And the Accounts for 2007

OUR PEOPLE THEIR RECIPES AND THE ACCOUNTS FOR 2007 MENU 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 STARTERS “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 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. WHAT WE DO Customer Care and Credit management Customer aCquisition, teChniCal support serviCes development and Service, support and information Sales ledger management, retention to end-customers via phone, front ofﬁce, reminder services, Lead generation, sales e-mail, white mail and web. amicable collections, legal conversion, promotions, collections, debt surveillance bookings and additional sales, and debt purchasing. database registration and market researCh and contract processing, loyalty intelligenCe schemes, retention and Customer insight, competitor Customer relationship win-back programmes. intelligence and citizen statistics. management Consulting Analysis, diagnosis and improvement legal serviCes translations of customer relationship Bond issues, power On-demand, management strategies. of attorney and requests over-the-phone professional for information regarding interpretation service. laws, contract creation and consultancy. WHERE WE ARE Services from 29 countries with over 17,300 employees speaking 33 languages across 72 sites

STARTeRS OUR CORE VALUES

eXCellenCe means standing innovation means creativity, honestY is critical in out, striving for perfection in ﬁnding solutions where others everything we do. Being honest everything we do. It implies see barriers. An open mind means being an open book. examining, improving and creates opportunities and It is from honesty that trust reinventing. overcomes challenges. and loyalty are built.

passion implies enthusiasm, Fun means enjoying the work commitment, energy and pride we do, enjoying the team spirit, in our work. Passion dictates enjoying the daily contact with what we “put in” to life, and our clients. When there is no fun, normally what people “put in” there cannot be lasting will balance what they get out. commitment.

OUR HISTORY

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. PolishCeNT,CanadianNuComm 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.

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 02-03 CR s.r.o. in the Czech Republic Gestel is acquired in July is completed. Transcom also 2002. Keith Russell is launches new centres in appointed CeO in August Croatia, Seville and Tunisia. of the same year. Strong The debt collection business increase in revenues is expanded into 12 countries. and proﬁtability in the following year, as well 00-0 as diversiﬁcation into 95-97 Transcom AB merges call debt collection through Transcom AB established centre operations with the acquisition of CIS. by Kinnevik in Sweden. Transcom europe to form Transcom europe Transcom WorldWide S.A., established by Tele2 a subsidiary of europe in Luxembourg. Industriförvaltnings AB Kinnevik. Transcom WorldWide S.A. listed on the Stockholmsbörsen O-list.

STARTeRS 2 CRAWFISH AND CORN SOUP BY MANDY MARYE EMPLOYEE RELATIONS COORDINATOR LOUISIANA, USA 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!

In SouthLouisiana,liferevolves WHERE DO YOU WORK/LIVE? around seafood I live in Lafayette, Louisiana, USA. (aftermy husband and son) 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!

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. 2007 FINANCIAL AND OPERATIONAL HIGHLIGHTS +11% +15% +2 2007 net sales up % organic non-kinnevik two major acquisitions to €599.2 million, versus related sales up 5% carried out in the year, €540.2 million in 2006. in 2007, excluding with the addition of acquisitions and tele2 international Crm divestments. operator nuComm and leading austrian debt collection company is inkasso. 29% +5 8 Business continuity new contact centres 8 site expansions attained in key countries opened in germany, carried out in the year where tele2 divested the netherlands, poland, in service centres operations, including Chile and lithuania. based in spain, Chile, France and italy, germany, holland, with sales to tele2 poland and lithuania. representing 29% of total sales in december 2007.

Canadian NuComm is acquired In September, IS Inkasso – the The impressive turnaround in August, signiﬁcantly largest CMS company in Austria in the Iberian region, driven increasing Transcom’s North – is acquired to provide a strong by two offshore centres in Chile, American operations and also foothold for Transcom’s CMS has signiﬁcantly improved extending its global footprint business in Central europe. The margins in the region and also through NuComm’s offshore transaction enables Transcom presents exciting development centres in the Philippines. to strengthen its position within opportunities for the future, both The partnership with NuComm the mature markets in the region in nearshore services for the creates the opportunity for as well as to further develop its North American market and accelerated growth for both CMS business in the dynamic local services for the Latin companies through business and economies of eastern europe. American market. operational synergies as well as combined marketing efforts.

STARTeRS 3 2007 FINANCIAL AND OPERATIONAL HIGHLIGHTS

total revenues non-kinnevik related revenues (€millions) (€millions)

599.2 236.3

540.2

444.8

369.7 145.1

286.3 112.9

228.5 215.3 90.7

60.5

38.6 29.7

01 02 03 04 05 06 07 01 02 03 04 05 06 07

gross proFit eBita (€millions) (€millions)

37.8 124.6 37.1

33.1 110.7

93.1 24.4 79.5 20.3

67.3

50.6 45.6 9.0

5.7

01 02 03 04 05 06 07 01 02 03 04 05 06 07

STARTeRS 4 SALTIBARSCIAI BY RYTIS PETRAUSKAS MULTILINGUAL CUSTOMER CARE AGENT VILNIUS, LITHUANIA 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

WHAT DO YOU DO AT TRANSCOM? 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.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB? 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 Thisrecipeisperfect:quick people to work with. Most of them have become my asa brown fox! friends already.

WHERE DO YOU WORK/LIVE? Vilnius, the capital of Lithuania, has been my home for almost four years now.

WHAT ARE YOUR INTERESTS/HOBBIES? 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!

WHY DID YOU CHOOSE THIS RECIPE? 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! OUR MARKETS*

total gloBal outsourCed agent positions 2007 - 200

Agent Positions (000s)

1,345 1,259 the global market for 1,158 338 outsourced offshore 1,059 310 Crm & Bpo services is 283 252 expected to grow by 0.3% annually through 1,007 949 200, signiﬁcantly 875 807 outstripping the growth of onshore outsourcing. Outsourced Outsourced Domestic Offshore this remains a key area of focus for transcom’s 2007 2008 2009 2010 future growth.

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

US$ millions 35,410 Financial services 23,262 30,393 Telecommunications 20,586 24,233 the Communications Manufacturing 15,711 and Financial services Retail, wholesale and distribution 22,140 vertical markets are 15,127 Public sector 10,945 forecast to represent 7,285 Travel, transportation, 7,206 44% of total Crms’ Bpo logistics and hospitality 4,817 market by 202. Energy and utilities 7,001 4,640 Healthcare 4,458 2,802 Media and entertainment 3,968 2,517 Other 2,300 1,517 20072012 Life sciences 1,529 996 20122007

*All data supplied is by Datamonitor. STARTeRS 5 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 STARTeRS 6 MAIN COURSE “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 CHIEF EXECUTIVE’S REVIEW

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.

Keith Russell (Chef)

Main Course 7 CHIEF EXECUTIVE’S REVIEW

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 TUNISIAN POTATO BREIKS WITH OLIVES AND CAPERS BY RIADH CHAIEB BUSINESS MANAGER TUNIS, TUNISIA 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

WHAT DO YOU DO AT TRANSCOM? 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.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB? The need for versatility and working within a young and dynamic team. Getting to know people from different countries and cultures.

WHERE DO YOU WORK/LIVE? I work and live in Tunis, the most opened-minded city Your guests will deﬁnitely in the world! appreciate it!

WHAT ARE YOUR INTERESTS/HOBBIES? Supporting my favourite football team, Club Africain, and discovering the new trendy places to go out.

WHY DID YOU CHOOSE THIS RECIPE? 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. 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

Main Course 9 THE TRANSCOM DIFFERENCE

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 PAELLA VALENCIANA BY MARIA VEGA DIEZ SENIOR TEAM LEADER MADRID, SPAIN MARIA VEGA DIEZ SENIOR TEAM LEADER MADRID, SPAIN

WHAT DO YOU DO AT TRANSCOM? I work as a senior team leader in the Santander Central Hispano phone banking service.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB? 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 invite you all to dare to cook WHERE DO YOU WORK/LIVE? this delicious dish! I live and work in Madrid.

WHAT ARE YOUR INTERESTS/HOBBIES? I have two children and I enjoy spending my time with them – they are my inspiration.

WHY DID YOU CHOOSE THIS RECIPE? 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!

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! 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.

Main Course 11 EVOLVING OUR OFFERINGS

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 POLISH BIGOS BY MONIKA BANACKA HUMAN RESOURCES GDAŃSK, POLAND 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

WHAT DO YOU DO AT TRANSCOM? I started working here as a CSR in August 2003 and now I’m Human Resources Coordinator in Gdańsk.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB? 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.

WHAT ARE YOUR INTERESTS/HOBBIES? The ﬂavour improves each time, I don’t have much free time but, when I do, I like peaking around the third day 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.

WHY DID YOU CHOOSE THIS RECIPE? I chose this recipe because it is Poland’s national dish and because it’s so tasty! SUPPORTING OUR PARTNERS’ GROWTH

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

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.

Main Course 14 CLASSIC PORK OR CHICKEN ADOBO BY MARIA CANONO CUSTOMER SUPPORT MANILA, THE PHILIPPINES MARIA CANONO CUSTOMER SUPPORT MANILA, THE PHILIPPINES

WHAT DO YOU DO AT TRANSCOM? I work in billing and support, helping customers with different requests.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB? 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!

WHERE DO YOU WORK/LIVE? 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.

WHAT ARE YOUR INTERESTS/HOBBIES? So what are you waiting for? As a kid, I used to play the piano and the guitar. But as Get cooking! 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.

WHY DID YOU CHOOSE THIS RECIPE? 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!

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. 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.

Main Course 15 SOCIAL RESPONSIBILITY PUTTING OUR VALUES TO WORK IN AID OF OTHERS 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.

Main Course 16 HOTCHPOTCH BRUSSELS SPROUTS WITH ONIONS AND BACON BY WENDY WERINK HR ASSISTANT GRONINGEN, THE NETHERLANDS 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

WHAT DO YOU DO AT TRANSCOM? I’m an HR assistant.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB? 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! It is also great with spicy WHERE DO YOU WORK/LIVE? meatballs. I work and live Groningen, Netherlands.

WHAT ARE YOUR INTERESTS/HOBBIES? 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.

WHY DID YOU CHOOSE THIS RECIPE? 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. 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. Main Course 17 BOARD OF DIRECTORS

William Walker

Cristina Stenbeck

Mia Brunell Livfors

James Beers

Roel Louwhoff

Main Course 18 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 Board of Transcom WorldWide S.A. since 2006. 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 Member of the Board of Transcom WorldWide S.A. since 2005. 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 Board of Transcom WorldWide S.A. since 2007. 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.

Main Course 19 EXECUTIVE MANAGEMENT

Keith Russell

Carolina Abraham Ben Gujral

François Boulard

Johan Dietmann Jonathan Lee

Alan Giles

Julio Prado Torsten Edebäck

Regimantas Liepa

José Pérez Melber Réal Bergevin

Ignacio De Montis

Main Course 20 EXECUTIVE MANAGEMENT

KEITH RUSSELL (born 1964) Keith was appointed President and Chief executive officer of Transcom in august 2002. Prior to this appointment, he spent five years in a number of senior positions with BskyB’s operations in the uK, including the roles of Commercial Director and Contact Centre operations Director. other assignments include senior positions with PolyGram records (now universal), management development with electronic Data systems (eDs) and with his own iT consultancy and solutions business, which he ran for over five years.

BEN GUJRAL (born 1974) Ben joined Transcom in 2007 as Chief Financial officer. He was previously at DCs Group plc, a uK-listed company specialising in the software and services sector, where he spent five years in various senior finance positions prior to his appointment as Group CFo in 2003. in 2006, Ben was instrumental in executing the sale of DCs to reynolds and reynolds inc. Prior to his experience at DCs, he held positions with Grant Thornton and KPMG, where he specialised in commercial services and iT.

CAROLINA ABRAHAM (born 1973) Carolina joined Transcom in 2003 and currently serves as Human resources Director. Prior to joining Transcom, Carolina was the Catalonian area Manager with antal international, a multinational recruitment consultancy ﬁrm.

RÉAL BERGEVIN (born 1963) réal joined Transcom in 2007 and currently serves as General Manager, north america & asia Pacific. réal was the Ceo and co-founder of nuComm international, a leading north american provider of contact centre solutions. Before co-founding nuComm, réal graduated with a business degree from Wilfrid Laurier university. He began his career in contact centre management working for some of Canada's largest call centre operations, including General Motors, Wardair airlines and rogers Cablesystems. He later became a principal of John Moss associates, a consulting and training company specialising in contact centre management. réal is author of Call Centers for Dummies and 23 steps To an effective Call Center, a comprehensive step-by-step guide to building efficient and profitable call centres.

FRANÇOIS BOULARD (born 1959) François joined Transcom in 2005 and currently serves as General Manager, south region. Prior to this role, François was Managing Director of europe assistance, France and Benelux. He has held Managing Director positions in many multinational companies, including LeasePlan international (aBn amro Group) and Dial France (Barclays Bank). François has experience in B2B and B2C services, with responsibilities for general management as well as sales and marketing.

JOHAN DIETMANN (born 1970) Johan joined Transcom in 1999 and currently serves as Business improvement Director, responsible for providing innovative business solutions by delivering high-quality development, business support and programme management to improve the business according to Transcom’s strategic goals. Prior to this role, Johan worked for two years as the deputy General Manager for Transcom's nordic operations. Before joining Transcom, he held various senior CrM positions in scandinavian companies, including Gallup Group and Kabelvision.

TORSTEN EDEBÄCK (born 1948) Torsten joined Transcom in 1997 and currently serves as General Manager, north region, including the scandinavian market. Prior to Transcom he held various senior positions within the shipping, forwarding and construction industries.

Main Course 21 EXECUTIVE MANAGEMENT

ALAN GILES (born 1958) alan joined Transcom in 2005 and currently serves as Chief Technology ofﬁcer. alan joined Transcom from an eDs subsidiary, where he was responsible for the implementation of the company’s life insurance solutions in europe and the americas. Prior to this, he worked for a global insurer, aViVa, where he held a number of senior management positions in the information Technology department.

JONATHAN LEE (born 1970) Jonathan joined Transcom in 2004 and currently serves as sales and Marketing Director, responsible for the strategic expansion of Transcom’s business development division, including client growth, marketing communications and industry analysis activities. Prior to Transcom, Jonathan was the Managing Director and majority shareholder of Marketlink Ltd from 1998 to 2004, an outsourced call centre acquired by Transcom in March 2004. Before that, he was a strategic consultant holding various positions with accenture and arthur andersen as a CrM and customer contact specialist serving multinational clients throughout north america and the uK.

REGIMANTAS LIEPA (born 1971) regimantas joined Transcom in 2002 and currently serves as General Manager, West & Central region, including the uK, Benelux, Central europe and the Baltic regions. after initially joining Transcom as a country manager, regimantas was appointed a regional general manager to expand eastern european operations resulting in a number of new market developments. From 1997 to 2002, regimantas ran his own CrM service business which was acquired by Transcom in 2002. He holds an MBa degree from the rochester institute of Technology (usa).

JOSÉ PÉREZ MELBER (born 1971) José joined Transcom in 2004 and currently serves as General Manager, iberia region, including iberia and Latin america. Prior to this role, he served as Tele2 Key account Manager for Transcom. Prior to joining Transcom, he served as General Manager of Mapfre asistencia, s.a. in Germany. José holds university degrees in Business administration and insurance sciences.

IGNACIO DE MONTIS (born 1970) ignacio joined Transcom in 2007 and currently serves as Tele2 account Director, responsible for the strategic development and tactical deployment of Tele2 client solutions. Before joining Transcom, ignacio served as Ceo of Tele2 Portugal, following his previous role as Customer operations Manager for Tele2 spain. Prior to this, ignacio held customer care management positions at sol Meliá, the leading hotel and resort chain.

JULIO PRADO (born 1958) Julio joined Transcom in 2003 and currently serves as General Manager, Credit Management, responsible for the overall management and expansion strategy of Transcom's Credit Management services division. Before Transcom, Julio worked at Link Financial Ltd, a leading debt purchase company in the uK. During his 12 years in the credit management industry, Julio held several senior positions, including Ceo and board member of intrum Justitia iberica s.a.. He is a registered spanish lawyer and an LLM from the London school of economics.

Main Course 22 QUICHE LORRAINE BY STÉPHANIE CLAUDE HR ASSISTANT RAON L’ETAPE, FRANCE STÉPHANIE CLAUDE HR ASSISTANT RAON L’ETAPE, FRANCE

WHAT DO YOU DO AT TRANSCOM? I am an HR assistant so I divide my time between external recruitment, internal promotion, integration follow-up, training, reporting, payroll and communication about Transcom in local colleges and other organisations.

WHAT DO YOU LIKE ABOUT YOUR JOB? Every day is different and exciting! Most of the pleasure I have in my job comes from human contact, whether recruiting, searching for talented candidates for internal promotion, or working with other departments. I also like lending a hand in reporting, projects or pay problems, when logic and quick thinking are required.

WHERE DO YOU WORK? I work in Raon L’Etape in the east of France, not far A delicious meal to eat with from Luxembourg and Germany. family or friends. WHAT ARE YOU INTEREST/HOBBIES? My main hobbies are tennis and skiing. I also like decorating my house, so I read a lot of interior design magazines.

WHY DID YOU CHOOSE THIS RECIPE? I chose Quiche Lorraine because it is a traditional regional dish. It is a really easy and quick recipe and it is a delicious meal to eat with family or friends. QUICHE LORRAINE

175g plain ﬂour, plus extra for dusting / salt / 75g softened butter, plus extra for greasing / A small glass of cold water / 250g Gruyere cheese, grated / 200g small strips of bacon, chopped / 5 eggs, beaten / 100ml milk / 200ml cream / salt / pepper / 4 tomatoes, sliced

To make the pastry, sift the ﬂour together with a pinch of salt in a large bowl. Add the butter until you have a soft breadcrumb texture. Add enough cold water to make the crumb mixture come together to form a ﬁrm dough, and then place it in the fridge for 30 minutes.

Roll out the pastry on a light floured surface and then place it in a well-buttered flan dish. Don’t cut off the edges of the pastry yet. Return the pastry to the fridge. Preheat the oven to 190˚C/375˚F. Remove the pastry case from the fridge, line the base of the pastry with baking paper and then fill it with ceramic baking beans. Place on a baking tray and bake blind for 20 minutes. Remove the beans and paper and return to the oven for another 5 minutes to cook the base.

Reduce the temperature of the oven to 160˚C/325˚F. Sprinkle the cheese into the pastry base and add the sliced tomatoes. Fry the small strips of bacon until crisp and sprinkle them over the top. Combine the eggs with the milk and cream in a bowl and season well. Pour over the bacon and cheese. Sprinkle the thyme over the top and trim the edges of the pastry. Bake for 30-40 minutes or until set. Remove from the oven and allow to cool and set further. THE TRANSCOM SHARE AND TRANSCOM SHAREHOLDERS

The annual General Meeting of Kinnevik shareholders held on May 18, 2001 voted to distribute new a and B shares in Transcom WorldWide on the stockholmsbörsen o-List and on the nasdaq stock exchange in new York. The new shares consequently began trading on september 6, 2001, under the symbols TWWa and TWWB in stockholm, and TrCMa and TrCMB in new York. in May 2003, Transcom de-listed its shares from the nasdaq stock exchange. Transcom class a and B shares are currently listed on the nordic exchange’s Mid Cap list under the symbols ‘TWW sDB a’ and ‘TWW sDB B’. The chart below shows the share price for the Transcom B share in 2007, measured against the relevant stock market index (rebased).

The market capitalisation of Transcom WorldWide s.a. at the close of business on December 31, 2007 was seK 3,373 million or €357 million.

