Slide 1: Investor Presentation June 2013
Investor Presentation June 2013
Slide 2: Summary
SUMMARY GROUP OVERVIEW AND KEY FIGURES STRATEGY AND OUTLOOK APPENDICES 2
Slide 3: Group Overview and Key Figures
GROUP OVERVIEW AND KEY FIGURES
Slide 4: Teleperformance at a Glance
TELEPEFORMANCE AT A GLANCE THE WORLDWIDE LEADER IN THE VOICE BPO* MARKET Founded in 1978 Revenues in 2012 of € 2.3 B 138,000 Employees 100,000+ Workstations Operations in 46 countries Countries where we operate Countries served but no operations Teleperformance, the world’s leading provider of outso
Slide 5: A Worldwide Footprint
TELEPEFORMANCE AT A GLANCE A WORLDWIDE FOOTPRINT Country Employees 138,000 (2012) 1 PHILIPPINES 16,176 employees 2 BRAZIL 15,960 worldwide c.50% 3 MEXICO 15,235 4 UNITED STATES 15,092 5 UNITED KINGDOM 8,348 6 COLOMBIA 7,984 7 TUNISIA 5,355 8 FRANCE 4,674 9 INDIA 4,582 10 ARGENTINA 4,253 5
Slide 6: Teleperformance Mission
TELEPERFORMANCE MISSION THE "OIL" IN THE 21st CENTURY ECONOMIC ENGINE The Mission « People interacting with people, helping them to solve their day to day issues » «The Oil» in the 21st Century Economic Engine Quality Business Security Value Reliability Business Profile Managing People C
Slide 7: Highlights 2012
HIGHLIGHTS 2012 HIGH PERFORMANCE Strong set of results Like for like growth in revenue: 6.9% EBITA before non-recurring items, up 18.3 % EBITA Margin: 9.1% Earning per share: €2.27, up 39.3% Revenue (€M) Recurring EBITA (€M) Diluted EPS (€) 2400,0 1.0 3€ 50 250 2.27 2,347 2350,0 0.9 45 214
Slide 8: Highlights 2012: Solid Business Momentum in Every Region
HIGHLIGHTS 2012 SOLID BUSINESS MOMENTUM IN EVERY REGION Change in revenue by region in 2012 vs 2011 Revenue mix (2012) €M 1000 910 900 820 800 738 679 699 Ibero- 700 628 LATAM EWAP 600 31% 39% 500 400 300 200 CEMEA 100 29% 0 CEMEA ibérico-LATAM EWAP Sustained demand and high resilience in English-
Slide 9: Q1 2013 Revenue
Q1 2013 REVENUE CONFIRMATION OF THE TREND EXPERIENCED IN 2012 Change €M Q1 2013 Q1 2012 Reported like-for-like Total Revenue 592.0 541.8 + 9.3 % + 11.5 % English-speaking & Asia-Pacific 230.6 208.1 + 10.8 % + 12.1 % Ibero-LATAM 191.9 168.0 + 14.2 % + 20.1 % Continental Europe & MEA 169.5 165.7 + 2.3
Slide 10: Strategy and Outlook
STRATEGY AND OUTLOOK © Teleperformance
Slide 11: Teleperformance Vision
TELEPERFORMANCE VISION GROWTH AND STRATEGIC MOVES Vision of the market : growth and vendor consolidation 2011-2016 market forecasts: CAGR > 5 % Be at the forefront of the mobile revolution Win the vendor consolidation thanks to Group client’s centric culture TELEPERFORMANCE : differentiate
Slide 12: A Growing Market
A GROWING MARKET BUSINESS ANALYSTS BULLISH ABOUT THE NEXT FOUR YEARS 2011-2016 market forecasts: CAGR > 5 % Outsourcing CRM market (2011-2016) Only 25% of the potential market is 60 US$bn 57 outsourced Growing trend toward 48 50 53 45 outsourcing as: CAGR Companies need cost optimization whi
Slide 13: A Growing Market: The Mobile Revolution by 2016
A GROWING MARKET THE MOBILE REVOLUTION BY 2016 In the developed world, >75% of GDP comes from services The Mobile Revolution transforms services and many knowledge products into portable software with all the needed related support Entertainment : books, music, photos, games, videos, informati
Slide 14: Teleperformance Leadership Assets: Worldwide Integrated Network
TELEPERFORMANCE LEADERSHIP ASSETS A WORLDWIDE INTEGRATED NETWORK A UNIQUE OFFERING OF SOLUTIONS Only player in the industry able to offer worldwide integrated Domestic, Nearshore & Offshore solutions High-performance technology: 1400 IT specialists, including 400 developers, and c.500 millions o
Slide 15: Leadership Assets: Strong and Diversified Client Base
