Teleperformance Se · EURONEXT:TEP
Teleperformance — Q3 2023 Earnings Presentation
24 slides from Teleperformance's earnings presentation, Nov 6, 2023
Slide 1: Quarterly information at September 30, 2023
Quarterly information at September 30, 2023 (January 1, 2023 – September 30, 2023) Finalization of Majorel acquisition (November 3, 2023) Presentation Webcast November 6, 2023
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: Contents
Contents 01. The New Teleperformance – Daniel Julien, Chairman & CEO 02. Third-quarter 2023 and YTD financial review – Olivier Rigaudy, Deputy CEO & CFO 03. Conclusion 04. Q&A 3
Slide 4: The New Teleperformance: Transformation and Performance
The New Teleperformance: Transformation and Performance • Key operational numbers o #1 global leader in the CX outsourcing and digital integrated services o ~500,000 employees o €450 million of IT Opex per year and 6,500 IT specialists o 3,000+ experts across operational consulting, analytics, and d
Slide 5: The New Teleperformance: a dominant force in every significant market
The New Teleperformance: a dominant force in every significant market around the world* Teleperformance leadership / major competitive position in 9 of the Top 10 countries in the world by GDP in 2023 o US o China o Germany o India o UK o France o Italy o Brazil o Canada Source : IMF * Except Japan
Slide 6: The New Teleperformance: An augmented business services leader
The New Teleperformance: An augmented business services leader • Geographies o Significantly strengthens positions in German and French speaking markets o Scales up APAC markets presence (x2) o Largest player in Africa • Verticals: increased penetration (most significant) o Banking and financial ser
Slide 7: The New Teleperformance: A simplified and leaner organization
The New Teleperformance: A simplified and leaner organization(1) New Executive Committee ▪ Reduction of layers ▪ Full P&L accountability Daniel Julien ▪ Focused on: Deputy CEO Chairman and CEO o Excellence in operations o Innovation Bhupender Singh PresidentofGroup Transformation Deputy CEO Agustin
Slide 8: Teleperformance Q3 2023 revenue and outlook
Teleperformance Q3 2023 revenue and outlook • 9 months 2023: revenue up +6.0% LFL* • Q3 2023: revenue up +4.0% LFL* • Full-year 2023 guidance confirmed: o Like-for-like revenue growth of around +6%* (Q4 peak season), excluding the exchange rate volatility impact related to countries with hyperinflat
Slide 9: Contents
Contents 01. The New Teleperformance – Daniel Julien, Chairman & CEO 02. Third-quarter 2023 and YTD financial review – Olivier Rigaudy, Deputy CEO & CFO 03. Conclusion 04. Q&A 9
Slide 10: Final deal closing and next steps
Final deal closing and next steps October 20, 2023: November 3, 2023: December 2023: Results of the offer Squeeze out and delisting Offer declared Finalization of the acquisition of Majorel unconditionnal Results of the offering post-acceptance period > 99.9% November 1st, 2023: November 8, 2023: 1s
Slide 11: Final deal closing and next steps
Final deal closing and next steps • Acquisition costs: ~€20 million, < 1% of the deal value • New shareholders: Saham and Bertelsmann will own 3.59% each of Teleperformance capital • Lock-up period: 6/9/12 months by third • New Board member: Mr. Moulay Hafid Elalamy, founder of Saham group, should j
Slide 12: Final deal closing and next steps: Cost synergies
Final deal closing and next steps Cost synergies • Cost synergies analysis performed by the dedicated Teleperformance “Clean team” supported by E&Y during summer 2023, and shared internally following antitrust clearance (October 20, 2023) • Main conclusions: ▪ Amount: Well into the € 100-150 million
Slide 13: 2023 guidance affirmed at low end of the range
2023 guidance affirmed at low end of the range First 9-month growth LFL*: +6%, in line with annual guidance LFL ex. 2023 2022 Covid LFL** Reported contracts* €/$ exchange rate (9-month average) €1 = US$1.08 €1 = US$1.06 9M (to September 30) 5,949 6,002 +6.0% +2.5% -0.9% Q3 1,989 2,056 +4.0% +3.1% -3
Slide 14: Q3 2023 grows +4% over strong Q3 2022
Q3 2023 grows +4%* over strong Q3 2022 2500 Q3 Revenue (€m) 2,056 1,989 2000 1500 +14% 1000 LFL* +4% LFL* 500 0 Q3 2022 Q3 2023 * Like-for-like growth, at constant exchange rates and scope of consolidation, excluding the impact of the decline in revenue from the Covid contracts 14
Slide 15: €345m of LFL growth through 9 months of 2023
€345m of LFL growth through 9 months of 2023 First 9-month 2023 growth analysis (€m) 6,002 (250) +6% LFL excl. Covid contracts +53 5,949 +345 5,752 (201) LFL growth: +€144m = +2.5% 9M 2022 Currency effect 9M 2022 at Impact of Covid Like-for-like Change in scope* 9M 2023 constant support growth (LFL)
Slide 16: Revenue well-balanced by vertical and region
Revenue well-balanced by vertical and region First 9-month 2023 revenue mix by vertical* First 9-month 2023 revenue split by activity and region Business Services, Specialized North America & Governments, Media, Entertainment Services, APAC, Healthcare, & Gaming, Retail & e-commerce, Financial servi
Slide 17: Source of growth
Source of growth First 9-month 2023 growth analysis by activity and region +140 +53 5,949 (€m) 5,752 (201) +188 (4) +21 Specialized Services -0% LFL +2% LFL +10% LFL* +17% LFL Core services & D.I.B.S. = +4.2% LFL* 9M 2022 at Impact of North LATAM EMEA Specialized Change in 9M 2023 constant Covid Ame
Slide 18: Financial flexibility and optimized capital allocation
Financial flexibility and optimized capital allocation • Debt o Amount: Net debt/EBITDA ratio of ~2.0x based on est. 2023 aggregated figures, expected to quickly deleverage to est. ~1.5x by year-end 2024 o Cost: < 4.5% after acquisition, vs. < 3% before acquisition o Maturity: ~4 years, with no sign
Slide 19: Financial flexibility and optimized capital allocation
Financial flexibility and optimized capital allocation Nearly €600m returned to • M&A strategy shareholders by year-end 2023 o Specialized services/BPO/ITO/Consulting o Mid-size companies with strong management and financials o Base case scenario: resuming in late 2024 Dividends • Cash return to sha
Slide 20: Hyperinflation
Hyperinflation Principle and impact on Teleperformance growth Principle Restatement of financial statements for companies located in countries impacted by hyperinflation Flow denominated in local currencies, translated in € and adjusted with price evolution under IFRS 29 Methodology Use of the CPI p
Slide 21: Contents
Contents 01. The New Teleperformance – Daniel Julien, Chairman & CEO 02. Third-quarter 2023 and YTD financial review – Olivier Rigaudy, Deputy CEO & CFO 03. Conclusion 04. Q&A 21
Slide 22: Conclusion
Conclusion • In 2023, Teleperformance expects to grow its revenue on a LFL* basis and its margins in a volatile environment • Majorel acquisition positions Teleperformance on a springboard to build the next wave of growth and innovation of the Group • The New Teleperformance 2024-2027 master plan wi
Slide 23: Contents
Contents 01. The New Teleperformance – Daniel Julien, Chairman & CEO 02. Third-quarter 2023 and YTD financial review – Olivier Rigaudy, Deputy CEO & CFO 03. Conclusion 04. Q&A 23
Slide 24: Inspired to be The bes | Teleperformance
Inspired to be The bes | 7 Teleperformance