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Transcom 2013 Annual Report
Transcom 2013 Annual Report
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Transcom Mid Quarter and CSR Update



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Presentation from Transcom's Mid Quarter and CSR Update held in Stockholm March 6, 2014.

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Transcom Mid Quarter and CSR Update

  1. 1. March 5, 2013 Transcom Mid-quarter and CSR update Johan Eriksson, President & CEO Stefan Pettersson, Head of Group Communications Malin Lindfors Speace (Ethos International) Outstanding Customer Experience
  2. 2. Agenda 1. Mid-quarter update 2. Transcom Cares – background and focus areas 3. Stakeholder dialogue – presentation of results (Ethos International) 4. CSR objectives going forward 5. Supply Chain Management (Ethos International) 2 6. Q & A
  3. 3. Mid-quarter update 1 Outstanding Customer Experience
  4. 4. What is Transcom? • A global customer experience specialist... • ...providing outsourced customer care, sales, technical support, and credit management... • ...through an extensive network of contact centers and work-at-home agents 4 ” Transcom’s business is to help make sure that our clients’ customers form positive perceptions of their interactions with them.
  5. 5. Transcom in numbers • 29,000 people… • …representing more than 100 nationalities • 62 contact centers, onshore, off-shore and near shore… • • • • • …in 26 countries Delivering services in 33 languages... over 400 clients in various industry verticals €653.2 million revenue in 2013 Market cap: SEK 1,525.8 million as at December 30, 2013. Listed on NASDAQ OMX Stockholm (TWW SDB B and TWW SDB A) 29000100622633400 5
  6. 6. We have an extensive global footprint Domestic markets Near Shore Locations Offshore Locations  Austria  Netherlands  Slovakia  UK  Germany  Norway  Spain  Australia  Canada  Croatia  Estonia  Latvia  Czech Republic  Hungary  Lithuania  Serbia  Chile*  Peru*  Colombia*  Philippines*  Tunisia 6  Czech Republic  USA  Canada  Italy  Poland  Sweden  Denmark  Portugal  Switzerland  Croatia * Developing into domestic/near shore markets
  7. 7. During 2013, we continued to focus hard on enhancing Transcom’s performance Positive progress on turnaround Revenue (€m) Operating margin* 653.2 631.8 • Growth in selected areas and efficiency improvements 605.6 599.2 589.1 6.0% 560.2 4.4% 554.1 4.3% 2.7% 2.2% 1.5% 0.7% 2007 2008 2009 2010 2011 * Underlying performance, excluding restructuring and other non* Excluding non-recurring items. recurring costs 7 • Continuous focus on underperforming areas 2012 2013 • Broadening client base
  8. 8. Debt & leveraging Gross debt (€ m) Net debt (€ m) Net debt/EBITDA 100.0 86.3 90.0 80.0 71.0 70.0 75.9 91.1 94.6 94.4 80.7 2.50 65.0 59.3 60.0 2.00 56.7 49.7 1.50 50.0 38.1 40.0 36.2 32.1 1.00 30.0 20.0 11.9 3.00 17.2 0.50 10.0 0.00 0.0 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 • Gross debt stable compared to the Q313 level • Net Debt decreased by €13.5m compared to the Q313 level • Net Debt/EBITDA ratio: 1.40 (1.93 in Q313) • Financial cost €1.3m (€2.0m in Q313) 8
  9. 9. We have improved against the most important operational KPIs Continue improving key performance indicators • Seat utilization • Efficiency • Offshore/onshore split • Attrition Improvements on four KPIs vs. previous year Key performance driver Trend vs. 2012 2013 vs. 2012 Average Seat Utilization ratio Share of revenue generated offshore (22% vs. 20%) Average Efficiency ratio (billable over worked hours) n/a (positive development) Monthly staff attrition 9 (87% vs. 85%) n/a (stable)
  10. 10. In addition, we resolved a number of short-term challenges in 2013, which had weighed on our results Stop the losses in France (€1m/month in 2012). Successfully resolve tax claims Lower corporate costs 10
  11. 11. Key priorities in 2014 • Increase onshore seat utilization in North America • Increase focus and accountability • Focus on creating opportunities for profitable growth, also expanding onshore footprint • Improve operational performance in the North Europe region • We have ended a number of unprofitable client contracts • Greater financial predictability through the implementation of a new agreement with one of our largest clients • Improve operational performance in Latin America • Higher costs due to ramp-down in Chile while simultaneously ramping up in Colombia • Presence in Colombia will support strategy to expand in fast-growing Latin American markets 11
