Slide 1: Investor Presentation Group Overview May - June 2016
INVESTOR PRESENTATION Group Overview May - June 2016
Slide 2: Disclaimer
DISCLAIMER The consolidated financial statements have been audited and certified. All forward-looking statements are 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 fr
Slide 3: Agenda
AGENDA Teleperformance at a glance Market environment and growth strategy Q1 2016 Revenue and FY 2016 Outlook Appendix 1: 2015 Financial results Appendix 2: Leadership assets 3
Slide 4: Teleperformance at a Glance
TELEPERFORMANCE AT A GLANCE Teleperformance people
Slide 5: A Full Range of Services
TELEPERFORMANCE AT A GLANCE A FULL RANGE OF SERVICES Exceptional volume growth in one-to-one distance communications “all over the world, all around the clock” to help people address their day-to-day issues Serving companies around the world by 2015 revenue managing with the highest efficiency the
Slide 6: Enhanced Worldwide Market Leadership in 2015
TELEPERFORMANCE AT A GLANCE ENHANCED WORLDWIDE MARKET LEADERSHIP Founded in IN 2015 1978 Operations in 65 countries 190,000 Employees 147,000 / 311 Workstations Contact centers Worldwide leader with 2015 revenue of € 3.4bn Expanded worldwide footprint in 2015: + 8,000 employees Enhanced offshore
Slide 7: Strong Language Capacity
TELEPERFORMANCE AT A GLANCE STRONG LANGUAGE CAPACITY Serving programs in 75 languages over 3 linguistic regions* 2015 FTE**s by languages 2015 FTE**s by languages 2015 FTEs** by languages EWAP Ibero-LATAM CEMEA Others German Arabic Others Mandarin 9% Hindi 1% French Swedish 2% French 4% 1% 5% 2% 3
Slide 8: Strong Group Geographical Mix
TELEPERFORMANCE AT A GLANCE STRONG GROUP GEOGRAPHICAL MIX Revenue by linguistic region (2010-2015) Well-balanced and solid geographical mix 35% 32% 30% 30% 28% 26% EWAP contribution has grown to represent 50% of total 24% 31% 28% 28% 30% 31% revenue vs 37% in 2010 50% 44% 38% 39% 39% 37% 2010 20
Slide 9: A Growing Workforce in Key Regions and Strong Sourcing Mix
TELEPERFORMANCE AT A GLANCE A GROWING WORKFORCE IN KEY REGIONS AND STRONG SOURCING MIX Country Employees Revenue by sourcing (2012-2015) Employees 2015 2011 1 PHILIPPINES 38,197 13,878 2 UNITED STATES 26,216 15,351 74% 71% 66% 65% 3 MEXICO 15,800 12,480 4 BRAZIL 15,016 12,047 5 COLOMBIA 10,507 7,256
Slide 10: A Unique Offering of Worldwide Domestic/Nearshore/Offshore Solutions
TELEPERFORMANCE AT A GLANCE A UNIQUE OFFERING OF WORLDWIDE DOMESTIC/NEARSHORE/OFFSHORE SOLUTIONS With a network of 33 offshore/nearshore locations around the world, Teleperformance is the only industry player able to offer worldwide integrated Domestic, Nearshore & Offshore solutions 10
Slide 11: The Largest and Most Diversified Client Base in the Industry
TELEPERFORMANCE AT A GLANCE THE LARGEST AND MOST DIVERSIFIED CLIENT BASE IN THE INDUSTRY Strong client portfolio and industry diversification, with significant growth in non-Telecom/Internet/Pay-TV sectors representing 67% of total revenue vs 49% in 2012 Strong momentum in Healthcare & Insurance
Slide 12: A Strong and Diversified Client Base
TELEPERFORMANCE AT A GLANCE A STRONG AND DIVERSIFIED CLIENT BASE Multi-year trend of lower revenue concentration Increased contribution from global accounts Client portfolio concentration % of revenue • Increasingly diverse client base now more than (2007-2015) 850 clients 40% 35% • Average tenu
Slide 13: Proven Financial Track Record (2009-2015)
