Teleperformance SE — Interim / Quarterly Report 2009

Aug 31, 2009

Teleperformance

Financial results achieved in the 1st half of 2009

• Revenues: €946.7 million
• Net Operating Profit: €73.4 million
• Net Profit Group Share: €52.8 million
• Free Cash Flow at June 30, 2009: €61 million
• Net Cash Surplus: €37 million

Paris, August 31, 2009 – The Teleperformance Board of Directors met on August 28, 2009 and submitted the consolidated financial statements for the first half of 2009.

In millions of euros	1st half of 2009	1st half of 2008	December 31, 2008 12 months
Revenues	946.7	879.8	1,784.8
EBITDA	109.8	120.4	250.7
Net Operating Profit	73.4	84.6	177.9
Net Profit - Group Share	52.8	54.7	116.4
Internally generated funds from operations	110.0	61.8	166.6
Free Cash Flow	61.0	-58.3	29.4
Total Equity - Attributable to equity holders of the parent	1,076.6	961.2	1,041.8
Net cash surplus	37.0	56.9	17.8

BUSINESS ACTIVITY

The Teleperformance Group's consolidated revenues achieved over the first six months of the financial year 2009 were €946.7 million, versus €879.8 million at the same period last year, increasing by 7.6% based on published data. Excluding foreign exchange and scope of consolidation effects, the Group achieved an organic growth rate of 0.3% over the first six months of the year 2009.

• Revenues may be broken down per region as follows:

					Changes
	JUNE 30,	2009	JUNE 30, 2008		Based on published data	Excluding foreign exchange and scope of consolidation effects
	In millions of euros	Total %	In millions of euros	Total %	%	%
Europe	470.1	49.7	481.7	54.8	-2.4	-1.5
NAFTA*	410.2	43.3	351.1	39.9	+16.8	-3.9
Other	66.4	7.0	47.0	5.3	+41.4	+53.8
TOTAL	946.7	100.0	879.8	100.0	+7.6	+0.3

*NAFTA: North America Free Trade Agreement

• In the NAFTA region, the 16.8% increase in revenues includes the acquisition of The Answer Group.
• In Europe, revenues slightly declined during the second quarter, especially in Northern Europe and France.
• Revenues achieved in the "Other" region -which includes South America and Asia- significantly increased, in particular thanks to the strong development of the Group's operations in South America, and especially in Brazil.
• From a business segment perspective, the Inbound segment overall consolidated over the first six months of 2009, compared to the same period last year.

(in %)	JUNE 30, 2009	JUNE 30, 2008
Inbound services	75	72
Outbound services	21	24
Other*	4	4
TOTAL	100	100

* Mainly standing for market research and training operations

• Overall, foreign exchange effects resulted in a net positive impact of €11.9 million for the first half of 2009.

-	NAFTA	+€30.0 million
-	Europe	-€12.1 million
-	Rest of the World	- €6.0 million

The positive translation effect amounting to €30 million in the NAFTA region may be broken down by major currency as follows:

USD: +€38.8 million Mexican Peso: -€8.8 million

As for Europe and the Rest of the World, the Euro rose against all currencies, with the negative foreign exchange effect mainly resulting from the Pound Sterling and the Brazilian Real.

• In the first half of 2009, the net impact of changes in the scope of consolidation amounted to €52.3 million, including:
• Europe +€8.0 million
• NAFTA +€44.3 million

Such impact mainly resulted from external growth transactions in 2008:

• In Europe: Acquisition of a controlling interest in the GN Research Group, which was consolidated as of July 1, 2008.
• In the NAFTA region: Acquisition of The Answer Group in the United States, which was consolidated as of December 31, 2008.