TRANSCOM SHAREHOLDERS AS OF DECEMBER 31, 2007

Transcom shareholders Total a shares B shares % Capital % Votes investment aB Kinnevik 12,627,543 12,627,543 0 17.3% 34.6% swedbank robur Funds 6,749,823 3,671,065 3,078,758 9.2% 10.0% emesco Group 3,336,905 3,336,905 0 4.6% 9.1% ssB CL omnibus aC oM09 (30 PCT) 3,143,400 1,229,600 1,913,800 4.3% 3.4% Catella Funds 2,819,246 904,400 1,914,846 3.9% 2.5% JP Morgan Chase 2,542,914 0 2,542,914 3.5% 0.0% seB Funds 2,423,491 1,646,717 776,774 3.3% 4.5% nordea Funds 1,726,656 36,600 1,690,056 2.4% 0.1% Fjärde aP-Fonden 1,524,900 382,800 1,142,100 2.1% 1.0% HQ Bank Funds 1,364,272 20,000 1,344,272 1.9% 0.1% siF 1,300,550 732,470 568,080 1.8% 2.0% Carnegie 1,276,421 353,838 922,583 1.7% 1.0% JP Morgan Chase Bank, W9 1,247,324 2 1,247,322 1.7% 0.0% estate of Jan H. stenbeck 1,205,500 1,205,500 0 1.6% 3.3% Danske Funds 1,120,352 3,000 1,117,352 1.5% 0.0% Länsförsäkringar 1,101,925 948,800 153,125 1.5% 2.6% Citibank 979,109 0 979,109 1.3% 0.0% Lannebo Fonder 919,800 309,200 610,600 1.3% 0.8% skandia Liv 893,806 730,487 163,319 1.2% 2.0% Gamla Livförsäkringsaktiebologet 864,585 864,585 0 1.2% 2.4% subtotal 49,168,522 29,003,512 20,165,010 67.2% 79.4% other 23,988,675 7,576,534 16,412,141 32.8% 20.6% Total 73,157,197 36,580,046 36,577,151 100% 100%

THE TRANSCOM SHARE (SEK) TRANSCOM VS. THE OMX STOCKHOLM MID-CAP

30 1.1.07 8.4.07 6.5.07 3.6.07 1.7.07 9.9.07 14.1.07 28.1.07 11.2.07 25.2.07 11.3.07 25.3.07 22.4.07 20.5.07 17.6.07 15.7.07 29.7.07 12.8.07 26.8.07 23.9.07 7.10.07 4.11.07 2.12.07 21.10.07 18.11.07 31.12.07 Transcom Class B share OMX Stockholm Mid-Cap Main Course 23 DIRECTORS’ REPORT

PRINCIPAL ACTIVITIES Transcom WorldWide is an international provider of outsourced services and solutions in the field of customer contact. its principal areas of business are the provision of Customer relationship Management and Credit Management products and services utilising its contact centres around the globe. Transcom provides solutions for a wide range of companies, targeting its core vertical markets, which include communications, financial services, travel and leisure, media, utilities and retail. Transcom offers its clients a broad array of relationship management services, including customer care solutions, credit management services, customer acquisition, development and retention, market research, CrM consulting, legal services and interpretation work. Client programmes are tailor-made and range from single applications to complex programmes, which are offered on a country-specific or international basis in more than 33 languages from 72 centres in 29 countries.

CAPITALISATION as at December 31, 2007, the issued and outstanding share capital was €31.5 million consisting of 36,580,046 Transcom WorldWide a shares and 36,577,151 Transcom WorldWide B shares with a total market capitalisation of seK3,373 million or €357 million.

STOCK EXCHANGE LISTING on september 6, 2001, Transcom was listed on the o-list of the stockholm stock exchange, the stockholmsbörsen. Transcom class a and B shares are currently listed on the nordic exchange Mid Cap list under the symbols “TWW sDB a” and “TWW sDB B”.

EXECUTIVE MANAGEMENT in august 2002, Keith russell was appointed as President and Chief executive officer of Transcom WorldWide. Torsten edebäck (General Manager, north region) joined Transcom in 1997. Johan Dietmann (Business improvement Director) joined Transcom in 1999. regimantas Liepa (General Manager, West & Central region) joined Transcom in 2002. Carolina abraham (Human resources Director) and Julio Prado (General Manager, Credit Management) joined Transcom in 2003. Jonathan Lee (sales and Marketing Director) and José Maria Pérez Melber (General Manager, iberia) joined Transcom in 2004. François Boulard (General Manager, south region) and alan Giles (Chief Technology officer) joined Transcom in 2005. in 2007, Ben Gujral joined Transcom as Chief Financial officer and ignacio De Montis joined the Company as Tele2 account Director. réal Bergevin (General Manager, north america & asia Pacific) also joined Transcom in 2007 through the acquisition of nuComm international.

BOARD PROCEDURES Transcom’s Board held four Board meetings during 2007. The audit Committee met three times and the remuneration Committee met twice.

BUSINESS REVIEW The Company had 72 operating centres employing over 17,300 people, providing services from 29 country markets at the end of 2007. Transcom’s intention remains to expand the debt collection business across its operating platform in the coming years and to continue growing its near and offshore solutions. Transcom’s proportion of revenues outside its principal client Tele2 was 43.5% at the end of 2007, and was 29% for the month of December 2007.

CONSOLIDATED RESULTS sales in 2007 increased by 10.9% to €599.2 million (2006: €540.2 million). earnings before interest, taxes and amortisation (eBiTa) decreased by 2.0% to €37.1 million (€37.8 million). operating income for the full year decreased by 4.8% to €36.0 million (2006: €37.8 million). Transcom’s 2007 pre-tax proﬁt decreased by 13.2% to €32.9 million (2006: €37.9 million), while net income decreased by 13.9% to €24.3 million (2006: €28.2 million). Transcom’s earnings per share (before dilution) decreased by 14.2% to €0.33 (2006: €0.39).

Main Course 24 DIRECTORS’ REPORT

FINANCIAL POSITION operating cash ﬂow in 2007 increased by 35.0% to €40.3 million (2006: €29.8 million). Capital expenditure increased by 14.7% to €19.5 million (2006: €17.0 million), with Transcom expanding the operations of its sites in spain, Chile, Germany, Holland, Poland and Lithuania. The working capital movement was €0.0 million (2006: €6.6 million). Transcom spent €80.0 million on business purchases in 2007, which were the payments associated with the acquisitions of Centrum egzekwowania należności Trudnych “CenT” sp. z o.o., nuComm international and is inkasso service Group. Transcom’s liquid funds as at December 31, 2007 increased by 94.9% to €72.9 million (December 31, 2006: €37.4 million). Long-term debt was €115.5 million, giving a net debt of €42.6million. The equity to assets ratio at December 31, 2007 was 39.4% (December 2006: 51.6%).

OUTLOOK Transcom has a positive outlook for 2008, with pricing expected to be in line with wage inﬂation in the CrM business. The Company remains focused on its objective of increasing margins through the expansion of higher margin activities, namely in near and offshore CrM solutions and debt collection services.

William M. Walker, Chairman of the Board of Directors Luxembourg, Grand Duchy of Luxembourg april 9, 2008

Main Course 25 CORPORATE GOVERNANCE

1 THE COMPANY Transcom WorldWide s.a. (the “Company”) is a Luxembourg limited public liability company (société anonyme), the shares of which are listed and admitted to the stockholm stock exchange.

Corporate governance within the Company is based on the Luxembourg law and the listing requirements of the stockholm stock exchange. The Company follows the ten principles of corporate governance of the Luxembourg stock exchange which came into effect on January 1, 2007.

2 ANNUAL GENERAL MEETING OF SHAREHOLDERS 2.1 General rules applicable to the Annual General Meeting shareholders’ rights to decide on the affairs of the Company are exercised at annual General Meeting of the shareholders (the “annual General Meeting”).

2.2 The Annual General Meeting The annual General Meeting is held in Luxembourg each year on the last Tuesday in May at 3.00pm at the registered ofﬁce of the Company or at such other place as may be speciﬁed in the notice convening the Meeting.

3 BOARD OF DIRECTORS 3.1 Composition of the Board of Directors The Board of Directors of the Company comprises ﬁve non-executive Directors. The members of the Board of Directors of the Company are: William Walker (born 1967, independent), Cristina stenbeck (born 1977), Mia Brunell Livfors (born 1965), James Beers (born 1939, independent) and roel Louwhoff (born 1964, independent) who has been appointed in May 2007.

The independence criteria used by the Company in order to determine the independence of the members of its Board of Directors are those listed in annex ii of the european Commission recommendations of February 15, 2005 on the role of non-executive directors (and members of the supervisory board) of listed companies and on the committees of the board (or supervisory board).

a summary curriculum vitae for each member of the Board of Directors of the Company and the list of other paid positions held by them in other listed companies is disclosed on page 19 under the Board of Directors section.

3.2 The Board’s responsibility and work in 2007 in order to carry out its work more effectively, the Board of Directors has appointed a remuneration Committee and an audit Committee. These committees handle business within their respective areas and present recommendations and reports on which the Board of Directors may base its decisions and actions.

The Board of Directors of the Company carried out its own evaluation and the evaluation of its committees in accordance with the Corporate Governance Charter of the Company. These evaluations have not led to any important change in respect of the Board of Directors or the committees.

The Board of Directors has also adopted procedures for instructions and mandates issued to the Chief executive ofﬁcer which delegate the day to day management to him.

The Board of Directors had four Board meetings during 2007. all Board members were present at each meeting. additionally, the Chief executive officer and Chief Financial officer attended all four meetings. retiring Directors susan Hooper and Björn rosengren were present at the first Board meeting and Mr. rosengren was also present at the second Board meeting.

Main Course 26 CORPORATE GOVERNANCE

3.3 Remuneration Committee William Walker is Chairman of the remuneration Committee and Mia Brunell Livfors and Cristina stenbeck are members of the remuneration Committee. The Board of Directors commissions the work of the remuneration Committee.

The responsibilities of the remuneration Committee include issues regarding salaries, pension plans, bonus programmes and other employment terms of the Chief executive ofﬁcer and senior management in conjunction with the Board of Directors of the Company.

The remuneration Committee met twice in 2007 and all of its members attended these meetings.

3.4 Audit Committee at a statutory Board meeting following the 2005 annual General Meeting, James Beers was appointed as Chairman of the audit Committee and William Walker was appointed as a member of the Committee. at a statutory Board meeting following the 2007 annual General Meeting roel Louwhoff was also appointed as a member of the audit Committee. The Board of Directors commissions the work of the audit Committee.

The audit Committee met three times in 2007 and all of its members attended these meetings.

The audit Committee’s responsibility is to maintain the working relationship with the Company’s internal and external auditors, as well as to review the Group’s accounting and financial reporting procedures. The audit Committee focuses on ensuring quality and accuracy in the Company’s financial reporting, the internal controls within the Company, the qualification and independence of the auditors, the Company’s adherence to prevailing rules and regulations and, where applicable it reviews transactions between the Company and related parties.

3.5 Nomination Committee a nomination Committee of major shareholders in Transcom has been convened in accordance with the resolution of the 2007 annual General Meeting. The nomination Committee is comprised of Cristina stenbeck on behalf of investment aB Kinnevik and emesco aB, Jan andersson on behalf of swedbank robur Funds, Björn Lind on behalf of seB Funds and seB Trygg Liv and Lars Höckenström on behalf of Catella Kapitalförvaltning and Catella Funds. The composition of the nomination Committee may be changed to reﬂect any changes in the shareholdings of the major shareholders during the nomination process.

The nomination Committee submit a proposal for the composition of the Board of Directors, remuneration for the Board of Directors and the auditor and a proposal on the Chairman of the annual General Meeting 2008 that will be presented to the 2008 annual General Meeting for approval.

Cristina stenbeck, as member of the Board of Directors of the Company has been appointed Chairman of the nomination Committee.

The nomination Committee met during 2007 and all of its members attended the meeting.

Main Course 27 CORPORATE GOVERNANCE

4 MANAGEMENT TEAM The Board has appointed an executive management team. a full list of the members of the management team is provided on page 20-22 under the executive Management section.

5 REMUNERATION The total amount of remuneration and other beneﬁts granted directly or indirectly by the Company to the members of its Board of Directors is provided in note 21.

The total amount of remuneration and other beneﬁts granted directly or indirectly by the Company to the members of its Management Team is provided in note 21.

The Company did not grant any loan to any member of its Board of Directors or to any member of the Management Team.

6 MAJOR HOLDINGS The Company’s share ownership is disclosed on page 23 under “The Transcom share and Transcom shareholders” section.

all other signiﬁcant relationship between the Company and its major shareholders, insofar as it is aware of them, is described in note 26 related Party Transactions.

7 MARKET ABUSE RELATED CONSIDERATIONS The Company has adopted and applies an insider trading policy.

8 INTERNAL CONTROL The Board has overall responsibility for the Group’s internal control systems and for monitoring their effectiveness. executive Directors and senior management are responsible for the implementation and maintenance of the internal control systems, which are subject to periodic review that is documented. an internal audit function reviews the internal controls throughout the Group. The Board monitors the ongoing process by which critical risks to the business are identiﬁed, evaluated and managed.

each year the audit Committee assesses the effectiveness of the Group’s system of internal controls (including ﬁnancial, operational and compliance controls and risk management systems) on the basis of:

G established procedures, including those already described, which are in place to manage perceived risks; G Management reviews and responds to internal audit and external auditors’ reports, and advises the audit Committee on controls; G The continuous Group-wide process for formally identifying, evaluating and managing the signiﬁcant risks to the achievement of the Group’s objectives; and G reports to the audit Committee on the results of internal audit reviews.

The Group’s internal control systems are designed to manage, rather than eliminate, the risk of failure to achieve the Group’s objectives, and can only provide reasonable, and not absolute, assurance against material misstatement or loss. in assessing what constitutes reasonable assurance, the Board considers the materiality of financial and non-financial risks and the relationship between the cost of, and benefit from, internal control systems.

The Board regularly reviews the actual and forecast performance of the business compared with the annual report, as well as other key performance indicators.

Lines of responsibility and delegated authorities are clearly deﬁned. The Group’s policies and procedures are regularly updated and distributed throughout the Group.

Main Course 28 CORPORATE GOVERNANCE

The Board has responsibility for the Group’s system of internal control and for monitoring and reviewing its effectiveness.

The principal features of the Group’s systems of internal control are designed to:

G safeguard assets; G Maintain proper accounting records; G Provide reliable ﬁnancial information; G identify and manage business risks; G Maintain compliance with appropriate legislation and regulation; and G identify and adopt best practice. The principal features of the control framework and the methods by which the Board satisﬁes itself that it is operating effectively are detailed below.

Control environment The Group has an established governance framework, the key features of which include:

G Terms of reference for the Board and each of its committees; G a clear organisational structure, with documented delegation of authority from the Board to executive management; G a Group policy framework, which sets out risk management and control standards for the Group’s operations worldwide; and G Deﬁned procedures for the approval of major transactions and capital allocations.

Corporate plan executive management submits an annual corporate plan to the Board for approval. The plan for each business unit is the quantified assessment of its planned operating and financial performance for the next financial year, together with strategic reviews for the following five years. Group management reviews the plans with each operational team. The individual plans are based on key economic and financial assumptions and incorporate an assessment of the risk and sensitivities underlying the projections.

Performance monitoring and review Monthly performance and ﬁnancial reports are produced for each business unit, with comparisons to budget. reports are consolidated for overall review by executive management, together with forecasts for the income statement and cash ﬂow. Detailed reports are presented to the Board on a regular basis.

Risk identification, assessment and management There is in place an ongoing process for identifying, evaluating and managing the significant risks faced by the Group which has operated throughout the year and up to the date of signing this report. The Group’s risk management and control framework is designed to support the identification, assessment, monitoring, management and control of risks that are significant to the achievement of the Group’s business objectives. The Group has a set of formal policies which govern the management and control of both financial and non-financial risks. The adoption of these policies throughout the Group enables a broadly consistent approach to the management of risk at business unit level. at Group level, policy owners are responsible for the Group-wide aggregation and oversight of their specific risks.

Management is responsible for reviewing and monitoring the ﬁnancial risks to the Group and considers the risks in the businesses. similarly, management also monitors risks associated with information technology, human resource management and regulatory compliance.

Management monitors the completeness of the Group’s risk proﬁle on a regular basis through a Group risk monitoring framework.

Monitoring The Board reviews the effectiveness of established internal controls through the audit Committee, which receives reports from management, the Group’s internal audit function and the external auditors on the systems of internal control and risk management arrangements. internal audit reviews the effectiveness of internal controls and risk management through a work programme which is based on the Company’s objectives and risk proﬁle and is agreed with the audit Committee. Findings are reported to operational and executive management, with periodic reporting to the audit Committee.

Main Course 29 CORPORATE GOVERNANCE

9 EXPLANATION FROM THE COMPANY OF ITS DECISION RELATING TO CORPORATE GOVERNANCE The Company complies with the Luxembourg law requirements pursuant to which one or more shareholders who together hold at least ten percent of the subscribed capital may request that one or more additional items be put on the agenda of any general meeting instead of recommendation 10.7 of the Ten Principles of Corporate Governance of the Luxembourg stock exchange.

The nomination Committee is made up of major shareholders and is elected during the third quarter of the year instead of recommendation 4.2 of the Ten Principles of Corporate Governance of the Luxembourg stock exchange.

Main Course 30 DESSERTS “WE HAVE CHOSEN TO STANDARDISE OUR TECHNOLOGY TO ALLOW CONSISTENT, ADAPTABLE AND EFFECTIVE SOLUTIONS, ASSURING EXCELLENT SERVICE DELIVERY IN ALL OUR CONTACT CENTRES.”

