2021: continued organic growth well above the market
average
- Sustained like-for-like* growth for the full year: +11.6%
- Sharp acceleration in like-for-like growth in the fourth
quarter: +23.3%
- Return to pre-Covid (H2 2019) level of EBITA margin in the
second half: 15.7%
- Rapid response to the crisis and a return to sustained growth
since June, driven by faster development of the digital economy and
the Group’s strong sales momentum
- Recommended dividend of €2.40 per share, unchanged from the
previous year
- 2021 objectives: like-for-like growth of at least +9.0%* and an
EBITA margin before non-recurring items of more than 14.0%
- Confirmation of the 2022 objective of further rapid growth in
revenue and margins
Regulatory News:
The Board of Directors of Teleperformance (Paris:TEP), a leading
global group in digitally integrated business services, met today
and reviewed the consolidated and parent company financial
statements for the year ended December 31, 2020. The Group also
announced its financial results for the year.
Highly resilient financial results in 2020
- Revenue: €5,732 million, up +11.6% like-for-like*, up +7.0% as
reported up +23.3% like-for-like* in fourth-quarter 2020
- EBITA before non-recurring items: €735 million, for a margin of
12.8% Margin of 15.7% for H2 2020, the same as the pre-Covid margin
in H2 2019
- Net profit – Group share: €324 million
- Net free cash flow: €487 million, up +52% vs. 2019
- Dividend per share: €2.40**, unchanged from 2019
Agile transformation to overcome the global health crisis and
speed up growth
- Three priorities met to overcome the
health crisis: employee health, business health and cash
health
- Net creation of 50,000 jobs during the
year
- A strong commitment to employees,
particularly during the crisis, with 28 countries achieving “top
employer” certifications, representing 87% of the Group’s workforce
at year-end
- More than 250,000 Teleperformance employees working from home at
end-December 2020, versus less than 10,000 before the health
crisis.
- Rapid worldwide deployment of TP Cloud
Campus, an integrated cloud-based solution for managing the
customer experience remotely, for the benefit of teams and
management; the solution is now implemented in 32 countries.
- Strong sales momentum supported by
a highly digitalized environment: 26% of revenue was generated from
digital economy companies, versus 21% in 2019
2021 financial objectives
- Like-for-like growth of at least +9.0%
- EBITA margin before non-recurring items of more than 14.0%
- Integration of Health Advocate expected during the second
quarter
2022 financial objectives confirmed
- Revenue of around €7 billion, including acquisitions in
high-value services
- EBITA margin before non-recurring items of around 14.5%
* At constant exchange rates and scope of consolidation **
Subject to shareholder approval at the next Annual General Meeting,
to be held on April 22, 2021
FINANCIAL HIGHLIGHTS
€ millions
2020
2019
% change
€1=US$1.14
€1=US$1.12
Revenue
5,732
5,355
+7.0%
Like-for-like growth
+11.6%
EBITDA before non-recurring
items
1,128
1,138
% of revenue
19.7%
21.2%
EBITA before non-recurring
items
735
764
% of revenue
12.8%
14.3%
EBIT
555
621
Net profit - Group share
324
400
Diluted earnings per share (€)
5.52
6.81
Dividend per share (€)
2.40*
2.40
Net free cash flow
487
321
* Subject to shareholder approval at the next Annual General
Meeting, to be held on April 22, 2021
Commenting on this performance, Teleperformance Chairman and
Chief Executive Officer Daniel Julien said: “The past year has
enabled Teleperformance to set new growth records while
demonstrating the resilience and the strength of its business model
as well as the agility of its organization in 83 countries, despite
the uncertain and unprecedented environment caused by the global
health crisis.
Like-for-like growth of nearly +12% for the year after a sharp
acceleration in the fourth quarter to +23%, more than 250,000
people now working from home and the record number of countries
certified as ‘Top employers’, covering 87% of our global workforce,
all attest that we’ve achieved our objectives and successfully
tackled challenges to overcome the Covid-19 crisis. In short, we
have protected our employees' health, developed business with our
clients and maintained the Group’s financial strength. We have also
pursued our acquisitions-led growth strategy in high-value
services, announcing the acquisition of Health Advocate, a US-based
healthcare cost management company.
With revenue close to €6 billion for the year, we consolidated
our global leadership in outsourced omnichannel customer experience
management in an increasingly digital environment.
The digital transformation and the constant quest for excellence
in high-tech, high-touch strategy continue to underpin our value
creation model. We’re rapidly deploying TP Cloud Campus, our
integrated solution for managing the customer experience remotely.
