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Transcom Q2 2015 results presentation

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Results presentation

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Transcom Q2 2015 results presentation

  1. 1. 16 July 2015 Outstanding Customer Experience Transcom Second quarter 2015 results presentation Johan Eriksson, President & CEO Ulrik Englund, CFO
  2. 2. 2 • Good progress against all our financial targets - Revenue growth - EBIT margin - Net debt/EBITDA • Profitability improvements in all regions • Management changes Key highlights Q2 2015
  3. 3. At a glance 1
  4. 4. 4 • 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 2.3 billion as at June 30, 2015. Listed on Nasdaq Stockholm (Mid Cap segment) under ticker TWW. Transcom in numbers
  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% Q2 2013 Q2 2014 Q2 2015 5 12-month rolling EBIT* margin development * Excluding items affecting comparability Mid-term target • Targeted sales efforts -Growth with existing clients in new geographies -Broadening client base • Efficiency improvements driven by standardization • Continuous focus on underperforming areas
  6. 6. Our performance in Q2 2015 2
  7. 7. Q2 2014 Q2 2015 7 Like-for-like revenue, Q2 2015 vs. Q2 2014 €m 157.0 153.1 • Like-for-like revenue in Q2 2014 adjusted for currency effects (€+5.4m) and CMS divestments (€-4.3m) • The €3.9m like-for-like revenue increase was mainly driven by higher business volumes in Central & South Europe and Iberia & Latam regions • We continue focusing our efforts on revenue growth, targeting at least 5% organic growth On a like-for-like basis, revenue in Q2 2015 increased by 2.6%
  8. 8. 8 EBIT Q2 2014 One-off items Q2 2014 Cost savings programs Volume & efficiency Other EBIT Q2 2015 1.4 +2.4 +0.8 +0.5-0.3 EBIT (mEUR) Q2 2014 vs. Q2 2015 4.7 EBIT margin in Q2 2015 improved to 3.0% from 0.9% (2.5% in Q2 2014 excluding items affecting comparability) • EBIT in Q2 2014 includes a €1.1m cost for the re-domiciliation and a €1.3m capital loss from the divestment of CMS units • Excluding the effects mentioned above, the EBIT margin improved by 0.5 percentage points • Profitability improvements in all regions 0.9% 3.0%
  9. 9. 9 • North Europe: Improvements in Sweden and the Netherlands • Central & South Europe: Increased volumes in Germany, Poland and Tunisia • Iberia & Latam: Improved profitability in Chile, Peru and Portugal. Continued focus on improving efficiency in Latin America. • North America & Asia Pacific: Increased efficiency and cost reductions. All regions contributed to the EBIT margin improvement 2015 Apr-Jun 2014 Apr-Jun EBIT margin North Europe Central & South Europe Iberia & Latam North America & AP CRM CMS* Total 4.1% 3.4% 0.2% 3.8% 3.0% n/a* 3.0% 4.0% 1.8% -1.4% 1.5% 1.8% -30.3% 0.9%** * Divested since Q2 2014 ** 2.5% excluding items affecting comparability in Q2 2014
  10. 10. Trend vs. Q2 2014 Q2 2015 vs. Q2 2014 Average seat utilization ratio Average Efficiency ratio (billable over worked hours Monthly staff attrition 88% vs. 87% n/a – flat n/a – flat 10 KPIs vs. previous year Key drivers to reach mid-term profitability targets
  11. 11. 86.3 91.1 94.6 94.4 90.1 85.7 67.0 62.8 56.7 51.2 59.3 56.7 49.7 36.2 55.3 54.3 38.4 24.6 27.1 10.1 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 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Gross debt (€ m) Net debt (€ m) Net debt/EBITDA • Gross debt decreased by €5.5m compared to the Q115 level • Net Debt decreased by €17.0m compared to the Q115 level • Net Debt/EBITDA ratio: 0.3 (0.9 in Q115) Debt & leveraging 11
  12. 12. 3 Going forward – Transcom’s strategic direction
  13. 13. 13 Transcom’s brand promise Outstanding Customer Experience, driving revenue and brand loyalty ”
  14. 14. Attractive market growth 14 • 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
  15. 15. 15 Respond to voice calls from customers as efficiently as possible, at the lowest possible cost The industry is transforming Yesterday Today • Deliver excellent customer experience • New channels and technology platforms • Offer more knowledge due to diversity of products and greater customer demands • Generating a much higher degree of revenue and brand loyalty to clients • Feedback of customer intelligence to clients
  16. 16. 2013 2014 Share of non-voice services % of Transcom’s revenue 16 The share of non-voice services is increasing rapidly at Transcom • Focus on expanding non-voice services with major clients in several geographies • Significant increase in worked non- voice minutes with major clients • Increased requirements for chat • Trend has continued in 2015 14% 21%
  17. 17. Transcom’s strategic priorities 17
  18. 18. 18 www.transcom.com blog.transcom.com LinkedIn Stay up-to-date on Transcom
  19. 19. Thank you! Questions?

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