2019 FIRST-HALF RESULTS (January 1, 2019 – June 30, 2019 ) July 25, 2019
DISCLAIMER The financial statements for the six months ended June 30, 2018 and June 30, 2019 have been subject to a review by the auditors. The accounting policies applied in the condensed consolidated interim financial statements as of June 30, 2019 are the same as those at June 30, 2018, with the exception of IFRS 16 concerning lease accounting which has been applied from January 1, 2019. As the group has elected to apply IFRS 16 using the modified retrospective approach, the 2018 comparative amounts have not been restated. Under IFRS 16, all lease contracts are now recognized on the statement of financial position, measured by discounting the future contractual lease payments to present value. This results in the recognition of a new specific non-current asset and financial liabilities. The “right -of- use” asset is depreciated on a straight-line basis over the expected lease term; the lease liability is increased by the interest expense of the period and reduced by the amount of lease payments. 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
CONTENTS 1. 2019 FIRST-HALF KEY FIGURES AND FACTS 2. 2019 FIRST-HALF RESULTS 3. 2019 OUTLOOK 4. APPENDICES 3
1 2019 FIRST-HALF KEY FIGURES AND FACTS
2019 FIRST-HALF KEY FIGURES AND FACTS Key figures: sustained growth in results Revenue (€ M) EBITA (€ M) ▪ Solid revenue growth in H1 327* % of revenue 2,564 2019: + 23.9% on a reported 2,070 basis and + 10.4% lfl , with an + 10.4% lfl 246 acceleration in Q2 (+10.9% lfl) 12.8% 11.9% ▪ Increase in EBITA margin to H1 2018 H1 2019 H1 2018 H1 2019 12.8% vs. 11.9% in H1 2018* Net Free Cash Flow (€ M) Diluted Earnings Per Share (€) ▪ Diluted Earnings Per Share up 172 2.49* + 18.6% vs. H1 2018* 156 2.10 ▪ Maintaining strong generation + 18.6% of net free cash flow H1 2018 H1 2019 H1 2018 H1 2019 5 * Impact from the implementation of IFRS 16 as of January 1, 2019: + €11M on EBITA, + 50 bps on EBITA margin and €(0.10) on dil uted earnings per share
2019 FIRST-HALF KEY FIGURES AND FACTS Key facts: execution of the strategy ▪ Confirming Teleperformance’s unique worldwide leadership in its market with a continued increase in its operational footprint, with 12,600 new workstations opened in H1, notably in: ▪ For expanded sites ▪ For new sites ▪ USA ▪ USA ▪ Columbia and Portugal ▪ Brazil, Dominican Republic, Mexico ▪ Tunisia, Russia, Egypt, Bosnia, Turkey ▪ Greece and Turkey ▪ India ▪ India ▪ First-time consolidation of ex-Intelenet activities in H1 2019 ▪ Worldwide deployment of D.I.B.S. digital solutions at a good pace, now representing 20% of Teleperformance’s revenue ▪ Continued “digitalization” of the Teleperformance client portfolio, with “E - clients” now representing 22% of Group revenue ▪ New accounts disclosure from January 1, 2019: ▪ New presentation by linguistic region following the acquisition of ex-Intelenet activities in 2018 ▪ First-time implementation of IFRS 16 in H1 consolidated accounts 6
2 2019 FIRST-HALF RESULTS
2019 FIRST-HALF RESULTS P&L summary IFRS 16: New lease standard effective as of January 1, 2019 The Group rarely owns its premises: most of its 400+ contact centers are held on operating leases. All premises leases have been restated: ▪ Right-of-use asset recognised in the balance sheet and depreciated over the lease term ▪ Lease expenses split between interest and debt repayment € millions H1 2018 H1 2019 H1 2019 impacts from the €/$ exchange rate (12 months average) €1 = US$1.22 €1 = US$1.13 Revenue 2,070 2,564 implementation of IFRS 16: Reported growth + 23.9% Like-for-like growth* + 10.4% + €96M EBITDA before non-recurring items* 323 505 + €11M % of revenue 15.6% 19.7% EBITA before non-recurring items* 246 327 + 50 bps % of revenue 11.9% 12.8% + €11M Operating profit (EBIT) 190 255 Net profit - Group share 123 145 €(7)M Diluted earnings per share (€)* 2.10 2.49 €(0.10) € millions 12/31/2018 06/30/2019 €/$ exchange rate (closing) €1 = US$1.15 €1 = US$1.14 + €688M Net financial debt 2,101 2,775 * For the definition of the financial indicators mentioned in the charts and tables, please refer to the Alternative Performance Measures in the appendix 8
