13 February 2014

Transcom

Outstanding

Customer

Experience

Fourth Quarter and Full-Year 2013

Results Presentation

Johan Eriksson, President & CEO

Pär Christiansen, CFO

Transcom at a glance

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• A global customer experience

specialist...

• ...providing outsourced

customer care, sales,

technical support, and credit

management...

• ...through an extensive

network of contact centers

and work-at-home agentsTranscom’s business is to

help make sure that our

clients’ customers form

positive perceptions of their

interactions with them.

”

What is Transcom?

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Transcom in numbers

• 29,000 people…

• …representing more than 100 nationalities

• 62 contact centers, onshore, off-shore and

near shore…

• …in 26 countries

• Delivering services in 33 languages...

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

• €653.2 million revenue in 2013

• Market cap: SEK 1,525.8 million as at December 30, 2013. Listed on NASDAQ OMX

Stockholm (TWW SDB B and TWW SDB A)

We have an extensive global footprint

Domestic markets

Austria

Netherlands

Slovakia

UK

Germany

Norway

Spain

Australia

Near Shore Locations Offshore Locations

Chile*

Peru*

Colombia*

Philippines*

Tunisia

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Czech Republic

USA

Canada

Italy

Poland

Sweden

Denmark

Portugal

Switzerland

Croatia

* Developing into domestic/near shore

markets

Canada

Croatia

Estonia

Latvia

Czech Republic

Hungary

Lithuania

Transcom’s service portfolio enables the creation of outstanding customer experiences, while reducing cost and helping to drive growth

Customer service

• Quality, accuracy, speed,

efficiency and sales targets

• Competitive differentiation

• Reinforce buying decisions

and brand relationships

Technical support

• Tiered support models

• Extensive product training

• Resolve customer issues at

first contact

Customer retention

• Prevent defection and

maximize customer lifetime

• Protect your revenue

streams and turn potential

defectors into fans

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Customer acquisition

• Acquire new customers

cost-efficiently

• Uncover customer needs,

identify the right offerings,

secure customer orders

Cross-selling & upselling

• Generate new sales directly

from existing customer base

• Support complex products

in day-to-day service

interactions

• Adept at building

relationships

Collections

• Recover debt and

rehabilitate customers

• Case management approach

• In-house teams for legal

processes

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Situation today and short-term focus

• Transcom’s profitability has decreased in

recent years, but is now improving

• Continuous focus on underperforming areas

• Growth in selected areas and efficiency

improvements

• Broadening client base

Market trends

• Growth driven by domestic Asia Pacific and

Latin America markets

• Diversification (geography and

business models)

Going forward - Strategic direction

• Focus on core CRM business

• Creation of outstanding customer

experiences, while helping clients to reduce

cost and drive growth

• Flexibility is critical

EBIT margin has declined since 2007, but the negative

trend reversed in 2012

Transcom turnaround

599.2

631.8

560.2

589.1

554.1

605.6

653.2

2007 2008 2009 2010 2011 2012 2013

6.0%

4.4%

2.2%

0.7%

1.5%

2.7%

4.3%

Revenue (€m)

Operating margin*

* Underlying performance, excluding restructuring and other non-

recurring costs* Excluding non-recurring items.

Our performance in Q4 2013 and FY 2013

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Revenue in 2013 increased by 7.9% compared to 2012.

180.4 197.0

138.3145.8

119.4130.9

112.1122.7

55.3

56.8

2012 20139

Central &

South Europe

Iberia & Latam

North America

& Asia Pacific

North Europe

Growth

9.2%

CMS

Net revenue, 2013 vs. 2012

€m

5.5%

9.6%

9.4%

2.7%

653.2

605.6• All regions contribute to company

growth

• Net of currency effects, growth was 8.8% (9.3% in core CRM operations)

• Main driver is increasing volumes with our installed client base

Revenue in Q4 2013 decreased by 1.6% compared to Q4 2012

51.0 49.5

35.5 36.2

31.0 31.7

31.9 30.0

13.5 12.7

Q4 2012 Q4 201310

Central &

South Europe

Iberia & Latam

North America

& Asia Pacific

North Europe

Growth

-2.9%

CMS

Net revenue, Q413 vs. Q412

€m

+1.9%

+2.5%

-5.8%

-5.9%

160.2162.9 • Net of currency effects, growth was 0.5% (1.0% in core CRM operations)

• Main driver is increasing volumes with our installed client base

• Exit of non-profitable contracts in the North region impact revenue

• Decrease in North America & Asia Pacific is driven by a price decrease for one client and lower volumes in North America

EBIT 2012 Cost savings programs

Volume & efficiency Expansion costs Other EBIT 2013

EBIT, excluding non-recurring items, increased by €8.7m in 2013 compared to 2012

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8.9

+8.9

+8.1

-2.9

17.6

-5.4

EBIT 2012 Cost savings programs

Volume & efficiency Expansion costs Other EBIT 2013

EBIT, excluding non-recurring items, increased by €2.3m in Q4 2013 compared to Q4 2012

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2.0

+2.2 +0.1 1.1 4.3-1.1

EBIT margin* increase in FY 2013 driven by improvements in Central & South Europe and CMS

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FY 2013 FY 2012

EBIT margin*

North Europe

Central & South Europe

Iberia & Latam

North America & AP

CRM

CMS

Total

2.5%

2.9%

2.8%

-1.2%

1.9%

10.9%

2.7%

3.7%

-3.8%

4.6%

0.2%

1.3%

3.5%

1.5%

* Excluding non-recurring items

• North Europe: Costs for closing the Norrköping

site and the CRM operations in Denmark.

