Teleperformance Se · EURONEXT:TEP
Teleperformance — Majorel — H1 2022 Earnings Presentation
39 slides from Teleperformance's earnings presentation, Aug 26, 2022
Slide 1: H1 2022 Financial results Investor Presentation
H1 2022 Financial results Investor Presentation August 26, 2022 1
Slide 2: Disclaimer
Disclaimer IMPORTANT: Please read the following before continuing. Failure to comply with the following restrictions may, between others, constitute a violation of applicable securities laws. This presentation (“Presentation”) is released by Majorel Group Luxembourg S.A. (the “Company” or “Majorel”)
Slide 3: Today's agenda
Today’s agenda H1 2022 INTRODUCTION 1 H1 2022 RESULTS 1 ADJUSTED FULL YEAR 2022 OUTLOOK 1 FINAL REMARKS 3
Slide 4: Today's agenda
Today’s agenda H1 2022 INTRODUCTION 1 H1 2022 RESULTS 1 ADJUSTED FULL YEAR 2022 OUTLOOK 1 FINAL REMARKS 4
Slide 5: Our mission, our values
OUR MISSION We create amazing customer experiences that people value and we are proud of. By combining talent, process, data and technology we deliver real impact for our partners We are driven to go further OUR VALUES Creativity Excellence Respect 5
Slide 6: Majorel at a glance
1 Majorel at a glance 60+ Languages 9% Tech & Expert Services 78k+ 49% Team members Global Internet clients worldwide 53% Team members 23% working from home Content services, Trust & Safety >400 Clients Next-Gen Global Double digit CX leader growth 130+ Countries served Numerous 41 23 industry award
Slide 7: We are a trusted long-term partner for rich end-to-end CX
1 We are a trusted long-term partner for rich end-to-end CX end-to-end Customer Interaction Business Tech & Clients Services Process Services Expert Services Global Internet Global partner of choice Leader for Content Services, Digital consumer engagement for digital-native companies Trust & Safety
Slide 8: H1 2022 key figures and highlights
1 H1 2022 key figures and highlights Strong top-line growth Growth with M&A & Ongoing regional Continued digital and profitability clients Strategic Partnership expansion expansion Acquisition of 3 114%1 new countries organically in H1 49% €976m Net Revenue Retention Completed on Jan 1st Global Inte
Slide 9: Progress in all strategic KPIs
1 Progress in all strategic KPIs Client mix Delivery mix Product mix Share of Share of Content Services, Share of Tech & Share of Global Internet Share of Telco Offshore Trust & Safety Expert Services in 2020 in 2020 in 2020 in 2020 in 2020 38% 19% 35% 17% 5% in 2021 in 2021 in 2021 in 2021 in 2021
Slide 10: Key takeaways
1 Key takeaways 1 Net revenue Strong of €1,752m (+31% yoy) coming in at top end of latest guidance of €1,700m-€1,750m financials • Net revenue of €976m resulting in like-for-like growth was +17% (YOY) • Strong profitability with Operating EBITDA of €175m resulting in a 17.9% Operating EBITDA margin
Slide 11: Today's agenda
Today’s agenda H1 2022 INTRODUCTION 1 H1 2022 RESULTS 1 ADJUSTED FULL YEAR 2022 OUTLOOK 1 FINAL REMARKS 11
Slide 12: Key financial highlights H1 2022
2 Key financial highlights H1 2022 Strong growth Positive development in profitability Robust cash position • Net revenue of €976m resulting in +16% • Operating EBITDA of €175m resulting • Free Cash Flow of €36m net revenue headline growth (yoy) in a 17.9% operating EBITDA margin (CCR 21%), adjusted
Slide 13: Strong financial performance in H1 2022
2 Strong financial performance in H1 2022 Revenue and net revenue Operating EBITDA EBIT Group profit €m €m €m €m +13% +16% 992 976 +14% 175 153 +21% 138 877 114 20% 102 842 85 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 Revenue Net revenue % Net 18.2% 17.9% 13.5% 14.1% 10.1% 10.5
Slide 14: Strong topline growth of 16% net revenue
2 Strong topline growth of 16% net revenue Net revenue bridge H1 2021 to H1 2022 €m 976 842 140 16 22 Delta of COVID-19 First-time consolidation of business H1 22 vs H1 21 Turkish Mayen and Alembo businesses H1 2021 M&A COVID-19 Like-for-like1 H1 2022 related business 14 1. Adjusted for M&A in H1
Slide 15: All segments contributed to Majorel's growth
2 All segments contributed to Majorel’s growth Net revenue bridge H1 2021 to H1 2022 €m 976 11 58 842 66 H1 2021 EASA GEMS CEA H1 2022 15 EASA Segment: Europe, Africa and South America; GEMS Segment: Global English, Middle East and South East Asia; CEA Segment: China and East Asia.