2019 FIRST-HALF RESULTS Revenue growth analysis ▪ Revenue growth : + 23.9% as reported and + 10.4% like-for-like ▪ Change in scope: consolidation of Intelenet since October 2018 ▪ Positive foreign exchange impact mainly from the strengthening of the US dollar against the euro 2,564 +226 +220 + 10.4% lfl 2,118 2,070 48 H1 2018 Currency effet H1 2018 at constant Like-for-like growth Change in scope H1 2019 exchange rates 9
2019 FIRST-HALF RESULTS Revenue growth by industry vertical 47% Expertise in many 5% 14% 10% industries 9% 18% 4% 4% 3% 2% 2% 14% 15% 13% 11% 7% 7% 6% 5% 4% % Revenue by vertical – details H1 2019 vs. 2013 Transportation Healthcare, Financial Technology, Retail, Travel Public Media & Other & Logistics Insurance Services Consumer e-Commerce Agencies, Sector Entertainment Electronics Hotels, Airlines Telecommunications (Pay-TV and Telecom - Internet) ▪ Ongoing diversification over time ▪ Increased contribution of business with e-player clients 10
2019 FIRST-HALF RESULTS Revenue growth by industry vertical Teleperformance revenue generation with e-clients (2013-2019 - %) The Digital Economy: a 95% 81% 78% powerful growth engine for Teleperformance + 3 ppt + 14 ppt 22% 19% 5% 2018 H1 2019 2013 % revenue generated with pure e-clients among Top 150 clients 11
2019 FIRST-HALF RESULTS Revenue by activity ▪ Core Services like-for-like growth in H1 : + 11.4% , driven by Ibero-LATAM and CEMEA and acceleration in EWAP ▪ Specialized Services H1 like-for-like growth : + 5.0% , back to normative growth with acceleration in Q2 Change (%) 2019 2018 Revenue (€ M) Like-for-like* Reported H1 Q2 H1 Q2 H1 Q2 H1 Q2 + 11.4% + 11.8% + 26.1% + 26.2% Core Services & D.I.B.S. 2,221 1,115 1,761 884 - English-speaking & Asia-Pacific (EWAP) 801 401 695 345 + 4.4% + 6.1% + 15.3% + 16.1% - Ibero-LATAM 645 329 563 288 + 16.1% + 16.2% + 14.6% +14.3% - Continental Europe & MEA (CEMEA) 519 257 454 225 + 14.5% + 13.8% + 14.3% + 14.1% - India & Middle East 255 129 48 26 +32.7% + 23.7% n/m n/m Specialized Services 344 178 309 160 + 5.0% + 6.3% + 11.1% + 11.2% + 10.4% + 10.9% + 23.9% + 23.9% Total 2,564 1,293 2,070 1,044 o/w D.I.B.S. 507 272 N/A N/A N/A N/A N/A N/A * At constant exchange rates and scope of consolidation 12
2019 FIRST-HALF RESULTS Margin by activity ▪ Increase in margin in both activities , Core Services & D.I.B.S. and Specialized Services, including and excluding first positive impact of applying IFRS 16 in H1 2019 ▪ Increase in all regions for Core Services & D.I.B.S. , except for Ibero-LATAM due to ramp-up costs related to new sites ▪ Specialized Services margin continuing to grow H1 2019* H1 2018 Recurring EBITA € M € M Margin Margin Core Services & D.I.B.S. 215 9.7% 151 8.6% - English-speaking & Asia-Pacific (EWAP) 58 7.2% 43 6.2% - Ibero-LATAM 69 10.7% 61 10.8% - Continental Europe & MEA (CEMEA) 32 6.2% 19 4.2% - India & Middle-East 39 15.3% 6 11.5% - Holdings** 17 - 22 - Specialized Services 112 32.6% 95 30.7% Total 327 12.8% 246 11.9% * Including a + €11 million impact on EBITA and + 50 bps on EBITA margin from the implementation of IFRS 16 as of January 1, 2019 13 ** Group holdings relating primarily to Core Services businesses
2019 FIRST-HALF RESULTS Core Services – English-speaking market & Asia-Pacific (EWAP) Revenue (€ M) o LFL revenue growth accelerated sharply in Q2 to + 6.1% + 4.4% lfl o Continued recovery in North America: most dynamic segments 801 695 were e-tailing, healthcare, transportation services and logistics + 6.1% lfl o Decline in revenue in the UK , in a still uncertain economic 345 401 environment o In Asia, growth was sustained in Malaysia with the recent opening of a second multilingual hub in Penang Q2 2018 Q2 2019 H1 2018 H1 2019 EBITA (€ M) o Excluding the positive impact of applying IFRS 16, H1 % of revenue 2019 saw a satisfactory improvement in the margin 58 year-on-year 43 o Margin supported by the ramp-up of recently signed contracts, relating in particular to domestic business in 7.2% North America and multilingual solutions in Malaysia 6.2% H1 2018 H1 2019 14
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