  12. 12. Transcom’s long-term strategic priorities are informed by these important trends What we are seeing… More channels and increasing complexity • • • Rising interaction volumes with an increasingly sophisticated customer base Social networks are emerging as important customer channels Increasing product complexity Business Focus • While price is still an issue, more and more, the focus is on generating revenue – upsell/cross-sell and customer retention – and customer loyalty Market • • Stagnant growth in mature, Western outsourcing markets Significantly higher growth in emerging markets, particularly APAC and Latin America Transcom is responding by… • • • Developing integrated channel competencies Providing more insight due to increasing customer demands Developing analytic platforms and KPIs specific to customer service via non-voice channels • Sourcing, training and retaining the best agents to deliver higher levels of customer service • Seeking to capitalize on domestic opportunities in developing markets to drive growth and diversify revenue Developing traditional offshore locations as delivery centers Increasing focus on community engagement • •
  13. 13. Transcom Cares – background and focus areas 2 Outstanding Customer Experience
  14. 14. 14
  15. 15. Starting in November 2013, Transcom Cares is a global program 15
  16. 16. Transcom Cares focus areas Starting in November 2013, Transcom Cares is our global CSR governance program. We have three prioritized focus areas: People development To be recognized as a responsible employer, attracting people and strengthening our brand in all our local markets. Equality and diversity We strive for gender equality on all levels, and are dedicated to show that equal opportunity employment is part of our DNA. Community engagement Many of our community engagement activities depend on our employees’ passion to contribute their time and energy, making us all proud to work at Transcom. 16
  17. 17. 3. Stakeholder dialogue – presentation of results Ethos International 3 Outstanding Customer Experience
  18. 18. Materiality process • Materiality analysis is used to prioritise focus areas • Based on significant economic, environmental and social impacts; and • Influence on assessments and decisions of stakeholders The process Strategic Ranking of aspects Aspects Materiality Operational Aspects in Supply Chain Materiality Targets E.g. No human right incident in acquired business Actions Follow-up E.g. Human Rights Due Diligence according to Ruggie’s principles KPIs based on ranking of aspects For each aspect there are KPIs to use for follow-up on progress and to report on Communication Sustainability report GRI COP
  19. 19. Materiality result Economic A. Be transparent with financial reporting High B. emerging markets F D. Source from local suppliers A E. M I N Ensure high degree of customer satisfaction G. Have a great customer experience brand L J Ensure a sustainable supply chain F. O External Work proactively with anticorruption C. Conduct sustainability risk assessments on Social and Environmental B H. Strengthen our commitment to community G engagement E K C I. Uphold freedom of association and right to collective bargaining for employees J. H practices D P Have fair and transparent recruitment K. Recruit from the local communities L. Be an equal opportunity employer M. Provide continuous training for employees N. Focus on health and safety management for employees Low O. Focus on fair working conditions for employees Low Internal G F Internal rating in progress results not available yet High P. Reduce our CO2 emissions
  20. 20. Most important aspects in each stakeholder group • Clients Provide continuous training for employees • Be transparent with financial reporting • Have fair and transparent recruitment practices Provide continuous training for employees • Focus on fair working conditions for employees • Ensure high degree of customer satisfaction Focus on health and safety management for employees • Be transparent with financial reporting • Focus on fair working conditions for employees • Be an equal opportunity employer Focus on fair working conditions for employees • Uphold freedom of association and right to collective bargaining • Ensure high degree of customer satisfaction • ESG analysts Work proactively with anticorruption • Equity analysts • • Investors Be transparent with financial reporting • Owners • • Employees Be an equal opportunity employer Have fair and transparent recruitment practices • Be an equal opportunity employer • Focus on fair working conditions for employees
  21. 21. 21 Truly a people’s business Outstanding Customer Experience
