2013 ANNUAL RESULTS INVESTOR PRESENTATION

Transcription

1 2013 ANNUAL RESULTS INVESTOR PRESENTATION

2 AGENDA EXECUTIVE SUMMARY GROUP OVERVIEW IN FINANCIAL RESULTS STRATEGY AND OUTLOOK APPENDICES 2

3 OUTLOOK RESULTS OVERVIEW IN 2013 SUMMARY DETAILED TABLE OF CONTENTS 1. EXECUTIVE 2013: A RECORD YEAR 2013: A YEAR OF TRANSITION IN LEADERSHIP KEY FIGURES GROUP MARKET ENVIRONMENT TELEPERFORMANCE TODAY TELEPERFORMANCE S MISSION INCREASINGLY DIVERSIFIED CLIENT BASE DEVELOPMENT OF NEARSHORE/OFFSHORE POSITIONING GLOBAL LEADERSHIP KEY FACTS 9 SOLID CLIENT MIX PROFILE FINANCIAL SUMMARY P&L REVENUE GROWTH SOLID MOMENTUM IN EVERY REGION REVENUE BY REGION OPERATING PERFORMANCE EARNINGS PERFORMANCE CASH FLOW FINANCIAL STRUCTURE SUMMARY BALANCE SHEET DIVIDEND STRATEGY & GROWTH STRATEGY 2014 OUTLOOK CONCLUSION APPENDICES FROM PAGE 40 T0 PAGE 56 See appendices table of contents page 39 3

4 EXECUTIVE SUMMARY

5 2013: A RECORD YEAR FOR TELEPERFORMANCE Revenue: 2,433 million or $3,236 million Aggressive like-for-like growth: + 7.9% Strong investment in the future: Capex at 5.2% of revenue and +10,000 workstations EBITA margin raised to 9.3%, despite extra ramp-up costs ROCE improved to 11.7% from 11.3% in

6 2013: A YEAR OF LEADERSHIP TRANSITION TO BUILD THE NEXT 20 YEARS May 2013: roles of Chairman and CEO split A thoughtful 3-year transitional leadership process Paulo César Salles Vasques: rise of the forty-somethings to senior management positions Daniel Julien: transfer experience and in-depth knowledge of the Group s unique features and of world markets A 3 YEARS TRANSITION PLAN: A mix between a well organized transmission of knowledge and experience, and the rise of a new management generation integrating the changing characteristics of customers behavior of the millennium (mobility, multichannels, social networks, data analytics) 6

7 2013 KEY FIGURES STRONG PERFORMANCE IN LINE WITH GROUP OBJECTIVES 2,347 2,433 Revenue ( millions) Recurring EBITA ( millions) Margin 9.1% % , % FY 2011 FY 2012 FY 2013 FY 2011 FY 2012 FY % 11.7% ROCE (%) EPS ( ) - Dividend pay-out (%) 30% 35% Pay-out % 28% 1.63 FY 2011 FY 2012 FY 2013 FY 2011 FY 2012 FY

8 GROUP OVERVIEW IN 2013

9 2013 KEY FACTS GROWTH DRIVERS EWAP and Latin America region: 70% of revenue Gradual recovery in Europe WIDENING FOOTPRINT Philippines and USA Mexico, Colombia, Brazil and Portugal THE POWER TO DIFFERENTIATE High market recognition Pursuing new verticals and innovation (multilingual hub, CX Lab, etc.) 9

10 MARKET ENVIRONMENT (1) IDC - +5/6% per annum until 2017 Outsourcing rate rising, in particular with increased penetration in new verticals 48 Worldwide outsourced Customer Interaction Market ( ) US$bn Percent outsourced Outsourced 26% In house 74% Source: IDC May Worldwide outsourced interaction customer market including customer services, marketing & technical support/help desk, excluding debt collection. Source: IDC and Kaulkin & Ginsberg 10