Temporarily higher costs due to volume ramp-up

in Norway and Sweden. New sites in Oslo,

Norway and Umeå, Sweden increased costs.

• Central & South Europe: Higher volumes,

increased offshore delivery, and deconsolidation

of former French subsidiary.

• Iberia & Latam: Costs due to expansion in Spain

and Latam, and closure of site in Valdivia, Chile.

Lower volumes and efficiency in Chile.

• North America & Asia Pacific: Lower volumes

delivered onshore in North America, price

decrease on one account.

• CMS: Revenue increase and lowered production

and overhead costs

EBIT margin* increase in Q4 2013 driven by improvements in Central & South Europe and CMS

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• North Europe: Costs for closing the Norrköping

site, and temporarily higher costs due to ramp-up

in Sweden and Norway

• Central & South Europe: Higher volumes and

increased offshore delivery, improved efficiency

in Germany, and deconsolidation of former

French subsidiary

• Iberia & Latam: Costs due to expansion in Spain

and Latam, build-up of site in Colombia, and

closure of site in Valdivia, Chile. Lower volumes

and efficiency in Chile.

• North America & Asia Pacific: Lower volumes

delivered onshore in North America, price

decrease on one account.

• CMS: Lowered production and overhead costs

2013

Oct-Dec

2012

Oct-Dec

EBIT margin*

North Europe

Central & South Europe

Iberia & Latam

North America & AP

CRM

CMS

Total

3.3%

4.8%

3.1%

-4.6%

2.0%

10.2%

2.7%

4.8%

-2.9%

4.9%

-2.3%

1.5%

-1.2%

1.2%

* Excluding non-recurring items

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

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

Successfully resolve tax claims

Increase onshore seat utilization in North America

Improve operational performance in Latin America

Lower corporate costs

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

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

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Key performance

driver

Trend vs. Q4 2012 Q4 2013 vs. Q4 2012

Average Seat

Utilization ratio

(85% vs. 87%)

Share of revenue

generated offshore

(22% vs. 16%)

Average Efficiency

ratio (billable over

worked hours)

n/a (positive development)

Monthly staff

attrition

n/a (slight decrease in

attrition)

Improvements on four KPIs vs. previous year

Continue improving key performance indicators

• Seat utilization

• Efficiency

• Offshore/onshore split

• Attrition

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65.071.0

75.980.7

86.391.1

94.6 94.4

11.917.2

32.138.1

59.3 56.7

49.7

36.2

0.00

0.50

1.00

1.50

2.00

2.50

3.00

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413

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

• Gross debt stable compared to the Q313 level

• Net Debt decreased by €13.5m compared to the Q313 level

• Net Debt/EBITDA ratio: 1.40 (1.93 in Q313)

• Financial cost €1.3m (€2.0m in Q313)

Debt & leveraging

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Going forward– Transcom’s strategic direction

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Transcom’s brand promise

Outstanding Customer

Experience, driving

revenue and brand

loyalty

”

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Short-term focus

• Executing turnaround in underperforming areas

• Revenue expansion and efficiency improvements

• Quality and service delivery

Medium-to long-term priorities

• Grow revenue at least in line with overall market growth in the markets where we choose to compete

• Improve profitability and decrease earnings volatility

- Continuously strengthen operational

efficiency

- Optimizing our geographic delivery mix

- Focus on broadening our client base

Growth opportunities and key priorities going forward

North America and Asia Pacific

• Continue expanding in local markets in Asia Pacific

• Expand onshore volumes in North America

Latin America

• Serving domestic markets and the US, in addition to Spanish clients

North Europe

• Leverage strong position in home market

Central Europe

• Primarily near shore opportunities

• Strong capability in expanding Eastern European markets

Growth opportunities Key priorities

Welcome to Transcom’s mid-quarter and CSR update on March 5 in Stockholm, for investors, equity analysts, ESG analysts and journalists

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• Update on Transcom’s performance and important focus areas going forward, including the company’s CSR activities, which form an integral part of our day-to-day business activities

• Ethos International will present the results from our recent stakeholder dialogues

• 12:00-13:30 lunch meeting at Summit, Hitechbuilding, Sveavägen 9, Stockholm, floor 17

• R.S.V.P. to Frida Åsander by March 3, 2014:Email frida.asander@transcom.com or call +46 73 964 33 03

Thank you!

Questions?