And we're continuing to invest in priority areas such as
cybersecurity and employee health, as illustrated by our recent
commitment to supporting Group employees worldwide with their
Covid-19 vaccinations. Delivering an enhanced, more personalized
customer experience that is ‘simpler, safer, faster’ is central to
our vision. Maintaining our status as a Top employer and taking
action to support diversity and environmental responsibility are
among our priorities. New, ambitious and results-oriented targets
have therefore been set this year.
In 2021, we remain committed to our strategy of growth and
progress for all our stakeholders. Thanks to Teleperformance’s
dynamic business development and accelerated transformation, we
expect to continue growing our revenue by at least +9.0%
like-for-like, while also widening our margins, creating jobs and
deepening our commitment to corporate social responsibility.
We’re also maintaining our financial targets for 2022, confident
in our ability to continue delivering effective solutions to meet
our clients’ ever-changing needs and our employees’ aspirations.
Their many messages of gratitude for our assistance in overcoming
the crisis are the best reward and the ultimate incentive to
continue achieving our goals.”
2020 REVENUE
CONSOLIDATED REVENUE
Revenue amounted to €5,732 million for the year ended
December 31, 2020, representing a year-on-year increase of +11.6%
at constant exchange rates and scope of consolidation
(like-for-like) and of +7.0% as reported. The unfavorable currency
effect (-€217 million) primarily stemmed from the decline against
the euro of the main Latin American currencies, the Indian rupee
and, in the second half, the US dollar.
In 2020, like-for-like growth was driven by strong gains in the
Core Services & D.I.B.S. business (+14.2%). Specialized
Services revenue was down -5.4%, due to the virtual standstill in
TLScontact’s visa application management business since the start
of the health crisis, and despite strong revenue growth at
LanguageLine Solutions.
Fourth-quarter 2020 revenue came in at €1,644 million, a
year-on-year increase of +23.3% on a like-for-like basis.
After a solid first half despite the full impact of Covid-19
between mid-March and end-May, the upturn in growth initiated in
June gradually strengthened over the second half of the year. The
sharp acceleration in the fourth quarter was notably led by
Continental Europe & MEA (CEMEA), while the Ibero-LATAM region
continued to record a very solid pace of growth.
REVENUE BY ACTIVITY
2020
2019
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
5,080
4,650
+14.2%
+9.2%
English-speaking & Asia-Pacific
(EWAP)
1,791
1,715
+6.4%
+4.4%
Ibero-LATAM
1,538
1,360
+24.8%
+13.0%
Continental Europe & MEA (CEMEA)
1,299
1,067
+22.9%
+21.7%
India & Middle East**
452
508
-5.2%
-11.0%
SPECIALIZED SERVICES
652
705
-5.4%
-7.5%
TOTAL
5,732
5,355
+11.6%
+7.0%
* Digital Integrated Business Services ** Ex-Intelenet
operations in the Middle East
- Core Services & Digital Integrated
Business Services (D.I.B.S.)
Core Services & D.I.B.S. revenue amounted to €5,080 million
in 2020, a year-on-year increase of +14.2% like-for-like. Reported
revenue growth came to +9.2%, primarily due to the decline against
the euro of the main Latin American currencies, the Indian rupee
and, in the second half, the US dollar.
In the fourth quarter, like-for-like growth continued to
accelerate compared to the first nine months of the year,
particularly in Continental Europe & MEA (CEMEA), which also
benefited from a favorable basis of comparison, while the
Ibero-LATAM region continued to record a very solid pace of growth.
The dynamic performance in segments such as e-tailing, online
entertainment and the public sector reflected the ramp-up of
contracts secured since late 2019 and the start-up of new contracts
signed during the crisis.
- English-speaking & Asia-Pacific (EWAP)
Revenue for the region came to €1,791 million in 2020, up +6.4%
like-for-like. The reported gain of +4.4% included an unfavorable
currency effect stemming notably from the US dollar’s decline
against the euro in the second half of the year. In the fourth
quarter, revenue growth accelerated to +15.7% like-for-like.
In the North American market, growth picked up in the fourth
quarter in the e-tailing, online entertainment and automotive
industries, as well as in consumer electronics.
Over the full year, the healthcare segment – the region's top
revenue contributor – expanded at a solid pace. Hospitality and
tourism, on the other hand, were heavily impacted by the global
health crisis, particularly offshore operations.
Offshore activities in the Philippines stagnated during the year
to the advantage of nearshore business in the Ibero-LATAM region,
where the environment was more conducive to the large-scale
deployment of work-from-home solutions. Business development in the
Philippines was challenged in particular by the very tight
restrictions on movement maintained in the country’s main
cities.
In the United Kingdom, operations continued to expand rapidly in
the fourth quarter, benefiting from faster deployment of Covid-19
support services to the government and, to a lesser extent, strong
sales momentum in e-tailing.
