Slide 1: 2021 Annual Results Investors Presentation
2021 Annual Results Investors Presentation February 17, 2022
Slide 2: Forward-looking statements
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 o
Slide 3: Agenda
01. FY 2021 key figures & highlights 02. 2022-2025 objectives and strategy 03. FY 2021 results 04. FY 2022 outlook
Slide 4: 01. FY 2021 key figures & highlights
01. FY 2021 key figures & highlights
Slide 5: #1 global outsourcing leader for customer and citizen experience
# 1 global outsourcing leader for customer and citizen experience 420k ~70% Working People from home From In 88 265+ countries languages Serving customers and citizens on behalf of brands and governments respectively For In 1000+ 170+ Clients* markets * For Core Services & D.I.B.S activities; > 30,
Slide 6: Key financials: new growth records
Key financials: new growth records • One year ahead of the 2017-2022 plan: revenue > €7 billion in 2021. Record • Like-for-like growth of +25.7% mainly driven by sustained acceleration in market growth digitalization – revenue generated with digital clients up to nearly 50% in 2021 • Active and targ
Slide 7: Key highlights: acquisitive and responsible growth
FY 2021 key figures & highlights Key highlights: acquisitive and responsible growth Ongoing strong commitment to Two acquisitions in the US employees, diversity & environment • Health Advocate: helping Americans to • Net creation of 30,000 jobs* during the year navigate the complexity of the US heal
Slide 8: Teleperformance named one of the World's Best Workplaces by Fortune
Teleperformance named one of the 25 World's Best WorkplacesTM by Fortune • A very selective ranking: The Great Place to Work® Institute, the Teleperformance was included in the global reference for well-being at work, world’s Top 25 out of 10,000 other awards the world’s only independent companies c
Slide 9: Everest PEAK Matrix 2021 assessment
Everest PEAK Matrix 2021® assessment of customer experience management companies Everest Group distinguished Teleperformance as a Leader in the industry
Slide 10: 02. 2022-2025 objectives and strategy
02. 2022-2025 objectives and strategy
Slide 11: 2025 Financial Objectives: Revenue above €10 billion
In an exponentially transformative environment, Teleperformance maintains and expands its global # 1 leadership in outsourced customer and citizen experience management & related business services, thanks to: A unique global Agressive investments in The development of range of services digital trans
Slide 12: Teleperformance high-touch, high-tech (1)
Teleperformance high-touch, high-tech (1) High-touch: “Enthusiastic people helping people” • Emotional intelligence & empathy: selection, training and coaching • Management “with a purpose”: reach the maximum potential • TP Academy & TP University: professionalization • Leading with TP values: Integ
Slide 13: Teleperformance high-touch, high-tech (2)
Teleperformance high-touch, high-tech (2) High-tech: “Enhanced by technology” • Hybrid cloud-based network, including “TP Cloud Campus” • Omnichannel integrated solutions • A.I. & digital integration • Analytics on big data online • Lean Six Sigma process engineering • Best-in-class information secu
Slide 14: Teleperformance high-touch, high-tech (3)
Teleperformance high-touch, high-tech (3) Teleperformance high-touch, high-tech to deliver an outstanding quality of service Measured by: • Clients’ seniority: loyalty • Group’s stack ranking: performance • Clients’ Net Promoter Score: satisfaction • Group’s shares of wallet evolution: penetration A
Slide 15: Teleperformance priorities
Teleperformance priorities Verticalization Additional new One-stop shopping Complementary by client sectors lines of services offering: acquisitions of (specialization) linked to “successful based on transformational Operating consulting companies” in expertise, trends in customer terms of growth so
Slide 16: Specific, quantified and ambitious objectives for CSR commitments
Specific, quantified and ambitious objectives for Teleperformance CSR commitments Commitments Objectives Be a preferred employer Maintaining >90% of total employees in the market working in a TP subsidiary certified GPTW® Promote diversity, gender Maintaining/improving gender equality & inclusion (D
Slide 17: 03. FY 2021 results
? Teleperformance each interaction matters 03. FY 2021 results ee SiqaPe eee
