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2016-01-18

Transcom WorldWide: Transcom exits Colombia, reviews remaining Latin American business and streamlines management structure

Stockholm, 18 January 2016

· Transcom will close its loss-making site in Colombia and review
its remaining Latin American business. Losses in Colombia amounted to
€1.6 million in the first nine months of 2015. Restructuring cost in
Q4 2015: €2.2 million (of which €1.4 million is non-cash).

· Transcom's regional and management structure will be changed.
Expected annual direct cost savings: €2.9 million. Further efficiency
gains are expected in the coming years. Restructuring cost in Q1 2016
estimated at €2.7 million.

Transcom WorldWide AB (publ) today announced that it will close its
loss-making contact center in Cali, Colombia, and that the Board of
Directors is evaluating strategic alternatives for the company's
remaining Latin American business in Chile and Peru. Since 2013,
Transcom has generated losses in Latin America totaling €15.1
million. Out of this amount, €4.2 million is attributable to
Colombia. In the first nine months of 2015, losses in Latin America
totaled €3.2 million, €1.6 million of which refers to Colombia.
Stopping these losses is a key priority in 2016. A non-recurring €2.2
million restructuring cost related to the closure of the Cali site in
Colombia will be recorded in Q4 2015. Out of this amount, €1.4
million is a non-cash charge (write-down of assets), and €0.8 million
is a cash cost.

EBIT, Latin America

+-----------+----+----+---------+-----+
|EUR million|2013|2014|9-mo 2015|Total|
+-----------+----+----+---------+-----+
|Chile |-2.9|-3.2|-0.8 |-6.9 |
+-----------+----+----+---------+-----+
|Colombia |-0.8|-1.8|-1.6 |-4.2 |
+-----------+----+----+---------+-----+
|Peru |-1.5|-1.7|-0.8 |-4.0 |
+-----------+----+----+---------+-----+
|Total Latam|-5.2|-6.8|-3.2 |-15.1|
+-----------+----+----+---------+-----+

Transcom is also announcing a number of changes to its regional and
management structure (see below). This realignment will improve
efficiency and further streamline Transcom's global business
operations, as well as focus the organization's resources on
prioritized growth areas. Annual cost savings to be realized as a
result of these actions are estimated at €2.9 million, and are
expected to take full effect in the fourth quarter of 2016. Further
efficiency gains in addition to these direct cost savings are
expected to be realized in the coming years, supporting Transcom's
mid-term financial objectives. A non-recurring restructuring cost
amounting to approximately €2.7 million, related to the
organizational changes described below, will be recorded in the first
quarter of 2016.

The following changes will be made to Transcom's regional structure,
i.e. the company's operating segments:

· A new region, Continental Europe, will combine our operations in
Spain and Portugal with the former Central & South Europe region
(excluding the United Kingdom). Roberto Boggio has been appointed
General Manager of this new region.

· A new region, English-speaking markets and APAC, will integrate
the UK organization with our operations in North America & Asia
Pacific. Siva Subramaniam has been appointed General Manager of this
new region.

· Region North Europe will remain unchanged, led by Christian
Hultén.

· Transcom's assets in Chile and Peru, currently under strategic
review, will be managed separately, reporting to the President & CEO,
Johan Eriksson.

Following the changes described above, Transcom's global business will
be managed within three operating units, in addition to the Latin
American organization currently under review: North Europe,
Continental Europe, and English-speaking markets & APAC. Starting in
the Q1 2016 interim report, Transcom's segment reporting will reflect
this change. Pro forma comparable figures for Transcom's new segment
reporting structure will be released before the publication of Q1
2016 results.

Johan Eriksson, President & CEO of Transcom, commented:

"The fact that we are exiting Colombia and that we are evaluating
strategic alternatives for Transcom's business in Chile and Peru
reflects a major shift in market conditions. Macroeconomic changes in
the last couple of years have negatively affected the viability of
Latin American contact centers as an offshore delivery solution for
clients in Spain. In response, we have focused on repositioning our
Latin American business towards serving domestic clients. While we
have won a number of new clients, results are still unsatisfactory.
Transcom is a marginal player in Latin America, and we have chosen to
focus on other markets, where our potential for generating profitable
growth is greater."

"In connection with the changes announced today, Isabel
Sánchez-Lozano, General Manager for the former Iberia & Latam region,
will leave Transcom. I would like to thank her for her contributions
to developing Transcom since joining the company in 2011."

"We are also making a number of organizational changes in order to
simplify our regional structure. This will yield cost advantages as
well as enhance the opportunity to drive standardization and
efficiency across our global business, placing us in a good position
to reach our mid-term financial targets. Important focus areas in the
coming years are to ensure that we have efficient and effective
regional and corporate functions, that our sites deliver superior
performance through operational excellence, that we excel in contract
and account management, and that we win long-term profitable business
in line with Transcom's commercial and operational set-up."

--------------------

Transcom WorldWide AB (publ) discloses the information provided herein
pursuant to the Securities Market Act and/or the Financial
Instruments Trading Act. The information was submitted for
publication on 18 January 2016 at 3:00 PM CET.

For further information, please contact:

Johan Eriksson, President and CEO
Telephone +46 70 776 80 22

Ulrik Englund, CFO
Telephone +46 70 286 85 92

Stefan Pettersson, Head of Group Communications
Telephone +46 70 776 80 88

About Transcom

Transcom (http://www.transcom.com/) is a global customer experience
specialist, providing customer care, sales, technical support and
collections services through our extensive network of contact centers
and work-at-home agents. We are 30,000 customer experience
specialists at 54 contact centers across 23 countries, delivering
services in 33 languages to international brands in various industry
verticals. Transcom WorldWide AB's share is listed on the Nasdaq
Stockholm Exchange under the ticker symbol TWW.

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http://news.cision.com/transcom-worldwide/r/transcom-exits-colombia--rev...
http://mb.cision.com/Main/1108/9897899/466076.pdf

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