ALAN GILES CHIEF TECHNOLOGY OFFICER CONSOLIDATED INCOME STATEMENT for the year ended December 31, 2007

2007 2006 (€000, except share and per share amounts) Note €000 €000

Revenue 2 599,240 540,191 Cost of sales (474,600) (429,496) Gross profit 124,640 110,695 Selling expenses (5,836) (4,230) Administrative expenses (81,704) (68,625) Earnings before interest, tax and amortisation 37,100 37,840

Amortisation of intangible assets 3 (1,085) –

Operating income 2 36,015 37,840 Finance income 1,004 482 Finance costs 4 (4,093) (603) Income on sale of subsidiary – 200 Profit before tax 32,926 37,919

Income tax expenses 5 (8,625) (9,707)

Profit for the year 2 24,301 28,212

Basic earnings per A class share, for profit for the year attributable to ordinary equity holders of the parent 6 0.33 0.39

Basic earnings per B class share, for profit for the year attributable to ordinary equity holders of the parent 6 0.34 0.39

Diluted earnings per A class share, for profit for the year attributable to ordinary equity holders of the parent 6 0.32 0.38

Diluted earnings per B class share, for profit for the year attributable to ordinary equity holders of the parent 6 0.34 0.38

The accompanying notes form an integral part of the consolidated financial statements

DeSSeRT 31 CONSOLIDATED BALANCE SHEET as at December 31, 2007

2007 2006 Note €000 €000 Assets Non-current assets Property, plant and equipment 8 45,081 30,302 Intangible assets 9 144,632 75,625 Deferred tax assets 5 1,101 633

Total non-current assets 2 190,814 106,560 Current assets Trade and other receivables 12 124,494 111,032 Prepaid expenses and accrued income 13 19,172 11,760 143,666 122,792

Cash and cash equivalents 72,903 37,365 Total current assets 216,569 160,157

Total assets 2 407,383 266,717

The accompanying notes form an integral part of the consolidated financial statements

DeSSeRT 32 CONSOLIDATED BALANCE SHEET as at December 31, 2007

2007 2006 Note €000 €000 Equity and liabilities equity 14 Share capital 31,457 31,243 Share premium 9,971 9,877 Legal reserve 2,341 1,411 equity-based payments 1,842 1,128 Retained earnings 93,141 65,859 Foreign exchange reserve (2,326) – Net profit 24,301 28,212 Total equity 160,727 137,730 Non-current liabilities Bank loan and credit facilities 16 115,481 19,197 Deferred tax liabilities 5 5,969 – employee benefits 6,117 6,942 Government grants 4,310 3,626 131,877 29,765 Current liabilities Trade and other payables 25,725 30,482 Income tax payable 10,936 7,135 Other liabilities 17 29,391 17,660 Accrued expenses and prepaid income 18 48,727 43,945 114,779 99,222 Total liabilities 246,656 128,987 Total shareholders’ equity and liabilities 407,383 266,717

The accompanying notes form an integral part of the consolidated financial statements

DeSSeRT 33 STATEMENT OF CHANGES IN EQUITY for the year ended December 31, 2007

equity- Foreign Share capital Share Legal based Retained exchange Minority Net (note 14) premium reserve payments earnings reserve interests profit Total €000 €000 €000 €000 €000 €000 €000 €000 €000 As at January 1, 2007 31,243 9,877 1,411 1,128 65,859 ––28,212 137,730 Allocation of profit ––930 – 27,282 ––(28,212) – Foreign currency translation –––––(2,326) ––(2,326) Profit for the year –––––––24,301 24,301 exercise of options 214 94 ––––––308 equity-based payment –––714 ––––714 As at December 31, 2007 31,457 9,971 2,341 1,842 93,141 (2,326) – 24,301 160,727

As at January 1, 2006 30,728 9,877 566 741 67,206 – 744 24,476 134,338 Allocation of profit ––845 – 23,631 ––(24,476) – Foreign currency translation ––––464 –––464 Acquisition of minority interest ––––––(744) – (744) Profit for the year –––––––28,212 28,212 exercise of options 515 –––––––515 equity-based payment –––387 ––––387 equity dividend ––––(25,442) –––(25,442) As at December 31, 2006 31,243 9,877 1,411 1,128 65,859 ––28,212 137,730

The accompanying notes form an integral part of the consolidated financial statements

DeSSeRT 34 CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended December 31, 2007

2007 2006 €000 €000 Net income 24,301 28,212 Non-cash adjustments 714 387 Depreciation and amortisation 14,461 10,170 Income taxes 8,625 9,707 Gain on disposal of subsidiary – (200) Other, net (783) (2,157) 47,318 46,119 Changes in working capital Trade and other receivables (20,874) (22,290) Trade and other payables 19,141 14,694 Income tax paid (5,292) (8,674) Net cash flows from operating activities 40,293 29,849 Investment activities Purchases of tangible assets (19,488) (17,012) Acquisition of business (83,882) (14,500) Cash in business acquired 993 838 Sale of business, net of cash – 875 Net cash flows used in investing activities (102,377) (29,799) Financing activities Proceeds from credit facilities 96,284 15,000 Loan repayments – (4,167) Issuance of stock 308 515 Government grants received 1,030 – Dividends paid to equity holders – (25,442) Net cash flows used in financing activities 97,622 (14,094) Net increase/(decrease) in cash and cash equivalents 35,538 (14,044) Cash and cash equivalents at beginning of year 37,365 51,409 Cash and cash equivalents at end of year 72,903 37,365

The accompanying notes form an integral part of the consolidated financial statements

DeSSeRT 35 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

The accompanying notes are an integral part of the consolidated financial statements. Amounts in thousands of EUR unless otherwise stated:

1 CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING AND VALUATION POLICIES

Corporate information transcom WorldWide s.A. (formerly I.K. transcom europe s.A.) (“transcom”, the “Group”, the “Company” or the “parent company”) is a limited liability company (“société Anonyme”) incorporated and existing under the laws of the Grand Duchy of Luxembourg. the Company was registered on June 11, 1997 with the Luxembourg registration Ofﬁce – Company register. (“tribunal d’arrondissement de et à Luxembourg”) number rC B59528. the registered ofﬁce of the Company is at 177, rue de Luxembourg, L-8077 Bertrange, Luxembourg.

transcom was formed to provide multi-language customer relationship management products and services (“CrM”) and credit management services (“CMs”), including customer help lines and other telephone-based marketing and customer service programs (“teleservices”) to clients in customer-intensive industries. the Company operates in 29 countries and employed 17,300 employees at December 31, 2007. the primary segmental reporting by transcom is based on geographical areas, i.e. North region, West & Central region, south region, Iberian region and North America & Asia Paciﬁc. A signiﬁcant portion of transcom’s consolidated net revenue is derived from related parties (see notes 2 and 26).

transcom Worldwide s.A. class A and class B shares are listed on the Nordic exchange Mid Cap list under the symbols “tWW sDB A” and “tWW sDB B”.

the accounts were approved and authorised for issue at the Board of Directors meeting on April 9, 2008.

Changes in accounting policies the accounting policies adopted are consistent with those of the previous ﬁnancial year except as follows:

the Group has adopted the following new and amended IFrs and IFrIC interpretations during the year. Adoption of these revised standards and interpretations did not require any restatement of prior year ﬁgures in the ﬁnancial statements of the Group.

G IFrs 7 (and IAs 32 and IAs 30) – Financial Instruments: Disclosures G IAs 1 Amendment – Capital Disclosures G IFrIC 7 Applying the restatement Approach under IAs 29 “Financial reporting in Hyperinﬂationary economies” G IFrIC 8 scope of IFrs 2 G IFrIC 9 reassessment of embedded Derivatives G IFrIC 10 Interim Financial reporting and Impairment

IFRS standards and interpretations not yet effective the following IFrs and IFrIC interpretations were issued in 2006 and 2007 with an effective date for ﬁnancial periods beginning on or after January 1, 2008. the Company has chosen not to adopt these standards or interpretations.

IFrs 8 Operating segments IAs 23 Borrowing Costs revised IFrIC 11 IFrs 2 – Group and treasury share transactions IFrIC 12 service Concession Arrangements IFrIC 13 Customer Loyalty Programmes IFrIC 14 the Limits on a Deﬁned Beneﬁt Asset, Minimum Funding requirements and their Interaction

IFrs 8 “Operating segments” is effective for annual periods beginning on or after January 1, 2009. IFrs 8 incorporates and amends the disclosure requirements on operating segments from IAs 14 – segment reporting. the Group plans to adopt this standard at its effective date or at the date of endorsement by the european Union, if later. this adoption will only impact disclosures in the ﬁnancial statements. Dessert PANNA COTTA BY AGNESE COTARDO TRAINING AND QUALITY MANAGER LECCE, ITALY PANNA COTTA

Panna Cotta (Italian for cooked cream) is a traditional dessert from Piemonte.

SERVES 6 ½l whipping cream / 100g sugar / ½ teaspoon vanilla extract / 8g ﬁsh glue sheets

Soften the ﬁsh glue in cool water and set apart. Pour whipping cream into the saucepan and then add sugar and vanilla. Place the pan on a medium heat and stir continuously, making sure it doesn’t boil over. When it starts to simmer, remove from the heat. Add the ﬁsh glue and stir constantly for 1-2 minutes until thoroughly dissolved.

Divide the mixture into 6 individual moulds and then leave them to cool at room temperature. Cover with a plastic wrap and refrigerate for 3-4 hours before serving.

To serve, carefully remove the Panna Cotta from the moulds and serve with a topping of your choice. You can make a delicious fruity sauce with fresh redcurrants and blackcurrants, blueberries, and wild strawberries. Combine them with a tablespoon of currant jelly and gently warm them in a pan until the fruit is cooked and begins to come apart. Spoon some sauce over each serving for a perfect combination.

AGNESE COTARDO TRAINING AND QUALITY MANAGER LECCE, ITALY

WHAT DO YOU DO AT TRANSCOM? I am the Training and Quality Manager in a call centre, which means I am responsible for the development and improvement of our people and our services.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB? The thing that I love about my job is that it changes all the time, with new challenges every day. Working with so many people is a constantly enriching experience. A wonderfully light ﬁnish to a heavy meal. WHERE DO YOU WORK/LIVE? I work and live in Lecce, a city in the south of Italy.

WHAT ARE YOUR INTERESTS/HOBBIES? Listening to music, singing and, of course, cooking!

WHY DID YOU CHOOSE THIS RECIPE? Because I love Panna Cotta! It makes a wonderfully light ﬁnish to a heavy meal. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING AND VALUATION POLICIES CONTINUED

It is considered that this standard will affect the presentation of the financial statements with the identification of operating segments as defined by the standard. there is not considered to be any impact on the operating results.

IAs 23 “Borrowing Costs” the revised IAs 23 “Borrowing Costs” is effective for ﬁnancial years beginning on or after January 1, 2009 and requires capitalisation of borrowing costs that relate to a qualifying asset. the Group plans to adopt this standard at its effective date or at the date of endorsement by the european Union, if later.

It is considered that this standard will have no effect on the presentation or operating results.

IFrIC 11 “IFrs 2 Group and treasury share transactions” is effective for annual periods beginning on or after March 1, 2007. IFrIC 11 requires the application of IFrs 2 to certain Group and treasury share transactions. the Group plans to adopt this standard at its effective date or at the date of endorsement by the european Union, if later, and does not anticipate any signiﬁcant impact on its ﬁnancial statements.

It is considered that a consistent accounting treatment will be adopted with regards to equity instruments in the parent company being granted to employees of the subsidiaries in relation to the share grant and share options plan as detailed in note 22. these will be treated in accordance with IFrs 2.

IFrIC 12 “service Concession Arrangements” is effective for annual periods beginning on or after January 1, 2008 and addresses how services concession operators should apply existing IFrs to account for the obligations they undertake and rights they receive in service concessions arrangements. the Group plans to adopt this standard at its effective date or at the date of endorsement by the european Union, if later, and does not anticipate any signiﬁcant impact on its ﬁnancial statements.

It is considered that this standard will have no effect on the presentation or operating results.

IFrIC 13 “Customer Loyalty Programmes” is effective for annual periods beginning on or after July 1, 2008. this interpretation requires customer loyalty credits to be accounted for as a separate component of the sales transaction in which they are granted. the Group plans to adopt this standard at its effective date or at the date of endorsement by the european Union, if later, and does not anticipate any signiﬁcant impact on its ﬁnancial statements.

It is considered that this standard will have no effect on the presentation or operating results.

IFrIC 14 “IAs 19 – the Limits on a Defined Benefit Asset, Minimum Funding requirements and their Interaction” was issued in July 2007 and becomes effective for financial years beginning on or after January 1, 2008. this interpretation provides guidance on how to assess the limit on the amount of surplus in a defined benefit pension plan that can be recognised as an asset under IAs 19 “employee Benefits”. the Group plans to adopt this standard at its effective date or at the date of endorsement by the european Union, if later, and does not anticipate any significant impact on its financial statements.

It is considered that this standard may lead to the recognition of an asset which will be measured as the amount of the surplus at the balance sheet date that it has a right to receive as a refund. this is calculated as the fair value of the plan assets less the present value of the deﬁned beneﬁt obligation, less any associated costs, such as taxes.

Basis of preparation the consolidated ﬁnancial statements of transcom WorldWide s.A. and all its subsidiaries have been prepared in accordance with International Financial reporting standards (“IFrs”) adopted by the european Union, which comprise standards and interpretations approved by the International Accounting standards Board (“IAsB”) and International Accounting standards and standing Interpretation

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING AND VALUATION POLICIES CONTINUED

Committee interpretations approved by the IAsC. the consolidated ﬁnancial statements have been prepared on a historical cost basis and the accounting policies have been consistently applied by the Company for all years presented. the ﬁnancial statements are presented in euros following the Company’s adoption of the euro as its reporting currency, rounded in thousands of euros.

Principles of consolidation the consolidated ﬁnancial statements comprise the accounts of transcom WorldWide s.A. (the parent company) and its controlled subsidiaries, after the elimination of all material intercompany transactions. subsidiaries are consolidated from the date the parent obtains control until such time as control ceases. transcom considers that it controls a subsidiary when it holds more than 50% of the voting equity in the subsidiary. should transcom hold less that 50% of the voting equity, it is still considered that control exists where there is the power over more than half of the voting rights by virtue of an agreement with other investors; where there is power to govern the ﬁnancial and operating policies of the entity under a statute or an agreement; where there is the power to appoint or remove the majority of the members of the Board of Directors or equivalent governing body and control of the entity is by that board or body; or where there is the power to cast the majority of votes at meetings of the Board of Directors or equivalent governing body and control of the entity is by that board or body, except when there is clear evidence that another party has control or when another party has veto rights over, or the ability to block, substantive decisions for transcom, which effectively means that transcom cannot exercise its control. Business combinations of subsidiaries are accounted for using the purchase method of accounting. By this method, the difference between the acquisition value of shares in a subsidiary and the fair value of net assets of that subsidiary at the time of acquisition is allocated to and reported as goodwill.

the ﬁnancial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. Adjustments are made to conform any dissimilar material accounting policies that may exist.

Foreign currency translation and transactions the Group operates in several european countries as well as in the UsA, Canada and the Philippines. Its subsidiaries primarily generate and expend cash in the local currencies of those countries, with the exception of Canada which primarily generates revenue in Us dollars. the functional currency is therefore generally the local currency in which the subsidiaries operate. the Company has chosen the euro as its presentation currency.

transactions in foreign currencies are initially recorded at the functional currency rate of exchange ruling at the date of the transaction. the Group’s monetary assets and liabilities that are denominated in foreign currencies are translated into the reporting currency equivalents using exchange rates prevailing on the balance sheet date. Non-monetary assets and liabilities are translated using historical exchange rates that existed when the values were determined. realised and unrealised gains/losses on foreign exchange transactions are reported in the income statement.

the balance sheets of the Group’s subsidiaries in foreign currencies are translated into euro using the exchange rates prevailing on the balance sheet date, while the income statements are translated using an average rate. resulting translation differences are charged directly to a separate component of equity. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

On the disposal of a foreign operation, the cumulative amount of the exchange difference deferred in the separate component of equity relating to that foreign operation shall be recognised in the income statement when the gain or loss on disposal is recognised.

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING AND VALUATION POLICIES CONTINUED

Property, plant and equipment Property, plant and equipment are stated at cost and reported net after deductions for accumulated depreciation and amortisation. Depreciation and amortisation are calculated on a straight-line, based on the acquisition value of the asset and its estimated useful life. the carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

For the purpose of calculating depreciation, non-current assets are classiﬁed on the basis of their estimated useful economic lives of between three and ﬁve years.

Goodwill Goodwill acquired in a business combination is measured as the excess of cost of the combination over the Group’s interest in the net fair value of identifiable assets, liabilities and contingent liabilities. Following initial recognition, goodwill is recognised at cost less any accumulated impairment losses. the Company annually evaluates the carrying value of goodwill for potential impairment by comparing projected discounted cash flows (using a suitable discount rate) associated with such assets to the related carrying value. An impairment test is also carried out should events or circumstances change which may indicate that there may be need for an impairment. An impairment loss would be recognised when the estimated future discounted cash flow generated by the asset is less than the carrying amount of the asset. An impairment loss would be measured as the amount by which the carrying value of the asset exceeds the recoverable amount. the cash generating units (“CGUs”) for impairment testing of goodwill relating to the goodwill identified in note 2 “business segments and significant acquisitions” and note 9 “intangible assets” are the smallest identifiable group of assets that are largely independent of the cash flows from other groups of assets. the Company has identified the CGUs as the individual subsidiaries or group of subsidiaries. the calculations of value in use are most sensitive to:

G Movements in the underlying business plan assumptions; G Changes in discount rates; and G the growth rate assumptions used to extrapolate cash ﬂows beyond the business planning period.

For the movements in the underlying business plan assumptions, the Group’s subsidiaries draw up annually a business plan which generally provides an assessment of the expected developments for a ﬁve year period beyond the end of the year when the plan is drawn up. these business plans reﬂect both the most up to date assumptions concerning the market and also developments and trends in the business.

Discount rates ranging from 5% to 7% reﬂect management’s estimate of the risks speciﬁc to the various units.

Impairment is determined by assessing the projected discounted cash ﬂows over ﬁve years after applying an appropriate growth rate, between 5% and 25%, associated with the entity to the related carrying value. Where the recoverable amount is less than the carrying value, an impairment loss is recognised. Impairment losses for goodwill are not reversed. the Group performed its annual impairment test of goodwill as at December 31, 2007.

Goodwill arising from business combinations completed before April 1, 2004 was amortised on a straight-line basis over 15 years, up to December 31, 2004. Goodwill has not been amortised after January 1,2005.

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING AND VALUATION POLICIES CONTINUED

Intangible assets Intangible assets acquired as part of a business combination are valued at fair value at the date of acquisition. Following recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.

the useful lives of intangible assets are assessed to be either ﬁnite or indeﬁnite.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. the amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed at least at each financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. the amortisation expense on intangible assets with finite lives is recognised in the income statement in the expense category consistent with the function of the intangible asset.

Intangible assets with indefinite useful lives are tested for impairment annually at the cash generating unit level. such intangibles are not amortised. the useful life of an intangible asset with an indefinite life is reviewed annually to determine whether indefinite life assessment continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the differences between the net disposal proceeds and the carrying value of the asset and are recognised in the income statement when the asset is derecognised.

Development costs Development costs related to software development projects have been capitalised during the year. Projects have been assessed in accordance with certain criteria pertaining to the future viability of the project, and the likelihood of future cash inﬂows, or reduction of future cash outﬂows.

Impairment of non-financial assets the Company periodically evaluates the carrying value of certain long lived assets for potential impairment on an ongoing basis when there is an indication that assets may be impaired, and at each reporting date, by comparing projected discounted cash ﬂows (using a suitable discount rate) associated with such assets to the related carrying value. An impairment loss would be recognised when the estimated future discounted cash ﬂow generated by the asset is less than the carrying amount of the asset. An impairment loss would be measured as the amount by which the carrying value of the asset exceeds the recoverable amount. Impairment losses are recognised in the the income statement, however any impairment can be reversed in future periods should circumstances change, which no longer require its recognition.

the individual companies or group of companies for impairment testing of goodwill relating to the goodwills identified in note 2 “business segments and significant acquisitions” and note 9 “intangible assets” are the smallest identifiable group of assets that are largely independent of the cash flows from other groups of assets.

the calculations of value in use are most sensitive to:

G Movements in the underlying business plan assumptions; G Changes in discount rates; and G the growth rate assumptions used to extrapolate cash ﬂows beyond the business planning period.

Dessert Discount rates reﬂect the time value of money and management’s estimate of the risks speciﬁc to the various assets. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING AND VALUATION POLICIES CONTINUED

Growth rate assumptions used to extrapolate cash ﬂows beyond the business planning period are based on the commercial experience relating to the business concerned and the expectations for developments in the markets which they serve.

Accounting for leases the determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at inception date of whether the fulﬁlment of the arrangement is dependent on the use of a speciﬁc asset or assets or the arrangement conveys a right to use the asset.

For arrangements entered into prior to January 1, 2005, the date of inception is deemed to be January 1, 2005 in accordance with the transitional requirements of IFrIC 4.

Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are reflected in the income statement.

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term.

Operating lease payments are recognised as an expense in the income statement on a straight-line basis over the term of the lease.

Accounts receivable and other receivables Accounts receivable are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. An estimate by management is made taking into consideration the liquidity status of the client, market conditions and any other factors which they consider necessary, to review for doubtful debts. Bad debts are written-off when they are assessed uncollectible with any consequential derecognition of doubtful debts provision being reversed. receivables from related parties are recognised and carried at cost, less provisions for any uncollectible amounts.

