Teleperformance Group Overview Including Q3 2018 information - - PowerPoint PPT Presentation

Teleperformance Group Overview

Including Q3 2018 information

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

• f
• ur

Registration Document, available at www.teleperformance.com. Teleperformance undertakes no obligation to publicly update or revise any of these forward-looking statements.

2

DISCLAIMER

AGENDA

• 1. TELEPERFORMANCE

AT A GLANCE

• 2. Q3 2018 RESULTS

AND OUTLOOK

• 3. STRATEGY IN ACTION:

ACQUISITION OF INTELENET

• 4. APPENDICES

4

DETAILED AGENDA

1.

• 1. TEL

ELEPERFORMANCE AT A GLAN LANCE 2.

• 2. Q3

3 20 2018 18 RESULTS AND OUTLOOK 3.

• 3. STRA

RATEGY IN N ACTION: ACQUISITION OF F INTE NTELENET 4.

• 4. APP

PPENDICES

Teleperformance at t a glance Acquisition of

• f Inte

telenet Financial impact for

• r Teleperformance

20-23 5-11 29-32

p.

• p. 5-10

10 p.

• p. 11

11-19 19 p.

• p. 20

20-32 32 p.

• p. 33

33-54 54

Market Environment 33-37 52 Teleperformance Sh Shareholding 2018 Outl tlook and nd 2022 Financial Obje bjectives 19 38-50 Key Differentiating Factors Q3 2018 Key Figures 11-18 Alte ternative Performance Measures 53 Governance Stru Structure 51 Int ntelenet bu busi siness ss ov

• verview

24-28

1

TELEPERFORMANCE AT A GLANCE

TELEPERFORMANCE AT A GLANCE

Key milestones of a growth and transformation story…

6 TELEPERFORMANCE #1 IN FRANCE TELEPERFORMANCE #1 IN EUROPE TELEPERFORMANCE WORLDWIDE LEADER 1978

Founded in 1978 in France First listed on the Paris stock market

1986

Started

• perations in

the US

1993

Acquisitions in Argentina and Brazil

1998

Acquisition in Mexico

2002

Acquisition

• f The

Answer Group (US)

2008

Acquisition of BeCogent (UK) & Teledatos (Colombia)

2010

Full control of TLScontact

2012

Acquisition of Aegis USA (US)

2014

Acquisition of LanguageLine Solutions

2016 … STRENGTHENING ITS VERTICAL EXPERTISE AND SPECIALIZED SERVICES Starting 40 years ago,

• ngoing

growth and transformation story, either

• rganically

and through high profile acquisitions

Acquisition of Intelenet

2018 2003

Offshore programs launched

Founded in

1978

Worldwide leader with 2017 revenue of

€4.2bn 300,000

Employees Serving 160+ Markets Operations in nearly

80 countries

in 265 Languages

• Nearly 12,000 workstations opened in 2017
• New countries: Peru and Kosovo

New site in Peru Countries where TP operates New site in Kosovo

7

TELEPERFORMANCE AT A GLANCE

…to become the worldwide market leader leveraging a unique global network

8

TELEPERFORMANCE AT GLANCE

…to provide a full range of services in constant evolution

Specialized Services Core Services 85%*

EWAP 39% 15% CEMEA 20%

Ibero- LATAM 26%

Revenue by activity in 2017

* Core Services split by linguistic region:

• EWAP

English-speaking market and Asia-Pacific (the US, Canada, the UK, the Philippines, China, India, etc.)

• Ibero-LATAM

Latin American countries (Brazil, Mexico, Colombia, etc.), Portugal and Spain

• CEMEA

Continental Europe, Middle East & Africa

Core Services: Customer services Technical support Client acquisition Inbound interaction activities represents 85% of Core Services revenue Specialized Services: Online interpreting services (LanguageLine Solutions) Visa application management services (TLScontact) Accounts receivable management services (AllianceOne Receivables Management) Digital Integrated Business Services (DIBS), including: Intelenet international activities Praxidia “analytics & consulting solutions”

• Mission: Teleperformance people, “all over the world, all around the clock”, helping people address their day-to-day issues, in an

even more changing and complex environment

• A global service provider focused on the customer experience services requiring strong processes, right people and innovation

capabilities to succeed

• From Core Services to Specialized Services: strengthening the Group profile with higher added-value services

9

TELEPERFORMANCE AT A GLANCE

A global leadership recognized in the industry

Teleperformance is also active in Corporate Social Responsability and Group’s employee voluntary contribution ”Citizen of the World” program has raised close to US$34M in cash and in kind, utilized to support the communities in which Teleperformance operates Probably the most ever recognized company in the CX outsourcing industry

Over the last 5 years, Teleperformance has been recognized:

