2017 Investor Day › media › 3924082 › ... · Global outsourced CX market expected to grow...
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2017 Investor Day January 19 th , 2017 The Breakers Resort Palm Beach, Florida A global leader in customer experience expanding in high-value specialized services
Transcript of 2017 Investor Day › media › 3924082 › ... · Global outsourced CX market expected to grow...
2017 Investor Day
January 19th, 2017
The Breakers Resort
Palm Beach, Florida
A global leader in customer experience expanding in high-value specialized services
The consolidated financial statements have been audited and certified.
All forward-looking statements are Teleperformance management’s presentexpectations of future events and are subject to a number of factors and uncertaintiesthat could cause actual results to differ materially from those described in theforward-looking statements. For a detailed description of these factors anduncertainties, please refer to the section “Risk Factors” section of our RegistrationDocument, available at www.teleperformance.com. Teleperformance undertakes noobligation to publicly update or revise any of these forward-looking statements.
DISCLAIMER
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AGENDA
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Opportunities in China and India- Focus on China- Focus on India
Specialized Services and Omnichannel Solutions- Face-to-face Visa services (TLScontact)- Online Interpretation services (LanguageLine Solutions)- Omnichannel Solutions (TP Client, TP Observer, Artificial Intelligence)- Analytics Solutions (OnTarget, InTouch)
Financial Performance- 2011-2016: Moving on the right track- 2017-2020: Maintaining discipline and accelerating further
Market Environment and Group Strategy- Attractive market prospects across all geographies, still room for
consolidation- Teleperformance: a global leader in outsourced customer experience,
with two main business lines supporting its 2020 objectives
Global Clients Management- Setting up a client-centric culture- Leveraging on « network effect » with global accounts
Market Environment and Group Strategy
Daniel JulienGroup Executive Chairman
Paulo César Salles VasquesGroup Chief Executive Officer
North America domestic
23%
LATAM offshore
4%
LATAM10%
EMEA26%
APAC23%
APAC offshore13%
Global outsourced customer experience (CX) market size in 2017: $68bn*
• 40% of volumes generated in North America, the largest market, including APAC and
LATAM offshore
Market growth: + 4% in 2017**, in line with 2016-2020 CAGR*
AN ATTRACTIVE MARKET ENVIRONMENT
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Global outsourced CX market* (2014-2020)
$bn
2017 Global outsourced CX market* –Breakdown by region (%)
A SIZABLE MARKET WITH COMPELLING MID-TERM MARKET GROWTH…
* Frost & Sullivan (August – September 2016)
$68bn
North America
** In value ($)
63.0 63.7 65.2 68.1 71.1 74.2 77.4
1.2%
2.2%
4.5% 4.4% 4.4% 4.3%
2014a 2015e 2016e 2017e 2018e 2019e 2020e
Revenues % growth
Global outsourced CX market expected to grow across all regions
• APAC (domestic), the fastest-growing market at a 2016-2020 CAGR of + 6.0%, of which China at + 16.6% and India at + 7.1%*
Also worth to be noted: 2016-2020 CAGR of + 8.8% in Nearshore market for North America
AN ATTRACTIVE MARKET ENVIRONMENT
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… ACROSS ALL REGIONS…
* Frost & Sullivan (August – September 2016)** Contact Center Outsourcing
Global outsourced CX market* 2016-2020 growth by region (%)
Focus on China and India 2016-2020 domestic market growth* ($bn)
CAGR 2016-2020$bn 2016e 2017e 2018e 2019e 2020e
CAGR 2016 - 2020
North America domestic 15.5 15.8 16.1 16.4 16.6 + 1.8%
% growth + 1.9% + 1.9% + 1.8% + 1.7%
LATAM nearshore for NA 2.4 2.6 2.8 3.1 3.3 + 8.8%
% growth + 9.6% + 9.3% + 8.5% + 8.0%
APAC offshore for NA 8.7 9.1 9.5 9.9 10.3 + 4.3%
% growth + 4.5% + 4.3% + 4.2% + 4.1%
Total North America 26.6 27.5 28.4 29.3 30.3 + 3.3%
% growth + 3.4% + 3.4% + 3.3% + 3.2%
LATAM (domestic) 6.5 6.9 7.3 7.7 8.1 + 5.7%
% growth + 5.1% + 6.0% + 6.2% + 5.5%
APAC (domestic) 14.8 15.7 16.7 17.7 18.7 + 6.0%
% growth + 6.1% + 6.1% + 6.0% + 5.9%
EMEA 17.3 17.9 18.6 19.4 20.1 + 3.8%
% growth + 3.6% + 3.7% + 4.0% + 4.1%
Total CCO** Market 65.3 68.0 71.0 74.1 77.3 + 4.3%
% growth + 4.2% + 4.4% + 4.4% + 4.3%
1,1681,352
1,5741,848
2,160
4,0324,345
4,6744,989
5,311
-
1000
2000
3000
4000
5000
6000
2016e 2017e 2018e 2019e 2020e
China India
+7.1%
+16.6%
Outsourced CX market expected to grow across all vertical segments
• In North America, Healthcare and Technology both growing above + 5%*
Increasingly complex and dematerialized world, requiring omnichannel solutions
• Even if “Voice” remains the largest channel by far, double-digit growth prospects for “Chat” and “Social Media” are worth to be noted
AN ATTRACTIVE MARKET ENVIRONMENT
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… DRIVEN BY CONSTANT DEVELOPMENT OF CUSTOMER INDIVIDUAL INTERACTIONS…
North America Outsourced CX market* 2016-2020 mix by vertical segment
Extrapolated Global 2016-2020 CAGR* by channel
North America ($bn) 2016e 2017e 2018e 2019e 2020eCAGR
2016 - 2020
Telecom 6.9 7.1 7.3 7.5 7.8 + 3.0%
% total 25.9% 25.9% 25.8% 25.7% 25.6%BFSI 6.3 6.4 6.6 6.8 7.0 + 2.9%
% total 23.6% 23.4% 23.3% 23.2% 23.2%Technology 3.2 3.4 3.6 3.8 4.0 + 5.1%
% total 12.2% 12.4% 12.7% 12.9% 13.1%Healthcare 3.2 3.4 3.6 3.7 3.9 + 5.3%
% total 12.0% 12.3% 12.5% 12.8% 13.0%Retail 2.9 3.0 3.1 3.1 3.2 + 2.3%
% total 11.0% 10.9% 10.8% 10.7% 10.6%Travel & Hospitality 1.4 1.5 1.5 1.5 1.5 + 2.2%
% total 5.3% 5.3% 5.2% 5.2% 5.1%Others 2.6 2.7 2.7 2.8 2.9 + 2.0%
% total 9.9% 9.8% 9.7% 9.5% 9.4%
Total NA CCO** Market 26.6 27.5 28.4 29.3 30.3 + 3.3%
Voice + 6.2%
+ 12.2%
+ 7.8%
+ 8.4%
Chat
Face-to-Face
+ 7.5%SMS
+ 10.5%Others
+ 18.0%Social Media
* Frost & Sullivan (August – September 2016)** Contact Center Outsourcing
Teleperformance6%
Convergys5%
Alorica4% Atento
3%
Concentrix3%
Acticall3%
Teletech2%
Arvato2%
Sykes2%
Contax2%
AN ATTRACTIVE MARKET ENVIRONMENT
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… IN A STILL FRAGMENTED COMPETITIVE CONTEXT
Top 10 operators represent c.30% of global outsourced CX market Market still being consolidated by its leaders
• 2016: LanguageLine Solutions• 2014: Aegis USA
Teleperformance
• 2014: Stream Global ServicesConvergys
• 2016: Expert Global Solutions• 2015: West Corporation
Alorica
• 2016: MinacsConcentrix
• 2015: Sitel WorldwideActicall
Top 10 2015 Revenue - % of 2015 global outsourced CX market
Total Top 10: $19bn(c.30% of 2015 global
outsourced CX market)
Average FX rate 2015 > 1€ = US$1.11 | 1 R$ = US$ 0.30Sources: Company estimates, publications, press releases
A GLOBAL LEADER IN CUSTOMER EXPERIENCE…
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TELEPERFORMANCE: MARKET LEADER LEVERAGING A UNIQUE GLOBAL NETWORK…
Operations in 71* countries, with more than 200,000* employees serving 160+* markets
in 240+* languages
Countries where TP operates
Countries where TP serves
* 2016 estimates
3,772
2,951
2,320
1,966 1,817
1,618 1,429
1,326 1,286
963
388251
n.a. n.a. n.a. n.a.111
n.a.109
(30)
Teleperformance Convergys Alorica EGS Atento Concentrix Minacs Acticall Teletech Arvato Sykes Contax
2015 Sales 2015 EBITA
10.3% 8.5% 8.5% 7.8% (3.1%)n.a. n.a. n.a. n.a.n.a.
