AND THE ACCOUNTS FOR 2007

(1)

OUR PEOPLE

THEIR RECIPES

AND THE ACCOUNTS FOR 2007

(2)

STARTERS

1 Who we are What we do Where we are

2 Our values Our history

3

2007 Financial and operational highlights 5

Our markets 6

Transcom’s key objectives

MAIN COURSE

7

Chief Executive’s review 10

The Transcom difference 11

How we help our clients 12

Evolving our offerings 13

Supporting our partners’ growth 15

Improving our business performance 16

Social responsibility 18 Board of Directors

20

Executive management 23

The Transcom share and Transcom shareholders 24

Directors’ report 26 Corporate governance

DESSERTS

31

Consolidated income statement 32

Consolidated balance sheet 34

Statement of changes in equity 35

Consolidated statement of cash flows 36

Notes to the consolidated financial statements 72

Independent Auditor’s report

SPECIALS

73 How to contact us

80

Information for our shareholders

(3)

STARTERS

(4)

“OUR SUCCESS RELIES UPON THE PROFESSIONALISM AND COMMITMENT OF ALL OUR EMPLOYEES.

BY PROVIDING THE RIGHT TRAINING, SUPPORT AND QUALITY CONTROL – WHILE RECOGNISING AND REWARDING ACHIEVEMENT – WE ENSURE THAT OUR PEOPLE HAVE THE KNOWLEDGE AND TOOLS THEY NEED

TO EXCEED CLIENTS’ EXPECTATIONS AND PROVIDE OUTSTANDING SUPPORT TO THE CUSTOMER, ALL WITHIN AN ORGANISATION THAT FOSTERS

A GREAT WORKING ENVIRONMENT.”

CAROLINA ABRAHAM

HUMAN RESOURCES DIRECTOR

(5)

STARTeRS

WHO WE ARE

Transcom is a leading global Customer Relationship Management (CRM) and Credit Management Service (CMS) provider, delivering cost-effective

solutions while optimising efﬁciency and quality for our clients.

Customer Care and teChniCal support Service, support and information

to end-customers via phone, e-mail, white mail and web.

market researCh and intelligenCe Customer insight, competitor intelligence and citizen statistics.

translations On-demand, over-the-phone professional

interpretation service.

Credit management serviCes Sales ledger management, front ofﬁce, reminder services,

amicable collections, legal collections, debt surveillance

and debt purchasing.

Customer relationship management Consulting

Analysis, diagnosis and improvement of customer relationship management strategies.

Customer aCquisition, development and

retention Lead generation, sales conversion, promotions, bookings and additional sales,

database registration and contract processing, loyalty

schemes, retention and win-back programmes.

legal serviCes Bond issues, power of attorney and requests for information regarding laws, contract creation

and consultancy.

WHAT WE DO

WHERE WE ARE

Services from 29 countries with over 17,300 employees speaking 33 languages across 72 sites

(6)

OUR CORE VALUES

eXCellenCemeans standing out, striving for perfection in

everything we do. It implies examining, improving and

reinventing.

innovationmeans creativity, ﬁnding solutions where others

see barriers. An open mind creates opportunities and

overcomes challenges.

honestYis critical in everything we do. Being honest

means being an open book.

It is from honesty that trust and loyalty are built.

passionimplies enthusiasm, commitment, energy and pride in our work. Passion dictates

what we “put in” to life, and normally what people “put in”

will balance what they get out.

Funmeans enjoying the work we do, enjoying the team spirit,

enjoying the daily contact with our clients. When there is no fun,

there cannot be lasting commitment.

STARTeRS 2

OUR HISTORY

95-97

Transcom AB established by Kinnevik in Sweden.

Transcom europe established by Tele2 europe in Luxembourg.

00-0

Transcom AB merges call centre operations with Transcom europe to form Transcom WorldWide S.A., a subsidiary of Industriförvaltnings AB Kinnevik. Transcom WorldWide S.A. listed on the Stockholmsbörsen O-list.

02-03

Gestel is acquired in July 2002. Keith Russell is appointed CeO in August of the same year. Strong increase in revenues and proﬁtability in the following year, as well as diversiﬁcation into debt collection through the acquisition of CIS.

04-05

In 2004, Marketlink in Hungary, along with the remaining 25% of Gestel, is acquired. The same year the TransBorders initiative is launched. In 2005, the acquisition of Creditexpress CR s.r.o. in the Czech Republic is completed. Transcom also launches new centres in Croatia, Seville and Tunisia.

The debt collection business is expanded into 12 countries.

06-07

Strategic acquisition of debt collection businesses in Germany and the UK in 2006.

The ﬁrst centre in Chile is launched to serve the Spanish market. In 2007, Ben Gujral is appointed CFO of Transcom.

Polish CeNT, Canadian NuComm and Austrian IS Inkasso are also acquired. Transcom now has more than 17,300 permanent employees spanning the continents of Asia, europe, North and South America.

(7)

CRAWFISH AND CORN SOUP

BY

MANDY MARYE

EMPLOYEE RELATIONS COORDINATOR

LOUISIANA, USA

(8)

CRAWFISH AND CORN SOUP

SERVES 8

1 stick butter or margarine / 1 large bell pepper, chopped / 1 large onion, chopped / 2 cloves minced garlic / 2lbs crawfish tails / 2 cans (10¾oz) cream of potato soup / 2 cans (15oz) cream style corn / 1 can (14½oz) diced tomatoes / 8oz block cream cheese / 2 cups milk / Creole seasoning / 3 tablespoons green onions / 3 tablespoons fresh parsley

Sauté the bell pepper and onions in butter or margarine until the onions are soft. Next, add the minced garlic and sauté for about 2 minutes. Add the Crawfish and cook for about 15 minutes.

Add diced tomatoes, potato soup, corn and milk. Cut the block of cream cheese into small squares before adding to the soup. This will allow for the cream cheese to melt evenly into the mixture. Season to taste and simmer for about 10-15 minutes. If desired, top with green onions and parsley just before serving.

I personally like to season with salt and Zatarain’s (my favourite Creole seasoning mixture) while the onions and bell peppers are sautéing, and once again after adding everything into the mixture. I like to gradually work up to the amount of seasoning added in.

MANDY MARYE

EMPLOYEE RELATIONS COORDINATOR

LOUISIANA, USA

WHAT DO YOU DO AT TRANSCOM?

I am the Employee Relations Coordinator for the Lafayette call centre.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB?

There is never a dull day. There is always something new and challenging!

WHERE DO YOU WORK/LIVE?

I live in Lafayette, Louisiana, USA.

WHAT ARE YOUR INTERESTS/HOBBIES?

I like to fill my time with activities with my husband and son, taking lots of photos along the way.

WHY DID YOU CHOOSE THIS RECIPE?

In South Louisiana, life revolves around seafood.

Around here there are five seasons, Crawfish season being the most anticipated!

In S outh L ouisiana,life revolves around seafood

(after m y husband and son)

(9)

STARTeRS 3

2007 FINANCIAL AND OPERATIONAL HIGHLIGHTS

Canadian NuComm is acquired in August, signiﬁcantly increasing Transcom’s North American operations and also

extending its global footprint through NuComm’s offshore centres in the Philippines.

