Teleperformance Group Overview
November 2020
Disclaimer
All forward-looking statements reflect Teleperformance management's present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For a detailed description of these factors and uncertainties, please refer to the "Risk Factors" section of our Registration Document, available at www.teleperformance.com. Teleperformance undertakes no obligation to publicly update or revise any of these forward-looking statements
2
Detailed contents
Teleperformance at a glance | p. 4-9 | |||
Teleperformance at a glance | p. 5-8 | Strategy: succeeding in transformation | p. 9 | |
Health Advocate acquisition | p. 10-12 | |||
Acquisition rationale | p. 11-12 | |||
Quarterly information at 30 September 2020 | p. 13-16 | |||
Highlights | p. 14 | Revenue by activity | p. 16 | |
Outlook | p. 17-18 | |||
2020 outlook and 2022 financial objectives | p. 18 | |||
Appendices | p. 19-46 | |||
Group overview - Additional information | p. 20-27 | Market & competitive environment | p. 34-37 | |
Digital Integrated Business Services | p. 28-33 | Health Advocate acquisition - Additional information | p. 38-46 |
3
Contents
1. Teleperformance at a glance
- Health Advocate acquisition
- Quarterly information at 30 September 2020
- Outlook
- Appendices
4
Teleperformance at a glance
A leading global group in digitally integrated business services
• #1 global leader in | • | 330k+ employees | • 460 facilities |
outsourced CX(1) | • | >70%(3) working from home | |
management |
- Present in 80 countries
- Serving 1,000+(2) clients in 170+ markets
- Providing services in
265+ languages and dialects
Countries where TP operates
(1) Customer Experience (2) 31,000 including LanguageLine Solutions (businesses, government agencies and individuals) (3) reported to total active employees | 5 |
Teleperformance at a glance
Digitally integrated business services: a One-Office solution
Mission: Teleperformance people, "all over the world, all around the clock", helping people address their day-to-dayissues, in an ever more changing and complex environment
Providing high value-added digitally integrated services to corporates and government agencies
CX business services to corporates and government agencies
- Customer care & technical support
- Sales
- Back-officeservices
- Accounts receivable
Core Services & D.I.B.S
▪ | Customer care & | solutionOffice |
technical support | ||
▪ | Sales | |
▪ Back-office services | ||
Specialized Services | One- | |
▪Interpretation and translation | ||
▪Visa & consular services |
▪Accounts receivable
Three-dimensionnal expertise
Customer experience
- Customer care & technical support
- Sales
- Accounts receivable
- Interpretation and Translation
Middle/back-office optimization services
- Content moderation
- Industry specific business process services
- Visa & consular services
Knowledge services
- Consulting services
- Advanced analytics
- Intelligent automation
High value-addedDigitally Integrated Business Services to "the Disrupted
and the Disruptors"
6
Teleperformance at a glance
Geographic diversification
Group revenue breakdown (9M 2020)
Specialized
Services
12%
Core
Services &
D.I.B.S.*
88%
Core Services & D.I.B.S.* revenue breakdown (9M 2020)
India &
Middle East
9%
EWAP
36%
CEMEA
24%
Ibero-LATAM
31%
* Core Services & D.I.B.S. split by linguistic region: | ||
- EWAP | English-speaking market and Asia-Pacific (the US, Canada, the UK, the Philippines, China, etc.) | |
- Ibero-LATAM | Latin American countries (Brazil, Mexico, Colombia, etc.), Portugal and Spain | |
- CEMEA | Continental Europe, Middle East & Africa | 7 |
- India & Middle East | India and ex-Intelenet activities in the Middle East | |
Teleperformance at a glance
Ongoing diversification
Expertise in many industries
% Revenue by vertical - details H1 2020 vs. 2013
47%
16% | 15% | 14% | 14% | 14% | |||||
5% | 9% | 11% | 8% | 6% | 6% | 6% | 2%4% | 10% | |
4% | |||||||||
4% | 3% | 2% |
2013 H1 2020
Multi-year trend of lower client concentration*
% Revenue - details 2019 vs. 2013
Top 50 | 56% | ||||
68% | |||||
Top 10 | 26% | ||||
34% | |||||
Top 1 | 6% | ||||
7% | |||||
2019 | 2013 | ||||
- Increasingly diverse client base, now 1,000 clients+*
- Average tenure of client relationship is 13 years (Top 50)