A GLOBAL LEADER IN CUSTOMER EXPERIENCE……CLEARLY AT THE TOP OF THE “CCO” LEAGUE…
10Average FX rate 2015 > 1€ = US$1.11 | 1 R$ = US$ 0.30Sources: Company estimates, publications, press releases
2015 Revenue/Recurring EBITA for the most comparable “CCO” competitors ($m)
Recurring EBITA
Margin
+7.5%
+0.0% n.a.
+9.6%
n.a.
(1.1%)
+4.7%
n.a.
(3.1%)
(7.0%)
+7.8%
n.a. n.a.
(0.5%)
+3.0%
n.a. n.a. n.a. n.a.
n.a.
Organic sales growth 2015 Organic sales growth 9m 2016
A GLOBAL LEADER IN CUSTOMER EXPERIENCE…… DELIVERING CONSISTENTLY FASTER ORGANIC GROWTH…
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Organic growth for the most comparable “CCO” competitors* (%)
* Unless specified otherwise: excluding scope and currency impacts* * Assuming no scope impact
**
A GLOBAL LEADER IN CUSTOMER EXPERIENCE…… WITH THE MOST GLOBAL REACH…
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Number of countries of operations
Sources: Company estimates, publications, press releases
71
31
1614
2522
2427
21
1
Teleperformance Convergys Alorica EGS Atento Concentrix Minacs Acticall Teletech Arvato Sykes Contax
* 2016 estimates
*
14%
36%
Teleperformance Convergys
A GLOBAL LEADER IN CUSTOMER EXPERIENCE…… AND THE MOST DIVERSIFIED CLIENT BASE
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TP vs. Convergys TOP 3 clients in total revenues (%)
TP vs. Teletech TOP 5 clients in total revenues (%)
TP vs. Sykes TOP 10 clients in total revenues (%)
Teleperformance has the most diversified client base
• Top 1 client accounts for only 6% of total revenues
20%
35%
Teleperformance Teletech
31%
49%
Teleperformance Sykes
Sources : company annual reports
TELEPERFORMANCE #1 IN FRANCE TELEPERFORMANCE #1 IN EUROPE
TELEPERFORMANCE WORLDWIDE LEADER
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1978
Founded in 1978 in France
First listed on the Paris
Stockmarket
1986
Started operations in the
US
1993
Acquisitions in Argentina and
Brazil
1998
Acquisition in Mexico
2002
2003
Offshore program’s launched
Acquisition of 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
… EXPANDING IN SPECIALIZED SERVICES
* Announcement of an agreement to acquire LanguageLine Solutions on 22 August 2016
Ongoing growth story, either organically and through high profile acquisitions
…EXPANDING IN HIGH-VALUE SPECIALIZED SERVICESGRADUALLY REPOSITIONING THE GROUP…
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“CORE SERVICES”c.85% of sales
c.10% EBIT marginc.5% sales CAGR
…EXPANDING IN HIGH-VALUE SPECIALIZED SERVICES… BY EXPANDING INTO NEW AND MORE COMPLEX SERVICES
Repositioning Teleperformance as a high-end BPO provider with global reach
Customer services
Technical support
Client acquisition
“SPECIALIZED SERVICES”
c.15% of salesc.30% EBIT margin
>6% sales CAGR
Online interpretation services
Face-to-face visa processing
Analytics
Debt collection
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…EXPANDING IN HIGH-VALUE SPECIALIZED SERVICES2017-2020 STRATEGY
• Focus on boosting China and India, while keeping strong Philippines and Nearshore
Geography
• Develop omnichannel integrated solutions, such as TP Client (CRM proprietary software), TP Observer, and pursue Artificial Intelligence (bots) integration
Technology
• Focus on serving all over the world US/European and Asian multinationals• Consistency: philosophy, methods (TOPS, BEST, COPC), technology• Performance: best practices• Unique single point of contact: Strategic Account Managers (SAM)
Global clients (generating 37% of
2015 sales)
• Big data analytics applied internally (operations) and externally (clients base)
Added value
• Visa processing in Americas, online interpretations in Asia-Pacific and Europe
Specialized services cross-fertilization
• Targeted acquisitions in high-value specialized servicesStrategic
• Opportunistic acquisitions in Core-services in specific verticals and /or geographies
Tactic
Organic growth
External growth
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Group sales objective
• Maintain organic growth above market average to achieve sales of 5 billion euros by 2020
• Pursue targeted acquisitions
Revenue share objective for Specialized services
• Grow Specialized services faster than Core-services…
• …and increase the proportion of revenue from Specialized services to 20% by 2020
Group profitability objective
• Achieve recurring EBITA margin of at least 14% by 2020
…EXPANDING IN HIGH-VALUE SPECIALIZED SERVICES2020 OBJECTIVES
Specialized Services and Omnichannel Solutions2
2.1 TLScontact – Bertrand Weisgerber (TLScontact CEO)
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2.2 LanguageLine Solutions
2.3 Omnichannel Solutions
2.4 Analytics Solutions
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TLSCONTACTTELEPERFORMANCE EXTENDED OFFER IN FACE-TO-FACE CRM
History
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 above 100 million euros today, due to:
Leading edge technology
High demand from governments (budget cuts, appetite for attracting tourists…)
Increased needs for identity management (biometrics)
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TLSCONTACTTELEPERFORMANCE EXTENDED OFFER IN FACE-TO-FACE CRM
Today
Strong footprint: 140 locations across Europe, Asia and Africa
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
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TLSCONTACTPRESENT IN OVER 140 LOCATIONS ACROSS EUROPE, ASIA AND AFRICA
Countries where TP operatesand serves clients
Visa Application Centers
European Leader
in visa application outsourcing
6 million +visa interactions
annually
Present in over
140locations
SecureOperationsCertified ISO/IEC
27001: 2013
Global contracts
including the UK, Australia,
Switzerland
Ensuring quality
modern, comfortable and
secure centers
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TLSCONTACT – TELEPERFORMANCE EXTENDED OFFER IN FACE-TO-FACE CRMTLSCONTACT TODAY: PROVIDING A FULL RANGE OF SERVICES AND FLEXIBLE SOLUTIONS FOR GOVERNMENTS
INFORMATION PROVISIONFull information provision via multiple channels: face-to-face, website, voice, mobile, email, social media.
FEE MANAGEMENTManagement of online and in-centerpayments and secure fee transfer
APPOINTMENT BOOKINGIntegrated online appointment booking services, also available via telephone.
FACE‐TO‐FACE CONTACT CENTERSTo accept applications from customers and provide customer relationship management services
DOCUMENT SCRUTINYDocument completeness and correctness check, ensuring documents match a specific checklist
BIOMETRIC DATA CAPTUREMultimodal biometric data collection services using both third‐party and TLScontact‐provided solutions
BACK OFFICE SERVICESEnsuring a full service provision through back office tasks, including quality control, data entry, scanning and storage solutions
TRANSMISSION OF APPLICATIONSSecure packaging and transmission of applications to the destination of choice: electronically and physically
INTERVIEW MANAGEMENTVideoconferencing, teleconferencing and in‐person interview services
ADDITIONAL DOCUMENT REQUESTSIntegrated instruction tool for efficient additional document request solutions
APPLICATION TRACKING SERVICESUnique technology that tracks the status of the application inside and outside the VAC and provides status updates to customers
ADDED VALUE SERVICESSupplementary services to enhance the application experience, such as premium lounges, priority visa services, courier return, photo booths, printing and photocopying.
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TLSCONTACT TODAY: A STRONGLY DIFFERENTIATED OFFER BASED ON INNOVATIVE TECHNOLOGY (DEVELOPED IN HOUSE)
TLSconnect©, the back bone of ourentire face-to-face process Tracks all actions performed over an
application from start to finish.
Provides client access for complete monitoring and control and instant communication with external provider
Highly customizable and can be configured to answer specific requirements.
