Slide 1: Teleperformance Group overview
Teleperformance Group overview September 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. Teleperformance at a glance 02. 2022 first-half results 03. Outlook 04. Appendices • Teleperformance at a glance – Aditionnal information • Latest acquisitions – Overview • Market and competitive environment • Others
Slide 4: Teleperformance mission statement
“Teleperformance is a global service company whose mission is to reduce friction between companies and their customers on the one hand, and between administrations and citizens on the other, through the effective management of their daily interactions” 4
Slide 5: TP Cube
TP Cube TP Cube: a three-dimensional approach (services, verticals, geographies) to respond perfectly to the growing complexity of client demand all over the world Omnichannel, digital and integrated business services 5
Slide 6: #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 1,000+ 170+ clients** markets * 2021 data ** For Core Services & D.I.B.S ac
Slide 7: Digital transformation and solid client portfolio
Digital transformation and solid client portfolio A well diversified client portfolio Structural digital transformation supporting Group’s % of 2021 revenue by vertical growth Other Clients split by category (2021) Governments Energy 11% 14% 3% Financial Travel & Hospitality Digital transformation S
Slide 8: 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 9: 2025 Financial Objectives Revenue > €10 billion
In an exponentially transformative environment, Teleperformance maintains and expands its global # 1 leadership in outsourced customer and citizen experience management & advanced related services 2025 Financial Objectives Additional revenue Revenue > EBITA margin contribution from specific €10 bill
Slide 10: Strong, profitable and responsible growth
Strong, profitable and responsible growth 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 Maintainin
Slide 11: A rejuvenated Executive Committee
A rejuvenated Executive Committee A seasoned, international and agile team to lead the digital transformation of the Group 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
Slide 12: 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 13: 2022 first-half results
01. Teleperformance at a glance 02. 2022 first-half results 03. Outlook 04. Appendices • Teleperformance at a glance – Aditionnal information • Latest acquisitions – Overview • Market and competitive environment • Others
Slide 14: Key facts and figures: sustained growth in H1 22
Key facts and figures Sustained business and earnings growth in H1 22 • Revenue up +15.0% , including LFL growth* of +5.5% despite high prior-year comps and +12.9% excluding non-recurring items** • Faster LFL growth of +14.5% in Q2 22, excluding non- recurring items** • Improved recurring EBITA marg
Slide 15: Key facts and figures: key developments
Key facts and figures Keys developments • Extended capacities with some 20 new sites opened in H1 in Europe, Africa, the United States, Peru and India, representing more than 7,000 works stations • Nearly 70% of group’s employees still working from home today • Strong commitment to employees: certif
Slide 16: Sustained growth
Sustained growth €m H1 2022 H1 2021 • Revenue up +15.0% to €3,946 million €/$ exchange rate (12-month average) €1 = US$1.09 €1 = US$1.21 Revenue 3,946 3,431 • +5.5% like-for-like revenue growth Reported growth +15.0% despite high prior-year comparatives, Like-for-like growth* (LFL) +5.5% and +12.9%
Slide 17: Revenue growth analysis
Revenue growth analysis • Sustained growth with revenue up +5.5% +12.9% LFL excl. impact LFL (€m) from Covid support • High base of comparison due to contracts contribution +160 3,946 peak contribution of Covid support contracts in H1 21 +462 • +12.9% like-for-like gain, 3,590 (266) excluding negati
Slide 18: Quarterly like-for-like growth trend
• Decrease in contribution of Covid 2020 2021 2022 contracts as expected is not a game changer 40% 38% 36% • Acceleration of underlying* LFL growth in Q2 2022, despite high 30% comps 23% 20% 21% • Resilient trend of underlying growth 23% 15% above +10% post health crisis 20% 13% 12% 11% 15% 15% 10%
Slide 19: Revenue by activity
Revenue by activity Revenue (€m) Like-for-like* (LFL) Reported Core Services & D.I.B.S.: H1 Q2 H1 Q2 H1 Q2 H1 Q2 +3.8% LFL* growth in H1 22 Core Services & D.I.B.S. 3,412 1,700 3,075 1,539 +3.8% +2.2% +10.9% +10.5% • Strong growth in Ibero- Latam and India - EWAP 1,175 576 992 484 +1.2% +0.5% +18.5%
Slide 20: EBITA by activity
EBITA by activity H1 2022 H1 2021 Recurring EBITA margin rose to 14.3%, from Recurring EBITA (€m) €m Margin €m Margin 14.0% in H1 2021: • Margin maintained in Core Services & Core Services & D.I.B.S. 398 11.7% 374 12.2% D.I.B.S, despite negative effect of - EWAP 97 8.2% 57 5.7% decrease in Covid con
Slide 21: Core Services & D.I.B.S. – EWAP
Core Services & D.I.B.S. – English-speaking market & Asia-Pacific (EWAP) • Renewed momentum in the North American market, both domestic and offshore • Social media, online entertainment, travel and financial services sectors grew at a brisk pace • Sharp decline as expected in the revenue contributio
Slide 22: Core Services & D.I.B.S. – Ibero-LATAM
Core Services & D.I.B.S. – Ibero-LATAM • High growth in all the countries of the region, against a high basis of comparison • Most dynamic sectors: social media, online entertainment, healthcare, financial services and travel • Development costs incurred for the opening and the ramp up of numerous n
Slide 23: Core Services & D.I.B.S. – CEMEA
Core Services & D.I.B.S. – Continental Europe & MEA (CEMEA) • Decline in revenue and EBITA margin as expected due to the lower contribution from Covid support contracts in the Netherlands, France and Germany • Excluding the impact of the Covid support contracts, strong business growth with clear acc
Slide 24: Core Services & D.I.B.S. – India
Core Services & D.I.B.S. – India • Highly profitable offshore activities continued to grow rapidly • Dynamic Group’s client base of global leaders in the buoyant travel, consumer electronics, healthcare, internet, online entertainment and e-tailing sectors Revenue (€m) Recurring EBITA (€m) +18.0% LF
