Teleperformance Se · EURONEXT:TEP
Teleperformance — Q1 2025 Earnings Presentation
48 slides from Teleperformance's earnings presentation, May 2025
Slide 1: TP Group overview
TP Group overview Including First-Quarter 2025 revenue May 2025
Slide 2: Disclaimer
Disclaimer All forward-looking statements reflect TP 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 of
Slide 3: TP Group overview agenda
01. 02. 03. 04. 05. TP Group Q1 2025 key Q1 2025 Outlook Appendix overview highlights revenue TP Group Overview May 2025 3
Slide 4: TP – EI & AI empowered digital business services
TP – EI & AI1 empowered digital business services ‘Centaur’ Strategy We are a global digital business services company helping organizations modernize, Expert Co-Pilot optimize and transform their operations. (Human) (Assist & ESTRAT H Augment) IO ORC Our approach seamlessly blends human N empathy (
Slide 5: TP is uniquely positioned to drive favorable outcomes in the age of AI
TP is uniquely positioned to drive favorable outcomes in the age of AI People Technology Leading global delivery platform AI-enabled suite of TP Applications powered by TP experts support multiple to assist, augment, and automate capabilities, languages, industries & operations, with expanding tech
Slide 6: Further enhancing TP's businesses
Further enhancing TP’s businesses Business Process Services Specialized Services Global domain-led business Target specific market segments, process services delivering enabling creation of more vertical as well as horizontal integrated solutions with high solutions level of expertise TP.ai Harness
Slide 7: TP.ai: leveraging TP strong capabilities for new opportunities
TP.ai: leveraging TP strong capabilities for new opportunities Providing operational support and know-how in training and enhancing 01 AI (data annotation, labelling, collection and curation) TP.ai: TP is embracing AI and tech enablement for its operations… Assist, Augment and Automate 1.500+ TP Sol
Slide 8: Supported by unparallel markets and geographic reach
Supported by unparallel markets and geographic reach A global leader in digital business services, with strong 45 years+ track record Nearly Nearly 100 170 1,500 10B+ Countries have Markets Clients1 FY revenue a TP presence served (euros) 2024 revenue breakdown by activity and geography Specialized
Slide 9: Financial track record
Financial track record Profitable growth TP Revenue in € Bn TP recurring EBITA margin 10.3 Total revenue growth 2014-24 / A global leader in digital LFL revenue growth 2014-24 business services / Continuous growth and margin expansion over the last 10 years 2.8 15.0% / Succesful transition and expan
Slide 10: Financial track record
Financial track record Strong cashflow 1,084 Net free cashflow (2012-2024) 812 Cash conversion rate (2019-2024)1 703 661 60% 52,0% 50% 486 40% 35,0% 324 30% 321 281 236 20% 202 10% 95 93 0% 64 2019 2024 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 Net free cashflow / recurring
Slide 11: Capital allocation strategy
Capital allocation strategy Balanced and flexible LT strategy to create value Financing the development Maintaining investment Returning to shareholders grade rating • Investing in the future growth • Debt leverage: ≤ 2x • Dividend • Partnerships in AI / bolt-on • S&P credit rating: BBB • Share buy-
Slide 12: TP Capital Markets Day
TP Capital Markets Day Save the date We are delighted to invite you to the TP Capital Markets Day To be held on Wednesday, June 18, 2025, in New York City TP Group Overview May 2025 12
Slide 13: TP Group overview and strategy
01. 02. 03. 04. 05. TP Group Q1 2025 key Q1 2025 Outlook Appendix overview and highlights revenue strategy TP Group Overview May 2025 13
Slide 14: Solid growth in Q1 2025 as expected, full-year targets confirmed
Solid growth in Q1 2025 as expected, full-year targets confirmed / +2.8% as reported, +1.6% LFL and +2.6% LFL adjusted for the impact of the non-renewal Solid growth of a significant visa application management contract in Specialized Services / Solid momentum confirmed in Core Services: +2.3% LFL /
Slide 15: Update on ZP acquisition
Update on ZP acquisition / ZP is the #2 player in providing language solutions and technology platforms for the deaf and hard-of-hearing community across the United States / Acquisition successfully completed on February 5th, 2025, now part of TP’s Specialized Services / Synergies program launched a
Slide 16: Mobilizing TP capabilities
