Teleperformance Ord

Hello, and welcome to the Teleperformance 2024 Third Quarter Revenue. My name is George, and I'll be your coordinator for today's event. Please note, this conference is being recorded, and for the duration of the call, your lights will be in the listening mode. However, you will have the opportunity to ask questions towards the end of the presentation, and this can be done by pressing star 1 on your temple keypad to register your question. If you require assistance at any point, please press star 0, and you will be connected to an operator. The conference will be hosted by Mr. Olivier Rigaudi, Deputy CEO and Group CFO, and Mr. Thomas McDragonbrook, Deputy CEO. And I'd like to have a call over to Mr. Rigaudi. Please go ahead, sir.

Thank you, George. Good evening. Good day to everybody. I know you are from a different place in the world. I'm really happy to present today with Thomas the Q3 figure for 2024 and our nine-month figure. So I'm going to not to bother you with a disclaimer, but I just wanted to, I would say, make it clear that disclaimers are available. What is the agenda today? The agenda will be the following. Thomas is going to join us. Six weeks ago, he's going to give some pre-remark on the highlight, give some information on the business performance, and I will finish with the financial performance. And together, we'll be ready for answering all your questions. Thomas, it's up to you.

Thanks, Olivier, and good evening, everyone, also from my side. A warm welcome to our quarterly update. As Olivier said, it's really great to be back, and I'm looking forward to walk you through the updates on the business side and financial sides in the next hour or so. As I've been now back for six weeks within TP and traveled quite extensively across Europe, North America, and especially Asia, I can really say after all these meetings and visits that that the entire TP team is fully energized and committed in achieving our goals and driving the future development of the business. Yes, the opportunities and challenges are real, but I do believe and I'm very confident that TP is operating from a place of strength and quality. We have built a very resilient global delivery platform backed by incredible people around the world and advanced tech capabilities. and deep expertise. This position, and you will see this now in the falling child, will allow us to be really a net beneficiary in this changing world. I have to say what again and again really impressed me was this incredible enthusiasm that I've seen both from our teams internally and our clients. Inside the company, and you will see this later also in some articles, is that we are really embracing change and new technology, not just in theory, but actually on the ground and in the operations every day. On the client side, I have to say after these last weeks that every conversation I've had so far has reinforced the notion that our clients see us as a trusted company. and reliable partner in their transformation journey, one that can support them not just on their efficiency but also on their quality at the same time. As we move forward, we will continue to leverage vendor consolidation. I feel confident that we are in a good spot to deliver even more complex solutions across the entire value chain. And finally, we had also several conversations with our investors, and I had the chance to connect with many of them during our recent roadshows in the UK and the US. And we're taking your feedback to our heart. Trust us, we will continue to build a leading company in the tech-enabled B2B services space, and change has been a constant for us over the last 46 years and will continue to be so in the future. What does this mean now to our real numbers? And to give you some highlight of what has happened in Q3 2024. We have seen accelerated growth momentum year over year in Q3 with 3% growth, former growth and a reported growth of almost 27%. What's important to note is that we have seen gains across every operating region, our core services, really supported by growth in our key verticals, whether this is banking, retail technology, or travel. And we also have seen a sustained momentum in our specialized services. The Majorelle integration is well on track and in line with our expectation. It's really great to see the teams working together, and we will provide more details about the integration process and the synergies when we publish our annual numbers, as this is just a quarterly update. As you have also seen in our press release at the end of August, the new governance is now in place. And on a personal note, I have to say that the collaboration with Mule Afid and Daniel is really outstanding and it's really a joy to work with them together. Last but not least, our guidance. You see me smiling today. We're very happy to confirm our guidance for 2024. Our performer goal will be Around 2% to 4%, we see margin enhancement and really a sustained enhancement and growth of our net free cash flow. More details will be provided later by Olivier. So that's essentially the highlights for Q3. Before we dive into the details, let me give you some high-level overview, which I think is important to understand what makes us unique. As I said before, we are a digitally integrated B2B services company. We are a transformation partner for more than 1,400 clients worldwide, working directly on the ground to make an impact where it matters most. What's important is that we bring four key elements together that drive these positive business impacts. People, process, technology, and expertise. We are really one of the few truly global large-scale B2B delivery platforms with nearly 500,000 talented team members around the world. And we are proud to bid this talent deeply in our client work. Secondly, process excellence. Delivering results demand process excellence. And for decades, this has been a defining strength of our company. The methodologies, the