Kinnevik Ab Class A · OMXSTO:KINV_A
Kinnevik Ab Class A — Transcom Worldwide — Investor Day (November 2009)
23 slides from Kinnevik Ab Class A's investor day presentation, Nov 4, 2009
Slide 1: Kinnevik Capital Markets Day Presentation: Foundation, Portfolio, Leadership
Kinnevik Capital Markets Day Presentation “Foundation, Portfolio, Leadership” Pablo Sanchez-Lozano President & CEO 4 November 2009 www.transcom.com
Slide 2: Agenda
Agenda 1. What is Transcom? 2. Market Dynamics 3. Financial Performance 4. Looking Forward -2-
Slide 3: A Leading Global Provider of Outsourced Services
A Leading Global Provider of Outsourced Services Transcom is a global leading global provider of outsourced business processes, specialising in Customer Relationship Management (CRM) & Credit Management Services (CMS) -3-
Slide 4: A History of Innovation & Diversification
A History of Innovation & Diversification • Founded in 1995, spun off from Kinnevik on 6 September 2001 and listed on Stockholmsbörsen • Transcom Worldwide S.A. class A and B shares are listed on the Nordic Exchange Mid Cap list under the symbols ‘TWW SDB A’ & ‘TWW SDB B • Diversification into the C
Slide 5: Transcom at a Glance
Transcom at a Glance Portfolio Fast Facts Customer Care, • Market research • Leader in customer relationship Sales and Support • Customer acquisition & management and credit management Solutions retention BPO services internationally • Customer care & technical support • €631m revenues (FY08) Credit
Slide 6: Managing the Entire Customer Lifecycle
Managing the Entire Customer Lifecycle CUSTOMER RELATIONSHIP MANAGEMENT CREDIT MANAGEMENT SERVICES Customer Reminder Amicable Special Debt Marketing Sales Service Legal Strategy Services Collection Cases Monitoring BACK OFFICE USPs • Full range of customer lifecycle outcomes: o Win new, retain, cros
Slide 7: Strong Client Base in Key Vertical Markets
Strong Client Base in Key Vertical Markets Financial Services Telecom Travel & Leisure Retail Media & Technology Other -7-
Slide 8: Agenda
Agenda 1. What is Transcom? 2. Market Dynamics 3. Financial Performance 4. Looking Forward -8-
Slide 9: Current Market Dynamics
Current Market Dynamics Customer Care Forecasted Market Growth Key Trends • Market estimated at 1.5m agent positions globally in 2009; forecast to grow c. 20% 2010-2013 • Financial Services and Telecommunications will continue to be the largest sectors • End-customer focus: trend to move from proces
Slide 10: Business Drivers: CRM
Business Drivers: CRM Growth • Strong fundamentals – only 20% of call centre market currently outsourced • Moderately cyclical – recession drives contact centre outsourcing for cost reduction Convergence • Growing convergence between contact centre & other areas of BPO • Niche opportunities around i
Slide 11: Business Drivers: CMS
Business Drivers: CMS Growth • Strong fundamentals – clients increasingly looking to for certainty on receivables and cash flow • Counter-cyclical – increase in supply of debt Consolidation • Fragmented market, in need of professionalisation (in face of regulation & compliance needs) Transition • In
Slide 12: Agenda
Agenda 1. What is Transcom? 2. Market Dynamics 3. Financial Performance 4. Looking Forward - 12 -
Slide 13: Group Development in Q3 2009
Group Development in Q3 2009 Flat Revenues & Continuous Margin Expansion • Revenue of €134.3 in Q3, down by 1.1% & 9.1% compared to Q209 & Q308 respectively • Gross margin up to 23.0% in Q309, compared to 22.0% in Q209 & 21.4% in Q308 • EBITA up to €7.8m from €7.1m in Q209 & Change Change (€ million
Slide 14: P&L Highlights
P&L Highlights Consolidated Financial Summary (€ million, except EPS) Q3 2009 Q2 2009 Q3 2008 FY 2008 Net Sales 134.3 135.7 147.7 631.8 • Increase in operating income Gross Profit 30.8 29.9 31.6 132.2 due to higher gross margins, in SG&A -23.0 -22.8 -24.1 -101.2 spite of flat revenues EBITA 7.8 7.1
Slide 15: Balance Sheet Highlights
Balance Sheet Highlights 30 September 30 September 31 December 2009 2008 2008 Fixed assets 198.9 193.0 199.4 Goodwill 142.6 123.8 135.2 • Reduced level of short-term Intangible Assets 18.3 25.2 20.1 receivables by €6.4m in the quarter Other fixed assets 38.0 44.0 44.1 • €68.4m of long-term loan faci
Slide 16: Cash Flow Summary (€m)
Cash Flow Summary (€m) 9 Months 9 Months Ended Ended Full Year • Increased cash flow from 30 Sept 2009 30 Sept 2008 2008 operations of €11.7m in Q309 Cash flow from 30.9 26.4 21.8 compared to €9.5m in Q209 & operations up €4.5m YTD09 compared to last Changes in working capital -16.4 -22.5 -20.4 year
Slide 17: Reducing Debt & Maintaining Healthy Leveraging
Reducing Debt & Maintaining Healthy Leveraging • Continued reduction of gross debt since Q109 through reduction in cash • Leveraging ratio at 2.0, within Company’s target range (€millions) Q309 Q209 Q109 Q408 Q308 Q208 • Interest payments of €1.1m made in Q309 Gross debt 131.6 139.7 144 127 125.5 11
Slide 18: Agenda
Agenda 1. What is Transcom? 2. Market Dynamics 3. Financial Performance 4. Looking Forward - 18 -
Slide 19: A Strong Foundation to Build On
A Strong Foundation to Build On Transcom has a solid foundation on which to develop • Customer relationships, client service delivery • Geographic footprint, sourcing options • Domain expertise (Telecommunications & Financial Services) • Expanded service portfolio • Profitable • Strong balance sheet
Slide 20: Execution is the Key
Execution is the Key Focus on Execution Emphasis on: • Offshore services & CMS (collections) solutions • Margins of existing onshore CRM businesses • Maximising cash & maintaining a robust capital structure • Operational excellence & deep industry knowledge • Expansion in the largest global markets
Slide 21: A Journey Has Begun & It is Ongoing
A Journey Has Begun & It is Ongoing Today Service Portfolio Development • Industry solutions • Customer Management core solutions • Solution capability enabled through 3. Market Business Framework technology, process leadership and • Growth & sales management delivery mix Leadership • Operational ef
Slide 22: Focusing on Our Clients
Focusing on Our Clients @ Expediacom citibank ry tlotels.co vodafone . Stena Line nsuF cegetel tiscalie ViaMichelin _| Scandic SEB ==> | | “7 bredbands BBV A . “4 bolaget ; TELE2 AD: Mail Vw saur ~ = 7 @-orl Rocher} =O inDesIT « - 22 - BB eanscom
Slide 23: Summary: Foundation, Portfolio, Leadership
Summary: Foundation, Portfolio, Leadership Strong foundation • Clients • Geographic coverage • Service portfolio • Service delivery Clear strategy • Focus on near-term execution Significant opportunity • More profit from current book of business • Further growth from existing clients Current situati