11 MARKET ENVIRONMENT (2) COMPETITIVE LANDSCAPE Teleperformance, No. 1 worldwide in the customer experience management market 6% share of a fragmented market $3 500 $3 000 $3,236 $2,821 Ranking by 2013 revenue (US$ millions) Ranking by number of countries physical operations (2013) $2 500 $2 000 $1 500 $1 000 $500 $2,046 $2,000 $1,682 $1,438 $1,263 $1,224 $1,180 $997 $869 # Competitors Countries 1 Teleperformance 46 2 Transcom 26 3 Sitel 23 4 Stream 22 5 Sykes 21 6 Atento 16 7 Convergys 15 $- 8 EGS 12 9 Teletech West (Comm.) 6 11 Contax 4 FX rate used for = US$1.33 and 1BRL = USD$ For some competitors, 2013 revenue is an estimate 11

12 TELEPERFORMANCE TODAY THE WORLDWIDE LEADER IN OUTSOURCED MULTICHANNEL CUSTOMER EXPERIENCE MANAGEMENT Founded in revenue 2.4bn 149,000 Employees 110,000 Workstations Operations in 46 countries Teleperformance, the worldwide leader in outsourced multichannel customer experience management, serves companies around the world with customer care, technical support, customer acquisition and debt collection programs. 12

13 TELEPERFORMANCE S MISSION THE "OIL" IN THE 21ST CENTURY ECONOMIC ENGINE THE MISSION People interacting with people, helping them to solve their day-to-day issues Managing People Care and discipline Streamlined process to gain efficiency BUSINESS PROFILE BUSINESS VALUE The oil in the 21 st Century Economic Engine Quality Security Reliability SUCCESSFUL BUSINESS MODEL Vertical expertise, quality of delivery and long-term business partnership driving growth and margins 13

14 A SOLID CLIENT MIX PROFILE A STRONG, DIVERSIFIED CLIENT BASE Increasingly diverse client base Average tenure of client relationship: between 10 and 12 years depending on the top-client segment 2013 top clients as a % of revenue Shift in top-client segments since 2007 Top 1 7% 40% 35% Top 5 22% 30% Top 10 Top 20 Top 50 34% 48% 68% 25% 20% 15% 10% 28% 22% 38% 34% Top % 5% 0% 10% 7% Top 1 Top 5 Top

15 INCREASINGLY DIVERSIFIED CLIENT BASE VERTICAL DIVERSITY 2013 revenue by industry Revenue by industry, last three years Public sector 3% Travel 4% Retail 4% Energy 4% Healthcare & Insurance 5% Others 9% Telecom- Internet 33% 40% 35% 30% 25% 20% 15% 10% 5% 0% Finance 10% Technology & Electronics 14% Pay TV 14% Non-telco sectors have risen from 62% to 67% In 2014, the trend towards diversification should continue led by expansion in healthcare and insurance 15

16 DEVELOPMENT OF NEARSHORE/OFFSHORE SOLUTIONS (1) A WORLDWIDE INTEGRATED NETWORK A UNIQUE OFFERING OF SOLUTIONS Steady growth in nearshore/offshore solutions 2013 revenue by sourcing Revenue by sourcing ( ) Nearshore / Offshore 29% 100% 80% 74% Domestic 71% 60% 40% 20% 0% 71% 29% 26% Domestic Nearshore/offshore 16

17 DEVELOPMENT OF NEARSHORE/OFFSHORE SOLUTIONS (2) A WORLDWIDE INTEGRATED NETWORK A UNIQUE OFFERING OF SOLUTIONS With a network of 22 offshore/nearshore locations around the world, Teleperformance is the only industry player able to offer worldwide integrated Domestic, Nearshore & Offshore solutions 17

18 POSITIONING GLOBAL LEADERSHIP (1) TELEPERFORMANCE, THE WORLDWIDE LEADER Gartner Magic Quadrant Teleperformance is the largest CM contact center BPO service provider in the world, by revenue [ ] and by geographical footprint Frost & Sullivan Frost and Sullivan confirms Teleperformance s leadership over competitors in the contact center outsourcing market Everest Group Teleperformance has strategically positioned its business to assume a leadership role from multiple perspectives. Gartner Magic Quadrant 18