- Global accounts** represent nearly 50% of total Group revenue
- E-clientsrepresent 24% of Group's revenue in H1
2020 (vs 5% in 2013) - Lower concentration caused notably by diversification in new verticals, with recent large accounts won, particularly in the e-Economy
- 90% of Teleperformance's clients served with work- from-homesolutions
* Excluding LanguageLine Solutions (31,000 clients including individuals); Top 100 in 2019: 68% | |
** Accounts served in more than 2 markets | 8 |
Teleperformance at a glance
Strategy: succeeding in transformation
▪ Becoming a leading global group in digitally integrated business services
▪ A unique selling proposition to clients: Simpler, Faster, Safer, Better and More
Vision | cost effective | |
▪ | High-tech,high-touchposition and strategy | |
▪ | A clear development and CSR strategy creating value for all stakeholders |
Challenges and opportunities
M&A
- Agile transformation to overcome the global health crisis
- Ongoing booming digitized disruption: disruptors and disrupted companies
- End-to-endand more complex demand from global clients
- Enlarged addressable market: the worldwide business process management market
- Strengthening the business model
- Specialized services
- US markets
- Acquisition of Health Advocates (agreement signed in October 2020)
9
Contents
-
Teleperformance at a glance
2. Health Advocate acquisition
- Quarterly information at 30 September 2020
- Outlook
- Appendices
10
Health Advocate acquisition
Acquisition rationale: Teleperformance strengthens its business and financial profile by acquiring Health Advocate
Teleperformance is significantly strengthening its added-value Specialized Services business by acquiring Health Advocate
A complete platform for consumer health management providing comprehensive solutions to meet consumer and employer needs
Operational excellence based on a high-touch,high-tech approach: 700 Health advocates, data driven health analytics and proprietary technology (digital CRM and predictive analytics)
Resilient subscription-based business model supported by a diversified and strong portfolio of clients with 8,400 Employer
Groups
Strong potential for future growth driven by an effective strategy of bundling the delivery of multiple solutions designed to help consumers navigate the complex US healthcare environment
- A financial and operational profile similar to Languageline Solutions*, strengthening Teleperformance Specialized Services activities in the US on the Healthcare market
* acquired by Teleperformance in 2016 | 11 |
Health Advocate acquisition
Acquisition rationale: Teleperformance strengthens its business and financial profile by acquiring Health Advocate • Accretive operation
o Strengthening top line growth, with Health Advocate benefiting from positive momentum in the future within Teleperformance
- Teleperformance is enhancing value creation for its shareholders and is well on the path to achieve its 2022 objectives
- Enhancing Group EBITA margin by c. 30 bps
- Forecasting an accretive impact of around c. +7% on earnings per share excluding amortization of intangibles*
- Teleperformance well on path to achieve 2022 objectives
- On track with the Group's strategic plan, with an increased contribution from the Specialized Services business
- After the transaction, Teleperformance will be well on the path to achieve revenue of c. €7 billion and EBITA margin of at least 14.5% by 2022
* on a pro forma 2020 basis | 12 |
Contents
- Teleperformance at a glance
- Health Advocate acquisition
3. Quarterly information at 30 September 2020
- Outlook
- Appendices
13
Quarterly information at 30 September 2020
Highlights
- Accelerating business growth in the third quarter, with revenue gaining +12.3% like-for-like*
- Agile response to the crisis and a return to robust growth since June, led by faster expansion of the digital economy and the strong Group's sales momentum
- More than 200,000 active Teleperformance employees working from home today, supported by the rapid deployment of TP Cloud Campus, Group's digital integrated remote solution
- Commitment to Teleperformance employees remaining strong, with Best Employer certifications won in 23 countries YTD.
