Teleperformance Group Presentation...Team (ILATAM) Technology, Analytics and Process (T.A.P.)...
Transcript of Teleperformance Group Presentation...Team (ILATAM) Technology, Analytics and Process (T.A.P.)...
Teleperformance Group Presentation
Including Q3 2019 revenue
November 2019
All forward-looking statements reflect Teleperformance management’s present expectations offuture events and are subject to a number of factors and uncertainties that could cause actualresults to differ materially from those described in the forward-looking statements. For a detaileddescription of these factors and uncertainties, please refer to the “Risk Factors” section of ourRegistration Document, available at www.teleperformance.com. Teleperformance undertakes noobligation to publicly update or revise any of these forward-looking statements.
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DISCLAIMER
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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 atcurrent-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 businesscombination, 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 impairmentcharges 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 oramount.
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 weightedaverage number of ordinary shares outstanding by the effects of all potentially diluting ordinary shares. These includeconvertible bonds, stock options and incentive share awards granted to employees when the required performanceconditions have been met at the end of the financial year.
CONTENTS
1. TELEPERFORMANCE OVERVIEWActivity and Strategy
2. Q3 2019 REVENUE
3. 2019 OUTLOOK
4. APPENDICES
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5
DETAILED CONTENTS
1. TELEPERFORMANCE OVERVIEW: ACTIVITY AND STRATEGY
2. Q3 2019 REVENUE
3. 2019 OUTLOOK
Teleperformance overview 7-18
p. 6-19
p. 20-28
p. 29-30
68Shareholding
33-41Group overview – Additional information
Q3 2019 Key Figures 21-28
Market environment 42-47
4. APPENDICES p. 31-68
66-67Governance structure
48-56Digital Integrated Business Services (D.I.B.S.)
57-61Specialized Services
2019 Outlook 30
2022 Objectives 19
63-65Corporate Social Responsibility (CSR)
1 TELEPERFORMANCE OVERVIEWActivity and Strategy
US$5.3bn
Countries where TP operates
TELEPERFORMANCE OVERVIEWWORLDWIDE LEADER IN THE OUTSOURCED CX MARKET
7
€4.4bn
A multicultural group, present in
countries80
300k+people
We are a team of
850+clients
80countries
Present in
170markets
Serving
265
We provide service in
languages and dialects in 2018
Revenue of
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TELEPERFORMANCE OVERVIEWACTIVITY: PROVIDING A FULL RANGE OF SERVICES IN CONSTANT EVOLUTION
▪ Mission: Teleperformance people,“all over the world, all around theclock”, helping people addresstheir day-to-day issues, in an evermore changing and complexenvironment
▪ Being the agile business servicespartner that companies need intoday’s digital world: making eachinteraction “Simpler, Faster,Better, Safer and More CostEffective”.
High value-added services to corporates and
government agencies
▪ Customer services*▪ Technical support*▪ Client acquisition ▪ Back office services▪ Knowledge services
(analytics, A.I., consulting)
Specialized Services▪Online interpreting services▪Visa application
management services▪Accounts receivable
management
Teleperformance Digital Integrated Business
Services (D.I.B.S) launched in October 2018
Core Services & D.I.B.S.
* Mainly inbound interactions
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TELEPERFORMANCE OVERVIEWACTIVITY: GEOGRAPHIC DIVERSIFICATION
Group revenue breakdown
(First nine months 2019)
CoreServices & D.I.B.S.*
87%
Specialized Services**
13%
o.w D.I.B.S.19%
EWAP23%
Ibero-LATAM37%
CEMEA29%
India & Middle East11%
Core Services & D.I.B.S.*
revenue breakdown
(First nine months 2019)
* Core Services split by linguistic region:- EWAP English-speaking market and Asia-Pacific (the US, Canada, the UK, the Philippines, China, etc.)- Ibero-LATAM Latin American countries (Brazil, Mexico, Colombia, etc.), Portugal and Spain- CEMEA Continental Europe, Middle East & Africa- India & Middle East India and ex-Intelenet activities in the Middle East
47%
9% 14%5%4% 4% 3% 2% 2%
TELEPERFORMANCE OVERVIEWACTIVITY: INDUSTRY VERTICAL DIVERSIFICATION
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Expertise in many industries
% Revenue by vertical – details
Telecommunications (Pay-TV and Telecom - Internet)
Financial Services
Technology, Consumer Electronics
Healthcare, Insurance
Retail, e-Commerce
PublicSector
Travel Agencies, Hotels, Airlines
Transportation & Logistics
Media & Entertainment
6%11% 7% 7%
18%13%14%
5%
▪ Ongoing diversification over time
▪ Increased contribution of business with e-player clients
Other
10%
15%4%
First entry in the Top 9 sectors
in H1 2019
2013 H1 2019
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TELEPERFORMANCE OVERVIEWHIGH-TECH, HIGH-TOUCH STRATEGY: TELEPERFORMANCE DNA AND KEY DIFFERENTIATING ASSET TO OUTPERFORM THE MARKET
• Uptime
• Omnichannel
• R.P.A.
