Financial results for the fourth quarter and full year 2001

FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2001 Luxembourg, 19 February 2002 - Transcom WorldWide S.A. ('Transcom') (Stockholmsbörsen: TWWA, TWWB; Nasdaq: TRCMA, TRCMB) today announced its financial results for the fourth quarter ended 31 December 2001 and full year 2001. Full Year Highlights · Net sales up 21% · EBITDA up 68% to E 14.6 million · Operating profit of E 2.3 (-1.3) million · Geographical expansion increases number of call handling seats to 4,500 Fourth Quarter Highlights · Gross margin improves to 28% (16%) · EBITDA more than quadruples to E 7.8 million · Operating profit margin of 7% · New client wins - Optima, Shell, Findexa Consolidated income 2001 2000 2001 2000 statement (E million) Q4 Q4 Full Year Full Year (Pro-forma)* (Pro- forma)* Net Sales 55.4 57.4 215.3 177.4 Earnings before 7.8 1.9 14.6 8.7 depreciation and amortization Operating income 3.8 -0.4 2.3 -1.3 Income after 3.5 -0.5 1.4 -2.0 financial items & before income tax and minority interest Net result 2.5 -0.7 -0.8 -3.1 Earnings per share 0.04 -0.01 -0.01 -0.05 (E) Basic number of 63,053,939 62,938,677 63,053,939 62,938,677 shares outstanding * Pro-forma as if the merger of Transcom AB and Transcom Europe S.A. had occurred on 1 January 2000. OPERATING REVIEW The Group showed strong sales growth during the year, with net sales up 21%, and continued to out-perform annual average growth rates for the industry. This strong development reflected the substantial and entirely organic expansion during 2001 with the opening of six new call centers. Net sales for the final quarter demonstrated resilience despite the adverse market conditions that followed the events of 11 September in New York, and the impact of the extended Christmas break. Net sales in the Nordic region increased by 18% year on year to E 95.2 million, while net sales on the continent increased by 24% to E 120.1 million in 2001. Transcom expanded rapidly during 2001 and employed 6,100 people in 26 call centers in 15 countries at the year end. The Group provides a broad range of customer relationship management services, comprising inbound and outbound teleservices relating to customer service, technical support and telemarketing, as well as internet services and fulfillment tasks. Transcom opened its second call center in the Baltic States during the fourth quarter. The launch of a new center in Riga, Latvia, reflects the growth in the territory of Transcom's principal customer, Tele2 AB, and adds to the Group's presence in the region where it already has an operation in Tallinn (Estonia). The Group now has the widest geographical coverage of any call center organisation in Europe. It is envisaged that this expansion will continue, with particular focus on the establishment of new operations in the Baltics and Western Europe. Further investment in sales and marketing during the year resulted in a substantial increase of two to three times in the number of outstanding quotes to potential customers. Order flow has remained strong into 2002. Transcom derives a significant proportion of its income from its principal client, the rapidly expanding Tele2, the largest pan-European telecommunications brand. This relationship continues to enable Transcom to organically develop the largest call center network in Europe. Transcom's sales not related to the Tele2 group increased to E 38.6 million in the full year. The significant improvement in the gross margin to 28% (16%) in the fourth quarter was due to increased efficiency levels resulting from strict cost control, above industry average utilisation rates, and improved planning to match staffing levels to peak demand periods during the year. New call centers in Tulle (France), Halle (Germany), Vordingborg (Denmark), Borås (Sweden), and Casablanca (Morocco) and Riga (Latvia) were launched during the year and have developed according to plan. These centers are now generating strong revenue development following the completion of the initial phase of agent recruitment and training. The closure of the Dusseldorf center in Germany and the opening of a new center in Halle, has improved capacity from 100 to 180 agent positions in Germany, whilst at the same time increasing efficiency due to the lower local costs in the new location. The combination of strong top line sales growth with the continued focus on improving efficiency enabled the Group to report both quarterly and annual operating profits. This positive development was further demonstrated by the achievement of an operating profit of 7% in the fourth quarter. FINANCIAL REVIEW Transcom WorldWide S.A. was created by the merger of Transcom AB and Transcom Europe S.A. in March 2000. With effect from January 2001, the new Company became a wholly owned subsidiary of Stockholm-based investment company, Industriförvaltnings AB Kinnevik, which has interests in telecommunications, media, paper and agricultural assets. The subsequent growth of the new company led to a decision by Kinnevik shareholders at their annual general meeting in May 2001 to distribute new A and B class shares in Transcom WorldWide, and to list the group's shares on the NASDAQ stock exchange in New York and on the Stockholmsbörsen O List. The new shares consequently began trading on the exchanges on 6 September 2001. The reported figures for the fourth quarter and full year 2000 are pro forma and are presented as if the merger between Transcom AB and Transcom Europe had taken place on 1 January 2000. Substantial improvements have been made to operational cash flow in 2001, which increased to E 13.8 (7.9) million for the full year. This was the result of the growth in operating profit as well as significant improvements in working capital, including a reduction in debtor days and in capital expenditure in the fourth quarter. Capital expenditure for the year was E 13.7 (11.6) and E 1.4 (4.9) million in the fourth quarter. Consequently, Transcom's cash position at the year end stood at E 17.6 (4.6) million. As a result, long term debt remained at E 15.5 million, comprising the drawn down element of a E 27.5 million convertible debenture loan from Kinnevik. The loan was granted in advance of the spin-off of Transcom in exchange for a similar amount of Transcom's net indebtedness. The equity to assets ratio at the year end stood at 60% (63%). OTHER INFORMATION Transcom's financial results for the first quarter of 2002 will be announced on 25 April 2002. Transcom's annual report is expected to be released in April 2002, and will be available from the Company's registered office at 75 Route de Longwy, L-8080 Bertrange, Luxembourg. The shareholders' annual general meeting will be held on 28 May 2002 in Luxembourg. The Board of Directors will not be proposing the payment of a dividend to shareholders for 2001 to the AGM. Luxembourg, 19 February 2002. The Board of Directors of Transcom WorldWide S.A.. For further information please contact: Vigo Carlund, President and CEO +46 8 562 000 00 Matthew Hooper, Investor & Press enquiries +44 20 7321 5010 Transcom WorldWide is a rapidly expanding Customer Relationship Management (CRM) solution provider, with 26 call center operations employing 6,100 people in 15 countries - Luxembourg, Sweden, France, Denmark, Germany, Finland, Italy, Switzerland, Norway, the Netherlands, Spain, Austria, Morocco, Estonia and Latvia. The company provides CRM solutions for companies in a wide range of industry sectors, including telecommunications and e-commerce, travel & tourism, retail, financial services and utilities. Transcom offers clients a broad array of relationship management services, including inbound and outbound call handling, Interactive Voice Response, Internet Services, e-mail processing and fax broadcast. Client programs are tailor-made and range from single applications to complex programs, which are offered on a country-specific or international basis in up to 37 languages. Transcom WorldWide S.A.'A' and 'B' shares are listed on the NASDAQ National Market under the symbols TRCMA and TRCMB and on the Stockholmsbörsen O-List under the symbols TWWA and TWWB. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/02/19/20020219BIT00940/bit0001.doc The full year-end report http://www.waymaker.net/bitonline/2002/02/19/20020219BIT00940/bit0001.pdf The full year-end report