26 times by Frost & Sullivan 5 times as the leader by Everest Best Place To Work certified 26 times in 8 countries Best Employer certified 26 times in 16 countries

10

TELEPERFORMANCE FINANCIAL TRACK RECORD

… with a proven financial track record (2011-2017)

2126 2347 2433 2758 3398 3649 4180

+3,5% +6,9% +7,9% +9,9% +7,5% +7,4% +9,0%

0% 5% 10% 1000 2000 3000 4000 5000 2011 2012 2013 2014 2015 2016 2017

Revenue Group LfL growth

100 200 300 400 2011 2012 2013 2014 2015 2016 2017 Net capex

Net Free cash flow 8,5% 9,1% 9,3% 9,7% 10,3% 11,2% 13,3%

8% 9% 10% 11% 12% 13% 14% 100 200 300 400 500 600 2011 2012 2013 2014 2015 2016 2017

Current EBITA Net profit – gr. share EBITA margin

2011 2012 2013 2014 2015 2016 2017 Net capex / revenue

4.5% 4.6% 5.2% 5.7% 5.0% 5.2% 3.5%

Net Free cash flow / EBITDA

33% 31% 20% 25% 41% 42% 45% 0,0

• 0,4
• 0,3

1,1 0,8 2,6 1,9

• 1,0

0,0 1,0 2,0 3,0

• 200

300 800 1300 1800 2011 2012 2013 2014 2015 2016 PF* 2017

Net debt Net debt /EBITDA * LanguageLineSolutions consolidated on a 12 months basis

2

Q3 2018 RESULTS AND OUTLOOK

Q3 2018 REVENUE

Continued strong revenue growth

12

▪ Solid revenue growth in Q3 2018, both on reported and a like-for-like

* At constant exchange rates and scope of consolidation

Like-for-like* Reported

€/$ exchange rate (9 months average) €1 = US$1.20 €1 = US$1.11

9M (to September 30) 3,146 3,096 8.3% 1.6% Q3 1,076 1,014 8.3% 6.1% 2018 2017 Change

Q3 2018 REVENUE

Revenue growth analysis in 9M 2018

13 ▪ 9M revenue growth: + 1.6% as reported and + 8.3% like-for-like ▪ Negative foreign exchange impact mainly coming from the weakening of the US dollar, Brazilian real and Argentine peso against the euro

3,096 2,905 3,146 (191) +240 +1

9 months 2017 Currency effect 9 months 2017 at constant exchange rates Like-for-like growth Change in scope 9 months 2018

+ 8.3% lfl

Q3 2018 REVENUE

Revenue by activity

14 ▪ Core Services 9M like-for-like growth: + 8.9%, driven by continued strength in Iberico-LATAM and confirmed pick-up in CEMEA ▪ Specialized Services 9M like-for-like growth: + 4.8%, supported by LanguageLine Solutions in North America

* At constant exchange rates and scope of consolidation

9M Q3 9M Q3

Core Services 2,672 917 2,614 861 8.9% 9.3% 2.2% 6.5%

• English-speaking market & Asia-Pacific

1,137 397 1,195 383 1.2% 3.0%

• 4.9%

3.6%

• Ibero-LATAM

843 283 801 266 16.3% 14.7% 5.3% 6.5%

• Continental Europe & MEA

691 237 618 212 14.4% 14.3% 11.9% 11.7% Specialized Services 474 159 482 153 4.8% 3.0%

• 1.7%

3.7%

Total 3,146 1,076 3,096 1,014 8.3% 8.3% 1.6% 6.1% Revenue (€ M)

2018 2017

Change (%) 9M Q3 9M Q3

Like-for-like* Reported

383 397

Q3 2017 Q3 2018

1,195 1,137

9M 2017 9M 2018

Q3 2018 vs. Q3 2017 (€ M)

Q3 2018 REVENUE

Core services – EWAP revenue growth analysis

15

• Pick-up in growth compared with the start of the year, mainly led by North

America

• In 9M, Teleperformance continued to successfully diversify its client portfolio

in the region in terms of verticals: e-services, consumer goods, consumer electronics, energy & utilities are the most dynamic segments

• In Asia, confirmation of the return to a solid pace of growth underway since

the start of 2018, driven by China and India

• Uncertainty in the UK caused by Brexit: potential clients held off on
• utsourcing decisions

9M 2018 vs. 9M 2017 (€ M)

+ 1.2% lfl + 3.0% lfl

801 843

9M 2017 9M 2018

266 283

Q3 2017 Q3 2018

Q3 2018 vs. Q3 2017 (€ M)

Q3 2018 REVENUE

Core Services – Iberico-LATAM growth analysis

16

• Sustained like-for-like growth in both 9M and Q3
• Main

growth driver remains Portugal, with fast development

• f

multilingual hubs serving major multinationals

• Both nearshore and domestic activities in Mexico and

Colombia are well oriented

• Rapid ramp up of operations in the Peruvian market

9M 2018 vs. 9M 2017 (€ M)