  22. 22. Transcom is an important employer for young people We employ ~20,000 people every year, a majority of whom are young people At Transcom, they gain excellent skills in communication and sales 22 For many young people, Transcom is their first job It is our duty as an employer to empower and coach our people
  23. 23. >85% of Transcom’s managers are recruited internally Country Manager Contact Center Manager Business Manager Team Leader Agent 23 Support functions: –IT –Quality –Operations –HR –Finance
  24. 24. Many of our senior leaders started out as agents or in junior support roles Juan Brun, Spain First job at Transcom? Started as team leader in July 2002 Current position? Operations Director for Iberia & Latam Region (2010) What do you like the most about a career at Transcom? ”To be able to work with committed and talented people as our people makes the difference in our business, they are the engine of the company” Øistein Lund, Norway First job at Transcom? Started as agent in 1997 Current position? Contact Center Manager Norway (2006) What do you like the most about a career at Transcom? ”The possibility to continuously take on new challenges as the career path is evolving. For me it has been a great experience to be part of the Transcom Norway journey from the beginning in 1997. Dyne del Rosario-Tubbs, Philippines First job at Transcom? Started as Quality Assurance Specialist in April 2006 Current position? Senior Client Operations Manager (2013) What do you like the most about a career at Transcom? ”I was given the opportunity to test the waters in different departments enabling me to find out where I would like to build a career. Transcom has always been good at looking after me and addressing my concerns.”
  25. 25. CSR objectives going forward 4 Outstanding Customer Experience
  26. 26. 26 What we have done People Development Equality and Diversity Community Engagement • >85% of managers recruited internally – a true career for young people • Employment of disabled people, for example in the Netherlands, Germany, Spain, and Chile • On-site child care centers, pharmacies, and employee microloans are some activities supporting our employees in the Philippines • Learn as we go – role models and mentors support our young leaders on their road to success • Caring managers – 90% of employees feel they get support from their manager • Extensive training programs and talent management programs in place or to be launched • Women make up 61% of our workforce, but 39% of managerial employees – we need to empower and facilitate a more equal distribution • Diversity of cultures and languages is key to our service delivery, e.g. in our multilingual centers • Supporting the local communities in the cities or countries we are operating in – via charity organizations or direct involvement • Activities to aid poor people in Latin American countries and Asia
  27. 27. 27 Our objectives going forward People Development Equality and Diversity • Launch of a global Talent Management program in April 2014 • Gender distribution manager ratio reflecting our gender distribution for the total workforce • Global management training program for managers at all levels • Attrition ratio in line with market levels • Diversity – more proactive management and followup Community Engagement • Transcom Cares program launched globally in 2013 • Activities will continue to be initiated and driven by employees, supported by Transcom
  28. 28. Transcom is a signatory of UN Global Compact Transcom fully supports the ten principles of the UN Global Compact with respect to human rights, labor rights, environmental care and anticorruption work. These principles are an integral part of our corporate strategy, business culture and day-to-day operations. Policies and Codes of Conduct Code of Business Conduct • Ethical practices adopted across our company and the standards to which our people are expected to aspire. • Action plan: All employees are obliged to sign the Code of Conduct and we also conduct traning sessions every year. 28 Supplier Code of Business Conduct • Standards to which our suppliers and partners are expected to adhere. • Action plan: Supplier selfassessments and evaluation conducted by Ethos during Q1 2014. Environmental Policy • Our commitment to a responsible approach to reducing the environmental impact of our business and to encourage our people to adopt environmentally friendly working practices. • Action plan: Review of travel policies.
  29. 29. 5. Supply Chain Management – Ethos International 5 Outstanding Customer Experience
  30. 30. Transcom supply chain management process
  31. 31. Q&A 6 Outstanding Customer Experience
  32. 32. Stay up-to-date on Transcom Cares activities LinkedIn 32