Slide 18: P&L summary
P&L summary €m FY 2021 FY 2020 Change €/$ exchange rate (12-month average) €1 = US$1.18 €1 = US$1.14 Revenue 7,115 5,732 +24.1% Record growth and profitability Like-for-like growth* (LFL) +25.7% • Sustained like-for-like (LFL) growth LFL excl. impact from Covid support contracts +16.5% for the full
Slide 19: Revenue growth analysis
Revenue growth analysis (€m) +25.7% LFL • Revenue growth: +25.7% LFL +64 7,115 (+24.1% as reported) +515 +927 5,732 • +16.5% like-for-like gain in 2021, (123) 5,609 excluding impact from Covid support contracts +16.5% LFL • Unfavorable currency effect: decline excl. impact from Covid against the eur
Slide 20: Revenue growth analysis (quarterly)
Revenue growth analysis • 2020-2021 CAGR restated LFL growth: 2020 +12% 2021 +12% (2020-2021 CAGR LFLgrowth excl. Covid lines) • Sharp revenue gain far exceeded a simple return to pre-crisis growth 40% 36% 38% trends: restated growth acceleration Strong quarterly phasing effect vs. pre-crisis growth
Slide 21: Revenue by activity
Revenue by activity 2021 2020* Change (%) Core Services & D.I.B.S.: +26.5% LFL Revenue (€m) Like-for-like** (LFL) Reported growth in 2021 FY Q4 FY Q4 FY Q4 FY Q4 • Well above market growth Core Services & D.I.B.S. 6,295 1,691 5,080 1,471 +26.5% +13.1% +23.9% +15.0% • Sustained strong sales momentum
Slide 22: EBITA by activity: margin up in all activity and regions
EBITA by activity: margin up in all activity and regions FY 2021 FY 2020 • Recurring EBITA margin rose to 15.1%, Recurring EBITA (€ m) €m Margin €m Margin from 12.8% in FY 2021, far above the pre-crisis margin (14.3% in FY 2019) Core Services & D.I.B.S. 824 13.1% 561 11.0% • Powerful operating lever
Slide 23: Core Services & D.I.B.S. – EWAP
Core Services & D.I.B.S. – English-speaking market & Asia-Pacific (EWAP) • Sustained LFL growth in the North American market, with a gradual acceleration throughout the year • Strong growth in the UK, supported notably by the contribution from Covid support contracts • In Asia-Pacific, strong activi
Slide 24: Core Services & D.I.B.S. – Ibero-LATAM
Core Services & D.I.B.S. – Ibero-LATAM • Quick expansion in the region, supported by strong commercial momentum with e-clients • Slower growth in H2 as expected, due to high comps • Best top-line performers: Colombia, Peru, nearshore operations, Argentina and Portugal (multilingual hub) • Margin gai
Slide 25: Core Services & D.I.B.S. – CEMEA
Core Services & D.I.B.S. – Continental Europe & MEA (CEMEA) • +40.9% like-for-like growth in 2021 • Slower growth in Q4 sequentially as expected, due to very high comps • Fast expansion with multinational clients, particularly in the e-tailing, logistics and consumer goods industries • Decrease in c
Slide 26: Core Services & D.I.B.S. – India
Core Services & D.I.B.S. – India • Profitable and selective growth through the development of high value-added services • Margin improvement mainly attributable to sustained growth and favorable comps in H1 and the completion of the program to terminate lower margin contracts in late 2020 Revenue (€
Slide 27: Specialized Services
Specialized Services • Languageline Solutions: sustained growth in revenue and resilient high margin; favorable shift in its business mix with the rapid uptake of its video solutions • TLScontact: gradual recovery in revenue along the year supported by favorable comps and better momentum of internat
Slide 28: Operating profitability
Operating profitability €m 2021 2020 Change • Increase in non-recurring items, due to increase in non-cash expenses related Revenue 7,115 5,732 +24.1% to performance share plan, to (€87) EBITA before non-recurring items 1,071 735 +45.7% million vs. (€37) million in 2020 % of revenue revenue 15.1% 12
Slide 29: Earnings performance
Earnings performance €m 2021 2020 Change • Decrease in financial result excluding non- recurring (€11 million) charge due to Operating profit 869 555 +56.6% prepayment of a USPP Financial result (94) (88) • Effective tax rate: 28.1%, vs. 30.6% in 2020 Income tax (218) (143) (higher rate in 2020 owin
Slide 30: Cash flow
Cash flow €m 2021 2020 • Net free cash flow: €661 million, up +35.7% Cash flow* 965 727 • Capex ratio: 3.2% of revenue vs. 4.4% in 2020 Change in working capital (75) 14 • Extensive work-at-home deployment Net capital expenditure (229) (254) • Limited capex in new facilities: < 5,000 % of revenue re