• Data security
High-Tech High-Touch
Lean Six Sigma Discipline
• Psychographics
• Coaching
• Managing with a
purpose
• Global ecosystem
• Predictive models
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TELEPERFORMANCE OVERVIEWDEVELOPMENT STRATEGY
Digitalization
Org
anic
gro
wth
Exte
rnal
gr
ow
th
Targeted strategic acquisitions in high-value services
Specific Activities /
Verticals
Lines of Business Subject matter experts
Accelerate Teleperformance’s
global transformation to
become a key business services provider in high-value integrated digital solutions
A three dimensional
approach
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TELEPERFORMANCE OVERVIEWDIGITALIZATION: LEVERAGING THE TECHNICAL, PROCESS AND INDUSTRY KNOWHOW AND EXPERTISE
Digital Transformation Team (ILATAM)
Technology, Analytics and Process (T.A.P.) – Knowledge Services team1
Consulting experience in digital transformation, analytics and automation engagements400+ digital transformation experts
Digital Transformation Team (CEMEA)
Knowledge Services Team
Digital Center of Excellence Technology, Analytics and Process (T.A.P.)
regional teams1
Regional teams with expertise in technology, automation, analytics and process optimization200+ digital transformation experts
Digital Transformation Team (EW and
APAC)
Continuous improvement: all at Teleperformance
All operation and support functions are trained on lean six sigma method, to continuously improve performance
1 – Includes senior IT/RPA professionals, developers, data analysts, data scientists, process engineers
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TELEPERFORMANCE OVERVIEWDIGITALIZATION: AGGRESSIVELY DEVELOPING BOTS
Start Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sept-19
5,000+Total Bots Deployed1
1 450
1 – Measured as 1 attended bot counts x1; 1 unattended bot count x8
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TELEPERFORMANCE OVERVIEWSECURITY: SHIFTING THE FOCUS FROM INFORMATION SECURITY TO CYBER SECURITY
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TELEPERFORMANCE OVERVIEWEXTRA-FINANCIAL IMPACTS OF GROUP CSR STRATEGY ON KEY STAKEHOLDERS
All actions are driven by strong ethical principles and values,aligned with the UN Global Compact’s 10 principles, signed by Teleperformance in 2011
Preferred employer on the Group’s marketEmployee engagement & well-being
Health & SafetyHuman Rights
A trusted partner to all Group’s stakeholders
ShareholdersLong-term value
Transparence
ClientsStrategic partner
InnovationBusiness ethics
Force of Good Impact on local employment
COTW - Sustain local communitiesCOTP - Promote a sustainable use of natural resources Each Interaction Matters
Human TouchDiversity & Inclusion
TP DNA
CustomersCustomer Experience
Data security
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TELEPERFORMANCE OVERVIEWBE MARKET’S PREFERRED EMPLOYER AND DEVELOP EMPLOYEES’ WELL-BEINGAT WORK
10 « Great Place to Work » awards
China, India, Philippines, Brazil, Mexico (2 subsidiaries), El Salvador,
Colombia, Dominican Republic, Portugal
7 subsidiaries recognized « Global Best Employers™ Program » by
A.On Hewitt in Albania, Guyana, India, Lithuania, Morocco, Tunisia and
Lebanon (TLScontact)
4 subsidiaries recognized « Best Places to Work® » in Albania, Morocco,
Tunisia and Lebanon
▪ Recognitions from third-parties account for 70% of Group workforce in 2018
0
100
200
300
400
2011 2012 2013 2014 2015 2016 2017 2018
Net capex (€M) Net Free cash flow (€M)
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TELEPERFORMANCE OVERVIEWA PROVEN FINANCIAL TRACK RECORD (2011-2018)
2011 2012 2013 2014 2015 2016 2017 2018
Net capex / revenue 4.5% 4.6% 5.2% 5.7% 5.0% 5.2% 3.5% 4.4%
Net free cash flow / EBITDA 33% 31% 20% 25% 41% 42% 45% 40%***
* LanguageLineSolutions consolidated on a 12-months basis** Intelenet consolidated on a 12-month basis*** Adjusted for €(25)m of non-recurring outflows in 2018**** See 2020-2022 Group objectives slide 18
2,1262,3472,4332,758
3,3983,6494,1804,441
c. 7,000
3.5%
6.9% 7.9%9.9%
7.5% 7.4%9.0% 9.0%
-10%
-5%
0%
5%
10%
15%
0
2000
4000
6000
8000
2011 2012 2013 2014 2015 2016 2017 2018 2022
Revenue Group LfL growth
…
8.5% 9.1% 9.3% 9.7%10.3%
11.2%
13.3% 13.6%
6%
8%
10%
12%
14%
16%
0100200300400500600700
2011 2012 2013 2014 2015 2016 2017 2018 2022
Current EBITA Net profit – gr. shareCurrent EBITA margin
0.0x-0.4x -0.3x
1.1x 0.8x
2.6x1.9x
2.6x
-1,0x
0,0x
1,0x
2,0x
3,0x
-200
300
800
1300
1800
2300
2011 2012 2013 2014 2015 2016PF*
2017 2018PF**
Net debt (€M) Net debt /EBITDA
… ****
****
+ 10 bps
CAGR
(2020-2022)
TELEPERFORMANCE OVERVIEWCONFIRMING 2020-2022 OBJECTIVES
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▪ Organic growth = at least + 7% per year
