcom since 2003
▪ Head of IR, Transcom
(’08-’11)
▪ Head of M&A, Transcom (’03-
’08)
Mark LyndsellCEO, Global English Region
Transcom since Sep 2009
▪ Head of Care, Tiscali
(’08-’09)
▪ Head of CS, UK Broadband
(’04-’08)
Eva Wikmark-WalinCPO
Transcom since May 2019▪ HR, 4potentials (’18-’19)
▪ Talent Acquisition (’09-’17)
Pernilla OldmarkGM, Nordics
Transcom since May 2019
▪ CCO, Cabonline (’16-’18)
▪ Communication, Tele2
(’07-’14)
Juan BrunGM, Iberia
Transcom since Mar 2016
▪ Ops Director, Atento (’14-’16)
▪ Ops Director, Transcom (’06-
’10)
Gianluca GemmaGM, Italy
Transcom since Mar 2012
▪ Group controller, Ciccolella
(’09-’12)
▪ Internal audit, Falck
Renewables (’07-’08)
Helene RudaHead of Communications
Transcom since Sep 2017
▪ Director, Sensavis (’15-’17)
▪ DGM Sweden, Bite (’12-’15)
Stefan Berg CTO
Transcom since Sep 2019
▪ VP, Electrolux (’14-’18)
▪ CIO, ComHem (’09-’14)
Oliver CookChief Sales Officer
Transcom since Jul 2018
▪ Senior Director, Diconium (’16-
’18)
▪ Head of Business
Development, Sitel (’14-’16)
Jonas Dahlberg CEO & President since Jan 2020CFO (outgoing) – recruitment of new CFO in progress
Transcom since June 2019
▪ CFO, Sweco Group (’12-’19)
▪ President, Sweco Russia (‘08-’12)
Supportive Board of Directors
G
Joined Transcom after
Altor’s engagement in 2017
Seasoned leadership team with international experience, strengthened since Altor’s engagement in 2017
Aaron FavaraSVP, Global Accounts &
Virtual WorkTranscom since May 2019
▪ Global executive BPO at
Sutherland, Arise Virtual
Solutions & West Corporation
Confidential
Key financials
426
Confidential
46%38% 33%
37%
38%38%
17%
24% 29%
579544 543
2017A 2018A 2019A
27 7
4 6
21
4 4 4 3 1 12
9
16
20
24
3734 35
33
15
12
8
Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419
E/O items (by quarter) E/O items (LTM)
Strengthening financial performance
27
Sales1) EBITDA
E/O items Cash conversion2)
Increasing margins on the back of portfolio shift and tailing-off of E/O items; solid cash conversion
Telco &cable
3639
50
6,3%
7,2%
9,2%
2017A 2018A 2019A
Adj. EBITDA Adj. EBITDA margin (%)
(€ m) (€ m)
(€ m)
32 3133
88%
78%
67%
2017A 2018A 2019A
Cash conversion Cash conversion as % of adj. EBITDA
(€ m)
Note: 1) Breakdown by segment excluding non-material unreconciled sales. 2) Cash conversion defined as adj. EBITDA – capex. 3) For 2017A, no adjustments for acquisitions or Q1 17A cash flow (prior to the take-private by Altor).