In Asia, revenue grew briskly after the very strict health
measures imposed in the first quarter were lifted. China, the
leading revenue contributor in Asia, recorded a solid pace of
growth, particularly in the consumer electronics and e-tailing
segments. Malaysia continued to post very strong growth, thanks
mainly to the contribution of contracts signed recently in the
social media segment. Business ramp up in Japan, where operations
got underway in 2019, contributed to the strong momentum in the
region.
In 2020, revenue for the Ibero-LATAM region amounted to €1,538
million, a year-on-year increase of +24.8% like-for-like. On a
reported basis, growth came out at +13.0%, primarily reflecting the
decline against the euro of the Brazilian real, the Colombian peso,
the Argentinian peso and the Mexican peso.
Like-for-like revenue growth in the fourth quarter came to
+27.3%. Thanks to the rapid deployment of a work-from-home model at
the height of the crisis, as well as numerous contracts signed with
digital economy clients, Teleperformance returned to a very strong
pace of growth in this region as early as June.
Colombia, Mexico’s nearshore operations, Portugal and Spain were
the main drivers behind this performance. In terms of client
segments, financial services, e-tailing, online entertainment and
consumer electronics all recorded solid growth. Business is also
developing rapidly in the automotive and food services markets.
- Continental Europe & MEA (CEMEA)
In 2020, CEMEA region revenue rose by +22.9% like-for-like,
significantly outpacing the market, to reach €1,299 million.
Reported revenue growth came to +21.7%.
The sharp acceleration in growth continued throughout the year,
reflecting the ramp-up of major contracts signed before the crisis
and the ongoing momentum of brisk sales operations. Fourth-quarter
revenue growth stood at +50.2% like-for-like, confirming the return
to sustained growth initiated in June and reflecting a particularly
favorable basis of comparison for the quarter.
The region’s sales performance with multinational clients
remained very satisfactory, particularly in the online
entertainment, e-tailing and consumer electronics segments. This
was notably the case in Greece (multilingual hubs), for the
German-speaking market (particularly offshore operations), as well
as in Italy, Eastern Europe, Turkey and Egypt. The very robust
growth recorded in the fourth quarter also reflects the deployment
of Covid‑19 support services for governments, particularly in the
Netherlands.
In 2020, operations in the India & Middle East region
generated €452 million in revenue, down 5.2% like-for-like and
-down 11.0% as reported, due to a negative currency effect related
to the decline of the Indian rupee against the euro.
In the fourth quarter, revenue was up +6.4% like-for-like. The
return to growth initiated in the third quarter was notably driven
by the relaxation of drastic lockdown measures in India and the
return to sustained growth in offshore operations, particularly in
the e-tailing, social media and consumer electronics segments.
The region’s full-year revenue growth were affected by the
termination of low-margin contracts in domestic operations in
India. Begun in late 2019, the termination program picked up pace
during first-half 2020, against the backdrop of the pandemic, and
was completed by the end of the year.
In 2020, revenue amounted to €652 million, down 5.4% on a
like-for-like basis and down 7.5% as reported, due to the decline
in the US dollar against the euro in the second half of the year.
Revenue returned to growth in the fourth quarter, at +2.7%
like-for-like.
Business at TLScontact has been down sharply since the start of
the global health crisis due to travel restrictions and border
closures. An upturn in revenue is not expected to occur until the
second half of 2021, and its magnitude will depend on how the
health crisis evolves. In late 2021, TLScontact is expected to
benefit from the start-up of a contract to manage support services
for US consular operations around the world, following its
preselection by the US State Department announced in late 2020.
LanguageLine Solutions returned to a very solid pace of growth
as early as June 2020. This achievement reflects a very efficient
sales organization, a strong position in healthcare and public
services, and an offering based on 13,700 interpreters who mainly
work from home, making it possible to continue operating despite
lockdown measures and other restrictions affecting the work
environment.
The action plan launched in 2019 to revitalize the debt
collection business in North America, and notably its sales force,
produced results in 2020 despite the health crisis. The business
recovered in June and has since recorded sustained growth in
revenue.
2020 RESULTS
EBITDA before non-recurring items stood at €1,128 million for
the year, down 0.9% from 2019.
EBITA before non-recurring items came to €735 million, down a
limited 3.8% from €764 million the year before, and representing a
margin of 12.8% versus 14.3% in 2019. The change was primarily
attributable to the near shutdown of TLScontact’s operations in
Specialized Services from April, which had a negative impact on
EBITA before non-recurring items of €78 million vs. 2019.
EBITA before non-recurring items was also impacted, mainly in
the first half of the year, by the pandemic’s disruptive effect on
the Group’s capacities at the height of the crisis. Lockdown
measures forced the closure of many facilities, particularly in
India, the Philippines and Tunisia, in the Group’s Core Services
& Digital Integrated Business Services.