Enables management to oversee the process flow, handle bottlenecks, recognize chances of improvement and analyze efficiency
Easily harmonized across national borders to provide governments with a single global management system
Flexible and scalable, in order to accommodate easily new processes driven by market evolution
Application management software,developed in-house, providing
security and accountabilityeach step of the way
TLSCONTACT – TELEPERFORMANCE EXTENDED OFFER IN FACE-TO-FACE CRM
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Citizen services (transfer from global public budget to “user pays” model)
Leverage on Teleperformance capabilities (specifically LanguageLine Solutions)
Online interpretation (interview booths in TLScontact centers)
Interpretation travel cards
US market for citizen services (DMV-TSA pre-check…)
Healthcare
Assistance to refugees in Europe
Call centers + face-to-face centers + interpretation
Leading-edge technology:
E-lodging
Biometrics
Identity management
Enhanced portfolio of high-value specialized services
TLSCONTACT TOMORROW: FROM NICHE MARKET TO GLOBAL OFFERING
TLSCONTACT – TELEPERFORMANCE EXTENDED OFFER IN FACE-TO-FACE CRM
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CAGR 11-16> 60%
y.o.y growth
TLScontact sales (€m)
GROWTH TRACK RECORD
TLSCONTACT – TELEPERFORMANCE EXTENDED OFFER IN FACE-TO-FACE CRM
-
50
100
150
2011 2012 2013 2014 2015 2016e
> 15%47% 162% 65% 54% 53%
2.1 TLScontact
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2.2 LanguageLine Solutions – Scott Klein (LanguageLine Solutions CEO)
2.3 Omnichannel Solutions
2.4 Analytics Solutions
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PROVIDING A COMPREHENSIVE SET OF SOLUTIONS ACROSS ALL CHANNELS AND SECTORS
2015A revenue:$21mm
Onsite interpretation (“OSI"), is required for high interaction settings, such as those involving multiple participants, sensitive communications, complex dialogue exchange and / or young children
2015A revenue:$332mm
Over-the-phone interpretation (“OPI”) provides on-demand, quick access to highly qualified interpreters 24/7/365 in 240+ languages
2015A revenue:$10mm
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
2015A revenue:$18mm
Document translation and software / systems localization utilizes experienced proven linguists, open and standards-based technologies and processes
OPI86%
VRI3%
OSI5%
T&L5%
Other 2%
% of 2015A total revenue
… designed to meet the wide-ranging needs of a highly diverse set of clients
Health Medical39%
Government16%
Financial12%
Non-health Insurance
9%
Health Insurance
7%
Telco4%
Services2%
Utilities1%
Pharma1%
All other8%
2015A revenue:$7mm
LLS also provides solutions that ensure the qualifications of in-house interpretation personnel, along with other ancillary equipment, products and fees
% of 2015A OPI
revenue
LANGUAGELINE SOLUTIONS
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WELL POSITIONED IN THE ATTRACTIVE LANGUAGE SOLUTIONS MARKET
Language Services market breakdown($ in billions)
US OPI end market composition($ in millions)
US OPI market outlook($ in millions)
Competitive landscape
Healthcare~$260
Fin. Services & Insurance~$125
Health Insurance~$50
Other~$150
Government~$100Total ~$700
OPI focused Translation focused
New geographiesand adjacentmarkets offer
additional growthavenues
Translation / Localization OSI OP VRI Other
~$35
~$1.4
United States Rest of World
Dem
an
d d
rive
rs
New technologies and modalities allow for widerapplication of language solutions
Organizations are focused on core capabilities, leading to theoutsourcing of language access activities
Enhanced regulatory requirements within key verticals continue to spur increaseddemand from both existing and new clients
Over 25 million LEP individuals in the United States, growing above general population trends
Source: Common Sense Advisory, STEER Partners market study report
Addressablemarket
CAGRs:’12-15: ~12%’15-18E: ~9%
~$500~$700 ~$900
2012 2015 2018E
LANGUAGELINE SOLUTIONS
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PROVEN, REPEATABLE, IMPLEMENTATION PROCESS TO DRIVE ROBUST GROWTH
CLIENT
Assess existing language services program and set objectives
Identify onsite needs by location and determine any additional needs
For VRI services, establish and test site-to-site VPN bridge
Conduct a walkthrough
Note available equipment and identify gaps in equipment and language training support materials
Draft a plan with specific recommendations
Include timetable for installation of equipment and staff training both on use and language access awareness
Define call routing requirements and schedule
Arrive on site within 3 weeks of receiving approval of the implementation plan
The implementation team goes onsite for 2–3 days at each facility to deploy equipment
Work with the facility champion to coordinate all training needs for language access
One week after the implementation, submit post-implementation report containing detailed information about the results for each location
Serves as proof of the steps taken by the client to comply with regulatory requirements
5Post-implementation report
3
Implementation and training
Draft customized implementation plan
4
2Language Access
needs assessment
1Meeting with
client staff
LANGUAGELINE SOLUTIONS
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MAINTAINING A SUCCESSFUL TRACK RECORD OF CLIENT RETENTION
Average annual retention rate: 97%Top client: 2.9%
Top 10 clients: 16.5%
1. Retention defined based on minutes retention for clients who maintain minutes volume greater than zero
LANGUAGELINE SOLUTIONS
Significant amount of client diversification…
Total revenue by client
…with undeniable, industry-leading retention rates¹
96% 96% 98% 96% 96% 97%
2010 2011 2012 2013 2014 2015
27%
10%
11%
52%
Top 25 Next 25
Next 50 Remainder
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MISSION-CRITICAL LANGUAGE ACCESS FOR BOTH EVERYDAY AND ONCE-IN-A-LIFETIME SITUATIONS
Challenging situations for native speakers become mission-criticalfor LEPs and the companies that serve them
Emergency room triage
End of life communication
Mental health assessments
RN communication
Consultations
Doctors office visits
Administration ofmedicines
Discharge instructions
Health insurance open enrollment
Immigrant health surveys
Medical tests
Pharmacy services
Rehabilitation
911/ public safety (police,fire, ambulance)
Asylum interviews
Benefit eligibility hearings
Courthouse services
Disaster relief & recovery
Hotlines (domestic violence, crisis, poison)
Homeland Security
Fair hearings
Job services &unemployment insurance
School-parent communication
Public health services
Senior services
Housing services
401K & retirementaccounts
Auto loan applications Credit counseling Exercising stock options Mortgage origination &
servicing Foreclosure and
bankruptcy Reporting lost / stolen
cards Security Trust services Checking & savings
accounts Collections Small business lending Fraud protection Online & mobile banking
Explanation of coverage &benefits
Recorded statements
Roadside assistance
Annuities
Disability claims
Workers compensationclaims
Filing claims
Opening accounts
Underwriting
Claims investigation
Sales support
Health Medical Government Financial Insurance
LANGUAGELINE SOLUTIONS
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DELIVERING MISSION-CRITICAL SOLUTIONS: CASE STUDY FOR A GOVERNMENT CLIENT
Relationship overview Putting things into perspective
• Since the 1990s, whenever disasters have occurred, this client has relied on LLS to bridge language barriers with disaster victims, strengthening the agency’s ability to respond
• LanguageLine linguists not only ensure clear communication, but also bring some peace of mind to disaster victims who are often scared, frustrated, confused and traumatized
• LanguageLine has engineered its network infrastructure and interpreter resources to mobilize linguists to meet the client’s language needs
• Calls generally spike immediately after the disaster has occurred and relief efforts are underway
– Historic events, like the string of 9 tropical storms and 10 hurricanes (including Hurricane Sandy) that swept across the Eastern US in 2012, can cause call volumes to soar from fewer than 100 monthly calls to over 35,000 in a short time
– Over the course of the partnership, LLS has supported this clients requests for interpretation in 97 languages
Daily call volume from 10/1/2015 – 6/10/2016
Significant increase in call volume starting 11/30/2015
due to severe storms and tornados in Texas
Large uptick in calls on 4/19/2016 related to various natural disasters including: severe winter storms in Delaware & Pennsylvania and tornados
/ flooding in Texas and Mississippi
Greater than 5x the average daily call volume over the prior 240 days
Nu
mb
er o
f ca
lls r
ece
ived
LANGUAGELINE SOLUTIONS
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COMPLETED THE LARGEST TECHNOLOGY INVESTMENT IN THE INDUSTRY: OLYMPUS