- 2020 guidance raised and reaffirmed confidence in the Group's growth outlook through 2022
- At constant exchange rates and scope of consolidation
14
Quarterly information at 30 September 2020
Monthly LFL growth vs. last year over the first six months
15% | ||
+12.3% LFL yoy in Q3 2020 | ||
10% | ||
V-shaped monthly LFL growth | ||
over the first six months | ||
5% | • | January-February: LFL growth |
above +7% guidance | ||
• March 15-May 30: site | ||
0% | shutdowns and travel bans | |
• June: very strong LFL growth | ||
-5% | Q3 confirming recovery in June | |
Group | 15 | |
Quarterly information at 30 September 2020
Revenue by activity
2020 | 2019 | Change (%) | ||||||
Revenue (€m) | 9M | Q3 | 9M | Q3 | Like-for-like* (LFL) | Reported | ||
9M | Q3 | 9M | Q3 | |||||
Core Services & D.I.B.S. | 3,609 | 1,265 | 3,392 | 1,171 | +9.9% | +14.9% | +6.4% | +8.0% |
- EWAP | 1,285 | 429 | 1,241 | 440 | +3.2% | +0.0% | +3.6% | -2.5% |
- Ibero-LATAM | 1,111 | 400 | 983 | 338 | +23.9% | +34.9% | +13.0% | +18.2% |
- CEMEA | 883 | 321 | 786 | 266 | +13.2% | +23.0% | +12.3% | +20.6% |
- India & Middle East | 330 | 115 | 382 | 127 | -8.9% | +0.6% | -13.5% | -9.3% |
Specialized Services | 479 | 163 | 524 | 181 | -8.0% | -4.6% | -8.6% | -9.6% |
Total | 4,088 | 1,428 | 3,916 | 1,352 | +7.4% | +12.3% | +4.4% | +5.6% |
- At constant exchange rates and scope of consolidation
- Core Services & D.I.B.S. : +9.9% LFL in 9M, with an acceleration in Q3 to +14.9% LFL, particularly in the Ibero- LATAM and CEMEA regions
-
Specialized Services:
-8.0% LFL in 9M, with good momentum in Q3 (-4.6% LFL), due to sustained expansion of LanguageLine Solutions, despite the virtual shutdown of TLScontact
16
Contents
- Teleperformance at a glance
- Health Advocate acquisition
-
Quarterly information at 30 September 2020
4. Outlook
- Appendices
17
Outlook
2020 outlook and 2022 financial objectives
- Full-year2020 revenue growth target raised
- Annual like-for-like revenue growth of around +8%
- Confirmed target for an EBITA margin before non-recurring items of at least 12.5%
- Confirmation of 2022 financial objectives:
- Revenue of around €7 billion in 2022, including acquisitions in high added-value services
- Annual average like-for-like revenue growth of at least +6% per year over 2020-2022
- EBITA margin of around 14.5% in 2022
18
Contents
- Teleperformance at a glance
- Health Advocate acquisition
- Quarterly information at 30 September 2020
- Outlook
5. Appendices
19
APPENDICES
Group overview - Additional information
20
Group overview - Additional information
An international, tight and aligned team
Daniel Julien
ChairmanandCEO
Bhupender Singh | Eric Dupuy | Miranda Collard | Agustin Grisanti | Jeff Balagna | Scott Klein | Olivier Rigaudy | Leigh Ryan | |||||||||
Chief | ChiefBusiness | ChiefClientOfficer | ChiefOperating | ChiefOperating | Presidentof | DeputyCEOandCFO | ChiefLegalOfficer | |||||||||
TransformationOfficer | DevelopmentOfficer | Officer | Officer* | SpecializedServices | ||||||||||||
• | TAPs | • | LanguageLine | |||||||||||||
• | R&D | |||||||||||||||
Solutions | ||||||||||||||||
• | Marketing | |||||||||||||||
• | TLScontact | |||||||||||||||
• | Lean Six Sigma | |||||||||||||||
• | ARM | |||||||||||||||
• | IT & CISO | |||||||||||||||
• | Health | |||||||||||||||
Advocate** |
9 executive committee members
32 management committee members
100 key Group managers < 45 years, members of the Company Transformation Committee (CTC)
* Until December 31st, 2020 ** closing of the acquisition expected in Q1 2021 | 21 |
Group overview - Additional information | ||||||||||
A proven financial track record - 2012-2019 | c. 14.5% | |||||||||
14.3% | in 2022 | |||||||||
+9.9% | +10.6% | 700 | ||||||||
8 000 | c. 7,000 | 13.3% 13.6% | 15% | |||||||