The partnership with NuComm creates the opportunity for accelerated growth for both companies through business and

operational synergies as well as combined marketing efforts.

In September, IS Inkasso – the largest CMS company in Austria – is acquired to provide a strong foothold for Transcom’s CMS business in Central europe. The

transaction enables Transcom to strengthen its position within the mature markets in the region

as well as to further develop its CMS business in the dynamic economies of eastern europe.

The impressive turnaround in the Iberian region, driven by two offshore centres in Chile,

has signiﬁcantly improved margins in the region and also presents exciting development opportunities for the future, both

in nearshore services for the North American market and local services for the Latin

American market.

29%

Business continuity attained in key countries

where tele2 divested operations, including

France and italy, with sales to tele2 representing 29% of total

sales in december 2007.

+5

new contact centres opened in germany, the netherlands, poland,

Chile and lithuania.

8 8 site expansions carried out in the year

in service centres based in spain, Chile,

germany, holland, poland and lithuania.

+11%

2007 net sales up %

to €599.2 million, versus

€540.2 million in 2006.

+15%

organic non-kinnevik related sales up 5%

in 2007, excluding acquisitions and tele2

divestments.

+2

two major acquisitions carried out in the year, with the addition of

international Crm operator nuComm and

leading austrian debt collection company

is inkasso.

(10)

STARTeRS 4

07 599.2

06 540.2

05 444.8

04 369.7

03 286.3

02 228.5

01 215.3

07 236.3

06 145.1

05 112.9

04 90.7

03 60.5

02 29.7

01 38.6

07 124.6

06 110.7

05 93.1

04 79.5

03 67.3

02 50.6

01 45.6

07 37.1

06 37.8

05 33.1

04 24.4

03 20.3

02 9.0

01 5.7

total revenues

(€millions)

non-kinnevik related revenues

(€millions)

gross proFit

(€millions)

eBita

(€millions)

2007 FINANCIAL AND OPERATIONAL HIGHLIGHTS

(11)

SALTIBARSCIAI

BY

RYTIS PETRAUSKAS

MULTILINGUAL CUSTOMER CARE AGENT

VILNIUS, LITHUANIA

(12)

SALTIBARSCIAI

Saltibarsciai, the traditional Lithuanian cold beetroot soup, is a great summer recipe. While some traditional Lithuanian cooking recipes require a lot of preparation, patience and expertise, this one is relatively simple and fun to make. You can prepare it in advance and keep it chilled in the refrigerator for days. It adds a nice cool touch to picnics at the beach, too. It goes very well with sandwiches, baked or boiled potatoes or just about anything else you like!

1 cup milk / 2-3 medium to large red beetroots / 4 cups buttermilk / 2 hard-boiled eggs / 2 medium cucumbers / spring onions or chives / fresh dill / salt

Clean, trim and peel the beetroot, cover with water and boil until tender. While the beetroots are boiling, peel the cucumbers and chop into small cubes (about ½ inch). Then peel the shells from the hard-boiled eggs and separate the whites from the yolks. Chop the whites very finely. Chop the scallions and mash with egg yolks and ¼ teaspoon of salt to release the onion flavour.

When the beets have finished boiling, remove them from the water and reserve the liquid.

Cool the boiled beets (I do it under cold running water) then pop them into the refrigerator.

When they have cooled, grate them (it’s a good idea to wear gloves at this point, unless you want your hands to be dyed red for several days after!). In a large mixing bowl, add buttermilk, grated beetroot, cucumbers, egg whites, egg yolks and scallions. Pour the milk on top or add some sour cream – it depends what consistency you like most. Stir until well blended. Place in the refrigerator to chill for about 10-20 minutes. Serve with chopped dill as garnish. Bon appétit!

RYTIS PETRAUSKAS

MULTILINGUAL CUSTOMER CARE AGENT

VILNIUS, LITHUANIA

I have the pleasure of working in the multilingual customer care team, which is a really exciting area to be involved in at the moment.

People. We have to communicate with the whole of Europe – from the south of Spain to the top of Norway – and, believe me, all of the countries have wonderful people to work with. Most of them have become my friends already.

Vilnius, the capital of Lithuania, has been my home for almost four years now.

I enjoy my city for its people, culture and nightlife – it’s never boring here. I love hanging out with my friends, going to parties and playing sports. It just seems that there is never enough time!

I‘m afraid I hate cooking! I get bored if I have to spend too much time in the kitchen, so this recipe is perfect – quick as a brown fox and very refreshing after a wild night out!

This recipe is perfect:quick

as a brown fox!

(13)

STARTeRS 5

US$ millions

2007 2012 Financial services

Telecommunications Manufacturing Retail, wholesale and distribution Public sector Travel, transportation, logistics and hospitality Energy and utilities Healthcare Media and entertainment Other Life sciences

35,410 23,262

30,393 20,586

24,233 15,711

22,140 15,127 10,945 7,285 7,206 4,817

7,001 4,640 4,458 2,802

3,968 2,517 2,300 1,517 1,529 996

total gloBal outsourCed agent positions 2007 - 200

OUR MARKETS

^*

transCom is FoCusing on the vertiCal markets With the highest eXpeCted groWth

the global market for outsourced offshore Crm & Bpo services is

expected to grow by

0.3% annually through 200, signiﬁcantly outstripping the growth of onshore outsourcing.

this remains a key area of focus for transcom’s

future growth.

the Communications and Financial services

vertical markets are forecast to represent 44% of total Crms’ Bpo

market by 202.

*All data supplied is by Datamonitor.

2012 2007 2010

1,345

2009 1,259

2008 1,158

2007 1,059

252

807

283

310

338

875

949 1,007

Outsourced Domestic

Outsourced Offshore Agent Positions (000s)

(14)

STARTeRS 6

TRANSCOM’S KEY OBJECTIVES

Continued growth of high margin business lines, including collections (CMS) and offshore services

Harnessing new technologies and methods to develop higher value solutions and value propositions for our clients

Prioritising our expansions in the largest global markets while maintaining operational consistency across the world

Driving strong organic and margin accretive growth and acquiring complementary margin-enhancing assets

Continue to strive for operational excellence and deep industry knowledge in the Financial Services and Communications sectors

Continue to develop innovative tailored client solutions, delivering

unprecedented cost quality ratios for our clients

(15)

MAIN

COURSE

(16)

“THE BUSINESS IMPROVEMENT TEAM ACTS AS AN INTERNAL R&D FUNCTION, DEVELOPING INDUSTRY-LEADING SOLUTIONS AND PROCESS IMPROVEMENTS. THROUGH SYSTEMATIC PROCESSES

AND STATE-OF-THE-ART TECHNOLOGY, WE DELIVER HIGH QUALITY CUSTOMER SUPPORT AND OPERATIONAL

EXCELLENCE THROUGHOUT ALL OF OUR OPERATIONS.

