Teleperformance : February 28, 2017 I 2016 Annual Results

PRESS RELEASE

2016AnnualResults

Another year of growth and margin improvement

for Teleperformance, the worldwide leader in its market Expanding in high-value specialized services

PARIS, FEBRUARY 28, 2017 - The Board of Directors of Teleperformance, the worldwide leader in outsourced omnichannel customer experience management, met today and reviewed the consolidated and parent company financial statements for the year ended December 31, 2016. The Group also announced its financial results for the year.

• Revenue: €3,649 million

  up + 7.4% as reported up + 7.4% like-for-like*

• EBITA before non-recurring items: €408 million

• EBITA margin before non-recurring items: 11.2% versus 10.3% in 2015

• Diluted earnings per share: €3.67, versus €3.45 in 2015

• Dividend per share: €1.30**, versus €1.20 in 2015

• Net free cash flow: €236 million, up + 16.8% on 2015

  SIGNIFICANTLY STRONGER GLOBAL MARKET LEADERSHIP

• Unique global presence in 74 countries

• Continued expansion of the Group's worldwide footprint with the addition of more than 20 000 new workstations, notably in Asia, Latin America and Europe ACQUISITION OFLANGUAGELINESOLUTIONS(LLS)
• Consolidation in the third quarter 2016 of LanguageLine Solutions, the US market leader in online interpreting solutions

• Strong growth in revenue and EBITA margin before non-recurring items for LLS, in line with the Group's expectations

• Creation of a new family of Teleperformance services: the "Specialized services" account for 15% of consolidated revenue***, generating an EBITA margin before non-recurring items of 30%***, and grouping together interpreting services, visa application management services, analytics solutions, and debt collection programs

  2017 OBJECTIVES: CONTINUED PROFITABLE GROWTH

• Like-for-like revenue growth above + 6%

• EBITA margin before non-recurring itemsof at least 13%

• Ongoing strong net free cash flow generation.

*at constant exchange rates and scope of consolidation

**submitted to shareholder approval at the annual general meeting on June 23, 2017

*** 2016 pro forma figure with LanguageLine Solutions consolidated over 12 months

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NB: The consolidated financial statements have been audited and certified1/14

(1)Operating profit before amortization of acquisition-related intangibles, loss of goodwill value and excluding non-recurring items

*submitted to shareholder approval at the annual general meeting on June 23, 2017

Daniel Julien, Executive Chairman, and Paulo César Salles Vasques, Chief Executive Officer, Teleperformance Group, expressed their thoughts on the occasion:

"2016 was an exceptional year for Teleperformance, not only for its very good financial performance in line with its annual objectives, with a + 7.4% growth in its business and a significant increase in its operating margin, but also and especially for the very successful transformational operation carried out last September, namely the acquisition in September 2016 of LanguageLine Solutions, the leading provider of online interpretation solutions in the United States.

This acquisition definitely reflects the Group's strategic decision to develop high value-added specialized services, which combine a dynamic growth profile with high profitability levels. Via its targeted acquisitions, the Teleperformance Group has gradually positioned itself as a world-renowned high-end player in Business Process Outsourcing (BPO).

For 2017, Teleperformance expects to enjoy continued growth in its market and gains in market share thanks to its worldwide leadership position, backed by the ongoing expansion of its global footprint, notably with new contact centers in Asia. The Group will also benefit from the consolidation of LanguageLine Solutions over 12 months. Thus the Group targets like-for-like revenue growth above + 6%, significant improvement in the EBITA margin before non-recurring items to at least 13.0% and ongoing strong cash flow generation.

In the longer term, we reaffirm with enthusiasm, conviction and passion what we announced at our Investor day on January 19th. The growth potential of our two business families in customer experience, core-services activities and high-value specialized services, our differentiating assets combining leadership, people, client centric culture, brain and technology and further targeted acquisitions, allows us to be confident to achieve in 2020 a turnover at least equal to 5 billion euros and a current EBITA margin at least equal to 14%. We thank all our teams who have worked for the success of the group so far and for continuing to contribute to our exciting, value-creating journey."