2019A incl. ~€2m in non-
recurring intangible capex
3)
Services &
utilities
Telco &
cable
Commerce &
logistics
Sales
Confidential
Underlying stable revenue development with profitability upliftFocus on attractive markets, operational improvement, accretive M&A and delivery footprint optimisation
28
▪ Shift towards attractive growth segments, incl. e-commerce and utilities, which account
for 67% of sales as of 2019A. Despite a decline in overall sales from 2017A to 2019A, the
underlying sales development was not negative
▪ Top-line decreased over the period primarily following the termination of a loss-making
customer within telco & cable in 2017/18A, the discontinuation of brick & mortar
operations in the US (migrating to a work-at-home model), the exit from unprofitable
contracts and the divestment of parts of the Spanish business
▪ The above was offset by acquired growth, mainly with the addition of Awesome, as well
as positive momentum in Q4 from the inflow of new contracts in prioritised markets
EBITDASales
▪ Strong EBITDA margin expansion from 6.3% in 2017A to 9.2% in 2019A
▪ Profitability uplift mainly from the implementation of the PPP programme, accretive M&A
and an increase in off-shore delivery:
▪ PPP programme (~€30m cost take-out): increased operational efficiency within call
centers through enhanced team leader utilisation; rightsizing based on process
improvements, improved agent to support staff ratios and de-layering; reduction of
overhead functions and transfer of resources on to shared service centers
▪ M&A: positive impact from the acquisition of higher-margin businesses, incl. Xzakt
(multi-client servicing for SMEs) and Awesome (e-commerce servicing from the
Philippines), as well as the divestment of unprofitable operations in Latin America
▪ Off-shore: increase in high-margin off-shore delivery footprint
3639
50
6,3%
7,2%
9,2%
2017A 2018A 2019A
Adj. EBITDA Adj. EBITDA margin (%)
(€ m)(€ m)
21 (25) 6579 581
2017A Wins Losses 2019
underlying
Change in
existing
customers
0.4%
Confidential
Solid Q4 performance and positive momentum in new contract inflowStable top-line development and significant margin expansion
29
EBITDASales
(€ m) (€ m)
143 142
Q4 2018A Q4 2019A
15
17
10,8%
11,9%
Q4 2018A Q4 2019A
Sales Adj. EBITDA margin (%)Adj. EBITDA
Confidential
E/O items tailing-offSteadily trending downwards as E/O costs relating to PPP programme, acquisitions and legal claims decline
20.6
E/O items
30
(€ m) 2017A 2018A 2019A
Sales 579 544 543
EBITA incl. E/O items 8 (3) 31
E/O items by category
PPP restructuring costs n.a. 14 2
PPP consultancy support n.a. 5 1
Acquisitions and divestments n.a. 6 0
Legal claims and settlements n.a. 9 2
Management restructuring and other n.a. 0 3
E/O items 20 35 8
Adj. EBITA 28 32 39
Adj. EBITA margin (%) 4.9% 5.8% 7.2%
(€ m)
2
7 7
46
21
4 4 4 3 1 1
2
9
16
20
24
37
34 35
33
15
12
8
Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419
E/O items (by quarter) E/O items (LTM)
Confidential
37
18
39
101%
45%
78%
2017A 2018A 2019A
Operating free cash flow Operating free cash flow as % of adj. EBITDA
Solid cash flow generation profile
Operating free cash flow
31
(€ m) 2017A1) 2018A 2019A
Adj. EBITDA 36 39 50
Capex (4) (9) (17)
Change in working capital2) 5 (13) 6
Operating free cash flow 37 18 39
As % of adj. EBITDA 101% 45% 78%
▪ Operating free cash flow rose significantly in 2019A on the back of stronger profitability,
and in spite of an increase in capex
▪ Capex is primarily driven by investments in tangible assets related to the establishment of
new sites, incl. computer hardware and software and office improvements
▪ 2019A saw higher capex in intangible assets (~€5m – of which ~€2m considered non-
recurring – up from ~€0.5m in the two previous years) mainly related to investments in IT
development costs and licenses
(€ m)
Increasing operating free cash flow on the back of higher profitability and in spite of significant investments
Note: 1) For 2017A, no adjustments for acquisitions or Q1 17A cash flow (prior to the take-private by Altor). 2) Deviations in working capital changes vs. balance sheet stem from amongst others acquisition-related balances and accrued interest.