Slide 31: Balance sheet summary
Balance sheet summary €m 12/31/2021 12/31/2020 €1 = US$1.13 €1 = US$1.23 Non-current assets 5,524 4,344 o/w intangible assets 4,181 3,057 Working capital* 701 668 Total net assets 6,225 5,012 Equity 3,157 2,409 Provisions and deferred tax liabilities 412 329 Net debt 2,656 2,274 o/w lease liabilitie
Slide 32: Financial position
Financial position +141 (21) 2,656 • Solid financial structure +923 2,274 (661) • Financing for Health Advocate and Senture acquisitions: €929 million • Increase in net debt limited to €382 million compared with end of 2020 • Net debt to EBITDA ratio still < x2 Net debt as of Net free cash Financial
Slide 33: Strong and diversified financing
Strong and diversified financing Diversification sources as of December 31, 2021 Commercial Revolving Credit Facility papers 10% 6% Bank term loans 10% • Average cost of gross debt: 1.3%, vs. 1.4% in 2020 USPPs EUR bonds 8% 66% • Average maturity of gross debt: 3.4 years • Diversified sources • Well
Slide 34: Dividend
Dividend 3.50 3.30* 100% 90% 3.00 80% 2.50 2.40 2.40 70% • Dividend per share of €3.30*, up 2.00 1.85 1.90 60% 50% +37.5% vs. 2020 1.50 35% 35% 1.20 1.30 40% 30% 26% 28% 0.92 36% 35% 43% 35%30% 1.00 0.80 35% 35% 35% 0.68 20% • Pay-out ratio of 35% 0.50 0.33 0.46 10% 0.00 0% 2010 2011 2012 2013 2014
Slide 35: 04. FY 2022 outlook
? Teleperformance 04. FY 2022 outlook
Slide 36: Full-year targets
Full-year targets ▪ Double digit recurring* like-for-like revenue growth: above +10% ▪ Decrease in contribution from Covid support contracts ▪ Like-for-like revenue growth (including decrease in contribution from Covid support contracts): above +5% ▪ A 30 basis-point increase in EBITA margin ▪ Furth
Slide 37: Appendices
? Teleperformance each interaction matters ‘APPENDICES
Slide 38: Over 40 years at the forefront of customer experience and business services outsourcing
Over 40 years at the forefront of customer experience and business services outsourcing 2020 Transition of over 200k active 2021 employees to work-at-home in response to COVID-19 2012 Full control 2021 Acquisition of 2008 of Health Advocate Acquisition of TLSContact 1998-2002 The Answer (UK) 2018 St
Slide 39: Creating value: a proven financial track record (2012-2021)
Creating value: a proven financial track record (2012-2021) > €10bn in 2025 15.1% 16% in 2025 25.7% 800 14.3% 10 000 25% 700 13.3% 13.6% 15% 8 000 600 20% 11.2% 13% 500 10.3% 6 000 15% 9.1% 9.3%9.7% 12.8% 11% +9.9% 7,115 400 +7.5% 4 000 2,347 10% 300 9% +10.6%+11.6% 200 2 000 5% 100 7% +6.9% +7.9% +
Slide 40: A one-stop-shop offering based on digitalized and integrated services
A one-stop-shop offering based on digitalized and integrated services Customer Voice Experience • Customer/Citizen Care • Technical Support • Sales • Accounts Receivable • Interpretation on line • Operations consulting that ranges from customer • Industry specific services Digital experience design
Slide 41: Teleperformance priorities: verticalization and digitalization
Strengthening verticalization & digitalization in key client sectors organically and with acquisitions % revenue by vertical in 2021 % revenue* generation with the New economy brands (2013-2021) Other 47% 11% Governments Energy 14% <20% 3% Travel & Financial Services 2013 2021 Hospitality 12% 8% Ret
Slide 42: Technology, Analytics and Process (T.A.P): driving transformation
Technology, Analytics and Process (T.A.P™): driving external & internal transformation Blending proprietary and best-in-class digital solutions with industry domain expertise Technology ● High Tech Solutions such as RPA & AI, Knowledge Services & T.A.P.™ Experts Chatbots, Omni-channel CX ● Solutions
Slide 43: Case study: integrated omnichannel solution, automated order cancellation
Case study: integrated omnichannel solution in partnership with tech experts - Automated Order Cancellation solution for a leading retailer in Europe 1 Min/ Trans Chat Bot captures Customer Calls Call Deflects to START Phone Support (IVR) WhatsApp key details for Order Cancellation request 2-5 Min/
Slide 44: Adopting NIST standards to reinforce cybersecurity
Adopting NIST* standards to continually reinforce cybersecurity People: extensive cyber security training across TP to build a genuine corporate culture • Extensive cybersecurity training • Dedicated security organization • C-level Security Governance Process: security by design, audits, and white h
