Teleperformance Se · EURONEXT:TEP
Teleperformance — Teleperformance Ord — H1 2023 Earnings Presentation
25 slides from Teleperformance's earnings presentation, Jul 26, 2023
Slide 1: 2023 First-Half Results
2023 FIRST-HALF RESULTS January 1, 2023 – June 30, 2023 July 26, 2023
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: Agenda: 2023 first-half highlights
01. 2023 first-half highlights 02. 2023 first-half results 03. 2023 outlook 04. Q&A
Slide 4: Key facts and figures: resilient growth in revenue and operating margins
Key facts and figures Resilient growth in revenue and operating margins • Like-for-like revenue growth*: +7.0% • EBITDA margin**: 20.4%, up 30bps vs. H1 22 2022 • EBITA margin**: 14.6%, up 30bps vs. H1 22 2022 Key drivers in an uncertain macro-economic environment • Resilient and diversified client
Slide 5: Key facts and figures: a solid and responsible business model
Key facts and figures A solid and responsible business model • 72 countries have received Great Place to Work® (GPTW®) certifications, up eight countries from 2022, covering 99% of the Group’s employees • 3 agreements with local unions signed in April and May in Colombia, Romania and Poland • Colomb
Slide 6: 2023 first-half results
01. 2023 first-half highlights 02. 2023 first-half results 03. 2023 outlook 04. Q&A
Slide 7: Resilient growth in revenue and operating results
Resilient growth in revenue and operating results €m H1 2023 H1 2022 • Revenue up +0.4% to €3,960 million €/$ exchange rate (6-month average) €1 = US$1.08 €1 = US$1.09 Revenue 3,960 3,946 Reported growth +0.4% • +7.0% like-for-like gain excluding Like-for-like growth* (LFL) +2.2% the impact from Cov
Slide 8: Revenue growth analysis
Revenue growth analysis (€m) +7.0% LFL excl. impact from Covid • +7.0% like-for-like gain excluding the support contracts contribution impact from Covid support contracts 3,946 3,960 (108) +38 +268 • Revenue growth: +2.2% LFL 3,838 (+0.4% as reported) (184) • Highly unfavorable currency effect (-€10
Slide 9: Resilient and diversified client portfolio
Resilient and diversified client portfolio A well diversified client portfolio Addressing the Digital Transformation journey % of FY 2022 revenue by vertical of “disrupted “ and “disruptor” clients, across all verticals: 46% of Group revenue in 2022, vs. Other < 20% in 2013 Business Services Healthc
Slide 10: Revenue by activity
Revenue by activity 2023 2022 Change (%) Core Services & D.I.B.S.: Revenue (€m) Like-for-like* LFL excl. Covid Reported +5.3% LFL* growth excluding H1 Q2 H1 Q2 H1 Q2 H1 Q2 H1 Q2 “Covid contracts” in H1 2023: • Resilient and diversified client Core Services & D.I.B.S. 3,297 1,612 3,412 1,700 -0.2% +0
Slide 11: EBITA by activity
EBITA by activity H1 2023 H1 2022 Recurring EBITA margin rose to 14.6%, from Recurring EBITA (€m) 14.3% in H1 2022: €m Margin €m Margin • Margin maintained in Core Services & Core Services & D.I.B.S. 390 11.8% 398 11.7% D.I.B.S., driven by offshore and despite - North America & APAC 140 11.2% 134 10
Slide 12: Core Services & D.I.B.S. – North America and Asia-Pacific
Core Services & D.I.B.S. – North America and Asia-Pacific • Increase in EBITA margin despite flat revenue, due to steady acceleration of growth in offshore activities • Slow down in Telecoms, Technologies and Retail in North America • Revenue shortfall in Q2 due to new contract delays in US • Asia-P
Slide 13: Core Services & D.I.B.S. – LATAM
Core Services & D.I.B.S. – LATAM • Robust growth in Peru and Colombia • Vibrant growth across the region in the social media and online entertainment sectors, while the financial services vertical continued to expand at a satisfactory pace • Slower growth leading to lower margin in H1 in Mexico, due
Slide 14: Core Services & D.I.B.S. – Europe & MEA (EMEA)
Core Services & D.I.B.S. – Europe & MEA (EMEA) • Strong LFL growth excluding Covid contracts: +10.8% • Sustained growth in the multilingual activities: ramp-up of new contracts in Greece, Egypt and Turkey • Strong growth in the UK (Financial Services and Government) and Germany • Margin impacted by
Slide 15: Specialized Services
Specialized Services • TLScontact: rebound in activity and improvement in margin to above pre-crisis level • Continued sustained growth of LanguageLine Solutions, margin contraction due to the tight US labor market for interpreters in the context of strong client demand Revenue (€m) +17.2% LFL Recur
Slide 16: Operating profitability
Operating profitability €m H1 2023 H1 2022 Change • Increase in non-recurring items, Revenue 3,960 3,946 +0.4% due to non-cash expenses related Change excl. impact from Covid support contracts +7.0% to performance share plans, to EBITA before non-recurring items 577 566 +1.9% (€58) million vs. (€51)
Slide 17: Earnings performance
Earnings performance €m H1 2023 H1 2022 Change • Lower financial result: Operating profit 446 438 +1.8% • Higher net debt due to the acquisition of PSG in late 2022 Financial result (74) (52) • Higher interest rates for the Income tax (101) (112) variable part Effective tax rate 27.3% 29.1% Minority
Slide 18: Cash flow
Cash flow €m H1 2023 H1 2022 • Net free cash flow: €309 million Cash flow* 450 505 • Net capital expenditure of €111 million: Change in working capital (30) (40) • 2.8% of revenue, vs. 3.8% in H1 22 Net capital expenditure (111) (150) • Stronger capital allocation discipline % of revenue 2.8% 3.8% i
Slide 19: Financial position
Financial position 2,609 (309) +52 2,630 • Solid financial structure, largely +278 protected against the increase in rates • S&P credit rating: BBB Investment grade – stable outlook • Average cost of debt: 2.8% • Average maturity of gross debt: 3.1 years • Diversified sources of financing Net debt a
Slide 20: Balance sheet summary
Balance sheet summary €m 06/30/2023 12/31/2022 €1 = US$1.09 €1 = US$1.0.7 Non-current assets 5,829 5,937 o/w intangible assets 4,394 4,522 Working capital* 958 783 Total net assets 6,787 6,720 Equity 3,720 3,672 Provisions and deferred tax liabilities 437 439 Net debt 2,630 2,609 o/w lease liabiliti
Slide 21: 2023 outlook
01. 2023 first-half highlights 02. 2023 first-half results 03. 2023 outlook 04. Q&A
Slide 22: Strong growth outlook for 2023 and adjusted targets
Strong growth outlook for 2023 and adjusted targets • Macro-economic challenges are expected to continue in H2 2023 • LFL revenue growth target excluding Covid contracts: between +6% and +8%* • EBITA** margin target confirmed at 16%, up +50 bps • Majorel acquisition process on track and anti-trust c
Slide 23: Q&A
01. 2023 first-half highlights 02. 2023 first-half results 03. 2023 outlook 04. Q&A
Slide 24: Q&A
inspired to be The bes | 7 Teleperformance Q&A
Slide 25: Teleperformance contact and social links
teleperformance.com teleperformanceblog.com /company/teleperformance @teleperformance_group /teleperformanceglobal /teleperformance @teleperformance