• In 2012, LLS laid the groundwork for a long-term strategy of continued technological innovation through the launch of Olympus
– Scalable, unified cloud platform that modernizes LLS' front- and back-office operations
– Enables LLS to prioritize calls for select premium accounts
– Set up to provide a single, shared interpreter delivery platform
• Manages interpreters as a single pool, providing optimal capacity planning and enhanced call flow automation
– Increases automation and improves call quality for both clients and interpreters
• Increased interpreter access to information and support
• Improved call connectivity (reduced missed and failed calls)
• Allows for more optimized workforce management, improves data collection and real-time monitoring capabilities
$20+ millioninvested in developing and
implementing Olympus
since July 2012
As of June 2015,
All Callsnow run on Olympus
platform
Pre-Olympus Olympus
All calls run on land-line copper wire systems Disruptive digital conversion toVoice over Internet Protocol (“VoIP”)
Separate dedicated interpreters for OPI, VRI, OSI, etc.Digitally-enabled interpreters
able to operate across modalities
Limited tracking of data andkey performance indicators
Rich data available for real-time reporting, monitoring andanalytics for improved predictive performance
Limited switchboard-based voice technologyCloud-enabled infrastructure for improved
security, scale and reliability
Not optimized to connect thelowest-cost interpreter with a given level of skill
Improved model for enhanced control,driving lower cost and best-in-class quality
LANGUAGELINE SOLUTIONS
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FOCUS ON TRACK RECORD
$m 2012 2013 2014 2015
Revenue 300 320 348 388
Growth + 6.6% + 8.7% + 11.5%
Adj. EBITDA 119 120 124 140
Growth + 0.8% + 3.3% + 12.9%
% revenue 39.7% 37.6% 35.7% 36.1%
Adj. Free Cash Flow1 106 117 111 124
% of Adj. EBITDA 88.9% 96.8% 89.4% 88.4%
One-time Olympus-related capex - - 9 6
Free Cash Flow² 106 117 102 118
% of Adj. EBITDA 88.9% 96.8% 82.2% 84.4%
1. Adj. free cash flow excludes $9m and $6m of one-time Olympus-related capex in 2014 and 2015, respectively.2. Defined as Adj. EBITDA less total capex and increases in net working capital
LANGUAGELINE SOLUTIONS
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DELIVERING SYNERGIES WITH TELEPERFORMANCE ON THE REVENUE SIDE
TP’s US sales forces and LLS’s client base / Cross sells
TP’s worldwide network to duplicate the business model in Europe and China
TP’s visa processing business (TLScontact) which offers captive fit to LLS (c. 5 million clients)
TP’s offshore experience to LLS
LLS’ work@home experience to TP
Cross sell offering of online interpretation services for visa centers – prepaid card for TLS clients
Provide LLS access to global pool of Over The Phone Interpreters in cost-efficient TP centers around the world – Arabic Interpreter pilot a success in Cairo
ADDITIONAL UPSIDE FOR VALUE CREATION BY…
ILLUSTRATIONS
… Expanding
… Leveraging
LANGUAGELINE SOLUTIONS
2.1 TLScontact
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2.2 LanguageLine Solutions
2.3 Omnichannel Solutions – João Cardoso (Head of Innovation)
2.4 Analytics Solutions
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FAVORITE CHANNEL
Preferred channel to interact with customer service – single answer
All countries2014: 109,674 respondents2015: 110,554 respondents2016: 132,868 respondents
59%
21%
10% 3% 2% 2% 2% 1%
59%
25%
6%1% 2%
1%1% 2% 1%
60%
23%
6%2% 2% 2% 1%
1%1% 1%
Voice Email /Web form
Chat w/live agent
Mobile app Click to Call Automatedchat
Socialmedia
InstantMessaging
Face toface
SMS
2014 2015 2016
2014 and 2015 - 8 countries: Brazil, China, Colombia, France, Germany, Mexico, the UK and the US2016 – 11 countries: Brazil, China, Colombia, France, Germany, Italy, Mexico, Russia, the UAE, the UK and the US
2016:• 60% prefer Voice
(Phone with live agent + IVR).
• 56% prefer Phone with live agent.
• 4% prefer IVR.
2016:58% prefer talking with a human on the phone (Phone with live agent +
Click to Call).
2016:8% prefer Chat (Live
Chat + Automated).
CUSTOMERS PREFERRED CHANNELSPREFERRED CHANNEL TO INTERACT WITH CUSTOMER SERVICE – SINGLE ANSWER
39
Preferred channel to interact with customer service – single answer
2016 All countries132,868 respondents
FAVORITE CHANNEL
68%
19%
5%1%
2% 1% 0% 1% 2% 1%
64%
21%
5%1%
2% 1%1% 1% 2% 1%
60%
23%
6% 2%2% 2% 1% 1% 1% 1%
56%
23%
7%
3% 3% 2%2% 2% 1% 1%
47%
33%
6%1% 2% 2% 2% 2% 1% 1%
Voice Email / Webform
Chat w/ liveagent
Mobile app Click to Call Automatedchat
Socialmedia
InstantMessaging
Face to face SMS
Traditionalists BabyBoomers Generation X Millennials Generation Z
2014 and 2015 - 8 countries: Brazil, China, Colombia, France, Germany, Mexico, the UK and the US2016 – 11 countries: Brazil, China, Colombia, France, Germany, Italy, Mexico, Russia, the UAE, the UK and the US
CUSTOMERS PREFERRED CHANNELSPREFERRED CHANNEL TO INTERACT WITH CUSTOMER SERVICE – SINGLE ANSWER
Traditionalists (1925 – 1945) - Baby Boomers (1946 – 1964), Generation X (1965 – 1980), Millennials (1981 – 1999), Generation Z (2000)
40
20%
17%16% 16% 15%
12%
7%5%
18%
15%
15%
17%16%
15%
5% 6%
19%18%
17% 17%
17% 16%13%
11%
8%6% 5%
China USA UnitedArab
Emirates
Colombia UK Mexico Brazil Italy Russia France Germany
2014 2015 2016
2014 and 2015 - 8 countries: Brazil, China, Colombia, France, Germany, Mexico, the UK and the US2016 – 11 countries: Brazil, China, Colombia, France, Germany, Italy, Mexico, Russia, the UAE, the UK and the US
% of customers that contacted their brand’s customer service using Chat with Live Agent – among customers that contacted their brands customer service in the last 12 months
CHAT USAGE BY COUNTRY
*Games Publishers was added in 2015
All countries2014: 60,523 respondents2015: 65,939 respondents2016: 80,834 respondents
CHAT W/ LIVE AGENT – USAGE BY COUNTRYCHANNEL USAGE VARIES SIGNIFICANTLY FROM MARKET TO MARKET
% of customers that contacted their brand’s customer service using Chat with Live Agent –among customers that contacted their brands customer service in the last 12 months
Multichanneltechnology
High profiled and specialized peoplefor each channel
Process adjusted to deliver seamless
experience
Metrics and KPIsfor a multichannel
environment
Strategy aligned with customer preferences
People, Processes, Technology and Analytics come together to deliver a sound
Omnichannel Customer Experience:
TELEPERFORMANCE OMNICHANNEL APPROACHA COMPREHENSIVE SOLUTION FOR A UNIQUE OMNICHANNEL EXPERIENCE
41
Delivering
AnalyzingClient
Processes
MarketAn
alyz
ing
Technology
Del
iver
ing
TELEPERFORMANCE IP FOR OMNICHANNELINNOVATION AT THE CORE OF TELEPERFORMANCE OMNICHANNEL APPROACH
People
43
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
TELEPERFORMANCE CLIENTPROPRIETARY TECHNOLOGY SOLUTION ENABLING AN OMNICHANNEL EXPERIENCE
CustomerDatabase Integration
Case Classify
BusinessProcess
Workflow
Multi-Channel
KnowledgeBase
More than 150 Teleperformance clients decided to adopt Teleperformance Client, embracing an even stronger strategic commitment with Teleperformance
CLICK-TO-CHATE-MAILVOICE MOBILE APP
SMS / IM
We successfully implemented Teleperformance Client in:
22,000+ licenses
20+ countries
10+ sectors
SOCIAL MEDIA CLICK-T-CALL
TP Client is now part of the IT ecosystem of each one of our clients, after being integrated
with their business, operational, infrastructure and reporting
systems.
200+ programs
TELEPERFORMANCE CLIENTMORE THAN 22,000 USERS IN 200+ PROGRAMS
TELECOMFINANCETRAVEL HEALTHCAREUTILITIES LOGISTICS CONSUMER
GOODS
ENTERTAINMENT
Our clients have automated the workflow of their front-end initiated processes with TP Client BPM.TP Client has been integrated with the web sites, Facebook pages and Twitter pages of our clients and became an integral part of their digital transformation strategy.
45
TP Observer is Teleperformance’s real-time agent observation and floor management application.• Interactive contact center blueprint, allowing to
create customized maps based and displaying key information and alerts by station
• A single interface for floor management, call emotion analysis, point-in-time analysis, and historical reporting
TP Observer provides real-time capacity, quality and security management• Users can listen to live calls while viewing
corresponding desktop video streams, watch contact floor activity from controllable ceiling-mounted cameras, and analyze real-time call activity, capacity, and call emotion states.
TP OBSERVERREAL TIME MANAGEMENT FOR THE OMNICHANNEL TEAM
TELEPERFORMANCE CLIENT IS AN OPEN OMNICHANNEL SOLUTION WITH THE COGNITIVE CAPABILITIES OF HANDLING CHATS AUTONOMOUSLY AND REALIZING WHEN TO JOIN A LIVE AGENT
COGNITIVE OMNICHANNEL SOLUTION
46
THE NEXT OMNICHANNEL PLATFORM GENERATION
47
ARTIFICIAL INTELLIGENCEAI TECHNOLOGIES
Deep Learning (machine mearning)
Deep Learning (artificial neural networks) became now extremely successful in certain domains of application such as image recognition, self-driving cars and speech recognition.