Taxes Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. the tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date.

Current income tax relating to items recognised directly in equity is recognised in equity and not in the income statement.

Deferred income tax Deferred income tax is provided using the liability method on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying values for ﬁnancial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences, except:

G Where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting proﬁt nor taxable proﬁt or loss; and

G In respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Dessert 1 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING AND VALUATION POLICIES CONTINUED

Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable proﬁt will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised, except:

G Where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting proﬁt nor the taxable proﬁt; and

G In respect of deductible temporary differences associated with investments in subsidiaries, deferred income tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable proﬁt will be available against which the temporary differences can be utilised.

the carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

Deferred income tax relating to items recognised directly in equity is recognised in equity and not in the income statement.

Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.

sales tax revenues, expenses and assets are recognised net of the amount of sales tax except:

G Where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

G receivables and payables that are stated with the amount of sales tax included.

the net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

Accounts payable and other payables Accounts payable and other amounts payable which are normally due on 30-90 day terms, are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the Group.

Payables to related parties are carried at cost.

Dessert DANISH APPLE CHARLOTTE BY BENTE SAXMOSE TEAM LEADER VORDINGBORG, DENMARK BENTE SAXMOSE TEAM LEADER VORDINGBORG, DENMARK

WHAT DO YOU DO AT TRANSCOM? I am a Team Leader at Transcom in Vordingborg, which is a town in the south of Denmark.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB? I enjoy the pace of life in the call centre with different types of people. I love the contact with people of all age groups and with a wide variety of backgrounds.

WHERE DO YOU WORK/LIVE? I live with my husband Peter and our son Mathias on a farm near Præstø, about 25 minutes drive from Vordingborg. We are expecting our second child in April 2008.

Everyone loves it and – best of WHAT ARE YOUR INTERESTS/HOBBIES? all – it is very easy to make! My husband and I both work full time, so all our spare time is spent with the family and looking after our farm.

WHY DID YOU CHOOSE THIS RECIPE? We have a fruit orchard on the farm, which is a great source for the apples needed in this recipe! It is also a typical Danish dessert and is popular with young and old people. Everyone loves it and – best of all – it is very easy to make!

DANISH APPLE CHARLOTTE

Cooking apples / sugar / double cream / macaroons (crisp almond biscuits) / redcurrant jam

To make the apple purée, ﬁrst peel the apples and remove the cores. Cut the apples into quarters and place them in a covered saucepan with a little water. Heat the apples slowly, adding sugar to taste. Be careful not to let the apples boil dry! When the purée has a smooth texture, leave it to cool.

Crush the macaroons into small pieces in a bowl to make the base of the dish and, in another bowl, whip the double cream.

Put the crushed macaroons on a ﬂat-bottomed dish. Then cover with the apple purée and a layer of whipped double cream. For the ﬁnishing touch, you can decorate this mouth- watering dish with some redcurrant jam! NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING AND VALUATION POLICIES CONTINUED

Revenue recognition revenues are recognised to the extent that it is probable that the economic beneﬁts of transactions will ﬂow to the Group and the revenue can be reliably measured. revenues related to inbound teleservices are recognised at the time services are provided on a per-call basis. revenues on outbound teleservices and debt collection are recognised at the time services are provided on either a per-call, per-sale or per-collection basis depending on the terms of the related contract. revenues from other CrM services are recognised as services are provided. Generally service revenues are billed in the month following provision of related services. Contracts to provide call centre services typically do not involve fees related to customer set-up, initiation or activation.

Accrued income is recognised on incomplete activities where a fair assessment of the work achieved to date and the future cash inﬂows associated with it can be measured with reasonable accuracy.

Dividend recognition Dividends are recognised when the dividend payment is made.

Advertising costs Advertising costs are charged to operations as incurred.

Borrowing costs Borrowing costs are recognised as expenses in the period in which they are incurred.

Cash and cash equivalents the Group considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. the carrying values of these items approximate to fair value. At December 31, 2007 and 2006, cash and cash equivalents only consist of cash at bank and in hand and short term deposits.

Financial liabilities Interest bearing loans and borrowing All loans and borrowings are initially recognised at fair value less directly attributable transaction costs, and have not been designated as “at fair value through the income statement”.

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.

Gains and losses are recognised in the income statement when the liabilities are derecognised as well as through the amortisation process.

Derecognition of financial assets and liabilities Financial assets A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised when:

G the rights to receive cash ﬂows from the asset have expired;

G the Group retains the right to receive cash ﬂows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a “pass through” arrangement; or

G the Group has transferred its rights to receive cash ﬂows from the asset and either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Group has transferred its rights to receive cash ﬂows from an asset and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group’s continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying value of the asset and the maximum amount of consideration that the Group could be required to repay.

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING AND VALUATION POLICIES CONTINUED

When continuing involvement takes the form of a written and/or purchased option (including a cash settled option or similar provision) on the transferred asset, the extent of the Group’s continuing involvement is the amount of the transferred asset that the Group may repurchase, except that in the case of a written put option (including a cash settled option or similar provision) on an asset measured at fair value, the extent of the Group’s continuing involvement is limited to the lower of the fair value of the transferred asset and the option exercise price.

Financial liabilities A ﬁnancial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying values is recognised in the income statement.

Provisions General Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. the expenses relating to any provision are presented in the income statement net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where applicable, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Significant accounting judgements and estimates the preparation of ﬁnancial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the ﬁnancial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

estimation uncertainty the key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a signiﬁcant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next ﬁnancial year are discussed below.

equity-based payments employees and executive ofﬁcers of the Group receive remuneration in the form of equity-based payment transactions, all options granted are for services rendered for equity instruments. the cost of equity-settled transactions with employees is measured by reference to a fair value at the date on which they are granted. the fair value is determined by an external valuer using the Black-scholes formula. the cost of equity-settled transactions is recognised together with a corresponding increase in equity over the period in which the service conditions are fulﬁlled, ending the date on which the employees become fully entitled to the award.

Further details are given in note 22.

Deferred tax assets Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. the carrying value of recognised deferred tax assets as at December 31, 2007 was €1,101 thousand (2006: €633 thousand).

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING AND VALUATION POLICIES CONTINUED

Provisions for bad and doubtful debts the Group continually monitors provisions for bad and doubtful debts; however a signiﬁcant level of judgement is required by management to determine appropriate amounts to be provided. Management reviews and ascertains each debt individually based upon knowledge of the client, knowledge of the sector and other economic factors, and calculates an appropriate provision considering the time that a debt has remained overdue. At December 31, 2007, the provision for bad and doubtful debts was €1,868 thousand (2006: €1,446 thousand).

Government Grants since 2001, transcom has received grants from local governments for having engaged a certain number of employees. As per agreements with local authorities, the grants received may be subject to repayment if transcom does not keep for a certain period of time (from one year to six years depending on the country) the employees covered by the grant. transcom will therefore recognise in its accounts the income during the period for which the employees must be kept within the Company (credited to cost of sales). the amount recorded in the income statement with respect to 2007 is €2,030 thousand (2006: €1,690 thousand).

Government grants, including non-monetary grants at fair value, shall not be recognised until there is reasonable assurance that:

G the entity will comply with the conditions attaching to them; and

G the grants will be received.

Accounting for pension obligations the Company and certain subsidiaries operate defined benefit pension plans and/or defined contribution plans. the cost of providing benefits under the defined benefit pension plan is determined using the projected unit credit actuarial valuation method. Actuarial gains and losses are recognised as income or expense when the cumulative unrecognised gains or losses for each individual plan exceed 10% of the higher of the defined benefit obligation or the fair value of plans assets. these gains or losses are recognised over the expected average remaining working lives of the employees participating in the plans. Costs relating to the defined contribution plan are recognised in the income statement as incurred on an accruals basis.

Defined benefit plans are unfunded and the provisions thereon have been compared to valuations prepared at December 31, 2007 in order to ensure that provisions made are sufficient to cover estimated future liabilities. the principal assumptions used for the calculation of these valuations are statistical information on employees including age, gender, length of service, average time remaining until retirement, average mortality rates and salary level. the amounts to be provided in 2008 are expected to be in line with those of 2007, subject to movements in the number of employees.

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

BUSINESS SEGMENTS AND SIGNIFICANT ACQUISITIONS

transcom operates in one single business segment and provides credit management services, multi-language customer relationship management products and services (“CrM”), including customer help lines and other telephone-based marketing and customer service programmes (“teleservices”) to clients in customer-intensive industries. the primary segment reporting is based on geographical areas in europe, North America and Asia Pacific, i.e. North region, West & Central region, south region, Iberian region and North America & Asia Pacific. A significant proportion of consolidated net revenue is derived from related parties. the Company’s headquarters are located in Luxembourg, where it deals with corporate matters including establishment of new locations.

the Company evaluates performance of these regions and allocates resources based on the operating results of those regions. the following tables set forth the Group’s net revenue, operating income/(loss), segment assets, non-current assets depreciation and amortisation, capital expenditures and segment liabilities.

Net revenue by geographic origin of sale 2006 € €000 North 1,1 150,184 West & Central 1,1 123,867 south 1, 191,081 Iberia , 75,059 North America & Asia Pacific , – Total , 540,191

Net revenue comprises total sales proceeds net of sales discounts, VAt and other taxes directly connected to sales. the geographic distribution of net revenue is based upon the geographic location of the seller.

external sales include all sales to parties other than the Company and its consolidated subsidiaries. For information on sales to related parties, see note 26. there are no intersegmental sales.

sales to tele2 group companies represented 56% and 70% and sales to MtG group companies represented 2% and 3% of total net revenue for the years ended December 31, 2007 and 2006, respectively.

Operating income/(loss) by geographic origin 2006 € €000 North ,1 4,905 West & Central , 31,893 south ,1 3,988 Iberia ,1 (2,946) North America & Asia Pacific – Total ,1 37,840

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

BUSINESS SEGMENTS AND SIGNIFICANT ACQUISITIONS CONTINUED

Items to reconcile to consolidated income statement 2006 € €000 Operating income ,1 37,840 Finance income 1, 482 Finance costs (,) (603) Current tax (,) (8,612) Deferred tax (1,095) Income on sale of subsidiary – 200 Net income ,1 28,212

Segment assets 2006 € €000 North 111, 98,799 West & Central 1, 65,849 south , 63,783 Iberia ,1 36,700 North America & Asia Pacific , – Other () 1,586 Total , 266,717 segment assets are those assets used in Company operations in each segment.

Non-current assets 2006 € €000 North , 54,875 West & Central , 27,174 south , 8,140 Iberia 1, 16,371 North America & Asia Pacific ,1 – Total 1,1 106,560

Non-current assets are comprised of fixed assets, goodwill and assets other than non-current financial assets.

Depreciation and amortisation by geographical segment 2006 € €000 North (1,1) (1,111) West & Central (,) (3,874) south (,1) (2,338) Iberia (,1) (2,487) North America & Asia Pacific (,1) – Other () (360) total (1,1) (10,170)

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

BUSINESS SEGMENTS AND SIGNIFICANT ACQUISITIONS CONTINUED

Capital expenditure and capitalised development costs 2006 € €000 North (,1) (1,077) West & Central (,1) (7,588) south (,) (6,056) Iberia (,1) (2,291) North America & Asia Pacific (1,1) – total (1,) (17,012)

Segment liabilities 2006 € €000 North , 23,961 West & Central 1, 24,123 south , 44,182 Iberia 1, 15,179 North America & Asia Pacific , – Other 21,542 total , 128,987

the geographical locations are composed as follows:

G North: Denmark, Norway and sweden

G West & Central: Austria, Belgium, Croatia, the Czech republic, estonia, Germany, Hungary, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, romania, serbia, slovakia, switzerland and the United Kingdom

G South: France, Italy and tunisia

G Iberia: Chile, Portugal and spain

G North America & Asia Pacific: Canada, the Philippines and UsA

Dessert CHOCOLATE AND RUM MOUSSE BY MADELENE LINDBERG TEAM LEADER BARCELONA, SPAIN CHOCOLATE AND RUM MOUSSE

This delicious chocolate mousse gives you just enough to satisfy that craving for chocolate that we all get occasionally – until the next time at least!

SERVES 6-8 125g dark chocolate / 1½ spoons icing sugar / 1 egg yolk / 200ml whipping cream / 1 tablespoon whisky or rum / almonds or mixed nuts / raspberries

Take the chocolate, break it in to pieces and put them into a big bowl. Boil some water in a pan and put the bowl in the pan so that the chocolate melts. Then take it off the heat and mix it with the icing sugar and egg yolk, stirring rapidly. Let it stand to cool off for a while. Then whip the cream and mix it with the chocolate. Finally, mix in some rum or whisky of your choice.

Put the nuts in a frying pan and heat them up so that they turn a nice golden brown colour. Pour the mousse into dishes and let them stand in the fridge for about an hour. Now the mousse is ready to eat – top it with a sprinkling of roasted nuts, raspberries and a dollop of whipped cream. Enjoy!

MADELENE LINDBERG TEAM LEADER BARCELONA, SPAIN

WHAT DO YOU DO AT TRANSCOM? I work as a Team Leader for the Nordic TransBorders programme in Barcelona.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB? For me, team leading is all about trying new creative ways to inspire people to do a better job, remembering the importance of always trying to have fun and smile while doing it! Chocolate is the best way to end WERE DO YOU WORK/LIVE? a good meal! I am originally from Sweden but now I work in the World Trade Centre in Barcelona and I live in the beautiful El Born neighbourhood of the city.

WHAT ARE YOUR HOBBIES/INTERESTS? I love photography and eating a good meal with friends in one of Barcelona’s many great restaurants.

WHY DID YOU CHOOSE THE RECIPE? Chocolate in any form is the best way to end a good meal! NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

BUSINESS SEGMENTS AND SIGNIFICANT ACQUISITIONS CONTINUED

Acquisitions during

1 Centrum Egzekwowania Należności Trudnych “CENT” Sp. Z o.o. On June 1, 2007, transcom WorldWide acquired 100% of of the Debt Collection operations, Centrum egzekwowania Należności trudnych “CeNt” sp. Z o.o. from its shareholders for a total consideration of €2.5 million in cash plus transaction costs of €163 thousand. A further performance-based earn-out of up to €1.5 million is payable in early 2009 and is dependent upon CeNt achieving certain operating proﬁt (eBIt) targets. June 1, 2007 €000 Net assets acquired Non-current assets 28 trade receivables 277 Other receivables 6 trade payables (21) Other payables (135) Cash and bank 80 Total net assets 235 total consideration 2,663 Goodwill arising 2,428

Management performed an analysis of the identifiable tangible and intangible assets of Centrum egzekwowania Należności trudnych “CeNt” sp. Z o.o and determined that no significant intangible assets, other than goodwill, should be recognised. An impairment test was conducted as at December 31, 2007 which indicated that no impairment charge was necessary. the revenue for the period, should the company have been acquired on January 1, 2007, would have been €1,255 thousand, with a resulting proﬁt of €165 thousand. the proﬁt included in the Group’s results for the period since the acquisition date to December 31, 2007 is €96 thousand.

NuComm International On August 27, 2007, transcom WorldWide acquired 100% of the North American contact call centre operations of NuComm International for a cash consideration of C$50 million (€35 million) in cash plus transaction costs of C$836 thousand (€585 thousand) with a further C$40 million (€28 million) being subject to a two-tier earn-out ending in December, 2008. the earn-out is calculated as the balance due based on a complete deal valuation multiple of nine times the forecasted 2008 eBIt, but is capped at C$40 million (€28 million). the ﬁrst earn-out of C$10 million (€7 million) has been taken into account in the table below for the purpose of calculating goodwill.

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

BUSINESS SEGMENTS AND SIGNIFICANT ACQUISITIONS CONTINUED

NuComm International continued July 31, 2007 CAD$000 Net assets acquired Intangible assets 15,750 Deferred tax on identified intangibles (4,725) Non-current assets 11,438 trade receivables 28,715 Other receivables 6,372 Cash and bank 1,414 Non-current liabilities (21,341) trade payables (12,252) Other payables (21,282) Total net assets 4,089 Cash consideration 50,836 reimbursement of loans (39,398) First earn-out 10,000 Total net consideration 21,438 Goodwill arising in CAD$000 17,349

Goodwill arising converted at exchange rate prevailing on the date of acquisition in € 12,175

Management performed an analysis of the identifiable tangible and intangible assets of NuComm International and determined that significant intangible assets, including goodwill, should be recognised as shown above. An impairment test was conducted as at December 31, 2007 which indicated that no impairment charge was necessary.

the revenue for the period, should the company have been acquired on January 1, 2007 would have been €77,000 thousand, with a resulting proﬁt of €3,794 thousand.

the proﬁt included in the Group’s results for the period since the acquisition date to December 31, 2007 is €1,581 thousand.

IS Inkasso Service Group On september 3, 2007, transcom WorldWide GmbH purchased 100% of Is Inkasso service Group, the largest debt collection agency in Austria, for a total consideration of €39 million in cash plus transaction costs of €368 thousand. september 1, 2007 €000 Net assets acquired Intangible assets 14,599 Deferred tax on identified intangibles (3,034) Non-current assets 493 trade receivables 65 Other receivables 425 Other payables (1,998) Total net assets 10,550 total consideration 39,368 Total goodwill 28,818

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

BUSINESS SEGMENTS AND SIGNIFICANT ACQUISITIONS CONTINUED

IS Inkasso Service Group continued the revenue for the period, should the company have been acquired on January 1, 2007 would have been €23,345 thousand, with a resulting proﬁt of €5,986 thousand. the proﬁt included in the Group’s results for the period since the acquisition date to December 31, 2007 is €2,703 thousand.

Management performed an analysis of the identiﬁable tangible and intangible assets of Is Inkasso service Group and determined that signiﬁcant intangible assets, including goodwill, should be recognised as shown above. An impairment test was conducted as at December 31, 2007 which indicated that no impairment charge was necessary.

Acquisitions during

1 Dr Finsterer + Koenigs Inkasso Gmbh On January 31, 2006, transcom WorldWide purchased 100% of the German Debt Collection operations of Dr Finsterer + Koenigs Inkasso Gmbh for a total consideration of €8 million in cash, with a further €1 million payable depending on performance over the following years.

January 31, 2006 €000 Net assets acquired Non-current assets 862 trade receivables 173 Other receivables 640 trade payables (64) Other payables (1,846) Cash and bank 335 Total net assets 100 total consideration 8,000 Goodwill arising 7,900 Deferred consideration 500 Total goodwill 8,400

Management performed an analysis of the identifiable tangible and intangible assets of Dr Finsterer + Koenigs Inkasso Gmbh and determined that no significant intangible assets, other than goodwill, should be recognised. An impairment test was conducted as at December 31, 2007 which indicated that no impairment charge was necessary.

Dessert 1 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

BUSINESS SEGMENTS AND SIGNIFICANT ACQUISITIONS CONTINUED

Stockholm Tolkförmedling Aktiebolag On February 1, 2006, transcom WorldWide purchased 100% of stockholms tolkförmedling Aktiebolag for a total consideration of €2,565 thousand in cash, with a further maximum of €425 thousand payable depending on performance over the next two years. February 1, 2006 €000 Net assets acquired Non-current assets 41 trade receivables 447 Other receivables 941 trade payables (64) Other payables (1,348) Cash and bank 480 Total net assets 497 total consideration 2,565 Goodwill arising 2,068 Deferred consideration 221 Total goodwill 2,289

Management performed an analysis of the identifiable tangible and intangible assets of stockholms tolkförmedling Aktiebolag and determined that no significant intangible assets, other than goodwill, should be recognised. An impairment test was conducted as at December 31, 2007 which indicated that no impairment charge was necessary.

