AND ACTIONS TAKEN IN RESPONSE TO COVID-19 * January 1, 2020 March - - PowerPoint PPT Presentation

Q1 2020 REVENUE* AND ACTIONS TAKEN IN RESPONSE TO COVID-19

* January 1, 2020 – March 31, 2020

Conference Call April 28, 2020

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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 of these factors and uncertainties, please refer to the “Risk Factors” section of our Registration Document, available at www.teleperformance.com. Teleperformance undertakes no obligation to publicly update or revise any of these forward-looking statements.

Disclaimer

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Key facts and figures

▪ Measures taken to overcome the global health crisis with three priorities

• Protecting employees: 100% compliance with all hygiene standards in the

Group‘s 80 countries and +155,000 employees working from home, i.e. 66% of the operational workforce, vs c.5,000 at end-2019

• Protecting jobs by supporting brands and governments in ensuring business

continuity: 90% of clients served by home-working employees

• Protecting the Group and strengthening liquidity: launch of a cost reduction

annual program of around €250 million, over €1.5 billion in liquidity, including additional lines of credit secured for €655 million, and BBB- rating with a stable

• utlook confirmed by S&P in April

Q1 2020 revenue

▪ Sustained growth in Q1 2020: +6.2% LFL growth in revenue, despite the effect of Covid-19 on operations

• Rapid growth in January and February
• Flat performance in March due to first Covid-19 impact

Q1 2020 revenue

Sustained growth in revenue despite Covid-19

Revenue growth in the first quarter remained strong: up +6.2% LFL

• Sustained growth above +7% like-for-like in January & February
• Stable performance in March due to the impact of the health crisis on the second half of the month

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€ millions Like-for-like Reported

€/$ exchange rate (12-months average) €1 = US$1.10 €1 = US$1.14

Revenue 1,352 1,271 +6.2% +6.4% Change Q1 2020 Q1 2019

1,271 1,273 1,352 +2 +79

Q1 2019 Currency effect Q1 2019 at constant exchange rates Like-for-like growth Q1 2020

• Revenue growth: +6.4% as reported

and +6.2% like-for-like

• Slightly favorable currency effect:

gains in the US dollar mainly offset by declines in the Brazilian real, the Colombian peso and the Argentine peso against the euro

Q1 2020 revenue

Revenue growth analysis

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+6.2% lfl

Like-for-like* Reported Core Services & D.I.B.S. 1,179 1,105 +6.8% +6.6%

• EWAP

431 400 +4.8% +7.8%

• Ibero-LATAM

356 316 +18.1% +12.5%

• CEMEA

274 263 +3.9% +4.2%

• India & Middle East

118 126

• 7.0%
• 6.6%

Specialized Services 173 166 +2.2% +4.9% Total 1,352 1,271 +6.2% +6.4% Change (%) Q1 2020 Q1 2019 Revenue (€ m)

Q1 2020 revenue

Revenue by activity

Core Services & D.I.B.S. LFL growth: +6.8%:

• Sustained improvement in business in

January & February

• Revenue growth remained positive in

March, although limited and uneven across regions

Specialized Services lfl growth: +2.2%:

• Significant decline in March due mainly to

the impact on TLScontact of travel bans and border shutdowns

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* At constant exchange rates and scope of consolidation

400 431 Q1 2019 Q1 2020

Q1 2020 revenue

Core Services & D.I.B.S. – English-speaking market & Asia-Pacific (EWAP)

• Satisfactory revenue growth in the first two

months of the year

• Very slight growth in March, despite the initial

impacts of Covid-19 in North America, where most segments were impacted, except for healthcare, the Internet services and automotive industries. In the US, 90%

• f

employees currently work at home

• Operations in APAC progressed at a good pace:

very strong growth in Malaysia along Q1 and return to solid revenue growth in March in China

• Revenue still down in the UK, despite good

growth in March due to the implementation of Covid-19 hotline services for the government

