Teleperformance: First-Quarter 2019 Revenue

Teleperformance (Paris:TEP), the worldwide leader in outsourced
omnichannel customer experience management, today released its revenue
for the first quarter of 2019 (period from January 1 to March 31, 2019).

Strong growth in revenue

• Revenue: €1,271 million, up + 23.9% vs. Q1 2018
• Like-for-like* growth: + 9.9%
• Continued strong growth in Core Services activities
• … Also enhanced by Digital Integrated Business Services (D.I.B.S.)
  solutions
• A return to sustained growth for LanguageLine Solutions in Specialized
  Services

2019 guidance confirmed

• Like-for-like* revenue growth of at least + 7%
• Increase in EBITA margin before non-recurring items of + 20 bps

* At constant exchange rates and scope of consolidation

Commenting on this performance, Teleperformance Chairman and Chief
Executive Officer Daniel Julien said: “We have posted a solid
quarterly performance, with organic growth of + 10%, in line with our
full-year growth target of at least + 7%. First-quarter 2019 also marked
the 28^th straight quarter of at least + 5%
organic growth, confirming our status as a growth company.

This strong performance was driven by further rapid expansion of our
Core Services business in the Ibero-LATAM region and in CEMEA, and by
the continued recovery of our North American operations. We also
benefited during the quarter from the buoyant offshore and domestic
market in India. The online interpreting services of LanguageLine
Solutions in the United States, which continue to spearhead our
Specialized Services business, also recorded a solid performance in the
first quarter of 2019.

Teleperformance also modified the presentation of its businesses to
reflect (i) the expansion of its services and their shift upmarket,
notably following the acquisition of Intelenet, and (ii) its digital
solutions deployment strategy across the operations. This new
organization enables us to more effectively meet our clients’ needs in
terms of their development and digital transformation. In first-quarter
2019, our Digital Integrated Business Services, which grew at a good
pace, already accounted for 18% of our revenue, and our new economy
clients for more than 20%.

Strengthened by a dynamic first quarter, we are confident and
enthusiastic about 2019 and expect to pursue the profitable growth this
year.”

CONSOLIDATED REVENUE

CONSOLIDATED REVENUE

Consolidated revenue came in at €1,271 million for the first three
months of 2019, representing a year-on-year increase of + 9.9% 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 €30 million, due notably
to the rise of the US dollar against the euro, and the €110 million
positive scope effect following the consolidation of Intelenet in the
financial statements of the Group since October 2018.

REVENUE BY ACTIVITY

Preamble: new presentation by region

As previously announced, further to the acquisition of Intelenet in
October 2018, Teleperformance adopted a new organization of
its operating regions on January 1, 2019, resulting in the creation of a
new region – India & Middle East. The quarterly breakdown of 2018
revenue based on the new organization is provided in the Appendix.

Summary of differences between the former and
current business reporting presentations

* Praxidia has been grouped with Intelenet’s Knowledge Services
operations, based in India.

In addition, following the acquisition of Intelenet and the execution of
the Group’s strategy to deploy its digital solutions across the
organization, Teleperformance’s “digital” activities in each of the four
Core Services regions now come under the umbrella of Digital Integrated
Business Services (D.I.B.S.).

In addition to the activities in the India & Middle East region,
D.I.B.S. includes BPO activities, as well as e-mail, chat and social
networks (content moderation) solutions of the Group.

This business reporting presentation reflects the new organization to
consider the upscaling of the solutions and the digitalization of the
offering of Teleperformance to more effectively meet its clients’ needs
in terms of their development and their digital transformation.

** ex-Intelenet activities in Middle East

• Core Services & Digital Integrated Business
  Services (D.I.B.S.)

Core Services & D.I.B.S. revenue amounted to €1,105 million in
first-quarter 2019, a year-on-year increase of + 11.1% like-for-like. On
a reported basis, revenue surged by + 26.0% due to the consolidation of
Intelenet in the financial statements of the Group since October 1, 2018.

Like-for-like growth during the period was supported by another very
strong performance in the Ibero-LATAM region and the continued strong
momentum in Continental Europe & MEA. With the exception of the United
Kingdom, growth was satisfactory throughout the English World &
Asia-Pacific (EWAP) region.

D.I.B.S. revenue amounted to €235 million in the first quarter of 2019,
representing 18% of the consolidated total.

