Teleperformance : 2019 First-Half Results – July 25, 2019

PRESS RELEASE

Sustainedgrowthinrevenueandresultsinfirst-half2019andincreased2019objectives

• Faster like-for-like revenue growth in the second quarter: + 10.9%
• Solid revenue growth in the first half: + 23.9% as reported and + 10.4% like-for-like*
• Increase in EBITA margin before non-recurring items to 12.8%** vs. 11.9% in first-half 2018
• Growth in diluted earnings per share: + 18.6%**
• Full-year2019 like-for-like* growth targets for revenue and operating margin raised

PARIS, July 25, 2019 - The Board of Directors of Teleperformance, the worldwide leader in outsourced omnichannel customer experience management, met today and reviewed the consolidated financial statements for the six months ended June 30, 2019. The Group also announced its half-year financial results.

Strong growth in revenue and margins

▪ Revenue:	H1:€2,564 million
	up + 10.4% like-for-like*, up + 23.9% as reported
	Q2:€1,293 million up + 10.9% like-for-like*, up + 23.9% as reported

• EBITA before non-recurring items: €327 million, for a margin of 12.8%, up + 90 bps on first-half 2018**

▪ Diluted earnings per share:	€2.49, up + 18.6%**
▪ Net free cash flow:	€172 million

Operating highlights

• Continued strong growth in Core Services and D.I.B.S. during the first half
• Faster growth in Specialized Services in the second quarter, as expected
• Continued expansion of the Group's worldwide footprint, with 12,600 new workstations in first-half 2019
• Global deployment of D.I.B.S. digital solutions at a healthy pace

2019 financial objectives raised

• Like-for-like*revenue growth of at least + 8.5%, (vs. "at least + 7%" previously)
• Growth in EBITA margin before non-recurring items of at least + 20 bps***

Long-term financial objectives confirmed

• • Revenue of at least €6 billion in 2022 at constant scope of consolidation
  • EBITA before non-recurring items of at least €850 million in 2022 at constant scope of consolidation***
  • Pursuit of targeted acquisitions, with objectives to be upgraded on completion of any such transaction
• At constant exchange rates and scope of consolidation
• Including the first-half 2019 impact of applying IFRS 16 from January 1, 2019, as follows: + €11 million for EBITA before non-recurring items, + 50 bps for EBITA margin before non-recurring items and - €0.10 for diluted earnings per share
• Excluding the impact of applying IFRS 16 from January 1, 2019

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N.B.:	- General principle of the application of IFRS 16 from January 1, 2019 in the Appendix (c.f. Appendix 1)
	- Definition of the Alternative Performance Measures (APMs) in the Appendix (c.f. Appendix 5)	1/19

Teleperformance SE (Societas Europaea). Share capital of €146,451,500. 301 292 702 RCS Paris.

21-25 rue Balzac, 75406 Paris Cedex 08 France. Siret 301 292 702 00059. Code APE 6420Z.

INTERIM FINANCIAL HIGHLIGHTS

€ millions	H1 2019*		H1 2018		% change
	€1=US$1.13		€1=US$1.22
Revenue		2,564		2,070	+ 23.9%
Like-for-like growth					+ 10.4%
EBITDA before non-recurring items		505		323	+ 56.7%
% of revenue		19.7%		15.6%
EBITA before non-recurring items		327		246	+ 33.3%
% of revenue		12.8%		11.9%
EBIT		255		190	+ 34.1%
Net profit - Group share		145		123	+ 18.0%
Diluted earnings per share (€)		2.49		2.10	+ 18.6%
Net free cash flow		172		156	+ 10.3%

• Applying IFRS 16 from January 1, 2019 had the following impact on the first-half 2019 results:
• • €96 million for EBITDA
  • €11 million for EBITA before non-recurring items and + 50 bps for EBITA margin before non-recurring items
  • €11 million for EBIT

- €7 million for net profit - Group share and - €0.10 for diluted earnings per share

Commenting on this performance, Teleperformance Chairman and Chief Executive Officer Daniel Julien said:

"The strong growth dynamic observed in the first three months of the year picked up pace during the second quarter. Our Core Services and D.I.B.S. operations in the Ibero-LATAM and CEMEA regions continued their expansion, but I was particularly pleased to see faster growth in North American markets and in Specialized Services. Our first-half 2019 results also bring to light an improvement in margins that outpaced our revenue growth, demonstrating the validity of our strategy to upscale and expand our services. Constant attentiveness to our clients and their needs - achieved notably thanks to the Group-wide deployment of our digital solutions - is now a key differentiating factor. In addition, our growth is healthy, and our capacity to generate increasing cash flows has once again been proven by our performance in the first half of the year. Based on these results and on our current visibility, we are confident about our ability to exceed the financial targets set for 2019. We are therefore raising our full-year 2019 guidance. We now expect to achieve like-for-like revenue growth of at least + 8.5% and growth in EBITA margin before non-recurring items of at least + 20 bps."

