Teleperformance Se · EURONEXT:TEP
Teleperformance — Conference Presentation (January 2025)
41 slides from Teleperformance's conference presentation, January 2025
Slide 1: Teleperformance Group overview
Teleperformance Group overview Including 2024 Third-Quarter Revenue - (January 1, 2024 to September 30, 2024) January 2025 1
Slide 2: Disclaimer
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 de
Slide 3: Contents
Contents 01. Teleperformance overview and strategy 02. 2024 Third-Quarter Revenue and 2024 outlook 03. Appendix
Slide 4: TP mission
TP mission ▪ To help organizations manage and enhance their relationships with their customers/citizens, leveraging the best available technologies and human resources ▪ To simplify and optimize business operations SIMPLER FASTER SAFER COST-EFFECTIVE 4
Slide 5: Unparalleled markets and geographic reach
Unparalled markets and geographic reach A global leader in digital business services Nearly Nearly 100 170+ 1,400 10B+ Countries Markets Clients² FY revenue have a TP presence served (euros) Breakdown by activity and geography 1 Specialized Services 15% Americas 41% EMEA & APAC 44% Core Services & D
Slide 6: Solid and diversified portfolio of activity
Solid and diversified portfolio of activity Breakdown by business line1 Breakdown by vertical1 2 Energy Automotive Specialized Services Governments Media, Entertainment & Other Care Healthcare Gaming Trust & safety Other Financial services & insurance Back-office/BPO Telecom Sales Retail & e- Travel
Slide 7: TP is a trusted global transformation partner for its clients
TP is a trusted global transformation partner for its clients delivering value by combining 4 dimensions People Leading global delivery platform powered by TP experts Domain Expertise Process Excellence Deep vertical and horizontal Highest operational standards ensured expertise servicing global & >
Slide 8: Technology: AI-enabled suite of selected TP Applications
Technology: AI-enabled suite of selected TP Applications AI at Teleperformance A one-office offering to augment and enhance operations Microservices: An AI-enabled suite of TP Applications plugged into the client IT AI-Powered ecosystem GenAI platform augments employees in their day-to-day task, fro
Slide 9: People: the power of emotional intelligence
People: the power of emotional intelligence Included in the 25 World's Best Workplace List for the 4th consecutive year RANKED #7 GLOBALLY 97% 96,500 of all employees work people hired for their in a certified Great first work experience Place to Work® in 2023 63% non-agent roles filled internally 5
Slide 10: Financial track record (1/2)
Financial track record (1/2) Profitable12growth 000 € • Digital and Social 48,0% Platforms growth - 1 Interactions Explosion >10,000 10 000 € • AI adoption • Covid boost 38,0% 8,345 • Steady Macro 8,154 8 000 € Environment with 7,115 Low Cost of Capital • RPA hype and steady 28,0% 5,732 6 000 € adop
Slide 11: Financial track record (2/2)
Financial track record (2/2) Strong cashflow > 9501 Net free cashflow (2012-2024E) 812 Cash conversion rate (2019-2023)² 703 661 50% 45,7% 486 40% 34,5% 30% 324 321 281 20% 236 202 10% 95 93 0% 64 2019 2023 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Net Free cash flow (€m) 1 B
Slide 12: Capital allocation strategy
Capital allocation strategy Balanced and flexible LT strategy to create value Financing the development Maintaining investment Returning to shareholders grade rating • Investing in the future growth • Debt leverage: ≤ 2x • Dividend • Bolt-on M&As • S&P credit rating: BBB • Share buy-back 12
Slide 13: A strengthened governance to accelerate growth
A strengthened governance to accelerate growth TP corporate leadership Moulay Hafid Elalamy Non-executive Chairman of the Board of Directors Executive Committee1 Daniel Julien Chief Executive officer Thomas Mackenbrock Olivier Rigaudy Deputy Chief Executive Officer Deputy Chief Executive Officer, in
