Teleperformance Se · EURONEXT:TEP
Teleperformance — H1 2024 Earnings Presentation
26 slides from Teleperformance's earnings presentation, Jul 30, 2024
Slide 1: 2024 First-Half Results
2024 FIRST-HALF RESULTS January 1, 2024 – June 30, 2024 July 30, 2024
Slide 2: Disclaimer
Disclaimer 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 de
Slide 3: 2024 First-Half Highlights
2024 First-Half Highlights 3
Slide 4: Key developments
Key developments Momentum in the business ▪ Acceleration in growth in Q2 ▪ Smooth integration of Majorel o Acceleration of the plan execution in Q2 2024 with main impact expected in H2 2024 o Confirming expectation to generate €100m and €150m of cost synergies on a run-rate basis by 2024 and 2025 re
Slide 5: Solid H1 results led by accelerating growth and increased FCF
Solid H1 results led by accelerating growth and increased FCF A solid set of results in line with annual objectives ▪ Growth as reported in H1 2024: +28.2% yoy ▪ Pro forma growth in H1 2024 yoy: +1.7% yoy, with an acceleration in Q2 (+2.4%), on track to achieve annual financial objectives in 2024 ▪
Slide 6: Resilient performance driven by underlying diversified and profitable businesses
Resilient performance driven by underlying diversified and profitable businesses Growth Profitability and cash generation ▪ Specialized Services continuing to expand at a ▪ First effect of cost synergies from the integration of sustained pace Majorel ▪ Resilient and diversified client portfolio ▪ Po
Slide 7: Teleperformance innovation
Teleperformance innovation TPs vision on AI & CX Successful proofs of concept Case study 1: TP AI solutions deployed for a UK based Case study 2: TP Interact solution deployed for an digital bank, driving augmented volumes and client American Internet domain registrar and web hosting penetration com
Slide 8: 2024 First-Half Results
2024 First-Half Results 8
Slide 9: 2024 first-half results
2024 first-half results P&L summary €m H1 2024 H1 2023 Pro forma As reported €/$ exchange rate (6-month average) €1 = US$1.08 €1 = US$1.09 Revenue 5,076 5,028 3,960 Reported growth +28.2% (1) Pro forma growth +1.7%* EBITDA before non-recurring items 982** 974 807 % of revenue 19.4% 19.4% 20.4% EBITA
Slide 10: Continued incremental revenue growth in H1
Continued incremental revenue growth in H1 (€m) +28.2% growth +1,068 5,028 (35) 4,993 +83 5,076 3,960 +1.7% pro forma* H1 2023 Majorel H1 2023 pro Currency effect H1 2023 pro Pro forma H1 2024 forma forma at growth* constant exchange rates * Including +10bps of hyperinflation effect, with H1 2023 pr
Slide 11: Growth momentum expected to accelerate in H2 2024
Growth momentum expected to accelerate in H2 2024 Pro forma revenue (€m)* 2,579 15% 2,547 2,525 2,542 2,534 2 600 2,481 13% 2 400 11% 2 200 +11% 9% 2 000 7% 1 800 +2%/+4%** 5% 1 600 +6% +2% 3% 1 400 +4% 1 200 1% +1% +1% 1 000 -1% Q1 Q2 Q3 Q4 Q1 Q2 FY 2024 2023 2024 Outlook Teleperformance Pro forma
Slide 12: Growth driven by Specialized Services and activities in APAC and India
Growth driven by Specialized Services and activities in APAC and India Revenue pro forma growth analysis by activity and region (€m) +79 5,076 4,993 (37) +41 -2% PF +2% PF +12% PF H1 2023 pro forma at Americas EMEA & APAC Specialized Services H1 2024 constant exchange rates 12
Slide 13: Revenue well-balanced by vertical and region
Revenue well-balanced by vertical and region H1 2024 revenue split by activity and region H1 2024 revenue mix by vertical* H1 2024 revenue mix by main business lines Specialized Energy Automotive Services Specialized Services Governments Media, Entertainment & Gaming Other Care Americas Healthcare T