The implementation of action plans to protect employees and
ensure business continuity, which included the expansion of
home-based working solutions, represented an external expense of
€45 million, of which €22 million was recorded in the first half of
the year.
The Group also recorded write-downs of receivables for €4
million, relating to certain clients in receivership. On the other
hand, the Group benefited from rent reductions for €5 million and
from various government support measures for €7 million.
The return to revenue growth since June driven by the rapid
deployment of work-from-home solutions in the first half and the
strong sales momentum maintained during the crisis resulted in an
EBITA margin before non-recurring items of 15.7% in second-half
2020, unchanged from the prior-year period, representing a return
to pre-crisis levels despite the losses recorded by TLScontact.
OPERATING EARNINGS BY ACTIVITY(1)
EBITA before non-recurring items by activity
2020
2019
€ millions
Year
H2
Year
H2
CORE SERVICES & D.I.B.S.*
561
390
539
324
% of revenue
11.0%
14.3%
11.6%
13.3%
English-speaking & Asia-Pacific
(EWAP)
128
84
154
96
% of revenue
7.2%
9.0%
9.0%
10.5%
Ibero-LATAM
179
117
156
87
% of revenue
11.6%
14.1%
11.4%
12.2%
Continental Europe & MEA (CEMEA)
120
98
89
57
% of revenue
9.3%
13.3%
8.3%
10.4%
India & Middle East
67
49
81
42
% of revenue
14.9%
20.7%
16.0%
16.6%
Holding companies
67
42
59
42
SPECIALIZED SERVICES
174
92
225
113
% of revenue
26.8%
27.4%
31.8%
31.3%
TOTAL
735
482
764
437
% of revenue
12.8%
15.7%
14.3%
15.7%
* Digital Integrated Business Services
Core Services & D.I.B.S reported EBITA before non-recurring
items of €561 million in 2020, compared to €539 million the year
before. The margin narrowed to 11.0% from 11.6% one year
earlier.
The decline was primarily due to (i) the impact of the lockdowns
implemented in India, the Philippines, Tunisia and many other
countries and (ii) the cost of rapidly deploying, in a challenging
environment, a work-from-home model for most agents.
The negative impact mainly affected the Group’s profitability in
the first half of the year. The upturn in revenue since June
resulted in an EBITA margin before non-recurring items of 14.3% for
second-half 2020, up 100 bps from the prior-year period. This
return to above pre-crisis level profitability suggests that Core
Services & D.I.B.S. will continue to record strong growth in
results in 2021, particularly in the first half of the year.
- English-speaking & Asia-Pacific (EWAP)
The EWAP region generated EBITA before non-recurring items of
€128 million in 2020, compared with €154 million in 2019, while the
margin came to 7.2% versus 9.0% the year before.
In the North American market, profitability was impacted by
lockdown measures, notably in the Philippines, and by the crisis in
the travel and hospitality industries. The United Kingdom recorded
a very solid pace of growth, supported by the rapid deployment of
Covid-19 helpline services. In the Asia-Pacific region, margins
continued to improve thanks to strong, profitable business growth
in Malaysia, where the contact center segment was not subject to
lockdown measures, and, to a lesser extent, in China.
EBITA before non-recurring items in the Ibero-LATAM region rose
to €179 million in 2020 from €156 million the year before. Margin
stood at 11.6%, versus 11.4% in 2019.
While the margin was down in the first half of the year in most
of the region’s countries, primarily due to the cost of deploying
work-from-home solutions and the cost of starting up numerous new
contracts, it picked up in the second half to reach 14.1%, a sharp
increase from the prior-year period (12.2%) driven by strong growth
in revenue. Among the top contributors to this solid performance,
Colombia stands out as a model of high profitability and rapid
recovery thanks to the very dynamic development of its operations,
particularly in the digital economy.
- Continental Europe & MEA (CEMEA)
EBITA before non-recurring items in the CEMEA region came to
€120 million in 2020, versus €89 million in 2019, yielding a margin
of 9.3% versus 8.3% one year earlier.
After a first-half performance shaped by the impact of
lockdowns, which were strictest in the French-speaking operations
in Tunisia and, to a lesser extent, France, as well as by
work-from-home transformation costs, the region’s EBITA margin
before non-recurring items increased in the second half of the year
to 13.3%, from 10.4% in the prior-year period. This solid momentum
was notably driven by profitability improvements in multilingual
operations in Greece, the German market, operations in the
Netherlands, which were buoyed by the wide-scale deployment of
Covid-19 support services, and the nearshore operations in Albania
serving the Italian market.
EBITA before non-recurring items in the India & Middle East
region amounted to €67 million in 2020, versus €81 million the year
before. EBITA margin before non-recurring items came to 14.9%
versus 16.0% in 2019.