programs of taps, best and tops ensure that we deliver this progress around our clients in all verticals. Thirdly, technology. Technology was always an integral part of our delivery solutions, but it is not a stand-alone product. It is something that we embed in our processes that allow us to augment and enhance our operations, and we have built an AI-enabled suite of several TP applications that allow us to deliver better results for our clients. And fourthly, domain expertise. Our clients, and we see this in particular today, now for many years, but also in particular in this year, as you will see in a second, look for increasingly specialized complex services. And we believe providing this kind of complex service with our deep client relationships is something that will continue to thrive the business going forward. Let's take a look now what happened along this four dimension in Q3. We have continued to invest in our people. setting up a global firm-wide upskilling program in AI, so on the technology side, but also in AI on the emotional side. By the end of October, we have completed more than 44,000 training programs on both dimensions with our experts around the world, and we will continue to roll out this program in the coming month. Second, processes. The well-established process excellence programs within TP of TOPS and PEST have been updated to include elements of AI and EI in these process excellence programs. The first pilot countries have implemented this. We are refining now the feedback, and we will roll out these programs in the coming month for the rest of the organization. This is something that shows how we hone our process capabilities, embedding new services along the way. Technology. In Q3 alone, we have launched and implemented more than 160 new AI projects for more than 130 clients. This is an incredible Significant upgrade to our developments, what we have seen in the first half of this year, and we continue to invest in this element. In fact, our AI applications are increasingly built on a cloud-based architecture that would allow us to implement them as microservices in our client operations. And lastly, domain expertise. What's interesting to see is that in particular in complex back office related solution, we also saw in the first nine months of this year double digit growth and we will continue to build on this momentum that we see in this vertically integrated end-to-end solutions. How does this performance look now on the development in the different regions? The acceleration in growth year over year in Q3 is across EMEA and APEC as well as across the Americas. As you can see here, for the Q3, we have grown in EMEA, APEC close to 3%, 2.8% to be precise. And also in the Americas, where we see some challenges in the first half of the year, we are back to positive growth of 0.3%. And as you might remember, in our half-year numbers, we saw Americas down by minus 1.7%. This growth is true in particularly for our strong offshore locations like in India, Africa, but also Latin America, as well in our multilingual hubs in EMEA, as well as also in the U.K. Same story is true with specialized services. We see there a sustained growth momentum pretty much in line what we've seen in the first half of this year, around 11% to 12%. And we see some cross-selling activities also between the different specialized services lines that we have in place. Second topic, and we talked about this before, how do we see the vertical development? And here, obviously, a big advantage of teleperformance is a broad, diversified client portfolio. We see a strong development in particular teleperformance. across banking, financial services, retail, technology, travel, and automotive. So it's a wide range of clients who support that momentum, and this is true for EMEA and APEC as well as the Americas. Same element, the resiliency of the businesses, our broad business lines. As I said before, we see very strong growth momentum in particular in specialized services as well as in our BPO solutions. This is true in EMEA and APEC in particular, but also in India where we have a very strong capability in more vertically integrated solution. Our care element, which is a little bit more than 50% of our business portfolio, has grown in the first nine months in line with our overall growth. To give you, as I now spoke about it a bit earlier, What does it mean to build a more complex service landscape for our clients? We brought for this presentation one case example as I visited the operation in India and the Philippines a few weeks ago. And I think it really shows as a good example how we are able to combine domain expertise, strong client partnership with our process now on tech capabilities. This is a large client in the banking space. We have been working with that client now for more than 18 years. Started historically on the traditional front office line in the retail sector, but over the years have expanded our business scope with that client to 14 business line and expanded our geographical scope from one location now to providing services also out of Asia and the Americas. what's interesting is that our process excellence has basically allowed us to gain a broader scope, not just focusing on the front office, but also on complex back office tasks, and provide today an end-to-end customer lifecycle management across accounts, loans, payments, and fraud management. We have also successfully embedded several digital solutions on our process landscape with that client, leading to better outcomes for the clients by enhancing our colleagues with the right tool set, starting from training over operations, knowledge management, and analytics. And this combination of our four elements have really yielded to significant growth in the last years that we also hopefully continue in the future. So with that, I now hand over to Olivier to talk a little bit about our financial performance. Olivier, over to you.