TELEPERFORMANCE LEADERSHIP ASSETS A STRONG AND DIVERSIFIED CLIENT BASE Loyal and strong client base Top 20 representing 50% of sales Serving a wide diversity of industries Average seniority of client relationship: 12 years Top clients as a % of revenue Share of revenue by sector (2012) Top 1
Slide 16: Leadership Assets: Strong Recognition in the Market
TELEPERFORMANCE LEADERSHIP ASSETS STRONG RECOGNITION IN THE MARKET AT A GLANCE 52 Total Major Awards Earned from 2005 to present, including awards for operational excellence, social responsibility, and work environment and culture 22 Frost & Sullivan Awards in the last six years 1st Contact Ce
Slide 17: Leadership Assets: People Strategy and Processes
TELEPERFORMANCE LEADERSHIP ASSETS PEOPLE STRATEGY AND PROCESSES People strategy: a key differentiated asset With 138,000 people, one of the world’s 150 biggest employers “Happy employees making happy customers making happy clients” Respect as a group key value: “I treat the others with kindn
Slide 18: Leadership Assets: Premium Premises Policy
TELEPERFORMANCE LEADERSHIP ASSETS PREMIUM PREMISSES POLICY Campus concept Privileged and strategic work locations Focused on the life quality of our employees Attractive, comfortable and ergonomic architecture and workplaces Leed certifications, relaxing rooms, gym and self education e-lea
Slide 19: The Multilingual Hub Solution
THE MULTILINGUAL HUB SOLUTION A KEY DIFFERENTIATING SOLUTION FOR THE CEMEA MARKET Coping with the complexity of multi-subsidiary projects through a full coverage of all the European markets with a limited number of centers Strong Multilingual Hub Network : 5 countries Portugal , Greece , Egypt ,
Slide 20: A Reinforced Governance
A REINFORCED GOVERNANCE STARTING IN JUNE 2013 Respecting the engagement to separate Chairman and CEO offices Reinforcing the Management of the company by: smoothly transitioning executive leadership to a younger generation, …while continuing to benefit from the experience and knowhow of the
Slide 21: 2013 Outlook
2013 OUTLOOK GUIDANCE RECENTLY CONFIRMED Organic Growth Like-for-like growth in revenue : between 3 and 5% Improvement of the EBITA margin Recurring EBITA margin of between 9.3% and 9.5% Continuing improvement of the ROCE Guidance may be reviewed when H1 2013 results are released 21
Slide 22: ROCE Long Term Objective
ROCE LONG TERM OBJECTIVE VALUE CREATING STRATEGY Increase in Return on Capital Employed by the next 3 years in % 15 14 13 > 12.5% by 2015 Drivers 12 11.3% 11 Growth in revenue 10 9.1% 8.8% Increase in EBITA margin 9 8 Tight control over capex 7 Selective M&A strategy 6 5 2010 2011 2012 22
Slide 23: Appendices
APPENDICES
Slide 24: 2012 Revenue Analysis
2012 REVENUE ANALYSIS A GLOBAL INDUSTRY LEADER Revenue contribution by Revenue contribution by type of contact (2012) type of service (2012) FACE TO FACE, EMAIL, CHAT ACQUISITIONS OTHER OUTBOUND OTHER 2% 2% SERVICES DEBT 4% 9% 12% COLLECTION 5% CUSTOMER SERVICE 57 % 25% 84% TECHNICAL INBOUND SUPPORT
Slide 25: Positioning – Global Leadership
POSITIONING– GLOBAL LEADERSHIP COMPETITIVE LANDSCAPE Teleperformance, Nr 1 worldwide in the outsourced voice BPO market in 2012 Ranking by number of countries Ranking by revenue in US$M (2012) of implementation (2012) (€ M) 3500 # Competitors Countries 3,028 3000 1 Teleperformance 46 2,432* 2500 2
Slide 26: Positioning: Innovative Social Media Offering
POSITIONING : PROPOSING INNOVATIVE SOCIAL MEDIA OFFERING E-PERFORMANCE: DIGITAL SOLUTIONS E-Performance: digital solution including monitoring, in-depth analysis and advocacy of social media The E-Performance Hub in Portugal (example) Servicing 7 languages (English, French, German, Italian, Sp
Slide 27: Positioning: Promoting Premium Offering