600 | ||||||||||
+7.9% | +7.5% | +9.0%+9.0% | 10% | 500 | 11.2% | |||||
6 000 | +6.9% | +7.4% | 5,355 | 8% | 400 | 9.1% 9.3% 9.7% 10.3% | ||||
3,6494,180 4,441 | 6% | 300 | 10% | |||||||
4 000 | 2,347 2,4332,758 | 3,398 | 200 | |||||||
4% | 100 | 5% | ||||||||
2 000 | 2% | 0 | ||||||||
… 2022*** | ||||||||||
2012 2013 2014 2015 2016 2017 2018 2019 | ||||||||||
0 | 0% |
2012 2013 2014 2015 2016 2017 2018 2019 … | 2022 *** | Current EBITA | Net profit - gr. share | ||||||
Revenue | Group LfL growth | Current EBITA margin | |||||||
400 | 3800 | 2.6x | 2.6x | 3,0x | |||||||||||||
9% | 1.9x | 2.1x | |||||||||||||||
300 | 5.7% | 4.7% | 2800 | 1.1x | 2,0x | ||||||||||||
4.6% | 5.2% | 5.0% | 5.2% | 3.5% | 4.4% | 6% | 0.8x | ||||||||||
200 | 1800 | 1,0x | |||||||||||||||
100 | 3% | 800 | -0.4x | -0.3x | 0,0x | ||||||||||||
0 | 0% | -200 | -1,0x | ||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||
PF* | PF** | ||||||||||||||||
Net capex | Net Free cash flow | Net capex/revenue | Net debt | Net debt/EBITDA |
* LanguageLineSolutions consolidated on a 12-month basis | ** Intelenet consolidated on a 12-month basis | *** See 2020 outlook and 2022 financial objectives slide 13 | 22 |
Group overview - Additional information
Over 40 years at the forefront of customer experience and business services outsourcing
Customer Experience
Digital Customer Experience | 330k+ | ||||||||||||
employees | |||||||||||||
1998-2002 | ||||||||
Started operations | ||||||||
in Latin America: | ||||||||
acquisitions in | ||||||||
1996 | Argentina and | |||||||
Brazil | ||||||||
1993 | Started | (1998) and Mexico | ||||||
operations, | (2002) | |||||||
1986 | Started | including the | ||||||
1978 | operations | Philippines | ||||||
First listed on | in the US | |||||||
Founded in | ||||||||
the Paris stock | ||||||||
France, with 12 | ||||||||
market | ||||||||
employees in | ||||||||
telemarketing | ||||||||
2008
Acquisition of
The Answer
Group (US)
2007 Acquisition of Alliance One
2020 | ||||
Agreement signed | ||||
to acquire Health | ||||
2012 | Advocates in the US | |||
Full control of | Specialized Services | |||
TLSContact | 2018 | |||
Acquisition of | ||||
Intelenet and launch | ||||
of Digital Integrated | ||||
2014 | Business Services | |||
Acquisition of | ||||
2010 | Aegis USA | |||
Acquisition of | 2016 | |||
BeCogent (UK) | ||||
Acquisition of | ||||
and Teledatos | ||||
LanguageLine | ||||
(Colombia) | ||||
Solutions (US) | ||||
1978 | 1990 | 2000 | 2010 | 2020 | 23 |
Group overview - Additional information
Smart shoring: a unique offering of worldwide broad sourcing mix
• | Network of 33 offshore/nearshore locations around the world | Increasing share of |
• | The only industry player able to offer worldwide integrated | nearshore & offshore* |
domestic, nearshore & offshore solutions |
54%
65%
+ 11 ppt
46%
35%
20102019
% of nearshore & offshore revenue
% of domestic revenue
* in Core Services & D.I.B.S. activities | 24 |
Group overview - Additional information
Smart shoring: rapid deployment of WAHA* in c.2 months in response to Covid-19
c. 170,000** | |
180000 | WAHA* on June 30th |
160000 |
140000
120000
100000
80000
60000
40000
20000
0
>70%*** working from home today
c.5,000
WAHA* at YE19
31/12/2019 | … | 18/03/2020 22/03/2020 24/03/2020 01/04/2020 06/04/2020 12/04/2020 19/04/2020 27/04/2020 30/05/2020 30/06/2020 |
* Work-at-Home Agent | ** 220,000 including support functions | *** reported to total active employees | 25 |
Group overview - Additional information
Teleperformance R&D innovation and agility to develop WAHA* delivery model
-
TP CLOUD CAMPUS: a comprehensive virtual eco-system to ensure sustainability of work through remote
management (https://www.youtube.com/watch?v=D38-xVUuS5I)