• English World & Asia-Pacific

In first-quarter 2019, revenue for the region came to €400 million, up
+ 2.8% like-for-like and + 14.5% as reported.

Including TP India’s operations in the region (former presentation),
like-for-like revenue growth would have been + 5.3%, confirming the
recovery of the Group’s businesses in the North American domestic and
offshore markets since the second half of 2018. The region’s growth was
nonetheless affected by a decline in business in the United Kingdom, in
an uncertain economic environment caused by Brexit.

Operations in North America continued to benefit from both renewed sales
momentum and the diversification of the client portfolio. The most
dynamic client segments were e-tailing, healthcare, transportation
services and fast-moving consumer goods, while the insurance,
entertainment and automotive industries continued to ramp up quickly.

In Asia, growth was primarily driven by Malaysia, where Teleperformance
continues its rapid development with the opening of a second site now
under way for the multilingual hub in Penang which caters to large
accounts in the internet services industry.

• Ibero-LATAM

First-quarter 2019 revenue for the Ibero-LATAM region amounted to
€316 million. Year-on-year growth came to + 16.1% on a like-for-like
basis. On a reported basis, growth came out at + 14.8%. The difference
between reported and like-for-like growth primarily reflects the decline
in the Argentinian peso and the Brazilian real against the euro.

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

Business in Spain grew at a rapid rate, thanks to strong sales momentum
in various industries, including e-tailing.

The Group is continuing to leverage the appeal of nearshore,
pan-American solutions in Mexico and Colombia, where it is growing its
business in numerous industries, including financial services and travel
agencies in Mexico and transportation in Colombia. It is also tapping
into buoyant domestic markets in these two countries, as well as in
Argentina.

Business in Brazil picked up pace amid an economic and geopolitical
environment that seems to have stabilized. The Group posted good
performances in various segments in the region, including financial
services, transportation and fast-moving consumer goods, notably with
new economy players.

• Continental Europe & MEA (CEMEA)

In the CEMEA region, revenue rose by + 15.1% like-for-like to
€263 million in first-quarter 2019, or by + 14.6% as reported.

This strong growth 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 entertainment, utilities, e-tailing and financial services segments
were the most dynamic, but business is also developing rapidly in the
automotive, transportation and logistics markets.

The region’s growth was also driven by a further sharp increase in
revenue in Greece (multilingual hubs) and in Eastern Europe (Russia,
Romania and Poland), where Teleperformance opened new facilities in
2018. In Turkey, business is expanding very rapidly.

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

• India & Middle East

In the first quarter of 2019, operations in the India & Middle East
region generated €126 million in revenue, up + 42.5% from the same
year-ago period on a like-for-like basis.

This solid performance is attributable to the fast-paced expansion of
Teleperformance operations in India (TP India) and, to a lesser extent,
to growth in Praxidia’s consulting business.

Like-for-like growth does not include ex-Intelenet’s operations in the
region, which have only been consolidated since the fourth quarter of
2018. Ex-Intelenet activities nonetheless recorded fast-paced growth on
a pro forma basis, both in the Indian domestic market and in offshore
operations.

• Specialized Services

In the first quarter of 2019, revenue rose by + 3.7% like-for-like and
+ 11.1% as reported, compared with the same prior-year period.

The main growth driver in Specialized Services was the LanguageLine
Solutions business, which returned to normal growth during the quarter
after a more mixed performance in 2018.

TLScontact, the Group’s visa application management service, reported
modest revenue growth for the first quarter, primarily due to the
negative impact of a change in third-quarter 2018 in the method for
invoicing the volumes processed on behalf of UK Visas and Immigration.

Taken together, the LanguageLine Solutions and TLScontact businesses
account for around 85% of Specialized Services revenues.

Revenue from the Group’s debt collection operations in North America
were down year-on-year in the first quarter of 2019.

OUTLOOK

Teleperformance confirms its 2019 financial targets: like-for-like
revenue growth of at least + 7% and an improvement in EBITA margin
before non-recurring items of 20 basis points.

The Group is also confident in its ability to continue to generate a
strong level of cash flow during the year, enabling it to pursue its
dynamic development strategy while maintaining strict financial
discipline.

DISCLAIMER

The consolidated financial statements have been audited and the auditors
have issued their corresponding report.