POSITIONING : PROMOTING PREMIUM OFFERING TP PLATINUM : THE TP FIRST CLASS SOLUTION Premium solution adopted by companies developing a segmentation strategy in order to secure their most valuable customer base Targeting all the regions and already offering the solution in North and South America
Slide 28: 2012 Results: Key Figures
2012 RESULTS KEY FIGURES Actuals above Group target €M 2012 2011 Change € 1 = 1.29US$ € 1 = 1.39 US$ Revenue 2,347.1 2,126.2 + 10.4 % Organic growth + 6.9 % EBITDA before non-recurring items* 306.2 268.4 + 14.1% % Revenue 13.0 % 12.6% EBITA before non-recurring items* 213.9 180.8 + 18.3% % Revenue
Slide 29: 2012 Results: Revenue Growth
2012 RESULTS REVENUE GROWTH Organic growth : + 6.9 % Significant currency effect + € 151.2 M €2,347.1 M + €71.9 M €2,195.9 M 2012 €2,126.2 M - €2.2 M Organic growth 2012 Currency effect Like-for-like 2011 Scope effect 29
Slide 30: 2012 Results: Revenue by Region
2012 RESULTS REVENUE BY REGION Robust growth in Ibero-LATAM region Change €M 2012 2011 Reported Like-for-like Total 2,347.1 2,126.2 + 10.4 % + 6.9 % English-speaking market 910.4 819.6 + 11.1 % + 3.2 % & Asia Pacific Ibero-LATAM 737.6 628.1 + 17.4 % + 16.5 % Continental Europe & MEA 699.1 678.5 +
Slide 31: 2012 Results: Operating Performance
2012 RESULTS OPERATING PERFORMANCE Sharp increase in operating profit margins €M 2012 2011 Change Revenue 2,347.1 2,162.2 + 10.4% EBITA before non-recurring items 213.9 180.8 + 18.3% % Revenue 9.1 % 8.5% Non-recurring items - 11.8 - 19.2 - Restructuring operations* - 2.0 - 12.3 - Other** - 9.8 - 6
Slide 32: 2012 Results: EBITA by Region
2012 RESULTS EBITA BY REGION – EXCL. HOLDING COMPANIES Increase in operating margins in all regions By region – as a % revenue 2012 2011 EBITA before non-recurring items - Total 9.1 % 8.5% English-speaking market and Asia Pacific 11.3 % 10.3% Ibero-LATAM 12.6 % 11.1% Continental Europe & MEA* 0.6
Slide 33: 2012 Results: Earnings Performance
2012 RESULTS EARNINGS PERFORMANCE Attributable net profit up 39 % €M 2012 2011 Change Net operating profit 193.2 152.3 + 26.9% Net financial income - 7.3 - 5.6 Income tax 56.5 - 51.7 Effective tax rate 30.4% 35.2% Minority interests -1.9 * - 3.1 Net profit – attributable to shareholders 127.5 91.9
Slide 34: 2012 Results: Cash Flow
2012 RESULTS CASH FLOW Tight cash flow management €M 2012 2011 Change Cash flow before non-recurring items 296.1 256.9 + 15.3% and taxes Income tax paid - 57.2 - 58.2 Change in working capital - 26.0 32.6 Restructuring cash out - 10.0 - 47.7 Net capital expenditure - 108.4 - 95.5 Net free cash flo
Slide 35: 2012 Results: Financial Structure
2012 RESULTS FINANCIAL STRUCTURE Strong financial structure €M 2012 2011 Net free cash flow 94.5 88.2 Minority interest buyout 0.0 - 14.0 Share buyback - 0.3 - 18.0 Dividend - 25.5 - 18.9 Other (conversion rate…) - 13.8 - 13.3 Increase in net cash 54.9 24.0 12/31/2012 12/31/2011 € 1 = 1.32US$ € 1
Slide 36: 2012 Results: Dividend
2012 RESULTS DIVIDEND Increase in the pay out ratio In € 0,80 Payde taux out ratio distribution 0.68* 34% 0,70 0,60 32% 0,50 0.46 30% 0,40 0.33 30% 0,30 28% 0,20 28% 26% 0,10 26% 0,00 24% 2010 2011 2012 in € 2012 2011 2010 Diluted EPS 2.27 1.63 1.27 * as proposed in the Shareholders’ General Meeti
Slide 37: Capital Ownership
CAPITAL OWNERSHIP AS OF 2013, MARCH 31 An international shareholding structure United Kingdom 11% Continental Europe* North America 25% 39% 83% 17% France 25% Institutional investors Others Split by region Others include : % Capital * Excluding France Daniel Julien 1,2% Treasury shares 2,1% Retail
Slide 38: Investor Relations Contact
INVESTOR RELATIONS CONTACT investor@teleperformance.com +33 1 53 83 59 87 www.teleperformance.com