2019A incl. ~€2m in non-recurring intangible capex
Confidential
3,8
8,5
11,9
0,5
0,3
4,6
4,3
8,8
16,5
0,7%
1,6%
2,2%
0,7%
1,6%
3,0%
2017A 2018A 2019A
Tangible capex Intangible capex
Tangible capex as % of sales Total capex as % of sales
Investing in growth, with stable net working capital levels
Capex Net working capital (yearly)
Capex driven by investments in new sites; net working capital typically accounting for ~4-7% of sales
(€ m)
32
(€ m)
28
3430
4,8%
6,3%
5,6%
2017A 2018A 2019A
NWC NWC as % of sales
1)
Note: 1) For 2017A, no adjustments for acquisitions or Q1 17A cash flow (prior to the take-private by Altor).
Net working capital (by quarter)
1)
0%
2%
4%
6%
8%
(100)
(60)
(20)
20
60
100
140
(€ m)
NWC%
Prepaid expenses and accrued income
Trade receivables Trade payables
Other receivables - Current
Accrued expenses and prepaid income
Other liabilities - Current
2017A 2018A 2019A
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Confidential
Supporting materials
533
Confidential
Global outsourced customer care services market – by industry
CAGR
‘15-’19
Telecom“Kill call”-strategies in mature markets, partly offset by more complexity and customers in EM 1.4% 1.5%
CAGR
‘19-’24F
OtherPublic sector and utility increasing share of outsourcing as key core drivers
5.5% 5.0%
Financial services and insuranceSlow growth in mature regions and increased regulations partly offset by more customers in EM
2.5% 2.6%
IT and technologyGrowth on par with market driven by underlying market expansion and overall sector growth
4.6% 4.4%
RetailDriven by rise of e-commerce and new business models on customer contact
7.4% 6.3%
HealthcareAgeing population, broader access to healthcare (US) and continued increase in outsourcing
11.0% 8.3%
Travel and transportationDriven by overall growth in sector coupled with shift from physical to online travel agencies
6.3% 5.6%
2024F2022F2021F 2023F
58 60 63 65
7468 71
76 80 83
CAGR
‘15-’19
North AmericaIncreasing outsourcing due to demand for active customer care – service providers also expanding technology platforms. High costs of resources leading to offshoring
3.1% 3.5%
EuropeSlowing growth in GDP to a great extent offset by an increase in outsourcing share across most countries
3.2% 2.6%
Asia PacificIncreasing outsourcing maturity driving strong value on top of comparably high GDP growth. Increasing number of English speakers and cost-effective labor
7.6% 6.4%
Latin America Strong non-Brazilian growth – both GDP and wage increases. Rising demand through reduction in telecom rates, rising internet penetration, and increase of educated bilingual agents
6.9% 6.0%
Middle East and AfricaSolid underlying growth with several industry verticals needing increased customer care spend. Increasing domestic demand and use of outsourcing partners
6.0% 5.3%
CAGR
‘19-’24F
20162015 20192017 2018 2020F
4%
4%
2024F2022F2021F 2023F20162015 20192017 2018 2020F
4%
4%
Market deep-dive – Strong global industry growth is expected to continueIncreased outsourcing fueling market expansion; healthcare and online-driven sectors to see rapid growth
Global outsourced customer care services market – by region
58 60 63 65
7468 71
76 8083
(€ bn)
(€ bn)
Source: Third party provider.
CAGR
CAGR
Region
Industry
41%
28%
16%
12%3%
42%
30%
14%
3%11%
44%
31%
2%10%12%
31%
20%
4%6%
8%10%
21%
28%
19%
4%8%
9%
10%
22%
25%
17%
4%
10%
10%
11%
23%
34
Confidential
Market deep-dive – The majority of revenue stems from query resolution services Query resolutions drive the market; steepest growth seen within advisory and acquisitions
Global outsourced customer care services market by offering
12.0%
3.1%
7.0%
4.4%
4.2%
6.1%
Query resolution
Acquisition
Credit and debt collection
Advisory
Back office
Service offering Market size (€ bn, 2019)
CRM & retention
44.4
11.1
2.8
1.7
3.4
4.6
“Previously we thought sending sales efforts off-shore was
never going to work, we have been proved otherwise and I
think we will see growth in sales activities going forward“
Head of Business Development, Global CC BPO vendor
“I think we will see an increase in complex and advanced tech
support – end-user customers get more information, they get
increasingly knowledgeable and will be more demanding“
Head of Customer Service, Telco Operator
“There will be more focus on pro-active customer contacts
based on intelligent analytics and prediction of customer needs
– which obviously drives our demand for first line data"
Head of Customer Ops, Global Telco Operator
3.1%
6.1%
4.2%
8.8%
4.0%
5.4%
CAGR (‘19-’24F)CAGR (‘15-’19)
35
Source: Third party provider.