AT THE SAME TIME, WE CONTINUOUSLY ENGAGE AND WORK CLOSELY WITH OUR PARTNERS AND CLIENTS TO ENABLE CREATIVE AND COLLABORATIVE

SOLUTIONS TO TAKE HOLD.”

JOHAN DIETMANN

BUSINESS IMPROVEMENT DIRECTOR

(17)

i am delighted to report a strong year of growth and development for Transcom. in 2007, we greatly expanded our global footprint and have evolved from being a european- focused CrM company to a truly international outsourced services company through the

addition of substantial business in north america, Central europe and asia. During the year, we also witnessed a signiﬁcant change in the mix of client business as Tele2, our largest client, realigned its business portfolio and sold a number of its assets in europe.

We have been successful in ensuring business continuity in the major markets where Tele2 has divested operations, and look forward to developing strong, long-term relations

with our new partners in these regions in the coming years.

in the midst of so much change, we managed to retain growth leadership in the industry, delivering 11% revenue growth for the year, with organic non-Kinnevik related sales up by 15%. With most of our peers delivering single-digit organic growth, it is readily

apparent that we continue to strengthen our market position by offering our clients the solutions they need to reduce costs and retain the quality of services that their

customers demand.

Transcom’s long-term strategy remains unchanged. We are focused on increasing our profitability by growing higher margin business, including our near and offshore services and the debt collection business, both of which are the most profitable and fastest growing activities within Transcom. The biggest growth potential for new client outsourcing contracts in the CrM industry continues to lie in near and offshore services. This is because companies looking to outsource business can obtain the quickest payback from their investment due to the lower prices afforded through labour arbitrage. They are also less likely to develop in-house solutions without external help in unfamiliar territories. The pleasing thing about this trend is that the fastest growth area also enjoys higher margins than traditional onshore business and therefore dovetails perfectly with Transcom’s focus to both deliver strong growth and develop higher margins. our debt collection business continued to improve its profitability during 2007 and we are currently in the middle of a long-term project to bring further efficiencies to this business through the integration of our CrM and debt collection technology platforms and workflow tools.

in the future, this will deliver higher success rates for our clients with lower operational investment for us.

Main Course 7

CHIEF EXECUTIVE’S REVIEW

Keith Russell

(Chef)

(18)

We will remain focused on two key vertical markets, the Communications and Financial services sectors. This is ﬁrstly because we have a core competence in these areas and secondly because these are the vertical markets that industry analysts are forecasting to deliver the highest future growth. in addition, Financial services have an overwhelming synergy with debt collections as this sector is where all “packaged” bad debts reside. We will continue to develop deeper competencies and expertise in these areas, harnessing new technology and ideas to deliver high value solutions to our clients.

in august 2007, we acquired nuComm international, a leading provider of contact centre solutions based in north america. The acquisition has dramatically expanded Transcom’s horizons as nuComm has significant operations in Canada, the united states and the Philippines. Prior to the acquisition, nuComm had evolved in much the same way that Transcom has, developing significant offshore services, as well as a small debt collection business and a home working solution. We see tremendous opportunities in the integration of the two businesses both in terms of developing sales opportunities and gathering cost savings. We expect to continue with the expansion of our offshore services in the Philippines, where nuComm has significant capacity to serve english speaking countries such as the united states and the united Kingdom with very high levels of service. We have already begun to sell these services to new clients and this will be an important source of growth moving forward.

We are also in the process of aligning nuComm’s operating structure with that of Transcom to continue with our mission of managing and evolving one standard and excellent operating model across our business.

The iberian region has continued to benefit from bottom line improvements through the offshoring of work previously done onshore in spain to Chile. We opened our first site in Chile in autumn 2006 and launched our second site nearly a year later. We now have approximately 400 agents in Chile serving customers in spain with a very high quality of service and at much lower prices for our clients. While this has meant slightly reduced revenues in this region for Transcom during the year, we have significantly improved the overall profitability of the iberian region as evidenced from our financial results for 2007.

During 2007, we also continued to develop new centres within our european footprint in order to keep up with the growth of our clients. in March we opened a new centre in Dresden, which was our fourth site in Germany;

in april we launched a centre in emmen, our third organic development in the netherlands; in June, we set up our second organic development in Poland with our new Gdansk centre; and in December we announced the opening of our second centre in Lithuania through the opening of the Kaunus site. on top of these new site developments, we also carried out eight site expansions during the year in order to increase capacity at some of our fastest-growing operations.

We are continuing to develop new and innovative CrM solutions to mutually benefit Transcom, our clients and their customers. in 2006, we invested in Cloud10, a company set up in the united states to develop a home working CrM solution. This business broke even toward the end of 2007 and we have developed the technology so that it can be used throughout all of our territories to harness a high quality workforce who can deliver services to our clients from their homes, eliminating the need for costly overheads. in addition to this, our TransBorders programme, which employs native speakers from mature CrM markets in lower-cost countries, continues to grow. This programme benefits all parties, with clients receiving native language services at a lower cost, employees getting a life experience which will help in their long-term career development, and Transcom capturing better value for the services provided. another one of our innovations, TransVoice, is also continuing to deliver good results. TransVoice allows clients to book interpretation services through a teleconference bridge utilising Transcom’s contact centre infrastructure. at short notice, a client can request an interpreter to be available via teleconference for a specified period of time, thus reducing the cost and increasing the flexibility of the service. in the future, we will also be developing more sophisticated client solutions, providing process workflow and contact automation as part of our services.

our debt collection business continues to develop rapidly as we increase our overall market share and expand our footprint. Transcom’s Credit Management services (CMs) business now serves 20 countries compared to 13 at the end of 2006. in 2007, Transcom CMs delivered organic revenue growth of over 20%, with increased margins compared to 2006. We remain focused on further expanding this business as it typically exhibits proﬁt margins that are at least double that of average CrM margins. in september 2007, we completed the acquisition of is inkasso, the largest debt collection company in austria. With is inkasso, we have secured a strong foothold

Main Course 8

CHIEF EXECUTIVE’S REVIEW

(19)

TUNISIAN POTATO BREIKS WITH OLIVES AND CAPERS

BY

RIADH CHAIEB BUSINESS MANAGER

TUNIS, TUNISIA

(20)

TUNISIAN POTATO BREIKS WITH OLIVES AND CAPERS

This is an ideal snack, perfect for those times when you’re hungry for something special but really don’t feel like spending a long time in the kitchen!

SERVES 7

2½lbs russet potatoes, scrubbed and quartered / 1 teaspoon salt / ¼ cup olive oil /

½ small onion, finely diced / 2 tablespoons capers, drained / 10 green or black olives, pitted and chopped / 10 fresh flat-leaf parsley sprigs, minced / 1 teaspoon red pepper flakes / ½ teaspoon freshly ground black pepper / 14 7-inch-square Chinese egg roll pastry skins / lemon wedges

Boil the potatoes for 25-30 minutes, or until a knife pierces them easily. Drain, saving 1 cup of the cooking liquid, and let the potatoes cool. Mash the potatoes until smooth, and then slowly add the cooking liquid until you have a thick puree texture. Stir in the olive oil, onion, capers, olives, parsley, pepper ﬂakes and black pepper until well blended.