Credit & Business Services Limited On March 29, 2006, transcom WorldWide purchased 100% of the Debt Collection operations based in UK of Credit & Business services Limited for a total consideration of €3,340 thousand in cash, with a further consideration of €3,260 thousand payable in a performance-based earn out. March 29, 2006 €000 Net assets acquired Non-current assets 14 trade receivables 2,516 trade payables (1,713) Cash and bank 23 Total net assets 840 total consideration 3,340 Goodwill arising 2,500 Deferred consideration 1,773 Total goodwill 4,273

Management performed an analysis of the identifiable tangible and intangible assets of Credit & Business services Limited and determined that no significant intangible assets, other than goodwill, should be recognised. An impairment test was conducted as at December 31, 2007 which indicated that no impairment charge was necessary.

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

DEPRECIATION AND AMORTISATION 2006 € €000 Depreciation Property, plant and equipment (1,) (10,170) Amortisation Intangible assets (1,) – (1,1) (10,170)

FINANCE COSTS 2006 € €000 Finance costs to unrelated parties (,) (603)

TAXES

Distribution of income and tax the distribution of income before tax, current tax and deferred tax were:

2006 € €000 Distribution of income before tax Luxembourg 1, 17,328 Outside Luxembourg 1, 20,591 , 37,919 Current income tax charge Luxembourg (1,) (1,938) Outside Luxembourg (,1) (6,674) (,) (8,612) Deferred income tax relating to origination and reversal of temporary differences Luxembourg – – Outside Luxembourg (1,095) Income taxes expense reported in the income statement (,) (9,707)

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

TAXES CONTINUED

Effective tax rate A reconciliation of the statutory tax rate to the Company’s effective tax rate applicable to income from continuous operations was: 2006 2006 € % €000 % Accounting profit before income tax , – 37,919 – statutory tax (expenses)/benefit tax rate in Luxembourg (,) (.) (11,520) (30.4) Foreign tax rate differential , . 4,395 11.6 Losses for which no tax benefit is recognised (1,) (.) (1,192) (3.1) Losses utilised . 120 0.3 Other, net () (.) (415) (1.1) Effective tax/tax rate (,) (.) (8,612) (22.7) Deferred tax movement – (1,095) – Total tax charge (,) (.) (9,707) (25.6)

As a Luxembourg company, the parent company is exempt from Luxembourg taxation on most of its foreign pre-tax earnings when earnings are effectively repatriated. the Company provides taxes on the undistributed earnings of foreign subsidiaries when exemptions are not granted, except to the extent that such earnings are indefinitely invested outside Luxembourg. If these undistributed earnings were not considered to be indefinitely invested a deferred income tax would be provided. the deferred income tax relating to such undistributed earnings is not material.

Deferred income tax – assets Deferred income tax at December 31, relates to the following:

Consolidated Consolidated balance sheet income statement 2006 2006 € €000 € €000 Deferred income tax assets timing differences on depreciation of assets 281 (486) Other timing differences (11) 48 (1) (83) Losses available for offset against future taxable income 304 (526) Deferred income/(expenses) – – (1,095) Deferred tax assets reflected in the balance sheet as follows 1,11 633 – –

Distribution of tax assets the deferred tax assets are geographically distributed as follows:

2006 € €000 Distribution of deferred tax assets Luxembourg – – Outside Luxembourg , 3,713 Valuation allowance (,) (3,080) 1,11 633

Dessert DELICIOUS PLUM CAKE WITH POPPY SEEDS BY HANA STEPANKOVA COLLECTION DEPARTMENT PRAGUE, CZECH REPUBLIC HANA STEPANKOVA COLLECTION DEPARTMENT PRAGUE, CZECH REPUBLIC

WHAT DO YOU DO AT TRANSCOM? I have been working as a Collection Team Leader for two years.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB? I enjoy ﬁnding creative ways of developing and supporting my team of operators in the Collection department. My work brings me satisfaction, thanks to the good results that my team achieves.

This one is really worth WHERE DO YOU WORK/LIVE? the effort! I live and work in Prague.

WHAT ARE YOUR INTERESTS/HOBBIES? Reading, cuisine (especially desserts!), nature and culture. My favourite hobby is walking my dog Anicka with a book in my pocket.

WHY DID YOU CHOOSE THIS RECIPE? I love all recipes with poppy seeds and this one is really worth the effort!

DELICIOUS PLUM CAKE WITH POPPY SEEDS 250g semi-smooth ﬂour / 200g sugar / 1 teaspoon baking powder / 2 whole eggs / 2 tablespoons oil / 1 tablespoon water / stoned plums / cinnamon sugar / ground poppy seeds, mixed with sugar / ﬂour / sugar and butter for crumbs

Put the ﬂour, sugar, baking powder, eggs, oil and water into a bowl and stir until it has a thick consistency. Place the mixture on a greased and ﬂoured baking sheet and put in an oven-proof tray, adding the plum halves and a sprinkling of cinnamon sugar. Then, mix the ground poppy seeds mixed with sugar and butter and add for a delicious crumbly topping. Bake for approximately 30-40 minutes in a preheated oven at 190ºC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

TAXES CONTINUED

Deferred income tax – liabilities Consolidated Consolidated balance sheet income statement 2006 2006 € €000 € €000 Deferred income tax liabilities timing differences on depreciation of assets , – – Deferred income – – – reflected in the balance sheet as follows Deferred tax liabilities , – – –

Distribution of tax liabilities the deferred tax liabilities are geographically distributed as follows:

2006 € €000 Distribution of deferred tax liabilities Luxembourg – – Outside Luxembourg , – , –

Tax loss carry-forward Deferred tax assets are recognised only where future profits are expected to be realised, and the loss able to be off-set against these future profits, before the expiration of the loss dependent upon the specific tax law of the jurisdiction of the loss.

Certain tax losses existed as at December 31, 2007 and December 31, 2006 where deferred tax assets were not recognised. these losses will be carried forward until such time as they can either be utilised, or expire.

BASIC AND DILUTED ACTUAL AND PRO FORMA EARNINGS PER SHARE

Basic earnings per share were determined based on reported net income divided by the weighted average of shares outstanding in the Company, which was 72,994,435 (2006: 72,665,810).

Diluted earnings per share in 2007 includes an adjustment for outstanding share options of 651 thousand (2006: 822 thousand). there are no post balance sheet events which could have an impact on the basic earnings per share or the diluted earnings per share.

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

DIVIDENDS PAID AND PROPOSED 2006 € €000 Declared and paid during the year: – – equity dividends on ordinary shares: – – Dividend paid in 2006: €0.35 per share – 25,442 – 25,442

NON-CURRENT ASSETS

Property, plant and equipment 2006 Property, Property, plant and plant and equipment equipment € €000 Opening acquisition values 1,1 72,733 Business acquisition , 2,033 Purchases 1, 16,911 Development costs 1, 101 sales/scrapping (,) (1,097) Other (1) 461 Closing acquisition values 1, 91,142 Opening accumulated depreciation (,) (50,641) Business acquisition (1,1) (1,116) sales/scrapping ,1 812 Depreciation (1,) (10,170) Other (1) 275 Closing accumulated depreciation (,) (60,840) Closing net book value ,1 30,302

Development costs consist of amounts identified by management where it is considered that technological and economical feasibility exists, usually determined by reference to the achievement of defined milestones according to an established project management model.

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

INTANGIBLE ASSETS Intangible Goodwill assets total €000 €000 €000 Opening acquisition values 75,625 – 75,625 Business acquisition 43,421 25,651 69,072 Deferred payments 1,464 – 1,464 Closing acquisition values 120,510 25,651 146,161 Opening accumulated amortisation ––– Amortisation – (1,085) (1,085) Net exchange differences during the period (444) – (444) Closing accumulated amortisation (444) (1,085) (1,529) Closing net book value 120,066 24,566 144,632

Intangible assets acquired in the year consisted of: customer relationships (€24,044 thousand); technology (€189 thousand); non-competition agreements (€288 thousand); and trade names (€1,130 thousand).

Acquisitions during the year Intangible assets were acquired through the purchase of subsidiaries. these intangible assets have useful lives varying between 2 and 15 years.

Goodwill is determined to have an indeﬁnite useful life. As at December 31, 2007 these assets were tested for impairment (note 11).

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 INVESTMENT IN SUBSIDIARIES 2006 Country of Capital/voting Capital/voting subsidiary incorporation interest (%) interest (%) Is Forderunsmanagement GmbH Austria 1 – Is Inkasso service GmbH Austria 1 – transcom Forderungsmanagement GmbH Austria 1 – transcom WorldWide GmbH Austria 1 100 transcom WorldWide Belgium sA Belgium 1 100 FCC Holdings Ltd Canada 1 – Federal Credit & Consulting Corporation Canada 1 – NuComm Credit services Inc Canada 1 – NuComm Global solutions Inc Canada 1 – NuComm Insurance Agency Inc Canada 1 – NuComm Marketing Inc Canada 1 – NuVoxx Inc Canada 1 – the NuComm Corporation Canada 1 – transcom Worldwide Canada Inc Canada 1 – transcom Worldwide Chile Limitada Chile 1 100 Is Inkasso servis d.o.o. Croatia 1 – transcom WorldWide d.o.o. Croatia 1 100 Is Cr Inkasso s.r.o Czech republic 1 – transcom WorldWide Czech republic s.r.o. Czech republic 1 100 transcom CMs As Denmark 1 100 transcom Denmark A/s Denmark 1 100 transcom eesti OY estonia 1 100 transcom Finland OY Finland 1 100 tMK Worldwide sasu France 1 – transcom WorldWide France sAs France 1 100 CIs International GmbH Germany 1 100 Dr. Finsterer + Königs Inkasso GmbH Germany 1 100 IK transcom europe GmbH Germany 1 100 transcom WorldWide GmbH Germany 1 100 Cee Holding KFt Hungary 1 100 transcom Hungary KFt Hungary 1 100 transcom WorldWide spa Italy 1 99 transcom WorldWide Latvia Ltd Latvia 1 100 transcom WorldWide Vilnius UAB Lithuania 1 100 transcom europe Holding BV the Netherlands 1 100 transcom WorldWide BV the Netherlands 1 100 CIs Concept As Norway 1 100 ergo Inkasso As Norway 1 – transcom As Norway 1 100 transcom Credit Management services As Norway 1 100 transcom Norge As Norway 1 100 NuComm International Philippines Inc Philippines 1 – Centrum egzekwowania Należności trudnych “CeNt” sp z.o.o. Poland 1 – transcom WorldWide Poland sP.zo.o. Poland 1 100 tWW servicos de Helpline e de Atendimento telefonico Lda Portugal 1 100 transcom Worldwide slovakia s.r.o. slovakia 1 100 transcom WorldWide spain s.L.U. spain 1 100 stockholms tolkförmedling AB sweden 1 100 tolk och språktjänst i Östergötland AB sweden 1 – transcom AB sweden 1 100 transcom CMs AB sweden 1 100 transvoice AB sweden 99 Is Cr Inkasso service GmbH switzerland 1 – transcom WorldWide AG switzerland 1 100 transcom WorldWidetunisia sArL tunisia 1 100 transcom turkey turkey 1 100 Credit & Business services Limited United Kingdom 1 100 top Up Mortgages Ltd United Kingdom 1 100 transcom WorldWide (UK) Limited United Kingdom 1 100 Cloud 10 United states 60 Dessert NuComm International Us Inc United states 1 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

11 IMPAIRMENT TESTING OF GOODWILL AND INTANGIBLES WITH INDEFINITE LIVES

Goodwill acquired through business combinations with indeﬁnite lives have been reviewed in accordance with key assumptions in order to identify if any impairment needs to be recognised in the ﬁnancial year.

Key assumptions recognised goodwill has been reviewed for impairment by taking into account the budgeted ﬁgures of each subsidiary or group of subsidiaries, and applying appropriate growth margins and discount rates dependent upon market conditions and other external risk factors.

Growth margins – Growth margins are based on management assumptions of the development of the business over the next ﬁve years, based on projections made. Growth margins range between 5% and 25%.

Market conditions – Market conditions take into account the nature of risk within geographical markets and management’s estimations of change within these. external risk factors – external risk factors are predominantly the effect of other key competitors and the effect on cost of capital.

Discount rates of between 5% and 7% have been used in order to allow for market conditions and external risk factors.

1 TRADE AND OTHER RECEIVABLES 2006 € €000 Gross accounts receivable 1, 112,478 Less: allowances for doubtful accounts (1,) (1,446) 1, 111,032

Of the accounts receivable, €50,924 thousand is from related parties as detailed in note 26.

Allowances for doubtful accounts were as follows: 2006 € €000 Opening balance (1,) (1,590) Business acquisitions (1) – Provision for bad debts () 144 Closing balance (1,) (1,446)

As at December 31, the ageing analysis of net trade receivables is as follows:

total <30 days 30-60 days 60-90 days 90-120 days >120 days 1, , , , ,1 , 2006 111,032 52,391 47,150 7,786 1,779 1,926 transcom operates in several jurisdictions and payment terms vary upon this, and also vary on a client by client basis. therefore, based upon the maximum payment terms, €3,952 thousand of trade receivables as at December 31, 2007 are past due but not provided for.

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 PREPAID EXPENSES AND ACCRUED INCOME 2006 € €000 Accrued income , 3,697 Prepaid insurance premiums 1 105 Prepaid rents , 760 Other prepayments , 7,198 1,1 11,760

1 EQUITY

Authorised 2006 Number Number 000 Class A voting shares without par value , 800,000 Class B voting shares without par value , 750,000

Ordinary shares issued and fully paid Number Value Class A shares 000 €000 As at January 1, 2007 36,385 15,656 Issued on March 1, 2007 for cash on exercise of share options 16 9 Issued on March 23, 2007 for cash on exercise of share options 42 23 Issued on June 14, 2007 for cash on exercise of share options 84 Issued on July 6, 2007 for cash on exercise of share options 17 9 Issued on August 22, 2007 for cash on exercise of share grants 95 52 Issued on November 21, 2007 for cash on exercise of share options 17 9 As at December 31, 2007 , 1,

Number Value Class B shares 000 €000 As at January 1, 2007 36,383 15,587 Issued on March 1, 2007 for cash on exercise of share options 16 9 Issued on March 23, 2007 for cash on exercise of share options 42 23 Issued on June 14, 2007 for cash on exercise of share options 84 Issued on July 6, 2007 for cash on exercise of share options 17 9 Issued on August 22, 2007 for cash on exercise of share grants 94 53 Issued on November 21, 2007 for cash on exercise of share options 17 10 As at December 31, 2007 , 1, Total as at December 1, ,1 1,

Dessert TRIPLE CHOCOLATE MUFFINS BY KRISTINA REPINAC HR ASSISTANT OSIJEK, CROATIA TRIPLE CHOCOLATE MUFFINS

This recipe is now a classic with my colleagues at Transcom Osijek!

2 cups plain ﬂour / 1 teaspoon baking powder / ¼ cup cocoa powder / 2 tablespoons caster sugar / 200g dark chocolate / 1 egg, lightly beaten / ½ cup sour cream / ½ cup milk / ¼ cup rum / 90g butter, melted / 50g dark chocolate / 2 tablespoons butter / chopped almonds

Cut the chocolate into small pieces and then put in with the ﬂour, cocoa, baking powder and sugar into a big bowl and leave it covered overnight.

In the morning, preheat the oven to 180˚C and mix all the beaten eggs, then the milk, rum, sour cream and melted butter in a different bowl. Add this mixture to the solids and stir with a fork until completely mixed. If this dough looks a bit lumpy, don’t worry, it’s supposed to be!

Spoon the mixture into a 12-hole cake tin (brushed earlier with melted butter) and put it in the oven for 12-15 minutes. After the mufﬁns have cooled off in the paper holders, cover them with more melted chocolate, mixed with a little butter, and decorate with chopped almonds.

KRISTINA REPINAC HR ASSISTANT OSIJEK, CROATIA

WHAT DO YOU DO AT TRANSCOM? I am an HR Assistant and I deal mostly with recruitment and testing, reporting, salary calculations, job ads design and HR database updating.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB? Being able to make a difference to people and express my opinion and creativity. I enjoy dealing with a variety of ﬁelds such as psychology, IT and law. Also, I love the exposure to diverse cultures and languages.

WHERE DO YOU WORK/LIVE? I live and work in Osijek, a city in north-east Croatia. I am married and I have a three-year-old son.

WHAT ARE YOUR INTERESTS/HOBBIES? While I was pregnant, I couldn’t I like programming and designing on my PC. I listen get chocolate off my mind! to rock music and enjoy travelling to concerts in different countries.

WHY DID YOU CHOOSE THIS RECIPE? I was always a vanilla person and I avoided anything with chocolate in it, but this changed drastically while I was pregnant – I couldn’t get chocolate off my mind! I found an old English teatime treat recipe and then doubled the amounts of chocolate inside, putting more chocolate on top, and adding some rum and almonds until it was a perfect ﬁt with my craving! It was the favourite food for my unborn, chocolate-loving baby and now it is the favourite dessert for all my family and friends, including my colleagues in the call centre. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 EQUITY CONTINUED

Share capital each Class A share has one vote attached and has the right to receive dividends as shown below. each Class B share has no voting rights attached and has the right to receive dividends as shown below.

Dividends Dividends may be paid in euros or in the Company’s shares or otherwise as the Board may determine in accordance with the provisions of the Luxembourg Companies Act. the transcom WorldWide Class B shares are entitled to the greater of (i) a cumulative preferred dividend corresponding to 0.5% of the accounting par value of the Class B shares in the Company; and (ii) 2% of the overall dividend distributions made in a given year. Any balance of dividends must be paid equally on each transcom WorldWide Class A and transcom WorldWide Class B share.

Nature and purpose of reserves

Legal reserve In accordance with statutory requirements in Luxembourg, the parent company must maintain reserves not available for distribution. the parent company is required under Luxembourg law to transfer 5% of its annual net proﬁts to a restricted legal reserve until such reserve amounts to 10% of the subscribed share capital. similar restrictions are applicable for some of the subsidiaries. retained earnings the Luxembourg Companies Act provides that the parent company’s own earnings after allocation to its legal reserve and after covering losses for previous years shall be available for distribution to shareholders. the shareholders have the authority to declare dividends, upon the recommendation of the Board of Directors, out of retained earnings of the parent company subject to the Luxembourg Companies Act. the Articles provide the Board of Directors with the general authority to make dividend payments in advance of shareholder approval and to ﬁx the amount and the payment date of any such advance dividend payment. Dividends declared by the Board of Directors are subject to the approval of the shareholders at the next general meeting of shareholders. equity-based payment reserve the equity-based payment reserve is used to record the value of equity-settled payments provided to certain employees, including key management personnel, as part of their remuneration package. (see note 22)

Foreign currency translation reserve the foreign currency translation reserve is used to record exchange differences arising from the translation of the ﬁnancial statements of subsidiaries reporting in a non- functional currency.

Dessert 1 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 OBLIGATIONS UNDER FINANCE LEASES Present value Minimum lease payments Minimum lease payments 2006 2006 € €000 € €000 Within one year – – In the second to fifth years inclusive – – 1 – 1 – Less: future finance charges – – – – Present value of lease obligations 1 – 1 – Amount due for settlement within 12 months (shown under current liabilities) – Amount due for settlement after 12 months – 1 –

1 BANK LOAN AND CREDIT FACILITIES

On April 12, 2007 the Company contracted a revolving variable credit rate facility agreement for an amount of €150 million for a period of ﬁve years carrying interest of IBOr, plus a margin of between 0.30% and 0.75%.