+ 16.3% lfl + 14.7% lfl

212 237

9M 2017 9M 2018

618 691

9M 2017 9M 2018

Q3 2018 vs. Q3 2017 (€ M)

Q3 2018 REVENUE

Core Services – CEMEA revenue growth analysis

17

• Very good sales dynamic among multinational clients and fast-

growing local market leaders in a wide range of verticals

• Significant revenue growth in Greece, Egypt, Turkey an Eastern

Europe

• French activities benefited from the ramp up of new contracts,

notably in energy and e-service, and confirmed the return to satisfactory growth begun in the first half

• Back to growth in Scandinavia, in Germany and in Italy over

9M

9M 2018 vs. 9M 2017 (€ M)

+ 14.4% lfl + 14.3% lfl

153 159

Q3 2017 Q3 2018

482 474

9M 2017 9M 2018

Q3 2018 REVENUE

Specialized Services - revenue growth analysis

18

• LanguageLine Solutions is the main driver for 9M specialized

services revenue growth

• TLScontact:
• Revenue growth impacted in Q3 2018 by a change in billing

method for visa applications processed on behalf of the British government (UKVI)

• Positive momentum for TLScontact profitability
• LanguageLine Solutions and TLScontact account for c. 80% of

Specialized Services revenue

• Stable debt collection revenue in North America

9M 2018 vs. 9M 2017 (€ M) Q3 2018 vs. Q3 2017 (€ M)

+ 3.0 % lfl +4.8% lfl

OUTLOOK 2018

Full-year targets

19 ▪ Raising annual revenue growth objective: ▪ Above + 8.0%, like-for-like ▪ Confirming annual recurring EBITA margin objective: ▪ Above 13.5% ▪ Continued strong net free cash flow ▪ Consolidation of Intelenet as from October 1, 2018

3

STRATEGY IN ACTION: ACQUISITION OF INTELENET

21

ACQUISITION OF INTELENET

Teleperformance strengthens its business and financial profile by acquiring Intelenet (1)

Teleperformance is significantly strengthening its added-value Specialized Services business Teleperformance is reinforcing its presence in high potential markets and verticals

• Significantly strengthening the Group’s offering and capabilities

with Intelenet’s integrated solutions:

• Solution design with a large consulting force covering a wide range of expertise
• Digital integration based on robot process automation (RPA) technology
• Operational excellence, with 55,000 employees across India, the Philippines, the UAE,

Poland and Guatemala

• Integrating experienced and successful Intelenet top management
• In Asia, notably in India
• Continuing to diversify its client vertical portfolio vertical portfolio

By acquiring Intelenet, a high-end business services and digital transformation solution provider:

22

ACQUISITION OF INTELENET

Teleperformance strengthens its business and financial profile by acquiring Intelenet (2)

* With Intelenet consolidated on a 12 month proforma basis

Teleperformance is enhancing value creation for its shareholders and is well on the path to achieve its 2022

• bjectives
• Strengthening top line growth
• Enhancing Group EBITA margin
• Forecasting an accretive impact of around 10% on

earnings per share excluding goodwill in 2018*

Accretive operation Teleperformance well on path to achieve 2022

• bjectives
• On track with the Group’s strategic plan, with an

increased contribution from the Specialized Services business, already estimated at around 20% of the Group’s revenue in 2018*

• Well on the path to achieve revenue of €6 billion+ and

EBITA of €850+ million by 2022

23

ACQUISITION OF INTELENET

Intelenet acquisition is ticking the five main strategies boxes of the Teleperformance strategic plan

Organic growth

External growth Geography

• Continued expansion into BRICS and MIST countries

Vertical Innovation High-value Consulting & Analytics solution Strategic acquisitions

• Strengthen sector expertise in high potential verticals
• Digital and omnichannel integration
• Development of a new high value-added consulting offering

in the area of customer experience (Praxidia, beginning of 2018)

• Targeted acquisitions in high-value specialized services

Intelenet acquisition

Founded in 2000 and based in Mumbai A leading global provider of high-end business services in a growing industry Annual revenue: US$449 million* EBITDA margin: 18.5%* Positive momentum 55,000 employees Worldwide footprint: 8 countries 4 main service types provided in 25 languages 140+ clients in 6 main client verticals

Intelenet Snapshot 24

INTELENET BUSINESS OVERVIEW

A global, expert and diversified business model

Revenue breakdown by service type (2019B) Revenue breakdown by client vertical (2019B)

