2018 First-Half Results (January 1, 2018 – June 30, 2018) Video Webcast July 26, 2018
DISCLAIMER ▪ The financial statements for the six months ended June 30, 2017 and June 30, 2018 have been subject to a review by the auditors. ▪ All forward-looking statements reflect Teleperformance management’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For a detailed description of these factors and uncertainties, please refer to the “Risk Factors” section of our Registration Document, available at www.teleperformance.com. Teleperformance undertakes no obligation to publicly update or revise any of these forward-looking statements. 2
AGENDA 2018 FIRST-HALF KEY FACTS AND FIGURES 1 2018 FIRST-HALF RESULTS 2 2018 OUTLOOK 3 4 APPENDIX: ALTERNATIVE PERFORMANCE MEASURES
1 2018 FIRST-HALF KEY FACTS AND FIGURES 4
2018 FIRST-HALF KEY FACTS AND FIGURES KEY FIGURES: SOLID REVENUE AND EARNINGS PERFORMANCE Recurring EBITA Revenue ▪ Strong like-for-like growth in revenue: + 8.3% (€ M) (€ M) % revenue ▪ Impact of the unfavorable foreign exchange environment on 2,070 2,081 246 245 the performance on a reported basis ▪ Increase in recurring EBITA margin: + 8.3% • 11.9% vs 11.8% in H1 2017 as reported lfl 11.9% 11.8% • Higher increase at constant exchange rate H1 2017 H1 2018 H1 2017 H1 2018 ▪ Diluted EPS: € 2.10 Net Free Cash Flow Diluted Earnings per share (EPS) ▪ Net Free Cash Flow: € 156M (€) (€ M) ▪ Enhancing the worldwide market leadership: more than 2.10 1.98 178 6,300 workstations opened in H1 2018 156 H1 2017 H1 2018 H1 2017 H1 2018 5 For the definition of the financial indicators mentioned in the charts and tables, please refer to the Alternative Performance Measures in the appendix
2018 FIRST-HALF KEY FACTS AND FIGURES TELEPERFORMANCE STRENGTHENS ITS BUSINESS AND FINANCIAL PROFILE BY ACQUIRING INTELENET (1) By acquiring Intelenet, a high-end business services and digital transformation solution provider: • Significantly strengthening the Group’s offering and capabilities with Intelenet’s integrated solutions: Teleperformance is significantly - Solution design with a large consulting force covering a wide range of expertise strengthening its added-value - Digital integration based on robot process automation (RPA) technology - Operational excellence , with 55,000 employees across India, the Philippines, the UAE, Specialized Services business Poland and Guatemala • Integrating experienced and successful Intelenet top management Teleperformance is reinforcing • In Asia, notably in India its presence in high potential • markets and verticals Continuing to diversify its client vertical portfolio vertical portfolio 6
2018 FIRST-HALF KEY FACTS AND FIGURES TELEPERFORMANCE STRENGTHENS ITS BUSINESS AND FINANCIAL PROFILE BY ACQUIRING INTELENET (2) ▪ Strengthening top line growth ▪ Enhancing Group EBITA margin Accretive operation ▪ Forecasting an accretive impact of around 10% on earnings per share excluding goodwill in 2018* Teleperformance is enhancing value creation for its shareholders and is well on the path to achieve its 2022 objectives ▪ On track with the Group’s strategic plan, with an increased contribution from the Specialized Services Teleperformance business, already estimated at around 20% of the well on path to Group’s revenue in 2018* achieve 2022 objectives ▪ Well on the path to achieve revenue of €6 billion+ and EBITA of €850+ million by 2022 7 * With Intelenet consolidated on a 12 month proforma basis
2018 FIRST-HALF KEY FACTS AND FIGURES INTELENET ACQUISITION IS TICKING THE FIVE MAIN STRATEGIES BOXES OF THE TELEPERFORMANCE STRATEGIC PLAN Intelenet acquisition ▪ Geography Continued expansion into BRICS and MIST countries Organic growth ▪ Vertical Strengthen sector expertise in high potential verticals ▪ Innovation Digital and omnichannel integration High-value ▪ Development of a new high value-added consulting offering Consulting & in the area of customer experience (Praxidia, beginning of 2018) Analytics solution External growth Strategic ▪ Targeted acquisitions in high-value specialized services acquisitions 8
2 2018 FIRST-HALF RESULTS 9
2018 FIRST-HALF RESULTS P&L SUMMARY ▪ Like-for-like growth and operating margin, in line with annual targets H1 2018 H1 2017 Change € millions €1 = US$1.22 €1 = US$1.08 Revenue 2,070 2,081 (0.6)% Like-for-like growth* + 8.3% + 9.9% EBITDA before non-recurring items* 323 328 (1.5)% EBITA before non-recurring items* 246 245 + 0.4% % of revenue 11.9% 11.8% Operating profit 190 191 (0.5)% Net profit - Group share 123 116 + 6.0% Diluted earnings per share (€)* 2.10 1.98 + 6.1% 10 * For the definition of the financial indicators mentioned in the charts and tables, please refer to the Alternative Performance Measures in the appendix