TELEPERFORMANCE TELEPERFORMANCEAT AATGLANCE A GLANCE PROVEN FINANCIAL TRACK RECORD (2009-2015) Profitable growth € millions 2009 2010 2011 2012 2013 2014 2015 Revenue 1,848 2,059 2,126 2,347 2,433 2,758 3,398 Group LfL growth (1.1)% + 1.1% + 3.5% + 6.9% + 7.9% + 9.9% + 7.5% EWAP NA* + 0.8% + 6.5%
Slide 14: Market Environment and Growth Strategy
MARKET ENVIRONMENT AND GROWTH STRATEGY Teleperformance professional
Slide 15: A Growing Market
MARKET ENVIRONMENT A GROWING MARKET Global outsourced market size: $58 bn • 55% of volumes generated in the USA, the biggest market • 14% generated in APAC, the fastest-growing market Growing worldwide outsourced market : + 5% per annum by 2019 (source IDC) Worldwide Outsourced Customer 2015 Out
Slide 16: Huge Growth Opportunities
MARKET ENVIRONMENT HUGE GROWTH OPPORTUNITIES Outsourcing rate is 26% and progressively higher due to: • increased penetration in some legacy verticals • new demand from the New Economy players Fragmented market: top 5 representing 20% of the outsourced market ($USD), which includes Teleperforman
Slide 17: Teleperformance's Unique Global Positioning
MARKET ENVIRONMENT TELEPERFORMANCE’S UNIQUE GLOBAL POSITIONING Current concentration trend M&A opportunities but need to be selective Top 10 competitors - ranking by estimated Ranking by number of revenue in 2015 countries- footprint (2015) (US$ M) 4 000 # Market players Countries 1 Teleperforma
Slide 18: Market Outlook - 2020 Trends
MARKET OUTLOOK - 2020 TRENDS CUSTOMERS CLIENTS MARKET EMPLOYEES (end user) (partners) POPULATION DATA GROWTH CONTINUES ENGAGEMENT 7.76bn in 2020 57% CAGR 2014 - 2019 + 5% per annum by 2019 vs 7.35bn in 2015 CONNECTED PEOPLE INCREASE CUSTOMER MARKET GENERATION 4.0bn in 2020 SATISFACTION CONSOLIDATION
Slide 19: The Power to Differentiate
GROWTH STRATEGY IN A FAST-MOVING ENVIRONMENT THE POWER TO DIFFERENTIATE Teleperformance’s strategy is based on 6 pillars “Our main OMMNICHANNEL STRONG objective is to VERTICAL CLIENT CENTRIC generate benefits SPECIALIZATION for our clients, ORGANIZATION increasing business TO SELL AND with them an
Slide 20: 2020 Vision
GROWTH STRATEGY IN A FAST-MOVING ENVIRONMENT 2020 VISION 2020 vision • More integrated omnichannel interactions • Growth in Asia (China and India) • A strategic mix of organic growth and targeted acquisitions, with North-America as a key priority • Objective: become a 5-billion euros revenue compa
Slide 21: Q1 2016 Revenue and FY 2016 Outlook
Q1 2016 REVENUE AND FY 2016 OUTLOOK Teleperformance professional
Slide 22: Q1 2016 Revenue: Satisfactory Growth
Q1 2016 REVENUE SATISFACTORY GROWTH Business momentum continuing to be solid, despite high Q1 2015 comparatives Q1 2016 revenue: + 1.6% as reported and + 5.5% like-for-like Change € millions Q1 2016 Q1 2015 Reported Like-for-like € 1 = US$1.10 € 1 = US$1.13 Revenue 844 831 + 1.6% + 5.5% 22
Slide 23: Sustainable Growth and Strong Geographical Mix
Q1 2016 REVENUE SUSTAINABLE GROWTH AND STRONG GEOGRAPHICAL MIX 16th quarter of strong growth, outpacing worldwide market growth Worldwide leadership and sustainable growth resulting from a robust and balanced geographical mix Quarterly lfl revenue growth since 2012 Revenue geo* mix in Q1 2016 (v
Slide 24: Revenue Growth Analysis
Q1 2016 REVENUE REVENUE GROWTH ANALYSIS Decrease in certain currencies – primarily Latin American currencies such as the Brazilian real, and the Mexican, Colombian and Argentine pesos – against the euro € millions 831 (31) + 44 844 800 + 5.5% lfl Q1 2015 Currency effect Q1 2015 Like-for-like growt
Slide 25: Growth in All Regions