As of December 31, 2007, an amount of €115.5 million was drawn. the Company is committed under this agreement to maintaining a number of covenants requiring certain ﬁnancial ratios to be maintained within agreed limits in order to provide sufﬁcient security to the lender. the loan is unsecured.

An unused amount of €34.5 million on a revolving borrowing facility exists which could be used to settle capital commitments. there are no restrictions on the use of this borrowing facility.

On April 24, 2006 the company contracted a revolving variable credit rate facility agreement for an amount of €50 million for a period of ﬁve years. All amounts drawn down were effectively transferred to the new revolving credit facility contracted on April 12, 2007.

On March 26, 2008, the Company extended its current facility agreement by €50 million to a total of €200 million.

1 OTHER LIABILITIES 2006 € €000 social charges related to salaries 1,1 15,013 sales taxes 1, 2,317 Other liabilities – 330 ,1 17,660

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 ACCRUED EXPENSES AND PREPAID INCOME 2006 € €000 Accrued personnel expenses 1, 21,455 Amounts payable on business combinations , – Accruals and prepaid income 1, 22,490 , 43,945

1 COMMITMENTS AND LONG-TERM OBLIGATIONS some companies in the Group have entered into agreements to rent premises. In 2007, €16,076 thousand (2006: €13,719 thousand) was paid for rent related to non-cancellable leases. Generally, the Group’s lease contracts require deposits and certain provisions of inﬂation-indexed rental increases.

Future payments for rent on non-cancellable leases for premises at December 31, 2007 are as follows:

Premises Year of expiry €000 2008 16,041 2009 11,636 2010 7,017 2011 4,310 2012 3,348 2013 and thereafter 2,127 total 44,479

CONTINGENT LIABILITIES the Company is party to routine litigation incidental to the normal conduct of its businesses. the Company does not believe that the outcome to these proceedings, or the proceedings related to the compulsory acquisition and related proceedings discussed above, individually or in aggregate, after taking into account the amounts reserved with respect to such matters, will have a material adverse effect on the consolidated ﬁnancial position or results of operations of transcom WorldWide s.A. and its subsidiaries.

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

1 SALARIES AND EMPLOYEE PENSIONS

Salaries, other remuneration and social security charges salaries, other remuneration and social security charges were as follows: 2006 Board of Board of Directors Directors 2006 and senior Other and senior Other management employees management employees € € €000 €000 Companies in Luxembourg 1, 1, 906 9,013 Companies outside Luxembourg 1, ,1 2,186 275,163 salaries and other remuneration , 1, 3,092 284,176 social security charges , 377 52,924 Pension expenses , 37 4,049

the following amounts of salaries are included in cost of sales, selling expenses and administrative expenses respectively: €240,283 thousand, €9,471 thousand, €24,769 thousand.

Directors’ remuneration the President and Chief executive Officer, Keith russell, received salary and remuneration of €875 thousand in the year. the Chairman of the Board, Mr. William Walker received €95 thousand as Board fees, and the other members of the Board received a total of €180 thousand as Board fees. the Board fees are determined by the Annual General Meeting, compensation of the President and Chief executive Officer is determined by the Board, compensation of senior management is determined by the Board in conjunction with the President and Chief executive Officer.

Employee pensions substantially all of the Group’s employees are covered by government-sponsored pension and welfare programmes. Under the terms of the programmes, the Group makes periodic payments to various government agencies. In addition, the Group provides retirement benefits through the sponsorship of defined contribution plans and defined benefits plans. Benefits under these plans are generally based on years of service and the employees’ compensation. At December 31, valuations have been carried out in accordance with IAs 19 on defined benefit plans to ensure that the provisions in the accounts are sufficient to cover foreseeable future liabilities. Pension costs are recognised through the income statement.

SHARE-BASED PAYMENT PLANS

the expense recognised for employee services received during the year is shown in the following table:

2006 € €000 expenses arising from equity-settled share-based payment transactions 1 386

the share-based payment plans are described below. there have been no cancellations or modifications to the plans during 2007. A new share grant and share option plan was set up and implemented on November 15, 2006 (vesting dates June 30, 2007, June 30, 2008 and June 30, 2009).

Share option agreement In 2006 the Company granted additional options to key management employees and executive officers of the Company to purchase shares in the Company. the options were granted for a fixed number of shares and at a fixed exercise price that was equal to the estimated fair market value on the date of grant. each option vests in three equal parts: the first after one year, the second after two years and the third after three years. the expense recognised in the consolidated statement of operations for equity-settled transactions was €393 thousand as at December 31, 2007 (2006: €146 thousand).

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

SHARE-BASED PAYMENT PLANS CONTINUED the following table summarises the Company’s share option activity. Weighted average Weighted Number exercise Number average of shares price of options remaining € months Outstanding at the beginning of the period . Granted 1 . 1 exercised (1) . (1) Forfeited –––– Cancelled –––– Outstanding at the end of the period 1 . 1 Options exercisable at year end .1 the following table summarises information about options outstanding and exercisable at December 31, 2007.

Exercisable Average Average Number of Outstanding exercise price Number of exercise price options average life* € options € 1 . .1

* Weighted-average contractual life remaining in months. share options have been valued using the Black & scholes model which utilises seven parameters to value the options, being the share price at measurement date (A shares seK 68.00 and B shares seK 76.5), exercise price (A shares seK 65.0 and B shares 75.8), maturity (30 June 2012), risk-free rate (between 3.89% and 3.94%), future volatility of the share (by utilising comparable companies as benchmark, 34.42%), future dividend yield (nil) and dilution (total number of shares outstanding, A shares 36,580,046 and B shares 36,577,151). the share options have been valued at the start date of the plan and in accordance with IFrs have not been revalued as no signiﬁcant changes to the contents or rules of the plan have been made. the value of the plan has been apportioned equally over the total period of the plan and provisions are made as necessary through the income statement.

Share grant agreement In 2006, the Company had granted the right to key management employees and executive officers of the Company to purchase and receive shares in the Company in the context a new share grant and share option agreement. the rights were granted for a fixed number of shares and at a fixed exercise price of €0.43. each right vests on June 30, 2007, 2008 and 2009. Vesting of granted shares depends on targets being achieved. the expense recognised in the consolidated statement of operations for equity settled transactions was €321 thousand as at December 31, 2007 (2006: €240 thousand).

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

SHARE-BASED PAYMENT PLANS CONTINUED

the following table summarises the Company’s share grant activity. Weighted average Weighted Number exercise Number average of shares price of rights remaining € months Outstanding at the beginning of the period 1 .1 1 Granted . 1 exercised () . () – Forfeited –––– Cancelled –––– Outstanding at the end of the period . 1

share grants have been recognised through the income statement at full value once the right to the shares has been established. share grants are recognised at nominal value as per the share grant scheme.

SUPPLEMENTAL CASH FLOW INFORMATION

the Company paid corporate income taxes of €5,292 thousand for the year ended December 31, 2007 (2006: €8,674 thousand). Finance costs of €4,093 thousand (2006: €604 thousand) were paid and ﬁnance income of €1,004 thousand (2006: €482 thousand) was received in 2007.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Identification of risks and risk analysis For the presentation of market risks, IFrs 7 requires sensitivity analysis that shows the effects of hypothetical changes of relevant risk variables on the income statement and shareholders’ equity. transcom is exposed to interest rate risk and liquidity risk, the periodic effects of which are determined by relating the hypothetical changes in the risk variables to the balance of ﬁnancial instruments at the reporting date. It is assumed that the balance at the reporting date is representative for the year as a whole.

Foreign currency risk as defined by IFrs 7 arises on account of financial liabilities being denominated in a currency that is not the functional currency and being of a monetary nature, differences resulting from the translation of financial statements into the Group’s presentation currency are not taken into consideration. relevant risk variables are generally all non-functional currencies in which transcom has financial instruments.

the currency sensitivity analysis is based on the following assumptions:

Major non-derivative monetary financial instruments (liquid assets, receivables, interest bearing liabilities and non-interest bearing liabilities) are either directly denominated in the functional currency, or are counter-balanced by equal amounts of assets/liabilities in the same non-functional currency. exchange rate fluctuations therefore have a restricted effect on profit or loss, or shareholders’ equity.

Dessert CANADIAN PUMPKIN PIE BY JOANNE SZABO RECEPTIONIST ST. CATHARINES, CANADA JOANNE SZABO RECEPTIONIST ST. CATHARINES, CANADA

WHAT DO YOU DO AT TRANSCOM? I am the Corporate Ofﬁce Receptionist and the voice of Transcom's North American division.

WHAT DO YOU LIKE/FIND INTERESTING ABOUT YOUR JOB? I like the fast-paced daily routine that goes along with being in this position. It certainly keeps you on your toes!

WHERE DO YOU WORK/LIVE? I live in a small city called Welland in Ontario, Canada. My city is best known for its shipping waterway which is part of the St. Lawrence Seaway. The seaway system is connected by six short canals with a total length of 60 nautical miles. There are 19 locks that are ﬁlled It’s a tradition – you can’t have and emptied, with a little help from gravity! one without the other! WHAT ARE YOUR INTERESTS/HOBBIES? I have two young children who keep me very busy, but in the spare time that I do have, I've taken an interest in photography.

WHY DID YOU CHOOSE THIS RECIPE? One of my favourite holidays is Thanksgiving and I can’t imagine a better way to end this family gathering than with a slice of my Pumpkin Pie. It's a tradition – you can't have one without the other!

CANADIAN PUMPKIN PIE 2 cups canned pumpkin / 2 large eggs / ¾ cup brown sugar / ¾ cup table cream / ¼ cup maple syrup / ½ teaspoon vanilla extract / ¼ teaspoon salt / ½ teaspoon ground cinnamon / ¼ teaspoon allspice / ¼ teaspoon ground ginger / 1 frozen pie crust (9 inch)

Preheat the oven to 200ºC. Pierce the pie crust with a fork all over and bake for about 15 minutes or until browned, pressing the base occasionally to avoid bubbling. Cool the crust on a wire rack and reduce the oven temperature to 180ºC.

Place the pumpkin, eggs, brown sugar, salt, vanilla, cinnamon, allspice and ginger in a large bowl and then beat with a mixer until they are well and truly combined. Add cream and maple syrup and repeat. Pour the mixture into the pie crust.

Bake the pie for 1 hour, or until the ﬁlling has set. Place on the wire rack until cool. Cut the pie into 8 equal slices and serve while it’s still a little warm with a dollop of whipped cream. Enjoy! NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES CONTINUED

Interest income and interest expense from ﬁnancial instruments can be recorded in either the functional or non-functional currency and therefore could be affected by exchange rate movements. It is however considered that this effect would be insigniﬁcant.

If the euro had lost 10% against the Us Dollar as at December 31, 2007, with the consequential borrowing amounting to UsD30,000 thousand and approximately identical Us denominated assets, the proﬁt and loss for the year would have been €398 thousand lower.

If the euro had lost 10% against other non-functional currencies as at December 31, 2007, the effect on the income statement for the year would have been €72 thousand lower. the Group’s principal financial instruments, other than derivatives, comprise of bank loans and trade payables. the main purpose of these financial instruments is to raise finance for the Group’s operations. the Group has various financial assets such as trade receivables, cash and short term deposits which arise directly from its operations.

It is, and has been throughout 2007 and 2006 the Group’s policy that no trading in derivatives shall be undertaken. the main risks arising from the Group’s ﬁnancial instruments are cash ﬂow interest rate risk, liquidity risk, foreign currency risk and credit risk. the Board of Directors reviews and agrees policies for managing each of these risks which are summarised below.

Interest rate risk the Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s revolving credit facility. the interest is calculated on each loan under the facility agreement for each term as the aggregate of the Interbank offered rate, plus a margin calculated on the basis of consolidated total net debt to consolidated earnings before interest, tax, dividends and amortisation, with rates ranging between 0.30% to 0.75%.

Interest rate risk table the following table demonstrates the sensitivity to a possible change in interest rates, with all other variables held constant, of the Group’s proﬁt before tax (through the impact on ﬂoating rate borrowings). there is no impact on the Group’s equity. Increase/ effect (decrease) on profit in basis before tax points €000 euro 1 Us Dollar 1 1 euro (1) () Us Dollar (1) 1 euro 10 2 Us Dollar 15 – euro (10) (2) Us Dollar (15) –

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES CONTINUED

Foreign currency risk As a result of signiﬁcant assets held in Us Dollars, the Group’s balance sheet can be affected by movements in the Us Dollar/euro exchange rates. this affect has been mitigated by non- functional currency borrowings on the revolving credit facility, however due to the fact that this borrowing does not match with parity the Us Dollar assets, a minimal risk still exists.

As at December 31, 2007 the Group’s assets denominated in Us Dollars amounted to UsD26,156 thousand, whereas the borrowings in Us Dollars amounted to UsD30,000 thousand. the effective coverage was therefore 87.2%.

Certain entities within the Group have transactions in non-functional currencies and therefore the Group has transactional currency exposures. such exposures arise from sales by an operating unit in currencies other than the Group’s functional currency. 40.79% of the Group’s sales are denominated in currencies other than the functional currency of the Group. there is no policy to hedge these transactional risks as the management consider that the non-transactional currencies are sufﬁciently stable that the potential effect on results is minimal. the Group’s management constantly monitors exchange rates on non-functional currencies and puts measures in place should a signiﬁcant risk arise.

Foreign currency risk table the following table demonstrates the sensitivity to a reasonably possible change in the Us Dollar, swedish Krona and Norwegian Krona exchange rates, with all other variables held constant, of the Group’s proﬁt before tax. effect Increase/ on profit effect (decrease) in before tax on equity euro rate €000 €000 Us Dollar 1% (1) swedish Krona 1% (1,) Norwegian Krona 1% (1) Us Dollar (1)% () swedish Krona (1)% (1) , Norwegian Krona (1)% () Us Dollar 10% –– swedish Krona 10% 95 (1,448) Norwegian Krona 10% 8 (102) Us Dollar (15)% –– swedish Krona (15)% (154) 2,813 Norwegian Krona (15)% (17) 196

Credit risk With respect to credit risk arising from the other ﬁnancial assets of the Group, which comprise cash and cash equivalents, the Group’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying value of these instruments. this risk is however is considered to be unlikely due to the historical default rates. Appropriate provisions have been made in accordance with Group policy and management discretion.

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES CONTINUED

Liquidity risk the Group monitors its risk to a shortage of funds using a consolidated cash ﬂow model in order to identify peaks and troughs in liquidity and identify beneﬁts which can be attained by controlled placement and utilisation of available funds.

A significant mitigating factor of the Group’s liquidity risk is the unused proportion of the revolving credit facility agreement. the unused proportion as at December 31, 2007 was €34,519 thousand. the table below summarises the maturity profile of the Group’s financial liabilities as at December 31, 2007, based on contractual undiscounted payments.

Although the revolving credit facility is shown as repayable in less than three months, the ongoing commitment of the lender has been assured by a recent increase in the available facility by €50 million.

Less than Three One Over Year ended On three to twelve to five five December 1, demand months months years years Total € € € € € € revolving credit facility – 11,1 –––11,1 trade and other payables – , –––,

Less than three One Over Year ended On three to twelve to five five December 31, demand months months years years total 2006 €000 €000 €000 €000 €000 €000 revolving credit facility – 19,197 –––19,197 trade and other payables – 30,482 –––30,482

Capital management the primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. the Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. to maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the years ended December 31, 2007 and December 31, 2006. the Group monitors capital using a return on capital employed ratio, which is earnings before interest, tax and amortisation divided by total assets less current liabilities. the Group’s policy is to ensure that the ratio follows predicted patterns based on previous year’s results, and is in accordance with forecasted results. the table below summarises the ratio as at December 31, 2007 and December 31, 2006.

2006 € €000 earnings before interest, tax and amortisation ,1 37,840 total assets , 266,717 Current liabilities (11,) (99,222) Capital employed , 167,495 return on capital employed 1.% 22.59%

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

FINANCIAL INSTRUMENTS

set out below is a comparison by category of carrying amounts and fair values of all of the Group’s ﬁnancial instruments. there are no discontinued operations. Carrying amount Fair value 2006 2006 € €000 € €000 Financial assets Cash and cash equivalents , 37,365 , 37,365 trade and other receivables 1, 111,032 1, 111,032 Financial liabilities Bank loan and credit facilities 11,1 19,197 11,1 19,197 trade and other payables , 30,482 , 30,482

the fair value of borrowings has been calculated by discounting the expected future cash flows at prevailing interest rates.

RELATED PARTY TRANSACTIONS

As a result of its substantial direct and indirect shareholdings in the tele2 Group, Invik Group, Kinnevik Group, MtG Group, and other companies, the stenbeck family has the potential to exert considerable inﬂuence in terms of ﬁnancial and operational decisions in these companies. these companies have been regarded as related parties to transcom WorldWide. Business relations between transcom WorldWide and all closely related parties are subject to commercial terms and conditions.

Dessert NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended December 31, 2007

RELATED PARTY TRANSACTIONS CONTINUED

Tele the Group provided customer service functions for certain tele2 group companies in exchange for service fees determined on an arm’s length basis. the transcom WorldWide Group’s sales revenue from the tele2 group companies amounted to €334,751 thousand in 2007 (2006: €376,481 thousand). sales revenues mainly relate to customer help lines and other CrM services.

Operating expenses, mainly for telephone services and switch, paid to tele2 group companies amounted to €8,480 thousand in 2007 (2006: €13,023 thousand). the Company rents premises from tele2 group companies under sub-lease agreements on the same commercial terms provided to tele 2. the Group’s receivables from and liabilities to tele2 Group companies at December 31, 2007 and 2006 were as follows: 2006 € €000 trade and other receivables ,1 74,989 trade and other payables () (774) Net liability , 74,215

MTG the Group provided customer service functions for certain MtG group companies in exchange for service fees determined on an arm’s length basis. the transcom WorldWide Group’s sales revenue from the MtG group companies amounted to €11,645 thousand in 2007 (2006: €17,318 thousand). sales revenues mainly relate to customer help lines. the Group’s receivables from MtG group companies were €1,818 thousand at December 31, 2007 (2006: €4,636 thousand).

Dessert 1 INDEPENDENT AUDITOR’S REPORT for the year ended December 31, 2007

to the shareholders of trANsCOM WOrLDWIDe s.A. société Anonyme Luxembourg

Report on the consolidated financial statements Following our appointment by the General Meeting of the shareholders dated May 29, 2007, we have audited the accompanying consolidated financial statements of trANsCOM WOrLDWIDe s.A., which comprise the consolidated balance sheet as at December 31, 2007 and the consolidated income statement, consolidated statement of changes in equity and consolidated cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory notes.

Board of Directors’ responsibility for the consolidated financial statements the Board of Directors is responsible for the preparation and fair presentation of these consolidated ﬁnancial statements in accordance with International Financial reporting standards as adopted by the european Union. this responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of consolidated ﬁnancial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.

Responsibility of the “Réviseur d’Entreprises” Our responsibility is to express an opinion on these consolidated ﬁnancial statements based on our audit. We conducted our audit in accordance with International standards on Auditing as adopted by the “Institut des réviseurs d’entreprises”. those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated ﬁnancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. the procedures selected depend on the judgment of the “réviseur d’entreprises”, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the “réviseur d’entreprises” considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufﬁcient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the consolidated financial statements give a true and fair view of the financial position of transcom WorldWide s.A. as of December 31, 2007, and of its financial performance and its cash flows for the year then ended in accordance with International Financial reporting standards as adopted by the european Union.

Report on other legal and regulatory requirements the consolidated management report, which is the responsibility of the Board of Directors, is in accordance with the consolidated ﬁnancial statements.