▪ Revenue = €6.5 billion in 2022 excluding acquisitions
▪ Acquisition: revenue between €250 million and €500 million
▪ Total revenue (organic growth + acquisitions) = c.€7.0 billion
▪ Increase in EBITA margin = at least + 10bps per year (CAGR)
▪ Continued strong net free cash flow
2 Q3 2019 REVENUE
Q3 2019 REVENUEFURTHER ACCELERATION IN REVENUE GROWTH
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▪ Further acceleration in growth: like-for-like revenue growth of + 13.5% in Q3, vs. + 9.9% in Q1 2019 and + 10.9% in Q2 2019
* At constant exchange rates and scope of consolidation
Like-for-like* Reported
€/$ exchange rate (9 months average) €1 = US$1.12 €1 = US$1.20
9M (to September 30) 3,916 3,146 + 11.5% + 24.5%
Q3 1,352 1,076 + 13.5% + 25.6%
2019 2018Change
Q3 2019 REVENUEREVENUE GROWTH ANALYSIS
▪ 9M revenue growth: + 24.5% as reported and + 11.5% like-for-like
▪ Change in scope: consolidation of Intelenet since October 2018
▪ Positive foreign exchange impact mainly from the strengthening of the US dollar against the euro
+ 11.5% lfl
3,1463,211
3,916
+ 65
+ 368
+ 337
9 months 2018 Currency effet 9M 2019 at constantexchange rates
Like-for-like growth Change in scope 9 months 2019
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9M Q3 9M Q3
Core Services & D.I.B.S. 3,392 1,171 2,680 919 + 12.3% + 14.0% + 26.6% + 27.5%
- English-speaking market & Asia-Pacific 1,241 440 1,064 369 + 7.0% + 12.0 % + 16.6% + 19.1%
- Ibero-LATAM 983 338 848 285 + 17.0% + 18.5% + 15.9% + 18.6%
- Continental Europe & MEA 786 266 692 237 + 13.2% + 10.8% + 13.6% + 12.3%
- India & Midle-East 382 127 76 27 + 28.8% + 21.7% n/m n/m
Specialized Services 524 181 466 157 + 6.9% + 10.7% + 12.5% + 15.1%
Total 3,916 1,352 3,146 1,076 + 11.5% + 13.5% + 24.5% + 25.6%
o/w D.I.B.S. 755 248 N/A N/A N/A N/A N/A N/A
Revenue (€ M)2019 2018 Change (%)
9M Q3 9M Q3Like-for-like* Reported
Q3 2019 REVENUEREVENUE BY ACTIVITY
▪ Core Services & D.I.B.S. like-for-like growth in 9M: + 12.3%, driven by strong growth in all regions, notably Ibero-LATAM, and acceleration in EWAP in Q3
▪ Specialized Services remain well oriented, with + 6.9% like-for-like growth in 9M, in acceleration in Q3
* At constant exchange rates and scope of consolidation 23
369
440
Q3 2018 Q3 2019
1 064
1 241
9M 2018 9M 2019
Q3 2019 REVENUECORE SERVICES & D.I.B.S. – ENGLISH-SPEAKING MARKET & ASIA-PACIFIC (EWAP)
o LFL revenue growth accelerated in Q3 to + 12.0%, as expected,vs. + 2.8% in Q1 and + 6.1% in Q2
o Continued recovery in North America:o Most dynamic segments were healthcare, e-tailing,
transportation services and logisticso Offshore businesses from the Philippines serving the
North America market were well-oriented
o In Asia, growth was sustained in Malaysia with the recentopening of a second multilingual hub for content moderationsolutions dedicated to large social networks
o Continued decline in revenue in the UK, to a lesser extent thanin H1 2019, in a still uncertain economic environment
+ 7.0% lfl
9M 2019 vs. 9M 2018 (€ M)
Q3 2019 vs. Q3 2018 (€ M)
+ 12.0% lfl
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Q3 2019 REVENUECORE SERVICES & D.I.B.S. – IBERO-LATAM
o LFL revenue growth acceleration in Q3 to + 18.5%, vs. + 16.1% in Q1and + 16.2% in Q2
o Nearshore solutions were a strong driver for the region:o strong growth in Colombia with important e-clients, notably in
the transportation segmento Rapid growth in Mexico supported by financial services and
logistics
o Domestic markets in Colombia, Mexico and Argentina were alsodynamic
o Portugal remains an important source for growth, with the rapiddevelopment of multilingual platforms dedicated to global clients
o Operations in Brazil progressed at a satisfactory pace, notably infinancial services and logistics
9M 2019 vs. 9M 2018 (€ M)
Q3 2019 vs. Q3 2018 (€ M)
10.8% 10.7%
848
983
9M 2018 9M 2019
285
338
Q3 2018 Q3 2019
+ 17.0% lfl
+ 18.5% lfl
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Q3 2019 REVENUECORE SERVICES & D.I.B.S. – CONTINENTAL EUROPE & MEA (CEMEA)
o Strong growth driven once again by a very solid salesperformance among multinational clients and fast-growinglocal market leaders
o Strong growth also reflects the unique multilingualcapabilities of the group to serve a complex regional market
o Further significant increase in revenue in Greece (multilingualhub), in Eastern Europe and in Turkey
o More challenging comps expected in Q4 2019
9M 2019 vs. 9M 2018 (€ M)
Q3 2019 vs. Q3 2018 (€ M)
692
786
9M 2018 9M 2019
237 266
Q3 2018 Q3 2019
+ 13.2% lfl
+ 10.8% lfl
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Q3 2019 REVENUECORE SERVICES & D.I.B.S. – INDIA & MIDDLE EAST