Industry - Specific Integrated Services 47% Customer Managemen t Services 34% Human Resources Outsourcing 9% Finance & Accounting, Other 10% BFSI* 45% Travel, Transp. & Hospitality 18% Telecom, Media & Technology 10% Public sector 10% Healthcare 6% Other, incl. Retail and Manufacturing 12% United States 35% India** 33% Europe

• incl. UK

21% Middle East 9% APAC & Other 2%

Intern rnational business clients* 67% 67%

Revenue breakdown by client geography (2019B)

* global clients with delivery centers in India (offshore), the Philippines (offshore), Europe, the Middle East, and the Americas **India-in-country business segment (all customers in India, all delivery in India) * As of March 31, 2018

25

INTELENET BUSINESS OVERVIEW

A comprehensive suite of bpm solutions to create further value for clients

Transaction Processing Vertical Human Resources Outsourcing Finance & Accounting Services Consulting/ Knowledge Services Digital Offerings Customer Management Services 2 vertical examples: Healthcare: transaction processing related to Revenue Cycle Management in the US healthcare system Financial services: transaction processing related to product underwriting Workforce administration service outsourcing Payroll services outsourcing Claims processing for travel Risk management Procure to pay (vendor payment processing) Order to cash (client order processing) E-services Social media Contact center Robotics solutions Artificial intelligence Machine learnings Analytics services Guidance on operational services Process optimization Core Business services Next-Gen capabilities

Creating further value for the client

• 1. Helping blue chip clients
• Drive revenue growth
• Deliver operating efficiencies
• Reduce cost of operations
• Increase customer satisfaction
• 2. With a global delivery approach combining
• Operational excellence
• Process automation
• Consulting capabilities

26

INTELENET BUSINESS OVERVIEW

Core value proposition to clients

Cost Benefit Potential

Value Drivers – Technology, Analytics and Process Consulting (TAPTM)

100

40 – 60%

Operating rigor Process

• ptimisation

Automation Labor cost arbitrage

• Solutions driven by Technology and Knowledge Services (Analytics,

Consulting) to deliver additional value to the client

• Agile and responsive to client needs in a dynamic environment
• Track record of delivering excellence and long-term relationships

Professionals with strong analytics expertise and Six Sigma background coupled with excellent business acumen Proven track record of developing best- in-class Business Intelligence and Management Information solutions plus tools & technology in Analytics

• Dedicated team of ~200

digitization experts

• Innovation capabilities
• Robust technology enablers

Operational Excellence Analytical Consulting Tech Tools

Process Consulting Technology Analytics

(Current Cost Indexed to 100)

100 5% 5 – 10% 10 -15% 25 – 40%

27

INTELENET BUSINESS OVERVIEW

Case studies

Objective: The client was looking for a BPM provider to move critical customer operations offshore, including scheduling changes, exchanges, refunds and duplicate bookings. The client was also looking for reduced costs and increased efficiency through automation Intelenet solution

• Six Sigma and lean initiatives deployed to increase efficiency

and ensure process standardization

• AI-based automation tools were deployed, notably to

calculate fares, refunds and cancellation fees; workflow tool introduced to eliminate errors due to missed deadlines and automate airline and hotel promotion pricing, eliminating manual effort Examples of results Cost savings driven by better utilization of FTE Fewer missed deadlines

IN BANKING IN TRAVEL, TRANSPORT. & HOSPITALITY

Objective: The client wanted to set up a mortgage processing unit from an offshore location Intelenet solution

• Business process consultants and experts setting an action

plan to build a new organization from scratch in terms of process and technology

• Continuous improvement framework was designed and

deployed – workforce was trained on Lean Six Sigma

• Technology, Analytics & Process optimization teams were

deployed to identify opportunities and drive project execution Examples of results

• Reduced processing time
• Reduced mortgage offer cycle from 11 days to 48 hours

28

INTELENET BUSINESS OVERVIEW

Intelenet acquisition case

Strengthening Teleperformance’s profile & assets and materializing the Group’s long-term strategy

• 1. A global leader in business services and digital transformation solutions, with deep domain knowledge, including automation,

a best-in-class operational framework and a comprehensive range of service offerings to meet client needs

• 2. Highly skilled team with 200+ data scientists, process champions, and business consultants providing high-end services
• 3. Market leading position across diversified industry verticals
• 4. Strong, balanced client portfolio with high average relationship tenure and contract renewal rates
• 5. The fastest growing company in the industry with best-in-class margins and a strong cash flow profile
• 6. A stable, proven and experienced leadership team, which has successfully led the firm through its development since 2000

Intelenet’s complementary differentiating assets to enhance Teleperformance’s market and client partnership positioning, as well as its client stickiness and thus growth sustainability and profitability

29

FINANCIAL IMPACT FOR TELEPERFORMANCE

Growth and margin improvement (2015-2018)

FY15

(ended March 31, 2015)