• More than 50 years of history and variable levels of enthusiasm along the way
• Large amount of data in the Internet and availability of annotated data, allowed for previously unsuspected progress in the usage of this technology
Robotic Process Automation (RPA)
Automates routine tasks that an operator does in a front-end application
• Originates from the 80’s HLLAPI (screen scrapping from 3270 emulators)
• Boasts now workflow capture tools, screen field modeling, web service encapsulation of work processes and advanced testing tools
• Shortcut to integrating legacy systems, avoiding expensive back-end integration projects
Natural Language Processing (NLP)
NLP evolved from rule based models to statistical based models in the past 10 years, a scientific revolution within the field
• In 2016 several technology leaders have made decisive moves in the usage of the technology, such as Microsoft, Apple and Google
• Facebook grew additional attention to NLP, with the announcement that Messenger will support bots and claims that natural language dialog is going to be the next user interface
1
2
3
ARTIFICIAL INTELLIGENCENATURAL LANGUAGE PROCESSING TECHNOLOGIES
Index and Searching
1
Document Analysis and Summary
2
Speech Processing
3
Question Answering
4
Natural Language Interaction
5
48
Robotic Process Automation
6
49
Query Type Description and Example Bot Effectiveness
Factoid The customer types a generic question about a product or service. (Ex: What is the interest rate of the checking account?)
High. Bot can point to a proper FAQ. QA technology works best here.
Y
Relationship Fact
Question about some fact that is specific to the customer. (Ex: What is the balance of my credit card?)
High. Bot can support the navigation in the site or app. We can consider theses questions, navigation questions. Y
Claim The customer wants to file a claim. (Ex: I want to submit a claim because you charged me for an unsolicited card)
Medium. Bot needs to collect the text of the claim and provide the customer with a claim ID. Y
Transaction Request
Customer requires a transaction. (Ex: I want to cancel my debit card).
Medium to low. Requires the bot to enter into a scripted dialog, which is less effective than a form.In some situations companies prefer that commercial staff run these interactions.
Y
Diagnose There is something the customer does not understand. (Ex: I canceled the direct debit but still I was charged. How come?)
Low to none. Requires to understand the customer issue and to diagnose it. Sometimes it is also difficult to realize why the customer does not understand.
N
Already digital?
NATURAL LANGUAGE INTERACTIONUSING CHATBOTS EFFECTIVELY
50
NATURAL LANGUAGE INTERACTIONUSE CASES FOR CHATBOTS
Using bots to overcome shortcomings
• Bots are mostly successful with:
1) FAQs – Supporting customers in accessing the answer to a frequently asked question in a faster and easier way
2) Navigation – Helping customers reach the proper page in a web site of required functionality in an app
• Because NLI bots use a rule based pragmatic approach, most of the bot responsiveness has to be programmed from scratch (or at best using templates)
• The bot effectiveness depends of the effort and success put into the development. In any case, some type of queries will be very difficult to address
Using bots to re-recreate the User Experience
• A Meta User Interface: Instead of looking for in the user interface, the user types what he wants and he is directed there
• A Colloquial Interface: The chat box is always present and always available
1
2
In any case, the introduction of bots should be the result of a design exercise of the
overall user experience
51
TP CLIENTCOGNITIVE OMNICHANNEL
TP Client new generation
The cognitive omnichannelapproach is the result of adding AI
capabilities to TP Client
AI COMPONENT
SUPPORT OF STRUCTURED DIALOGS
ALLOW SENDING/RECEIVING TEXT, IMAGES AND VIDEO
OMNICHANNEL INTEGRATION
HANDLE CUSTOMER TIMEOUTS
AGENT BOT INTEGRATION
TRANSFER TO REAL AGENTS
SUPERVISOR BOT
INTEGRATION WITH EXTERNAL CHATS
Plugin architecture to integrate with Chatbots
(visual IVR)
We can program Teleperformance Client to transfer to a real agent if the bot does not solve
customer inquiries
The agent can use the Chatbot to clarify questions, reducing the average handle time
Facebook Messenger, WeChat and others using Nexmo API
to end conversations
All previous interactions done by bot are logged and available for live agents
2.1 TLScontact
52
2.2 LanguageLine Solutions
2.3 Omnichannel Solutions
2.4 Analytics Solutions – Paolo Righetti (GNResearch CEO)
53
ANALYTICS SOLUTIONSENHANCING CUSTOMER EXPERIENCE THROUGH RESEARCH AND ANALYTICS EXPERTISE
Combining Global Leadership in Operational Excellence with the expertise of Customer Research & Big Data Analytics to…
Generate Measurable Value through a better Customer Experience
Worldwide Leader in Outsourced
OmnichannelCustomer Experience
Design and Deliver an outstanding Customer
Experience
54
ANALYTICS SOLUTIONSANALYTICS STRATEGY: CLOSE THE GAP AND EXPAND WORLDWIDE
78%Strategic insights to TP
client’s operations
100%ATACDay-to-day KPI Performance
100%Top Call Driver
Op
eration
al An
alytics
Strategic Insightsto TP Clients
ATACDaily KPI Performance
Top Contact Driver
Enterprise Feedback
Management
Predictive
CX Lab
Valu
e-Based
An
alytics
55
ANALYTICS SOLUTIONSINTOUCH: PREDICTING THE EFFECT OF CHANGING FACTORS ON CUSTOMER EXPERIENCE
Enterprise Feedback Management (EFM) is a system of processes and
software that enables organizations to centrally manage deployment of surveys while dispersing authoring and analysis throughout an organization
OperationalInput
CustomerBehavior ∆ Profit
CustomerExperience
56
ANALYTICS SOLUTIONSINTOUCH: PLATFORM OVERVIEW
57
ANALYTICS SOLUTIONSINTOUCH: ILLUSTRATIVE CASE STUDY
Italian division of a French Global BankCUSTOMER AND EMPLOYEE ADVOCACY PROGRAM
3.000+ user
FIRST ROI EFM implementation
5 TOUCHPOINTS – 10 JOURNEYS – 9 Customer SEGMENTS
REAL TIME feedback
Teleperformance Analytics has designed and is deploying a 3-year project to set up the first full ROI-based proprietary Enterprise Feedback Management system of a French global bank
58
ANALYTICS SOLUTIONSONTARGET: CALCULATING THE PROPENSITY BY CUSTOMER TO A TARGET BEHAVIOR
Behavioral Data
1110 00 01
11
10
0001 11 1000
01111000
01
11
00
Customer Data Base
PredictorsCustomer Mktg Info, Customer interactions,consumptions, other behavior,billing, payment…
1 - DATA (ETL)All potential predictors are loaded in a
modeling datamart and prepared for the learning phase.
2 - BIG DATA Model
Model in created by establishing probabilistic impacts and derive propensity calculation
rules.
3 - Design | Pilot | Deploy
Action in designed out of model learning, then tested in a Pilot Phase and deployed.
Target behavior
An Individual Score that predicts the propensity by customer to a defined
behavior
A new enhanced process, with an embedded scoring, that assures an higher ROI
81%
83%
86%
89%
91%
93%
59
ANALYTICS SOLUTIONSONTARGET: CUSTOMER RETENTIONC CASE STUDY
European-based O&G majorCLIENTS RETENTION PROGRAM
TELEPERFORMANCE 50% GM
20% of CHURN REDUCTION
100 K retained customers
RETENTION cost = 50% ACQUISTION cost
Teleperformance Analytics has designed and set up an end-to-end Customer Retention program for a major European O&G, encompassing Smart data layer organization, Big Data Modeling and ROI-based Action design and deployment
60
ANALYTICS SOLUTIONSONTARGET: HR RECRUITMENT CASE STUDY
TeleperformanceAGENT SELECTION SOLUTION
3-YEARS DEPLOYMENT IN PROGRESS – 130k HEADCOUNT ALREADY SETUP
25% of INITIAL ATTRITION REDUCTION
IMPROVEMENT IN ABSENTEEISM, LEARNING CURVE LENGTH AND KPIS
350K CANDIDATES ALREADY SCREENED
Teleperformance Analytics has invented and is deploying a proprietary solution to enhance the internal candidate selection process with an Analytics based “Job Fit” index to drive individual recruitment priorities
61
ANALYTICS SOLUTIONSKEY TAKEAWAYS
Teleperformance Analytics is an integrated approach that aims at generating:
• Differentiation (increase in TO generation)
• Client engagement (increase in Client Lifetime)
• Employee engagement (increase Agent lifetime and performance)
• Measurable economic value (Higher Margins/Cost Efficiencies)
To deliver these results, beyond scaling the current capabilities, resources are invested on:
• R&D Team
• Growing Algorithmic capabilities: text, voice, video Analytics
• Intellectual Properties development
3 Opportunities in China and India
David RizzoPresident Teleperformance Asia Pacific
FOCUS ON CHINATELEPERFORMANCE’S RAPID PROGRESS IN THE CHINESE MARKET…
63
In 2017, we estimate our ranking among
global players to improve from 2 to 1
and our market share from 5.5% to 7%
Ranking 2 Market share (excluding TLS revenues)5.5%
TP CHINA
+ 80% vs. market
GDP
+6.5%
TP CHINA
+60%
TOTALMARKET
+16%
INFLATION
+1.8%
HOW TELEPERFORMANCE IS GROWING VS COUNTRY GDP AND INFLATION AND VS THE DOMESTIC MARKET IN 2016?
