FOR IMMEDIATE RELEASE

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Transcom Reports Financial Results for the Fourth Quarter and Twelve Months Ended 31 December 2011

Luxembourg, 7 February 2012 – Transcom WorldWide S.A., the global outsourced services provider, today announced its financial results for the fourth quarter and twelve months ended 31 December 2011.

Q4 2011 financial highlights

• Net revenue €142.8 million, a 4.0% decrease compared to Q4 2010 (€148.7 million)
• Gross margin 19.3%, a 3.6 percentage point increase compared to Q4 2010 (15.7%)
• EBITA €2.7 million compared to €-18.4 million in Q4 2010
• EPS -0.43 Euro cents compared to -23 Euro cents in Q410
• The exchange rate impact on revenue was insignificant (+€0.2 million), and the impact on EBIT was positive (+€1.3 million)

Full year financial highlights

• Net revenue €554.1 million, a 5.9% decrease compared to 2010 (€589.1 million)
• Gross margin 16.5%, a 2.5 percentage point decrease compared to 2010 (19.0%)
• EBITA €-25.2 million compared to €-3.7 million in 2010
• EPS -62 Euro cents compared to -11 Euro cents in 2010
• The exchange rate impact on revenue was negative (-€4.1 million) and the impact on EBIT was positive (+€1.9 million)

Q4 2011 financial highlights – underlying performance*

• Net revenue €142.8 million, a 4.0% decrease compared to Q4 2010 (€148.7 million)
• Gross margin 19.3%, a 0.5 percentage point decrease compared to Q4 2010 (19.8%)
• EBITA €2.7 million compared to €1.0 million in Q4 2010
• EPS -0.43 Euro cents compared to 3 Euro cents in Q410
• The exchange rate impact on revenue was insignificant (+€0.2 million), and the impact on EBIT was positive (+€1.3 million)

Full year financial highlights – underlying performance**

• Net revenue €554.1 million, a 5.9% decrease compared to 2010 (€589.1 million)
• Gross margin 18.0%, a 2.0 percentage point decrease compared to 2010 (20.0%)
• EBITA €7.6 million compared to €15.7 million in 2010
• EPS -3 Euro cents compared to 15 Euro cents in 2010
• The exchange rate impact on revenue was negative (-€4.1 million) and the impact on EBIT was positive (+€1.9 million)

* Excluding restructuring and other non-recurring costs in Q410
** Excluding restructuring and other non-recurring costs in 2011 and 2010, as well as the one-off tax provision in Q311

Comments from the President and CEO

“2011 has been a difficult and turbulent year with disappointing results, for our shareholders and our employees. I am very grateful for your continued support. Clearly, restoring the company to profitability and enhancing shareholder value are our primary goals.  

Transcom’s revenue in Q411 was €142.8 million, a 4% decrease compared to the same quarter last year. We have seen a decrease in revenue in three regions: North America & Asia Pacific, South and West & Central. Revenue in the North region was flat, while we saw promising growth in Iberia. The revenue decrease in North America & Asia Pacific does not reflect a change in demand, but is rather a consequence of an increase in the proportion of volumes delivered from our offshore sites in Asia vs. onshore centers in North America. In the South region, we experienced revenue growth in Italy, while we saw a decrease in France mainly as a consequence of the disposal of two sites during 2011. In the West & Central region, revenue was impacted by lower volumes in the debt collection operations. EBITA for Q411 amounted to €2.7 million, up from €1.0 million underlying EBITA in Q410.  

From a full year perspective, revenue at €554.1 million decreased by 5.9% compared to 2010. I am pleased to see Iberia and North performing well despite tough economic and business conditions. North America & Asia Pacific is facing significant challenges with changing delivery demands, West & Central results are disappointing and France is facing a lengthy restructuring process.  

We enter 2012 with a stronger balance sheet after the recently completed rights issue. The restructuring program announced in the second quarter of 2011 is still underway. The successful completion of these restructuring actions is an important short-term focus area and we are continuing to look for areas for improvement in order to achieve a financial uplift. Our target will always be to optimize our capacity and that will continue to be a focus area throughout 2012 as we review our global delivery footprint. To continuously strive for operational excellence and business development will support growth and profitability. In parallel, we are carrying out a strategic review. We expect to be able to present more details about Transcom’s strategic priorities in the coming months.”    

Johan Eriksson, President and CEO of Transcom

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