Teleperformance: Avoiding a value trap: downgrading to Neutral

Research evidence excerpt

Teleperformance: Avoiding a value trap: downgrading to Neutral

Five key charts

Exhibit 1: TP’s share price decline over the past four years has reflected Exhibit 2: Customer operations is one area where Gen AI could drive

both multiple compression and EPS downgrades most of the technology’s impact across corporate use cases

Share price drivers Areas where AI could have the largest impact

Multiple change 500 Software engineering for 80% Sales Momentum - EPS upgrades/(downgrades) 12m corporate IT Marketing

60% Expected EPS growth at start of year Software engineering for Change to average share price YoY 400 product development Customer

40% operations

Product R&D

20% $bn 300

0% Supply chain Impact 200 Risk and

-20% Manufacturing compliance

Finance

-40% 100 Talent and organisation Procurement

Corporate incl HR management

-60% IT Legal

Strategy Pricing 0

-80% 0 10 20 30 40

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Impact as a % of functional spend

Source: BofA Global Research estimates, Bloomberg Source: BofA Global Research, Comparative Industry Service (CIS), IHS Markit; Oxford Economics;

BofA GLOBAL RESEARCH McKinsey Corporate and Business Functions database; McKinsey Manufacturing and Supply Chain

360; McKinsey Sales Navigator; Ignite, McKinsey

BofA GLOBAL RESEARCH

Exhibit 3: Within Core Services, areas like Trust & Safety and Voice-led CX will be progressively under pressure given further AI automation plans at some of

the largest tech/media players

Share of AI utilization at various large tech players

Gartner study - Autonomous resolution of

Today 2029 common service issues

Meta - Trust & Safety content/ads Today End -2026

reviewed by AI

2025 2027

Salesforce - service cases resolved by AI

Salesforce - orgs running AI agents 2025 2026