Q1 2020 Presentation Todays presenter Jonas Dahlberg President - - PowerPoint PPT Presentation
May 7, 2020 Q1 2020 Presentation Todays presenter Jonas Dahlberg President & Chief Executive Officer Transcom since June 2019 Previous roles: CFO, Transcom Holding AB (2019-2020) CFO, Sweco Group (2012 2019) President,
May 7, 2020
Today’s presenter Jonas Dahlberg President & Chief Executive Officer
Transcom since June 2019 Previous roles:
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Q1 highlights
Stable or increasing volumes with existing clients
YTD 2xFY19
workforce WAH end Q1, 60% currently
limitations and increased operational cost amid lockdowns
30 MEUR funding secured
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Utilities BFSI Gov & Health- care Media Travel
What we do: outsourced customer relationship management
We are a global customer care provider
concepts delivered by our global team of local specialists… …supporting our clients’ digital agenda by combining our core services with leading digital capabilities and tools… …delivering services in 33 languages to international brands in various industries Core services
Conversational commerce Digital channels Robotic Process Automation Interaction Analytics Chatbots Gamification
Call Chat Email
26,000
customer experience specialists
serving customers via
Services & utilities Commerce & Logistics
Auto- motive Logistics Retail/ e-commerce IT/Tech White- goods
Telco & Cable
Social media Messaging
Telco Cable
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Solid foundation as basis for profitable growth
Double digit margin and solid organic growth From 5 to 9% EBITDA 2015-2019
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Next phase is about profitable growth – Achieving double digit margins and solid organic growth
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Client focus Operational excellence Culture and leadership
and lean OH
centricity
management
recruiting, retention and workplace presence
approach
in North America
Transcom is highly competitive in the “new normal”
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from physical channels to distance channels
improved customer experience
continuity options in case of coronavirus resurgence The new normal
Strong references in ecom, fin-tech and digitally
enabled businesses
Strong portfolio of digital services and CX
services
Leading WAH service and globally diversified
site operations Transcom’s position
Amid COVID-19 our business model is more relevant than ever
10 As consumers are socially distanced from physical retail…
Call Chat Email Social media Messaging
… Transcom is available to service consumers
26,000 customer experience specialists serving customers via
Transcom is growing in attractive customer segments
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Note: On July 27, 2018, the group acquired Awesome OS which has been consolidated from this date. 2019 includes Latin America until Feb 2019 (0.9M Sales and -0.1M EBITA). Adj. EBITDA% per industry includes allocation of unallocated/group-wide expenses.
Developments during the quarter 6.3% 6.5% 14.3% EBITDA Q1 2020 LTM
Revenue by industry segment, MEUR
130 155 160 206 208 198 208 179 176 Telco & Cable 2018 2019 Q1 2020 LTM Service & Utilities Commerce & Logistics
544 541 534
the loss of INPS contract in December
MEUR due to capacity limitations
segments
Strong development in sales of new contracts
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13 18 26
FY 19 Q1 20 YTD Apr 20
New logos:
In year revenue of new contracts, MEUR Expansions:
Serving Western Europe and Global English markets through diversified delivery
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Europe Global English Markets
Europe
Delivery model
countries
from 9 countries
the Philippines
the US and Canada
Share of total revenue
Q1 2020 LTM
65% 35%
Europe Global English
Site locations Serviced geographies
Unprecedented WAH mobilization supported by strong purpose
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Workforce, Percent Transcom’s missions in COVID-19
virus transmission in society
society up and running
WAH enabled: number of HC that there is a WAH solution in place for, if forced to move them home "tomorrow“ As of May 6, 62% and 66% of the direct workforce is working at home and enabled to work at home respectively.
10% 56% 6% 50%
Mar 23 Mar 16 Mar 31 WAH-enabled WAH
60% of staff working from home…
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… also making our sites safer
Key recent appointments
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Brent J. Welch Member of the Board
Consulting (‘17-present)
Aaron Favara SVP, Global Accounts & Virtual Work
Quarry (’15-’19)
’15) Don Berryman EVP – CCO– North America
’13) Snejana Koleva CFO
Division, Sandvik (‘17-’20)
’17)
Q1 results subdued by the COVID-19 pandemic
– 10.1 MEUR, -1.9 MEUR – 7.9%, -0.9pp – Corona impact -1.7 MEUR
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1) Net debt / EBITDA 2020 calculated in line with the definition of Leverage Ratio in the terms and conditions of the outstanding senior secured notes based on an EBITDA of EUR 46.9m (not including non-recurring items in excess of 15% of EBITDA) and Net Interest Bearing Debt of EUR 198.6m (excluding Subordinated Loans and pension liabilities)
Quarter effected by COVID-19, however solid EBITDA considering last year includes divested and exited business
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1) 2016 figures represents consolidated TWW accounts, 2017-2018 is consolidated at Issuer level, and adjusted for the acquisitions of TWW and Xzakt group. On July 27, 2018, the group acquired Awesome OS which has been consolidated from this date. 2019 and onwards are fully including recording of IFRS 16 Leases, no retroactive calculation done for comparison periods. 2) M&A amortization not included in D&A.