Slide 25: Specialized Services
Specialized Services • Strong growth and margin performance supported by: • Resounding recovery of TLScontact’s activities, driving its operating margin to pre-Covid-19 levels • LanguageLine Solutions: continued high margins, reflecting satisfactory growth and solid business model • Consolidation of
Slide 26: Operating profitability
Operating profitability €m H1 2022 H1 2021 Change • Increase in amortization of intangible assets due to the Revenue 3,946 3,431 +15.0% recent acquisitions in the US EBITA before non-recurring items 566 479 +18.2% % of revenue 14.3% 14.0% • Increase in non-recurring items, due to non-cash expenses r
Slide 27: Earnings performance
Earnings performance €m H1 2022 H1 2021 Change • Net profit - Group share: up +7.5% to €274 million Operating profit 438 398 +10.1% Financial result (52) (44) • Diluted earnings per share: up +6.7% to €4.60 Income tax (112) (99) Effective tax rate 29.1% 28.1% Minority interest - - Net profit - Group
Slide 28: Cash flow
Cash flow €m H1 2022 H1 2021 • Net free cash flow: €325 million Cash flow* 515 469 • Net capital expenditure of €150 million: • 3.8% of revenue, vs. 2.9% in H1 21 Change in working capital (40) (38) Net capital expenditure (150) (98) • Development of a hybrid model combining work-from-home and % of
Slide 29: Balance sheet summary
Balance sheet summary €m 06/30/2022 12/31/2021 €1 = US$1.04 €1 = US$1.13 Non-current assets 5,905 5,524 o/w intangible assets 4,455 4,181 Working capital* 801 701 Total net assets 6,706 6,225 Equity 3,601 3,157 Provisions and deferred tax liabilities 472 412 Net debt 2,633 2,656 o/w lease liabilitie
Slide 30: Financial position
Financial position 2,656 (325) +73 2,633 • Solid financial structure +194 +35 • S&P credit rating: BBB Investment grade – stable outlook • Refinancing with the successful issue of Sustainability-linked Bonds in June 2022 for €500 million with a 7-year maturity: Net debt as of Net free cash Financial
Slide 31: Outlook
01. Teleperformance at a glance 02. 2022 first-half results 03. Outlook 04. Appendices • Teleperformance at a glance – Aditionnal information • Latest acquisitions – Overview • Market and competitive environment • Others
Slide 32: Full-year 2022 targets confirmed
Full-year 2022 targets confirmed ▪ Recurring* like-for-like revenue growth: above +10% ▪ Like-for-like revenue growth above +5% ▪ A 30 basis-point increase in EBITA margin ▪ Targeting selective acquisitions creating value for the group strengthening the Group’s high value-added businesses * Excludin
Slide 33: Appendices: Teleperformance at a glance
01. Teleperformance at a glance 02. 2022 first-half results 03. Outlook 04. Appendices • Teleperformance at a glance – Aditionnal information • Latest acquisitions – Overview • Market and competitive environment • Others
Slide 34: Over 40 years at the forefront of customer experience
High credibility: 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 A
Slide 35: 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 36: 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 37: Technology, Analytics and Process (T.A.P™)
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 38: Metaverse: at the forefront of market needs evolution
Metaverse: at the forefront of the market needs evolution Revolutionizing Building employee tomorrow’s CX engagement New channels and new lines of business Customer experience XR Lab & consultancy 38 38
Slide 39: 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 40: Smart shoring: 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 41: Teleperformance Cloud Campus
Teleperformance Cloud Campus 70% of the Group’s workforce remains remote Eliminate hiring Dedicated support for Effective employee A highly secure remote boundaries dispersed teams management and optimization environment 41
Slide 42: 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: Teleperformance was included in the world’s Top 25 out of 10,000 other companies Outstanding recognition: the only company in the customer experience industry to be part of the Top 25 • More than 95% o
Slide 43: Global partnership with UNICEF
Global partnership with UNICEF Education • India: long-term education programs around early childhood, digital training, quality Teleperformance signed a US$6 teaching, adolescents and children missing out million global partnership over on their right to a quality education three years with UNICEF
Slide 44: Latest acquisitions – Overview
01. Teleperformance at a glance 02. 2022 first-half results 03. Outlook 04. Appendices • Teleperformance at a glance – Aditionnal information • Latest acquisitions – Overview • Market and competitive environment • Others
Slide 45: Health Advocate: US healthcare navigation platform
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 46: Senture: BPO operator for US public services
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 47: Market and competitive environment
01. Teleperformance at a glance 02. 2022 first-half results 03. Outlook 04. Appendices • Teleperformance at a glance – Aditionnal information • Latest acquisitions – Overview • Market and competitive environment • Others
Slide 48: #1 worldwide in a growing CX market (1)
#1 worldwide in a growing customer experience 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
Slide 49: #1 worldwide in a growing CX market (2)
#1 worldwide in a growing customer experience 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 D
Slide 50: 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 51: 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 52: Others
01. Teleperformance at a glance 02. 2022 first-half results 03. Outlook 04. Appendices • Teleperformance at a glance – Aditionnal information • Latest acquisitions – Overview • Market and competitive environment • Others
Slide 53: Definitions of financial indicators
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 54: teleperformance.com
teleperformance.com teleperformanceblog.com /company/teleperformance @teleperformance_group /teleperformanceglobal /teleperformance @teleperformance