TELEPERFORMANCE_Registration_document_2017

COMMENTS ON THE FINANCIAL YEAR

6

6.1 Review of the Group’s financial position and results

6.1 Review of the Group’s financial position and results

The accounting principles used by the Group to prepare is consolidated accounts are described in the notes to the consolidated accounts (page 145 of this Registration Document). The preparation of financial statements in conformity with IFRS requires making estimates and assumptions which affect the amounts reported in the financial statement, especially with respect to the following items:

■ provisions for contingencies and expenses;

■ the measurement of intangible assets acquired as part of a business combination; and deferred taxation. The estimates are based on information available at the time of preparation of the financial statements, and may be revised in a future period if circumstances change of if new information is obtained. Actual results may differ from these estimates. ■

■ impairment of intangible assets and goodwill;

■ the estimation of the financial liability connected with price adjustment on purchase commitments tominority shareholders;

6.1.1 Alternative performance measures (APMs)

EBITDA before non recurring items (Earnings before Interest, Taxes, Depreciation and Amortizations) : b 2017 2016 Operating profit 355 339 Depreciation and amortization 164 150 Amortization of intangible assets acquired as part of business combination 87 41 Impairment loss on goodwill 67 0 Share-based payments 24 22 Other operating income and expense 23 6 EBITDA BEFORE NON RECURRING ITEMS 720 558

EBITA before non recurring items (Earnings Before Interest Taxes and Amortizations) : b 2017

2016

Operating profit

355

339

Amortization of intangible assets acquired as part of business combination

87 67 24 23

41

Impairment loss on goodwill

0

Share-based payments

22

Other operatin income and expense EBITA BEFORE NON RECURRING ITEMS

6

556

408

Net free cash flow: b

2017 516 -148

2016 459 -192

Net cash flow from operating activities

Acquisition of intangible assets and property, plant and equipment

Proceeds from disposals of intangible assets and property, plant and equipement

1

2

Financial interest paid/received

-45

-33

NET FREE CASH FLOW

324

236

Net debt : b

31/12/2017

31/12/2016

Non-current liabilities

b

b

Financial liabilities Current liabilities Financial liabilities

1,387

1,688

b

b

224 -285

261 -282

Cash and cash equivalent

NET DEBT

1,326

1,667

Teleperformance bb - bb Registration Documentbb 2017 158