TELEPERFORMANCE_Registration_document_2017
COMMENTS ON THE FINANCIAL YEAR
6
6.1 Review of the Group’s financial position and results
6.1.3 Cash flow and capital structure
During the first half of 2017, the Group made a bound issue of €600 million at a nominal interest rate of 1.50%, redeemable in 2024, in order to complete the refinancing of its acquisition of LanguageLine Solutions LLC.
Consolidated financial structure as of December 31 st , 2017
Long-term capital
2017 1,922 1,387 3,309
As of Decemberb31 st (in millions of euros)
2016 1,921 1,688 3,610
2015 1,765
Shareholders’ equity
Non-current financial liabilities
469
Total non-current capital
2,234
short-term capital
2017
As of Decemberb31 st (in millions of euros)
2016
2015
Current financial liabilities Cash and cash equivalents
224 285
261 282
151 257 106
Cash surplus, net of current financial liabilities
61
21
Our main financial liabilities are subject to covenants, which were all complied with as of Decemberb31 st , 2017.
Source and amount of cash flow
2017 574 -58 516 -152
As of Decemberb31 st (in millions of euros)
2016
2015
Internally generated funds from operations Change in working capital requirements Cash flow from operating activities
442
400
17
-9
459
391 -174
Investment and capital expenditure
-1,582
Proceeds from disposals
1
3
12
Cash flow from investing activities
-151
-1,579
-162
Change in equity interest in controlled companies Dividends paid/purchases of treasury stock
-39 -76 -45
-33 -85 -33
-5
-58 -17 -57
Interest expense
Net change in financial liabilities
-293 -453
1,341 1,190
Cash flow from financing activities
-137
CHANGE IN CASH AND CASH EQUIVALENTS
-88
70
92
Internally generated funds from operations amounted to €574 million, versus €442 million in 2016bbecause of growth in business and results. This growth generated a working capital requirement up to €58 million versus a working capital of €17 million in 2016. Net capital expenditure raised to €147bmillion from €190bmillion in the previous year i.e. 3.5% of the revenue vs 5.2% in 2016. In 2016, many investments were committed to create or expand contact centers serving key markets in the Group’s three regions.
Group net free cash flow improved significantly to €324 million from €236 million in 2016, despite the rise in interest paid. After the payment of €75bmillion in dividends, net debt stood at €1,326bmillion at Decemberb31 st , 2017 versus €1,667bmillion the previous year.
Teleperformance bb - bb Registration Documentbb 2017 162
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