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N.B.:	- General principle of the application of IFRS 16 from January 1, 2019 in the Appendix (c.f. Appendix 1)
	- Definition of the Alternative Performance Measures (APMs) in the Appendix (c.f. Appendix 5)	2/19

Teleperformance SE (Societas Europaea). Share capital of €146,451,500. 301 292 702 RCS Paris.

21-25 rue Balzac, 75406 Paris Cedex 08 France. Siret 301 292 702 00059. Code APE 6420Z.

FIRST-HALF AND SECOND-QUARTER2019 REVENUE

CONSOLIDATED REVENUE

Consolidated revenue came in at €2,564 million for the first half of 2019, representing a year-on-year increase of + 10.4% at constant exchange rates and scope of consolidation (like-for-like) and + 23.9% as reported. The difference between reported and like-for-like growth reflects a favorable currency effect of €48 million, due notably to the rise of the US dollar against the euro, and the €226 million positive scope effect from the consolidation of ex-Intelenet operations in the Group's financial statements since October 1, 2018.

Like-for-like growth remained strong, supported by further sharp gains in Core Services and D.I.B.S., notably reflecting faster growth in the EWAP region, and by the return to a satisfactory level of growth in Specialized Services.

Second-quarter 2019 revenue came in at €1,293 million, representing a year-on-year increase of + 10.9% at constant exchange rates and scope of consolidation (like-for-like). On a reported basis, second-quarter revenue growth was + 23.9%, reflecting a favorable currency effect and the positive scope effect following the consolidation of ex-Intelenet operations.

REVENUE BY ACTIVITY(1)

	H1 2019		H1 2018	% change
€ millions				Like-for-like	Reported
CORE SERVICES & D.I.B.S.*	2,221	1,761	+ 11.4%	+ 26.1%
English-speaking & Asia-Pacific (EWAP)	801	695	+ 4.4%	+ 15.3%
Ibero-LATAM	645	563	+ 16.1%	+ 14.6%
Continental Europe & MEA (CEMEA)	519	454	+ 14.5%	+ 14.3%
India & Middle East**	255		48	+ 32.7%	n/m
SPECIALIZED SERVICES	344		309	+ 5.0%	+ 11.1%
TOTAL	2,564	2,070	+ 10.4%	+ 23.9%
* of which D.I.B.S.	507		N/A	N/A	N/A
	Q2 2019		Q2 2018	% change
€ millions				Like-for-like	Reported
CORE SERVICES & D.I.B.S.*	1,115		884	+ 11.8%	+ 26.2%
English-speaking & Asia-Pacific (EWAP)	401		345	+ 6.1%	+ 16.1%
Ibero-LATAM	329		288	+ 16.2%	+ 14.3%
Continental Europe & MEA (CEMEA)	257		225	+ 13.8%	+ 14.1%
India & Middle East**	129		26	+ 23.7%	n/m
SPECIALIZED SERVICES	178		160	+ 6.3%	+ 11.2%
TOTAL	1,293		1,044	+ 10.9%	+ 23.9%
* of which D.I.B.S.	272		N/A	N/A	N/A

** ex-Intelenet activities in the Middle East

1. According to the new business segment reporting presentation adopted on January 1, 2019 (see Appendix 3)
2. • Core Services & Digital Integrated Business Services (D.I.B.S.)

Core Services & D.I.B.S. revenue amounted to €2,221 million in first-half 2019, a year-on-year increase of + 11.4% like-for- like. On a reported basis, revenue surged by + 26.1%, due in particular to the consolidation of ex-Intelenet operations in the Group's financial statements since October 1, 2018.

Like-for-like growth remained strong during the first half, reflecting further sharp gains in the Ibero-LATAM, Continental Europe & MEA (CEMEA) and India & Middle East regions. It was also supported, as expected, by faster growth in the English- speaking & Asia-Pacific (EWAP) region during the second quarter.

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N.B.:	- General principle of the application of IFRS 16 from January 1, 2019 in the Appendix (c.f. Appendix 1)
	- Definition of the Alternative Performance Measures (APMs) in the Appendix (c.f. Appendix 5)	3/19

Teleperformance SE (Societas Europaea). Share capital of €146,451,500. 301 292 702 RCS Paris.

21-25 rue Balzac, 75406 Paris Cedex 08 France. Siret 301 292 702 00059. Code APE 6420Z.

Growth was driven by D.I.B.S., which posted revenue of €507 million in first-half 2019, representing 20% of the consolidated total.

1. English-speaking& Asia-Pacific (EWAP)

In first-half 2019, revenue for the region came to €801 million, up + 4.4% like-for-like. The + 15.3% growth on a reported basis includes a favorable currency effect stemming from the US dollar's rise against the euro and a scope effect related to the consolidation of ex-Intelenet operations.

Like-for-like revenue growth accelerated sharply in the second quarter, as expected, to + 6.1%. The increase was mainly driven by the continued recovery of the Group's businesses in North America, begun in late 2018, while revenue declined in the United Kingdom during the period, in a still uncertain economic environment.