Separate the egg roll pastry skins and place them on a clean surface. Place ¼ cup of the potato mixture in the centre of each egg roll skin. Fold over to make a triangular-shaped turnover. Seal the edges with water. In a medium-sized frying pan, heat ½ inch of cooking oil. Carefully set 1 “breik” at a time in the pan, making sure that the oil is not too hot (if it is, the breik will cook on the outside but not on the inside). Fry for about 2-3 minutes on each side or until golden brown, then place on a kitchen towel to remove excess oil. Serve immediately with lemon wedges.

RIADH CHAIEB

BUSINESS MANAGER TUNIS, TUNISIA

I have been a member of the team at Transcom Tunis since October 2005. I am currently Business Manager in charge of new projects and implementations.

The need for versatility and working within a young and dynamic team. Getting to know people from different countries and cultures.

I work and live in Tunis, the most opened-minded city in the world!

Supporting my favourite football team, Club Africain, and discovering the new trendy places to go out.

It’s a delicious, light dish and it’s easy to prepare.

It’s very useful when you have last-minute guests – it’s ready in ten minutes and your guests will deﬁnitely appreciate it.

Your guests will definitely appreciate it!

(21)

Main Course 9

CHIEF EXECUTIVE’S REVIEW

in Central europe and are utilising this new platform to develop new business in untapped markets in the east of europe such as Bulgaria and romania. earlier in the year, we also acquired CenT, a leading collections agency in Poland. The addition of CenT has helped us to accelerate our expansion in this fast-growing market and we look forward to growing this business in the coming years. in 2007, we acquired 10 small portfolios and had approximately €500,000 of portfolios on our balance sheet at the end of the year. We see greater opportunities to purchase debt portfolios in the future as prices decline in line with global credit concerns. This places us more in a buyer’s market with less competition. We will, however, continue to exercise caution in this area and will prefer to purchase debt in conjunction with ﬁnancial institutions wherever possible.

in 2007, our business was transformed greatly by the realignment of Tele2’s business across europe. as of the month of December, the percentage of our revenues derived from Tele2 stood at 29% versus 70% in 2006. We have been very successful in terms of retaining business in countries where Tele2 has divested of its operations.

in the south region, where Tele2 has sold operations in France and italy, we have secured long-term agreements with the new owners and we are working hard to develop strong partnerships with these important new clients.

understanding their needs and the approaches they take towards their businesses is of fundamental importance so that we can provide them with solutions that suit both their business needs and the demanding expectations of their customers.

at the same time, our non-Tele2 revenues continued to grow extremely fast during the year as we posted 15%

organic external (non-Tele2) sales growth. This is a very important ﬁgure as it demonstrates our continued ability to win new business in a competitive global marketplace. Moving forward, we expect to continue delivering strong external growth especially as we begin to gear up our new offshore centres in the Philippines and Chile, which will deliver high quality english and spanish language services for international clients.

We remain positive about our business opportunities in 2008. We will be working hard to realise signiﬁcant synergies in nuComm’s business and to take full advantage of the opportunities afforded to us through our expanded global footprint. Many economists and analysts have adopted a cautious economic outlook for 2008.

However, this does not necessarily put a damper on Transcom’s outlook. in a volatile or weak macroeconomic environment, there will be increased pressure for companies to cut costs and the outsourced service industry could stand to gain from this. in this respect, we are very well placed as our near and offshore services provide those companies looking to make savings with a fast and effective solution. an economic downturn is also a potential growth driver for our collections business, which we are determined to grow into one of the world’s leaders in the future.

Looking ahead, i am conﬁdent that Transcom will be a key beneﬁciary of many of the trends in the CrM and CMs industries. The fact that we operate a consistent technological platform across all of our centres means that we only need to invest in new technology once and can then deploy it to multiple locations without additional development costs. it also means that we can offer clients consistency in terms of the services we offer them and the way the quality of these services is benchmarked and judged in different locations. also, as the convergence between automated and human contact continues to become a reality, Transcom’s investments in new technologies such as voice recognition and automation will begin to pay big dividends as we can offer clients a holistic customer interface that caters to the increasing tendencies toward customer self help and the intelligent integration of human contact through a variety of media channels.

The key ingredient in our recipe for success continues to be Transcom’s people, without whom it would not have been possible to grow into one of the leading outsourced services organisations in the world. i would like to take this opportunity to once again thank our employees for all their hard work in this truly transformational year for Transcom. i would also like to thank our clients for placing their trust in us and our shareholders for their continued support and patience. The building blocks are now in place to drive performance improvements going forward which should deliver beneﬁts to employees, clients and shareholders alike.

Keith Russell, President and Chief executive ofﬁcer

(22)

We are one of the fastest growing global outsourced customer contact and debt collection companies in the world. our main objective is to support our clients in building strong,

lasting and proﬁtable customer relationships, by delivering the most cost-effective solutions with unparalleled performance and quality. in practice, this means…

TRUE CUSTOMER RELATIONS MANAGEMENT…

We treat our clients’ customers as our own, securing high customer satisfaction and loyalty. regardless of what stage in the lifecycle a customer may be in, we handle each interaction with care and professionalism, whether the contact being made is in relation to sales, information requests, invoice queries, technical issues, reminder services, debt collection, interpretations or any other requests.

EXCEPTIONAL QUALITY AND EFFICIENCY…

With highly skilled and motivated people, supported by proven quality control and improvement processes, combined with thorough training programmes, we deliver top quality services. our state-of-the-art technology and workforce planning management empower our people to perform at their peak, resulting in high quality and efﬁcient service provision.

‘RIGHT SHORE’ SOLUTIONS…

By carefully selecting the best possible locations for our contact centres, with an outstanding availability of customer relations professionals, we are focused on delivering the highest quality services for our clients at cost- effective prices. We utilise our unique global footprint to deliver high-value cross-border solutions, providing services to the uK and usa from our Baltic and asian operations, to France and italy from Tunisia, to Finland from estonia, to spain from Chile, and to Germany from Poland, Lithuania, Hungary or Croatia. We also provide multilingual services from strategic market locations with unsurpassed quality and cost advantages, serving clients worldwide.

HIGH GROWTH WHILE MAINTAINING CONSISTENCY…

With more than 17,300 trained professionals working in 72 service centres, we are the growth leader in the customer relationship management and credit management industries. We utilise uniform technology, processes and organisational structures in every centre, giving us the ability to replicate and enhance our clients’ service requirements consistently and rapidly across all country markets.

OUR PEOPLE ARE OUR GREATEST ASSET…

We are a people company. We select the best and foster a dynamic and ﬂexible attitude, encouraging our people to excel in their work. our people are proud of our achievements. no matter how big we get, we will always maintain our entrepreneurial spirit. We overcome all obstacles in pursuit of the needs of our clients and, most importantly, we have fun doing it!

