Transcom: Interim report 1 January

Third quarter 2016

· Net revenue €143.7 million, a 5.3% decrease com-pared to Q3 2015 (151.8).
Organic revenue decreased by 3.3%.
· EBIT was €7.6 million (5.3), representing an EBIT margin of 5.3%, compared
to 3.5% in Q3 2015 (4.0% excluding non-recurring items).
· Net income €5.9 million (1.9).
· Operating cash flow -€7.1 million (-9.4).
· EPS 22.6 Euro cents (7.4).

January-September 2016

· Net revenue €430.9 million (469.7), a decrease of 8.3%. Organic revenue
decreased by 6.8%.
· EBIT was €14.4 million (15.9), representing an EBIT margin of 3.3% (3.4%).
EBIT excluding non-recurring items was €13.9 million (16.7), corresponding to an
EBIT margin of 3.2% (3.6%).
· Net income €8.0 million (8.4).
· Operating cash flow -€4.6 million (11.2).
· EPS 30.5 Euro cents (32.2).
· Net debt/EBITDA 0.9 (0.6).

Comments from the President and CEO

After a challenging first half of the year Transcom’s EBIT margin showed a
significant improvement in the third quarter. We have returned to a positive
momentum selling free capacity in the English-speaking markets & APAC region.

Good momentum in terms of filling unutilized capacity

While organic revenue in the quarter decreased by €5.0 million (-3.3%) compared
to the same period last year, we are enjoying a positive volume trend after a
temporary decrease in the first two quarters of the year. Our efforts to win new
business started to yield good results during the third quarter in terms of a
better utilization of available capacity. As previously disclosed, we see the
best growth opportunities in the English-speaking markets & APAC region, which
was also the main contributor to the turnaround in revenue development during
this quarter. As previously reported, we expect this positive development to
continue into the fourth quarter.

As described above, we are experiencing good momentum in terms of sales after a
temporary volume decrease in the first two quarters of the year. In our
industry, business volumes (demand for customer care support) can vary
significantly over time, both during the course of a single day and from month
to month. Maintaining a high degree of flexibility and responsiveness is
therefore critical to success. Continued growth and a broadening of our client
base will further improve our ability to manage the inherent volatility in our
business.

Strong EBIT margin improvement

Our EBIT margin improved significantly during the third quarter, from 4.0%,
excluding non-recurring items, in the same quarter last year to 5.3% this
quarter. Our Group-wide operational excellence program, with the goal of
progressing towards achieving our financial targets, was a key factor behind the
improvement in the quarter. EBIT this quarter includes the effect of a
retroactive one-time price adjustment, which added 0.4 percentage-points to the
margin.

The volume increase in the English-speaking markets & APAC region compared to
the first two quarters of the year was the main driver of increased capacity
utilization and profitability in the quarter. In addition, we have successfully
addressed low-performing units.

The realignment of our regional management structure in the Continental Europe
region is also progressing as planned. This program will yield €2.9 million in
annual cost savings and will take full effect during Q4 2016.

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
Thursday, October 20, 2016. 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.

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

This information is such that Transcom WorldWide AB (publ) is obliged to make
public pursuant to the EU Market Abuse Regulation. The information was submitted
for publication, through the agency of the contact persons set out below, at
08:00 CET on October 20, 2016.

For further information please contact:

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

Ulrik Englund, CFO +46 70
286 85 92

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 53 contact centers across 21
countries, delivering services in 33 languages to international brands in
various industry verticals. Transcom WorldWide AB’s share is listed on the
Nasdaq Stockholm Exchange under the ticker symbol TWW.

Transcom: Interim report 1 January – 30 September 2016

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