Q2 2020Presentation

July 21, 2020

Today’s presenter

Jonas DahlbergPresident & Chief Executive OfficerTranscom since June 2019

Previous roles:• CFO, Transcom Holding AB (2019-2020)• CFO, Sweco Group (2012 – 2019)• President, Sweco Russia (2008 – 2012)• Associate Principal, McKinsey (1998 – 2008)

2

Agenda

• Q2 highlights• Company and strategy• Financial performance• Summary

Q2 highlights

• Strong quarter in the midst of the pandemic – Revenue from continuing business +11%, EBITDA excl NRI +19%

• Transcom more relevant than ever – Strong demand and continued inflow of new contracts from new and existing clients

• Resilience based on WAH, digital solutions and diversified footprint – 60% of workforce WAH during Q2

• Production bottlenecks and COVID-related NRIs tampering off from June – Positive outlook for H2, provided no major COVID resurgence

• Transcom standing stronger than before – Going for profitable growth through client focus and operational excellence, driven by great culture and leadership

4

Company and strategy

Utilities BFSI Gov &Health-

care

Media Travel

What we do: outsourced customer relationship management

We are a global customer care provider offering future proof customer facing

concepts delivered by our global team of local specialists…

…supporting our clients’ digital agenda by combining our core services with

leading digital capabilities and tools…

…delivering services in 33 languages to international brands in various

industries

Core services

Conversational commerce

Digital channels

Robotic Process

Automation

Interaction Analytics

Chatbots

Gamification

Call Chat Email

26,000customer experience specialists

serving customers via

Services & utilities

Commerce & Logistics

Auto-motive

Logistics Retail/ e-commerce

IT/Tech White-goods

Telco & Cable

Social media MessagingTelco Cable

6

Serving Western Europe and Global English markets from four continents

7

Europe Global English

Markets• Delivery across

Europe• 33 languages

• US• UK• Philippines

Delivery model

• On-shore in 8 countries

• Near- /off-shore from 10 countries

• Off-shore from the Philippines

• Work-at-home in the US and Canada

Share of total revenueQ2 2020 LTM

67%33% Europe

Global English

Site locations Serviced geographies

Digital solutions• Increased productivity & business resilience

• Improved customer experience

• Increased sales conversion

Diversified footprint• Flexibility and scalability from more sites

• De-risked footprint - clients’ and Transcom

• Larger talent pool and sourcing capabilities

Work at Home flexibility• Increased business resilience

• Increased business agility & flexibility

• Larger talent pool and sourcing capabilities

Transcom’s resilience is based on WAH, digital solutions and a diversified footprint

8

Transcom is growing in attractive customer segments

9 Note: On July 27, 2018, the group acquired Awesome OS which has been consolidated from this date. 2019 includes Latin America until Feb 2019 (0.9M Sales and -0.1M EBITA). Adj. EBITDA% per industry includes allocation of unallocated/group-wide expenses.

Developments during the quarter

6.8%

6.5%

14.6%

EBITDA Q2 2020 LTM

Revenue by industry segment, MEUR

130 155 169

206208 188

208 179 175

Q2 2020LTM

2018

Telco & Cable

2019

Service & Utilities

Commerce & Logistics

544 541 532

• Strong demand in commerce and logistics from existing clients

• Continued intake of new contracts, of which some COVID-driven

• COVID-driven delays of tenders and ramp-ups of new contracts

• Travel and hospitality subsegment at standstill (<1% of Transcom revenue)

Next phase is about profitable growth – Achieving double digit margins and solid organic growth

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Client focus Operational excellence Culture and leadership• Leadership for people performance

• Clear, decentralized accountability and lean OH

• Culture of client and customer centricity

• Operational performance management

• Best practices for productivity, recruiting, retention and workplace presence

• Client-by-client improvement approach

• Strengthen market presence in North America

• Accelerate sales in Europe

• Develop and protect existing clients

Financial performance

Strong quarter in the midst of COVID-19

• Strong revenue growth in continuing business– Revenue 132.2 MEUR (134.0)– 11% growth, adjusted for INPS exit and divestiture in Spain

• Q2 EBITDA ex NRI +19%– 11.5 MEUR, +1.8 MEUR– 8.7%, +1.5pp

• NRI: -7.2 MEUR (-3.1)

• Net debt/EBITDA 4.5x (Mar 2020: 4.2x) 1)

12 1) Net debt / EBITDA 2020 calculated in line with the definition of Leverage Ratio in the terms and conditions of the outstanding senior secured notes based on an EBITDA of EUR 45.6m (not including non-recurring items in excess of 15% of EBITDA) and Net Interest Bearing Debt of EUR 206.4m (excluding Subordinated Loans and pension liabilities)

Strong EBITDA and growth on top line, adjusting for last year divested and exited business

13 1) 2016 figures represents consolidated TWW accounts, 2017-2018 is consolidated at Issuer level, and adjusted for the acquisitions of TWW and Xzakt group. On July 27, 2018, the group acquired Awesome OS which has been consolidated from this date. 2019 and onwards are fully including recording of IFRS 16 Leases, no retroactive calculation done for comparison periods.

2) M&A amortization not included in D&A.