Slide 14: EBITA by activity
EBITA by activity H1 2024 H1 2023 Recurring EBITA (€m) Pro forma** As reported €m Margin €m Margin €m Margin - Americas 249 12,0% 259 12,3% 230 11,9% - Europe, MEA & Asia-Pacific 209 9.3% 200 8,9% 115 8,5% - Holdings* 19 N/A 46 N/A 45 N/A Core Services & D.I.B.S. 477 11,0% 505 11.6% 390 11.8% Specia
Slide 15: Operating profitability
Operating profitability H1 2023 H1 2024 €m Pro forma As reported Change Revenue 5,076 5,028 3,960 +28.2% EBITA before non-recurring items 703 692 577 +6.3% % of revenue 13.9% 13.8% 14.6% Amortization of intangible assets (110) (64) Non-recurring items (90) (67) - Performance share plan* (48) (58) -
Slide 16: Earnings performance
Earnings performance H1 2023 €m H1 2024 Change As reported Operating profit 503 446 +12.8% Financial result (99) (74) Income tax (113) (101) Effective tax rate 28.0% 27.3% Net profit - Group share 291 271 +7.4% Diluted earnings per share (€) 4.83 4.59 +5.2% Adjusted net profit - Group share* 432 343
Slide 17: High cash flow generation
High cash flow generation H1 2023 €m H1 2024 Change As reported Cash flow* 580 450 +28.9% Change in working capital (46) (30) Net capital expenditure (86) (111) % of revenue 1.7% 2.8% Net free cash flow* 448 309 +45.0% * After lease payments, interest paid and taxes ▪ Net free cash flow : €448 milli
Slide 18: Solid financial structure
Solid financial structure • Decrease in net debt from strong net free 4,558 (448)* +348** +1*** 4,459 cash flow generation, covering dividend Lease payment and share buy-back Lease 836 779 • Net debt-to-EBITDA ratio < 2x pro forma • Strong Investment Grade S&P credit rating: BBB Net debt as of Net f
Slide 19: Balance sheet summary
Balance sheet summary €m 30/06/2024 30/06/2023 €1 = US$1.07 €1 = US$1.11 Non-current assets 8,345 8,461 o/w intangible assets 6,748 6,657 Working capital* 1,107 1,077 Total net assets 9,452 9,538 Equity 4,248 4,227 Provisions and deferred tax liabilities 745 753 Net debt 4,459 4,558 o/w lease liabil
Slide 20: 2024 outlook reaffirmed
2024 outlook reaffirmed ▪ Pro forma annual growth* of +2% to +4% ▪ Accelerated momentum in H2 2024: easier basis of comparison and increased new businesses expected ▪ EBITA margin before non-recurring items up between 10bps and 20bps on pro forma basis**: seasonality effect and acceleration of syner
Slide 21: Appendix
APPENDIX APPENDIX 1: Alternative Performance Measures APPENDIX 2: Revenue by activity APPENDIX 3: Quarterly breakdown of 2023 revenue (pro forma)
Slide 22: 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 23: Revenue by activity
Revenue by activity Revenue (€m) H1 2024 H1 2023 % change As reported Pro forma* Reported Pro forma* Core Services & D.I.B.S. 4,340 3,297 4,365 +31.6% +0.1% - Americas 2,085 1,935 2,109 +7.8% -1.7% - Europe, MEA & APAC 2,255 1,362 2,256 +65.5% +1.8% Specialized Services 736 663 663 +11.1% +12.0% Tot
Slide 24: Revenue by activity
Revenue by activity Revenue (€m) Q2 2024 Q2 2023 % change As reported Pro forma* Reported Pro forma* Core Services & D.I.B.S. 2,155 1,612 2,139 +33.7% +1.1% - Americas 1,039 949 1,034 +9.5% -0.3% - Europe, MEA & APAC 1,116 663 1,105 +68.2% +2.4% Specialized Services 379 342 342 +10.8% +10.4% Total 2
Slide 25: Quarterly breakdown of 2023 revenue (pro forma)
Quarterly breakdown of 2023 revenue (pro forma) Revenue (€m) Q1 2023 Q2 2023 H1 2023 Q3 2023 Q4 2023 Teleperformance 2,006 1,954 3,960 1,989 2,053* Majorel 541 527 1,068 536 526 Total 2,547 2,481 5,028 2,525 2,579 * Teleperformance Q4 2023 reported revenue = €2,396 million, including two months of M
Slide 26: Inspired to be The bes | Teleperformance
Inspired to be The bes | 7 Teleperformance