FY16

(ended March 31, 2016)

FY17

(ended March 31, 2017)

FY18

(ended March 31, 2018)

Revenue (US$m) 364 422 414* 449 EBITDA 55 61 72 83 EBITDA margin 15.1% 14.5% 17.4% 18.5%

* termination of non-profitable contracts in the UK

Intelenet financial profile

30

FINANCIAL IMPACT FOR TELEPERFORMANCE

Financial profile and outlook by business

Revenue (US$m) FY 2018

(ended March 31, 2018) Normative annual growth

Core Services (India) 150 + 10% / + 12% Specialized Services 299 + 10% / + 12% Total 449 + 10% / + 12% EBITDA FY 2018

(ended March 31, 2018)

Margin objective (US$m) Margin

Core Services (India) 12 8.0% 8% / 10% Specialized Services 71 23.5% ~25% Total 83 18.5% ~20%

Strong growth and profitability momentum No synergies factored in

Specialized Services 67% Core Services (India) 33% Specialized Services 85% Core Services (India) 15%

Revenue breakdown by business EBITDA breakdown by business

31

FINANCIAL IMPACT FOR TELEPERFORMANCE

Accretive impact

TELEPERFORMANCE 2018 OBJECTIVES INTELENET

Acquisition impact on TELEPERFORMANCE

Annual like-for-like growth ≥+ 6% + 10% / + 12% > + 1% EBITDA margin EBITA margin Cash conversion rate* Earnings per share**

• ≥13.5%
• ≈20%

≈15% >55% + 20 bps + 20 bps ≈+ 10%

Accretive impact – No synergies factored in Positive impact on the Group’s initial financial annual objectives for 2018

* EBITDA/net free cash flow before interest paid ** 2018 proforma, before amortization of goodwill

32

FINANCIAL IMPACT FOR TELEPERFORMANCE

Key transaction data and financing

• Key transaction data
• 1. Enterprise value: US$1.0 billion
• 2. Fully financed through debt
• 3. Transaction closed on October 4, 2018
• Teleperformance financial structure and cash flow generative profile
• 1. The leverage ratio (net debt/EBITDA) should be below 2.5 on a proforma basis at end-2018
• 2. Expected to revert to below 1 by 2021
• 3. Financial profile of the acquisition will strengthen the Group’s ability to generate strong

cash flow to reduce debt quickly and/or finance future growth

4

Market Environment Key Differentiating Factors Governance Structure Teleperformance Shareholding Alternative Performance Measures

APPENDICES

34

MARKET ENVIRONMENT IN CORE SERVICES

A sizeable customer experience (CX) market with outsourcing penetration remaining low

78% 75% 22% 25%

2010 2017

Outsourced In-house

280-300 310-335 100% =

* Overall contact center spend including payment collections - Source: Everest (2017) ** Source: Frost & Sullivan (2017)

Contact center sourcing mix* (2010-2017)

$bn

• Growing number of interactions worldwide
• Total market up ~+ 2-3 % p.a. (in $)

More interactions driven by mobility revolution and new digitized activities

• Outsourcing market up ~+ 5% p.a.** (in $)
• Outsourcing market up ~+ 5% p.a.** (in $)
• Increasing share of outsourcing
• The industry has evolved from low complexity work to a broad

range of services that drives the customer experience

• Outsourcing providers are gaining share globally, delivering

greater value than in-house centers in a more complex and demanding environment: quality, security, digitization,

• mnichannel, globalization
• Dynamic regions

35

MARKET ENVIRONMENT IN CORE SERVICES

A sizeable market with compelling mid-term market growth

Global outsourced CX market* (2017-2020) $bn 2017 Global outsourced CX market – Breakdown by region* (%)

* Excluding payment collections - Source: Frost & Sullivan (2017)

66.1 68.1 71.7 75.1 78.8 82.6 3.1% 5.3% 4.7% 4.9% 4.9%

• 7,00%
• 2,00%

3,00% 30 50 70 90

2015 2016 2017e 2018e 2019e 2020e

Annual growth

APAC offshore 16% APAC 22% EMEA 25% LATAM 11% LATAM

• ffshore

4% North America (dom.) 22%

North America 42% Regions CAGR 2017 – 2020 North America (NA) dom. LATAM nearshore for NA APAC offshore for NA + 1.8% + 7.1% + 7.0% Total NA + 4.4% LATAM dom. + 4.5% Asia-Pacific dom. + 6.0% EMEA + 4.6% Total outsourced market + 4.8%

• Global outsourced customer experience (CX) market size in 2017: 72bn US dollars*
• North America is the largest market, with 42% of the volumes
• The fastest growing markets are LATAM nearshore for North America, and Asia-Pacific offshore and domestic