The numerous facility closures made necessary by the drastic
lockdown measures imposed in India weighed heavily on the region’s
margin in the first half of the year. International offshore
contracts were prioritized in the gradual deployment of
work-from-home solutions. Thanks to their ramp-up and the
completion of the program to terminate low-margin domestic
contracts, EBITA margin before non-recurring items improved in the
second half of the year to reach 20.7%, versus 16.6% for the
prior-year period.
Specialized Services reported EBITA before non-recurring items
of €174 million in 2020, compared with €225 million in 2019. Margin
came out at 26.8% versus 31.8% the year before.
TLScontact’s margin contracted sharply over the year due to the
sudden cessation of its visa application management business in
March, and despite the very rapid implementation of cost-cutting
measures. The decline had a negative impact of -€78 million on
EBITA before non-recurring items for the full year vs. 2019.
At LanguageLine Solutions, EBITA continued to rise in 2020 and
margin, which remained high, proved particularly resilient during
the crisis. This reflected the fact that the company’s services are
delivered by 13,700 interpreters who were already working from home
before the pandemic and were therefore able to ensure the smooth,
uninterrupted flow of business.
OTHER INCOME STATEMENT ITEMS
EBIT amounted to €555 million for the year, versus €621 million
in 2019. It included:
• amortization of acquisition-related intangible assets in an
amount of €104 million, versus €109 million in 2019;
• €37 million in accounting expenses relating to performance
share plans;
• €37 million in other non-recurring accounting expenses,
corresponding to impairment losses on goodwill recognized mainly on
the French-speaking operations.
The financial result represented a net expense of €88 million,
versus €90 million in 2019. Interest on financial liabilities was
down sharply, from €58 million in 2019 to €45 million.
Income tax expense came to €143 million. The Group’s average
effective tax rate was 30.6%, versus 24.7% in 2019, due to
impairment losses on goodwill and an unfavorable mix effect
stemming from sustained growth of business in countries with higher
tax rates.
Net profit – Group share totaled €324 million, versus €400
million the previous year. Diluted earnings per share came to €5.52
in 2020, compared with €6.81 in 2019.
CASH FLOWS AND FINANCIAL STRUCTURE
Net free cash flow after lease expenses, interest and tax paid
amounted to €487 million, versus €321 million the year before,
representing an increase of +51.7%.
The change in consolidated working capital requirement over the
year was an inflow of €14 million, compared with an outflow of €148
million in 2019. This primarily reflects the close attention paid
throughout the year to sales outstanding, as well as the
postponement of certain social security contribution payments
because of the health crisis.
Net capital expenditure amounted to €254 million, or 4.4% of
revenue, versus €252 million and 4.7% in 2019. Excluding the impact
of outlays to deploy work-from-home solutions during the health
crisis (€49 million), net capital expenditure was down
year-on-year. It was nevertheless maintained at a high level,
reflecting the robust growth in demand in the Group's markets.
After the payment of €141 million in dividends, net debt stood
at €2,274 million at December 31, 2020, down from €2,665 million
one year earlier.
In April 2020, S&P confirmed Teleperformance’s
investment-grade credit rating of BBB- with a stable outlook,
reflecting the Group’s financial strength and securing its ability
to diversity its sources of financing under the best possible
conditions.
2020 OPERATING HIGHLIGHTS
- Management of the Covid-19 health
crisis
The global health crisis caused by Covid-19 has led many
countries to impose lockdown measures and travel bans. As a result,
the global economy has entered a phase of systemic crisis.
In light of this exceptional situation, the Group has taken a
wide range of measures to meet its priorities – ensuring employee
safety, maintaining jobs, continuing to serve its clients and
preserving its financial strength – in full compliance with
instructions from authorities in each country where it
operates.
- Implementation of a crisis management
organization, which notably included the deployment of a dedicated
internal and external communication system and daily updates on the
situation and its impact on Group operations.
- Compliance with the hygiene and social
distancing standards set by local authorities and with the
guidelines and recommendations issued by the World Health
Organization (WHO) at all Group facilities.
- Deployment of work-at-home solutions in
record time, with more than 200,000 home-based jobs created in just
two months at the height of the crisis.
- Implementation and continued operation of
essential services hotlines, notably to support governments
worldwide in the fight against Covid-19.
- Enhanced liquidity.
- Agreement signed to acquire Health
Advocate
On October 27, 2020, Teleperformance announced the signing of an
agreement to acquire Health Advocate. With the acquisition of this
US-based company, a leader in consumer health management business
services and digital solutions integration, Teleperformance will
significantly strengthen its strong added-value Specialized
Services business portfolio.