- new work-from-home model launched in late 2019, recreating the social rich working environment and career opportunities of Teleperformance high-touchstrategy, accessible from everywhere
Ensuring employee engagement and encouraging social interaction
Same quality of the customer experience, agent productivity and data security as with the on-siteagent model
Also includes virtual working floors and solutions for online recruitment and training, personal support, with
a gamification approach
Kernel campus in Lisbon
* Work-at-Home Agent | 26 |
Group overview - Additional information
- while continually reinforcing security
- A leading reference in data and people security with key certifications and GDPR compliance
- Project Eagle initiative - keeping pace with a changing cyber-threat landscape
- Culture - promoting a cyber-smartculture within the Group
- Integrated approach towards a cyber-safeecosystem
- People - extensive cyber security training across the Group
- Process - security by design, audits, and white hat hacking
- Technology - re-architecting the network; tools to enhance the detection capabilities through Global S.O.C.*
* Security Operation Centers
Shifting the focus from an information security/compliance approach to a purely cyber-smart culture
APPENDICES
Digital Integrated Business Services
28
Digital Integrated Business Services
Leveraging technical, process and industry know-how and expertise
Technology, Analytics and Process (T.A.P.) - Knowledge Services team1 | |
Knowledge | Consulting experience in digital transformation, analytics and automation engagements |
400+ digital transformation experts | |
Services Team | |
Digital
Transformation
Team (CEMEA)
Digital Center of
Excellence
Digital
Transformation
Digital
Transformation
Team (EW and
APAC)
Technology, Analytics and Process (T.A.P.) regional teams1
Regional teams with expertise in technology, automation, analytics and process optimization 200+ digital transformation experts
Team (ILATAM)
Continuous improvement: all at Teleperformance
All operations and support functions are trained in the lean six sigma method, to continuously improve performance
1 - Includes senior IT/RPA professionals, developers, data analysts, | |
data scientists and process engineers | 29 |
Digital Integrated Business Services
Aggressively developing bots
- 000
- 000
- 000
- 000
- 000
- 000
- 000
-
000
0
c. 7,000
total bots deployed
1,450
Dec-18 | Jan-19 | Feb-19Mar-19Apr-19May-19Jun-19 | Jul-19 | Aug-19Sep-19 | Oct-19Nov-19Dec-19 |
30
Digital Integrated Business Services
Digital proprietary solutions available to clients
Not exhaustive
Omnichannel contact center tools | |
Omnichannel and | Real-time floor | Real-time | SW for quick, | Platform for | ||||||
workflow mgmt | management and | dashboard with | accurate, effective | reward and | ||||||
tool | security | key business | knowledge | gamification on | ||||||
monitoring | metrics | transfer | operations floor | |||||||
All industries | All industries | All industries | All industries | All industries |
Automation tools | | |
TP Automation | TP chat bot | |
Optimization | Automated | |
RPA/RDA projects | conversational AI | |
with TP | projects | |
methodology | ||
All industries | All industries |
Analytics and AI tools | | |||
Social Media | ||||
Solutions | ||||
Analytics for | Interactive | Speech analytics | Recommends | Recommends |
analytics with | next best | next best | ||
unstructured data, | ||||
advanced | alternative | alternative | ||
sentiment analysis | ||||
visualization | products or | products or | ||
options | services | services | ||
All industries | All industries | All industries | All industries | All industries |
Industry specific solutions | |
Automates | Workflow for an | Automate manual | Unify several | ||||