19 POSITIONING GLOBAL LEADERSHIP (2) 2013: STRONG MARKET RECOGNITION FOR GROUP STRATEGY Best improvement among SBF 120 index companies for its financial information Teleperformance elected one of the 70 Best Companies To Work For in Brazil Teleperformance wins Great Place to Work Award India Teleperformance named a Best Place to Work in Greece TLScontact ranked a Best Company to Work for in Greater China First in class Data Security and DRP: SC Magazine Teleperformance is positioned as a Worldwide Leader in the 2012 Gartner Magic Quadrant for Customer Management Contact Center BPO Teleperformance UK wins international award for Best Use of Social Media in the contact center Teleperformance Portugal wins 4 Contact Center World awards Teleperformance is a recipient of the 2013 CRM Magazine Service Leader Winner in the Outsourcing category. Frost & Sullivan Brazilian Competitive Strategy Innovation & Leadership Award Frost & Sullivan Argentinean Customer Value Leadership Award Frost & Sullivan Asia Pacific Contact Center Outsourcing Service Provider of the Year Award Special recognition for sustained industry leadership 20 Global Awards: TLScontact wins BSI Excellence Award - Excellence Information Security Management IDC Market Scape: Worldwide Customer Care BPO Services 2013 Vendor Analysis 19

20 2013 FINANCIAL RESULTS

21 2013 RESULTS SUMMARY P&L millions Change 1 = US$ = US$1.29 Revenue 2, , % Like-for-like growth + 7.9% EBITDA before non-recurring items* % revenue 13.3% % + 6.0% EBITA before non-recurring items* % % revenue 9.3% 9.1% Operating profit % Net profit attributable to shareholders Diluted earnings per share ( ) * Before amortization of acquired intangible assets and non-recurring items. 21

22 2013 RESULTS REVENUE GROWTH Organic growth: + 7.9% Strong negative currency effect, due primarily to the weakening of the US dollar and Brazilian real against the euro millions 2, , ,432.9 (93.2) 2012 Currency effect 2012 Like-for-like Organic growth

23 2013 RESULTS SOLID BUSINESS MOMENTUM IN EVERY REGION Revenue by region, 2013 vs ( millions) Revenue mix in Ibero-LATAM 31% EWAP 39% CEMEA Ibero-LATAM EWAP CEMEA 30% Strong organic growth in English-speaking market & Asia-Pacific (EWAP) and Ibero-LATAM regions Gradual recovery in most of the Continental Europe & MEA countries On-going improvement in the regional mix over the last 4 years, with 70% of revenue generated in profitable, growing, leading economies today vs. 65% in

24 2013 RESULTS REVENUE BY REGION millions Reported % Change Like-for-like English-speaking market & Asia Pacific % + 8.1% Ibero-LATAM % % Continental Europe & MEA % + 4.6% TOTAL 2, , % + 7.9% millions Q Q Reported % Change Like-for-like English-speaking market & Asia Pacific % + 9.2% Ibero-LATAM % + 3.8% Continental Europe & MEA % + 8.3% TOTAL % + 7.3% 24

25 2013 RESULTS ENGLISH SPEAKING MARKET & ASIA-PACIFIC (EWAP) Revenue ( millions) Sustained growth in EWAP: + 8.1% lfl % LFL Acceleration in Q4 auguring continuing growth in 2014 Expansion in China led by ramp-up of recent contracts signed with multinational clients this positive trend should continue in % revenue % Recurring EBITA * ( millions) 10.0% New capacities to prepare future growth Double-digit margin maintained (10%), despite Negative currency effect on the cost base (transaction effect) this effect should turn positive in 2014 Ramp-up costs in the USA * Excluding holdings 25

26 2013 RESULTS IBERO-LATAM % LFL Revenue ( millions) Strong organic growth in Ibero-LATAM, notably in Mexico, Colombia and Portugal Slowing growth in Brazil Uncertain environment in Argentina New capacities to sustain future growth % revenue % Recurring EBITA * ( millions) 11.8% Double-digit margin maintained: 11.8% despite High base of comparison Negative impact of Argentina * Excluding holdings 26