Confidential
Market deep-dive – Key profitability driversService line and industry outsourcing maturity as key determinants of profitability
Key profitability drivers
Service line mix
key to drive profitability
in accounts
Shoring profitability
varies significantly2)
3%
8%11% 13%
EBIT margin1) (%)
0-10%
7-15%
15-20%
10-15%
On-shore Work-at-home Near-shore Off-shore
0-10%
15-25%
▪ Maturity levels differ significantly
between regions and offerings
▪ Within verticals, there are several less
(more) mature niches giving sources of
higher (lower) margins
EBIT margin1) (%)
Back office Query resolutionAcquisitions &
onboardingCRM & retention
Advisory &
analytics
Credit &
collections
Healthcare
Telecom
UtilitiesTravel
Retail
Technology
Maturity
Industries
outsourcing maturity
and service mix vary
EBIT margin1) (%)
Financial
services
Public
sector
36
Note: 1) As of 2018. 2) Stated margins are QRC focused.
Source: Third party provider.
Confidential
Overview of Transcom’s CSR initiatives
37
Transcom fully supports the ten principles of the UN Global Compact
with respect to human rights, labor rights, environmental care and
anticorruption work. These principles are an integral part of the
corporate strategy, business culture and day-to-day operations
Code of
business
conduct
Supplier code of
business
conduct
Environmental
policy
Ethical practices adopted across the company and the
standards to which the people are expected to aspire
Standards to which Transcom’s suppliers and partners
are expected to adhere
Transcom’s commitment to a responsible approach to
reducing environmental impact of the business and to
encourage people to adopt environmentally-friendly
working practices
Transcom Cares
Transcom Cares launched in 2013 as the global CSR program and
deployed in all regions with a focus on people development, equality &
diversity and community engagement
Confidential38
2019
▪ Acquisition of TMS connected! outside of the
bond group, creating a center of excellence for
utilities and strengthening exposure to the
German market
▪ Carve-out of ASA Informationsdienste (DPV),
further strengthening the position in the
German market
▪ Establishing an innovation hub
▪ Opening of the IT Development Hub in Zagreb
2007
Strengthened presence
in the North American
market with the
acquisition of NuComm
International
2001
Listing on the OMX
Nordic Exchange
2009
Opening of two new
sites in the Philippines
and doubling the
capacity in that market
2004
Expansion into Hungary
with the acquisition of
customer management
business MarketLink
2002
Acquisition of a
majority stake in a Spanish
customer management
business, Gestel
2017
▪ Taken-private by Altor
▪ Acquisition of Xzakt Kundrelation
▪ Launch of the transformation program:
People, Passion, Performance
1995
Founded by Swedish
investment company Kinnevik, as
a customer service outsourcing
provider to a division of Tele2
1995 20202000 2005 2010 2015
2018
▪ First-time public debt issuance of €180m 6.5% Senior Secured Notes due 2023
(currently Moody’s: B3 / S&P: B-)
▪ Acquisition of Awesome OS and strengthening of digital capabilities as well as
focus on the e-commerce industry
▪ Expansion to Albania by take-over of a site in Durres
MarketLink
Today
Founded in 1995 – taken-private by Altor 2017 – transformation since then
Confidential
A leading provider of outsourced customer relationship management solutionsMulti-channel offering with a strong focus on digital
Note: 1) QRC = Query, Request and Complaint. 2) CRM = Customer Relationship Management.