o Fast-paced expansion in India (TP India), particularly in thetransportation services and travel agencies segments
o Satisfying growth of ex-Intelenet operations on a pro formabasis, particularly in the Indian domestic market
9M 2019 vs. 9M 2018 (€ M)
Q3 2019 vs. Q3 2018 (€ M)
76
382
9M 2018 9M 2019
27
127
Q3 2018 Q3 2019
+ 28.8% lfl
+ 21.7% lfl
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Q3 2019 REVENUESPECIALIZED SERVICES
o Much faster pace of LFL growth in Q3 (+10.7%) compared to+ 3.7% in Q1 and + 6.3% in Q2
o LanguageLine Solutions revenue growth accelerated in Q3,after returning to a normative growth level in the first half of2019
o TLScontact revenue growth picked up in Q3, confirming thereturn to solid growth shown in Q1 and Q2. Business notablybenefited from the satisfactory progress in sales of value-added services in UK as well as a favorable basis forcomparison
9M 2019 vs. 9M 2018 (€ M)
Q3 2019 vs. Q3 2018 (€ M)
466 524
9M 2018 9M 2019
157
181
Q3 2018 Q3 2019
+ 6.9% lfl
+ 10.7% lfl
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32019 OUTLOOK
2019 OUTLOOKINCREASING FULL-YEAR TARGETS
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▪ Annual like-for-like revenue growth of around + 10.0%
▪ An increase of at least + 20 basis points in the EBITA margin before non-recurring items*
▪ Continued strong net free cash flow
* Excluding IFRS 16 impacts
4 APPENDICES
AGENDA
DIGITAL INTEGRATED BUSINESS SERVICES (D.I.B.S.) –ADDITIONAL INFORMATION
CORPORATE SOCIAL RESPONSIBILITY,GOVERNANCE & SHAREHOLDING
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SPECIALIZED SERVICES
GROUP OVERVIEW –ADDITIONAL INFORMATION
MARKET ENVIRONMENT
APPENDICES
Group overview –Additional information
GROUP OVERVIEW – ADDITIONAL INFORMATIONNEW PRESENTATION BY REGION (SINCE 1ST JANUARY 2019): BRIDGE BETWEEN THE FORMER AND CURRENT BUSINESS REPORTING PRESENTATION
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Former presentation
by activity
Entities deleted (-)
vs. former presentation
Entities added (+)
vs. former presentation
New presentation
by activity
CORE SERVICES CORE SERVICES & D.I.B.S.
English-speaking & Asia‑Pacific TP India INTELENET Philippines English World & Asia-Pacific
INTELENET USA
INTELENET UK
Ibero-LATAM INTELENET Guatemala Ibero-LATAM
Continental Europe & MEA INTELENET Poland Continental Europe & MEA
INTELENET INTELENET Philippines TP India India & Middle East
INTELENET USA PRAXIDIA*
INTELENET UK
INTELENET Guatemala
INTELENET Poland
SPECIALIZED SERVICES PRAXIDIA* SPECIALIZED SERVICES
* Praxidia has been grouped with Intelenet’s Knowledge Services operations, based in India
GROUP OVERVIEW – ADDITIONAL INFORMATIONNEW PRESENTATION BY REGION (SINCE 1ST JANUARY 2019): RESTATED BREAKDOWN OF 2018 REVENUE BY QUARTER AND ACTIVITY
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Q1 2018 Q2 2018 H1 2018 Q3 2018 Q4 2018 H2 2018 FY 2018
Revenue (€M)
CORE SERVICES & D.I.B.S.* 877 884 1,761 919 1,135 2,054 3,815
- English-speaking & Asia-Pacific (EWAP) 349 345 694 369 434 803 1,498
- Ibero-LATAM 275 288 563 285 309 594 1,157
- Continental Europe & MEA (CEMEA) 229 225 454 237 272 509 963
- India & Middle East** 23 26 49 27 121 148 197
SPECIALIZED SERVICES 149 160 309 157 160 317 626
TOTAL* 1,026 1,044 2,070 1,076 1,295 2,371 4,441
* o/w D.I.B.S. N/A N/A N/A N/A N/A N/A N/A
** ex-Intelenet activities in the Middle East
GROUP OVERVIEW – ADDITIONAL INFORMATIONKEY MILESTONES OF A GROWTH AND EVOLUTION STORY
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An ongoing growth and evolution story going back 40 years, both organically and through high profile acquisitions
Founded in 1978 in France
First listed on the Paris
stock exchange
Started operations in the US
Acquisition of The
Answer Group (US)
Acquisition of BeCogent
(UK) & Teledatos
(Colombia)
Full control of
TLScontact
Acquisition of Aegis USA (US)
Acquisition of LanguageLine
Solutions
Acquisition of Intelenet and
launch of Teleperformance
D.I.B.S. activity
1978 1986 1993 1996 1998-2002
2008 2010 2012 2014 2016 2018
#1 IN EUROPE IN 1995
# 1 WORLDWIDE SINCE 2007 DEVELOPMENT OF HIGH VALUE-ADDED ACTIVITIES TO BECOME A WORLDWIDE LEADER IN INTEGRATED SERVICES
Started operations in Latin America:
acquisitions in Argentina and Brazil (1998) and
Mexico (2002)
Started operations in Asia and
the Philippines
Average quarterly like-for-like growth: c. + 9%
+ 2%
+ 5%
+ 13%
+ 9%
+ 12%
+ 6%
+ 8%
+ 7%
+ 9%
+ 12%+ 13%
+ 7%
+ 10%
+ 6%
+ 7% + 7%
+ 6%
+ 8%+ 10%
+ 6%
+ 12%
+ 8%
+ 7%
+ 9%
+ 7%
+ 10%
+ 8%
+ 11%
+ 10%
+ 11%
+ 14%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Q315
Q415
Q116
Q216
Q316
Q416
Q117
Q217
Q317
Q417
Q118
Q218