Throughout the first half of the year, operations in North America continued to benefit from the renewed sales momentum triggered in late 2018 and the diversification of the client portfolio. The most dynamic client segments were e-tailing, healthcare, transportation services and logistics, while the insurance, entertainment and automotive industries continued to ramp up rapidly.

In Asia, growth was sustained in Malaysia, where Teleperformance continued its expansion with the recent opening of a second multilingual hub in Penang, which primarily provides B2B solutions for large accounts in the internet services industry.

1. Ibero-LATAM

First-half 2019 revenue for the Ibero-LATAM region amounted to €645 million. Year-on-year growth came to + 16.1% on a like-for-like basis and to + 14.6% as reported, mainly reflecting a decline in the Argentine peso against the euro. Second- quarter revenue growth stood at + 16.2% like-for-like, confirming the positive trend observed in the first quarter, despite a less favorable basis of comparison.

Nearshore, pan-American solutions in Mexico and Colombia were the main growth drivers in the region. Teleperformance is growing its business in numerous industries in these countries, including financial services and logistics in Mexico and transportation services in Colombia. The domestic markets in both countries, as well as in Argentina, are also dynamic.

Portugal continues to be an important source of growth for the region. The Group's business in the country is supported by the rapid expansion of multilingual hubs serving multinationals in such industries as entertainment and fast-moving consumer goods.

In Spain, growth in the Group's businesses was driven by strong sales momentum in various industries, serving leading players in the digital economy.

Lastly, operations in Brazil progressed at a satisfactory pace, with good performances recorded by the Group in the financial services, transportation and fast-moving consumer goods segments.

1. Continental Europe & MEA (CEMEA)

In the CEMEA region, revenue rose by + 14.5% like-for-like to €519 million in first-half 2019, or by + 14.3% as reported versus the prior-year period. Second-quarterlike-for-like growth came to + 13.8%.

The increase was driven once again by a very solid sales performance among multinational clients and fast-growing local market leaders in a wide range of industries.

The internet, online entertainment, e-tailing and utilities segments were the main drivers for growth in the region. Business is also ramping up rapidly in the automotive, transportation and logistics markets.

By country, the region's growth was mainly driven by a continued increase in revenue in Greece (multilingual hubs), in Eastern Europe (Russia, Romania and Poland), where Teleperformance significantly enhanced its capacity in 2018 and in Turkey.

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N.B.:	- General principle of the application of IFRS 16 from January 1, 2019 in the Appendix (c.f. Appendix 1)
	- Definition of the Alternative Performance Measures (APMs) in the Appendix (c.f. Appendix 5)	4/19

Teleperformance SE (Societas Europaea). Share capital of €146,451,500. 301 292 702 RCS Paris.

21-25 rue Balzac, 75406 Paris Cedex 08 France. Siret 301 292 702 00059. Code APE 6420Z.

Operations in France continued to perform well thanks to the ongoing ramp-up of new contracts, primarily in the energy and utilities segments.

1. India & Middle East

In the first half of 2019, operations in the India & Middle East region generated €255 million in revenue, up + 32.7% from the prior-year period on a like-for-like basis. Second-quarterlike-for-like growth came to + 23.7%.

This solid performance is primarily attributable to the fast-paced expansion of Teleperformance operations in India (TP India), particularly in the transportation services and travel segments.

The region's like-for-like growth for first-half 2019 does not include ex-Intelenet operations, which have only been consolidated since the fourth quarter of 2018. These activities recorded fast-paced growth during the period on a pro forma basis, particularly in the Indian domestic market.

• Specialized Services

In the first half of 2019, revenue rose by + 5.0% like-for-like and + 11.1% as reported, compared with the same prior-year period. Revenue increased by + 6.3% like-for-like in the second quarter, representing a much faster pace of growth than in the first three months of the year.

As expected, LanguageLine Solutions returned to normal growth in the first half of 2019.

Visa application management services (TLScontact) also saw a return to healthy levels of growth over the first half with an acceleration in the second quarter, thanks to satisfactory progress in sales of value-added services to applicants seeking UK visas.

FIRST-HALF2019 RESULTS

EBITDA before non-recurring items stood at €505 million for first-half 2019, up + 56.7% from the prior-year period. It included a favorable + €96 million impact from the application of IFRS 16.

EBITA before non-recurring items rose by + 33.3% to €327 million from €246 million the year before. EBITA margin before

non-recurring items widened by 90 bps to 12.8%, from 11.9% in first-half 2018. Excluding the impact of applying IFRS 16 from January 1, 2019, the margin increase came to + 40 bps.

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N.B.:	- General principle of the application of IFRS 16 from January 1, 2019 in the Appendix (c.f. Appendix 1)
	- Definition of the Alternative Performance Measures (APMs) in the Appendix (c.f. Appendix 5)	5/19

Teleperformance SE (Societas Europaea). Share capital of €146,451,500. 301 292 702 RCS Paris.

21-25 rue Balzac, 75406 Paris Cedex 08 France. Siret 301 292 702 00059. Code APE 6420Z.