PROFITABILITY

• The Group's Net Operating Profit amounted to €73.4 million, versus €84.6 million in the first half of 2008. It included a €9 million provision aimed at covering the restructuring operations, which will be carried out in Europe during the second half of 2009. Excluding this item, the Net Operating Profit would amount to €82.4 million as per the objectives announced by the Group during the financial meeting in May.
• EBITDA amounted to €109.8 million, versus €120.4 million in the 1st half of 2008, representing 11.6% of the revenues, versus 13.7% at June 30, 2008.
• In 2009 the net financial result represented a net income of €1.7 million versus a net financial liability of €3.5 million in 2008. It is worth noting the positive impact of the implementation of foreign currency hedging instruments with €3.9 million proceeds, and of the policy initiated by the Group in 2008 to purchase minority interests in Group subsidiaries and which continued during the first half of 2009.
• Income tax amounted to €21.8 million, versus €24.8 million in 2008, that is to say an average tax rate of 29% versus 30.5% in 2008. This lower tax rate may be mainly explained by a decrease in non-tax-deductible expenses in the consolidated financial statements, representing the expenses related to the exercise of bonus shares granted under two share option plans on August 2, 2006 and May 3, 2007.
• The Group's Net Profit amounted to €53.4 million, versus €56.4 million in the first half of 2008. Net Profit, Group Share, reached €52.8 million, versus €54.7 million in the first half of 2008.

FINANCIAL STRUCTURE AT JUNE 30, 2009

Consolidated Financial Structure – Summary (in millions of euros)	June 30, 2009	June 30, 2008	Dec. 31, 2008
Internally generated funds from operations	110.0	61.8	166.6
Change in Working Capital Requirements relating to operations	-13.7	-84.1	-68.4
Net Cash Flow from operating activities	96.3	-22.3	98.2
Net Capital Expenditures (Capex)	-35.3	-36.0	-68.8
Free Cash Flow	61.0	-58.3	29.4
Net Financial Investments	-44.0	+5.0	-140.8
Incl. Acquisition of subsidiary, net of cash acquired	-44.2	+4.4	-141.4
Net Cash Flow from financing activities	-43.7	-29.8	+37.6
Change in cash and cash equivalents	-26.7	-83.1	-73.8
Total Equity	1,079.4	975.6	1,053.7
Attributable to equity holders of the parent	1,076.6	961.2	1,041.8
Net Cash Surplus	37.0	56.9	17.8

CASH FLOW STATEMENT

• Internally generated funds from operations before tax in the first half of 2009 amounted to €121.1 million, remaining stable compared to last year at the same period (€122.2 million at June 30, 2008).

However, operations in the first half of 2009 generated a net positive cash flow of €96.3 million, i.e., a strong increase compared to a net cash deficiency of €22.3 million in the first half of 2008, as a consequence of a buy-out transaction and of the strong organic growth rate in the second half of 2008.

Net cash outflows related to capital expenditures amounted to €35.3 million, i.e., 3.7% of the Group's revenues versus 4.1% in 2008 over the same period last year.

• Free cash flow from operating activities in the first six months of the year strongly increased and eventually reached €61 million.
• Transactions related to changes in the scope of consolidation represented a net amount of €44.2 million. These transactions only involved purchases of minority interests held in various Group subsidiaries.

Cash outflows for the payment of the 2008 dividends (€25 million) and the repayment of financial liabilities (to the extent of €22.4 million) resulted in a €26.7 million decrease in cash assets in the first half of 2009.

BALANCE SHEET

• Total equity, Group Share, amounted to €1,076.6 million at June 30, 2009, versus €1,041.8 million at December 31, 2008.

Such increase resulted from the recognition of the €52.8 million net profit achieved in the first half of 2009 and the 24.8 million dividend payment in June for 2008.

Minority interests represented €2.8 million equity, i.e., a strong decline compared to last year as they amounted to €11.9 million at December 31, 2008. Such decline may be explained by the policy implemented by Teleperformance, which involved the purchase of minority interests in Group subsidiaries. This policy, which was initiated by the Group in 2008, continued in the first half of 2009.

• The net cash surplus increased by €19.2 million and amounted to €37 million at June 30, 2009, versus €17.8 million at December 31, 2008.

