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23 October 2014 
Transcom 
Third quarter 2014 results presentation 
Johan Eriksson, President & CEO 
Pär Christiansen, CFO...
Transcom at a glance 
1
3 
•A global customer experience specialist... 
•...providing outsourced customer care, sales, technical support, and coll...
4 
Transcom in numbers 
•29,000 people… 
•…representing more than 100 nationalities 
•54 contact centers, onshore, off-sho...
A global player serving clients in many industries 
5 
North Europe 
Iberia & Latam 
North America & Asia Pacific 
Central...
We have an extensive global footprint 
6 
Country 
Domestic 
Near shore 
Offshore 
Sweden 
✓ 
✓ 
Norway 
✓ 
Denmark 
✓ 
Ne...
Update on important activities 
•Divestment of credit management services business complete – focus on core customer care ...
Our performance in Q3 2014 
2
9 
• Efficiency 
improvements and 
continuous focus on 
underperforming areas 
• Targeted sales efforts 
- Growth with exi...
Four-fifths of the revenue decrease in Q3 2014 is explained by divestments and currency impact 
52.3 
48.2 
34.7 
35.1 
31...
Q3 2013 
Q3 2014 
Excluding divested operations and currency effects, revenue decreased by 1.4% on a like-for-like basis 
...
EBIT Q3 2013 
One-off items 2013 
One-off items 2014 
Cost savings programs 
Volume & efficiency 
Expansion costs 
Other 
...
EBIT Q3 2013 
One-off items 2013 
CMS divestment 
Cost savings programs 
Volume & efficiency 
Expansion costs 
Other 
EBIT...
EBIT margin increase mainly driven by improvements in the North Europe and North America & Asia Pacific regions 
14 
•Nort...
Key priorities in 2014 
15 
Increase onshore seat utilization in North America 
•Increase focus and accountability 
•Focus...
What will it take for Transcom to return to historical margins? 
16 
Key performance driver Trend vs. Q3 
2013 
Q3 2014 vs...
17 
75.9 
80.7 
86.3 
91.1 
94.6 
94.4 
90.1 
85.7 
67.0 
32.1 
38.1 
59.3 
56.7 
49.7 
36.2 
55.3 
54.3 
38.4 
0.00 
0.50...
3 
Going forward – Transcom’s strategic direction
19 
Transcom’s brand promise 
Outstanding Customer Experience, driving revenue and brand loyalty 
”
20 
North America and Asia Pacific 
•Continue expanding in local markets in Asia Pacific 
•Expand onshore volumes in North...
Stay up-to-date on Transcom 
21 
www.transcom.com 
blog.transcom.com 
LinkedIn
Thank you! Questions?
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Transcom Q3 2014 results presentation

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Transcom Q3 2014 results presentation

