Slide 1: Investor Presentation June 2015
INVESTOR PRESENTATION June 2015
Slide 2: Disclaimer
DISCLAIMER 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 from those described in the forward- looking statements. For a detailed des
Slide 3: Agenda
AGENDA Group Overview Growth Strategy Q1 2015 revenue and 2015 Outlook Appendices 3
Slide 4: Group Overview
€) _Teleperformance GROUP OVERVIEW
Slide 5: Teleperformance Today
TELEPERFORMANCE TODAY THE WORLDWIDE LEADER IN OUTSOURCED MULTICHANNEL CUSTOMER EXPERIENCE Founded in Worldwide leader 1978 with 2014 revenue of €2.8bn 182,000 135,000 Employees Workstations Operations in Serving 62 countries 160+ Markets RECENT DEVELOPMENTS: Expanded worldwide footprint: 16 new co
Slide 6: Teleperformance Mission and Challenges
TELEPERFORMANCE MISSION AND CHALLENGES FACING GREAT OPPORTUNITIES AND KEY CHALLENGES Exceptional volume growth in one-to-one distance communications “all over the world, all around the clock” to help people to address their day-to-day issues TELEPERFORMANCE DIFFERENTIATING POWER Managing People TH
Slide 7: Teleperformance: A Growth Story
TELEPERFORMANCE: A GROWTH STORY A CONTINUING GROWTH STORY THROUGH INTERNAL EXPANSION AND ACQUISITIONS WITH A DISCIPLINED APPROACH TO BALANCE SHEET MANAGEMENT Founded in 1978 1978 in France 3 000 Acquisition of Multichannel Aegis USA Inc. 3,0 Becogent & offer and acquisition 1986 First listed on the
Slide 8: A Strong Mix (1)
A STRONG MIX (1) A FULL RANGE OF SERVICES Serving companies around the world by managing with the highest efficiency their customer care, technical support, customer acquisition, debt collection, social media, analytics and BPO non-interaction solutions. 2014 revenue 2014 revenue Face-To-Face, by
Slide 9: A Strong Mix (2)
A STRONG MIX (2) STRENGTHENING OF THE GROUP GEOGRAPHICAL AND SOURCING MIX The English-speaking market & Asia-Pacific (EWAP) region should represent around 50% of total revenue in 2015 Group offshore base enhanced by Aegis USA Inc. acquisition in 2014 (60% of Aegis USA Inc. revenue is offshored i
Slide 10: A Strong Mix (3)
A STRONG MIX (3) A STRONG, DIVERSIFIED CLIENT BASE Concentration of the client portfolio has decreased Client portfolio concentration % of revenue • Increasingly diverse client base to more (2007-2014) than 750 clients vs 700 clients in 2013 40% 35% • Average tenure of client relationship 30% (TOP
Slide 11: A Strong Mix (4)
A STRONG MIX (4) VERTICAL DIVERSITY Ongoing increased diversity by vertical Revenue by vertical (2012-2014) 40% • Teleperformance benefits from the 35% 29% largest and the most diversified 30% client base in the industry 25% 49% 60% 20% 11% 13% 15% 10% 11% • Non-Telco/Pay TV sectors have risen 10%
Slide 12: Teleperformance Leadership Assets
TELEPERFORMANCE LEADERSHIP ASSETS A GROWING WORKFORCE IN KEY REGIONS Country Employees Employees 2014 2011 1 THE PHILIPPINES 40,080 13,878 2 UNITED STATES 26,021 15,351 ≈ 53% of the total 3 MEXICO 15,972 12,480 4 BRAZIL 15,230 12,047 5 COLOMBIA 9,423 7,256 6 UNITED KINGDOM 8,292 6,835 7 TUNISIA 5,16
Slide 13: Teleperformance Leadership Assets
TELEPERFORMANCE LEADERSHIP ASSETS 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 13
Slide 14: Growth Strategy
GROWTH STRATEGY
Slide 15: Market Environment (1)
MARKET ENVIRONMENT (1) A GROWING MARKET Market growth is expected to reach + 5/6% per annum until 2018 (source IDC) Outsourcing rate rising, in particular with increased penetration in new verticals (Healthcare and Insurance for example) Worldwide outsourced Customer Penetration rate (%) Interac
Slide 16: Market Environment (2)
MARKET ENVIRONMENT (2) TELEPERFORMANCE, THE WORLDWIDE LEADER Still fragmented markets, with top five players representing 22% of the market Teleperformance has 7% of the outsourced market Teleperformance has a global footprint while most competitors are local players Current concentration tr
Slide 17: Growth Strategy: The Power to Differentiate
GROWTH STRATEGY THE POWER TO DIFFERENTIATE Developing 3 STRATEGIC first in North Developing Diversifying mix multichannel OBJECTIVES America and through new other high /omnichannel verticals potential markets solutions SUPPORTED BY Leadership 3 STRATEGIC “Vertical Client and assets to TOOLS expertis
Slide 18: Strategy in Action - Update on Aegis USA Inc.