END-TO-END GLOBAL CREDIT MANAGEMENT…

From invoicing through to collection and debt surveillance, we specialise in managing our clients’ receivables, utilising the resources and investments in our contact centres. With scalable resources in a truly professional production environment, we ensure cost-efﬁcient recovery with excellent results. With access to a 24/7 platform in 29 countries and extensive human resources, we can maximise the number of debtor contacts ensuring high recovery rates. in order to maintain and improve our clients’ image and branding, our specialists use their soft customer-facing skills in the process of amicable debt collection.

Main Course 10

THE TRANSCOM DIFFERENCE

(23)

PAELLA VALENCIANA

BY

MARIA VEGA DIEZ SENIOR TEAM LEADER

MADRID, SPAIN

(24)

PAELLA VALENCIANA

This is a traditional dish, typical of Valencia in Spain.

SERVES 4

3 cups rice / 2 chicken fillets, chopped / 16oz clams / 8oz squid, diced / 8oz prawns / 1 small onion, chopped / 2 red tomatoes, chopped / 1 red pepper, chopped / 1 green pepper, chopped / 1 cup frozen green peas / 2 cloves garlic / salt / a pinch of saffron /

½ cup olive oil / parsley

First, wash the clams and put them in a saucepan. Boil in salted water until the clams are open. Peel the prawns, put the shells and heads in a pan and then boil them and keep the stock for later.

Heat the oil in a “paellera”, which is a special shallow pan for making paella. Fry the chopped chicken ﬁllets until golden, then add the chopped squid. After 2 minutes add the onion, tomatoes, peppers and green peas. Leave them to fry for about 15 minutes, stirring occasionally, until completely cooked through. Now add the rice and the stock from the clams and prawns, plus 5 cups of hot water.

Mix the saffron, garlic and parsley and add them to the pan. Leave for 10 minutes on a high heat, then lower the heat for another 8 minutes. Add more hot water if necessary. When the rice is tender, add the clams and the peeled prawns. Turn off the heat and wait for a few minutes before serving. A glass of chilled white wine is the perfect accompaniment to this typical Spanish lunchtime dish!

MARIA VEGA DIEZ SENIOR TEAM LEADER MADRID, SPAIN

I work as a senior team leader in the Santander Central Hispano phone banking service.

I love my job because it allows me to be in close communication with my colleagues. It is a great motivation to be able to help the people in my team, and the frantic work pace keeps me constantly active.

I live and work in Madrid.

I have two children and I enjoy spending my time with them – they are my inspiration.

I love cooking and I chose paella, a typical Spanish dish, because of its ingredients from the earth, wind and sea!

I invite you all to dare to cook this delicious dish!

I invite you all to dare to cook this delicious dish!

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Main Course 11

HOW WE HELP OUR CLIENTS

We are committed to providing our clients with a depth of customer management solutions that is unmatched in the market, focusing not only on cost optimisation

but on sharing strategic outcomes. our core services are:

CUSTOMER CARE SOLUTIONS

Customer satisfaction is the core of our business and we understand the importance of building loyalty and trust. as goods and services become more and more commoditised, businesses must compete through superior customer service. We ensure efﬁciency and reliability, and guarantee a positive customer experience whether the subject of the contact is a simple information request, a complaint, a billing query, a technical issue or a booking.

independently of the channel of communication, we tailor-make optimised solutions for our clients, based on our state-of-the-art technology and large pool of talented customer care professionals.

CREDIT MANAGEMENT SERVICES

Possessing a unique blend of collections and customer relation skills, combined with efficient technology and a wide range of resources, we provide next-generation credit management services. From sales ledger management to debt surveillance and debt purchasing, we are capable of handling the most complex cases in terms of scope and substantial volumes, ensuring a smooth payment process, early identification and solution of conflicts, efficient cash flow and high customer retention.

CUSTOMER ACQUISITION, DEVELOPMENT AND RETENTION PROGRAMMES

Combining empathetic customer contact with sophisticated sales skills, we ensure an altogether positive customer experience while optimising revenue for our clients and reinforcing their customer base. regardless of the origin of the contact, we effectively convey the appropriate sales message. our methodology is refined and adapted to the specific type of sales be it new sales or cross- and up-sales promoting a complementary or higher value product or service to an existing customer. retention and win-back programmes fight churn while increasing average customer lifetime value. We motivate our sales agents by using our “balanced score card”

reward system, ensuring revenue generation and enhanced brand reputation.

MARKET RESEARCH AND INTELLIGENCE

understanding existing customer needs, as well as attracting the attention of new prospects and turning them into loyal customers, is critical to any business development strategy. We provide market analysis and research to support clients’ operational plans, as well as lead generation and qualiﬁcation. We also provide customer satisfaction surveys to assist with the identiﬁcation of development potential, in conjunction with information and product campaigns to engage new customers. using the latest technology, we reach more people in a shorter amount of time, whilst maximising critical customer intelligence data.

CUSTOMER RELATIONSHIP MANAGEMENT CONSULTING

our internal team of CrM professionals develops customised and cost-effective solutions that identify and resolve clients’ challenges. With service centres across the globe, combined with our high levels of operational and technical experience, we are ideally placed to support our clients in meeting their own customer management development requirements. our cross-functional teams, including business process and technology experts, have a track record of delivering robust CrM platforms and establishing contact centres on time and on budget.

We capitalise on our detailed knowledge in order to add value to our clients across a wide range of sectors.

LEGAL SERVICES

Through our team of highly qualiﬁed and experienced lawyers we offer support for all aspects of contract and commercial law. We provide clients with a consumer service that covers everything from legal communications support to changes in title and inheritance. We also deal with treasury matters such as bond issues/isDas contracts, commercial debt collection, power of attorney veriﬁcation, publication of legal bulletins and requests for information regarding new regulations and contract development.

INTERPRETATION

in support of our clients’ multilingual business and end-customer environment, we offer on-demand, over-the- phone interpretation services, providing fast, reliable and professional language assistance. our specialised interpreters handle assignments in a large variety of sectors, including healthcare, governmental departments, and the manufacturing industry, helping our clients to overcome language barriers independently of location.

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Business innovations are critical in order to stay ahead of industry expectations.

To us, innovation is the provision of alternative solutions and new ways of approaching business challenges.

SELF SERVICE – ‘CLICK HERE TO SPEAK WITH AN AGENT NOW’

Transcom continues to develop innovative customer interaction technologies that offer clients cost-effective and high quality customer solutions. our investments in voice recognition and interactive online self service are two key products to be introduced in 2008 which will tangibly reduce client costs, while at the same time meeting their customer satisfaction requirements. These innovations also meet the end users’ growing desire to solve problems independently.

HOME WORKING – HOME IS WHERE THE SMART IS

With our clients looking for Transcom to provide them with innovative and effective customer contact solutions, we piloted a home-sourced solution for north america in 2006 and significantly expanded this solution throughout north america and europe this year. utilising work-at-home professionals, this solution offers unparalleled employee excellence coupled with flexible project solutions. it also delivers cost and business continuity benefits whilst complementing the breadth of our traditional contact centre operations.