calculating | F&A process end | process of | applications on | ||||
refunds and | to end | medical coding | one screen with | ||||
change charges | management | CPT/ICD | RPA | ||||
Travel (airlines) | Financial | Healthcare | Banking |
31
Digital Integrated Business Services
Exemple: TP fare, an AI based airline fare calculator
1 Min/Trans | 1 Min/Trans | 2-5 Min/Trans | 3-10 Min/Trans | ||||
Agent receives | |||||||
START | call to | Retrieve the | View fare history. | Retrieve & read | |||
change/cancel/ | Identify Correct | ||||||
PNR* on GDS | all fare rules | ||||||
upgrade Flight | fare basis | ||||||
booking | |||||||
1 Min/Trans | 2-5 Min/Trans | 1 Min/Trans | ||||||||||
Enter refund | Identify | |||||||||||
amount/cancella- | View fare history. | |||||||||||
refundable | ||||||||||||
END | tion fee/change | Identify correct | ||||||||||
fare/taxes - | ||||||||||||
fee in the ADT | fare basis | |||||||||||
Reissue timeline | ||||||||||||
Macro | ||||||||||||
PRE | ● | High processing time | POST | ● | 30% reduction in processing time | |||||||
● | NPS of 8% | ● | NPS improved to 25% | |||||||||
● | Retail losses - 3% to 4% of cost of service | ● | Reduced retail loss to <1% of total cost of service | |||||||||
* Passenger Name Record
32
Digital Integrated Business Services
Leveraging an ecosystem of technology players and partners
Not exhaustive
Automation
Omnichannel
Contact
Center
Analytics and
AI
33
APPENDICES
Market and competitive environment
34
Market and competitive environment
#1 WW in a changing CX core market still poorly outsourced but highly disrupted
CX Outsourcing rate in 2018 (%)
VERTICAL | DISRUPTED | DISRUPTORS | ||
25% | Retail | Bricks & Mortar | E-commerce | |
Entertainment & Pay TV | Cable & Satellite | Streaming | ||
75% | Banking, financial services | Banks | Fintechs | |
and insurance | ||||
In-house | Outsourced | Transportation | Taxi | Sharing economy platforms |
Source: Everest (2019) | Accommodation | Hotels | Sharing economy platforms | |
Teleperformance revenue generation with e-clients (%)
95%
76%
24%
5%
2013 | H1 2020 |
- Helping disrupted companies to navigate the digital transformation
- Being the natural partner of the disruptors to help them deal with the "frictions" of the real world
E-clients | Other | 35 | |
Market and competitive environment
Teleperformance's transformation is leading to a broader competitive environment (1/2)
- Worldwide leader in the outsourced CX market ($60-86Bin 2018*) with a unique global diversified positioning
- Group's transformation leads to:
- Significant outperformance vs. CX peers
- Enlarged addressable market: the worldwide business process management market
Main competitors in the customer | Average growth in revenue p.a. | EBIT margin evolution over | ||
experience management market | over the 2011-2018 period*** | the 2011-2018 period*** | ||
(Revenue in US$m - FY 2018) | +11% | |||
+510 bps | ||||
6000 | ||||
5000 | ||||
4000 | ||||
3000 | ||||
2000 | +2% | |||
1000 | -110 bps | |||
0 | ||||
* | Main 4 competitors | Teleperformance | Main 4 competitors | Teleperformance |
average | average |
Source: HSF (2019) | Source: Companies annual reports | Source: Companies annual reports | |
* Source: Everest, HFS (2019) | ** Merged with Convergys within the Synnex Group; 2018 revenue of | *** Sample includes: Atento, Convergys, Sykes and Teletech; data covers the 2011-2017 | |
Concentrix includes the contribution from Convergys as of Q4 2018 | period for Convergys, before it was merged with Concentrix into the Synnex Group | 36 |
Market and competitive environment
Teleperformance's transformation is leading to a broader competitive environment (2/2)
- Enlarged competitive environment reflects growing complexity and increasingly integrated demand from the clients