Slide 14: Contents
Contents 01. TP overview and strategy 02. 2024 Third-Quarter Revenue and 2024 outlook 03. Appendix
Slide 15: Highlights Q3 2024
Highlights Q3 2024 ˃ Accelerated growth momentum: +3.0% Q3 pro forma1 growth (vs. +2.1% in 9M1) and +26.7% as reported Gains across every operating region in Core Services, particularly in banking & financial services, retail ˃ & e-commerce, technology, travel & hospitality, healthcare, and automoti
Slide 16: Selected business highlights in Q3
Selected business highlights in Q3 PEOPLE PROCESSES TECHNOLOGY DOMAIN EXPERTISE Global firmwide Enhanced update of 160+ new AI projects Double-digit growth upskilling program in TOPS & BEST process for more than 130 momentum in vertical AI & EI1 launched excellence programs clients in Q3; further an
Slide 17: Growth on track
Growth on track (€m) % change 2024 2023 Reported Pro forma 1 €/$ exchange rate (9-month average) €1 = US$1.09 €1 = US$1.08 Q3 2,520 1,989 +26.7% +3.0% 9M (to September 30) 7,596 5,949 +27.7% +2.1% 1 2023 pro forma at constant exchange rates including Majorel 17
Slide 18: 9M revenue growth analysis
9M revenue growth analysis (€m) +27.7% 1,604 7,553 (112) 7,441 +155 7,596 +2.1% 5,949 pro forma 9M 2023 Majorel 9M 2023 pro forma Currency effect 9M 2023 pro forma at Pro forma growth 9M 2024 constant exchange rates 18
Slide 19: Acceleration in revenue growth in Q3 as expected
Acceleration in revenue growth in Q3 as expected 15% 2 600 2,547 2,525 2,579 2,542 2,534 2,520 2,481 13% 2 400 11% 2 200 +11% 9% 2 000 7% 1 800 5% 1 600 +6% +2%/+4%2 +3% 3% 1 400 +4% 1 200 +2% 1% +1% +1% 1 000 -1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 2024 1 2023 2024 Outlook Revenue (€m) Pro forma growth² (%) 1
Slide 20: 9M: growth driven by Specialized Services and EMEA & APAC
9M: growth driven by Specialized Services and EMEA & APAC (€m) +118 7,596 7,441 -34 +71 -1% PF +2% PF +12% PF 9M 2023 pro forma at Americas EMEA & APAC Specialized Services 9M 2024 constant exchange rates 20
Slide 21: Revenue by activity
Revenue by activity Revenue (€m) 9M 2024 9M 2023 % change Reported Pro forma1 Core Services & D.I.B.S. 6,480 4,940 +31.2% +0.6% - Americas 3,093 2,887 +7.2% -1.1% - Europe, MEA & APAC 3,387 2,053 +64.9% +2.2% Specialized Services 1,116 1,009 +10.6% +11.9% Total 7,596 5,949 +27.7% +2.1% Revenue (€m)
Slide 22: 2024 outlook confirmed
2024 outlook confirmed • Pro forma annual growth1 of +2% to +4% • EBITA margin before non-recurring items up between 10bps and 20bps on an annualized pro forma basis2 (vs. 14.9% in 2023) • Sustained growth in net free cash flow • A robust balance sheet with leverage of less than 2x EBITDA3 • Share b
Slide 23: Alternative Performance Measures
Alternative Performance Measures Change in like-for-like revenue: Change in revenue at constant exchange rates and scope of consolidation = (current-year revenue - last-year revenue at current-year rates - revenue from acquisitions at current-year rates) / last-year revenue at current-year rates. Pr
Slide 24: Contents
Contents 01. TP overview and strategy 02. 2024 Third-Quarter Revenue and 2024 outlook 03. Appendix
Slide 25: APPENDIX
APPENDIX APPENDIX 1: TP overview - Additional information APPENDIX 2: Digital transformation - Additional information on AI/GenAI APPENDIX 3: Market and competitive environment 25
Slide 26: APPENDIX 1 TP overview
APPENDIX 1 TP overview Additional information 26
Slide 27: TP story
TP story High credibility: 45 years+ at the forefront of customer experience and business services outsourcing Nearly Revenue* 2018 Acquisition of 2023 500K €10+ Intelenet and employees billion 2012 launch of Digital Full control of Integrated TLSContact Business Services (Luxembourg) 2023 Acquisiti
Slide 28: TP Specialized Services activities
TP Specialized Services activities Providing TP a solid differentiated future of double-digit revenue & profit growth ▪ LanguageLine Solutions: Global leader for mission critical interpreting and translation services ▪ TLScontact: Global travel visa processing services for multiple governments ▪ Hea
