Teleperformance Group Overview Including Q3 2018 information
DISCLAIMER 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 1. TELEPERFORMANCE 2. Q3 2018 RESULTS AT A GLANCE AND OUTLOOK 3. STRATEGY IN ACTION: 4. APPENDICES ACQUISITION OF INTELENET
DETAILED AGENDA p. p. 5-10 10 1. 1. TEL ELEPERFORMANCE AT A GLAN LANCE Teleperformance at t a glance 5-11 2. Q3 2. 3 20 2018 18 RESULTS AND OUTLOOK p. 11 p. 11-19 19 Q3 2018 Key Figures 2018 Outl tlook and nd 2022 Financial Obje bjectives 11-18 19 3. 3. STRA RATEGY IN N ACTION: ACQUISITION OF F INTE NTELENET p. p. 20 20-32 32 Financial impact for or Teleperformance 29-32 20-23 Acquisition of of Inte telenet 24-28 Int ntelenet bu busi siness ss ov overview 4. 4. APP PPENDICES p. 33 p. 33-54 54 Market Environment 33-37 Teleperformance Sh Shareholding 52 Key Differentiating Factors 38-50 Alte ternative Performance Measures 53 51 Governance Stru Structure 4
1 TELEPERFORMANCE AT A GLANCE
TELEPERFORMANCE AT A GLANCE Key milestones of a growth and transformation story… Starting 40 years ago, First listed on Started Acquisitions in Offshore ongoing growth and Founded in 1978 Acquisition in programs the Paris stock operations in Argentina and transformation story, in France Mexico market the US Brazil launched either organically and through high profile 1993 2002 2003 1986 1998 1978 acquisitions TELEPERFORMANCE #1 IN FRANCE TELEPERFORMANCE #1 IN EUROPE Acquisition Acquisition of Acquisition of Full control of Acquisition of of The BeCogent (UK) Acquisition of LanguageLine TLScontact Aegis USA (US) Intelenet Answer & Teledatos Solutions Group (US) (Colombia) 2016 2018 2008 2010 2012 2014 … STRENGTHENING ITS VERTICAL EXPERTISE AND TELEPERFORMANCE WORLDWIDE LEADER SPECIALIZED SERVICES 6
TELEPERFORMANCE AT A GLANCE …to become the worldwide market leader leveraging a unique global network Founded in 1978 Operations in nearly 80 countries 300,000 Employees Worldwide leader Countries where TP operates with 2017 revenue of €4.2bn Serving 160+ New site in Kosovo Markets • Nearly 12,000 workstations opened in 2017 in 265 • Languages New countries: Peru and Kosovo New site in Peru 7
TELEPERFORMANCE AT GLANCE …to provide a full range of services in constant evolution • Mission: Teleperformance people, “all over the world, all around the clock”, helping people address their day-to-day issues , in an even more changing and complex environment • A global service provider focused on the customer experience services requiring strong processes, right people and innovation capabilities to succeed • From Core Services to Specialized Services: strengthening the Group profile with higher added-value services Core Services: Revenue by activity in 2017 Customer services Technical support Core Services 85%* Client acquisition Inbound interaction activities represents 85% of Core Services revenue Ibero- LATAM Specialized Services: EWAP 26% 39% Online interpreting services (LanguageLine Solutions) CEMEA Visa application management services (TLScontact) 20% Accounts receivable management services (AllianceOne Receivables Management) 15% Digital Integrated Business Services (DIBS), including: Specialized Intelenet international activities Services Praxidia “analytics & consulting solutions” * Core Services split by linguistic region: - EWAP English-speaking market and Asia-Pacific (the US, Canada, the UK, the Philippines, China, India, etc.) - Ibero-LATAM Latin American countries (Brazil, Mexico, Colombia, etc.), Portugal and Spain 8 - CEMEA Continental Europe, Middle East & Africa
TELEPERFORMANCE AT A GLANCE A global leadership recognized in the industry Over the last 5 years, Teleperformance has been recognized: Best Employer 5 times as the 26 times by Frost Best Place To Work certified 26 times leader by Everest & Sullivan certified 26 times in 16 countries in 8 countries Probably the most ever recognized company in the CX outsourcing industry Teleperformance is also active in Corporate Social Responsability and Group’s employee voluntary contribution ”Citizen of the World” program has raised close to US$34M in cash and in kind, utilized to support the communities in which Teleperformance operates 9