Mobilizing TP capabilities Update based on the four dimensions of the TP EI & AI1 hybrid approach PEOPLE PROCESSES TECHNOLOGY DOMAIN EXPERTISE / Launched global firmwide / Enhanced update of TOPS / Launched nearly 80 new / Sustained growth in non- upskilling program in & BEST process excellence AI p
Slide 17: TP AI: Progress across all three areas, two new agentic AI partnerships
TP AI: Progress across all three areas, two new agentic AI partnerships / Won three new client contracts in Q1 2025 01 / Expanded new AIML1 and GenAI Data Service capabilities in SFT², RLHF3, Red Teaming, and Specialized Data Labeling/Categorization 02 / New client contract wins across Analytics, Te
Slide 18: TP Group overview and strategy
01. 02. 03. 04. 05. TP Group Q1 2025 key Q1 2025 Outlook Appendix overview and highlights revenue strategy TP Group Overview May 2025 18
Slide 19: Growth on track
Growth on track €m Q1 2025 Q1 2024 % change 1 Reported Like-for-like €/$ exchange rate (3-month average) €1 = US$1.05 €1 = US$1.09 Revenue 2,613 2,542 +2.8% +1.6% 1 At constant exchange rates and scope of consolidation TP Group Overview May 2025 19
Slide 20: Q1 2025 revenue growth analysis
Q1 2025 revenue growth analysis (M€) +2.8% +36 2,613 / Scope effect related to the +42 consolidation of ZP activities over 2 months (6) / Negative currency effect 2,542 2,536 (€6m) +1.6%1 / LFL growth: + 2.6% adjusted for the impact of the non-renewal of a significant visa application management con
Slide 21: Q1 2025 revenue by activity
Q1 2025 revenue by activity Revenue (€m) Q1 2025 Q1 2024 % change / Q1 2025 like-for-like growth: 1 Reported Like-for-like • Core Services: +2.3% Core Services 2,217 2,184 +1.5% +2.3% - Americas 1,051 1,046 +0.3% +0.8% o Americas: +0.8% - Europe, MEA & APAC 1,166 1,138 +2.6% +3.8% o EMEA: +3.8% • Sp
Slide 22: Performance by activity and region
Performance by activity and region Q1 2025 revenue split by activity, region and shoring Specialized Services Core Services / Solid growth in EMEA & APAC:+3.8% LFL1 in Q1 Americas 15% 40% / Growth in the Americas: +0.8% LFL1 in Q1 / Sustained growth in India, UK, Middle East & APAC, Sub Saharan regi
Slide 23: Performance by vertical
Performance by vertical Q1 2025 revenue split by vertical1 Automotive FMCG2 Other 3% 3% 7% Healthcare 7% Broad In Q1 2025, diversified sustained clientgrowth portfolio especially across allinmajor Governments, verticals Travel Hospitality and Media, Entertainment Gaming Energy & Utilities / Broad di
Slide 24: Performance by business line
Performance by business line Q1 2025 revenue split by business line Specialized Services 15% Well in Sustained Care diversified linegrowth with portfolio overall in back growth of office business / BPOlines / other non-voice1 services across the regions / Well diversified portfolio of business lines
Slide 25: TP Group overview and strategy
01. 02. 03. 04. 05. TP Group Q1 2025 key Q1 2025 Outlook Appendix overview and highlights revenue strategy TP Group Overview May 2025 25
Slide 26: 2025 outlook confirmed
2025 outlook confirmed / Volatile economic environment Environment / Positive market dynamics supported by ongoing offshore and automation trend / Continued vendor consolidation / +2 to +4% like-for-like growth Accelerated growth / +3 to +5% like-for-like growth adjusted for the impact of the non-re
Slide 27: Path forward
Path forward EI & AI-driven solutions delivered through global digital business services Orchestrate EI & AI Hyper- successfully to drive better Targeted verticalized Specialized outcomes (‘Centaur’ strategy) BPO Services solutions Mid-single Transform customer experiences digit medium- (CX) end-to-
Slide 28: TP Group overview and strategy
01. 02. 03. 04. 05. TP Group Q1 2025 key Q1 2025 2025 Appendix overview and highlights revenue outlook strategy TP Group Overview May 2025 28
Slide 29: Financial statements / Additional information
Financial statements Additional information TP Group Overview May 2025 29
Slide 30: Alternative Performance Measures
Alternative Performance Measures 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. Pr
Slide 31: Consolidated income statement
Consolidated income statement (in millions of euros) 2024 2023* Revenues 10,280 8,345 Other revenues 8 9 Personnel -6,901 -5,604 External expenses -1,364 -948 Taxes other than income taxes -40 -27 Depreciation, amortization and related impairment losses -293 -266 Amortization of intangible assets ac
Slide 32: Balance sheet
Balance sheet (in millions of euros) 12/31/2024 12/31/2023* (in millions of euros) 12/31/2024 12/31/2023* EQUITY NON-CURRENT ASSETS Share capital 150 159 Goodwill 4,567 4,436 Share premium 683 1,098 Other intangible assets 2,162 2,314 Translation reserve 75 -117 Right-of-use assets 725 767 Other res