27 2013 RESULTS CONTINENTAL EUROPE & MEA Revenue ( millions) Growth in CEMEA : + 4.6% lfl Acceleration of growth in H2, notably % LFL In southern Europe (Italy, Greece, Turkey) In northern Europe (Netherlands) Continuing development of the multilingual hub solution % revenue % Recurring EBITA * ( millions) % +1.8% Improvement in margin Impact from business growth Satisfactory results in Northern and Southern Europe, with a confirmed recovery in Italy * Excluding holdings 27

28 2013 RESULTS OPERATING PERFORMANCE Increase in recurring EBITA margin Increase in non-recurring items and amortization of intangible assets millions Change Revenue 2, , % EBITA before non-recurring items % % revenue 9.3% 9.1% Non-recurring items - Restructuring costs - Performance share plans - Other (18.2) (3.9) (10.0) (4.3) (11.8) (2.0) (9.8) 0.0 Amortization/Impairment of intangible assets (11.2) (8.9) Operating profit % 28

29 2013 RESULTS EARNINGS PERFORMANCE Earnings per share stable at 2.27 euros millions Change Operating profit % Net finance cost (7.6) (7.3) + 4.1% Income tax (59.4) (56,5) + 5.6% Effective tax rate 31.5% 30.4% Non-controlling interests Net profit attributable to shareholders (0.5) (1.9) Diluted earnings per share ( )

30 2013 RESULTS CASH FLOW Sustained strong cash flow generation Impact of the robust organic growth in EWAP and Ibero-LATAM regions on capex ratio Increase in WCR outflow resulting from the faster growth in EWAP in late 2013 millions Cash flow before taxes Income tax paid (71.1) (57.2) Cash flow* Change in working capital (WCR) Net capital expenditure Capex as a % of revenue (46.2) (126.1) 5.2% (26.0) (108.4) 4.6% Net free cash flow * Internally generated funds from operations 30

31 2013 RESULTS FINANCIAL STRUCTURE Solid financial structure Net cash position negatively impacted by translation effect and earn-out millions (46.2) 80.0 (126.1) (17.3) (16.9) (23.3) 86.8 Net cash as of 12/31/2012 Cash flow Change in WCR Net capex Net investment Dividends paid Non-cash adjustment* Net cash as of 12/31/2013 millions 12/31/ /31/ = US$ = US$1.38 Equity 1, ,395.4 Net cash * Non-cash adjustment Translation (10.3) Earn-out (11.0) Other (2.0) Total (23.3) 31

32 2013 RESULTS SUMMARY BALANCE SHEET millions 12/31/ /31/12 1 = US$ = US$ /31/ /31/ = US$ = US$1.38 Goodwill and intangible assets Shareholders equity 1, ,376.3 Property, plant and equipment Non-controlling interests Other non-current assets Equity capital 1, ,382.4 Trade receivables Trade payables Current income tax receivable Current income tax Other current and financial assets Provision and deferred tax Cash and cash equivalents Other current liabilities Debt* Total Assets 1, ,922.8 Capital Employed 1, ,322.1 Total Liabilities 1, ,922.8 * Of which earn-out Days Sales Outstanding

33 2013 RESULTS DIVIDEND Increase in the pay-out ratio 0,90 0,80 0,70 Pay-out ratio 30% % 0.80* 36% 34% 32% 0,60 0,50 0,40 0,30 21% 26% % % 28% 26% 0,20 24% 0,10 22% 0, % * Submitted to shareholder approval at the Annual Meeting on May 7,

34 STRATEGY AND OUTLOOK

35 GROWTH STRATEGY THE POWER TO DIFFERENTIATE 1- ORGANIC GROWTH 3 STRATEGIC OBJECTIVES SUPPORTED BY Developing activities first in North America and BRICS Diversifying and developing activities through new verticals Developing multichannel customer experience management 3 STRATEGIC TOOLS Leadership assets to leverage market trends Focus on vertical expertise Boosting marketing and business development 2- ACQUISITIONS A strong balance sheet supporting a proactive targeted acquisitions strategy 35

