Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Transcom Q1 2015 presentation

3,745 views

Published on

Published in: Investor Relations
  • Be the first to comment

  • Be the first to like this

Transcom Q1 2015 presentation

  1. 1. 21 April 2015 Outstanding Customer Experience Transcom First quarter 2015 results presentation Johan Eriksson, President & CEO Pär Christiansen, CFO
  2. 2. At a glance 1
  3. 3. 3 • A global customer experience specialist… • …employing 30,000 people… • …representing more than 100 nationalities... • …operating 54 contact centers, onshore, off-shore and near shore… • …in 23 countries… • …delivering services in 33 languages... • ...to over 400 clients in various industry verticals… • …generating €616.8 million revenue in 2014… • …with a market cap of SEK 2.1 billion as at March 31, 2015. Listed on Nasdaq Stockholm (Mid Cap segment) under ticker TWW. Transcom in numbers
  4. 4. 4 • Founded in Sweden in 1995 • European expansion; focus on organic growth • Presence in 15 European countries at the end of 2001 • Transcom WorldWide formed in 2000, headquartered in Luxembourg • Shares were listed in 2001 • Acquisition-led growth • Diversification into debt collection via acquisitions • Expansion of near-shore services • Establishment in Latin America, serving Spanish clients • Expansion into North America & Asia through acquisition of NuComm and Cloud10 • Restructuring program to strengthen competitiveness and improve profitability • Focus on growth in prioritized geographies; divestment of smaller country operations • Divestment of Credit Management Services (CMS) unit, to focus on core customer care business • Re-domiciliation to Sweden • Growth with clients while creating more balanced client portfolio • Continuously improve service offering, focusing on advanced, value- added services • Strengthen global footprint • Ensure competitive operational platform This year, Transcom celebrates 20 years in business
  5. 5. Steady improvement towards our mid-term EBIT margin target of at least 5 percent 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% Q1 2013 Q1 2014 Q1 2015 5 12-month rolling EBIT* margin development * Excluding non-recurring items Mid-term target • Targeted sales efforts -Growth with existing clients in new geographies -Broadening client base • Efficiency improvements and continuous focus on underperforming areas
  6. 6. 6 Q1 2014 Q1 2015 Net income, Q1 2015 vs. Q1 2014 €m 5.3 1.6 Net income improved significantly in the quarter • €2.5m improvement in net financial items • Income tax decreased by €0.7m (current tax in Q1 2015: 25%)
  7. 7. Our performance in Q1 2015 2
  8. 8. 8 Q1 2014 Q1 2015 Like-for-like revenue, Q1 2015 vs. Q1 2014 €m 160.9157.1 • Like-for-like revenue in Q1 2014 adjusted for currency effects (€+4.6m) and CMS divestments (€-6.7m), and one-off effect in Q1 2014 (€-0.9m due to sale of right to collect on portfolio) • The €3.8m like-for-like revenue increase was mainly driven by higher business volumes in North Europe and Iberia & Latam • We are refocusing our efforts on revenue growth, targeting at least 5% On a like-for-like basis, revenue in Q1 2015 increased by 2.4%
  9. 9. 9 EBIT Q1 2014 One-off items Q1 2014 Cost savings programs Volume & efficiency Expansion costs Other EBIT Q1 2015 5.4 -2.1 +1.7 -0.2 +0.6 +0.4 EBIT (mEUR) Q1 2014 vs. Q1 2015 5.9 EBIT margin in Q1 2015 improved to 3.7% from 3.4% (1.6% in Q1 2014 excluding CMS and one-off effect) • EBIT in Q1 2014 includes €1.0m from since-divested CMS units and a positive €0.9m one-off effect • Excluding the effects mentioned above, the EBIT margin improved by 2.1 percentage points • Higher profitability in the North America & Asia Pacific and Iberia & Latam regions
  10. 10. 10 • North Europe: EBIT strengthened due to higher volumes and improved efficiency in the Netherlands. EBIT in Q1 2014 was positively impacted by a €0.9m one-off item. • Central & South Europe: Lower volumes in Italy and start-up of new projects. • Iberia & Latam: Improved profitability in Chile and Portugal. Continued focus on improving efficiency in Latin America. • North America & Asia Pacific: Increased efficiency and cost reductions. Positive development in Asia continues. EBIT margin improvement driven by higher profitability in North America & Asia Pacific and Iberia & Latam 2015 Jan-Mar 2014 Jan-Mar EBIT margin North Europe Central & South Europe Iberia & Latam North America & AP CRM CMS* Total 4.8% 4.2% 1.3% 3.5% 3.7% n/a* 3.7% 4.8% 5.3% -1.1% 0.3% 2.3% 18.1% 3.4%** * Divested since Q1 2014 ** 1.6% excluding CMS and €0.9m one-off effect in Q1 2014
  11. 11. Trend vs. Q1 2014 Q1 2015 vs. Q1 2014 Average seat utilization ratio Average Efficiency ratio (billable over worked hours Monthly staff attrition 89% vs 88% n/a – slight positive development Decrease – positive development 11 Improvements on KPIs vs. previous year Key drivers to reach mid-term profitability targets
  12. 12. 12 80.7 86.3 91.1 94.6 94.4 90.1 85.7 67.0 62.8 56.7 38.1 59.3 56.7 49.7 36.2 55.3 54.3 38.4 24.6 27.1 0.00 0.50 1.00 1.50 2.00 2.50 3.00 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Gross debt (€ m) Net debt (€ m) Net debt/EBITDA • Gross debt decreased by €6.1m compared to the Q414 level • Net Debt increased by €2.5m compared to the Q414 level • Net Debt/EBITDA ratio: 0.9 (0.9 in Q414) Debt & leveraging
  13. 13. 3 Going forward – Transcom’s strategic direction
  14. 14. 14 Transcom’s brand promise Outstanding Customer Experience, driving revenue and brand loyalty ”
  15. 15. Attractive market growth 15 • 5-6% annual growth in customer management BPO in the next five years • Fastest growth in emerging APAC and Latam… • …but the bulk of the industry increase will be generated in mature markets, in particular the United States
  16. 16. An industry in change 16 PRIMARY CHANNELS USED: •Telephone, including voice and interactive voice response (IVR) self-service •Email response management •Web chat •Social media monitoring and response •Knowledge management for Web-based self-service
  17. 17. Frost & Sullivan recognizes Transcom’s growth and innovation in multiple customer care outsourcing markets 17 • 2015 European Frost & Sullivan Award for Visionary Innovation Leadership • 2014 Peru Frost & Sullivan Award for Growth Excellence Leadership • 2014 Philippines Contact Center Outsourcing Growth Excellence Leadership Award
  18. 18. Transcom’s strategic priorities 18
  19. 19. 19 www.transcom.com blog.transcom.com LinkedIn Stay up-to-date on Transcom
  20. 20. Thank you! Questions?

×