Slide 29: Financial track record
Financial track record Creating value: a proven financial track record (2012-2024E) >10,000** +10 to 10 000 15,5% 8,154 25% 15.1% 15,5% +20bps 1600 14.3% 14,9% 8 000 +25.7%* 13.3% 13.6% 20% 1400 15% 6 000 +12,5%* 1200 11.2% 13% +9.9% 15% 1000 9.7% 10.3% 4 000 2,347 +7.5% 800 9.1% 9.3% 12.8% 11% +5,1
Slide 30: Smart shoring
Smart shoring A unique and longstanding offering of worldwide broad sourcing mix • Network of 42 offshore/nearshore locations and 21 multilingual hubs around the world (2023) Increasing offshore 43% 65% 57% 35% +22 ppt 2010 2023 % of nearshore/offshore/ multilingual hub revenue % of domestic revenue
Slide 31: Security: we make CX simpler, faster, and much safer
Security: we make CX simpler, faster, and much safer With world-class security solutions SECURITY PRINCIPLES PEOPLE PROCESS CULTURE TECHNOLOGY C-level security External Customized Security Comprehensive, governance and audits and ethical Risk Assessments end-to-end technology, highly trained, hackin
Slide 32: A recognized sustainable model
A recognized sustainable model Positioned as a leader in all major ESG ratings Score: 70/100 Reconfirmed in the Score: 62/100 Ethibel Sustainability Advanced classification, way above Top 4% of its sector. Excellence Europe sector average in all categories. +4pts Distinguished in the S&P Index with
Slide 33: Quantified and ambitious ESG targets
Quantified and ambitious ESG targets Commitments Objectives Commitment Objectives How? Be a preferred employer in the >90% employees working in a certified GPTW® market Since 2011, TP is a signatory of the UN Promote diversity, equality Increase in % of women on Executive Committee, while Global Com
Slide 34: APPENDIX 2 Digital transformation
APPENDIX 2 Digital transformation Additional information on AI / GenAI 34
Slide 35: TP has kept pace with the evolution of AI
TP has kept pace with the evolution of AI and delivered increasingly complex use cases for clients Simple rule-based automation Chatbots | Voicebots | Emailbots Generative AI IVR1, RPA2, OCR3, ML4 Natural Language Processing Transformers & Large Language Model (NLP) (LLM) Automate repetitive, simple
Slide 36: Managing end-to-end services for a large international bank
Managing end-to-end services for a large international bank Case example Strategic Partner Integration Partner 2023-24 Established BPO partner 2016-22 TP manages end-to-end customer lifecycle across +4 new business lines: accounts, loans, cards, Traditional Front office 2010-15 payments & fraud disp
Slide 37: APPENDIX 3 Market and competitive environment
APPENDIX 3 Market and competitive environment 37
Slide 38: Market and competitive environment
Market and competitive environment Growing and still low outsourced CX market • Outsourced CX market worth $113-115bn in 2023E, up ~ +3%/+4% vs. 2022 • Outsourcing rate of 32% in 2023E, benefiting from increasingly complex clients needs • Market growth expected to continue in 2024E (2% according to
Slide 39: Market and competitive environment
Market and competitive environment Consolidation of a still fragmented CX market Market share of the TOP 7 worldwide in the CX market* TOP 7 in revenue (2022) Teleperformance(1) (Revenue in US$m) 10% Concentrix(2) 12,000 9% 10,000 Foundever (ex-Sitel) 8,000 4% 6,000 Telus International TTEC 2% 4,000
Slide 40: Market and competitive environment
Market and competitive environment Enlarged addressable market with broader competitive environment (BPO/ITO/Consulting) … whose transformation leads to reaching to #1 global leader in the outsourced CX market digital integrated business services market #1: New TP TOP 2: >= US$ 10 bn revenue Top pla
Slide 41: Contact: investor@teleperformance.com
Contact: investor@teleperformance.com
Teleperformance — Conference Presentation (January 2025) on 6ix