Q1 2016 REVENUE GROWTH IN ALL REGIONS English-speaking market & Asia-Pacific Revenue by region in Q1 2016 vs. Q1 2015 • Growth in the North American market slowed (€ millions) temporarily as a result of an unfavorable basis of comparison stemming from an incident affecting the 416 425 region from
Slide 26: 2016 Outlook
2016 OUTLOOK Annual organic growth objective • Like-for-like revenue growth of between + 5% and + 7% (outpacing the market average) Annual recurring EBITA margin objective • Margin superior or equal to 10.3% Strong free cash flow generation • Cash conversion rate superior or equal to the rate
Slide 27: Appendix 1: 2015 Financial Results
APPENDIX 1: 2015 FINANCIAL RESULTS Teleperformance people
Slide 28: Summary P&L
2015 ANNUAL RESULTS SUMMARY P&L Continued positive momentum € millions 2015 2014 Change €1 = US$ 1.11 €1 = US$ 1.33 Revenue 3,398 2,758 + 23.2% Like-for-like growth + 7.5% EBITDA before non-recurring items* 492 376 + 31.0% % of revenue 14.5% 13.6% EBITA before non-recurring items* 351 267 + 31.6%
Slide 29: Revenue Growth Analysis in 2015
2015 ANNUAL RESULTS REVENUE GROWTH ANALYSIS IN 2015 Revenue growth analysis + 7.5% lfl (2014-2015) Like-for-like growth: + 7.5% €M + 217* 3,398 + 222 + 201 2,951 2,758 Main change in scope: acquisition of Aegis USA Inc. in August 2014 Main currency translation effect: US 2014 Currency effect 2
Slide 30: Revenue and Recurring EBITA by Region
2015 ANNUAL RESULTS REVENUE AND RECURRING EBITA* BY REGION REVENUE Change € millions 2015 2014 Reported Like-for-like English-speaking market & Asia Pacific 1,688 1,209 + 39.6% + 4.4% Ibero-LATAM 834 770 + 8.4% + 7.8% Continental Europe & MEA 876 779 + 12.4% + 12.8% TOTAL 3,398 2,758 + 23.2% + 7.5%
Slide 31: Cash Flow
2015 ANNUAL RESULTS CASH FLOW Strong increase in net free cash flow: >x4 Increase in cash flow by + 25% • Capex ratio down vs 2014 which was notably inflated by one-off capex on TLScontact • Improved liquidity management after one-off WC outflow related to the integration of Aegis USA Inc. in 20
Slide 32: Financial Position
2015 ANNUAL RESULTS FINANCIAL POSITION Decreasing net debt €m 423 (219) 363 89* 53 17 Net debt as of Net free cash flow Interests paid Dividends paid Other items Net debt as of 12/31/2014 12/31/2015 * Other items include € millions 12/31/2014 12/31/2015 €1 = US$ 1.21 €1 = US$ 1.09 FX 50 Equity 1,6
Slide 33: Financial Ratios
2015 ANNUAL RESULTS FINANCIAL RATIOS Solid financial ratios and strong cash conversion rate close to 50% 12/31/2014 12/31/2015 Gearing* 26% 21% * Net debt / Equity 12/31/2014 12/31/2015 Net debt / recurring EBITDA 1.1 0.7 12/31/2014 12/31/2015 Net free cash flow / recurring 13% 45% EBITDA Extens
Slide 34: Dividend
2015 ANNUAL RESULTS DIVIDEND Dividend at €1.20* up + 30.0% Stable pay-out ratio at 35% € Pay-out ratio €1.20* 1,20 40% 35% 35% 35% 1,00 35% €0.92 30% €0.80 0,80 28% 30% 26% €0.68 0,60 25% 21% €0.46 0,40 €0.33 €0.33 20% 0,20 15% 0,00 10% 2009 2010 2011 2012 2013 2014 2015 * Approved by shareholde
Slide 35: Summary Balance Sheet
2015 ANNUAL RESULTS SUMMARY BALANCE SHEET € millions 12/31/2015 12/31/2014 12/31/2015 12/31/2014 €1 = 1.09US$ €1 = 1.21US$ €1 = 1.09US$ €1 = 1.21US$ Shareholders’ equity 1,758 1,595 Goodwill and intangible assets 1,404 1,342 Non-controlling interests 7 5 Property, plant and equipment 428 391 Equity
Slide 36: Appendix 2: Leadership Assets
APPENDIX 2: LEADERSHIP ASSETS TLScontact people
Slide 37: A People Company in a Fast-Paced World
PEOPLE STRATEGY A PEOPLE COMPANY IN A FAST-PACED WORLD “We are a people company and in the coming years it will be even more important to be people centric due to the increasing complexity of interactions and higher customer expectations.” “Our main goal is to be among the best companies to work for