Slide 33: Consolidated cash flow statement
Consolidated cash flow statement 2024 2023* Net profit - Group share 523 592 Net profit attributable to non-controlling interests Income tax expense 346 228 Net financial interest expense 199 104 Interest expense on lease liabilities 61 47 Non-cash items of income and expense 947 729 Income tax paid
Slide 34: TP main currency exposure
TP main currency exposure Translation effect 2023 2024 Revenue % of total Revenue % of total Euro 2,029 24% 3,338 33% US dollar 3,201 38% 3,137 31% Indian rupee 564 7% 638 6% Colombian peso 516 6% 580 6% Pound sterling 491 6% 565 6% Brazilian real 239 3% 236 2% Egyptian pound 148 2% 207 2% Yuan 119
Slide 35: TP overview / Additional information
TP overview Additional information TP Group Overview May 2025 35
Slide 36: Smart shoring
Smart shoring A unique and longstanding offering of worldwide broad sourcing mix Network of 44 offshore/nearshore locations and 8 multilingual hubs Share of offshore revenue1 around the world (2024) 60% 57% 58% 52% 48% 50% 46% 47% 43% 40% 38% 40% 34% 35% 29% 30% 26% 26% 20% 10% 0% 2 1 in Core Servic
Slide 37: TP's end-to-end offering in data services for AI operations
TP’s end-to-end offering in data services for AI operations Integrated into AI model architectures LLMs and foundational Content intelligence Visual AI (Computer Vision) Language AI (NLP) models & relevance TP AI operations & data services End-to-End Solution based on Human Expertise + AI Workflow D
Slide 38: Technology: new value streams
Technology: new value streams LLM training market trends example / The business process outsourcing market is (US$ bn) benefiting greatly from the development of generative AI: / Swift growth of new associated needs, particularly in terms of Large Language Model (LLM) training and machine learning /
Slide 39: TP's comprehensive transformation expertise with TP Infinity
TP’s comprehensive transformation expertise with TP Infinity Consulting Technology Design & Creative Analytics TP-aaS CX Strategy Contact Center & Consumer Market Research QA-aaS Development CCaas Intelligence Customer Journey / Customer Feedback Conversational AI Experience Design WFM-aaS TOM Desig
Slide 40: AI partnerships
AI partnerships TP Group Overview May 2025 40
Slide 41: Strategic partnership with Sanas
Strategic partnership with Sanas1 Advancing intelligent orchestration / TP forms strategic partnership with real-time speech understanding provider Sanas / Sanas is a leader in providing real-time speech understanding powered by its patented AI technologies, including noise cancellation & accent tra
Slide 42: Strategic partnership with Ema
Strategic partnership with Ema1 Advancing intelligent orchestration / TP has entered into a strategic partnership with Ema to accelerate AI-driven transformation for TP’s clients in particular in back-office areas. This partnership strengthens TP’s position in high-growth enterprise services, advanc
Slide 43: Strategic partnership with Parloa
Strategic partnership with Parloa1 Advancing intelligent orchestration / TP has entered into a strategic partnership with Parloa, a leading agentic AI company specializing in customer service / Parloa’s platform seamlessly integrates AI agents and human experts, enabling TP to elevate, automate, and
Slide 44: Market and competitive environment
Market and competitive environment TP Group Overview May 2025 44
Slide 45: Growing and still low outsourced CX market
Market and competitive environment Growing and still low outsourced CX market • Outsourced CX market worth c. $114bn in 2024E, up ~ +1% vs. 2023 • Outsourcing rate of 32% in 2024E, benefiting from increasingly complex clients needs • Market growth expected to continue to grow at a moderate pace in 2
Slide 46: Consolidation of a still fragmented CX market
Market and competitive environment Consolidation of a still fragmented CX market Outsourced CX market share (based on 2023 revenue) Source : Everest (2024) TP Group Overview May 2025 46
Slide 47: Enlarged addressable market with broader competitive environment
Market and competitive environment Enlarged addressable market with broader competitive environment (BPO/ITO/Consulting) … whose transformation leads to reaching to #1 global leader in the outsourced CX market digital integrated business services market #1: TP TOP 2: >= US$ 10 bn revenue Top players
Slide 48: tp.com
e. Emotional () uate Intelligence tp.com
TP (Teleperformance SE) — Q1 2025 Earnings Presentation on 6ix