▪ Protect revenue streams and turn potential defectors into fans
▪ Recover debt and rehabilitate customers
▪ In-house teams for legal process
▪ Support complex products in day-to-day service interactions
▪ Generate new sales directly from existing customer base
▪ Adept at building relationships
▪ Handling questions ranging from technical support to
information requests and service complaints
▪ Quality, accuracy, speed, efficiency and sales targets
▪ Reinforce buying decisions brand relationships
▪ Acquire new customers cost efficiently and uncover customer
needs
Consulting services
Quality optimisation
▪ Back office for Financial & banking, Telco and Utilities
▪ Legal back office
Sales & acquisition
Customer care
Technical helpdesk
Cross-sellUp-sellLoyalty
Collections
Back office
Retention
Transcom’s segment of the outsourcing market... …covered through a strong portfolio offering
Customer care
Acquisition &
onboarding
QRC management1)
CRM & retention2)
Credit operations
Advisory & analytics
Back office
Finance &
AccountingAdmin HR
Supply
Chain
Vertical
processes
(Industry
specific)
IT
Outsourcing
Transcom operates in the
outsourced customer care market
– a sub-segment of the wider
outsourcing market
39
Business Process
Outsourcing
(BPO)
Horizontal Processes
(similar across industries)
Outsourcing
market
Confidential
Focus on operational efficiency and productivity Aiming for best-in-class performance in operations
In the next stage, the PPP programme will be focusing on
enhancing Transcom’s efficiency and productivity
Until recently, the PPP programme has been focused on
improving Transcom’s effectiveness and agility
II.I.
Paidabsenteeism
-1% unit
Efficiency+1-2% units
Attrition -10% units
Indicative adj. EBITDA sensitivity to changes in
selected operational metrics1)
+ €5-10m
+ €2-5m
+ €2-3m
Increasing
productivity by one
minute per hour
boosts bottom
line by ~1%
Payback time for
educating a new
employee is around
3-6 weeks
✓ Customer-centric delivery model
✓ Focus on digital
✓ €33m cost take-out
Shift in PPP programme focus from operational effectiveness to efficiency
Note: 1) Estimates reflecting IFRS 16 accounting.
40
Confidential
E/O items driven by specific initiatives and events of a non-operating nature
Restructuring cost PPP
Consultancy support for PPP
Acquisition and divestitures
Legal claims and settlements
with clients
Management restructuring
and other
▪ Exiting unprofitable contracts
▪ Severance cost
▪ Onerous leases
▪ Acquisitions of Transcom,
Awesome, Durrës, ASA
▪ Divestments of Chile, Legal
services
▪ Transformation support
▪ Spain social cost claim
▪ Client settlement
▪ Other claims
▪ Management restructuring
1,8
9,8
1,3 1,1 0,3
3,5
0,1
(1,5)
1,0
2,7
0,1
1,1
0,2 0,0 0,2 0,0
3,2
-
2,7
0,4 1,4
(1,6)
0,3 0,1
-
8,1
0,2 0,9
1,6 0,1 0,2 0,0
- - -0,4 0,4
1,0
(0,1)
1,9
Q1 2018 Q1 2019Q2 2018 Q3 2018 Q4 2018 Q2 2019 Q3 2019
E/O items by quarter
41
Q4 2019
(€ m)
Confidential
P&L
42
Transcom Group
(€ m) 2017A 2018A 2019A Q4 2018A Q4 2019A
Revenue 578.6 543.6 543.1 143.0 141.8
Direct operational costs (392.8) (362.6) (349.0) (91.7) (88.4)
Contribution profit 185.9 181.0 194.1 51.3 53.5
Direct support costs (60.7) (56.7) (52.2) (14.1) (12.9)
Gross profit 125.2 124.4 141.8 37.2 40.6
G&A (88.9) (85.1) (91.9) (21.8) (23.8)
EBITDA incl. IFRS 16 n/a n/a 62.9 n/a 20.2
EBITDA 36.3 39.3 49.91) 15.4 16.8
Depreciation and amortisation (8.2) (7.7) (10.9) (2.1) (4.1)
EBITA 28.1 31.6 39.1 13.3 12.7
M&A amortisation (6.0) (9.5) (10.9) (2.7) (2.7)
Extraordinary items (20.0) (34.6) (8.4) (3.6) (0.5)
EBIT 2.1 (12.5) 19.7 7.0 9.5
Service fee (0.0) 0.1 (0.0) 0.1 (0.0)
Net financial result 2.1 (19.7) (17.6) (3.9) (5.0)
Income tax expense/income (4.4) 1.3 (2.5) 3.0 3.3
Net income (0.2) (30.8) (0.4) 6.3 7.8
Note: 1) EBITDA 2019A of €49.9m vs. “Bond” EBITDA 2019A of €47.5m.
