Q1 2018 Presentation May 30 2018 Outstanding Customer Experience - PowerPoint PPT Presentation

Q1 2018 Presentation May 30 2018 Outstanding Customer Experience Strictly private and confidential

Agenda 1 Presenters 3 2 Company overview 5 3 Financial performance 10 4 Summary 21 5 Appendix 23 2

Presenters 1 .

Today’s presenters Michael Weinreich Leif Mårtensson Mattias Holmström Chief Executive Officer Chief Financial Officer Altor, Director   Transcom since Transcom since August  Board member of: September 2017 2017 ‒ Transcom ‒ BTI Studios   Previous roles: Previous roles: ‒ Meltwater ‒ VC Partner, FinLeap ‒ CFO, Hilding Anders ‒ NorthStar Group (2016 – 2017) Group (2014 – 2017) ‒ CEO, Arvato Financial ‒ CFO, Arjo Huntleigh,  Altor since 2011 Services (2009 – 2016) Getinge Group (2009 – 2014)  Previous roles: ‒ Senior Consultant, Booz & Co (2010 – 2011) 4

Company overview 2 .

A Nordic outsourced contact centre champion with a global footprint Full service offering in 33 languages in 45 sites across 20 countries Transcom introduction in numbers Global footprint and service offering Privately owned since 1.5m+ Offering services in 2017 45 Fredrikstad Sweden (HQ) Groningen Altor, a Nordic private Tallinn Leeds Riga equity firm, full owner as of Customers served daily on Lithuania April 2017 contact centres Portugal Poland Transcom implemented North America: Germany worldwide; On-shore, Work At Home Agents campaigns Budapest 572 €M Spain near-Shore, off- Belgrade Tunisia Croatia shore, plus Work-at- Manila EDSA Italy Manila Pasig Home agents LTM Q1 2018 Sales Iloilo 26,500 Bacolod Boni 200+ Languages 33 spoken in our Concepcion customer Transcom serving a broad service set of international clients Employees in 20 countries delivery around the globe centres Key financials 1) Sales breakdown 2) 3) Sales by segment Sales by client vertical 627 4% 617 586 584 6% 572 1% 2% 5% 31% 30% 507 506 502 496 8% 477 13% 6,5% 6,7% 5,3% 5,2% 5,3% 68% 17% 15% Telecom 2014A 2015A 2016A 2017A 2018LTM English Speaking Cable Retail Tele2 contract Banking Transportation Europe Sales from discontinued/divested operations Gov & Healthcare Media Sales adj. for Tele2 and discontinued/divested operations Latin America Tech Other Adj. EBITDA margin Note: 2014–2016 figures represents consolidated TWW accounts adjusted for EO items and D&A, FY 2017 is consolidated at Issuer level, adjusted for EO items and D&A and full year adjusted for the acquisitions of TWW and GVP Communication AB (Xzakt). 1) Group total sales growth adjusted for discontinued/divested operations and Tele2 contract , Adj. EBITDA margin calculated as Adj. EBITDA/Total 6 sales, 2) Sales by geography is 2018 LTM, 3) client vertical is per 2017 and including Xzakt.

Transcom offers outsourced customer relationship management (1/2) Clients benefit from improved cost structure and top of the line customer management We help our clients in the contact with their clients with any requests, support need or other need of communications… …through a variety of channels… …with support of more than 22,000 well trained agents Supported by high tech systems Supported by high tech systems Call Chat Click-to-call Postal mail Social E-mail SMS Face-to-face @ sms Majority of calls and requests are completely handled by Transcom’s agents, minimising the degree of involvement from end client 7

Transcom offers outsourced customer relationship management (2/2) Clients benefit from improved cost structure and top of the line customer management Transcom’s services are integrated into the clients’ operations Integrated into the client Technically trained Well updated and prepared Up-sell, cross-sell and retention systems     On a technical query on your Transcom agents are aware of If you call to ask about a delivery To boost up-sell, cross-sell and installation of your new changes to client’s product of a package, the Transcom retention, agents are incentivised broadband, the agent will be able offering (e.g. product launches or agent will be able to access its by KPIs set by the client. Should to answer any of your most price increases) and therefore client’s systems and provide live a customer call to terminate a common questions. If not, you prepared how to handle any information about your request contract, there are pre-agreed will be transferred to a more questions. deals that the agent can offer senior Transcom agent     8