TELEPERFORMANCE FINANCIAL TRACK RECORD … with a proven financial track record (2011 -2017) 600 14% 5000 13,3% +9,9% 4180 3649 500 13% 10% 4000 3398 +7,9% +9,0% 400 12% +6,9% 2758 3000 11,2% +7,4% 2347 2433 +7,5% 2126 300 11% 5% 2000 10,3% 200 9,7% 10% +3,5% 9,3% 1000 9,1% 100 9% 8,5% 0 0% 0 8% 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 Revenue Group LfL growth Current EBITA Net profit – gr. share EBITA margin 400 1800 3,0 2,6 300 1300 2,0 1,9 1,1 200 800 1,0 0,8 100 300 0,0 0,0 -0,4 -0,3 0 -200 -1,0 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 PF* Net capex Net Free cash flow Net debt Net debt /EBITDA 2011 2012 2013 2014 2015 2016 2017 * LanguageLineSolutions consolidated on a 12 months basis Net capex / revenue 4.5% 4.6% 5.2% 5.7% 5.0% 5.2% 3.5% Net Free cash flow / EBITDA 33% 31% 20% 25% 41% 42% 45% 10
2 Q3 2018 RESULTS AND OUTLOOK
Q3 2018 REVENUE Continued strong revenue growth ▪ Solid revenue growth in Q3 2018, both on reported and a like-for-like Change 2018 2017 Like-for-like* Reported €/$ exchange rate (9 months average) €1 = US$1.20 €1 = US$1.11 9M (to September 30) 3,146 3,096 8.3% 1.6% Q3 1,076 1,014 8.3% 6.1% * At constant exchange rates and scope of consolidation 12
Q3 2018 REVENUE Revenue growth analysis in 9M 2018 ▪ 9M revenue growth : + 1.6% as reported and + 8.3% like-for-like ▪ Negative foreign exchange impact mainly coming from the weakening of the US dollar, Brazilian real and Argentine peso against the euro +240 3,146 +1 3,096 2,905 + 8.3% lfl (191) 9 months 2017 Currency effect 9 months 2017 Like-for-like growth Change in scope 9 months 2018 at constant exchange rates 13
Q3 2018 REVENUE Revenue by activity ▪ Core Services 9M like-for-like growth : + 8.9% , driven by continued strength in Iberico-LATAM and confirmed pick-up in CEMEA ▪ Specialized Services 9M like-for-like growth : + 4.8% , supported by LanguageLine Solutions in North America 2018 2017 Change (%) Revenue (€ M) Like-for-like* Reported 9M Q3 9M Q3 9M Q3 9M Q3 Core Services 2,672 917 2,614 861 8.9% 9.3% 2.2% 6.5% - English-speaking market & Asia-Pacific 1,137 397 1,195 383 1.2% 3.0% -4.9% 3.6% - Ibero-LATAM 843 283 801 266 16.3% 14.7% 5.3% 6.5% - Continental Europe & MEA 691 237 618 212 14.4% 14.3% 11.9% 11.7% Specialized Services 474 159 482 153 4.8% 3.0% -1.7% 3.7% Total 3,146 1,076 3,096 1,014 8.3% 8.3% 1.6% 6.1% * At constant exchange rates and scope of consolidation 14
Q3 2018 REVENUE Core services – EWAP revenue growth analysis 9M 2018 vs. 9M 2017 (€ M) 1,195 1,137 + 1.2% lfl o Pick-up in growth compared with the start of the year , mainly led by North America o In 9M, Teleperformance continued to successfully diversify its client portfolio in the region in terms of verticals: e-services, consumer goods, consumer electronics, energy & utilities are the most dynamic segments 9M 2017 9M 2018 o In Asia, confirmation of the return to a solid pace of growth underway since Q3 2018 vs. Q3 2017 (€ M) the start of 2018, driven by China and India 397 o Uncertainty in the UK caused by Brexit: potential clients held off on 383 outsourcing decisions + 3.0% lfl Q3 2017 Q3 2018 15
Q3 2018 REVENUE Core Services – Iberico-LATAM growth analysis 9M 2018 vs. 9M 2017 (€ M) o Sustained like-for-like growth in both 9M and Q3 843 801 + 16.3% lfl o Main growth driver remains Portugal , with fast development of multilingual hubs serving major multinationals o Both nearshore and domestic activities in Mexico and Colombia are well oriented 9M 2017 9M 2018 o Rapid ramp up of operations in the Peruvian market Q3 2018 vs. Q3 2017 ( € M) 283 266 + 14.7% lfl Q3 2017 Q3 2018 16
Q3 2018 REVENUE Core Services – CEMEA revenue growth analysis 9M 2018 vs. 9M 2017 (€ M) o Very good sales dynamic among multinational clients and fast- growing local market leaders in a wide range of verticals 691 618 o Significant revenue growth in Greece, Egypt, Turkey an Eastern + 14.4% lfl Europe o French activities benefited from the ramp up of new contracts , notably in energy and e-service, and confirmed the return to 9M 2017 9M 2018 satisfactory growth begun in the first half o Back to growth in Scandinavia, in Germany and in Italy over Q3 2018 vs. Q3 2017 (€ M) 9M 237 212 + 14.3% lfl 9M 2017 9M 2018 17
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