SU CASA ES NUESTRA CASA (YOUR HOUSE IS OUR HOUSE)

Long-term stability and cost management are the ultimate goals when evaluating outsourcing partners. When Transcom works with a strategic partner on an in-house takeover or a call centre buy-out solution we enable the creation of a new outsourcing model. This involves a complete transfer of a company’s customer relationship management agents and iT infrastructure, allowing organisations to effectively lease back the centre, eliminating overheads and Hr responsibilities. our customer management expertise ensures that a full transfer of customer support or collections divisions to Transcom achieves maximum results in the shortest payback period without undergoing lengthy transition processes and complex labour issues. at the same time, clients also beneﬁt from near-term capital infusions that Transcom provides directly to their company.

CALL CENTRE ‘ON-DEMAND’ – USE OUR INFRASTRUCTURE, NOT YOUR CAPEX

Together with our CrM software partners, Transcom offers clients who wish to maintain in-house operations the ability to lease a fully licensed and implemented call centre solution without the need for any CaPeX investment or technical implementation. using the existing systems running within Transcom’s infrastructure, clients can quickly and easily create a state-of-the-art solution without the traditional risks associated with software implementations.

TRANSBORDERS – GOING NATIVE

By attracting native speakers from high-cost countries and employing them in lower-cost countries, we are able to offer onshore quality at offshore prices. We have run the TransBorders programme since 2004 and the results have been spectacular. While offering clients an extremely cost efﬁcient and high quality service with native speakers servicing their home country from a lower cost location, we also play an important part in our employees’ lives, giving them a chance to experience life in another country and an education that will stay with them throughout their professional careers. Today, almost all offshore call centre business is based on people utilising a second or third language skill to provide the service. The difference with TransBorders is that it involves the use of our agents’ ﬁrst and natural language.

TRANSVOICE – COSTS LOST IN TRANSLATION

By utilising call centre technology, we have dramatically reduced the cost of interpretation services for our clients. The key benefit of this service is that our clients can request immediate “on-demand” interpretations over a conference bridge without booking in advance and they can purchase the service in smaller time slots without incurring any travel expenses for the interpreters. The market for these services is significant both in the private and public sectors. The public sector market has grown significantly, driven by eu legislation providing the right to all eu residents for interpretation services when dealing with government bodies.

Main Course 12

EVOLVING OUR OFFERINGS

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POLISH BIGOS

BY

MONIKA BANACKA HUMAN RESOURCES

GDAŃSK, POLAND

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POLISH BIGOS

Bigos is Poland’s national dish. It is a rich meat stew which, in the past, was eaten by the Polish aristocracy when taking part in winter activities such as hunting. Traditionally, it would have included more game such as wild boar or venison, but now it is usually made with pork.

If you have access to wild boar this makes a great and more authentic substitute!

2lbs sauerkraut, washed and drained / 2lbs white cabbage, shredded / 1lb kielbasa (traditional Polish sausage), sliced into ½ inch pieces / ½lb smoked ham, cubed / ½lb smoked pork, cubed / ½lb bacon, chopped / ½lb beef or venison, cubed / 2oz dried mushrooms / 4 pitted prunes, chopped / 2 apples, cored and cubed / 1 tomato, diced / 1 onion, diced / 2 cloves garlic, minced / 5 dried plums / 1 teaspoon allspice / 2 bay leaves / 1 tablespoon peppercorns /

½ cup red wine

Simmer the cabbage until soft (around 45 minutes), then drain. Meanwhile, cook the bacon and set aside, saving the fat. In the bacon fat, sauté the onions and garlic, and brown the remaining meat except the kielbasa.

Place all the ingredients in a pot and cook at a low temperature in the oven for 5-10 hours.

Finally, place on the stove, bring to a boil and simmer for 2-3 hours. Refrigerate any leftovers and reheat for serving. The ﬂavour improves each time, peaking around the third day.

MONIKA BANACKA HUMAN RESOURCES GDAŃSK, POLAND

I started working here as a CSR in August 2003 and now I’m Human Resources Coordinator in Gdańsk.

I enjoy the work at Transcom because I like new challenges and I like to work with people. Transcom also gives me the opportunity to develop my career and skills.

I don’t have much free time but, when I do, I like to spend it in an active way – swimming, jogging or visiting the ﬁtness club. I also like to listen to music, read books and watch movies.

I chose this recipe because it is Poland’s national dish and because it’s so tasty!

The flavour improves each time, peaking around the third day

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Transcom serves thousands of national and multinational clients who are active in various vertical markets across the globe. Transcom’s tailored solutions focus on service excellence and are designed to provide clients with genuine advantages and beneﬁts

by enhancing their growth prospects, heightening efﬁciencies and strengthening customer relationships.

COMMUNICATIONS

Transcom has unrivalled experience in the communications sector, providing “right shoring” alternatives for customer acquisitions, technical support, loyalty programmes, reminder services and collections solutions for telecom clients.

Tele2, europe’s leading alternative telecom operator with over 25 million customers spread across 15 countries, has been a key client for over a decade in most of our markets.

Telenor is emerging as one of the fastest growing providers of mobile communications services worldwide, and is also the largest provider of TV services in scandinavia. Transcom works with Telenor and associated brands in the nordic region.

FINANCIAL SERVICES

several banks, insurance companies and ﬁnancial institutions have become long-term partners, relying on Transcom to handle different aspects of their customer interaction, from credit card and insurance policy customer acquisition and processing, cross- and up-sales, and account queries to reminder services and recovery of receivables.

Citigroup, the leading global ﬁnancial services company with more than 200 million customer accounts, has been a Transcom client since 2002 in several geographies, including Czech republic, spain, Portugal and the uK.

AIG, the leading international insurance organisation with operations in more than 130 markets, launched a collaboration with Transcom in 2002, which is today operational in many countries, including Hungary, Lithuania, Latvia and estonia.

TRAVEL AND LEISURE

one of Transcom’s fastest growing vertical markets is the travel and leisure sector. We support several airlines, hotel chains and online travel agencies with bookings and reservations, cross- and up-sales, lost luggage handling, customer support and invoice management.

Travelport operates one of the world’s largest networks of travel brands, offering content and services in more than 130 countries, and has partnered with Transcom for multilingual support from the Baltic region since 2005.

Sterling Airlines is scandinavia’s largest, and europe's fourth largest, low cost airline with more than 40 destinations in europe. Transcom has provided services since 2004, and currently operates from Denmark and sweden.

Main Course 13

SUPPORTING OUR PARTNERS’ GROWTH

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UTILITIES

Transcom has grown its presence in the utility sector over the last few years. This is an industry marked by privatisation, intensiﬁed competition and a higher demand on professional customer management. Transcom provides credit management services, new customer acquisition, customer care solutions and ﬁrst-level technical support to a number of national and multinational utility companies.

E.ON, the world's largest investor-owned energy service provider, has collaborated with Transcom in the swedish market since 2005.

Total is the fourth-largest publicly traded integrated oil and gas company and a world class chemicals manufacturer, operating in more than 130 countries. Total has been partners with Transcom in Germany since 2000.

