TELEPERFORMANCE_Registration_document_2017

RISKS AND CONTROL

2.1 Risk factors

quality of the services delivered to clients, and therefore the Group’s operating profit. In Europe (Continental Europe, Middle East and Africa), the turnover rate is lower than in countries where economic growth is higher and where working conditions are more flexible. In a business sector characterized by high staff turnover, the Group has sought to develop its hiring capacity (employees, executives,betc.) and loyalty programs. The Group is backed by a number of strengths, including its market leadership and ability to offer employees an award-winning work environment, staff benefits, on-the-job training and career prospects within a global Group. Risk identification The departure of certain executive officers could have a negative impact on the Group’s revenue and earnings. In order to protect the Group’s legitimate and best interests, certain Group executive officers are bound by non-compete clauses and undertakings towards the Group. Risk management In order to motivate and retain the key executives and best performing talents within the Group, it introduced performance share plans in April and November 2016, June 2017 and January 2018.

and Chief Privacy Officer, and the regional Senior Vice Presidents heads of Privacy/Data Protection Officers. The main function of this Committee is to evaluate all new and existing technologies prior to deployment to ensure that a Privacy Impact Assessment (PIA) has been completed. This process ensures that Teleperformance evaluates the privacy implications of the technologies we use in collecting or processing data as both a Data Processor and a Data Controller. Teleperformance made a strategic decision in early 2017bto obtain Binding Corporate Rules (“BCRs”) certification. Upon implementation of the BCRs, our subsidiaries will follow them (as both Data Controllers and Data Processors) which will allow Teleperformance to transfer and process data globally. On February, 12 th 2018, Teleperformance obtained the certification of its BCR from the CNIL (French data protection authority) 2.1.1.7 Risks relating to Human Resources, employees and executive officers Risk identification The quality of the Group’s services relies largely on its ability to attract, train, motivate and foster loyalty in the best talents and maintain a level of training aimed at constantly improving its standards. Risk management The staff turnover rate is closely and regularly monitored by the Group. It not only impacts hiring and training costs, but also the 2.1.2.1 Risks relating to growth through acquisition of companies Risk identification Acquisitions form part of the Group’s development strategy. In practice, they may give rise to risks. Risk management The Group has significant experience in carrying out acquisitions. As part of its external growth strategy, Teleperformance takes all steps to identify acquisition targets, in terms of country, product or job synergies, as well as identifying risks associated with these acquisitions. The Group then implements the customary procedures under its consolidation policy for acquired companies. The goodwill shown under the Group’s balance sheet assets is valued every year in order to determine whether it should be written down. The assumptions made in estimating future 2.1.2 General risks

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earnings and cash flows at the time of these valuations may not be confirmed by subsequent actual results. Capitalized goodwill as of Decemberb31 st , 2017bamounted to €1,676bmillion and represents 37% of total assets. Goodwill impairment of €67bmillion was recognized for 2017.

2.1.2.2 Group risks due to foreign operations

Risk identification and management As part of its development and due to the actual nature of its business, the Group carries out a major portion of its business outside France, particularly in emerging markets. Risks inherent to conducting business in these countries, such as social, political and economic instability, late payments or unexpected changes to legislation, can have consequences on the Group’s operations and thus affect its earnings.

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Teleperformance bb - bb Registration documentbb 2017