Health Advocate is a leading US-based, consumer-focused health
platform for the employer market. Founded in 2001 and headquartered
in Plymouth Meeting, Pennsylvania, Health Advocate generates
revenue of US$140 million and adjusted EBITDA of US$50 million,
representing a margin of 36%.
The transaction is expected to close in the second quarter of
2021, subject to receipt of certain regulatory approvals and other
customary closing conditions.
- A record year for “top employer”
certifications
As of December 31, 2020, Teleperformance, which has made the
well-being of its employees a key priority worldwide, had been
certified as a first-rate employer by independent experts such as
Great Place to Work in 28 countries: Albania, Argentina, Brazil,
China, Colombia, Costa Rica, Dominican Republic, Egypt, El
Salvador, Germany, Greece, India, Indonesia, Kosovo, Madagascar,
Malaysia, Mexico, Morocco, Peru, Philippines, Portugal, Russia,
Saudi Arabia, Spain, Tunisia, United Arab Emirates, United Kingdom
and the United States. These certifications cover 87% of the
Group’s global workforce, versus 70% in 2019 (22 countries
certified).
- Expansion of the onsite workstation
base
In 2020, Teleperformance continued to deploy its strategy of
expanding worldwide, with the installation of around 14,000 new
workstations
New workstations installed in new facilities in:
- the English-speaking & Asia-Pacific
(EWAP) region: South Africa, the United Kingdom and the
Philippines; - the Ibero-LATAM region: Brazil, Colombia, Mexico and
Spain; - the Continental Europe & MEA (CEMEA) region: Greece,
Egypt and Russia; - the India & Middle East region: India.
Increase in the number of workstations in existing facilities
in:
- the English-speaking & Asia-Pacific
(EWAP) region: in the United States and Malaysia; - the Ibero-LATAM
region: in Brazil; - the Continental Europe & MEA (CEMEA)
region: in Turkey, Egypt, Sweden and Madagascar; - the India &
Middle East region: in India.
- Development of work-at-home solutions
and the TP Cloud Campus
At the height of the crisis, Teleperformance set up more than
200,000 home-based workstations for Group agents in just two
months, to help fight the spread of Covid-19.
At the end of 2020, more than 250,000 Group employees were
working from home compared to less than 10,000 employees before the
health crisis.
Deployment of the TP Cloud Campus (TPCC) solution was also
stepped up during the year. TPCC can be considered an advanced,
integrated version of the conventional work-at-home model,
providing a solution for managing the customer experience remotely,
for the benefit of teams and management. It also serves as a global
standard, ensuring consistency across all of the Group’s remote
operations worldwide. TPCC solution is now deployed in 32
countries.
The many features available include: virtual talent recruitment,
training, development, coaching, team building, customer
interactions, quality control, management and an environment
conducive to wellness and a rewarding social life for employees.
This gaming-based solution also provides employees with
entertainment, learning and networking opportunities, as part of
Teleperformance’s new “campus life”.
The value proposition for clients is based on the best possible
support to ensure business continuity, improved agent performance,
enhanced data security, unparalleled global flexibility and the
ability to interact at any time with dedicated Teleperformance
teams.
OUTLOOK
- 2021 financial
objectives
Thanks to dynamic business development in 2020 and the continued
acceleration of its transformation, Teleperformance has started
2021 with confidence and is targeting:
- Like-for-like revenue growth of at least
+9.0% - EBITA margin before non-recurring items of more than 14.0%
- Integration of Health Advocate during the second quarter
The Group’s first-half 2021 performance will benefit, in
particular, from the very strong sales momentum observed throughout
2020 and from the favorable basis of comparison created by the
onset of the global health crisis in March 2020.
- 2022 financial
objectives
Confident in its ability to continue delivering effective
solutions to meet its clients’ constantly changing needs,
Teleperformance is also maintaining its financial targets for
2022:
- Revenue of around €7 billion, including acquisitions in
high-value services
- An EBITA margin of around 14.5%
---------------------------
DISCLAIMER
The consolidated financial statements have been audited and
their corresponding report will be issued at a later date.
All forward-looking statements are based on Teleperformance
management’s present expectations of future events and are subject
to some 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
A conference call and webcast will be held today at 8:00 PM CET.