586 584 544 541 534 31 38 39 49 47 5,3% 6,5% 7,2% 9,0% 8,8% 2016A 2017A 2018A 2019A 2020LTM
EURm
Sales
(11.4%)
Sales and EBITDA development 1) Summary of historical P&L 1)
EURm 2016 2017 2018 2019 2020 LTM 2019 Q1 2020 Q1 Sales 586.1 584.0 543.6 541.5 534.1 135.1 127.7 Cost of sales
D&A2)
D&A leasing
Gross profit 119.4 119.5 116.7 130.9 129.6 32.4 31.1 % margin 20.4% 20.5% 21.5% 24.2% 24.3% 24.0% 24.3% SG&A
D&A leasing
23.1 30.0 31.6 39.0 36.9 9.9 7.7 % margin 3.9% 5.1% 5.8% 7.2% 6.9% 7.3% 6.0%
62.8 60.7 16.0 13.8 % margin 11.6% 11.4% 11.8% 10.8%
IFRS 16 31.2 38.2 39.4 48.8 46.9 11.9 10.1 % margin 5.3% 6.5% 7.2% 9.0% 8.8% 8.8% 7.9%
Q1 EBITDA impact due to COVID-19
20 EBITDA
19 impact 10,1 Impact from lost revenue due to absenteeism and lockdowns 0,2 Mitigated costs Logistics and lodging
EBITDA
0,6 0,1 Employee cost 0,1 IT and facilities costs EBITDA
19 impact 11,8 1,9 9,3 Extra ordinary costs due to COVID-19
E/O items trending downwards
Non recurring items, EUR millions
LTM By quarter
Q1 non recurring items totaled EUR -1.6 million
whereof EUR -0.8 million refers to COVID-19
E/O continued to decline and totaled EUR 6.0 million for 2020 LTM
Note: FY 2017 is consolidated at Issuer level and full year adjusted for the acquisitions of TWW group and Xzakt group.
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5 10 15 20 25 30 35 40 45 50 16.6 2.2 37.3 7.2 Q2 2017 7.0 6.0 Q1 2017 9.5 Q3 2017 20.0 3.5 Q4 2017 23.8 Q1 2018 34.5 20.6 Q4 2018 4.3 Q2 2018 34.4 Q3 2018 3.6 4.0 32.5 Q2 2019 Q1 2019 15.0 3.1 2.2 Q3 2019 0.8 11.5 0.5 8.4 Q4 2019 1.6 Q1 2020 6.0
Solid cash flow in the quarter
amounted to EUR 7.3 million (13.1)
amounted to EUR -4.0 million (3.4)
temporary nature
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EURm 2019 Jan – Dec 2019 Q1 2020 Q1 Profit/loss before tax 2,143
Adjustments for non cash items 33,429 7,211 8,071 Net financial items 17,565 4,041 4,292 Income taxes paid
Changes in working capital 5,684 3,396
Operating cash flow 51,366 13,077 7,318 Investments
Acquisitions/disposals of business, net of cash
27 Cash flow from investing activities
Cash flow from financing activities
Cash flow for the period 1,127 7,796 2,959
Q1 working capital in line with normal variations
Note: 2016 figures represents consolidated TWW accounts, 2017-2018 figures are consolidated at Issuer level. Q2 2017 and onwards includes the acquisition of Xzakt group. Q3 2018 and onwards, includes the acquisition of Awesome group.
EUR millions
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20 40 60 80 100 120 140 160 6,5 8,5 3,5 0,0 3,0 0,5 7,5 7,0 1,5 5,0 1,0 8,0 5,5 2,0 6,0 2,5 4,0 4,5 4.3 6.1 Q3 2018 Q4 2018 Q2 2016 5.4 5.4 Q4 2017 Q1 2017 Q1 2019 Q2 2019 6.3 5.3 24 4.7 4.9 Q1 2016 3.0 Q3 2016 Q4 2016 4.0 Q2 2017 Q3 2017 Q1 2018 6.4 5.5 18 Q2 2018 5.3 5.5 30 31 31 3.9 26 27 31 22 29 34 25 30 36
NWC % Prepaid expenses and accrued income Trade receivables Trade payables Other receivables - Current Accrued expenses and prepaid income Other liabilities - Current6.1 33 Q3 2019 Q4 2019 5.6 30 Q1 2020 5.9 31 3.9
increased operational cost
new sales