Confidential
P&L based on IFRS 16
43
Transcom Group
(€ m) 2019A Q4 2019A
Revenue 543.1 141.8
Direct operational costs (349.0) (88.4)
Contribution profit 194.1 53.5
Direct support costs (51.9) (12.7)
Gross profit 142.2 40.7
G&A (79.3) (20.5)
EBITDA 62.9 20.2
Leasing depreciation (IFRS 16) (12.9) (3.4)
Depreciation and amortisation (10.9) (4.1)
EBITA 39.1 12.7
M&A amortisation (10.9) (2.7)
Extraordinary items (8.4) (0.5)
EBIT 19.7 9.5
Service fee (0.0) (0.0)
Net financial result (17.6) (5.0)
Income tax expense (2.5) 3.3
Net income (0.4) 7.8
Confidential
Transcom Group
(€ m) 2017A 2018A 2019A
Goodwill 174.1 210.4 205.2
Other intangible assets 96.5 112.1 104.6
Tangible assets 14.3 17.9 47.4
Deferred tax assets 0.7 2.4 1.3
Other receivables 2.9 2.2 3.0
Non-current assets 288.6 345.0 361.5
Trade receivables 62.5 71.1 59.1
Income tax receivables 5.5 4.5 6.3
Other receivables 8.7 10.8 13.3
Prepaid expenses and accrued income 40.9 37.8 36.0
Cash and cash equivalents 17.2 12.9 14.3
Current assets 134.9 137.1 128.9
Assets 423.5 482.1 490.4
Equity (128.0) (105.7) (105.1)
Interest-bearing liabilities (113.5) (216.7) (201.0)
Employee benefit obligations (2.6) (2.6) (3.3)
Leasing liabilities - - (16.0)
Provision (0.2) (18.1) (13.7)
Deferred tax liabilities (24.0) (27.3) (21.0)
Non-current liabilities (140.3) (264.7) (255.0)
Interest-bearing liabilities (62.9) (1.3) (13.7)
Leasing liabilities - - (11.4)
Provisions (3.9) (22.5) (20.7)
Trade payables (21.6) (23.8) (18.8)
Income tax payables (3.6) (2.3) (6.3)
Other liabilities (23.2) (21.1) (18.6)
Accrued expenses and prepaid income (39.9) (40.7) (40.7)
Current liabilities (155.2) (111.7) (130.3)
Liabilities (295.5) (376.4) (385.3)
Equity and liabilities (423.5) (482.1) (490.4)
Balance sheet
44
Note: Estimated capital structure as of the end of February to include i.a. SSN of €180m, SUN of €10m, drawn SSRCF of €32m, local facilities of €2m and cash on balance of €14m.