36 2014 OUTLOOK Organic growth objective Like-for-like revenue growth between + 5% and + 7% (outpacing the market average) Recurring EBITA margin objective Between 9.5% and 9.7% Continuing increase in ROCE 36

37 CONCLUSION TELEPERFORMANCE S VALUE CREATION STRATEGY Teleperformance s value creation strategy ROCE Objective Focus on organic growth in revenue by developing new verticals and leveraging the mobility revolution Increase EBITA margin by expanding in highmargin markets (Americas) and recovering in key countries in Europe 8.8% 9.1% 11.3% 11.7% > 12.5% by 2015 Efficiently allocate resources and maintain tight capex discipline Deploy a selective M&A strategy targeting the US market in priority

38 APPENDICES

39 LIST OF APPENDICES POSITIONING GLOBAL LEADERSHIP A CONTINUING GROWTH STORY PREPARING THE FUTURE A SOLID AND BALANCED OPERATIONS PORTFOLIO TELEPERFORMANCE LEADERSHIP ASSETS PEOPLE STRATEGY = CARE TELEPERFORMANCE PROCESSES = DISCIPLINE CX LAB: A UNIQUE INNOVATIVE RESEARCH CENTER DEVELOPMENT OF MULTILINGUAL SOLUTIONS 47 TP PLATINUM: A KEY DIFFERENTIATOR 48 MULTICHANNEL APPROACH: SOCIAL MEDIA SOLUTIONS 49 MULTICHANNEL APPROACH: VISA OUTSOURCING SOLUTIONS 50 PROVEN MANAGEMENT AND ORGANIZATION 51 ALIGNED MANAGER & SHAREHOLDER INTERESTS 52 CURRENCY EXPOSURE SHAREHOLDING STRUCTURE KEY FIGURES ( ) 56 39

40 POSITIONING GLOBAL LEADERSHIP A CONTINUING GROWTH STORY MASS MARKETING (Ph. Kotler) Tactical telemarketing. Phone as an additional marketing tool efficient, fast and powerful. Outbound activity. TOTAL QUALITY MANAGEMENT Client-integrated strategy. Client satisfaction. Customer care. Toll-free numbers. CUSTOMER RELATIONSHIP MANAGEMENT Efficient client services. Markets opened to competition. Inbound activity. CUSTOMER EXPERIENCE MANAGEMENT MOBILE REVOLUTION X 4 in mobile devices.* X 40 in exabyte traffic.* With voice traffic still forecast to double!* TELEPERFORMANCE #1 IN FRANCE TELEPERFORMANCE #1 IN EUROPE TELEPERFORMANCE WORLDWIDE LEADER * Source: Ericson forecasts

41 POSITIONING GLOBAL LEADERSHIP PREPARING THE FUTURE: FOCUS ON EWAP & IBERO LATAM REGIONS 16 new sites, i.e close to 10,000 new workstations 6 new sites in EWAP region: USA and Philippines 8 new sites in Ibero-LATAM region: Brazil, Colombia, El Salvador, Mexico, Spain and Portugal 2 new sites in CEMEA: Greece and Turkey El Salvador Mexico Philippines 41

42 POSITIONING GLOBAL LEADERSHIP A SOLID AND BALANCED OPERATIONS PORTFOLIO Mostly Inbound*services Mostly Customer services and Technical support 2013 revenue by type of contact 2013 revenue by type of service Face-to-face, , chat 8% Outbound services 12% Other 2% Other 4% Debt collection 5% Acquisitions 8% Inbound* services 78% Technical support 23% Customer services 60% Receiving calls 42

43 TELEPERFORMANCE LEADERSHIP ASSETS PEOPLE STRATEGY = CARE Our people strategy, a key factor of differentiation Satisfied employees make satisfied customers make satisfied clients HIRING Processes based on our worldwide best practices on how to attract the right people TRAINING Flexible learning paths with customized development plans according to each employee's expectations and needs - with convenient access at anytime from anywhere in the world (E-learning): Teleperformance E-Institute CAREER OPPORTUNITIES Based on a dedicated training program, the program assists employees in becoming leaders by rising from contact center advisor to supervisor, from supervisor to coordinator and lastly, from coordinator to manager: JUMP 43

