TELEPERFORMANCE_Registration_document_2017

RISKS AND CONTROL

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2.1 Risk factors

On the basis of ratings published at the end of January 2018bby COFACE, which constantly monitors the development of emerging countries and releases ratings per country, the Group’s concentration per production region are as follows: ■ 75% of revenue in countries where the situation is regarded as favorable and low-risk or implying acceptable risks; these include major contributors to Group revenue, notably the USA, Philippines and UK. Mauritius joined this category of countries in 2017; ■ 22% of revenue in countries where the situation is uncertain, including Brazil, Tunisia and Turkey; ■ 4% of revenue in countries where economic and political outlook is considered to be very uncertain, notably El Salvador, Algeria and Albania. Risk identification Our top five suppliers account for 14% of Group purchases. These are mainly temping agencies, IT hardware and software suppliers and telephone operators. Risk management The Group considers its risk to be limited, since for a given service or product we contact several suppliers, all leaders in their market. Risk identification The Group operates in a certain number of countries where failure to comply with applicable domestic legislation could expose the Group to legal action by employees or shareholders or an administrative or regulatory authority. In the ordinary course of business, the Group is involved or risks being involved in various administrative or court proceedings. Within the scope of some of these proceedings, monetary claims are made or may be made against the Group. Provisions have been booked for these claims pursuant to IFRS (various provisions totaling €21.4bmillion were booked at Decemberb31 st , 2017). The Group estimates that provisions booked for the risks, disputes and proceedings of which it is aware or that are currently pending are sufficient so as not to affect the Group’s consolidated financial position should the Group experience a negative outcome in any of such cases. Risk management In order to anticipate risks relating to non-compliance with legislative or regulatory changes, the Group’s network of lawyers based in its operating regions tracks changes in legislation and regulations. Legal risks 2.1.2.3 Other risks Suppliers

To the Company’s knowledge, there is not, to date, any other governmental or legal court action or arbitration, apart from what is mentioned in this section and in notebI.5 Litigation to the consolidated financial statements , nor any court action of which the Company is aware that is pending or threatened, that may have or has had a material impact on the financial position or earnings of the Company or Group in the last 12bmonths.

Ethical risks

Risk identification As of Decemberb31 st , 2017, the Group operates in 76bcountries. It operates and develops its business in countries where risk of corruption is considered high. The Group may therefore be exposed to corruption risk with regard to some of its employees or partners, which would affect its reputation. Risk management As part of its operations and whether in relation to purchases or sales, the Group ensures that all acts of corruption are prohibited. These zero-tolerance principles are set out in the guidelines published on its website. Furthermore, in accordance with the French SapinbII law, the Group has developed a corruption risk map, which will be reviewed by the Audit and Compliance Committee. The anti-corruption policy is implemented under the responsibility of the Legalb&bCompliance department. A Code of Ethics covering Teleperformance’s values, as well as the principles for respecting diversity in dealings with third parties with which the Group is involved, was prepared and published on the Group’s website. Risk identification and management Within the normal framework of its business, the Group is involved in a number of employment disputes. In accordance with applicable accounting principles, these disputes are recognized under provisions for risks. These provisions amounted to €11.5bmillion at Decemberb31 st , 2017band mainly concerned disputes with former employees, in particular in Argentina, Brazil and France. In the future, the Group may further restructure or reorganize its business in some countries. These restructuring or reorganization operations may involve closing down or merging sites in order to adapt to the needs of an ever-changing market. Although Group management pays particular attention to such restructurings, they could nevertheless damage the Group’s relationships with its employees, which could lead to employment disputes or, generally, disruptions that might negatively impact the Group’s reputation, revenue, financial position or earnings. Employment risks

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Teleperformance bb - bb Registration documentbb 2017