Q318
Q418
Q119
Q219
Q319
+ 5%
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GROUP OVERVIEW – ADDITIONAL INFORMATIONA GROWTH COMPANY STATUS: Q3 IS THE 30TH STRAIGHT QUARTER OF LIKE-FOR-LIKE GROWTH OF AT LEAST + 5%
Quarterly like-for-like growth (vs. same period of prior year) since January 2012
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GROUP OVERVIEW – ADDITIONAL INFORMATIONA STRONG AND DIVERSIFIED CLIENT BASE
In 2018 - Top20: 41% Top100: 72%
• Increasingly diverse client base, now more than 850 clients*
• Average tenure of client relationship (Top 50) is 12 years
• Lower concentration caused notably by diversification in new
verticals, with recent large accounts won, particularly in the
New Economy
• Global accounts (multi-markets contracts) represent 50% of
total Group revenue* Excluding LanguageLine Solutions (28,000 clients including individuals)
Multi-year trend of lower client concentration
% Revenue generated with
clients vs. total revenue*
2013 2018
7% 8%
34%
28%
58%
68%
Top 1 Top 10 Top 50
GROUP OVERVIEW – ADDITIONAL INFORMATIONSMART SHORING: A UNIQUE OFFERING OF WORLDWIDE BROAD SOURCING MIX
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With a network of 36 offshore/nearshore locationsaround the world, Teleperformance is the only industry player able to offer worldwide integrated domestic, nearshore & offshore solutions
Increasing share of nearshore & offshore
% of nearshore & offshore revenue
in Core Services activities
2010 2018
35%
43%
65%57%
+ 8 ppt
% of domestic revenue in Core
Services activities
GROUP OVERVIEW – ADDITIONAL INFORMATIONSOLUTIONS ADAPTED TO EACH MARKET’S NEEDS: MULTILINGUAL HUBS IN EUROPE AND ASIA
40
Strong support to gain market shares in CEMEA and promising development in Asia
Gathering native speakers from differentlocations in one hub to deliver the best service for Pan-European and Asian mid-size programs
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
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GROUP OVERVIEW – ADDITIONAL INFORMATIONSECURITY: A REFERENCE IN THE INDUSTRY
▪ The BCR is a legal document outlining the Group’s compliance, privacy and security program
▪ Teleperformance received notification from the CNIL* that its BCRs were approved in February 2018
▪ Teleperformance is the only BPO company that has gained approval for BCRs
▪ The BCR approval was a factor in Teleperformance becoming GDPR (General Data Protection Regulation) compliant in May 2018
▪ A new program of investments in cyber security launched in 2019
Examples of key certifications received by Teleperformance
* French data protection authority
APPENDICES
Market environment
* Overall contact center spend including payment collections - Source: Everest (2018) ** Source: Frost & Sullivan (2017)
• CX global market growing, driven by the mobility revolution and new digitized activities
• Outsourcing market growing ~ + 5% p.a.** (in $) driven by a more complex and demanding environment
• Teleperformance like-for-like growth > + 5% yoy over the last 30 consecutive quarters
• LATAM nearshore for North America, and Asia-Pacific offshore and domestic are the fastest growing markets
2010 2018
280-300
320-350
CX global market*
(2010-2018 - in $bn)
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% of outsourced customer centers
2010 2018E
22%26%
78% 74%
+ 4 ppt
CX outsourced market rate* (2010-2018 - %)
MARKET ENVIRONMENTA HUGE AND GROWING CUSTOMER EXPERIENCE (CX) MARKET
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MARKET ENVIRONMENTSEIZING OPPORTUNITY TO INCREASE SHARE OF DIGITAL SOLUTIONS IN THE OUTSOURCED MARKET
• Digital solutions in outsourced CX market expected to grow by + 20-25% p.aover 2017-2022E*
• The New Economy: a powerful growth engine for Teleperformance
2017 2022E
4-6%10-15%
94-96% 85-90%
+ 6-9 ppt
Source Everest (2018)
Digital solutions in
outsourced CX market (2017-2022E - %)
% revenue generated with pure e-clients
among Top 150 clients
9M 20192013
23%
5%
77%95%
+ 18 ppt
Teleperformance
revenue generation
with e-clients (2013-9M 2019 - %)
% of digital solutions
* Source: Everest (2018)
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MARKET ENVIRONMENTSERVING DISRUPTORS AND DISRUPTED, AN EXAMPLE BY VERTICAL
Banking, financial services and insurance Banks
VERTICAL
Retail
Entertainment & Pay TV
Transportation
DISRUPTED
Bricks & Mortar
Cable & Satellite
Taxi
Accommodation Hotels
E-commerce
Streaming
Fintechs
DISRUPTORS
Sharing economy platforms
Sharing economy platforms
…
Digital disruptors = support fast growth by managing frictions of the real world
Brick and mortar disrupted = cost optimization leading toomnichannel integration and R.P.A.