MEDIA

Transcom also supports several leading companies in the media sector, an industry that currently faces ﬁerce competition and low switching costs, where high customer service quality and retention and customer win-back programmes are important pieces of the service portfolio.

SKY Italia (a news Corporation Company) is the leading supplier of premium satellite television in italy, with more than 4 million subscribers, which represent 13 million spectators. Transcom has supported sKY’s customer contact needs in italy since 2006.

IMP (international Masters Publishers) operates in more than 25 countries worldwide, marketing publications in card and book format, as well as through new media channels. iMP began working with Transcom in Lithuania in 2002, and since then, the collaboration has grown to include italy, Czech republic, spain and Portugal.

SUPPORTING OUR PARTNERS’ GROWTH

Main Course

14

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CLASSIC PORK OR CHICKEN ADOBO

BY

MARIA CANONO

CUSTOMER SUPPORT

MANILA, THE PHILIPPINES

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CLASSIC PORK OR CHICKEN ADOBO

1kg pork or chicken / ½ cup soy sauce / 5 tablespoons vinegar / black pepper / 3-5 cloves garlic / 1 small onion / salt

Chop the meat into pieces and prepare the other ingredients for the marinade in a mixing bowl – soy sauce, vinegar, black peppercorns (partly ground and whole), cloves of garlic (crushed), onion (thinly sliced), and salt. Add the chopped meat and let the mixture stand for 2 hours so that the meat can absorb all the Adobo ﬂavours before cooking.

Put the mixture in a medium-sized casserole dish or pan, and place on a stove. Bring to the boil and simmer until the natural juice of the meat comes out, or until tender. If the meat is lean, add a little oil to give a bit more consistency to the Adobo.

Another variation of Adobo is called Humba. Just add bay leaves and a little sugar to make it taste sweet and sour, aside from the above ingredients. You can also try Pininyahang Adobo by adding pineapple juice, bay leaves and a little sugar to get a distinctive taste.

MARIA CANONO CUSTOMER SUPPORT

MANILA, THE PHILIPPINES

I work in billing and support, helping customers with different requests.

Would you believe that my job is my form of relaxation?

Well, it is! I enjoy my work and the people are very warm and friendly. This job has a constant learning curve because I work on several campaigns!

I am originally from the southern part of the Philippines.

However, I succumbed to the fast and hectic metropolitan lifestyle so now I live and work in the capital, Manila.

As a kid, I used to play the piano and the guitar. But as I grew up, I limited myself to listening to music, dancing and singing in my own spare time. I love to read novels and magazines and I write whenever my imagination is stirred.

Although I love vegetables, there is nothing to compare with the pride of the Philippines: the famous Adobo!

Aside from its meatiness, Adobo is also very spicy.

Not only is it mouth-watering, but it is also inexpensive and very easy to prepare. So what are you waiting for?

Get cooking!

So what are you waiting for?

Get cooking!

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Main Course 15

IMPROVING OUR BUSINESS PERFORMANCE

With a consistent organisational structure and culture, the same technology platforms, and the application of standardised modular processes throughout the Company, we ensure quick scalability as well as high ﬂexibility to meet speciﬁc client needs.

Moving forward, we will continue developing customer interaction-related services, adding new solutions by leveraging our service synergies. We will also expand our geographical coverage, enhancing our european and english language near and offshore solutions as well as launching local service provision in new developing markets.

EXPANSION OF NEAR AND OFFSHORE SERVICES

During the year, we have added new offshore markets to our portfolio. The continual strengthening of our ability to deliver near and offshore services from low-cost countries to higher-cost countries will remain a key foundation of our strategy, from which all of our services can grow. Further expansion into eastern europe, where the outsourcing opportunities are continuously growing, as well as select opportunities in asia, are also strategic priorities in our international development plans.

MAXIMISING SYNERGIES BETWEEN CREDIT MANAGEMENT AND CRM OPERATIONS

During the year, 7 new markets were added to the credit management service portfolio and we now serve 20 markets. The development and expansion of the credit management business, which is typically more than twice as proﬁtable as the traditional CrM business, will remain a strategic focus. Transcom beneﬁts from an excellent synergy between the core investments we have made in contact centres and the collections business requirement, enabling us to create extremely cost-effective, high-quality products.

DEVELOPING HIGH VALUE, INNOVATIVE SOLUTIONS

Dynamism is part of our Dna. We are always moving quickly, inventing better ideas and better ways of doing things. This ethos has been instrumental in developing solutions such as TransBorders, TransVoice and our home working programme – all of which continued to grow during the year. We will continue to constantly innovate and pilot our ideas and select the best concepts to develop across our business.

CREATING SOLUTIONS FOR THE FUTURE

over the coming years, we will continue to further leverage the synergies between traditional customer relationship solutions and credit management utilising our existing infrastructure. We will also develop new solutions in the areas of customer self service and automated options. Beyond this, we will also develop deeper specialisation within speciﬁc industries that contain the highest future growth prospects.

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once again, our people really made the difference this year by showing their enthusiasm, goodwill and generosity on behalf of a variety of charitable causes.

We are proud to present just a few of the many examples that demonstrate our ﬁve key values being put into practice to help those most in need during 2007.

SWEDEN

employees once again decided to forego their traditional Christmas gift from Transcom in favour of donating the designated budget to charity. sos Children’s Villages – an organisation dedicated to the support and protection of orphaned or abandoned children across the globe – was the main beneﬁciary, receiving an incredible €13,800 as a result!

SPAIN

in august 2007, the ica region of Peru was hit by a devastating earthquake measuring 8.0 on the richter scale, which destroyed more than 58,000 homes. Team members at our Madrid and León sites in spain quickly joined forces with charity organisation Mano a Mano to collect medical supplies, food and clothing, which were sent directly to help those most in need.

CANADA

our Canadian colleagues made tremendous efforts in 2007, taking part in a variety of charity initiatives. To give just one example, country-wide dress-down Fridays led to the collection of more than Ca$130,000 (approximately €87,000). These funds were donated to a number of different organisations throughout the year as nominated employees selected their favoured recipient charity on a monthly basis.

FRANCE

More than 500 Transcom agents freely gave their time to handle telephone donations totalling more than €350,000 in aid of a national television appeal, which raised money and awareness on behalf of the eLa (european association against Leukodystrophies).

UNITED KINGDOM

our st albans site was abuzz with fundraising activities throughout the year as teammates helped to raise more than €3,500. notable among these events was the auction of senior Management Promises, the proceeds of which were shared between the Multiple sclerosis society and Breast Cancer research.

SOCIAL RESPONSIBILITY

PUTTING OUR VALUES TO WORK IN AID OF OTHERS

Main Course

16

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HOTCHPOTCH BRUSSELS SPROUTS WITH ONIONS

AND BACON

BY

WENDY WERINK HR ASSISTANT

GRONINGEN, THE NETHERLANDS

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HOTCHPOTCH BRUSSELS SPROUTS WITH ONIONS

AND BACON

SERVES 4

1kg potatoes / 500g brussels sprouts / 100ml milk / 250g streaky bacon in small pieces / 3 onions / salt / pepper / nutmeg / 1 teaspoon curry powder / butter

Peel the potatoes and then wash them and put them in a pan with water and a pinch of salt.