Direct competitors (CCO)* | ITO/BPO companies** | Consulting Firms | |
Atento | Cognizant | Accenture | |
Concentrix/Convergys** | Enlarged and growing | EXL | Cap Gemini |
business process | |||
Sykes | Genpact | ||
management market: 4 to | |||
Teletech | 6 times larger than the | Infosys | |
Webhelp | customer experience | Tata Consulting Services | |
market | Wipro | ||
WNS | |||
* Contact Center Outsourcing | * IT Outsourcing/Business Process Outsourcing |
* *Merged with Convergys within the Synnex Group; 2018 revenue of Concentrix includes the contribution from Convergys as of Q4 2018
37
APPENDICES
Health Advocate acquisition overview - Additional information
38
Health Advocate acquisition - Additional information
A complete platform for consumer health management
- Health Advocate is a leading consumer-focused health platform for the employer market, utilizing human-touch, data-drivenhealth insights, and technology to simplify and personalize the healthcare experience for members
Navigation & Advocacy
Telephonic and digital navigation solutions supporting clinical and administrative healthcare decisions
Health & Well-Being
Complete suite of health and well-being solutions spanning wellness and engagement, behavioral health and chronic care management
Expert healthcare
Data analytics platform delivering
Proprietary CRM | Digital tools to |
guidance delivered
platform enabling | enhance the |
by personal health
member and
consumer | member |
advocates
population health insights
experience | experience | 39 |
Health Advocate acquisition - Additional information
Increasingly complex healthcare environment
Employers and employees are experiencing rising
cost and benefits complexity
5% annual family | Employee costs |
premium growth | are increasing in |
2.6% average | excess of wage |
growth | |
Consumers are seeking solutions for better health and wellness and to help them navigate a very complex system
7+ average number of benefits vendors employers interact with
wage growth | |
20x increase in high | |
90% of employers | |
deductible health plan | offered consumers |
enrollment from 2005- | directed health plans |
38% of Americans don't understand what is covered by their plan
80% of companies have implemented health and wellbeing programs - a 55% increase from 2015
2016 | in 2018 |
20%+ increase in employer premium (2014-2019)
73% of employees don't fully understand their
healthcare benefits
Less than 50% of those in-need of mental healthcare receive treatment
Strong market need for a trusted health advocate
40
Health Advocate acquisition - Additional information
Key figures (1/2)
- 700 health advocates that are specialists in the complex US healthcare system
- 8,400 clients, including many Fortune 100 companies
- 27m+ consumers covered
- Annual revenue of US$140m, EBITDA margin of 36% and EBITA margin of 27%, with strong momentum
- Consistent growth delivered by a resilient subscription-based business model: +9% LFL Revenue CAGR*
- Growing market : US$23B forecasted in 2024 vs. US$14-16B today, or +7-10%CAGR
2020E revenue breakdown by solution (% of total revenue) | Diversified customer base (% of total revenue) | |||||
37% | Top 50 | 32% | ||||
63% | Top 25 | 24% | ||||
Top 10 | 15% | |||||
Health & well-being | Navigation & advocacy | |||||
* 2017-2019 | 41 |
Health Advocate acquisition - Additional information
Key figures (2/2)
160
140
120
100
Consistent revenue growth (US$ millions)
+9% CAGR 2017-2019
139
128
116
51 |
44 |
37 |
60
50
40
Strong profitability - adj. EBITDA (US$ millions) and margin
(%)
+19% CAGR 2017-2019
4.5% | |
48 | |
43 | 4.0% |
34
3.5%
80
60
40
20
0
79 | 84 | 89 |
30
20
10
0
34%
30%
34%
3.0%
2.5%
2.0%
2017 | 2018 | 2019 | ||