Ernst & Young, société Anonyme, réviseur d’entreprises

Dessert Werner Weynand Luxembourg, April 9, 2008 SPECIALS “DURING 2008 WE WILL REACH FULL EUROPEAN COVERAGE AND FOCUS ON FURTHER DEVELOPING OUR CMS OFFERING IN THE AMERICAS, THE LARGEST AND MOST ADVANCED MARKET IN THE WORLD. LEADING EDGE INFORMATION AND PROCESS MANAGEMENT TECHNOLOGY WILL DRIVE AND SUPPORT OUR SUCCESS ACROSS THREE CONTINENTS.”

JULIO PRADO GENERAL MANAGER, CREDIT MANAGEMENT HOW TO CONTACT uS

Corporate Ofﬁce C/Berlin 38-48, 5th Floor 08029 Barcelona, Spain Tel: +34 93 508 2799 Fax: +34 93 600 4150 Sales and marketing telephone: +34 93 600 4190

AuSTRiA CANADA Linz Vienna Barrie Owen Sound Südtirolerstaße 9 Modecenterstrasse 22/A1 110 Dunlop Street 1600 18th Avenue East A-4020 Linz A-1030 Vienna W. Barrie, Ontario Owen Sound, Ontario Tel: +43 1 732 600 631 000 Tel: +43 1 797 88 00 00 CA-L4N 4Y4 CA-N4K 5N3 Fax: +43 1 732 600 631 150 Fax: +43 1 797 88 00 01 Tel: +1 877 637 2615 Tel: +1 877 637 2615 Fax: +1 905 641 1456 Fax: +1 905 641 1456 SALZBuRgeR NOCKeRiN Brockville Regina 4 teaspoons unsalted butter / 4 teaspoons currant or grape jelly / 9 large 100 Strowger Blvd 2336 Victoria Avenue East egg whites / 1.2dl vanilla sugar / ½ lemon, zest of / 4 grated egg yolks / Brockville, Ontario Regina, SK 60ml granulated sugar / 1.2dl sifted flour CA-K6V 5J9 CA-S4N 6M5 Tel: +1 877 637 2615 Tel: +1 877 637 2615 Preheat the oven to 250ºC. Place 4 20cm oval au gratin dishes on a baking Fax: +1 905 641 1456 Fax: +1 905 641 1456 sheet. In each small dish place 1 teaspoon of butter and 1 teaspoon of jelly. Chatham Sault Ste. Marie Combine the egg whites, vanilla sugar, and lemon zest in a large metal bowl. 745 Richmond Street 24 Second Line Road West Beat with an electric mixer until stiff peaks form. Beat the egg yolks with the Chatham, Ontario Sault Ste. Marie, Ontario granulated sugar. Gently fold the egg yolks and flour into the meringue. Use CA-N7M 5J5 CA-P6C 2H9 a spatula to place three large mounds of the mixture into each au gratin dish. Tel: +1 877 637 2615 Tel: +1 877 637 2615 Smooth the surface of each and bake for 8 minutes. Serve immediately. Fax: +1 905 641 1456 Fax: +1 905 641 1456 Cobourg St. Catharines Northham Industrial Park, Bldg. #13, 80 King Street, 3rd Floor, 739 D’Arcy St. PO Box #276 Corbloc Building Cobourg, Ontario St. Catharines, Ontario BeLgiuM CA-K9A 4K8 CA-L2R 7G1 Tel: +1 877 637 2615 Tel: +1 877 637 2615 Heverlee Liège Fax: +1 905 641 1456 Fax: +1 905 641 1456 Green Hill Campus 80, rue d’Abhooz Interleuvenlaan 15 Blok I B-4040 Herstal London Temiskaming Shores B-3001 Heverlee Tel: +32 4248 6300 148 Fullarton St. 247 Whitewood Avenue Tel: +32 1674 0600 Fax: +32 4248 6301 Suite 400 Temiskaming Shores, Ontario Fax: +32 1674 0601 London, Ontario CA-P0J 1P0 CA-N6A 5P3 Tel: +1 877 637 2615 geNTSe WATeRZOOi Tel: +1 877 637 2615 Fax: +1 905 641 1456 Fax: +1 905 641 1456 1 (1.6kg) roasted chicken, cut into 8 pieces / salt / freshly ground white Toronto Montreal 703 Evans Avenue, Suite 200 pepper / 60ml unsalted butter / 2 medium size onions, finely chopped / 1980 Sherbrooke Street West Toronto, Ontario 2 shallots, finely chopped / 3 leeks, slit lengthwise, washed well, and 6th Floor, Suite 640 CA-M9C 5E9 finely chopped / 3 celery ribs, finely chopped / 3 carrots, finely chopped / Montreal, Quebec Tel: +1 877 637 2615 4 parsley roots, peeled and cut into sixths / 2.4dl dry white wine / CA-H3A 1E8 Fax: +1 905 641 1456 7.2dl chicken broth / 4 large egg yolks / 1.2dl heavy cream / 2 Tel: +1 877 637 2615 tablespoons finely chopped fresh parsley leaves / ½ lemon, juice of Fax: +1 905 641 1456 Oromocto Rub the chicken with salt and pepper. Butter the bottom of a casserole dish Oromocto Business Complex with 2 tablespoons of the butter. Layer it with the onions, shallots, leeks, 281, Restigouche Road celery, carrots, and parsley roots. Lay the chicken pieces on top. Pour the wine Oromocto, New Brunswick and chicken broth over everything. Season with salt and pepper, and bring to CA-E2V 2H2 just below a boil over a high heat. Reduce the heat to low, cover, and simmer Tel: +1 877 637 2615 gently, without letting the broth boil, until the meat on the chicken nearly Fax: +1 905 641 1456 falls off, for about 2½ hours. Remove the chicken and set aside. Continue to simmer the remaining ingredients until the parsley roots are soft. In a bowl, PeCAN Pie beat together the egg yolks, heavy cream, the remaining 2 tablespoons of 1 22cm pastry shell, unbaked / 2.4dl pecans, chopped / 2.4dl sugar / butter, and a few tablespoons of the broth from the casserole. Remove the ¼ teaspoon salt / 2.4dl light corn syrup / 1 teaspoon vanilla / 3 eggs / parsley roots and mash them. Stir them into the egg mixture. Slowly pour the 3 tablespoons butter egg mixture into the stew, whisking so the eggs don’t curdle. Add the parsley and lemon juice and stir. Ladle the broth over the chicken pieces and serve Line the pastry shell with pecans and set it aside. Blend the sugar, salt, corn immediately. syrup and vanilla. Beat in the eggs one at a time, mixing well. Pour the mixture over the pecans and dot with butter. Bake at 175ºC for one hour. Serve warm.

SPECIALS 73 HOW TO CONTACT uS

CHiLe DeNMARK Concepción Valdivia Albertslund Vordingborg Janequeo 2212, Barrio Norte Pedro de Valdivia 550 Herstedøstervej 27-29 Marienbergvej 132 CL-406-0109 Concepción CL-509-0000 Valdivia DK-2620 Albertslund DK-4760 Vordingborg Tel: +56 41 290 7950 Tel: +56 63 32 4000 / Tel: +45 77 30 14 00 Tel: +45 77 30 00 00 Fax: +56 41 290 6240 +34 93 600 4500 Fax: +45 77 30 14 25 Fax: +45 77 55 59 05 Fax: +56 63 33 3005 RØDgRØD MeD FLØDe PeBRe SALSA (ReD BeRRY PuDDiNg WiTH CReAM) 2 chilli peppers / 2 garlic cloves, peeled / 4.8dl fresh coriander, ﬁnely 9.6dl red berries / 7.2dl water / 2.4dl sugar / 1.8dl potato starch / 3.6dl cold chopped / 4 scallions, ﬁnely chopped / 1 teaspoon dry oregano / water / sugar / cream 2 tablespoons oil / 2 tablespoons red wine vinegar / salt / pepper Bring the berries to a boil with the water and cook until the seeds separate Puree the peppers and garlic in a blender. Add the scallions, oregano, oil, from the fruit. Strain. Pour the red berry juice back into the pot and bring to coriander, and vinegar. Salt and pepper to taste. Blend well and add water if a boil. Add sugar and stir until dissolved. In a small bowl, mix the potato starch the salsa is too thick. Serve with fresh bread. with cold water until it is syrupy, then add it to the berry juice, constantly stirring. As soon as it thickens, remove from the heat and pour into individual glass dishes. Sprinkle with sugar to prevent a skin from forming. Let it cool and top with cream.

CROATiA Osijek Vukovar Zupanijska 21 Olajnica 19 (FINA Building) HR-31000 Osijek HR-32000 Vukovar eSTONiA Tel: +385 31 226 904 Tel: +385 32 638 101 Tallinn Fax: +385 31 226 999 Fax: +385 32 638 177 Pärnu mnt 160 EE-11317 Tallinn OReHNJACA (WALNuT ROLL) Tel: +37 26 73 72 00 1 packet dried yeast / 120ml warm milk / 300g plain flour / Fax: +37 26 73 72 01 ½ teaspoon salt / 1 egg, separated / 50g sugar / 50g butter, melted / grated rind of ½ lemon / icing sugar / 200g ground walnuts/ 100g sugar / SHROVe TueSDAY BuNS 50g raisins / 100ml milk, boiling / 25g butter, melted / 2 tablespoons rum 250ml lukewarm milk / 25g compressed yeast / 2 eggs / ½ teaspoon salt / / 1 teaspoon cinnamon 100ml sugar / 1 teaspoon ground cardamom/ 700ml wheat flour / 100g soft margarine / 300ml double or whipping cream / 2 teaspoons Dissolve the yeast and 1 teaspoon of sugar in the warm milk. Allow the yeast vanilla sugar to rise for 10 minutes. Sift the flour and salt into a mixing bowl. Add the yeast mixture, egg yolk, sugar, butter and lemon rind, and mix to form a soft dough. Dissolve the compressed yeast in the milk. Add egg, sugar, salt and cardamom Turn out the dough onto a floured work surface and knead until smooth. Place to the milk, stirring constantly, then gradually add flour. Add the margarine it in a mixing bowl, cover and let it rise in a warm place until doubled in size. at the final phase of kneading. Leave the dough to rise in a warm place under Meanwhile, make the filling. Pour the boiling milk over the walnuts, sugar, a cloth, until it has doubled in size. Mould small buns from the dough, place raisins, butter, rum and cinnamon and mix well. Set aside to cool. Preheat the them on greaseproof paper on a baking sheet, and leave them to rise again oven to 170°C. On a floured work surface roll the dough out into a rectangle, under the cloth. Pre-heat the oven to 225°C, brush the buns with beaten egg about 5mm thick. Spread the filling evenly over the dough and roll up. Place, and bake for 10 minutes. Allow the buns to cool, then cut them in half and fill seam side down, on a greased baking sheet and allow to rise in a warm place with whipped cream mixed with vanilla sugar. for another 30 minutes. Brush the roll with beaten egg white and bake for about 40 minutes.

CZeCH RePuBLiC Prague Polygon House Doudlebaská 5/1699 CZ-140 00 Praha 4 Tel: +420 221 507 800 Fax: +420 221 516 708

SALAT SOPSKY 2 tomatoes / 1 english cucumber / 1 green pepper / 1 yellow pepper / 1 red pepper / ½ vidalia onion / 200-300g feta cheese

Cube all the vegetables. Crumble the feta cheese over the top. Serve with a goulash and potato pancakes.

SPECIALS 74 HOW TO CONTACT uS

FRANCe HuNgARY Montluçon Roanne Budapest Rue Louis Armand 15, bis Quai du Canal Obuda gate F-03100 Montluçon F-42300 Roanne Árpád fejedelem útja 26-28 Tel: +33 4 70 085 770 Tel: +33 4 77 59 57 60 H-1023 Budapest Fax: +33 4 70 085 778 Fax: +33 4 77 59 58 59 Tel: +36 1 336 5000 Fax: +36 1 336 5001 Paris Soissons 14, rue des Frères Caudron Parc Gouraud, F-78140 Vélizy/Villacoublay Allée des Internautes HORTOBÁgYi PALACSiNTA (HORTOBÁgYi PANCAKeS) Tel: +33 1 39 45 45 45 F-02200 Soissons 450g veal, ground / 1 tablespoon oil / 1 small onion, finely chopped / Fax: +33 1 39 45 46 20 Tel: +33 3 23 73 63 20 1 teaspoon paprika / salt / pepper / 2.4dl sour cream / 1 teaspoon flour / Fax: +33 3 23 73 62 83 2 eggs / salt / flour / 2 tablespoons oil / 9.6dl milk Raon Parc d’Activitiés Raonnais Tulle Fry the onion until transparent. Add the veal and fry for two to three minutes Z.I. du Hagis, Allée Jean Monnet Z.A. des Alleux over a high heat, stirring constantly. Remove from the heat, sprinkle with F-88110 Raon L’Etape F-19330 Favars paprika, and add salt and pepper. Remove the veal, leaving the juice in the Tel: +33 3 29 42 84 84 Tel: +33 5 55 29 75 25 pot. Combine 1 teaspoon of flour and 1-2 tablespoons of sour cream until Fax: +33 3 29 42 86 15 Fax: +33 5 55 29 75 55 smooth. Add this to the veal juices and bring to boil. Add the remaining sour cream and stir thoroughly. Add 1-2 tablespoons of the thickened stew to the CRÊPeS crushed meat, mixing well. Prepare the pancakes. Spread the meat stuffing on 4.8dl sifted flour / 2 eggs / 2.4dl milk / 2.4dl water / 1-1½ tablespoon(s) oil the pancakes, and fold to make envelopes. Place the pancakes in an ovenproof dish, pour the sour cream on top and warm in a preheated oven. Pour the flour into a bowl and make a well in the centre. Place the eggs in the well. Mix gently with a wooden spoon while slowly adding the milk and water, ensuring no lumps form. Add the oil. The batter should be very thin. Let it sit for several hours. Over a medium heat, use a frying pan that is lightly greased with butter. Pour a small ladleful into the pan while rolling the pan to coat the entire surface with the batter. Let it cook until the top of the batter starts to iTALY sweat, then flip it over. Repeat until the batter is used up. Bari Milano Strada Provinciale 1 Centro Direzionale Summit Bari Modugno 79 Via Brescia, 28 D3 I-70123 Bari I-20063 Cemusco s/N Milano Tel: +39 08 050 59501 Tel: +39 02 92 61 200 geRMANY Fax: +39 08 050 61364 Fax: +39 02 92 61 14 44 Dresden Rostock L’Aquila Roma Enderstrasse 59 Trelleborger Strasse 5 Complesso lo Smeraldo Via Antolisei 6 D-01277 Dresden D-18107 Rostock Via Antica Arischia 18G I-00173 Roma Tel: +49 351 4387 8400 Tel: +49 381 123 13 00 I-67100 Pettino L’Alquila Tel: +39 06 72 31 777 Fax: +49 351 4387 8410 Fax: +49 381 123 13 01 Tel: +39 0862 34 78 100 Fax: +39 06 72 99 4431 Fax: +39 0862 31 96 49 Halle Tönisvorst Leipziger Chaussee 191B Tackweg 33 Lecce D-06112 Halle D-47918 Tönisvorst Viale Francia 17 Tel: +49 345 688 70 00 Tel: +49 21 51 99 530 Zona industriale Fax: +49 345 688 70 02 Fax: +49 21 51 99 53560 I-73100 Lecce Tel: +39 0832 36 05 00 MiMOSeNeieR (MiMOSA eggS) Fax: +39 0832 36 05 39 10 hardboiled eggs / 2.5cl mayonnaise / 1 tin pâté de foie gras / 1 bunch parsley / 1.75cl sour cream TiRAMiSÙ 6 egg yolks / 1.8dl sugar / 450g mascarpone cheese, softened / 4.8dl heavy Slice the hardboiled eggs in half lengthwise and remove the yolks. Fill the cream, chilled / 2 tablespoons Marsala wine / 1 teaspoon vanilla extract / centres of the egg whites with pâté and arrange them on a round serving 7.2dl coffee / 5 egg whites / pan di spagna / cocoa powder platter. Mix the mayonnaise with the sour cream and pour over the filled egg whites. Press the egg yolks through a sieve and sprinkle over the mayonnaise In a mixing bowl set over a pan of simmering water, beat the egg yolks and mixture. Decorate with parsley. sugar until the mixture is pale yellow. Remove from the heat and beat in the mascarpone cheese until smooth and creamy. In a large, chilled mixing bowl, beat the cream to stiff peaks. Add the Marsala wine, vanilla, and 2 tablespoons of coffee. Beat until smooth. In a clean mixing bowl, beat the egg whites to stiff peaks. Gently fold the egg-sugar-cheese mixture into the cream until blended and smooth. Add about 2.4 decilitres of the beaten egg whites and fold gently until blended. Add the remaining egg whites and fold gently until the mixture is smooth and blended. Cut the pan di spagna in half horizontally, then into rectangles. One at a time, submerge each rectangle into the remaining coffee. Lay the rectangles on the bottom of a 6-quart glass or ceramic baking or serving dish. Spread half of the mascarpone mixture over the coffee-soaked cake until evenly covered. Repeat with another layer of soaked cake over the mascarpone cream. Spread the remaining mascarpone cream evenly over the top. Dust the Tiramisù with cocoa powder to create a creamy, rich topping. Refrigerate for 24 hours prior to serving.

SPECIALS 75 HOW TO CONTACT uS

LATViA THe NeTHeRLANDS Riga emmen groningen Bauskas Street 58a Waanderweg 174 Kadijk 5 LV-1004 Riga NL-7812 HZ Emmen NL-9747 AT Groningen Tel: +37 1706 0590 Tel: +31 50 368 90 70 Tel: +31 50 368 90 00 Fax: +37 1706 0555 Fax: +31 59 163 44 22 Fax: +31 50 368 90 52

PīRāgi SPeCuLAAS COOKieS 1 glass milk / 75g butter / salt / fresh yeast / 500g wheat flour, sifted / 7.2dl flour / 1 teaspoon ground nutmeg / 250g butter / 3.6dl brown sugar / 100g potatoes, boiled and diced / 1 egg, half beaten / 250g smoked 1 pinch salt / 4 teaspoons baking powder / 1 teaspoon ground cloves / bacon / 50g onions, diced / pepper / ½ teaspoon caraway / sugar ½ teaspoon ground aniseed / ½ teaspoon ground ginger / 1 tablespoon cinnamon / 125g slivered almonds / egg whites Heat the milk, butter, and salt to 30ºC. Blend the yeast and wheat flour into the mix, forming a dough. During kneading, add the potatoes. Take the well- Cream the butter and sugar together. Gradually add sifted dry ingredients to the kneaded dough and let it rise in a warm place. Press it back into the bowl, let creamed mixture, mixing well, until the dough forms a ball. Place on a floured it rise again, then separate into about 20 equal pieces. For the filling, cut the surface and roll out very thinly until it is about 0.3cm thick. Use cookie cutters bacon into small cubes, then add onion, pepper, sugar, and caraway to taste. to shape, and then brush the tops with lightly beaten egg white. Decorate the Flatten each piece of dough, put about 1 tablespoon of filling into the middle, tops with slivered almonds and bake at 200ºC until light golden brown. press the edges together and place on a greased pan with the seam on the bottom. Let them rise again on the pan, coat with egg, and cook in a hot oven for about 10 minutes.