STRATEGY IN ACTION - UPDATE ON AEGIS USA Inc. INTEGRATION AND SYNERGIES Integration globally achieved • Agents • Sales teams • Infrastructures Expecting commercial synergies • In key verticals: Healthcare – BFSI* - Travel • Proximity - relationship • Expertise - processes • Geographical cross-fe
Slide 19: Q1 2015 Revenue and 2015 Outlook
Q1 2015 REVENUE AND 2015 OUTLOOK
Slide 20: Q1 2015 Revenue
Q1 2015 REVENUE SOLID GROWTH Business momentum continuing to be strong Q1 2015 revenue: + 36.3% as reported and + 10.0% like-for-like Change € millions Q1 2015 Q1 2014 Reported Like-for-like € 1 = US$1.13 € 1 = US$1.37 Revenue 831 610 + 36.3% + 10.0% 20
Slide 21: Q1 2015 Revenue Growth Analysis
Q1 2015 REVENUE REVENUE GROWTH ANALYSIS IN Q1 2015 Q1 like-for-like growth: + 10.0% Impact of Aegis USA Inc. acquisition in August 2014 Impact of the increase in the US dollar against the euro + 10.0% lfl + 99* 831 € millions + 66 + 56 666 610 Q1 2014 Currency effect Q1 2014 Like-for-like grow
Slide 22: Sustained Growth in All Group Regions (1)
Q1 2015 REVENUE SUSTAINED GROWTH IN ALL GROUP REGIONS (1) Revenue by region in Q1 2015 vs. Q1 2014 English-speaking market & Asia-Pacific (EWAP) (€ millions) • Impact of Aegis USA Inc. acquisition in August 416 2014 and the increase in the US dollar against the euro on Group reported growth (+ 70%
Slide 23: Sustained Growth in All Group Regions (2)
Q1 2015 REVENUE SUSTAINED GROWTH IN ALL GROUP REGIONS (2) Strong geographical mix The EWAP region now accounts for 50% of revenue, primarily due to Aegis USA Inc. acquisition Q1 2014 revenue by region Q1 2015 revenue by region Ibero-LATAM EWAP Ibero-LATAM EWAP 29% 40% 25% 50% CEMEA CEMEA 30% 25%
Slide 24: 2015 Outlook
2015 OUTLOOK ANNUAL OBJECTIVES MAINTAINED AFTER ANALYZING THE DYNAMICS OF GROUP ENTIRE CLIENT PORTFOLIO Organic growth expected to remain strong in Q2 2015, albeit at a slower pace than in Q1 2015 Annual organic growth objective • Like-for-like revenue growth at least + 7% (outpacing the market
Slide 25: Appendices
®) Teleperformance
Slide 26: List of Appendices
A WELL RECOGNIZED COMPANY 27-28 TELEPERFORMANCE VISION: MULTICHANNEL 29 ACHIEVING TELEPERFORMANCE MISSION 30-32 TELEPERFORMANCE PROCESSES 30 PEOPLE STRATEGY 31-32 TELEPERFORMANCE DIFFERENTIATING POWER 33-41 VERTICAL EXPERTISE: CX LAB 33 E-PERFORMANCE 34 TELEPERFORMANCE CLIENT 35 TELEPERFORMANCE COMP
Slide 27: A Well Recognized Company (1)
A WELL RECOGNIZED COMPANY (1) BY BUSINESS ANALYSTS EVEREST FROST & GARTNER IDC GROUP SULLIVAN Teleperformance Teleperformance’s Named a Leader in An IDC Market named leadership over Gartner Magic Scape Leader A Global Leader in competitors in the contact Quadrant for 4th Worldwide Contact Center cen
Slide 28: A Well Recognized Company (2)
A WELL RECOGNIZED COMPANY (2) AWARDS GREAT PLACE HUGHES NCCA CONTACT EUROPEAN TRANSPARENCY AON TO WORK CENTER WORLD OUTSOURCING GRAND PRIZE HEWITT AWARDS - APAC ASSOCIATION Teleperformance Teleperformance Teleperformance Teleperformance Teleperformance Teleperformance Teleperformance Mexico, El Salv
Slide 29: Teleperformance Vision