HOW DOES AVERAGE
REVENUE PER SEAT COMPARE
TO THE MARKET IN 2016?
Sources & assumptions:
• GDP growth & inflation per IMF WEO 04/2016.
• Domestic market growth rate & average revenue/seat per Assessment of China Contact CenterMarket - The Everest Group, Apr 2016.
• TP China growth rate per Q3 RFT 2016 and 2015 Actuals TO/FROM Analysis.
Sources & assumptions:
• TP revenue per seat per corporate finance. It excludes TLS operations
FOCUS ON CHINA… WHICH IS EXPECTED TO DELIVER DOUBLE-DIGIT GROWTH BY 2020
64
* Based on Frost & Sullivan figures (August – September 2016)
1,160 1,322
1,526 1,770
2,069
2,407
14% 14%
15%
16% 17%
16%
2015 2016e 2017e 2018e 2019e 2020e
Market ($m) Total growth (%)
CHINA: Contact Center Outsourcing Market* (2015 – 2020)$m
CAGR 15-20: 16%
118 128
140 155
173 193
7%
8%
10%
11%
12% 12%
2015 2016e 2017e 2018e 2019e 2020e
Market (# of seats) Total growth (%)
CHINA: Contact Center Outsourcing Market* (2015 – 2020)Number of seats
CAGR 15-20: 10%
FOCUS ON CHINAWE HAVE ESTABLISHED A VERY STRONG PLATFORM IN CHINA…
65
KunmingNanning Shenzhen
GuangdongFuzhou
HangzhouShanghai
NanjingChengduChongqing
Xi'an
Beijing
Jinan
Shenyang
Changsha
Teleperformance Site
TLS and Partners Site
Teleperformance in China
Teleperformance is the most established global customer management provider in the China Market – serving more multinationals than any other provider
Established in
Sites Employees
Workstations
Services in more than
Languages and dialects
200720 5,500+
5,000+ 13
TP Presence in China Evolution of Teleperformance sales in China ($m)
y.o.y growth
17
31
52
c. 80
2013 2014 2015 2016e
85% > 50%66%
FOCUS ON CHINA… WITH AN ATTRACTIVE POSITIONING FOR GLOBAL ACCOUNTS
66
KunmingNanning Shenzhen
GuangdongFuzhou
HangzhouShanghai
NanjingChengdu
Chongqing
Xi'an
Beijing
Jinan
Shenyang
Changsha
Preferred Supplier forMultinationals in
China
World reach forGlobalizing Chinese
Brands
IMAGEBest Employer of TheYear; Reputation and
Capabilities
Best in Class SecurityStandards
Diverse ChinaFootprint
TP Suite of Solutions;Omni Channel, Observer, CX
Lab, TPClient
Teleperformance Site
TLS and Partners Site
FOCUS ON CHINAWE HAVE A CLEAR GROWTH ROADMAP IN CHINA…
67
China
4 Boxes
Other APAC Target
Markets
Strategic Verticals
that represent
growth sectors
Business &
Competition
Intelligence
People Investment
China & APAC
Geo Coordination
(US/Europe/LATAM)
New Centers aligned
with Strategy
Sales Support
Contents
Demand Generation
Campaigns +
Marketing Events
FOCUS ON CHINA… NOTABLY RELYING ON OUR « FOUR BOXES » STRATEGY INVESTMENTS TO ACCELERATE GROWTH
68
China MNC’sIn the Global Market
USA MNC'sIn or Entering China
European MNC'sIn or Entering China
Global Asia TigersAlso in China
FOCUS ON CHINANEW SITE IN KUNMING, LAUNCHED IN JUNE 2016
69
Rationale
A multilingual hub
Competitive landscape
With the launch of Kunming together with our existing Beijing, Nanning, Xian facilities, Teleperformance China can now offer a true multilingual hub solutions to cover Greater China, Japan, Korea and South East Asia regions. A Lower costs Tier 2 city with multiple languages capability
Kunming is located at the South West area of China, bordered with South eastern Asian Countries such as Vietnam, Burma, Laos etc. Allows us to deliver multi-languages support for our clients
No local competition – huge greenfield
Kunming
FOCUS ON CHINANEW SITE IN GUANGZHOU, LAUNCHING IN APRIL 2017
70
Rationale
Cantonese Opportunities
Competitive landscape
To provide Teleperformance China with the complete language solution in market by developing a smart Cantonese market operation, capability of greater complex services, support of the Hong Kong Market plus the typical Mandarin Language capability
The current geographic solution has prevented Teleperformance from fully capitalizing on the market opportunities for Cantonese Language, both from Hong Kong and the Guangdong region. This new investment completes the offering
Teleperformance outperforming local competition thanks to best-in-class practices, processes, tools and security
Foshan
FOCUS ON CHINA2020 VISION
71
Evolution of Teleperformancelocal headcount
Evolution of Teleperformance local market share* (%)
* Based on Frost & Sullivan figures (August – September 2016)
941
1,757
2,988
4,394
5,931
7,711
9,638
2014 2015 2016e 2017e 2018e 2019e 2020e
3%
4%
6%
7%
8%
9%
10%
2014 2015 2016e 2017e 2018e 2019e 2020e
States29
Scheduled Languages
22Union
Territories
7Dialects
12,000Central
Government
1
1/6th of the world population
Per Capita GDP (PPP) to grow by 35% between 2015-2020
3rd largest provider of higher education, 30 million students enrolled per annum
Largest provider of global talent, 1 of every 4th graduate in the world is a product of Indian system
FOCUS ON INDIAWE HAVE A CLEAR BUSINESS OPPORTUNITY IN THE INDIAN MARKET…
72
FOCUS ON INDIA… WHICH IS EXPECTED TO DELIVER SIGNIFICANT GROWTH BY 2020
73
CAGR 15a-20e6.4%
y.o.y growth
Evolution of Indian Contact Center Outsourcing Market* ($bn)
* Based on Frost & Sullivan figures (August – September 2016)
7.9
8.5
9.1
9.7
10.4
11.0
11.6
2014 2015 2016e 2017e 2018e 2019e 2020e
7.6% 5.8% 6.0% 6.6% 6.8% 7.0%
Gurgaon
Jaipur
Indore
FOCUS ON INDIAWE HAVE ESTABLISHED A VERY STRONG PLATFORM IN INDIA…
74
Established in
Sites Employees
Workstations
Services in more than
Languages and dialects
20016 10,800+
5,800+ 12
TP Presence in India Evolution of Teleperformance sales in India ($m)
y.o.y growth
31 31
36
c. 60
2013 2014 2015 2016e
1% > 60%17%
75
Great Place to Work Annual Conference
Leveraging GPTW Institute and Aon Global platforms to connect with the best in the industry
INDUSTRY’S BEST
Engaging with the
GOVERNMENTto effect policy changes and build client confidence in location strategy
we bring
passion to work, everyday
sales ammunition for
the business development team
FOCUS ON INDIA…PUTTING OUR PEOPLE FIRST…
FOCUS ON INDIA… WITH A RECOGNIZED THOUGHT LEADERSHIP IN THE INDUSTRY
76
Ranked among
LEADERSin Brand Positioning
Speaker & participation opportunity at
INDUSTRY EVENTS 15MEDIA ENGAGEMENTSpresenting our Thought Leadership
10Engagements with the
GOVERNMENT of INDIA towards policy promotions
08
AWARDS for being the BEST in the INDUSTRY
07
8.79CLIENT CONFIDENCE scoreKSAT
14K NEW HIRES 40%+ from referrals
FOCUS ON INDIAWE HAVE A CLEAR GROWTH ROADMAP IN INDIA
77
GEOGRAPHY
Non-Metro SolutionsTeleperformance India as a service location for international business from US & UK+High value domestic business
Expansion into new non-metro locations
SERVICE FOCUS
Continued focus on voice+Build capability in Chat, Email and Social media CX+Shared Services: HR, WFM, QA, IT & Payroll in India to reduce SG&A
INDUSTRY FOCUS
E-CommerceBPO, Logistics and customer-supplier troubleshooting support to app based companies +Strong Focus on Duplexing
TECHNOLOGY
IOT (complex integrated tech solutions)B2B digital salesDiversified channelsAdditional high value services
FOCUS ON INDIA2020 VISION
78
Evolution of Teleperformancelocal headcount
Evolution of Teleperformance local market share* (%)
* Based on Frost & Sullivan figures (August – September 2016)