The webcast will be available live or for delayed viewing at:
https://channel.royalcast.com/landingpage/teleperformance/20210225_1/
The annual financial report and presentation materials will be
available after the conference call on
http://www.teleperformanceinvestorrelations.com/en-us at:
http://www.teleperformanceinvestorrelations.com/en-us/press-releases-and-documentation/financial-results
PROVISIONAL INVESTOR CALENDAR
First-quarter 2021 revenue: April 21, 2021 Annual General
Meeting: April 22, 2021
ABOUT TELEPERFORMANCE GROUP
Teleperformance (TEP – ISIN: FR0000051807 – Reuters: TEPRF.PA -
Bloomberg: TEP FP), a leading global group in digitally integrated
business services, serves as a strategic partner to the world’s
largest companies in many industries. It offers a One Office
support services model combining three wide, high-value solution
families: customer experience management, back-office services and
business process knowledge services. These end-to-end digital
solutions guarantee successful customer interaction and optimized
business processes, anchored in a unique, comprehensive high tech,
high touch approach. The Group's 383,000 employees, based in 83
countries, support billions of connections every year in over 265
languages and 170 markets, in a shared commitment to excellence as
part of the “Simpler, Faster, Safer” process. This mission is
supported by the use of reliable, flexible, intelligent
technological solutions and compliance with the industry’s highest
security and quality standards, based on Corporate Social
Responsibility excellence.
In 2019, Teleperformance reported consolidated revenue of €5,732
million (US$ 6.5 billion, based on €1 = $1.12) and net profit of
€324 million.
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
APPENDIX 1 – QUARTERLY AND HALF-YEARLY REVENUE BY
ACTIVITY
Q4 2020
Q4 2019
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,471
1,258
+26.3%
+16.9%
English-speaking & Asia-Pacific
(EWAP)
506
474
+15.7%
+6.7%
Ibero-LATAM
427
377
+27.3%
+13.3%
Continental Europe & MEA (CEMEA)
416
281
+50.2%
+48.0%
India & Middle East**
122
126
+6.4%
-3.6%
SPECIALIZED SERVICES
173
181
+2.7%
-4.3%
TOTAL
1,644
1,439
+23.3%
+14.2%
Q3 2020
Q3 2019
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,265
1,171
+14.9%
+8.0%
English-speaking & Asia-Pacific
(EWAP)
429
440
+0.0%
-2.5%
Ibero-LATAM
400
338
+34.9%
+18.2%
Continental Europe & MEA (CEMEA)
321
266
+23.0%
+20.6%
India & Middle East**
115
127
+0.6%
-9.3%
SPECIALIZED SERVICES
163
181
-4.6%
-9.6%
TOTAL
1,428
1,352
+12.3%
+5.6%
Q2 2020
Q2 2019
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,165
1,115
+7.9%
+4.5%
English-speaking & Asia-Pacific
(EWAP)
425
401
+4.9%
+6.0%
Ibero-LATAM
355
329
+18.8%
+7.9%
Continental Europe & MEA (CEMEA)
288
257
+12.9%
+12.1%
India & Middle East**
97
129
-19.8%
-24.3%
SPECIALIZED SERVICES
142
178
-21.0%
-20.2%
TOTAL
1,307
1,293
+3.8%
+1.1%
Q1 2020
Q1 2019
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,179
1,105
+6.8%
+6.6%
English-speaking & Asia-Pacific
(EWAP)
431
400
+4.8%
+7.8%
Ibero-LATAM
356
316
+18.1%
+12.5%
Continental Europe & MEA (CEMEA)
274
263
+3.9%
+4.2%
India & Middle East**
118
126
-7.0%
-6.6%
SPECIALIZED SERVICES
173
166
+2.2%
+4.9%
TOTAL
1,352
1,271
+6.2%
+6.4%
* Digital Integrated Business Services ** Ex-Intelenet
operations in the Middle East
APPENDIX 2 – SIMPLIFIED CONSOLIDATED FINANCIAL
STATEMENTS
CONSOLIDATED INCOME STATEMENT € millions
2020
2019
Revenues
5 732
5 355
Other revenues
9
2
Personnel
-3 846
-3 489
External expenses
-741
-708
Taxes other than income taxes
-26
-22
Depreciation and amortization
-205
-188
Amortization of intangible assets acquired as part of a business
combination
-104
-109
Depreciation of right-of-use assets (personnel-related)
-13
-11
Depreciation of right-of-use assets
-175
-175
Impairment loss on goodwill
-37
-2
Share-based payments
-37
-25
Other operating income and expenses
-2
-7
Operating profit
555
621
Income from cash and cash equivalents
4
6
Gross financing costs
-45
-58
Interest on lease liabilities
-45
-46
Net financing costs
-86
-98
Other financial income and expenses
-2
8
Financial result
-88
-90
Profit before taxes
467
531
Income tax
-143
-131
Net profit
324
400
Net profit - Group share
324
400
Net profit attributable to non-controlling interests
Earnings per share (in euros)
5.52
6,86
Diluted earnings per share (in euros)
5.52
6,81
CONSOLIDATED BALANCE SHEET € millions
ASSETS
12.31.2020
12.31.2019
Non-current assets
Goodwill
2 106
2 340
Other intangible assets
951
1 142
Right-of-use assets
620
689
Property, plant and equipment
569
578
Financial assets
53
57
Deferred tax assets
45