Confidential
Cash flow
45
Transcom Group
(€ m) 2017A 2018A 2019A
Profit/loss before tax 2.6 (32.2) 2.1
Adjustments for non cash items 14.6 30.1 33.4
Net financial items (4.0) 19.7 17.6
Income taxes paid (4.6) (2.3) (7.5)
Cash flows from op. activities before changes in working capital 8.6 15.2 45.7
Changes in working capital 4.8 (12.7) 5.7
Cash flow from operating activities 13.4 2.5 51.4
Capital expenditure (185.8) (42.8) (17.6)
Changes in other non-current assets 0.9 0.9 (0.8)
Interest received 0.2 0.1 0.3
Cash flow from investing activities (184.7) (41.8) (18.2)
Proceeds from borrowings 143.3 219.1 25.5
Repayment of borrowings (23.4) (181.6) (29.0)
Payment of finance lease liabilities (0.0) (0.0) (11.9)
Shareholder contribution 77.2 8.5 -
Interest and other financial costs paid (5.8) (12.0) (16.7)
Cash flow from financing activities 191.4 34.1 (32.1)
Cash flow for the period 20.1 (5.2) 1.1
Cash and cash equivalents at beginning of period (0.0) 17.2 12.9
Exchange rate differences in cash and cash equivalents (2.9) 0.9 0.3
Cash and cash equivalents at end of the period 17.2 12.9 14.3
Confidential
Reconciliationsthe table sets out the differences between the Transcom Group P&L as presented in
this presentation and numbers presented in the January 2020 public NDR presentation
Reconciliation with previously disclosed figures
46
Reconciliation table – Transcom Group
(€ m) 2017A 2018A 2019A Q4 2019A
Revenue in presentation 578.6 543.6 543.1 141.8
Difference 5.4 (0.0) (1.6) (0.0)
Revenue in NDR presentation/year-end report 584.0 543.6 541.5 141.8
Adjusted EBITA in presentation 28.1 31.6 39.1 12.7
Difference 1.9 0.0 (0.1) (0.0)
EBITA in NDR presentation/year-end report 30.0 31.6 39.0 12.7
Adjusted EBITDA in presentation 36.3 39.3 49.9 16.8
Difference 1.9 (0.1) (1.1) (0.2)
Adjusted EBITDA in NDR presentation/year-end report 38.2 39.2 48.8 16.6
2017A
▪ Xzakt was acquired in mid-2017 (consolidated from July 1st 2017). In this presentation
the P&L excludes the results from Xzakt up until the acquisition. In the public
presentation the numbers are presented on a pro-forma basis, i.e. such as if Xzakt
had been acquired January 1st 2017
2018A
▪ EBITDA difference due to rounding
2019A
▪ Revenues: as part of an agreement with a customer (following a dispute)
revenues/invoicing of €1.6m was written-off. Internally the company views this as a
one-off impact on revenue. As the numbers in this presentation are presented on an
adjusted basis, revenues are, as in the internal management accounts, presented
excluding the one-off write down. In the public information presented on an adjusted
basis, this one-off impact is instead taken into account within cost of sales, resulting in
revenues of €541.5m and €1.6m lower costs (i.e. neutral EBITDA impact)
▪ Adjusted EBITA: the P&L in this presentation is sourced from internal management
accounts and presented in accordance with the management accounts. One account
in the management accounts is “service fee”, which relates to FX differences on
internally charged management fees and is reported below EBITA in the management
accounts and presented in that way in this presentation. However, management’s
view is that this is in fact an operational item and hence the net impact is presented
above EBITA in the public information. For 2019A, the service fee/FX item was €(19)k
▪ Adjusted EBITDA: difference refers to; i) same difference as on EBITA level and ii)
that the interest component related to IFRS16 is treated below EBITA in this
presentation (when excl. IFRS16 it should be treated above EBITA which is not done
in this presentation due to the relatively immaterial amount)
Q4 2019A
▪ No difference on revenue and EBITA, difference on EBITDA same explanation as in
the 2019A period but the impact is only for 3 months
Confidential47