0
1000
2000
3000
4000
5000
6000
MARKET ENVIRONMENTTELEPERFORMANCE’S TRANSFORMATION LEADING TO A BROADER COMPETITIVE ENVIRONMENT(1/2)
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▪ Worldwide leader in the core services market with a unique global diversified positioning
Customer Experience Management( Revenue in $ M – FY 2018)
* Part of the Synnex Group, now including Convergys ** Estimate
Revenue total
growth
(CAGR)
Change in
Margin**
2018
Margin
Sykes + 5% - 90bp 6.8%
Teletech + 4% - 180bp 6.6%
Convergys* + 3% - 40bp 7.1%
Atento - 4% - 140bp 5.1%
Top 4 average + 2% - 110bp 6.4%
Teleperformance + 11% + 510bp 13.6%
* 2011 -2017 before acquisition by Synnex
** Change in adjusted EBIT margin
▪ Group’s transformation leads to significant outperformance vs. peers
▪ Ambitious and solid Teleperformance financial objectives
0
1000
2000
3000
4000
5000
6000
MARKET ENVIRONMENTTELEPERFORMANCE’S TRANSFORMATION LEADING TO A BROADER COMPETITIVE ENVIRONMENT (2/2)
47
▪ Enlarged competitive environment reflects more complex and integrated services demand from the clients
Accenture
Wipro
Cognizant
Genpact
Tata Consulting Services (TCS)
Global players inConsulting and Strategy
BPO companies based in India, IT service suppliers
Customer Experience Management( Revenue in $ M – FY 2018)
* Part of the Synnex Group, now including Convergys ** Estimate
APPENDICES
Digital Integrated Business Services (D.I.B.S.) – Additional information
DIGITAL INTEGRATED BUSINESS SERVICES (D.I.B.S)EVOLUTION OF THE GLOBAL BUSINESS PROCESS SERVICES INDUSTRY
49
● Dominated by in-house shared services
● Largely labor cost arbitrage based value proposition
● Simple transactional activities such as L1 customer service and transactional sales
● Access to client systems via Citrix
● Rapid growth of 3rd party IT-enabled service providers
● Increasing complexity of outsourced services – slivers of vertical and horizontal back office services
● Use of Lean Six Sigma to drive operational efficiencies
● Data Analytics and Insights based value addition
● Emergence of cloud and mobile technologies
● Era of Digital Transformation, with Digital disruption driving accelerated pace of change
● Graduation to Integrated Business Services outsourcing
● Emergence of new service lines to support the digital companies
● Flexible asset-light models like WAHA
● Modular, collaborative, secure and scalable technology architecture
Late 1990s –Early 2000s
Early 2000s –2015
Since2015
DIGITAL INTEGRATED BUSINESS SERVICESDIGITAL SOLUTIONS AVAILABLE TO CLIENTS
50
Omnichannel contact center tools
Omnichannel and workflow mgmt
tool
All industries
Analytics and AI tools
Automation tools Industry specific solutions
Real time floor management and
security monitoring
All industries
Real time dashboard with
key business metrics
All industries
SW for quick, accurate, effective
knowledge transfer
All industries
Platform for reward and
gamification on operations floor
All industries
Analytics for unstructured data, sentiment analysis
All industries
Interactive analytics with
advanced visualization
optionsAll industries
Speech analytics
All industries
Recommends Next Best
Alternative products or
servicesAll industries
Social Media Solutions
Optimization RPA / RDA projects
with TP methodology
All industries
Automated conversational AI
projects
All industries
TP Automation TP Bot
Automates calculating
refunds and change charges
Travel (airlines)
Workflow for an F&A process end
to end mgmt
Financial
Automate manual process of
medical coding CPT/ICD
Healthcare
Unify several applications on one screen with
RPA
Banking
Not exhaustive
Recommends Next Best
Alternative products or
servicesAll industries
DIGITAL INTEGRATED BUSINESS SERVICESLEVERAGING AN ECOSYSTEM OF TECHNOLOGY PLAYERS AND PARTNERS
51
Analytics and AI
Omnichannel Contact Center
Automation
Not exhaustive
Digital economy is fueling the emergence of new, highly specialized needs and services
Content moderation : a multi-billion USD, attractive market, with continued growth
Combining AI and human beings: ▪ AI as a triage tool▪ humans discernment capability to
evaluate context
Wellness programs ensure that employees psychological well-being is fully taken care of and cover the entire employee lifecycle (from training to exit)
