Transcom: Interim report 1 January – 31 March 2015


” Transcom’s like-for-like revenue increased in the quarter, and we also saw our
EBIT margin strengthen. Net income significantly improved compared to last
year.”

Johan Eriksson, President & CEO of Transcom

Key highlights

  · Like-for-like revenue increase by 2.4%, mainly driven by higher volumes in
the North Europe and Iberia & Latam regions
  · Profitability improvements in the North America & Asia Pacific and Iberia &
Latam regions
  · EBIT margin improved from 3.4% to 3.7%. Excluding since-divested CMS
business and a positive one-off effect in the collections business in Q1 2014,
the margin improvement was 2.1 percentage points.
  · Significant improvement in net income to €5.3 million (€1.6 million in Q1
2014)

Q1 2015 financial highlights

  · Revenue €160.9 million (€160.1 million in Q1 2014). Adjusted for exchange
rate impact and divested operations, revenue increased by 2.4%
  · Gross margin 19.6%, a 1.1 percentage point decrease compared to Q1 2014
(20.7%)
  · EBIT €5.9 million (3.7%) compared to €5.4 million (3.4%) in Q1 2014.
  · EPS 20.5 Euro cents compared to 6.2 Euro cents* in Q1 2014.
* EPS for 2014 has been adjusted to reflect the reverse split as if it had
occurred per January 2014

Comments from the President and CEO

Both like-for-like revenue and EBIT margin improved in the first quarter. We saw
higher business volumes in the North Europe and Iberia & Latam regions, while
the profitability improvement was mainly driven by better performance in the
North America & Asia Pacific and Iberia & Latam regions. We report a significant
improvement in net income compared to last year.
LIKE-FOR-LIKE 2.4% REVENUE INCREASE

On a like-for-like basis, adjusting for divestments and currency effects,
revenue increased by €3.8 million (+2.4%).  This growth was mainly generated by
increased business volumes in North Europe and Iberia & Latam.

EBIT MARGIN IMPROVEMENT

Transcom’s EBIT margin in the quarter was 3.7% compared to 3.4% in Q1 2014 (1.6%
excluding since-divested CMS business and a one-off effect in the collections
business). Performance improvements in the North America & Asia Pacific and
Iberia & Latam regions contributed positively. Profitability in the North region
was flat, while we saw a decrease in the EBIT margin in the Central & South
Europe region, mainly as a result of lower volumes in Italy and the start-up of
new client projects in the region during the quarter.

Net income improved significantly, to €5.3 million in Q1 2015 from €1.6 million
in Q1 2014, as a result of decreased income tax and an improvement in net
financial items.

FOCUS ON OUR STRATEGIC PRIORITIES

Transcom’s strategic priorities are informed by our vision of being recognized
as a global leader in customer experience.

We aim to grow together with our clients, further strengthening Transcom’s
position as a strategic partner, while also seeking to strengthen Transcom’s
global footprint. Transcom is currently starting up new projects with a number
of clients, not least with existing clients with whom we are growing in new
geographies. In this context, I am very pleased that Frost & Sullivan recently
recognized Transcom’s growth in Peru and the Philippines by awarding us the Peru
Frost & Sullivan Award for Growth Excellence Leadership, as well as the Frost &
Sullivan Philippines Contact Center Outsourcing Growth Excellence Leadership
Award.

We are also striving to continuously improve our service offering, focusing on
advanced, value-added services. I am delighted that Frost & Sullivan has
recognized Transcom in the innovation area as well. On April 13, it was
announced that Transcom has won the 2015 European Frost & Sullivan Award for
Visionary Innovation Leadership. This award is presented every year to a company
that has demonstrated the understanding to leverage global Mega Trends and
integrate the vision into processes to achieve strategic excellence.

Finally, it is important that we ensure that Transcom has a competitive
operational platform, i.e. that our global business operations are efficient and
effective. In 2015, we will focus on driving margins through maximizing our
process and technology scalability, not least by increasing the degree of
process and system standardization across our global operations. Pär
Christiansen, our current CFO, will have a key role in this context, as he
transitions into his new role as COO in June. Our new CFO, Ulrik Englund, will
start his position at Transcom on June 15.

Johan Eriksson, President and CEO of Transcom

The interim report is also available for download on www.transcom.com

Results Conference Call and Webcast

Transcom will host a conference call at 10:30am CET (09:30am UK time) on
Tuesday, April 21, 2014. The conference call will be held in English and will
also be available as webcast on Transcom’s website, www.transcom.com.

Dial-in information

To ensure that you are connected to the conference call, please dial in a few
minutes before the start in order to register your attendance. No pass code is
required.

Sweden: +46 8 505 564 74

UK: +44 203 364 5374

US: +1 855 753 2230

For a replay of the results conference call, please visit www.transcom.com to
view the recorded webcast of the event.

--------------------

Transcom WorldWide AB (publ) discloses the information provided herein pursuant
to the Securities Market Act and/or the Financial Instruments Trading Act. The
information was submitted for publication on April 21, 2015 at 08:00 AM CET.

For further information please contact:

Johan Eriksson, President and CEO                                     +46 70 776
80 22

Pär Christiansen, CFO
 +46 70 776 80 16

Stefan Pettersson, Head of Group Communications            +46 70 776 80 88
About Transcom

Transcom (http://www.transcom.com/) is a global customer experience specialist,
providing customer care, sales, technical support and collections services
through our extensive network of contact centers and work-at-home agents. We are
30,000 customer experience specialists at 54 contact centers across 23
countries, delivering services in 33 languages to over 400 international brands
in various industry verticals. Transcom WorldWide AB’s share is listed on the
Nasdaq Stockholm Exchange under the ticker symbol TWW.

Attachments

04207919.pdf