TELEPERFORMANCE VISION TELEPERFORMANCE MULTICHANNEL STRATEGY Giving customers the possibility to interact with brands in their preferred channel, whether self-service or agent-assisted, improves their customer experiences and loyalty. Anticipating what will come: the mobile Internet revolution f
Slide 30: Achieving Teleperformance Mission: Processes
ACHIEVING TELEPERFORMANCE MISSION TELEPERFORMANCE PROCESSES = DISCIPLINE PERFORMANCE MONITORING & QUALITY PROCESSES • TOPS: Different tools and exclusive methodologies to increase quality and Teleperformance performance in all our programs around processes are the world • BEST: Structured processes
Slide 31: Achieving Teleperformance Mission: People Strategy
ACHIEVING TELEPERFORMANCE MISSION PEOPLE STRATEGY = CARE HIRING Processes based on our worldwide best practices on how to attract the right people TRAINING Our people strategy, Flexible learning paths with a key factor of customized development plans according to each employee's differentiatio
Slide 32: Achieving Teleperformance Mission: People Strategy
ACHIEVING TELEPERFORMANCE MISSION PEOPLE STRATEGY = CARE Premium Campus concept • Promoting well-being and better quality of life by creating a happy, pleasant work environment and minimizing employee stress (LEED certifications, relaxing rooms, gyms and self-education e-learning…) • Appealing, st
Slide 33: CX Lab
TELEPERFORMANCE DIFFERENTIATING POWER CX LAB: A UNIQUE INNOVATIVE RESEARCH CENTER TO STRENGHTEN VERTICAL EXPERTISE AND AN INTEGRATED OMNICHANNEL APPROACH The Teleperformance CX Lab is an innovative research center dedicated to understanding customer behavior trends and satisfaction across geograph
Slide 34: Social Media Solutions and Omnichannel Approach
TELEPERFORMANCE DIFFERENTIATING POWER OFFERING SOCIAL MEDIA SOLUTIONS AND AN INTEGRATED OMNICHANNEL APPROACH e-Performance: A digital solution including monitoring, in- depth analysis and advocacy of social media 3 component solutions: • Social media mapping • Social media strategy • Actionable
Slide 35: TP Client CRM
TELEPERFORMANCE DIFFERENTIATING POWER INTEGRATING ALL CUSTOMER EXPERIENCE AND INFORMATION 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. •
Slide 36: Comprehensive Data Security
TELEPERFORMANCE DIFFERENTIATING POWER MEETING THE CHALLENGE WITH TELEPERFORMANCE COMPREHENSIVE DATA SECURITY: SECURITY CULTURE AND SECURE CONTACT CENTERS Teleperformance Global Fraud Prevention & Management Program in full effect across many sites 100+ of security professionals worldwide 14 Gl
Slide 37: Data Security: Certifications
TELEPERFORMANCE DIFFERENTIATING POWER TELEPERFORMANCE COMPREHENSIVE DATA SECURITY: CERTIFICATIONS Certifications Teleperformance Proprietary Technology • PCI – Payment Card Industry Solutions: Certification • DSE – Data Storage Entity Certification • Comprehensive Fraud Risk Assessments offered
Slide 38: Security Process – TP Observer Example
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. • TP Observer is an interactive contact center blueprint, allowing users to create customized maps based
Slide 39: Multilingual Hubs in Europe
TELEPERFORMANCE DIFFERENTIATING POWER A UNIQUE SOLUTION DEDICATED TO EUROPEAN MARKETS: THE MULTILINGUAL HUBS Addressing the pan-European programs with a state-of-the art multilingual campus • Strong Multilingual Hub Network: 5 countries • Portugal, Greece, Egypt, Turkey and the Netherlands • Acros