Slide 45: Smart shoring: a unique offering of worldwide broad sourcing mix
Smart shoring: a unique offering of worldwide broad sourcing mix • Network of 36 offshore/nearshore locations around the world Increasing share of nearshore & offshore 52% 65% +13 ppt 48% 35% 2010 2021 % of nearshore & offshore revenue % of domestic revenue * in Core Services & D.I.B.S. activities “
Slide 46: Sustainability of work-from-home with TP Cloud Campus
Sustainability of work-from-home with the integrated cloud solution TP Cloud Campus Teleperformance Cloud Campus was carefully designed to deliver a rich, engaging, and social environment by keeping remote teams connected via centralized, secure, and integrated operations Centralized Command Centers
Slide 47: A complete platform helping Americans navigate the US healthcare system
A complete platform helping Americans navigate the complexity of the US healthcare system • Health Advocate is a leading consumer-focused health platform for the employer market, utilizing human-touch, data-driven health insights, and technology to simplify and personalize the healthcare experience
Slide 48: Leading consumer health platform of unmatched scale
Leading consumer health platform of unmatched scale • 700 health advocates that are specialists in the complex US healthcare system • 12,000 clients, ow. 20% of Fortune 500 companies • 27m+ consumers covered • Annual revenue of US$140m and EBITDA margin of 36%, with strong momentum • Consistent grow
Slide 49: A major BPO operator for public services in the United States
A major BPO** operator for public services (Federal, State and Local) in the United States ▪ Providing fundamental support that is paramount for a citizen-first experience ▪ Focused on public services in the Unites States ▪ Citizen services market worth US$7bn annually Public services Commercial hea
Slide 50: Key figures
Key figures ▪ Established in 2003; based in London, Kentucky, United States ▪ 4,500 full-time employees, of which 85% working from home ▪ Nearly 50 contracts ▪ Annual revenue: $192m (2021E) ▪ EBITDA margin at 19% and adj. EBITA margin at 16% (2021E) 2021E revenue breakdown by end-markets 2021E reven
Slide 51: #1 WW in a growing CX core market still poorly outsourced
#1 WW in a growing CX core market still poorly outsourced • Outsourced CX management global market worth $92-94bn in 2021E*, up ~ +3% CAGR since 2019, vs -1% for in-house • Outsourcing rate of 28% in 2021E, benefiting from increasingly complex clients needs • Growth expected to accelerate in 2022E t
Slide 52: #1 WW in a growing CX core market still poorly outsourced (channels)
#1 WW in a growing CX core market still poorly outsourced • Market still dominated by voice interactions, but share is declining • Faster growth of non-voice channels, usually seen as more user-friendly particularly by younger generation Breakdown of outsourced CX market by Digital solutions share o
Slide 53: Broader competitive environment (1/2)
Teleperformance’s transformation is leading to a broader competitive environment (1/2) • Worldwide leader in the outsourced CX market with a unique global diversified positioning • Group’s transformation leads to enlarged addressable market: the worldwide business process management market Top 10 ma
Slide 54: Broader competitive environment (2/2)
Teleperformance’s transformation is leading to a broader competitive environment (2/2) • Enlarged competitive environment reflects growing complexity and increasingly integrated demand from the clients Direct competitors (CCO)* ITO/BPO companies** Consulting Firms Atento Cognizant Accenture Concentr
Slide 55: An international, tight and aligned top management team
An international, tight and aligned top management team Executive committee Daniel Julien Chairman and CEO Bhupender Singh Eric Dupuy Miranda Collard Agustin Grisanti Scott Klein Olivier Rigaudy Leigh Ryan Chief Chief Business Chief ClientOfficer Chief Operating Presidentof DeputyCEO andCFO Chief Le
Slide 56: Alternative performance measures definitions
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. EBITDA before non-recurring items (
Slide 57: Teleperformance – each interaction matters
7 Teleperformance each interaction matters