NORWAY Halden Rolvsöy Isebakkveien 75 Sivlökka 6 LiTHuANiA N-1751 Berg i Østfold/Halden N-1660 Rolvsöy Kaunas Vilnius Tel: +47 69 50 00 00 Tel: +47 69 50 00 00 Partizanu 63M 139 Zirmunu Fax: +47 69 50 00 01 Fax: +47 69 30 20 30 LT-49377 Kaunas LT-09120 Vilnius Mailing address: Tel: +3705 211 1931 Tel: +3705 236 3377 PB 107 Fax: +3705 236 3388 Fax: +3705 236 3388 1751 Halden

TROðKiNTA KiAuLieNA Su KRieNAiS Oslo (BRAiSeD PORK WiTH HORSeRADiSH) Østensjøveien 14 450g pork, cut into small rectangles / 2 onions, finely cut / 8 potatoes, N-0661 Oslo peeled and cubed / 1.2dl freshly grated horseradish root / 1.2dl sour cream/ Tel: +47 69 50 00 00 salt / pepper / 3 bay leaves / fresh dill, parsley, onion greens, finely Fax: +47 69 50 00 01 chopped / 1 teaspoon sugar / juice of a lemon Mailing address: P.O. Box 6049 Etterstad Rub the meat with salt and pepper, sprinkle with lemon juice and marinate for N-0601 Oslo 1 hour. Bring 4.8 decilitres of water to a boil and cook the marinated meat until it is soft. Add the potatoes, onions and bay leaves. Cook for 20 more SuPPe På TORSKeTuNgeR minutes. Place the meat onto a serving platter and cover with sour cream (COD TONgue AND BARLeY SOuP) mixed with horseradish, sugar and salt. Sprinkle with dill, parsley and onion greens. Serve hot with potatoes. 80ml pearl barley / 1½l fish stock / ¼ small rutabaga, cubed / 1 large carrot, cubed / 1 medium parsley root, cubed / 5 almond potatoes / 20 cod tongues/ salt / freshly ground black pepper / chopped parsley

Soak the barley in water overnight. Bring the stock to a boil, skim, then add barley. Simmer for 30 minutes. Add the vegetables and simmer for 5 minutes. Add the cod tongues and simmer for about six minutes. Season with salt and LuXeMBOuRg pepper. Sprinkle with parsley and serve with whole-grain rolls and butter. Luxembourg 45, Rue des Scillas L-2529 Howald Tel: +35 2 27 755 000 Fax: +35 2 27 755 900 THe PHiLiPPiNeS BReNNeSSeLSZOPP (NeTTLe SOuP) Manila Nettle shoots, very fresh / 1 onion, chopped / butter / 3 quartered potatoes/ Transcom Center Building 1l meat stock / cream / croutons Las Fiestas Road Frontera Verde Compound Fry a ﬁnely chopped onion in a little butter, then add the nettle shoots and 1600 Pasig City, Metro Manila continue on a medium heat. After a couple of minutes add the potatoes and Tel: +1 877 637 2615 meat stock. Cook for half an hour, and then mix well in a blender. Season to Fax: +1 905 641 1456 taste, and add some cream. Serve with croutons. TiNOLANg MANOK (giNgeR CHiCKeN SOuP WiTH PAPAYA) 2-3 tablespoons oil / 1 onion, thinly sliced / 1 tablespoon garlic, minced / 2 tablespoons ginger, minced / 0.9-1.35kg chicken, bone in, cut into small pieces / 2 tablespoons patis / 7.2-9.6dl water / salt / pepper / 4.8dl green papaya, peeled and cubed / 4.8dl chilli leaves

Heat the oil over a medium heat in a large pot. Add the onions and sauté until translucent. Add the garlic and ginger and sauté for another 3 minutes. Add the chicken pieces and sauté for 5 minutes. Add the patis and stir well. Add the water, salt and pepper and bring to a boil. Reduce the heat and simmer for half an hour, stirring occasionally. Add cubed papaya and simmer until cooked SPECIALS through. Remove from the heat, adjust seasoning and stir in the chilli leaves. 76 HOW TO CONTACT uS

POLAND ROMANiA gdansk Wroclaw Bucharest Grunwalska 413 uL. Grabiszyńska 251D Bld. Constructorilor PL-80-309 Gdansk PL-53-234 Wroclaw Br. 20A, Cladirea Tel: +48 58 732 4400 Tel: +48 71 784 52 01 IPROMET/Corp A, et. 2 Fax: +48 58 732 4407 Fax: +48 71 784 52 05 RO-Bucuresti Tel: +34 93 600 4190 Olsztyn Fax: +34 93 508 1997 uL. Kard. St. Wyszynskiego 1 PL-10-457 Olsztyn TORT De CAiSe (APRiCOT CAKe) Tel: +48 89 53 72 300 Fax: +48 89 53 72 307 350g flour / 100g butter / 100g sour cream / 1 egg / 5 tablespoons sugar / 1 teaspoon vinegar / vanilla / grated lemon peel / confectioner’s sugar / WiLD MuSHROOM SOuP 1kg apricots, pitted and halved 115g dried wild mushrooms, soaked overnight / 2.16l beef stock / 2.4dl Beat the butter with 2 tablespoons of sugar, then with the egg. Add the sour butter / 2.4dl finely chopped onion / 1 tablespoon cornstarch / salt / white cream, vinegar, vanilla, lemon peel and mix well. Add the flour and knead into pepper / sour cream / fresh parsley, chopped a dough. Refrigerate for 1 hour. Divide the dough in 2 and roll each part into a round sheet. Grease the cake pan, lay the first sheet in and bake. When the Drain the mushrooms, reserving the soaking liquid. Strain the liquid. Rinse dough has risen and has started to become a little crusty, lay down the apricot the mushrooms and then slice into strips. Add the mushrooms, 19.2 decilitres halves, sprinkle with the 3 tablespoons of sugar and cover with the second of the beef stock, and the soaking liquid to a saucepan. Bring to a boil, reduce sheet. Place in the oven again, at a medium heat and bake until golden brown. the heat, and simmer for 4 hours. Melt the butter in a frying pan, add the Turn onto a plate and sprinkle with confectioner's sugar. onion, sauté until golden brown, then add to the soup. Whisk the cornstarch with the remaining beef stock, and add to the soup. Stir and simmer until slightly thickened. Season with salt and pepper. Ladle into bowls, giving each a dollop of sour cream, and sprinkle with parsley. Serve with bread. SeRBiA Belgrade Scerbinova 6 RS-11030 Belgrade PORTugAL Tel: +34 93 600 4190 Lisboa Ribeirão Fax: +34 93 508 1997 Av. D. João II Edif. Central Office Lago Discount Lote 1.17.03-7˚B/C/D Edificio A3 1˚ e 2˚ Andar SARMA (STuFFeD SAueRKRAuT LeAVeS) Parc das Nações Sr˚ dos Perdões PT-1998-026 Lisboa PT-4760-727 Ribeirão Sauerkraut leaves of 3 to 4 cabbages / ½kg fresh veal, chopped / Tel: +35 1 210 10 26 00 Tel: +35 1 252 401 400 ¼kg dry boiled ham, chopped / ¼kg cold roasted turkey, chopped / Fax: +35 1 210 10 26 50 Fax: +35 1 252 401 450 50g dried bacon / pepper / salt / parsley / celery / 1.2dl rice / olive oil / onion, sliced / dried pork sausage / dried pork ribs / water

KALe SOuP To make the filling, mix the veal, ham, turkey and bacon well. Add pepper, 1 large yellow onion, peeled and minced / 1 large garlic clove, peeled and salt, celery, a bit of parsley and rice. Take a pinch of filling and place it on a minced / 4 tablespoons olive oil / 6 large potatoes, peeled and sliced / sauerkraut leaf. Roll into a cylinder, ensuring the leaf is closed and no filling 2 quarts cold water / 185g chouriço / 2½ teaspoons salt / ¼ teaspoon is leaking out. This sarma roll should be 4cm long and 2cm wide. Repeat until freshly ground black pepper / 450g kale washed, trimmed, and sliced into all the filling is used up. Cover the bottom of a large medium-depth thin ribbons earthenware pot with olive oil. Lay down a layer of sauerkraut leaves, followed by a layer of sarma rolls. Next lay down a layer of pork sausages and ribs. Sauté the onion and garlic in 3 tablespoons of oil in a large, heavy saucepan Sprinkle with onion and parsley. Cover with another layer of sauerkraut leaves, over a moderate heat until they begin to colour and turn glassy. Add the then with a new layer of sarma rolls. Repeat until the pot is full and cover with potatoes and sauté, stirring constantly until they begin to colour. Add the sauerkraut leaves. Fill the pot with water and put it on a log fire to cook for water, cover, and boil gently over a moderate heat until the potatoes are about 5 hours. mushy. Meanwhile, fry the sausage in a frying pan over a low heat until most of the fat has cooked out. Drain well and reserve. When the potatoes are soft, remove the pan from the stove and mash the potatoes into the soup mixture. Add the sausage, salt, pepper, return to moderate heat, cover and simmer for 5 minutes. Add the kale and simmer uncovered until tender. Mix in the final tablespoon of oil.

SPECIALS 77 HOW TO CONTACT uS

SLOVAKiA SWeDeN Bratislava Borås Stockholm Gorkého 3 Armbågavägen 10 Skeppsbron 18 SK-81101 Bratislava S-506 30 Borås S-103 13 Stockholm Tel: +421 2 592 411 70 Tel: +46 33 72 41 100 Tel: +46 08 562 000 30 Fax: +421 2 547 778 00 Fax: +46 33 72 41 101 Fax: +46 08 562 000 03

BRYNDZOVe HALuSKY Karlskoga Strömsnäsbruk Skrantahöjdsvägen 42 Skomakaregatan 1 2-3 potatoes, peeled and ﬁnely shredded / 4-5 tablespoons ﬂour / salt / S-691 78 Karlskoga S-287 32 Strömsnäsbruk 1 egg / bryndza cheese / 3 tablespoons milk / bacon, cut into small pieces Tel: +46 586 79 50 00 Tel: +46 433 74 706 and fried Fax: +46 586 79 50 01 Fax: +46 433 74 701

Combine the egg, flour and potatoes into a dough. Add 1 teaspoon of salt. Kungsör TransVoice Boil some water with 2 tablespoons of salt and drop little chunks of the dough Kungsgatan 61 Rålambsvägen 17, 10th floor into the boiling water. When the halusky are done they will float. Pick them S-736 23 Kungsör S-112 59 Stockholm out with a strainer and set aside. To make the cheese sauce, mix the bryndza Tel: +46 227 61 60 00 Tel: +46 8 562 000 30 with 3 tablespoons of milk, and heat, stirring constantly. Remove from the Fax: +46 227 61 60 01 Fax: +46 8 562 000 03 heat when it starts to boil. Add the cheese sauce to the halusky and sprinkle Mailing address: with bacon. Norrköping Box 34006 Malmgatan 5 S-100 26 Stockholm S-601 02 Norrköping Tel: +46 11 47 30 000 Fax: +46 11 47 30 001 SPAiN KORV STROgANOFF (SAuSAge STROgANOFF) Barcelona (Corporate Office) Madrid 450g “falukorv” sausage / 2 yellow onions, chopped / 1 teaspoon paprika / C/Berlin 38-48, 5th Floor Avenida de Europa, 26 butter or margarine / 6cl tomato puree or ketchup / 1 tablespoon mustard/ E-08029 Barcelona Edificio Atica 5 1 bouillon cube / 2.5dl water / pepper and salt to taste / 1-1.5dl sour cream Tel: +34 93 508 27 99 E-28224 Pozuelo de Alarcón Fax: +34 93 600 4150 Tel: +34 91 342 3809 Slice the sausage into strips. In a frying pan, brown over a high heat. Add Sales and marketing: Fax: +34 91 211 0570 chopped onion and paprika to the pan. Add the tomato puree, mustard, Tel: +34 93 600 4190 bouillon cube and water. Bring to a boil, then reduce the heat. Let it simmer Fax: +34 93 508 1997 Madrid briefly over a low heat. Season with pepper and salt to taste. Garnish with sour Avenida de Castilla, 2 cream and serve with rice. Barcelona Edificio Hungria, 1a planta Moll de Barcelona Parque Empresarial San Fernando East Tower S/N E-28830 San Fernando de Henares World Trade Center, 5th Floor Tel: +34 91 205 91 00 E-08039 Barcelona Fax: +34 91 205 91 44 Tel: +34 93 600 4112 SWiTZeRLAND Fax: +34 93 508 1997 Sevilla Rheineck Zürich Edificio Invarsa Bahnhofstrasse 14 Hardturmstrasse 161 León Camino de las Erillas s/n Postfach CH-8005 Zürich Avda Reyes Leoneses, 14 E-41920 San Juan de Aznalfarache CH-9424 Rheineck Tel: +41 44 524 47 77 Edificio Europa Tel: +34 955 03 81 00 Tel: +41 44 524 47 77 Fax: +41 44 524 47 78 E-24008 León Fax: +34 955 03 81 50 Fax: +41 44 524 47 78 Tel: +34 987 08 12 00 Fax: +34 987 08 12 14 FONDue COCiDO MADRiLeÑO 3.5dl shredded gruyere cheese / 3.5dl shredded emmental cheese / 500g dried chickpeas, soaked overnight / 450g cured brisket of beef or 1dl shredded Appenzeller cheese / 2-3 tablespoons flour / 1 garlic clove, silverside / 250g salt pork belly or streaky bacon / 560g knuckle gammon halved / 2.5dl dry white wine / 1 teaspoon fresh lemon juice / 1 dash kirsch/ bone, with some meat on / 675g beef marrow bone, cut horizontally / fresh ground pepper, to taste / 1 pinch nutmeg / crusty bread, cut into large ½ boiled chicken / 1 pig’s trotter, split / 1 whole garlic bulb / 2 bay leaves / cubes 8 black peppercorns, crushed / 1 small onion, studded with 2 cloves / 675g cabbage, quartered / 2 carrots, in thick slices / 2 leeks, short lengths/ For the fondue pot, use a steel or cast iron pot with an enamelled interior. In 450g potatoes / 2 chorizos / 1 morcilla a bowl, mix the 3 cheeses and toss with the flour. Rub the inside of the fondue pot with the garlic halves. Add the wine and heat over a medium heat until Before starting, soak the chickpeas overnight and soak the brisket/silverside, hot, but not boiling. Stir in the lemon juice and kirsch. Add a handful of cheese salt pork belly/bacon and gammon knuckle for several hours. In a large at a time to the wine mixture, stirring constantly and not adding more cheese stockpot, pack in all the meat with the beef bone. Put the chicken and trotter until the previous handful has melted, bubbling gently. Season with pepper on top. Add the garlic bulb, bay leaves and peppercorns and cover with water. and nutmeg. Remove the pot from the heat and place over an alcohol safety Bring to a simmer, skimming off any residue. Drain the chickpeas and add to burner on the table. Adjust so the fondue continues to bubble gently. Serve the pot. Cover the pot and simmer for 1½ hours, adding the onion halfway with crusty bread cubes. through. In a second casserole dish, place the cabbage, all the vegetables and all the sausages. Add water to cover the ingredients, along with a little salt. Bring to a simmer. Cover and cook until the potatoes are ready. Drain the vegetables and sausages and slice the sausages. Arrange the vegetables on a platter and lay the sausages on top. Take the meats out from the main pot, gathering the chickpeas together, and slice all the meats. Arrange the meats and chickpeas on a platter, moistening them with broth.

SPECIALS 78 HOW TO CONTACT uS

TuNiSiA uSA Tunis Denver Lafayette 49, angle des rues, 8600/8612 6786 South Revere Parkway 1819 Moss Street Charguia I 2035 Tunis Carthage Suite D-100 Northgate Mall Tel: +216 71 808 294 Centennial, CO 80112 Lafayette, LA 70501 Fax: +216 71 809 268 Tel: +1 888 425 6831 Tel: +1 877 637 2615 Fax: +1 303 952 3235 Fax: +1 905 641 1456 MeCHOuiA (eMBeR-COOKeD VegeTABLe SALAD) 6 small onions, unpeeled / 1 whole garlic head, broken into 4 or 5 parts, STuFFeD TuRKeY unpeeled / 4 fresh chillies / 8 small tomatoes / 1 teaspoon Tunisian tabil Stuffing / 1 (8.5kg) frozen ready-to-stuff turkey, thawed / 1.2dl butter / (ground coriander mixed with ground caraway seed) / 1 teaspoon ground salt / pepper / gravy caraway / 3 tablespoons extra virgin olive oil / 1 teaspoon salt / freshly ground black pepper Remove the giblets and neck from inside the turkey. Rinse the turkey with cold running water and drain well. Spoon some stuffing into the neck cavity. Allow the coals of a wood and charcoal fire to turn white. Ensure there are Fold the neck skin over the stuffing and skewer closed. With the turkey breast- enough coals to keep a steady heat for 30 minutes. Do not stem the peppers side up, lift the wings up towards the neck, then fold under the back. Spoon or tomatoes. Bury all the vegetables in the coals. Remove the vegetables as the remaining stuffing into the body cavity. Fold the skin over the opening and they become soft. Cool and peel the garlic, onion, pepper and tomato. Discard skewer closed and tie the legs. On a rack in a roasting pan, place the turkey all seeds. Starting with the onions and garlic, crush the vegetables in a wide breast-side up. Brush the skin with melted butter, sprinkling with salt and mortar to achieve a chunky texture, then add the peppers and tomatoes. pepper. Roast uncovered, at 150°C for 4½ hours, Basting occasionally with Scrape the mixture into a bowl. Stir in the olive oil and season with spices, salt the pan drippings. When the skin turns golden, cover loosely with foil. Towards and pepper. Serve warm with a Tunisian tagine. the end of roasting, remove the foil. Brush the turkey with drippings and remove from the oven. Let it stand for 20 minutes and then carve and serve with gravy.

uNiTeD KiNgDOM London Alban Park Hatﬁeld Road St. Albans Hertfordshire uK-AL4 0LA Tel: +44 1727 812 233 Fax: +44 1727 840 234

LANCASHiRe HOTPOT 900g lamb, chopped into small cubes / 4 lamb kidneys, skinned, cored and chopped / 6dl hot water / 1 teaspoon Worcestershire sauce / 900g potatoes, peeled and sliced / 340g onions, chopped / 1 bay leaf / 1 sprig of thyme / 1 tablespoon ﬂour / butter / oil / salt / pepper

Brown several cubes of lamb at a time in a hot frying pan with a little oil. Once all pieces have been browned, place in an ovenproof pot. Brown the kidneys and scatter over the cubes of lamb in the pot. Brown the onions. Stir in ﬂour to soak up the oil and juices in the frying pan. In a measuring jug, add the Worcestershire sauce to the hot water and then pour and stir into the frying pan. Add salt and pepper to taste. Bring the contents of the pan to a simmer. Remove from heat, then pour over the meat and kidneys in the pot. Add the thyme and bay leaf. Lay the potato slices on top of the meat. Add a few small knobs of butter over potatoes and cover with a lid. Place in a preheated oven at 160ºC for 90 minutes. Remove the lid and return to the oven for another 45 minutes.

SPECIALS 79 INFORMATION FOR OuR SHAREHOLDERS

FiNANCiAL CALeNDAR

April 21, 2008 First quarter earnings announcement

May 27, 2008 The Annual General Meeting of shareholders Luxembourg

July 21, 2008 Second quarter earnings announcement

October 20, 2008 Third quarter earnings announcement

February 2009 Fourth quarter earnings announcement

CORPORATe AND RegiSTeReD OFFiCe Transcom WorldWide S.A. 177 rue de Luxembourg L-8077 Bertrange Luxembourg Number: RC B59528 www.transcom.com

iNVeSTOR ReLATiONS Shared Value Limited 30 St James’s Square London SW1Y 4JH United Kingdom Tel: +44 (0) 20 7321 5010 Fax: +44 (0) 20 7321 5020 e-mail: [email protected]

SALeS AND MARKeTiNg [email protected] Tel: +34 93 600 4190

SPECIALS 80 Thank you to all the Transcom employees who have contributed recipes and made this annual report possible.

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