44 TELEPERFORMANCE LEADERSHIP ASSETS PEOPLE STRATEGY = CARE Premium Campus concept Promoting well-being and better quality of life by creating a happy, pleasant work environment and minimizing employee stress Appealing, strategic work locations Attractive, comfortable and ergonomic architecture and workplaces LEED certifications, relaxing rooms, gyms and self-education e-learning Initiatives to promote arts and sports For Fun Festival: worldwide contest of art, dance and music Philippines Sport club: worldwide initiative to encourage employees to share by playing team sports together 44

45 TELEPERFORMANCE LEADERSHIP ASSETS TELEPERFORMANCE PROCESSES = DISCIPLINE Teleperformance processes are designed to ensure the same quality, consistency and security in service delivery in every country TOPS: Different tools and exclusive methodologies to increase quality and performance in all our programs around the world BEST: Structured processes to define, share and ensure the implementation of worldwide best practices, assuring consistency and quality in all operations Teams of experts focused in each of our clients KPIs with the objective of continuously improving the performance of their programs An information security strategy ensuring that we ll always be ahead of the market in security practices. The quality of our management systems is certified (ISO, COPC, PCI) and has led us to recognized compliance leadership 45

46 TELEPERFORMANCE LEADERSHIP ASSETS CX LAB: A UNIQUE INNOVATIVE RESEARCH CENTER The Teleperformance CX Lab is an innovative research center dedicated to customer behavior trends and satisfaction across geographies and industries: Reports on how major brands in each vertical are interacting with their customers Annual survey to map how customers interact and prefer to interact with brands Forum about each vertical to discover trends and benchmarks The Lab is supported by a team of specialists and researchers able to develop projects in 20+ languages and bringing together skills in such areas as customer care, industry research, analytics, social media, Internet interactions, and mobile services. EXAMPLE OF 2013 ACHIEVEMENTS In-depth analysis of how the customer experience is managed in the healthcare industry in Brazil, USA and Mexico 46

47 TELEPERFORMANCE LEADERSHIP ASSETS CONTINUING DEVELOPMENT OF MULTILINGUAL HUB SOLUTIONS Addressing the pan-european programs with a state-of-the art multilingual campus Strong Multilingual Hub Network: 5 countries Portugal, Greece, Egypt, Turkey and the Netherlands Across all channels of interaction Telephone, Fax, , Chat, Post, Call-Me-Now, Social Channels Extremely successful in attracting young graduates from every European country by providing beneficial life experiences Extension in 2013, reflecting continuing success of the solution Portugal: the new Atlantico site Greece: the new Tavros site The new Atlantico site in Portugal The new Tavros site in Greece 47

48 TELEPERFORMANCE LEADERSHIP ASSETS TP PLATINUM: A KEY DIFFERENTIATOR Premium solution adopted by companies deploying a segmentation strategy to secure their most valuable customer base Extensive development: More than 60 programs in every region, particularly in Ibero-LATAM and CEMEA Around 3,200 employees in 2013 Diversified industries: Technology, Finance, Pay TV, Airlines, Consumer Services OUTSTANDING RESULTS 11% improvement in quality monitoring score compared to other programs 25% reduction in Repeated Calls 15% increase in First Call Resolution 17% Higher Productivity (speaking time per agent)

49 TELEPERFORMANCE LEADERSHIP ASSETS MULTICHANNEL APPROACH: OFFERING SOCIAL MEDIA SOLUTIONS e-performance: A digital solution including monitoring, in-depth analysis and advocacy of social media 3 component solutions: Social media mapping Social media strategy Actionable insights The e-performance Hub in Portugal (example) Servicing 7 languages (English, French, German, Italian, Spanish, Turkish and Portuguese) and 14 countries Through agents with native capabilities Social media clients in diversified sectors: Retail, Electronic, Technology, Financial services, Pay TV, Medicine, etc. A SUCCESSFUL SOLUTION IN THE UK Teleperformance partnership with National Health Service Blood & Transplant (NHSBT): - Acting as a social media manager. - Turning negative postings into positive. - Checking all tweets and postings through a quality control process. 49