+4.8% lfl

Q1 2020 vs. Q1 2019 (€m)

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316 356 Q1 2019 Q1 2020

Q1 2020 revenue

Core Services & D.I.B.S. – Ibero-LATAM

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• Double-digit lfl growth in March, despite a

Covid-19 related slowdown compared with the first two months

• Colombia, Brazil, and nearshore business in

Mexico and Spain were the main growth drivers

• Financial services, e-tailing and the Internet

services industry expanded at a good pace

• Quick

implementation

• f

work-at-home solutions: the best penetration rate (nearly 80%), compared with other Group regions and close to 100% in Portugal

+18.1% lfl

Q1 2020 vs. Q1 2019 (€m)

Q1 2020 revenue

Core Services & D.I.B.S. – Continental Europe & MEA (CEMEA)

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263 274 Q1 2019 Q1 2020

• Sluggish growth in March: less harsh impact of

Covid-19 than in other regions, though highly contrasted situations from one country, or one industry, to another

• Business contracted sharply in March in the

countries with the strictest lockdown policies, such as Italy and Tunisia

• Steady

increases in revenue in

• thers

countries: multilingual hubs in Greece, Scandinavia as well as Turkey, Egypt and Russia, where the Group recently opened new sites

+3.9% lfl

Q1 2020 vs. Q1 2019 (€m)

126 118 Q1 2019 Q1 2020

Q1 2020 revenue

Core Services & D.I.B.S. – India & Middle East

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• Activities in March contracted sharply, due

to the drastic lockdown measures in India, with a number of site closures during the month

• Rapid expansion of work-at-home solutions

to meet client demand has helped minimize this impact. To date, nearly 60% of the agents in India work at home.

• International offshore contracts have been

prioritized

• Terminations of the less profitable domestic

contracts have accelerated in March

• 7.0% lfl

Q1 2020 vs. Q1 2019 (€m)

166 173 Q1 2019 Q1 2020

Q1 2020 revenue

Specialized Services

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• LanguageLine Solutions business was the

main growth driver: a double digit growth in Q1 supported by its solid interpreters working from home delivery model

• Sharp decline in revenue of TLScontact,

notably in March, when operations were reduced by half

+2.2% lfl

Q1 2020 vs. Q1 2019 (€m)

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Q1 2020 revenue

Outlook

▪ Margin will be negatively impacted in H1, especially in Q2 ▪ Ongoing positive commercial momentum ▪ No annual financial guidance provided at this stage ▪ Tackling H2 2020 with confidence based on:

• measures taken to weather the storm and prepare the after crisis period
• resumption of existing client and supporting new clients acquired during the crisis

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APPENDICES

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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. EBITDA before non-recurring items (Earnings before Interest, Taxes, Depreciation and Amortization): Operating profit before depreciation and amortization, amortization of intangible assets acquired as part of a business combination, goodwill impairment charges and non-recurring items. EBITA before non-recurring items (Earnings before Interest, Taxes and Amortization): Operating profit before amortization of intangible assets acquired as part of a business combination, goodwill impairment charges and non-recurring items. Non-recurring items: Principally comprises restructuring costs, incentive share award plan expense, costs of closure of subsidiary companies, transaction costs for the acquisition of companies, and all other expenses that are unusual by reason of their nature or amount. Net free cash flow: Cash flow generated by the business - acquisitions of intangible assets and property, plant and equipment net of disposals - financial income/expenses. Net debt: Current and non-current financial liabilities - cash and cash equivalents. Diluted earnings per share (net profit attributable to shareholders divided by the number of diluted shares and adjusted): Diluted earnings per share is determined by adjusting the net profit attributable to ordinary shareholders and the weighted average number of

• rdinary shares outstanding by the effects of all potentially diluting ordinary shares. These include convertible bonds, stock options and incentive

share awards granted to employees when the required performance conditions have been met at the end of the financial year.

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