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NB: The consolidated financial statements have been audited and certified2/14

Consolidated revenue amounted to €3,649 million, representing a + 7.4% increase as reported vs 2015. Reported growth includes the aggregate €114 million positive contribution from LanguageLine Solutions, consolidated since September 19, 2016, as well as a €106 million negative currency effect arising from the decrease against the euro of certain currencies, primarily Latin American currencies such as the Argentine, Mexican, and Colombian pesos, and the pound sterling.

On a like-for-like basis (at constant exchange rates and scope of consolidation), revenue climbed to + 7.4% year-on-year.

The geographic breakdown continued to reflect Teleperformance's unique global leadership position. The English-speaking market & Asia-Pacific region accounted for 47% of consolidated revenue, LanguageLine Solutions - which operates mainly in North America - 3%, the Ibero-LATAM region 24% and Continental Europe & MEA 26%.

Throughout 2016, all of the operating regions reported satisfactory like-for-like growth, above the global market average.

• English-speaking market & Asia-Pacific

  Revenue in the English-speaking market & Asia-Pacific region rose by + 4.5% like-for-like over the full year. On a reported basis, growth amounted to + 1.7%, notably reflecting the significant decline in the pound sterling against the euro in the second half of 2016.

  Regional business was particularly sustained in the healthcare, retail and transportation sectors. Growth was also satisfactory in the financial services and consumer electronics sectors. Teleperformance thus continued to diversify its client portfolio, reducing its dependence on the telecommunications sector (including pay-TV), which currently accounts for less than 30% of the region's revenue stream.

  In the Asia-Pacific region, Teleperformance continued to enjoy robust business growth in China, both with locally based North American multinationals and, most recently, with major Chinese companies in high-growth sectors. Teleperformance opened a new multilingual facility in Kunming in the south of the country, which leverages substantial linguistic resources. The Group now operates out of four strategic locations in China: Beijing, Xi'an, Nanning and Kunming. Business was also strong in India, particularly with large multinationals in a range of sectors.

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  NB: The consolidated financial statements have been audited and certified3/14

• Ibero-LATAM

  Operations in the Ibero-LATAM region expanded at a sustained pace, advancing + 11.3% like-for-like and + 5.9% as reported. The difference was mainly due to an unfavorable exchange rate environment shaped by the decrease in certain Latin American currencies, mainly the Brazilian real and the Mexican, Colombian and Argentine pesos.

  The region's strong growth was driven primarily by a solid performance from operations in Portugal, fuelled by the success of the Lisbon-based multilingual hubs serving major multinationals. This performance also reflected the ramp-up of numerous major contracts signed recently in a variety of industries, such as the sharing economy, retail, IT, leisure, online travel agencies and financial services.

  Growth was also sustained in Colombia, particularly in the transportation and Internet services sectors, as well as in El Salvador and the Dominican Republic in the healthcare, hospitality and pay-TV sectors.

  Business in Mexico expanded at a satisfactory pace over the full year, with a rebound occurring in the second half. The transportation, financial services, consumer electronics and retail sectors made the biggest gains.

  The Group continued to weather the unfavorable economic conditions in Brazil. The transportation, financial services and insurance sectors as well as the consumer electronics sector reported steady growth.

• Continental Europe & MEA

  Regional revenue rose by + 9.5% like-for-like and by + 6.8% as reported.

  This robust growth reflects an ongoing network effect with global clients in several markets, in sectors ranging from consumer electronics and Internet services to retail and financial services.

  The rapid expansion of subsidiary TLScontact, which specializes in face-to-face services, also had a very positive impact on the region's growth.

  The strongest performances were observed in the Middle East - particularly in Egypt and Dubai - where recently opened centers serve major companies in the Internet services and consumer electronics sectors, in Greece, where clients are served by premium multilingual hubs based in Athens, and in Eastern Europe - particularly in Russia, Poland and Romania.

  While their markets remained challenging, Germany and Italy also benefited from a network effect with the Group's global accounts.

• LanguageLine Solutions

For the first time, the Group's revenue includes a €114 million contribution from LanguageLine Solutions. Acquired on September 19, 2016, LanguageLine Solutions is the US market leader in over-the-phone and video interpretation solutions provided to a wide range of organizations in the healthcare, insurance, financial services and government sectors.

The acquisition reinforces and boosts Teleperformance's global leadership as a provider of high-end value-added services, as well as the Group's growth and profitability profile. The company had revenue of US$388 million in 2015.

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NB: The consolidated financial statements have been audited and certified4/14