  1. 1. 23 October 2014 Transcom Third quarter 2014 results presentation Johan Eriksson, President & CEO Pär Christiansen, CFO OutstandingCustomerExperience
  2. 2. Transcom at a glance 1
  3. 3. 3 •A global customer experience specialist... •...providing outsourced customer care, sales, technical support, and collections services... •...through an extensive network of contact centers and work-at-home agents Transcom’s business is to help make sure that our clients’ customers form positive perceptions of their interactions with them. ” What is Transcom?
  4. 4. 4 Transcom in numbers •29,000 people… •…representing more than 100 nationalities •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 •€653.2 million revenue in 2013 •Market cap: SEK 1,338.9 million as at September 30, 2014. Listed on Nasdaq Stockholm (TWW SDB B and TWW SDB A)
  5. 5. A global player serving clients in many industries 5 North Europe Iberia & Latam North America & Asia Pacific Central & South Europe CMS 33% 24% 21% 21% 1% Communi- cations Financial Services Retail Public Sector Services 61% 14% 6% 4% 7% 4% Healthcare 3% Other Business mix By region By industry
  6. 6. We have an extensive global footprint 6 Country Domestic Near shore Offshore Sweden ✓ ✓ Norway ✓ Denmark ✓ Netherlands ✓ Estonia ✓ ✓ Lithuania ✓ ✓ Latvia ✓ ✓ Germany ✓ United Kingdom ✓ Italy ✓ Hungary ✓ ✓ Poland ✓ ✓ Croatia ✓ ✓ Serbia ✓ Tunisia ✓ Spain ✓ Portugal ✓ Chile ✓ Peru ✓ ✓ Colombia ✓ USA ✓ Canada ✓ ✓ Philippines ✓ ✓ •Domestic markets – service delivery from the customer’s country •Near shore – service delivery to countries in the vicinity •Offshore – service delivery to countries far away
  7. 7. Update on important activities •Divestment of credit management services business complete – focus on core customer care business •Expansion in Eastern Europe for domestic business (new sites in Szeged and Belgrade) •Establishment of Gdansk as a multilingual site •Entry into Colombia •Several new client acquisitions with global potential •Focus on expanding onshore volumes in the United States •Launch of a research and innovation program with the objective of developing: -New technological solutions and tools -New operating models and processes •Launch of “Transcom Cares” as the company’s overarching Corporate Social Responsibility (CSR) governance program •Re-domiciliation to Sweden from Luxembourg 7
  8. 8. Our performance in Q3 2014 2
  9. 9. 9 • Efficiency improvements and continuous focus on underperforming areas • Targeted sales efforts - Growth with existing clients in new geographies - Broadening client base Positive progress on turnaround We are focusing on enhancing Transcom’s performance * Excluding non-recurring items. 599.2 631.8 560.2 589.1 554.1 605.6 653.2 2007 2008 2009 2010 2011 2012 2013 6.0% 4.4% 2.2% 0.7% 1.5% 2.7% 4.3% Revenue (€m) Operating margin* 3.1% 1FHi r2s0t1 4 Sept 2014 YTD 3.3%
  10. 10. Four-fifths of the revenue decrease in Q3 2014 is explained by divestments and currency impact 52.3 48.2 34.7 35.1 31.4 30.4 29.4 31.0 8.2 1.4 Q3 2013 Q3 2014 10 Central & South Europe Iberia & Latam North America & Asia Pacific North Europe Change -7.8% CMS Net revenue, Q3 2014 vs. Q3 2013 €m +1.2% -3.2% +5.4% -82.9% 146.0 156.0 •Revenue impacted by CMS divestments completed in order to focus on the core CRM business in prioritized geographies (€-6.8m) •Negative currency impact: €-1.1m
  11. 11. Q3 2013 Q3 2014 Excluding divested operations and currency effects, revenue decreased by 1.4% on a like-for-like basis 11 146.0 148.1* Net revenue, Q3 2014 vs. Q3 2013 on a like-for-like basis €m -1.4% * Like-for-like revenue in Q3 2013 adjusted for currency effects (€-1.1m) and a number of CMS divestments (€-6.8m) €2.1m like-for-like revenue decrease mainly due to lower volumes in Iberia & Latam and North Europe
  12. 12. EBIT Q3 2013 One-off items 2013 One-off items 2014 Cost savings programs Volume & efficiency Expansion costs Other EBIT Q3 2014 EBIT margin in core CRM business improved to 3.5% (2.6% in Q3 2013) 12 3.9 0.0 0.0 -1.3 -0.6 +3.5 EBIT, core CRM business Q3 2013 vs. Q3 2014 -0.4 5.1 •Improvement mainly driven by the North America & Asia Pacific and North Europe regions
  13. 13. EBIT Q3 2013 One-off items 2013 CMS divestment Cost savings programs Volume & efficiency Expansion costs Other EBIT Q3 2014 EBIT margin including CMS improved to 3.6% (2.9% in Q3 2013) 13 4.6 0.0 -1.3 -0.6 +3.5 EBIT, Transcom Group Q3 2013 vs. Q3 2014 •Improvement mainly driven by the North America & Asia Pacific and North Europe regions -0.4 5.3 -0.5
  14. 14. EBIT margin increase mainly driven by improvements in the North Europe and North America & Asia Pacific regions 14 •North Europe: Improved performance in Sweden, Norway and the Netherlands, as well as divestment of loss-making Danish CRM unit •Central & South Europe: Increased profitability in Germany and Poland. Investments in new sites in Hungary and Serbia had a counterbalancing effect. •Iberia & Latam: Lower volumes and efficiency in Chile, and lower volumes in Spain •North America & Asia Pacific: Increased efficiency and cost reductions. North American operations now profitable. •CMS: Strategic review completed. All units sold or integrated with core CRM business. 2014 Jul-Sep 2013 Jul-Sep EBIT margin North Europe Central & South Europe Iberia & Latam North America & AP CRM* CMS Total 5.0% 2.3% 0.9% 5.2% 3.5% 13.0% 3.6% 3.2% 2.1% 2.7% 2.1% 2.6% 8.2% 2.9%
  15. 15. Key priorities in 2014 15 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 •Address decreasing seat utilization and unsatisfactory efficiency levels in Chile •Presence in Colombia will support strategy to expand in fast-growing Latin American markets
  16. 16. What will it take for Transcom to return to historical margins? 16 Key performance driver Trend vs. Q3 2013 Q3 2014 vs. Q3 2013 Average Seat Utilization ratio 88% vs. 86% Share of revenue generated offshore 22.5% vs. 19% Average Efficiency ratio (billable over worked hours) n/a – positive development Monthly staff attrition n/a – flat Improvements on four KPIs vs. previous year Continue improving key performance indicators • Seat utilization • Efficiency • Offshore/onshore split • Attrition
  17. 17. 17 75.9 80.7 86.3 91.1 94.6 94.4 90.1 85.7 67.0 32.1 38.1 59.3 56.7 49.7 36.2 55.3 54.3 38.4 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 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Gross debt (€ m) Net debt (€ m) Net debt/EBITDA •Gross debt decreased by €18.7 million compared to the Q214 level •Net Debt decreased by €15.9m compared to the Q214 level •Net Debt/EBITDA ratio: 1.70 (2.30 in Q214) •Financial cost €0.4m (€0.6m in Q214) Debt & leveraging
  18. 18. 3 Going forward – Transcom’s strategic direction
  19. 19. 19 Transcom’s brand promise Outstanding Customer Experience, driving revenue and brand loyalty ”
  20. 20. 20 North America and Asia Pacific •Continue expanding in local markets in Asia Pacific •Expand onshore volumes in North America Latin America •Serving domestic markets and the US, in addition to Spanish clients North Europe •Leverage strong position in home market Central Europe •Primarily near shore opportunities •Strong capability in expanding Eastern European markets Growth opportunities
  21. 21. Stay up-to-date on Transcom 21 www.transcom.com blog.transcom.com LinkedIn
  22. 22. Thank you! Questions?

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