COMPETITIVE ENVIRONMENT

Evolution of the competitive environment

36

• Worldwide leader in its core services market with a unique global positioning, as more diversified than competitors
• A still fragmented market, with Teleperformance market share at 6%, being consolidated by its leaders
• Competitive environment enlarged to Consulting, BPM and IT services

Accenture Cap Gemini Wipro Cognizant Genpact Tata Consulting Services (TCS) Global players in Consulting and Strategy BPO companies based in India, IT service suppliers Customer Experience Management

37

MARKET ENVIRONMENT IN SPECIALIZED SERVICES

Fast growing niche markets

*LEP (Limited English Proficiency) Source: Common Sense Advisory, Steer Partners; U.S. National Population and LanguageLine Solutions estimates

US over-the-phone interpreting market (2012-2018e) World visa application management market outsourcing rate in 2016 – in %*

• C. €500M
• C. €700M
• C. €900M

2012 2015 2018e

23.1 31.8 47.0 63.2 67.3

1980 1990 2000 2014 2020 31% 69%

Outsourcing In-house

30% 10% 60%

VFS TLScontact Others

Market share of the main players in the global markets of visa application management in 2017 – in %*

* In terms of visa application number Source: D&B Visa Application Outsourcing report (2013) and Group estimates

Increase in the number of non-English speakers* in the USA c.12% c.9%

11.0% 13.8% 17.9% 21.1% 20.1%

Annual growth rate

• LanguageLine Solutions is the leader of over-the-phone and video interpreting solutions in North America with a market share of 60%
• TLSContact is a major player in the global outsourced visa application management market (40 millions visa applications)

38

KEY DIFFERENTIATING FACTORS

Strong diversified and more digitized verticals

AUTOMOTIVE

TELECOMMUNICATION

FINANCIAL SERVICES INSURANCE TRAVEL & ACCOMODATION UTILITIES RETAIL & E-RETAIL IT & IoT GOVERNMENT

New Economy* 10%/90% 3%/97%

2017 2013

16% 3% 6% 7% 7% 12% 14% 14% 7% 14%

0% 10% 20% 30% 40%

2013 2017

* Revenue generated by pure e-players among Teleperformance’s top 50 clients

Change in the revenue* breakdown by vertical (2017 vs 2013) New Economy contribution* to total revenue (2017 vs 2013) Telecommunications: 21%

* Excluding LanguageLine Solutions revenues in 2017, company acquired on September 19, 2016

39

KEY DIFFERENTIATING FACTORS

A strong and diversified client base

10% 38% 70% 7% 34% 68% 6% 31% 63% 8% 30% 61%

0% 20% 40% 60% 80%

Top1 Top10 Top 50

2007 2013 2015 2017

Client portfolio concentration* % of revenue (2007-2017)

In 2017 - Top20: 43% Top100: 75%

• Increasingly diverse client base, now more

than 850 clients*

• Average tenure of client relationship (Top 50)

is 10 - 12 years

• Lower concentration caused notably by

diversification in new verticals, with recent significant accounts gained in the New Economy in particular

• Global accounts represent nearly 40% of

total Group revenue

• Multi-year trend of lower revenue concentration
• Increased contribution from global accounts

* Excluding LanguageLine Solutions revenues in 2017, company acquired on September 19, 2016

45% 24% 31%

EWAP CEMEA Ibero-LATAM 40

KEY DIFFERENTIATING FACTORS

Core services: strong group geographical and sourcing mix

• A geographical mix reflecting Teleperformance worldwide footprint
• Continued increase in offshore revenue contribution, now representing 40 % vs 35 % in 2015

35% 38% 40% 65% 62% 60% 2015 2016 2017 Nearshore/offshore

* Split of the core services revenue in 2016 and 2017

Core Services revenue by region (2017) Core services revenue by sourcing (2015-2017)

KEY DIFFERENTIATING FACTORS

Core services: a unique offering of worldwide domestic/nearshore/offshore solutions

41

• With a network of 34 offshore/nearshore locations

around the world, Teleperformance is the only industry player able to offer worldwide integrated Domestic, Nearshore & Offshore solutions

≈ 60%

• f the total Group

employees

Country Employees 2017

1 Philippines 36,086 2 United States 32,924 3 Mexico 17,658 4 Brazil 16,638 5 Colombia 15,171 6 India 12,893 7 Portugal 9,022 8 United Kingdom 8,558 9 Tunisia 6,068 10 Greece 5,965

42

KEY DIFFERENTIATING FACTORS

Becoming a reference in security and data privacy in the industry

• IAPP (International Association of Privacy Professionnals)
• Teleperformance won the prestigious global HPE-IAPP Privacy Innovation

Award for the Privacy Operations category in November 2017

• This award recognizes organizations that use privacy to differentiate

themselves and build customer and citizen trust

• “The HPE-IAPP Privacy Innovation Awards spotlight unique programs and

services in global privacy and data protection. Teleperformance has been honored as a fine example of the best our field has to offer,” said IAPP President and CEO J. Trevor Hughes.

