TELEPERFORMANCE_Registration_document_2017

COMMENTS ON THE FINANCIAL YEAR

6.3 Trends and Outlook

6.2.2.2 Financial result 2017 net financial income amounted to €44.8bmillion, versus €40.6bmillion in 2016, and breaks down as follows:

6.2.2.3 Net profit Underlying earnings before tax came in at a profit of €95.4 million compared to a profit of €63.6bmillion in 2015. After a 2016bincome tax expense of €24.4bmillion (€19.3bmillion in 2016), 2017bresulted in a net profit of €71.3bmillion against a 2016bnet profit of €41.7bmillion 6.2.2.4 Tax result The tax group formed by Teleperformance and its French subsidiaries made a tax profit of €51.7bmillion in 2017. The Company has no more tax losses available for offset against future taxable income as the balance of €2.8 million outstanding at the end of 2016bwas utilized in 2017. In accordance with the provisions of Articleb223bquarter of the French General Tax Code, it is stipulated that the overall amount of costs and expenses falling under the Articleb39bof the French Tax Code amounts to €21,092 for the financial year ended Decemberb31 st , 2017. These costs and expenses represent an income tax amount of €7,262.

2017 37.9 15.5 -3.1 18.5 -24.0 44.8

b

2016 32.6 18.0 -3.8 10.6 -16.8 40.6

Dividends

Net interest income

Net write-offs

Foreign exchange gains and losses Provisions against subsidiaries

TOTAL

Following the remeasurement as of Decemberb31 st , 2017bof its investments in subsidiaries and affiliates, the Company made a provision of €70.0 million on its shares in Teleperformance France and released existing provisions totaling €45.9 million, principally concerning its Spanish and Italian subsidiaries. Inb2017bandb2016, the Company waived receivables due from its subsidiary Teleperformance France concerning intellectual property royalties and management fees, for €2.7bmillion and €3.5bmillion, respectively.

6.3 Trends and Outlook

6.3.1 Outlook Confident about the year ahead, Teleperformance has set the following annual financial targets for revenue and margins:

6

The Group is also confident about its ability to continue to generate a strong level of cash flow during the year, enabling it to pursue its dynamic development strategy while maintaining strict financial discipline.

■ like-for-like revenue growth above +6%;

■ further growth in EBITA margin before non-recurring items to at least 13.5% of revenue

6.3.2 Risks and uncertainties The Group’s business is subject to market risks (sensitivity to economic and financial factors), as well as to the political and geopolitical uncertainties related to its global footprint. A detailed description of these risks is provided in sectionb2.1. Risk Factors of this Registration Document.

Teleperformance bb - bb Registration Documentbb 2017 165