Slide 16: Positive development of Operating EBITDA in H1 2022
2 Positive development of Operating EBITDA in H1 2022 Operating EBITDA bridge H1 2021 to H1 2022 €m 175 -3 17 153 7 H1 2021 EASA GEMS CEA H1 2022 Op. EBITDA 18.2% 17.9% margin 16 EASA Segment: Europe, Africa and South America; GEMS Segment: Global English, Middle East and South East Asia; CEA Segmen
Slide 17: Strong momentum in EASA
2 Strong momentum in EASA Net revenue H1 2021 and H1 2022 Comments €m • The main driver for growth was the continuing strong development of the Company’s near- and offshore locations in +10% Africa, Eastern Europe, and Latin America. 637 702 • EASA also includes the COVID-19 related business and the
Slide 18: GEMS demonstrating very strong development
2 GEMS demonstrating very strong development Net revenue H1 2021 and H1 2022 Comments €m • The strong increase in net revenue continues to be driven by the Company’s continued expansion, particularly in the Philippines, +35% Canada, the US, Malaysia, Egypt, and Kenya. 221 163 • Operating EBITDA amou
Slide 19: Healthy topline development in CEA despite COVID-19 restrictions
2 Healthy topline development in CEA despite COVID-19 restrictions Net revenue H1 2021 and H1 2022 Comments €m • The CEA Segment has delivered a contribution of 5% of group net revenue, in line with management expectations and supported by +26% the continuing growth of digital consumer engagement se
Slide 20: EBIT and Group Profit in H1 2022
2 EBIT and Group Profit in H1 2022 EBIT Group profit €m €m 138 114 102 85 H1 2021 H1 2022 H1 2021 H1 2022 % Net revenue 13.5% 14.1% 10.1% 10.5% 20
Slide 21: Robust free cash flow
2 Robust free cash flow €m H1-2022 H1-2021 Cash flow from operating activities 79 123 add back: Taxes paid 21 15 add back: Other adjustments not included in free cash flow (1) less: Capital Expenditure (38) (30) % Net Revenues 3.9% 3.6% less: Payment from leases (26) (25) less: Scope and other effec
Slide 22: Strong balance sheet
2 Strong balance sheet €m June 30th 2022 December 31st 2021 Cash and cash equivalents 330 238 Liabilities to banks (123) (74) Other financial debt (85) (85) Net cash position 122 79 Provisions for pensions and similar (32) (43) Lease liabilities (142) (125) Economic Cash/ (Debt) (52) (89) 22
Slide 23: Results overview
2 Results overview €m H1-2022 H1-2021 Growth (yoy) Net revenue 976 842 +16% Operating EBITDA 175 153 +14% % Net revenue 17.9% 18.2% -30 bps EBIT 138 114 +21% % Net revenue 14.1% 13.5% 60 bps Group profit 102 85 +20% % Net revenue 10.5% 10.1% 40bps Free Cash Flow 36 85 -58% % Operating EBITDA (CCR) A
Slide 24: Today's agenda
Today’s agenda H1 2022 INTRODUCTION 1 H1 2022 RESULTS 1 ADJUSTED FULL YEAR 2022 OUTLOOK 1 FINAL REMARKS 24
Slide 25: Majorel increases net revenue guidance for 2022
3 Majorel increases net revenue guidance for 2022 Net revenue €m 1,900-2,000 1,752 +15-21%2 +31% Covid-19 business 1,340 +16%1 China Business 1,172 +14% 976 (H1 2022) 2019 2020 2021 2022 Guidance 25 Note: Net revenue guidance fiscal year 2022 has been increased after publication of preliminary numbe
Slide 26: Operating EBITDA 2022 expected in upper half of margin guidance
Operating EBITDA 2022 expected to be in the upper half 3 of the margin guidance of 16.0-17.0% Operating EBITDA €m 10.9% 14.6% 18.0% 16.0-17.0% 316 Covid-19 business1 China Business +340bps 196 175 (H1 2022) +370bps 128 2019 2020 2021 2022 Guidance 26 1. Illustrative presentation, not drawn to scale
Slide 27: Today's agenda