• BCR (Binding Corporate Rules)
• Teleperformance received European Union Binding Corporate Rules

(BCRs) Approval, as both a Data Controller (Group’s employee data) and as a Data Processor (the data of Group’s clients and their customers) in February 2018

• Teleperformance is the only BPO company that has gained approval for

BCRs

• The BCR is a legal document and outlines the Group’s compliance, privacy

and security program It is binding agreement between each subsidiary within the group

• The BCR approval is one aspect of Teleperformance becoming GDPR

(General Data Protection Regulation) compliant by May 2018

43

KEY DIFFERENTIATING FACTORS

Teleperformance added-value analytics & operational consulting solutions

a Teleperformance company

FROM THE FRONT LINE EFFICIENCY

Multidisciplinary

• 6 Sigma
• Psychosocial
• Project leaders

Process analysts

“CX LAB” 180,000 surveys/year “trend analysis by verticals” PREDICTIVE MODELS & ENTERPRISE FEEDBACK MANAGEMENT

SUBJECT MATTER EXPERTS Senior consultants

“COMPLEXITY & COSTS” CUSTOMER SERVICE ORGANIZATION ASSESSMENTS CUSTOMER INSIGHTS & EXPERIENCE TRANSFORMATION

KEY DIFFERENTIATING FACTORS

The multilingual hubs: serving the European and Asian markets on behalf of multinational clients

44 What is a multilingual hub?

• A solution that gathers native speakers

from different locations in one hub to deliver the best service for Pan-European and Asian mid-size programs

• A solution allowing serving 140 countries

from 5 centralized locations in more than 40 languages Latest premium multilingual hub opened in Malaysia in May 2017, offering services in 25 languages

Greece Malaysia Portugal Egypt Netherlands

KEY DIFFERENTIATING FACTORS

Case study: multilingual hub in Portugal (1)

45

SECTORS CHANNELS SERVICES Inbound Outbound Email Chat Face-to- Face Social Media Customer Service Customer Acquisition IT Service Desk Technical Support Backoffice Travel & Tourism Financial Services Insurance Telecom Gaming Retail ecommerce Consumer Electronics Media Technology 85+ CLIENTS 29 LANGUAGE S FOUNDED IN 1994 8 CONTACT CENTERS 7,500 EMPLOYEES 6,915 WORKSTATION S

ATLANTICO OCEANARIO CITY CENTER

KEY DIFFERENTIATING FACTORS

Case study: multilingual hub in Portugal (2)

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• Well educated population
• High fluency in foreign languages and high number of foreign families
• Current and sustainable competitive cost
• Social peace and political stability

What makes Lisbon the perfect location?

911 697 582 453 428 308 220 112 55 40 30 29 27 20

French German Brazilian Spanish Dutch Italian English Nordics Others Arabic Russian Polish Farsi Turkish

• Flexible labor market
• Exotic tourist destination
• Lisbon airport is centrally located and well served for short and long flights

Number of agents per foreign language

KEY DIFFERENTIATING FACTORS

Teleperformance client CRM (“TP Client”)

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TP Client is an internally developed CRM tool that can help improve the efficiency and effectiveness of a client program to create, resolve, and track customer issues

• TP Client manages multi-channel interactions including voice, email, contact us

forms, chat and social media.

• The workflow engine is a distinctive capability which tracks customer interactions

across channels. and ensures consistent and seamless issue resolution.

• TP Client can be integrated with internal and external systems and is easily

customized for each client

.

TP Client is a cornerstone technology for TeleperformanceConnection, our customer engagement mobility solution

• Video Chat using WebRTC and Flash
• Mobile-friendly application templates and extensions for iOS, Android and

Windows Phone

Customer Database Integration Case Classify Business Process Workflow Multi- Channel Knowledge Base Proprietary technology solution enabling an omnichannel experience

OPI 84% VRI 4% OSI 5% Others 7%

KEY DIFFERENTIATING FACTORS

Languageline solutions: providing a comprehensive set of solutions across all channels and sectors

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Onsite interpretation (“OSI"), is required for high interaction settings, such as those involving multiple participants, sensitive communications, complex dialogue exchange and / or young children Over-the-phone interpretation (“OPI”) provides

• n-demand, quick access to highly qualified

interpreters 24/7/365 in 240+ languages Video-remote interpretation ("VRI") allows for immediate face-to-face interaction through a device, enhancing the experience through the addition of visual cues and body language Document translation and software / systems localization utilizes experienced proven linguists,

• pen and standards-based technologies and

processes LLS also provides solutions that ensure the qualifications of in-house interpretation personnel, along with other ancillary equipment, products and fees

Medical 44% Insurance 13% Government 17% Financial Services 10% Others 16%

Breakdown of LanguageLine Solutions revenue by language service type (2017) Breakdown of LanguageLine Solutions revenue by client sector (2017)

KEY DIFFERENTIATING FACTORS

Languageline solutions: a global distributed workforce of interpreters

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✓ Since 2011, LLS has had a significant shift in its interpreter workforce from

center-based to work-at-home (WAH)

✓ Today, LLS’ interpreters are located across 10 countries (excl.