Such increase resulted from the following developments:

-	Free cash flow from operating activities	+€61.0 million
-	Impact of minority interest purchases on net financial indebtedness	-€25.8 million
-	Dividend payment	-€25.0 million
-	New finance lease agreements	+€5.1 million
-	Increase in shareholders' equity	+€3.6 million
-	Other	+0.3 million

Net Cash Surplus at June 30, 2009 may be broken down as follows:

In millions of euros	June 30, 2009	Dec. 31, 2008
Cash Assets and Cash Equivalents (a)	246.9	280.6
Loans from financial institutions	144.4	163.1
Debts related to minority interest purchase commitments	9.5	28.1
Bank overdrafts and advances	32.9	42.4
Liabilities related to finance leases	16.7	17.8
Other liabilities	6.4	11.5
Total Financial Liabilities (b)	-209.9	-262.9
Net Cash Surplus (a) + (b)	+37.0	+17.7

The Group's cash assets amounted to €246.9 million at June 30, 2009. The unused revolving credit facility at June 30, 2009 now represents an additional investment opportunity of €212 million.

OUTLOOK

The economic environment remains uncertain and has impacted the volumes of contacts generated by our clients. The results achieved by the Teleperformance Group in 2009 will mainly depend on business volumes outsourced to the Group throughout the fourth quarter in the various regions of the world. Furthermore, the necessary reorganization of our operations in Europe, and especially in France will continue to affect margins during the second half of the year.

As a consequence, Teleperformance is not, to date, in a position to confirm the objectives announced in May for 2009. However, as a result of good levels of revenues and profitability in NAFTA, Latin America and Asia regions, the management of Teleperformance Group is confident in its ability to perpetuate its worldwide leadership in terms of both revenues and profit in 2009.

HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS AT JUNE 30, 2009

The Company announced today that it has published and filed with the Autorité des Marchés Financiers (the French securities regulator) its half-year financial report as of June 30, 2009. It will be available in French and English from August 31, 2009, after market close, on Teleperformance's website, at the following address: www.teleperformance.com

NEXT PUBLICATIONS

SFAF Meeting: November 26, 2009

ABOUT TELEPERFORMANCE

Teleperformance (NYSE Euronext Paris: FR 0000051807), the world's leading provider of outsourced CRM and contact center services, has been serving companies around the world rolling out customer acquisition, customer care, technical support and debt collection programs on their behalf. In 2008, the Teleperformance Group achieved €1.784 billion revenues (US\$2.6 billion – average exchange rate at December 31, 2008: €1 = US\$1.46).

The Group operates about 82,000 computerized workstations, with more than 100,000 employees (Full-Time Equivalents) across 249 contact centers in 47 countries and conducts programs in more than 66 different languages and dialects on behalf of major international companies operating in various industries. www.teleperformance.com

CONTACTS

TELEPERFORMANCE

Michel PESCHARD, Finance Managing Director, Board Member +33-1 55 76 40 80 info@teleperformance.com

LT VALUE – Investors Relations and Corporate Communication

Nancy Levain / Maryline Jarnoux-Sorin nancy.levain@ltvalue.com maryline.jarnoux-sorin@ltvalue.com +33-1 44 50 39 30 - +33-6 72 28 91 44

CONDENSED HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED INCOME STATEMENT - IN THOUSANDS OF EUROS

	1st half of 2009	1st half of 2008
Revenues	946,705	879,799
Other revenue	5,923	13,335
Personnel	-668,481	-624,646
External expenses	-154,574	-138,728
Taxes other than income taxes	-9,441	-8,799
Depreciation and amortization	-34,783	-32,841
Acquisition-related depreciation and amortization of intangible assets	-1,647	-1,428
Impairment loss on goodwill		-1,500
Change in inventory	98	-102
Other operating revenue	8,506	5,717
Other operating expenses	-18,951	-6,164
Profit on ordinary activities	73,355	84,644
Income from cash and cash equivalents	2,672	5,965
Interest on financial liabilities	-4,420	-7,153
Net financing costs	-1,748	-1,188
Other financial income	13,131	3,194
Other financial expenses	-9,637	-5,509
Profit before tax	75,101	81,141
Income tax	-21,750	-24,752
Net profit	53,351	56,389
Attributable to equity holders of the parent	52,787	54,689
Attributable to minority interests	564	1,700
Basic earnings per share (in €)	0.93	0.99
Diluted earnings per share (in €)	0.93	0.97