Slide 38: Teleperformance Processes = Discipline
PEOPLE STRATEGY TELEPERFORMANCE PROCESSES = DISCIPLINE Teleperformance processes are designed to ensure the same quality, consistency and security in service delivery in every country TOPS & ATAC BEST CCMS SECURITY World Class World class Contact center An information coaching, problem processes f
Slide 39: People Strategy = Care
PEOPLE STRATEGY PEOPLE STRATEGY = CARE Our people strategy: a key factor of differentiation Satisfied employees make satisfied customers make satisfied clients HIRING TRAINING CAREER PREMIUM CAMPUS INITIATIVES TO Processes based Flexible learning OPPORTUNITIES CONCEPT PROMOTE ARTS & on our wor
Slide 40: CX Lab: A Unique Innovative Research Center
TELEPERFORMANCE DIFFERENTIATING POWER CX LAB: A UNIQUE INNOVATIVE RESEARCH CENTER TO STRENGHTEN VERTICAL EXPERTISE VIA AN INTEGRATED OMNICHANNEL APPROACH Teleperformance’s award-winning Customer Experience Lab (CX Lab) is a ground-breaking center devoted to research global trends in how companies in
Slide 41: Offering Omnichannel Solutions with TP Client CRM
TELEPERFORMANCE DIFFERENTIATING POWER OFFERING OMNICHANNEL SOLUTIONS WITH TP CLIENT CRM What is TP Client ? TP Client is an internally developed CRM tool that can help improve the efficiency and effectiveness of a client program to create, resolve, and track customer issues. • The strength of the
Slide 42: Security Challenges in the Industry: An Opportunity
A TELEPERFORMANCE DIFFERENTIATING POWER SECURITY CHALLENGES IN THE INDUSTRY : AN OPPORTUNITY Booming fraud environment and geopolitical risks: transforming challenges into opportunities • Investing in the future • Raising barriers-to-entry • Favorable concentration trend in the industry SMART DATA
Slide 43: Security Process - TP Observer
TELEPERFORMANCE DIFFERENTIATING POWER SECURITY PROCESS – TP OBSERVER EXAMPLE What is TP Observer ? TP Observer is Teleperformance’s real-time agent observation and floor management application. • Interactive contact center blueprint, allowing to create customized maps based and displaying key info
Slide 44: A Unique Solution Dedicated to European Markets: Multilingual Hubs
TELEPERFORMANCE DIFFERENTIATING POWER A UNIQUE SOLUTION DEDICATED TO EUROPEAN Alignment to Management of a single HR MARKETS: THE MULTILINGUAL HUBS sensitive data strategy Centralized data management from a highly One point of secure contact with environment at clients one site Delivering superior c
Slide 45: TLScontact Offering Visa Outsourcing Solutions
TELEPERFORMANCE DIFFERENTIATING POWER BUSINESS PROCESS OUTSOURCED: TLSCONTACT OFFERING VISA OUTSOURCING SOLUTIONS TLScontact is a pioneering BPO* company specialized in Face-to-Face contact centers Serving visa applications in c.80 countries on behalf of Governments • Helping governments to mana
Slide 46: Shareholding Structure
SHAREHOLDING STRUCTURE AN INTERNATIONAL CAPITAL OWNERSHIP* Listed on the NYSE Euronext Paris market – floating ~100% An international shareholding structure reflecting the Group’s global footprint Split by region United Kingdom 15% Others 11% Institutional Continental North investors Europe ** A
Slide 47: Investor Relations Contact
FOR MORE INFORMATION: www.teleperformance.com FOLLOW US INVESTOR RELATIONS CONTACT /teleperformanceglobal investor@teleperformance.com @teleperformance +33 1 53 83 59 87 /teleperformance blog.teleperformance.com /company/teleperformance