35
Total non-current assets
4 344
4 841
Current assets
Current income tax receivable
105
178
Accounts receivable - Trade
1 307
1 223
Other current assets
197
167
Other financial assets
75
63
Cash and cash equivalents
996
418
Total current assets
2 680
2 049
TOTAL ASSETS
7 024
6 890
EQUITY AND LIABILITIES
12.31.2020
12.31.2019
Equity
Share capital
147
147
Share premium
575
575
Translation reserve
-386
10
Other reserves
2 073
1 836
Equity attributable to owners of the Company
2 409
2 568
Non-controlling interests
0
1
Total equity
2 409
2 569
Non-current liabilities Post-employment
benefits
30
27
Lease liabilities
512
564
Other financial liabilities
2 196
2 083
Deferred tax liabilities
236
278
Total non-current liabilities
2 974
2 952
Current liabilities Provisions
63
32
Current income tax
114
192
Accounts payable - Trade
227
173
Other current liabilities
675
536
Lease liabilities
162
168
Other financial liabilities
400
268
Total current liabilities
1 641
1 369
TOTAL EQUITY AND LIABILITIES
7 024
6 890
CONSOLIDATED CASH FLOW STATEMENT € millions
Cash flows from operating activities
2020
2019
Net profit - Group share
324
400
Net profit attributable to non-controlling interests
Income tax expense (credit)
143
131
Net financial interest expense
34
46
Interest expense on lease liabilities
45
46
Non-cash items of income and expense
608
501
Income tax paid
-179
-155
Internally generated funds from operations
975
969
Change in working capital requirements
14
-148
Net cash flow from operating activities
989
821
Cash flows from investing activities
Acquisition of intangible assets and property, plant and equipment
-258
-252
Proceeds from disposals of intangible assets and property, plant
and equipment
4
Loans repaid
1
1
Net cash flow from investing activities
-253
-251
Cash flows from financing activities
Acquisition net of disposal of treasury shares
-10
Change in ownership interest in controlled entities
-1
-24
Dividends paid to parent company shareholders
-141
-111
Financial interest paid
-37
-41
Lease payments
-212
-208
Increase in financial liabilities
1 333
1 489
Repayment of financial liabilities
-1 103
-1 575
Net cash flow from financing activities
-161
-480
Change in cash and cash equivalents
575
90
Effect of exchange rates on cash held
9
-14
Net cash at January 1st
409
333
Net cash at December 31st
993
409
APPENDIX 3 – 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.
FY 2019 revenue
5,355
Currency effect
-217
FY 2019 revenue at constant exchange
rates
5,138
Like-for-like growth
594
Change in scope
0
FY 2020 revenue
5,732
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.
2020
2019
Operating profit
555
621
Depreciation and amortization
205
188
Depreciation of right-of-use of leased
assets
175
175
Depreciation of right-of-use of leased
assets – personnel related
13
11
Amortization of intangible assets acquired
as part of a business combination
104
109
Goodwill impairment
37
2
Share-based payments
37
25
Other operating income and expenses
2
7
EBITDA before non-recurring
items
1,128
1,138
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.
2020
2019
Operating profit
555
621
Amortization of intangible assets acquired
as part of a business combination
104
109
Goodwill impairment
37
2
Share-based payments
37
25
Other operating income and expenses
2
7
EBITA before non-recurring
items
735
764
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.
2020
2019
Net cash flow from operating
activities
989
821
Acquisition of intangible assets and
property, plant and equipment
-258
-252
Proceeds from disposals of intangible
assets and property, plant and equipment
4
0
Loans repaid
1
1
Lease payments
-212
-208
Financial income/expense
-37
-41
Net cash flow from financing
activities
487
321
Net debt: Current and non-current financial liabilities -
cash and cash equivalents
31.12.2020
31.12.2019
Non-current liabilities
Financial liabilities
2,196
2,083
Current liabilities
Financial liabilities
400
268
Lease liabilities (IFRS 16)
674
732
Cash and cash equivalents
-996
-418
Net debt
2,274
2,665
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.
NB: The Alternative Performance
Measures (APMs) are defined in Appendix 3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210225005831/en/
ANALYSTES ET INVESTISSEURS Relations investisseurs et
communication financière TELEPERFORMANCE Tél : +33 1 53 83 59 15
investor@teleperformance.com
MEDIA Europe Laurent Poinsot – Karine Allouis
IMAGE7 Tél : +33 1 53 70 74 70
MEDIA Amérique et Asie-Pacifique Mark Pfeiffer
TELEPERFORMANCE Tél : + 1 801-257-5811
mark.pfeiffer@teleperformance.com
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