March 2020 Investor Presentation · Sales Adj. EBITDA Adj. EBITDA margin % Transcom –a Nordic...

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

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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

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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

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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.


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).


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


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


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.


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.


“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)



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


▪ 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


▪ Director, Sensavis (’15-’17)

▪ DGM Sweden, Bite (’12-’15)

Stefan Berg CTO


▪ 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).



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)


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


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.


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

March 2020 Investor Presentation · Sales Adj. EBITDA Adj. EBITDA margin % Transcom –a Nordic...

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