All forward-looking statements are based on 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.teleperformanceinvestorrelations.com.
Teleperformance undertakes no obligation to publicly update or revise
any of these forward-looking statements.

CONFERENCE CALL WITH ANALYSTS AND INVESTORS

Wednesday, April 24, 2019 at 6:15 PM CET

A replay of the conference call will be available for subsequent
listening on Teleperformance’s website, along with the relevant
documentation, in the Investor Relations section under Quarterly
Information (www.teleperformance.com),
and by clicking on the following link: http://www.teleperformanceinvestorrelations.com/en-us/press-releases-and-documentation/quarterly-information

INDICATIVE INVESTOR CALENDAR

Annual General Meeting : May 9, 2019
First-half 2019
results: July 25, 2019
Third-quarter 2019 revenue: October 30, 2019

ABOUT TELEPERFORMANCE GROUP

Teleperformance (TEP – ISIN: FR0000051807 – Reuters: ROCH.PA –
Bloomberg: TEP FP), the global leader in outsourced omnichannel customer
experience management, serves as a strategic partner to the world’s
leading companies in a wide variety of industries. Its customer care,
technical support, customer acquisition, consulting & analytics, digital
integrated business service solutions and other high-value specialized
services ensure consistently positive customer interactions that are
reliable, flexible and intelligent. The company has established the
highest security and quality standards in the industry and uses
proprietary deep learning technology to optimize flexibility on a global
scale.

The Group’s 300,000 employees, spread across 80 countries, support
billions of connections annually in 265 languages and enhance the
customer experience with every interaction. In 2018, Teleperformance
reported consolidated revenue of €4,441 million (US$5,256 million, based
on €1 = $1.18).

Teleperformance shares are traded on the Euronext Paris market,
Compartment A, and are eligible for the deferred settlement service.
They are included in the following indices: CAC Large 60, CAC Next 20,
CAC Support Services, STOXX 600, SBF 120, S&P Europe 350 and MSCI Global
Standard. They have also been included in the Euronext Vigeo Eurozone
120 index since December 2015 and the FTSE4Good Index since June 2018
with regard to the Group’s performance in corporate responsibility.

For more information: www.teleperformance.com
Follow
us on Twitter @teleperformance

APPENDICES

BREAKDOWN OF 2018 REVENUE BY QUARTER AND ACTIVITY BASED ON THE NEW
PRESENTATION

** ex-Intelenet activities in Middle East

GLOSSARY – ALTERNATIVE PERFORMANCE MEASURES

Change in like-for-like revenue:
Change in revenue at constant
exchange rates and scope of consolidation = [current year revenue – last
year revenue at current year rates – revenue from acquisitions at
current year rates] / last year revenue at current year rates.

EBITDA before non-recurring items or current EBITDA (Earnings before
Interest, Taxes, Depreciation and Amortizations):
Operating profit
before depreciation & amortization, amortization of intangible assets
acquired as part of a business combination, goodwill impairment charges
and non-recurring items.

EBITA before non-recurring items or current EBITA (Earnings before
Interest, Taxes and Amortizations):
Operating profit before
amortization of intangible assets acquired as part of a business
combination, goodwill impairment charges and non-recurring items.

Non-recurring items:
Principally comprises restructuring costs,
incentive share award plan expense, costs of closure of subsidiary
companies, transaction costs for the acquisition of companies, and all
other expenses that are unusual by reason of their nature or amount.

Net free cash flow:
Cash flow generated by the business –
acquisitions of intangible assets and property, plant and equipment net
of disposals – financial income/expenses.

Net debt:
Current and non-current financial liabilities – cash and
cash equivalents

Diluted earnings per share (net profit attributable to shareholders
divided by the number of diluted shares and adjusted):
Diluted
earnings per share is determined by adjusting the net profit
attributable to ordinary shareholders and the weighted average number of
ordinary shares outstanding by the effects of all potentially diluting
ordinary shares. These include convertible bonds, stock options and
incentive share awards granted to employees when the required
performance conditions have been met at the end of the financial year.

N.B.: the Alternative Performance
Measures (APMs) are defined in the Appendix

Teleperformance SE (Societas Europaea). Share capital of
€144,450,000. 301 292 702 RCS Paris.
21-25 rue Balzac, 75406
Paris Cedex 08 France. Siret 301 292 702 00059. Code APE 6420Z.

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