2018 FIRST-HALF RESULTS REVENUE GROWTH ANALYSIS ▪ The sharply negative currency effect (translation) mainly linked to the US dollar’s decline against the euro and, to a lesser extent, the decrease in the Brazilian real and the Colombian and Argentine pesos € M + 1 2,081 2,070 + 158 1,911 (170) + 8.3 % like-for-like H1 2017 Currency effect H1 2017 at constant Like-for-like growth Change in scope H1 2018 exchange rates 11
2018 FIRST-HALF RESULTS SUSTAINED LIKE-FOR- LIKE GROWTH IN REVENUE, CONFIRMING TELEPERFORMANCE’S STATUS AS A GROWTH COMPANY 12 th straight half-year of like-for-like revenue growth above market growth ▪ Half-yearly like-for-like growth (vs prior-year period ) since June 30, 2012 12% 10% 10% 10% 10% 8% 8% Average quarterly 8% 8% 8% like-for-like growth: 8% + 8% 8% 7% 7% 7% 6% + 5% 4% 2% 0% H2 12 H1 13 H2 13 H1 14 H2 14 H1 15 H2 15 H1 16 H2 16 H1 17 H2 17 H1 18 12
2018 FIRST-HALF RESULTS REVENUE ANALYSIS BY VERTICAL ▪ Ongoing diversification trend by vertical in H1 2018 ▪ Strong momentum in financial services, retail, tourism and travel agencies, and consumer electronics ▪ Growing contribution of the New Economy ▪ Global accounts represent around 40% of total Group revenue Revenue by vertical* New Economy contribution* to total revenue (H1 2018 vs 2013) (2017 vs 2013) New Economy* 21% 23% 28% 33% 25% 40% 47% 77% 75% 10% / 90% 79% 72% 3%/97% 67% 60% 53% 2017 2013 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 H1 2017 H1 2018 Others Telecom-Internet-Pay TV * Revenue generated by pure e- players among Teleperformance’s top 50 clients * Excluding LanguageLine Solutions revenues in 2017, company acquired on September 19, 2016 13
2018 FIRST-HALF RESULTS REVENUE AND EBITA MARGIN BY ACTIVITY 2018 2017 Change As reported Like-for-like Revenue (€ M) H1 Q2 H1 Q2 H1 Q2 H1 Q2 Core Services 1,754 881 1,752 851 + 0.1% + 3.5% + 8.7% + 10.6% 740 369 812 387 (8.8)% (4.6)% + 0.3% + 1.5% - English-speaking market & Asia-Pacific 560 286 534 264 + 4.7% + 8.6% + 17.1% + 20.4% - Ibero-LATAM 454 225 406 200 + 12.0% + 12.6% + 14.5% + 15.4% - Continental Europe & MEA Specialized Services 316 163 329 164 (4.1)% (0.6)% + 5.7% + 6.3% Total 2,070 1,044 2,081 1,015 (0.6)% + 2.8% + 8.3% + 9.9% H1 2018 H1 2017 Recurring EBITA ▪ Core Services € M Margin € M Margin • Like-for-like growth in H1: Core Services 152 8.7% 147 8.4% + 8.3% - English-speaking market & Asia-Pacific 51 6.8% 60 7.4% • Increase in margin - Ibero-LATAM 60 10.8% 55 10.3% ▪ Specialized Services - Continental Europe & MEA 19 4.2% 11 2.7% • Like-for-like growth in H1: + 5.7% - Holdings* 22 - 21 - • Maintaining high margin Specialized Services 94 29.6% 98 29.7% Total 246 11.9% 245 11.8% 14 * Group holdings relating primarily to Core Services businesses
2018 FIRST-HALF RESULTS CORE SERVICES – ENGLISH-SPEAKING MARKET & ASIA-PACIFIC (EWAP) ▪ Revenue Good performance in e-retail, fast-moving consumer goods, (€ M) the energy industry and utilities, consumer electronics, as + 0.3% well as in the automotive industry and food services 812 lfl 740 ▪ Offshore activities in the Philippines remained lackluster in favor of nearshore business in Mexico (Ibero-LATAM region) + 1.5% with an impact on the margin 387 lfl 369 ▪ Improvement in revenue growth in the United Kingdom but the uncertain economic (Brexit) and competitive Q2 2017 Q2 2018 H1 2017 H1 2018 environment weighs on profitability in the industry ▪ Solid and profitable growth in Asia, driven by China and Recurring EBITA* % revenue India (€ M) 60 51 7.4% 6.8% H1 2017 H1 2018 15 * Excluding holdings
2018 FIRST-HALF RESULTS CORE SERVICES - IBERO-LATAM ▪ Revenue Strong growth, exceeding budget forecasts, driven by very (€ M) good performances in Portugal, Spain, Mexico, Brazil and + 17.1% Argentina 560 lfl 534 ▪ Satisfactory performances in Colombia + 20.4% 286 lfl 264 ▪ Rapid ramp-up of operations in Peru Q2 2017 Q2 2018 H1 2017 H1 2018 ▪ Recurring EBITA* High margin driven by profitable growth from operations in % revenue (€ M) Portugal and Mexico (offshore) 60 ▪ 55 Operating efficiency continued to improve steadily in Brazil, Argentina and Spain 10.8% 10.3% H1 2017 H1 2018 16 * Excluding holdings
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