Slide 40: TLScontact Visa Outsourcing Solutions
TELEPERFORMANCE DIFFERENTIATING POWER BUSINESS PROCESS OUTSOURCED: TLSCONTACT OFFERING VISA OUTSOURCING SOLUTIONS Joined Teleperformance in 2010, TLScontact is a pioneering BPO* company specialized in Face-to- Face contact centers A huge growing market driven by: • Worldwide tourism evolution De
Slide 41: Teleperformance Analytics
TELEPERFORMANCE DIFFERENTIATING POWER ADDED VALUE COMPLEMENTARY SERVICES: TELEPERFORMANCE ANALYTICS Teleperformance Analytics: Tailor-made solutions to help companies identify and prioritize points of improvement, and increase efficiency through a better understanding of their customers. 3 solut
Slide 42: Translation & Transaction Currency Effect
TRANSLATION & TRANSACTION CURRENCY EFFECT Revenue by currency in 2014 Translation effect: • Translation of foreign subsidiaries’ results 39% into euros on consolidation 25% • Main exposure: • US dollar 16% • Brazilian real 10% 7% • Pound sterling 3% • Impact on revenue and earnings in value US dol
Slide 43: 2014 Annual Results: Summary P&L
2014 ANNUAL RESULTS SUMMARY P&L Continuing positive momentum € millions 2014 2013 Change €1 = US$ 1.33 €1 = US$ 1.33 Revenue 2,758 2,433 + 13.3% Like-for-like growth + 9.9% EBITDA before non-recurring items* 376 325 + 15.7% % revenue 13.6% 13.3% EBITA before non-recurring items* 267 226 + 18.2% %
Slide 44: Revenue Growth Analysis in 2014
2014 ANNUAL RESULTS REVENUE GROWTH ANALYSIS IN 2014 Revenue growth analysis Like-for-like growth: + 9.9% (2013-2014) € millions + 9.9% lfl + 148* 2,758 2,433 + 235 Main perimeter effect: acquisition of (58) 2,375 Aegis USA Inc. on August 2014 Main translation currency effect: weakening of the
Slide 45: Revenue and Recurring EBITA by Region
2014 ANNUAL RESULTS REVENUE AND RECURRING EBITA* BY REGION REVENUE Change € millions 2014 2013 Reported Like-for-like English-speaking market & Asia Pacific 1,209 947 + 27.7% + 12.5% Ibero-LATAM 770 762 + 1.0% + 6.8% Continental Europe & MEA 779 724 + 7.6% + 9.5% TOTAL 2,758 2,433 + 13.3% + 9.9% EBI
Slide 46: Financial Structure
2014 ANNUAL RESULTS FINANCIAL STRUCTURE Financial structure remaining strong after the acquisition of Aegis USA Inc. Net debt/EBITDA ratio = 1.1 € millions 315 (116) (157) 87 Net cash Cash flow Change Net Net Dividends Other Net cash as of in WCR capex investment paid items as of 12/31/2013 12/3
Slide 47: Dividend
DIVIDEND Dividend at €0.92 on behalf of 2014 vs €0.80 in 2013 Stable pay-out ratio at 35% € Pay-out ratio 1,00 €0.92 36% €0.80 0,90 35% 35% 34% 0,80 €0.68 32% 0,70 30% 0,60 €0.46 30% 0,50 28% €0.33 €0.33 28% 0,40 26% 0,30 26% 24% 0,20 21% 22% 0,10 0,00 20% 2009 2010 2011 2012 2013 2014 47
Slide 48: 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 Institutional Continental North 12% investors Europe ** A
Slide 49: Key Figures (2009-2014)
KEY FIGURES (2009-2014) PROVEN FINANCIAL TRACK RECORD Profitable growth € millions 2014 2013 2012 2011 2010 2009 Revenue 2,758 2,433 2,347 2,126 2,059 1,848 EBITDA* 376 325 306 268 258 228 EBITA* 267 226 214 181 174 156 % revenue 9.7% 9.3% 9.1% 8.5% 8.5% 8.5% EBIT 237 196 193 152 119 130 Net profi
Slide 50: 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