TELEPERFORMANCE_Registration_document_2017

COMMENTS ON THE FINANCIAL YEAR

6

6.1 Review of the Group’s financial position and results

6.1.3 Cash flow and capital structure

During the first half of 2017, the Group made a bound issue of €600 million at a nominal interest rate of 1.50%, redeemable in 2024, in order to complete the refinancing of its acquisition of LanguageLine Solutions LLC.

Consolidated financial structure as of December 31 st , 2017

 Long-term capital

2017 1,922 1,387 3,309

As of Decemberb31 st (in millions of euros)

2016 1,921 1,688 3,610

2015 1,765

Shareholders’ equity

Non-current financial liabilities

469

Total non-current capital

2,234

 short-term capital

2017

As of Decemberb31 st (in millions of euros)

2016

2015

Current financial liabilities Cash and cash equivalents

224 285

261 282

151 257 106

Cash surplus, net of current financial liabilities

61

21

Our main financial liabilities are subject to covenants, which were all complied with as of Decemberb31 st , 2017.

 Source and amount of cash flow

2017 574 -58 516 -152

As of Decemberb31 st (in millions of euros)

2016

2015

Internally generated funds from operations Change in working capital requirements Cash flow from operating activities

442

400

17

-9

459

391 -174

Investment and capital expenditure

-1,582

Proceeds from disposals

1

3

12

Cash flow from investing activities

-151

-1,579

-162

Change in equity interest in controlled companies Dividends paid/purchases of treasury stock

-39 -76 -45

-33 -85 -33

-5

-58 -17 -57

Interest expense

Net change in financial liabilities

-293 -453

1,341 1,190

Cash flow from financing activities

-137

CHANGE IN CASH AND CASH EQUIVALENTS

-88

70

92

Internally generated funds from operations amounted to €574 million, versus €442 million in 2016bbecause of growth in business and results. This growth generated a working capital requirement up to €58 million versus a working capital of €17 million in 2016. Net capital expenditure raised to €147bmillion from €190bmillion in the previous year i.e. 3.5% of the revenue vs 5.2% in 2016. In 2016, many investments were committed to create or expand contact centers serving key markets in the Group’s three regions.

Group net free cash flow improved significantly to €324 million from €236 million in 2016, despite the rise in interest paid. After the payment of €75bmillion in dividends, net debt stood at €1,326bmillion at Decemberb31 st , 2017 versus €1,667bmillion the previous year.

Teleperformance bb - bb Registration Documentbb 2017 162