Today’s agenda H1 2022 INTRODUCTION 1 H1 2022 RESULTS 1 ADJUSTED FULL YEAR 2022 OUTLOOK 1 FINAL REMARKS 27
Slide 28: Key takeaways
4 Key takeaways 1 Net revenue Strong of €1,752m (+31% yoy) coming in at top end of latest guidance of €1,700m-€1,750m financials • Net revenue of €976m resulting in like-for-like growth was +17% (YOY) • Strong profitability with Operating EBITDA of €175m resulting in a 17.9% Operating EBITDA margin
Slide 29: Q&A
Q&A 29
Slide 30: Appendix
Appendix 30
Slide 31: Definitions
A Definitions Net revenue Net revenue for the Group corresponds to revenues as reported in our management reporting less certain direct, order-related external costs which are part of external expenses and costs of materials and consist mainly of cost of services purchased (subcontracted or outsourc
Slide 32: Condensed Consolidated Interim Statement of Profit and Loss
A Condensed Consolidated Interim Statement of Profit and Loss For the six months ended June 30, 2022 In € millions Notes 2022 2021 Revenues 1 992 877 Other operating income 30 18 External expenses and costs of materials (196) (212) Personnel costs (640) (529) Amortization/depreciation, impairment an
Slide 33: Condensed Consolidated Interim Statement of Comprehensive Income
A Condensed Consolidated Interim Statement of Comprehensive Income For the six months ended June 30, 2022 In € millions Notes 2022 2021 Group profit or loss 102 85 Items that will not be reclassified subsequently to profit or loss Remeasurement component of defined benefit plans 11 5 Items that will
Slide 34: Condensed Consolidated Interim Statement of Financial Position
A Condensed Consolidated Interim Statement of Financial Position In € millions Notes June 30, 2022 December 31, 2021 Assets Non-current assets Goodwill 150 94 Other intangible assets 35 20 Property, plant and equipment and right-of-use assets 283 245 Investments accounted for using the equity method
Slide 35: Condensed Consolidated Interim Statement of Financial Position
Investments accounted for using the equity method 4 3 Trade and other receivables 1 1 Deferred tax assets 36 38 509 401 Current assets A Condensed Consolidated Interim Statement of Financial Position – Trade and other receivables Other financial assets 489 6 467 11 Other non-financial assets 72 68 E
Slide 36: Condensed Consolidated Interim Statement of Cash Flow
A Condensed Consolidated Interim Statement of Cash Flow For the six months ended June 30, 2022 In € millions Notes 2022 2021 Earnings before interest and taxes 138 114 Amortization, depreciation and write-ups of non-current assets 48 40 Gains from business combinations (3) - Change in provisions for
Slide 37: Condensed Consolidated Interim Statement of Changes in Equity
A Condensed Consolidated Interim Statement of Changes in Equity For the six months ended June 30, 2022 Subscribed Majorel Non- Capital Retained In € millions Notes shareholders' controlling Total capitala) reserve earnings equity interests Balance as of January 1, 2021 - 275 37 312 5 317 Group profi
Slide 38: Segment Information
A Segment Information For the six months ended June 30, 2022 Global English, Europe, Africa, Consolidation/ Middle East, China, East Asia Total segments Total Group South America other Southeast Asia H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 In € millions 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Slide 39: Thank you for your attention
Thank you for your attention www.majorel.com 39