586 584544 541 532

31 38 39 49 49

5,3%6,5%

7,2%

9,0% 9,2%

2016A 2017A 2018A 2019A 2020LTM

EURm

Sales Adj. EBITDA excl IFRS 16Adj. EBITDA excl IFRS 16 %

(11.9%)

Sales and EBITDA development 1) Summary of historical P&L 1)

EURm 2016 2017 2018 2019 2020 LTM

2019 Q2 YTD

2020 Q2 YTD

2019 Q2

2020 Q2

Sales 586.1 584.0 543.6 541.5 532.3 269.1 260.0 134.0 132.2

Cost of sales -458.7 -456.3 -419.3 -399.3 -387.1 -202.0 -189.9 -101.5 -96.2

D&A2) -8.0 -8.2 -7.7 -10.9 -12.1 -4.5 -5.7 -2.4 -2.8

D&A leasing -0.4 -0.4 -0.2 -0.2 -0.0 -0.1

Gross profit 119.4 119.5 116.7 130.9 132.8 62.5 64.3 30.0 33.2

% margin 20.4% 20.5% 21.5% 24.2% 24.9% 23.2% 24.7% 22.4% 25.1%

SG&A -96.2 -89.5 -85.1 -79.3 -82.1 -38.8 -41.6 -20.2 -21.3

D&A leasing -12.5 -12.5 -6.0 -6.0 -2.1 -2.8

Adj. EBITA 1) 23.1 30.0 31.6 39.0 38.2 17.6 16.7 7.8 9.0

% margin 3.9% 5.1% 5.8% 7.2% 7.2% 6.6% 6.4% 5.8% 6.8%

Adj. EBITDA 1) 62.8 63.1 28.3 28.5 12.2 14.7

% margin 11.6% 11.9% 10.5% 11.0% 9.1% 11.1%

Adj. EBITDA excl. IFRS 16 31.2 38.2 39.4 48.8 48.9 21.6 21.6 9.7 11.5

% margin 5.3% 6.5% 7.2% 9.0% 9.2% 8.0% 8.3% 7.2% 8.7%

NRI increasing due to COVID and accelerated transformation efforts

Non-recurring items, EUR millionsLTMBy quarter

Q2 NRI EUR -7.2 million

• Of which -3.6 relating to COVID business continuity cost

• Of which -3.0 relating to Transcom’s operational and commercial transformation

• Of which EUR -0.5 million transactional

NRI totaled EUR 13.2 million for 2020 LTM

Note: FY 2017 is consolidated at Issuer level and full year adjusted for the acquisitions of TWW group and Xzakt group. 14

0

5

10

15

20

25

30

35

40

45

50

16.6

2.2

37.3

7.2

Q2 2017

7.0 6.0

Q1 2017

9.5

Q3 2017

20.0

3.5

Q4 2017

23.8

Q1 2018

34.5

20.6

Q4 2018

4.3

Q2 2018

34.4

Q3 2018

3.6 4.0

32.5

Q2 2019

Q1 2019

15.0

3.12.2

Q3 2019

0.8

11.5

0.5

8.4

Q4 2019

1.6

Q1 2020

6.0

Q2 2020

10.1

7.2

Solid cash flow in the quarter

• Q2 operating cash flow amounted to EUR 13.6 million (4.6)

• Q2 working capital change amounted to EUR 6.2 million (-7.2)

• Working capital developing positively – Partly swing of temporary nature, partly tax deferrals enabled by government support programs

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EURm 2019Jan – Dec

2019 Q2 YTD

2020 Q2 YTD

2019 Q2

2020 Q2

Profit/loss before tax 2,143 -3,345 -7,855 -2,437 -6,932

Adjustments for non cash items 33,429 19,220 16,887 12,009 8,817

Net financial items 17,565 8,429 10,373 4,388 6,081

Income taxes paid -7,456 -2,834 -642 -2,171 -516

Changes in working capital 5,684 -3,819 2,160 -7,216 6,157

Operating cash flow 51,366 17,651 20,924 4,573 13,606

Investments -16,522 -5,182 -6,950 -2,837 -3,807

Acquisitions/disposals of business, net of cash -1,101 5,936 -6,781 6,540 -6,781

Other -560 -84 -3 9 -29

Cash flow from investing activities -18,183 670 -13,733 3,712 -10,617

Cash flow from financing activities -32,055 -7,120 -12,123 -4,880 -10,881

Cash flow for the period 1,127 11,201 -4,933 3,405 -7,892

Q2 working capital slightly lower

Note: 2016 figures represents consolidated TWW accounts, 2017-2018 figures are consolidated at Issuer level. Q2 2017 and onwards includes the acquisition of Xzakt group.Q3 2018 and onwards, includes the acquisition of Awesome group.

EUR millions

16

-120-100

-80-60-40-20

020406080

100120140160

6,5

8,5

3,5

0,0

3,0

0,5

7,57,0

1,5

5,0

1,0

8,0

5,5

2,0

6,0

2,5

4,04,5

4.3

6.1

Q3 2018

Q4 2018

Q2 2016

5.4

Q4 2017

Q1 2017

Q1 2019

Q2 2019

6.3

5.3

24

4.7

4.9

Q1 2016

3.0

Q3 2016

Q4 2016

4.0

Q2 2017

Q3 2017

Q1 2018

6.45.5

18

Q2 2018

5.3 5.5

30 31 31 26 27 31 22 29 34 25 3036

NWC %

Prepaid expenses and accrued income

Trade receivables

Trade payables

Other receivables - Current

Accrued expenses and prepaid income

Other liabilities - Current

6.1

33

Q3 2019

Q4 2019

5.6

30

Q1 2020

5.9

31

3.9

Q2 2020

5.2

28

Summary

• Strong quarter in the midst of the pandemic – LFL revenue +11%, EBITDA ex NRI +19%

• We are more relevant than ever – And we have a resilient delivery model

• Our priorities remain – Profitable growth through client focus and operational excellence, driven by great culture and leadership

Summary

Thank you.