4,381 6,125
10,800
14,369
18,011
22,676
28,541
2014 2015 2016e 2017e 2018e 2019e 2020e
0.4% 0.4%
0.7%
0.9%
1.0%
1.2%
1.4%
2014 2015 2016e 2017e 2018e 2019e 2020e
Global Clients Management
Jeff BalagnaChief Executive Officer of EWAP
4
80
ORGANIZATIONSTRUCTURE
INSIGHTS AND INNOVATION
REPORT & REVIEW
GLOBAL STANDARDS FEEDBACK
• One-to-one alignment with Clients’ local and global teams
• Single point of contact at Teleperformance for client: SAM, SBL, Ops
• Executive sponsor for each client
• Proprietary CX Labs insights
• Leader Insights Summit and Forums
• World Business Forum
• Technology and analytics
• Strategic Account Managers (SAM)
• KSAT survey
• Stack rankings (KPI)
• Share of wallet
• Financials
• Growth of new LOB’s, geos, services
• Innovation & value add delivered
• TOPS
• BEST
• CCMS
• Tiger Teams
• Security Practices including GESP
• Develop Account Plans per client requirements and priorities
• Annual KSAT Survey – scores and verbatim
• Other surveys during the year also
• QBRs and ongoing health checks
SETTING UP A CLIENT-CENTRIC CULTUREA KEEN FOCUS ON OUR CLIENTS…
Client
Executive Engagement:
• Executive engages with clients business/strategy/wider industry
• Understands position and perception in clients business
• Ensures growth proposals are alignedwith the client’s business/strategy
• Understand the key drivers for the client’s executives
Operations Excellence:
• Becomes an integral part of clients operations strategy
• Delivers consistent operational excellence and meeting KPI/SLA
• Ensures contribution is measurable and client is aware of results
• Analyses and innovates in the operation
Commercial Alignment:
• Best commercial approach
• Understands the client’s commercial requirements/aims
• Alignment with the client’s future commercial/investment strategy
Business transformation:
• Align and participate in clients strategy for improving existing operations/business and future initiatives
• Deliver true and proactive value added benefits
• Ensure contribution is measurable and deliversgrowth.
SETTING UP A CLIENT-CENTRIC CULTURE…WHO REMAIN AT THE CORE OF OUR STRATEGIC RELATIONSHIP MODEL
81
82
Quantitative Qualitative
Quantitative and qualitative factors reviewed semi annually
Yes NoSupported by SAM or SBL/Ops partnership
Support by Local SBL/Ops
Size and Growth• Top 50 worldwide client• Growth potential in excess of $1M
annually through farming
Wallet Share• Total wallet share in excess of 15%• Verified trend of material growth or
decline in wallet share
Complexity• Multi geo operations• Multiple LOBs w/ unique operation• Complex client organization
Strategic• Hyper growth new client• Vertical market focus• Low wallet share - attractive client
SETTING UP A CLIENT-CENTRIC CULTUREWE DEFINE OUR ACCOUNT MANAGEMENT STRATEGY BASED ON MULTIPLE CRITERIA
LEVERAGE ON “NETWORK EFFECT” WITH GLOBAL ACCOUNTSWE HAVE BUILT CORE RELATIONSHIPS WITH A NUMBER OF GLOBAL ACCOUNTS
Tota
l to
p 1
0 G
lob
al A
cco
un
ts: 2
1%
of
Gro
up
sal
es
Industry leader in technology
Industry leader in technology
Industry leader in telecommunications
Industry leader in telecommunications
Government client
Industry leader in travel
Government client
Industry leader in logistics
Industry leader in financial services
Industry leader in energy
83
6%
3%
3%
2%
2%
2%
1%
1%
1%
1%
Global Account #1
Global Account #2
Global Account #3
Global Account #4
Global Account #5
Global Account #6
Global Account #7
Global Account #8
Global Account #9
Global Account #10
Manage exponential growth resulting in large unpredictable volume spikes. To address this challenge, the client sought a global
omnichannel partner with the flexibility to scale and ramp quickly to meet additional massive capacity needs, offer local language
support with a multi-geography solution for business continuity planning to address seasonal peaks at a competitive price.
Teleperformance support landscape for this global account
LEVERAGE ON “NETWORK EFFECT” WITH GLOBAL ACCOUNTSCASE STUDY: SUPPORTING A GLOBAL NEW ECONOMY COMPANY
84
Countries where TP operates
Countries that TP serves
MAY ‘15
Gurgaon, India
Indore, India
Bogota, Colombia
NOV ‘15 MAY‘16 NOV‘16
Vilnius, Lithuania
Sao Paulo, Brazil Monterrey, MX
Yogyakarta, Indonesia
Natal, Brazil Medellin, Colombia
Volgograd, Russia Jakarta, Indonesia
Facilitating Client’s Global Expansion and Growth
85
Streamlined OperationsWith the client’s rapidly changing business environment, Teleperformance created an
organization support model that aligns with, and deeply understands, the client
to provide single point accountability.
Location OptimizationThe client’s preference for large hubs has
allowed for geographic expansion and optimization. Utilization and ROI is strong with most centers growing well over 1,000
agents at maturity.
Security Process and MethodsClient’s systems and processes are still in
maturation phase. Teleperformance’sadherence to strict physical, operational,
and digital security requirements have helped to prevent customer issues that
could damage credibility.
LEVERAGE ON “NETWORK EFFECT” WITH GLOBAL ACCOUNTSCASE STUDY: DEVELOPING A CUSTOM SOLUTION FOR THIS GLOBAL ACCOUNT
Across 3 channels Including voice (outbound & inbound), e-mail & back-office
Offering Customer Service, Sales and Document Management & Review
Teleperformance GESP to enhance their security processes
Leverage global footprint -Launching 11 sites in 7 countries
CASE STUDY: DELIVERING OUTSTANDING RESULTS FOR THIS GLOBAL ACCOUNT
86
Employee Retention SuccessThe rapid growth needs of the client necessitated creating unique hiring profiles for agents and managers. Leverage of Teleperformance standards such as TOPS and BEST have attributed to high retention.
Outstanding Client SatisfactionThe client has been very pleased with the results and has given Teleperformance client satisfaction scores of above 9 out of 10.
Partnership and GrowthThis client’s global growth demands and a rapidly changing environment require unique flexibility, accountability and alignment. These have contributed to an unmatched strategic partnership with the client.
“Honestly, we made the decision to expand into Medellin [Colombia] well before we visited the site. We simply visited to verify what we already knew –Teleperformance is the best vendor in our network and deserves our business.” -Global BPO Manager, Americas
Quality Assurance rate improved
91%
Back-office Accuracy rate improved
98.79%
93%
Customer Satisfactionrate improved (Voice)
Illustrative improvement in KPIs (India Operations)
LEVERAGE ON “NETWORK EFFECT” WITH GLOBAL ACCOUNTS
Organic growth in EWAP and LATAM exceeding 10% per quarter
New European site launching in Q1 allowing for larger share of European market
Growth in Russia – 5X to 10X current volume
Starting 2017 with RFPs in excess of 1,500 agents
Leverage Teleperformance CX Lab capabilities to right-size channel share and push for broader capabilities
Strategic partnership for social media launch
87
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
11000
January
2016
December
2016
564% Growth in 2016!