Teleperformance partner)

✓ LLS’ increasing WAH interpreter base is a key strategic advantage in allowing

the company to consistently provide the lowest cost interpreter available

✓ LLS’ WAH interpreters are increasingly being digitally-enabled through the

company’s Olympus technology (ERP)

Key takeaways

United Kingdom

Peru

Corporate headquarters % of total interpreters Legend

Canada USA Mexico Panama Costa Rica Honduras Dominican Republic

8,400 interpreters, o.w. 70% are Homeworkers

European languages 68% Asian languages 13% Arabic 3% Russian 3% Others 13%

Language capabilities (2017)

Colombia

Egypt

Lithuania

Teleperformance partner

Portugal Albania

KEY DIFFERENTIATING FACTORS

Tlscontact: a successful growth story

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Business started in a niche market: the visa application centers ▪ 1st visa application center opened in Beijing for French Embassy in 2007 ▪ Joined Teleperformance in 2010 ▪ From 4 million euros revenue in 2009 to close to 150 million euros today, due to:

• Leading edge technology
• High demand from governments

(budget cuts, appetite for attracting tourists…)

• Increased needs for identity

management (biometrics)

European leader in visa application

• utsourcing

▪ Strong footprint: 140 locations across Europe, Asia and Africa (+6m visa interactions annually) ▪ Solid business model:

• Long-term contracts with

governments

• User-pays
• Value added services (insurance,

travel, …) (one-stop shopping for the travellers)

▪ Visa outsourcing market has gained maturity ▪ Ensuring security (certified ISO/IEC 27001: 2013) and quality From niche market to global offering ▪ Citizen services (transfer from global public budget to “user pays” model) ▪ Leverage on Teleperformance capabilities (specifically LLS)

• Online interpretation
• Interpretation travel cards
• US market for citizen services
• Healthcare

▪ Assistance to refugees in UE

• Call centers + face-to-face centers +

interpretation

▪ Leading-edge technology:

• E-lodging
• Biometrics
• Identity management

▪ Enhanced portfolio of high-value specialized services

YESTERDAY TODAY TOMORROW

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GOVERNANCE STRUCTURE

An international and seasonned management and board supporting a strong leadership

Teleperformance SE Board has 14 directors, 9 of whom are independent

Daniel Julien - Chairman Emily Abrera - Independent Director Alain Boulet - Independent Director Bernard Canetti - Director Philippe Dominati - Director Jean Guez - Director Wai Ping Leung - Independent Director Robert Paszczak - Independent Director Pauline de Robert Hautequere - Independent Director Leigh Ryan - Director Christobel E. Selecky - Independent Director Angela Maria Sierra-Moreno - Independent Director Patrick Thomas - Lead-Independent Director Stephen Winningham - Independent Director

Leadership:

Daniel Julien – Chairman and CEO

Executive Committee:

Olivier Rigaudy – Deputy CEO and CFO Leigh Ryan – Chief Legal and Chief Compliance Officer Alan Truitt – Chief Business Development Officer Jeffrey Balagna – Chief Operating Officer João Cardoso – Chief R&D and Digital Integration Officer Yannis Tourcomanis – CEMEA President Brian Johnson – EWAP co-President David Rizzo – EWAP co-President Agustin Grisanti – Ibero-LATAM President

CORPORATE MANAGEMENT BOARD OF DIRECTORS

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TELEPERFORMANCE SHAREHOLDING

Shareholding structure*: an international capital ownership

Other (Asia, South Africa, etc.) 4% North America 30% United Kingdom 18% France 26% Continental Europe (excl. France) 23%

Institutional investors 86% Others** 14%

* As of September 30, 2018

**Others include % Capital

• Daniel Julien

1.7%

• Retail

investors, incl. TP’s employees 8.0%

• Brokers

4.0%

• Listed on the NYSE Euronext Paris market – floating ~100%
• An international shareholding structure reflecting the Group’s global footprint

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ALTERNATIVE PERFORMANCE MEASURES

Change in like-for-like revenue: Change in revenue at constant exchange rates and scope of consolidation, corresponding to 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 Amortizations): Operating profit before depreciation & 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 Amortizations): 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

• f ordinary 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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