50 TELEPERFORMANCE LEADERSHIP ASSETS MULTICHANNEL APPROACH: TLSCONTACT OFFERING VISA OUTSOURCING SOLUTIONS Joined Teleperformance in full acquisition completed in 2013 A pioneering BPO company specialized in Face-to-Face contact centers Main contract so far: Outsourcing visa applications for consular services Strong Teleperformance position in the public sector Countries: Served: France, Germany, Italy, Netherlands, Switzerland and UK Operations: 50 countries FOCUS ON THE CONTRACT SIGNED WITH THE UK HOME OFFICE in 2013 (UK Visas & Immigration) Starting on April m over 9 years 2 regions covered: Africa and Euro-Med Allowing the Home office to offer more services in more locations around the world Making it easier for people to apply to come to the UK 50

51 TELEPERFORMANCE LEADERSHIP ASSETS PROVEN INTERNATIONAL MANAGEMENT AND ORGANIZATION CHAIRMAN OF THE BOARD DANIEL JULIEN CHIEF EXECUTIVE OFFICER PC SALLES VASQUES TP SA (FRANCE): CORPORATE FINANCE TGI (USA): GLOBAL OPERATIONS MANAGEMENT EWAP CEMEA IBERO-LATAM SOUTHERN EUROPE NORTHERN & EASTERN EUROPE FRENCH MARKET 51

52 TELEPERFORMANCE LEADERSHIP ASSETS ALIGNED MANAGER AND SHAREHOLDER INTERESTS An incentive share plan was implemented in July 2013 The share plan is dedicated to 120 corporate officers whose contribution is key to the Group s development The allotment is subject to strictly defined and demanding criteria to align employee performance and shareholder interests The vesting period is 3 years ( ) Performance cumulative criteria: 16.0% growth in revenue at constant exchange rates 27.0% growth in EBITA excluding non-recurring items ROCE greater than or equal to 12.5% after tax 52

53 CURRENCY EXPOSURE (1) TRANSACTION EFFECT Transaction effect: impact on margin Nearshore/Offshore activities Cost and sales in different currencies Exposure: Philippine peso Mexican peso Australian dollar Colombian peso Tunisian Dinar Egyptian pound Indian rupee Turkish lira. Hedging of Group annual budgets 2013 revenue by sourcing Nearshore/Offshore 29% Domestic 71% Domestic activities are not subject to the transaction effect: no direct impact on margin US dollar Brazilian real Pound sterling Swiss franc Canadian dollar Swedish krona, etc. 53

54 CURRENCY EXPOSURE (2) TRANSLATION EFFECT Translation effect: no impact on margin* Translation of foreign subsidiaries results into euros on consolidation Impact on revenue and earnings in value Main exposure: US dollar Brazilian real Pound sterling Revenue by currency (2013) Colombian peso 4% Mexican peso 4% Pound sterling 7% Brazilian real 8% Others 14% Euro 27% US dollar 36% * At constant mix 54

55 SHAREHOLDING STRUCTURE AN INTERNATIONAL CAPITAL OWNERSHIP* Listed on the NYSE Euronext Paris stock market An international shareholding structure reflecting the Group s global footprint By region United Kingdom 13% Others include: Others 14% % Capital Institutional investors 86% Continental Europe ** 27% North America 34% Daniel Julien 1.4% Treasury shares 0.2% Retail investors 10.6% France 26% * Excluding France * As of November, 30 th

56 KEY FIGURES ( ) PROVEN FINANCIAL TRACK RECORD Profitable growth millions Revenue 2,433 2,347 2,126 2,059 1,848 1,785 EBITDA* EBITA* % revenue 9.3% 9.1% 8.5% 8.5% 8.5% 10.2% EBIT Net profit Diluted EPS ( ) Net capex * Excluding non-recurring items 56

57 INVESTOR RELATIONS CONTACT