DIGITAL INTEGRATED BUSINESS SERVICESCASE STUDY: CONTENT MODERATION FOR SOCIAL NETWORKS (1/3)
52
DIGITAL INTEGRATED BUSINESS SERVICESCASE STUDY: CONTENT MODERATION FOR SOCIAL NETWORKS (2/3)
53
Scale
Provide 100% In-Market Coverage
for Emerging Threats and Bad
Actors
Risk
Achieve 30% improvement in
Precision and Recall Accuracy
Resilience
Engage with a highly motivated
and resilient workforce
Throughput
Improve Efficiency by 20% through
process optimization
DIGITAL INTEGRATED BUSINESS SERVICESCASE STUDY: : CONTENT MODERATION FOR SOCIAL NETWORKS(3/3)
54
State of the Art Infrastructure for Content
Moderation Services
DIGITAL INTEGRATED BUSINESS SERVICESCASE STUDY: TP FARE, AN AI BASED AIRLINE FARE CALCULATOR
55
START
Agent receives call to Change /
Cancel / Upgrade Flight booking
Retrieve the PNR* on GDS
View fare history. Identify Correct
fare basis
Retrieve & Read all Fare rules
1 Min/ Trans 1 Min/ Trans 2-5 Min/ Trans 3-10 Min/ Trans
Enter refund amount/Cancella-tion fee/ Change
fee in the ADT Macro
View fare history. Identify Correct
fare basis
Identify refundable
Fare/Taxes –Reissue Timeline
1 Min/ Trans 2-5 Min/ Trans 1 Min/ Trans
END
● High processing time
● NPS of 8%● Retail losses – 3 to 4% of cost of service
PR
E
● 30% reduction in processing time
● NPS improved to 25%● Reduced retail loss to <1% of total cost of service
PO
ST
* Passenger Name Record
DIGITAL INTEGRATED BUSINESS SERVICESCASE STUDY: LENDING SUITE
56
Appointment Booking
Calendar managementand Email / SMS alerts
Data Capture
OCR extracts applicant’spersonal details from KYC documents
Decision BotAutomatically reviews the applicants credit history and provides outcomebasis the banks policy
Workflow Bot
Ability to re-assign the application to the same underwriter
Assist Bot
Provides in-depth view sourced from various screens to a single view for the underwriter
Valuation/Validation
Automatically instructs valuation when the application is agreed
Fulfillment
Automatically reworks the caseand the sends out the offer/ response letter if case meets criteria
Offer CompletionAuto extract of information from various credible sources and auto complete the system requirements
Status/Alert Report
Ability to attach the documents/information for review to the underwriter
Communication
Automated real-time status of the application for all parties OCR
Additional information received and Auto updated
Business Intelligence
Intelligent Reporting & Dashboards
Contact Centre Front Apply to pull Customer data Or Chat – API/ Portal
Origination
Underwriting
Offer ReleaseFulfillment Customer Management
Application Control & Communication
MIS & Dashboard
“The Lending Suite” is Robotics Process Automation (RPA) initiative to automate numerous business processes across multiple
industries. It is an intelligent and automated approach to provide better customer experience, improved efficiency and reduced costs.
APPENDICES
Specialized services
SPECIALIZED SERVICES - LANGUAGELINE SOLUTIONSEXCELLING IN A GROWING AND INCREASINGLY MORE COMPLEX MARKET
58
The Largest Interpretation Company
in the World
• The #1 Over-the-Phone Interpretation
Company
• The #1 Video Interpretation Company
• The #1 On Site Interpretation Company
• 3x larger than our nearest competitor
More than 28,000 clients in the Health Care, Government and Enterprise industries.
• Just over 50% of U.S. immigrants are English
proficient
• Nearly 90% of U.S. population growth will come
from immigration through 2065
• 10 million persons are deaf and/or hard of hearing
• 350 languages are spoken in the U.S.
• Organizations struggle with complexity of language
services which is not their core competency
• Enhanced regulatory scrutiny continues to fuel
demand
Source: Common Sense Advisory 2019, Slator.com, Nimdzi, UGA Report
Global Interpreting Market Opportunity
Language Services Global Market
Opportunity
2019 - $49.6bn
2019 Growth: + 7%
Market Complexity - Demand
Drivers
Shifting
Population
Laws
Regulations
North American Market represents
42.4% of the Global Market
LanguageLine is growing nearly 50% faster than the market rate of growth.
Multi-cultural consumers are 92% of U.S. population growth, increasing 2.3m per
year.