Clean the brussels sprouts and put them on top of the potatoes. Bring the water to the boil and simmer for about 20 minutes.

Slice the onions ﬁnely. Grill the bacon and the onions, adding a little bit of butter to the tray.

Heat the milk.

Drain the potatoes and sprouts and mash them up. Add the warm milk, the curry powder, the bacon, onions and a touch of pepper to taste. Eet smakelijk! Enjoy your meal!

WENDY WERINK HR ASSISTANT GRONINGEN,

THE NETHERLANDS

I’m an HR assistant.

The pace of the day and the fact that no day is the same. There are always people who need you for all sorts of things and it’s a good feeling that you can really help!

I work and live Groningen, Netherlands.

Interior design – I love to give people advice on how to make a home more comfortable, modern and stylish. I also like to cook for my friends and I’ve been in a cooking club with three friends for almost ﬁve years now.

A hotchpotch is a typical Dutch recipe – you can make it in a lot of different variations and it’s very tasty in wintertime! It is also great with spicy meatballs.

It is also great with spicy meatballs.

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Main Course 17

SOCIAL RESPONSIBILITY

SUSTAINABILITY – OUR PRIORITY

at Transcom, we know that we consume a signiﬁcant amount of energy and other resources to keep our operations going…and growing.

our aim is to continue providing our clients with industry-leading service, while taking steps toward becoming an increasingly energy-efﬁcient, environmentally friendly organisation.

TOWARDS A GREENER TECHNOLOGY PLATFORM

We have made, and will continue to make, tangible strategic changes to the way our iT Platform is structured, bringing about increased operational efﬁciency and, of course, reductions to our carbon footprint.

Server virtualisation Transcom’s server virtualisation programme has already enabled us to consolidate 70 of our servers into just 3 during 2007. This sort of change not only allows us to reduce the energy consumption of our servers but also of the associated infrastructure required to keep them running 365 days a year, including storage space, lighting, security systems and, most important of all, air conditioning. This process will continue in 2008.

For example, in Vélizy, France, 29 servers will be consolidated into just 4 using VMware technology.

Thin client hardware While a thin client terminal may look like a normal PC, in fact it does not contain a hard disk and simply acts as an information vehicle: the user accesses applications and information which are stored on a central server. Thin clients enable a cutback in energy consumption of at least 50% when compared to normal PCs and are a key component of Transcom’s iT strategy. We have already installed 300 thin clients and many more are planned for 2008.

THINKING BEFORE WE FLY

Transcom launched a revised travel policy for its employees, outlining a more stringent ﬂight approval process and encouraging business travellers to consider alternatives such as video conferencing, conference calls or online meetings. This measure dramatically reduced the environmental impact of our business activities in 2007.

A NEW LEAF FOR SUSTAINABILITY

We have developed sustainability Best Practices with the aim of encouraging our people to switch off, separate waste and recycle in the workplace.

PAPER TALK

our Contact Centre in-Line (CCiL) application enables us to deliver paper-free training to more than 8,000 Transcom employees. We conservatively estimate that in 2007 more than 200,000 sheets of a4 have been saved as a result.

in addition, our quarterly Company-wide video news bulletin, Transnews, continues to keep Transcom stakeholders up-to-date with the latest Company developments without using a single sheet of paper; just one edition of our previous printed news magazine, TransCommunicator, used more than 100,000 sheets of a4!

OUR RECIPE FOR SUSTAINABILITY

This year’s annual report is yet another example of our sustainability initiatives as we believe it is the world’s ﬁrst truly re-usable annual report! it can be kept in the kitchen and used over and over again for its diverse mix of recipes. in the coming years, we plan to create reports which contain interesting, fun and useful content that can be re-used long into the future. in addition to this, all of the paper used in this report is FsC certiﬁed, ensuring it is as environmentally friendly as possible.

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Main Course 18

BOARD OF DIRECTORS

William Walker

Cristina Stenbeck

Mia Brunell Livfors

James Beers

Roel Louwhoff

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Main Course 19

BOARD OF DIRECTORS

WILLIAM WALKER

Born 1967

Chairman of the Board of Transcom WorldWide S.A. since 2005.

Member of the audit and remuneration Committees of Transcom Worldwide s.a. Ba, st. Lawrence university, usa; MBa, Harvard university, usa. President and Chief executive officer of Walker & Dunlop, inc. and Green Park Financial, LP, two real estate financial services firms based in Washington, DC. other Board assignments:

Walker & Dunlop, inc. and sustainable Technology Capital, LP.

CRISTINA STENBECK

Born 1977

Member of the Board of Transcom WorldWide S.A. since 2003.

Member of the remuneration Committee of Transcom WorldWide s.a. B.sc. Georgetown university, Washington DC, usa. other Board assignments: Chairman of investment aB Kinnevik since 2007. Vice Chairman of investment aB Kinnevik 2004-2007 and industriförvaltnings aB Kinnevik 2003-2004. Chairman of emesco aB.

Member of the Board of Metro international s.a., Millicom international Cellular s.a., Modern Times Group MTG aB, Tele2 aB and Korsnäs aB since 2003. Previously Member of the Board of invik & Co. aB 2003-2007.

MIA BRUNELL LIVFORS

Born 1965

Member of the remuneration Committee of Transcom WorldWide s.a. studies in Business administration, stockholm university. President and Chief executive ofﬁcer of investment aB Kinnevik. Previously, Chief Financial ofﬁcer of Modern Times Group MTG aB 2001-2006. other Board assignments: Member of the Board of Metro international s.a., Tele2 aB, CTC Media inc. (a russian associated company to Modern Times Group MTG aB), Korsnäs aB and Mellersta sveriges Lantbruks aB since 2006, as well as Millicom international Cellular s.a. and Modern Times Group MTG aB since 2007. Previously Member of the Board of invik & Co. aB 2006-2007.

JAMES BEERS

Born 1939

Chairman of the audit Committee of Transcom WorldWide s.a. Bs, Ben Franklin university, usa; Certiﬁed Public accountant. Founding Partner of Beers & Cutler, the largest Washington, DC based business consulting and CPa ﬁrm, and member of the unitholders advisory Committee at Henderson Global investors. other Board assignments: Co-Chairman of McarthurGlen, europe’s leading designer outlet shopping mall developer and operator.

ROEL LOUWHOFF

Born 1965

Member of the audit Committee of Transcom WorldWide s.a. MBa from rijksuniversiteit, Groningen in the netherlands. Currently Chief executive officer of BT operate, part of British Telecom plc, leading a global team of 15,000 people running the communications services for customers over BT's core network and systems. Previously Chief operating officer for the international business process outsourcer ClientLogic Corporation. Before that, Chief operating officer at snT Group, a european call centre provider. His early career was as a management consultant with andersen Consulting where he worked in the CrM practice in europe and north america.

AND THE ACCOUNTS FOR 2007

OUR PEOPLE

THEIR RECIPES