Transcom reaches settlement agreement resolving tax dispute in Italy. Positive net income effect in Q3 2013: €2.1m.

Luxembourg, 10 October 2013 – Transcom announced today that the company has reached an agreement with the Italian tax authorities, resolving a tax dispute concerning the fiscal years 2003-2005 and 2007-2009. As a result of the agreement, the existing tax provision will be decreased by €2.1 million with a corresponding positive effect on net income in Q3 2013.

Transcom has agreed to pay €11.5 million in relation to the fiscal years mentioned above, whereof Transcom has already paid €5.4 million. The agreed-upon amount is €2.1 million lower than the gross provision booked against the initial tax claims for these years, amounting to €13.6 million. As a consequence of this agreement, the net tax provision currently on the books concerning these fiscal years will be lowered from €8.2 million to €6.1 million. This remaining amount will be paid in monthly installments over approximately three years.

The outstanding tax claim regarding the 2006 fiscal year, amounting to €3.7 million – out of which €1.4 million has already been paid – is still under discussion. The reason for this is that the responsibility for this tax claim resides with another tax department. Transom expects to be able to announce the final outcome in the near future.

“Achieving clarity regarding Transcom’s financial exposure by reaching a satisfactory settlement agreement concerning these tax claims has been an important priority. I am very pleased about the final outcome regarding the fiscal years 2003-2005 and 2007-2009”, commented Johan Eriksson, President and CEO of Transcom.

For further information, please contact:

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

Pär Christiansen, CFO
Telephone +46 70 776 80 16

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