$6.4bn
$56bn Language Services Market by 2022
increasing on average + 4% annually
SPECIALIZED SERVICES - LANGUAGELINE SOLUTIONSA GLOBAL WORKFORCE OF ONLINE INTERPRETERS
59
European languages
68%
Asian languages
15%
Arabic3%
Russian2%
Other12%
By language capabilities
Over-the-phone
interpretation ("OPI")
83%
Document translation
6%
OnSite interpretation
("OSI")5%
Video-remote interpretation ("VRI")
6%Financial services10%
Insurance12%
Government17%
Medical45%
Others16%
By client sector
Breakdown of LanguageLine Solutions revenue in 2018…
By language service type
9,600 interpreters> 80% homeworkers
The leading provider of over-the-phone and videointerpreting solutions in North America
SPECIALIZED SERVICES – TLSCONTACTPROVIDING A COMPREHENSIVE SET OF SERVICES IN A GROWING CORE MARKET
60
Source World Economic Forum
A major player in visa application outsourcing in Anglo-Saxons and European countries : present in
90 countries, 140 locations
The Growth Of International Travel
SPECIALIZED SERVICES – TLSCONTACTGROWTH PRIORITIES
61
Improve footprint with light application center solutions and
partnerships
Capture new visa business fromexisting & new clients
Increase client value by delivering and integrating innovative services
– in-house and via partnerships
Develop Added Value Services (AVS) revenue from applicants
Operate outsourced Consular & Citizen services, on behalf of governments
Opportunistically operate outsourcedin-country citizen services (USA, France)
Opportunistically operate outsourcedin-country immigrant services (EU)
Visa services Non-visa services
Increase efficiency and decrease cost
APPENDICES
Corporate Social Responsibility (CSR),
governance & shareholding structure
2011 - Signature of the UN Global Compact(UNGC) committing to uphold a set of core
values in the areas of Human Rights, Labour Principles, Environment & Anti-corruption
2006 - Formal launch of Citizen of the World Initiative (COTW), an expansive social responsibility program incorporating a charitable initiative
2012 -Anti-Corruption Policy released
2013 - Formal launch of an all-encompassing GLOBAL CSR Committee with the main objective to apply all CSR principles in the way Teleperformance operates – release of:
• Code of Ethics • CSR New Hire Training Package• Environmental Policy
• Human Rights Statement
• Global Essential Security Policies (GESP)
• Equal Opportunity Policy
• Health & Safety Policy
• Supplier Policy
2008 - Formal launch of Citizen of the Planet Initiative (COTP)
63
CORPORATE SOCIAL RESPONSIBILITYA SUCCESSFUL DEVELOPMENT BASED ON A LONGSTANDING CORPORATE SOCIAL RESPONSIBILITY (CSR) APPROACH, PART OF GROUP DNA
2016 - Revised security and privacy policies into the GESP
2016 - Upgraded Group Grievance mechanism
2008 - First launch of the Annual Employee Satisfaction survey (E-Sat)
2018 - 1st global BPO in receiving Binding Corporate Rules (BCRs)
2018 - Comprehensive Risk Mapping and revised Code of Conduct against Corruption
2018 - Global Ethics Hotline
2019- Named a Global Director for Corporate Social Responsibility
2019 - Revised Diversity and Inclusion policy and Health & Safety policy
2019 - Enterprise-wide certification for “Social Responsibility Standard” from Verego for the 5th
consecutive year
20
06
20
08
20
11
20
12
20
13
20
15
20
16
20
18
20
19
2015 - New Policies released
64
CORPORATE SOCIAL RESPONSIBILITYSTRONG CSR PRINCIPLES
▪ Code of ethics
▪ Code of conduct
▪ Privacy policy
▪ Diversity & inclusion
▪ Health & safety policy
▪ Supplier policy
▪ Human rights statement
▪ Environmental policy
▪ Global ethics hotline
#1: Support and respect the protection of internationally proclaimed human rights; and#2: Make sure to not be complicit in human rights abuses.
#3: Uphold the freedom of association and the effective recognition of the right to collective bargaining;#4: Contribute to the elimination of all forms of forced and compulsory labour;#5: Contribute to the effective abolition of child labour; and#6: Contribute to the elimination of discrimination in respect of employment and occupation.
#7: Support a precautionary approach to environmental challenges;#8: Undertake initiatives to promote greater environmental responsibility; and#9: Encourage the development and diffusion of environmentally friendly technologies.
#10: Work against corruption in all its forms, including extortion and bribery.
… aligned with the 10 principles of the UN global compact, of which it is a signatory since 2011:
Teleperformance has developed codes and policies…
HUMAN RIGHTS
LABOR
ENVIRONMENT
ANTI-CORRUPTION
65
CORPORATE SOCIAL RESPONSIBILITYCSR ROADMAP
CSR
Environment
Ethics
Impact on local
communi-ties
Preferredemployer
Diversity & Inclusion
Working Conditions
Training and development
Well-being at work
Premises Standard
Diversity & Inclusion Policy and campaigns
Global Codes and Policies. e.g.: Code of ConductGlobal Ethics hotline
Environmental Policy
Health & Safety Policy
▪70% of employees work in a subsidiary that has been recognized as a best employer
▪75% of the Group’s non-agent positions are filled internally
66
GOVERNANCE STRUCTUREREINFORCING TELEPERFORMANCE ORGANIZATION CHART
* for 12 months
→ Executive committee: 8 members (see above)→ Management committee (including the executive committee): 21 members,
with an average age of 48 years and average seniority of 10.2 years in the Group
Daniel Julien Chairman and CEO
Olivier RigaudyFinance and Markets
Leigh RyanLegal
• TAPs• R&D• Marketing• Lean Six Sigma • IT & CISO
Eric Dupuy
Global Business Development
• EWAP (EW/APAC) • CEMEA • IBERO-LATAM• D.I.B.S
Bhupender Singh*
D.I.B.S. India
Scott Klein
Specialized Services
Jeff Balagna Agustin Grisanti
Global COO’s - Operations
Bhupender Singh
President at CEO office“Transformation”
• LanguageLine Solutions• TLScontact
• ARM
67
GOVERNANCE STRUCTUREAN EXPERT, BALANCED AND INDEPENDENT BOARD OF DIRECTORS
68
TELEPERFORMANCE SHAREHOLDINGINTERNATIONAL CAPITAL OWNERSHIP*
Asia4%
North America
32%
United Kingdom15%
France27%
ContinentalEurope
(excl. France)22%
Institutionalinvestors84%
Other**14%
* As of September 15, 2019
** Others include % capital
• Daniel Julien 2.0%
• 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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