- Employee safety, business continuity for clients and financial strength are top priorities for the Group
- Suspension of the 2020 financial objectives
- Postponement of the Annual Shareholders' Meeting
The global health crisis linked to COVID-19 has led many countries to implement country-wide lockdowns and travel bans. This context has brought the global economy into a phase of systemic crisis. These are extraordinary times.
In view of this exceptional situation, the Group has decided to take all possible measures to ensure, above all, the safety of its employees, the continuity of business for its clients, and its financial strength, following the orders of the authorities in each of the countries where it is present.
Measures to guarantee safety of employees
When the outbreak began in China, Teleperformance immediately set up a Prevention Task Force, an initiative that was recognized by the Foshan, China government as a best practice. The Group has been preparing for the worst-case scenarios since January and took immediate steps to mitigate the threat posed to its employees, now implemented worldwide, with:
- a global COVID-19 Task Force to globally share best Group-wide practices on prevention and awareness;
- social distancing policies, including the deployment of work-at-home solutions;
- regular disinfecting and adequate availability of supplies such as hand sanitizers as well as screening for elevated body temperatures of everyone entering a Teleperformance site;
- strict travel restrictions.
Measures to guarantee business continuity for clients
Teleperformance has implemented many emergency measures, such as work at home activations and digital solutions to guarantee business continuity for its clients, in compliance with the specific security standards and certification requirements in force. Home-based agents have notably been brought online in several Teleperformance locations within weeks of enacting initial safety measures, and this has been particularly successful in China.
With its proximity to its 1,000 clients and its experience of home-based agents in many business sectors worldwide, Teleperformance aims to ramp up home-based workforce at a fast pace in the coming weeks.
Measures to guarantee the Group's financial strength
The Group benefits from a solid financial structure and is taking all necessary measures to minimize the negative effects of this crisis on its profitability and liquidity. The Group's available sources of financing, which are currently being strengthened, are allowing it to cope with the crisis contingencies.
Teleperformance Chairman and Chief Executive Officer Daniel Julien said: "We are strongly mobilized alongside our employees to ensure their protection and security on a daily basis and alongside our clients who are affected by this crisis. At a time of such great human vulnerability, nothing is more important than the well-being of our people. The Group is closely following guidance from world health organizations and the competent local government agencies, and also implementing internal policies that in many cases go beyond the recommendations. In this unique context, our Group is taking every possible step to ensure business continuity and is committed to keep partners, employees, and communities healthy and safe."
He added: "In view of the systemic crisis that we are now starting to experience, our financial objectives of like-for-like revenue growth of at least +7% and of increasing margins in 2020 are no longer relevant and there is no possibility at present of assessing the potential impact of the crisis. We are taking all of the initiatives required to overcome this situation and remain agile and efficient. We will update our outlook as soon as the health and economic environment are more stable."
Suspension of the 2020 financial objectives and postponement of the Annual Shareholders' Meeting
In view of the current situation and given the high level of uncertainty that will weigh on business over the coming months, the Group is suspending the 2020 objectives which had been indicated on February 20 with the release of the 2019 annual results, namely like-for-like revenue growth of at least +7% and an increase in EBITA margin before non-recurring items of at least +10 basis points.
Considering the exceptional context, the Board of Directors of Teleperformance SE decided today to postpone to June 26, 2020 the Annual Shareholders' Meeting initially scheduled on April 16, 2020.
The Board of Directors will meet soon in order to convene this Shareholders' Meeting. The Board reserves the right, due to the evolving nature of situation, to amend the proposed resolutions contained in the preliminary notice published in the Bulletin des Annonces Légales Obligatoires (BALO) no 25 on February 26, 2020 or to propose any other resolution it would consider necessary.
At this stage, the Group does not call into question the payment of a dividend of €2.40 per share for the year 2019.
ABOUT TELEPERFORMANCE GROUP
Teleperformance (TEP ISIN: FR0000051807 Reuters: TEPRF.PA Bloomberg: TEP FP), a leading global group in digitally integrated business services, serves as a strategic partner to the world's largest companies in many industries. It offers a One Office support services model combining three wide, high-value solution families: customer experience management, back-office services and business process knowledge services. These end-to-end digital solutions guarantee successful customer interaction and optimized business processes, anchored in a unique, comprehensive high tech, high touch approach. The Group's 331,000 employees, based in 80 countries, support billions of connections every year in over 265 languages and 170 markets, in a shared commitment to excellence as part of the "Simpler, Faster, Safer" process.This mission is supported by the use of reliable, flexible, intelligent technological solutions and compliance with the industry's highest security and quality standards, based on Corporate Social Responsibility excellence.
In 2019, Teleperformance reported consolidated revenue of €5,355 million (US$ 6 billion, based on €1 $1.12) and net profit of €400 million.
Teleperformance shares are traded on the Euronext Paris market, Compartment A, and are eligible for the deferred settlement service. They are included in the following indices: CAC Large 60, CAC Next 20, CAC Support Services, STOXX 600, SBF 120, S&P Europe 350 and MSCI Global Standard. They have also been included in the Euronext Vigeo Eurozone 120 index since December 2015 and the FTSE4Good Index since June 2018 with regard to the Group's performance in corporate responsibility.
For more information: www.teleperformance.com Follow us on Twitter @teleperformance
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