Navigation & advocacy | Health & well-being | |||
2017 | 2018 | 2019 | |||
Adj. EBITDA | Adj. EBITDA margin | ||||
• Consistent growth driven by new contract wins and existing | • | Best-in-class margin |
clients cross-sells | • | Efficient and well-refined processes deliver operating leverage |
42
Health Advocate acquisition - Additional information
A large, attractive and growing market
Healthcare environment is growing increasingly complex and the consumer is bearing the burden
=> large addressable market expected to grow by +7-10% p.a. over 2019-2024
Addressable market size (US$ billions) and growth (%) | 2019 market breakdown by category (%) | |||||||
25 | ||||||||
c. 19-23* | ||||||||
20 | ||||||||
15 | c. 14-16* | +7-10% CAGR | ||||||
c. 10 | ||||||||
10 | c. 7.5-8 | +5-6% CAGR | c. 55% | c. 45% | ||||
5 | c. 9-13 | |||||||
c. 6-8 | +8-10% CAGR | |||||||
0 | ||||||||
2019 | 2024E | |||||||
Advocacy & navigation | Health & well being | Advocacy & navigation | Health & well being | |||||
* Including notably on site - near site clinics market targeted by HA (currently not present)
43
Health Advocate acquisition - Additional information
Technology and data driven solutions
- Health advocates are supported by a holistic and proprietary workflow engine powered by data analytics and clinical experts
Member engagement portal
- Customizable to employer specifications
- Mobile-enabled
Patented case management platform
- Integrated gaps in care and member spotlights to apply analytics at the point of engagement
- Purpose-builtand patent protected
Predictive analytics and machine learning
- Data aggregation across multiple sources
- Enables members specific tailored solutions and recommendations
Cross-functional teams provid expertise
- Medical directors, registered nurses, benefit specialists, claims specialists, behavioral professionals, counselors, coaches…
Personal health advocates engage with members while proprietary technology-driven analytic platforms provide tailored interactions based on data aggregated across the Health Advocate platform
Health advocates are specialists that understand how to navigate the complex healthcare system
44
Health Advocate acquisition - Additional information
Integrated solutions improving health outcomes
Diverse data sources
*
**
Health Advocate's | Superior clinical and |
solutions | financial outcome |
Improved clinical
outcomes | |
Risk & predictive | Member |
modeling | engagement app |
Closed gaps in care | |
Disease | Pricing transparency |
management | Increased member |
engagement | |
Gaps in care | Provider quality |
Employer cost savings
Custom dashboards | Analytic reporting |
* Medical prescription | ** Health reimbursement arrangement | 45 |
Health Advocate acquisition - Additional information
A Win-Win deal
3 main Wins for | 3 main Wins for |
Teleperformance | Health Advocate |
Another "LanguageLine Solution
value creating story" integrated
in the Specialized Services activities
Strong Teleperformance portfolio of clients in the North American market
Health Advocate's 8,400 clients
in the US, including many Fortune 100 companies, to serve with all TP CX and D.I.B.S. solutions
Increasing TP presence in the promising healthcare sector in the US
Sales and
operational
synergies
for both
companies
Strong Teleperformance | |
expertise in people | |
management, security, analytics | |
and automation to improve | |
operations efficiency and safety | |
Strong Teleperformance | |
management & financial | |
support to invest in the future, | |
sustain growth and improve | |
profitability | 46 |
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Teleperformance SE published this content on 18 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 November 2020 17:30:00 UTC