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS – IN THOUSANDS OF EUROS

ASSETS	June 30, 2009	December 31, 2008
Non-current assets
Goodwill	610,123	591,928
Other intangible assets	46,789	47,213
Property, plant and equipment	190,725	184,898
Financial assets	13,950	13,826
Deferred tax liabilities	7,412	7,535
Total non-current assets	868,999	845,400
Current assets
Inventory	620	520
Current income tax receivable	23,449	37,108
Accounts receivable – Trade	432,998	433,890
Other current assets	92,335	62,790
Other financial assets	10,495	10,518
Cash assets and cash equivalents	246,943	280,642
Total current assets	806,840	825,468
TOTAL ASSETS	1,675,839	1,670,868

LIABILITIES	June 30, 2009	December 31, 2008
Shareholders' equity
Attributable to equity holders of the parent	1,076,649	1,041,806
Attributable to minority interests	2,786	11,877
Total shareholders' equity	1,079,435	1,053,683
Non-current liabilities
Provisions	5,527	5,792
Financial liabilities	37,610	46,822
Deferred tax liabilities	22,101	17,128
Total non-current liabilities	65,238	69,742
Current liabilities
Provisions	28,211	13,782
Current income tax	11,046	20,294
Accounts payable – Trade	71,607	77,217
Other current liabilities	247,975	220,057
Other financial liabilities	172,327	216,093
Total current liabilities	531,166	547,443
TOTAL LIABILITIES	1,675,839	1,670,868

CONDENSED CASH FLOW STATEMENT - IN THOUSANDS OF EUROS

	1st half of 2009	1st half of 2008
Cash flows from operating activities
Net profit – attributable to equity holders of the parent	52,787	54,689
Net profit – attributable to minority interests	564	1,700
Income tax expense	21,750	24,752
Depreciation and amortization	36,430	34,269
Impairment loss on goodwill		1,500
Change in provisions	13,409	7,495
Expense relating to share-based payments	56	4,537
Unrealized gain and loss on financial instruments	-3,997	942
Gain/Loss on disposals, net of tax	508	-7,809
Income tax paid	-11,151	-60,444
Other	-375	192
Internally generated funds from operations	109,981	61,823
Change in Working Capital Requirements relating to operations	-13,641	-84,141
Cash flows from operating activities	96,340	-22,319
Cash flows from investing activities
Acquisition of Intangible assets and property, plant and equipment	-36,136	-37,658
Acquisition of investments in subsidiaries and affiliates	-44,237	-5,948
Loans and advances granted	-941	-2,780
Sale of Intangible assets and property, plant and equipment	802	1,701
Sale of investments in subsidiaries and affiliates	5	10,361
Loans and advances repaid	1,212	3,334
Cash flows from investing activities	-79,295	-30,990
Cash flows from financing activities
Increase in shareholders' equity	3,342	1,385
Acquisition of treasury shares	262	-2,159
Dividends paid to parent company shareholders	-24,808	-24,364
Dividends paid to minority shareholders	-160	-1,679
Increase in financial liabilities	11,347	28,637
Repayment of financial liabilities	-33,751	-31,623
Cash flows from financing activities	-43,768	-29,803
Change in cash and cash equivalents	-26,723	-83,112
Effect of exchange rates on cash held	2,488	-3,727
CASH AND CASH EQUIVALENTS AT JANUARY 1	238,235	318,307
CASH AND CASH EQUIVALENTS AT DECEMBER 31	214,000	231,468

RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2008

Following identification of intangible assets in the process of measuring assets and liabilities of enterprises acquired in 2007, during the second half of 2008, the 2007 financial statements, and those for the six months ended June 30, 2008, have been restated to take account of these intangible assets with effect from the date of acquisition of the companies concerned, with a corresponding reduction in the amount of goodwill initially recognized, and a deferred tax liability.

The impact of these restatements on the financial statements for the six months ended June 30, 2008 is as follows:

BILAN	As reported June 30, 2008	Restatements	Restated June 30, 2008
Equity at December 31, 2007	965,644	- 392	965,252
Translation reserve		53
Net profit, six months ended June 30, 2008		- 907
Equity, at June 30, 2008	976,878	- 1,246	975,632
Income statement
Amortization of intangible assets acquired as part on a business combination	0	- 1,428	- 1,428
Income tax	- 25,272	520	- 24,752
Net profit	55,596	- 907	54,689