Key Highlights Quarter 1 2018 Positive signals from market and clients on the path chosen by Transcom Client Centric  Client centric organization implemented with increased customer focus as a result organization  First positive results already realized (+150 Agents in Iloilo, +350 Home agents in US)  Substantial potential for increased volume in 2019 (> +1000 Agents in Europe) implemented  Sizeable tenders and RFQs in attractive verticals like tech, logistics and e-commerce Improved industry  New sites will be opened in Europe and Philippines during 2018 to serve current customer expansion sector focus  The wind down of the Telenor business in Sweden is progressing Acquisitions  Well progressed discussions with a number of potential targets  under way Targets are in attractive verticals like Healthcare and e-commerce  External recognition (Frost & Sullivan award 2017, CEO Magazine, Dutch award for Gamification) New value propositions  Pilot with spanish bank on conversational analystics  well received Several projects for additional chat volumes in the Nordics and gamification projects in Italy 9

Continuing our journey to build platform for success… Broadly and deeply defined milestones for improved profitability and growth Client service managers (CSM) Introducing a more client CSM with end-to-end delivery of services centric model CSM with P&L ownership New Business Support SSC Moving to a leaner and Global IT more agile organization Global and digitized HR Product management Investing in innovation and forward leaning Technology for world class delivery technology Commercial capabilities . 10

Financial Performance 3 .

Financial development Solid EBITDA margin improvement proof for successful acceleration of strategic initiatives Sales and EBITDA development Summary of historical P&L EURm 2014A 2015A 2016A 2017A 2018LTM EURm 616.8 626.5 586.1 Sales 584.0 571.5 627 Cost of sales -481.9 -492.7 -458.7 -456.3 -445.8 617 586 584 572 D&A 1) -7.4 -8,9 -8.0 -8.2 -7.9 Gross profit 127.6 125.0 119.4 119.5 117.9 % margin 20.7% 19.9% 20.4% 20.5% 20.6% -102.1 -101.6 -96.2 SG&A -89.5 -87.5 Adj. EBITA 25.5 23.4 23.1 30.0 30.3 % margin 4.1% 3.7% 3.9% 5.1% 5.3% 32.9 32.3 31.2 Adj. EBITDA 38.2 38.2 6,7% 6,5% % margin 5.3% 5.2% 5.3% 6.5% 6.7% 5,3% 5,3% 5,2% Extraordinary items 2018 2014A 2015A 2016A 2017A (EURm) LTM 38 38 33 32 31 Transaction related 2.6 0.9 -3.5 9.6 10.1 EO items 2014A 2015A 2016A 2017A 2018LTM Operational EO 0.5 2.3 3.1 10.3 14.1 items 2) Sales Adj. EBITDA Adj. EBITDA % Total EO items 3.1 3.2 -0.5 20.0 24.2  Sales down since 2015 due to discontinued/divested services and purposely discontinued relationship with Lombardia of EUR 22.2m due to terms of contract not attractive enough  The headwind within Nordic telecom has been partly mitigated by increased sales from both new and existing clients  Costs trending down as a result of initiated cost savings program  EBITDA improvement in 2017 thanks to efficiency improvement actions being realised with more improvements to come in the following quarters 1) M&A amortisation not included in D&A. 2) Costs for consultancy transformation support was included as transactional in 2017 but moved to operational in 2018 since the consultants are supporting the cost saving program PPP. 12

NWC development Net working capital trending down as share of sales Quarterly Net Working Capital EURm 200 7.5% 6.3% 6.9% 5.3% 6.5% 3.4% 5.4% 4.8% 4.9% 3.0% 5.4% 5.3% 6.1% 4.0% 4.3% 4.7% 5.4% 150 100 50 0 -50 -100 -150 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Trade receivables Trade payables Prepaid expenses and accrued income Accrued expenses and prepaid income Other receivables - Current Other liabilities - Current Net Working capital % NWC as % of LTM Sales  Working capital relatively stable over time with some seasonal variations. Q1 is typically the highest quarter in terms of NWC as % of sales.  Movements between quarters are mainly referring to timing effects of collections Note: 2014–2016 figures represents consolidated TWW accounts, 2017 -2018 figures are consolidated at Issuer level. Q2,Q3 ,Q4 2017 and 2018 include the acquisition of GVP Communication AB (Xzakt). 13