LEVERAGE ON “NETWORK EFFECT” WITH GLOBAL ACCOUNTSCASE STUDY: CONTINUED ALIGNMENT WITH THIS GLOBAL ACCOUNT TO MUTUAL GROWTH
2016 Agent Growth by Geo:
January 2016 December 2016EWAP 1,054 4,025LATAM 496 6,392EMEA 48 200
Outsource FTE Growth 2017 Growth Opportunities
Financial Performance
Olivier RigaudyGroup Chief Financial Officer
Paulo César Salles VasquesGroup Chief Executive Officer
MOVING ON THE RIGHT TRACKSIGNIFICANT GROWTH TRACK RECORD
89
From group sales of €2.1bn in 2011 up to around €4bn pro forma in 2016
Eighteenth quarter in a row of strong like-for-like growth, above or equal to 5%
Targeted acquisitions (BeCogent, Aegis, LLS)
2%
5%
13%
9%
12%
6%
8%
7%
9%
12%
13%
7%
10%
6%
7%7%
6%
8%
10 %
0%
2%
4%
6%
8%
10%
12%
14%
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Q315
Q415
Q116
Q216
Q316
2012-2016 quarterly sales growth (%)2011-2016PF sales (€m)
* Including full-year impact of LanguageLine Solutions acquisition
2,126 2,347 2,433
2,758
3,398
c. 4,000
2011 2012 2013 2014 2015 2016PF*
90
TELEPERFORMANCE AT A GLANCEMOVING ON THE RIGHT TRACKSIGNIFICANT PROFITABLE GROWTH TRACK RECORD
2011-2016PF* net result, group share (€m)
2011-2016PF* Recurring EBITA (€m)
* Including full-year impact of LanguageLine Solutions acquisition
181
214 226
267
351
8.5%
9.1% 9.3%
9.7%
10.3%
2011 2012 2013 2014 2015 2016PF*
EBITA % Margin
95
129 129 150
200 4.5%
5.5% 5.3%
5.4%
5.9%
2011 2012 2013 2014 2015 2016PF*
Net result % Margin
91
TELEPERFORMANCE AT A GLANCEMOVING ON THE RIGHT TRACKSIGNIFICANT PROFITABLE GROWTH AND CASH GENERATION TRACK RECORD
2011-2016PF* FCF¹ evolution (€m)
2011-2016PF* Leverage evolution
Year-end level
* Including full-year impact of LanguageLine Solutions acquisition
Notes:1. Excluding net interest paid2. Restated for a one-off charge of €50m relating to the termination of Aegis factoring program 3. Based on PF YE 2016 leverage communicated by Teleperformance following LanguageLine Solutions acquisition
3
2
96 102
71
98
219
2011 2012 2013 2014 2015 2016PF*
(0.1x)(0.3x) (0.3x)
1.1x
0.7x
c. 2.5x
2011 2012 2013 2014 2015 2016PF*
92
TELEPERFORMANCE AT A GLANCEMOVING ON THE RIGHT TRACKATTRACTIVE SHAREHOLDER RETURNS
2011-2015 dividends per share (€) and dividend yield
2011-2016 share price vs. SBF 120
Total shareholder return* of 320% over 2011-16 vs. 65% for SBF 120
Limited dilution from free shares
* Including impact of reinvested dividends, source Bloomberg/Factset
0.5
0.7
0.8
0.9
1.2
2011 2012 2013 2014 2015
2.2% 3.2% 2.2% 1.9% 1.8%
5
15
25
35
45
55
65
75
85
95
105Teleperformance SBF 120 (rebased) +277.4%
+34.1%
93
MAINTAINING DISCIPLINE AND ACCELERATING FURTHERIMPROVING PROFITABILITY THROUGH MULTIPLE LEVERS
“TP One”
• Optimize SG&A through business re-engineering
• Specific focus on Continental Europe
“OnTarget”
• Reduce employee churn rate through dedicated analytics solution
Purchasing
• Reduce costs as a % of sales in opex / capex (IT and non IT)
“Digital Finance”
• Improve local reporting through state-of-the-art digital and unified ERP implementation
94
TELEPERFORMANCE AT A GLANCEMAINTAINING DISCIPLINE AND ACCELERATING FURTHERACCELERATING CASH GENERATION
2011-2020 operating Working Capital* to sales (%)
2011-2020 Capex to sales (%)
Improve capex to sales ratio to return to 4.5% by 2020
Maintain operating working capital around 18-19% of sales over 2016-2020
* Defined as Accounts receivable (Trade) – Accounts payable (Trade)
4.6% 4.7%
5.2%
5.8%
5.1%
4.5%
2011 2012 2013 2014 2015 2020e
17.3% 17.0% 16.9%
20.7%
18.7% [18% - 19%]
2011 2012 2013 2014 2015 2020e
95
Yes No
Sustain organic growth Pursue targeted acquisitions
Deleverage the balance sheet Maintain debt flexibility
MAINTAINING DISCIPLINE AND ACCELERATING FURTHERCLEAR CAPITAL ALLOCATION PRIORITIES
Preserve shareholder returns
9%
24%
2014 2015 2016e
96
TELEPERFORMANCE AT A GLANCEMAINTAINING DISCIPLINE AND ACCELERATING FURTHERSUSTAIN ORGANIC GROWTH
Capex share in Asia (2014-2016e)
Project payback• Strict criteria applied: localization, security, landlord, flexibility and returns• Cash break-even typically reached within 24 months, not more than 30 months
9M 2016
c.30%
23%
97
MAINTAINING DISCIPLINE AND ACCELERATING FURTHERPURSUE TARGETED ACQUISITIONS
LanguageLine Solutions Acquisition example – ROCE evolution* (2016-2020)
* Defined as Recurring EBITA * (1-IS) / EV Acquisition – Excluding Synergies
Assumptions:• €1 = $1.10• LanguageLine Solutions Acquisition price: $1,541 M• Tax rate LLS: 40%
Targeted acquisitions in high value Specialized services
Opportunistic core service acquisitions in specific verticals and /or geographies
> 5%c. 6%
c. 7%> 8%
> 9%
Group WACC
2016e 2017e 2018e 2019e 2020e
ROCE (excl. Synergies)
98
TELEPERFORMANCE AT A GLANCEMAINTAINING DISCIPLINE AND ACCELERATING FURTHERDELEVERAGE THE BALANCE SHEET
Deleveraging profile (2007-2020)
• Projected leverage below 1.0x by 2020 based on organic growth only
1 594 1 785
1 8482 058
2 1262 347
2 433
2 758
3 398
-0,1
-0,3
0,1
-0,2
0,0
-0,4-0,3
1,1
0,7
-1
0
1
2
3
4
5
0
1000
2000
3000
4000
5000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017BP 2018BP 2019BP 2020BP
Sales
ND/EBITDA
Acquisition of The Answer
group
Multichannel offer and
multinational hub
Acquisition of Becogent
and Teledatos
Acquisition of Aegis
USA
Acquisition of LanguageLine
Solutions
Sales (€m) ND/EBITDA (x)
*
* Based on organic growth only
Optimal leverage
band
Liquidity Access to multiple markets
15 international banks
US private market
Euro private market
Commercial paper
Unutilized lines of €600m (31/12/2016), of which €300m committed
Maturity 4 years pre takeout
Targeting 5.5 years post takeout
Cost All-in cost incl. margin of c.3%,
corresponding to a c.€50m annual cash charge
More than 75% of debt protected against interest rate rise
99
MAINTAINING DISCIPLINE AND ACCELERATING FURTHERMAINTAIN DEBT FLEXIBILITY
Debt maturity – Pre takeout
To be taken out
according to
market conditions
€0m
€100m
€200m
€300m
€400m
€500m
€600m
€700m
€800m
€900m
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revolving Credit Facility Bank Loan USPP Tranch D
USPP Tranch C USPP Tranch B USPP Tranch A
500M$ Term Loan Acquisition Bridge
Term loan
USPP 10Y
USPP 7Y
100
MAINTAINING DISCIPLINE AND ACCELERATING FURTHERPRESERVE SHAREHOLDER RETURNS
Maintain current dividend policy
• Pay-out ratio of 35%
€0.33 €0.33
€0.46
€0.68
€0.80
€0.92
€1.20*
21%
26%28%
30%
35% 35% 35%
10%
15%
20%
25%
30%
35%
40%
0,00
0,20
0,40
0,60
0,80
1,00
1,20
2009 2010 2011 2012 2013 2014 2015
Pay-out ratio€
* Approved by shareholders at the Annual Meeting on April 28, 2016
Dividend per share and pay-out ratio
Conclusion
102
We are market leader with the
most global reach and diversified
client base
We are the operator with the largest revenue and recurring EBITA We are delivering more organic growth than competitors We have a more global reach than competitors, as well as a more diversified client base
We are operating in an attractive
market environment
Sizable market with compelling mid-term growth prospects, supported by clear drivers by 2020, notably in China and India domestic activities, as well as nearshore for North America Huge growth opportunities in the long-term, driven by the constant development of
customer individual interactions in an increasingly complex and dematerialized world, with further room for consolidation
We are expanding fast in Specialized
services, which supports our
2020 objectives
Combining LLS with TLScontact, Analytics and Debt collection into “Specialized services” Focus on organic growth to achieve group sales of €5bn by 2020 and pursue targeted
acquisitions Aiming to increase by 2020 the proportion of revenue from “Specialized services” to 20%,
and reach a recurring EBITA margin of at least 14%
Q&A
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