Q2 2018 Presentation August 27 2018 Outstanding Customer - PowerPoint PPT Presentation

Q2 2018 Presentation August 27 2018 Outstanding Customer Experience Strictly private and confidential

Agenda 1 Presenters 3 2 Company overview 5 3 Financial performance 10 4 Summary 16 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 50 sites across 21 countries Transcom introduction in numbers Global footprint and service offering Privately owned since 1.5m+ Offering services in 2017 50 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 558 €M Spain near-Shore, off- Belgrade Tunisia Croatia shore, plus Work-at- Manila EDSA Italy Manila Pasig Home agents LTM Q2 2018 Sales Iloilo 29,000 Bacolod Boni 200+ Languages 33 spoken in our Concepcion customer Transcom serving a broad service set of international clients Employees in 21 countries delivery around the globe centres Key financials 1) Sales breakdown 2) Sales by segment Sales by client vertical 627 5% 617 586 584 5% 1% 558 2% 6% 28% 31% 507 506 496 491 477 9% 6,8% 6,5% 14% 5,3% 5,2% 5,3% 68% 16% 15% Telecom 2014A 2015A 2016A 2017A 2018LTM Q2 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. 6 EBITDA/Total sales, 2) 2018 LTM Q2

Key Highlights Quarter 2 2018 A new, strengthened Transcom taking shape  Cost reductions realized in line with People, Passion, Performance plan Transformation process  Reallocation of resources to more profitable contracts well under way  Relaunch of branding, website and employer branding in September 2018  Adding of competence in senior sales positions as well as product management to drive new revenue streams and focus on increasing footprint with current clients and building Strengthened pipeline organization  New MD in the Nordics, Pernilla Oldmark, with 20 years of experience from telecom and service industry, 19 working for Tele2  New CTO, Stefan Berg, previously VP Connected Consumer Solutions Electrolux, emphasizing our commitment to technology innovation Increased focus on  New global contract with gamification solution provider Athand innovation  Digital recruitment process rolled out in several geographies  New locations to expand Transcom’s European footprint and enhance our nearshore and multilingual services  Ca. 270 seats in Zagreb, Croatia to support predominantly German clients but Organic growth to also other languages support strategy  Ca. 100 seats in Novi Sad, Serbia (satellite site to Belgrade) to provide expansion space as well as additional sources of German language  Ramp-up of ca. 300 work at home agents in North America 7

Strengthening of nearshore capabilities by expansion to Albania • On July 31st, Transcom signed and closed an asset transfer agreement to take over a site in Durres, Albania, currently operated by Transcom’s partner. • The site in Durres has been delivering services to Transcom clients since 2013. For Transcom, taking over the site with over 500 highly qualified multilingual employees, will strengthen Transcom’s European nearshore and multilingual services. • The takeover will also strengthen Transcom’s results as well as the relationship with the served customer. 8

Adding competence within e-commerce and digital with acquisition of Awesome OS • On July 27th, Transcom signed and closed the acquisition of Awesome OS, a leading niche e- commerce customer experience specialist providing customer experience and business process solutions to leading and fast-growing US e-commerce clients from its operations in Davao, Philippines. Awesome OS has approximately 2,000 team members. A vast majority of their offerings are digital/non-voice services such as emails, chat, and back office support. • Awesome’s track record of partnering with US e-commerce companies from a very early stage, combined with Transcom’s global footprint and robust delivery models, is a great opportunity to support high growth companies through their global expansion. For Transcom, this acquisition will also strengthen our digital capabilities and increase our global focus on the e-commerce industry. • Awesome OS had revenues of 25 MUSD in 2017, and have shown very good growth over the last years, with a CAGR of 34% since 2015. The acquisition will strengthen the blended margins of the group. • The acquisition is financed by cash on the balance sheet and the issuance of an unsecured note of 10 MEUR under the general basket of permitted financial indebtedness. The seller are also investing a significant amount in Transcom. 9

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 584.0 558.0 627 Cost of sales -481.9 -492.7 -458.7 -456.3 -434.8 617 586 584 D&A 1) -7.4 -8,9 -8.0 -8.2 -7.5 558 Gross profit 127.6 125.0 119.4 119.5 115.7 % margin 20.7% 19.9% 20.4% 20.5% 20.7% -102.1 -101.6 -96.2 SG&A -89.5 -85.2 Adj. EBITA 25.5 23.4 23.1 30.0 30.4 % margin 4.1% 3.7% 3.9% 5.1% 5.5% 32.9 32.3 31.2 Adj. EBITDA 38.2 38.0 6,8% 6,5% % margin 5.3% 5.2% 5.3% 6.5% 6.8% 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 7.9 EO items 2014A 2015A 2016A 2017A 2018LTM Operational EO 0.5 2.3 3.1 10.3 29.3 items 2) Sales Adj. EBITDA Adj. EBITDA % Total EO items 3.1 3.2 -0.5 20.0 37.2  Sales down since 2015 due to discontinued/divested services and purposely discontinued businesses.  Q2 affected by final ramp-down of North American Bricks & Mortar business and ramp-down of a Nordic Telecom client.  Gross profit margin improving on the back of costs trending down as a result of initiated cost savings program and depreciation from lower capex  Continuous EBITDA improvement thanks to efficiency improvement actions being realised with more improvements to come in the following quarters  Extraordinary items affected by restructuring costs from improvement program and from reservations in Spain related to a dispute regarding social fees for consultants. 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. 11

NWC development Net working capital trending down as share of sales Quarterly Net Working Capital EURm 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% 3,9% 200 5.4% 150 100 50 0 -50 -100 -150 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 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. Q2 is typically the lowest 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). 12