Earnings Call: H2 2019

Feb 20, 2020

Good morning, everybody. It's a pleasure to see you It's almost 8. Unfortunately, we have a pretty dense agenda today, Olivier and I. And so what we are going to do is we are not going to bother you too much with the long story that you have here. We are going to pass very quickly to the presentation to leave time to questions as I will have to leave a few minutes after 9 to catch the train. But Olivier will stay with you as long as you want. Until the last question. So, yes, thank you. So it's a disclaimer. Perfect. Okay. This, you know, it, there is nothing very new except it's a little bit larger and bigger than every single year. The results of 2019 where, of course, a record, we had an organic growth at the double digit organic growth, 5,000,000,000, which is $6,000,000,000. What is important is we increase the margin and that the net profit share of the group. Is at EUR 400,000,000, which means plus 28% versus last year. And we are going to propose to the General Assembly of Shareholder to increase the dividend per share to 2.40, which will mean an increase of the dividend by plus 26% versus last year. So what is the story behind the numbers? The story behind the numbers, if I'm at the right page, yes, it's a very fair thing is that after the acquisition of Intelanet in India, we rolled out all the expertise in knowledge services and in integrating artificial intelligence and robotic process automation. In all our region. From our center of excellence in Mumbai and Delhi, we created a center of excellence in digital integration in Colombia for the LatAm in the U. S, of course, for the English market, And we are in process of doing the same thing in Europe with a little bit delay, but that's there is a full dissemination of the digital integrated with our human solutions, which has helped us to strengthen our offer. Last year, we was a super good year for the employment within this group because we created net 25,000 jobs in 1 year. In different countries, but, it's still very significant. We launched a major, major cyber security program to make sure that the group would be best in class in terms of data security, anti bad actors, And to do that, we benchmark it with the most, advanced cybersecurity companies. And this launch of the Eagle Projectifier, it's going to be in 2 years. But if I remember well, it's it's 1,000,000 more or less? 1,000,000, 1,000,000, 1,000,000, 1,000,000, 1,000,000, 1,000,000, 1,000,000, 1,000,000, 1,000,000 more or less? 1,000,000,000, 50,000,000, 50, 50,000, 50,000,000,000, 50,000, 50, 50,000,000, 50, 50, 50, 50,000,000, 50, 50, 50, 50, 50, 50, 50, 50,000, 50,000, 50, 50, 50 Yes, but I'm sure that at the end, it will be 70%. You know, they always tell you something, and then it's always more. So, we strengthened our top management organization, and you are going to see that later. And we centralized and reinforce said, the reporting of our group corporate social responsibility because in fact, this group has been very much involved in corporate social responsibility way before it was in the fashion. But maybe we did not communicated enough. So now we are going to communicate much more on that. So, what happened, as usual, we got a lot of awards and recognition. So I'm going to pass on that this, the business recognition, then this, the corporate social responsibility recognition, and which I'm going stay for one second, which is the fact that today around the world, 70% of the group employees work in one of our company in one of our subsidiary that has received a best employer of reward with a great place work best on project program, depending on where it exists. And of course, we are going to continue to develop that to reach the 80% and 90% and so on. 2nd, we received for the 6th time in a row the very good certification in the 5 area of social responsibility standards, And finally, we got the, Morgan Stanley composite index in social governance with AAA. Now, let's see what how we did that, which is the strategy, First, we are gradually moving from being a frontal Customer Experience Manager to becoming a leading group in Digital Integrated Business Service. Our unique selling proposition to our clients is to make things simpler, faster, safer, better, more cost effective. Now we do that. Thanks for our footprint, our earlier series, our knowledge services, which are the analytics, the engineer the process engineers and all the business oriented IT solutions. And of course, with the, robotic process automation You are going to see in a future presentation, in future slide, our strategy, I take, I touch And of course, and somebody, made me the observation that it was our 31st quarter growing above 7% organic. Our aim is never to chase the maximum growth or whatever our aim is to which has been in the past and what is going to be in the future is to build a sustainable business model in terms of creation of value for all stakeholders. So we developed an harmonious activity within our world. What are the challenge and opportunities? You know that we are in the world of the digital transformation that impact absolutely every activity sector. We decided to embrace since digital transformation, and this is the purpose of our 600, TAB consultant, T for technology, A for analytics and P for process. And in fact, as we face an end to end more complex demand from our clients, with us from being just a capacity provider to becoming solution designer and these solutions are high grade solutions that integrate the human and their technology. This enlarge our market. Finally, for the M and A, 2019 was a year consolidation and integration after the acquisition of internet in India, that's wet. Better than we could have expected even. So 2020, 2021 are going to be we are the hunting season is open again. And, we are going to look much more for of course, specialized service, higher margin, the large U. S. Market, we still have a love for the U. S. Market. And it's going to happen likely in the next 24 months. So Sorry, actually. So, basically, this slide telling you that from the front of this customer service, we pass to front of this, middle of this, end back office, there is something beautiful to explain that. Recently, I was in Dubai, the team there took me to Abu Dhabi and Tommy Daniel come to see our center in Abu Dhabi and I discovered cover that for Abu Dhabi, we were the unique number for the citizen of Abu Dhabi for the government, the government payers, and anybody who lives in Abu Dhabi, whether you have a problem with the police or whether you need the police, you don't always have a problem with the police. Depends. Whether you need the police, whether, you need the doctor, whether you have an administrative purpose and so on, You call this center, we rewrote to the appropriate service in person, but much more, we make the case management. So we make sure that yield demand has been treated And we close the loop to make sure that you are satisfied with the solution that has been brought. To me, it's a little bit division of what could be such a cheerleader. Today, we are going to embrace our future world. A world of service, and we are here at your service. So Something important in the next slide is maybe the fact that in 2013, we used to make 5 percent of our revenue with, clients coming from the E economy, And in 2019, And what is amazing to understand is that a lot of this company that seems to be magic companies because, you know, they are app companies. You think, oh my god, with a click, I get the solution to my demand. In fact, there is still the real world, and these companies do not have the infrastructure to manage all the frictions of the real world, and we are the solutions to help them to manage what goes beyond the click. So we serve in fact the distributors typically, we help them to grow and to address the friction of the day to day business, and we serve the disrupted by helping them to streamline their process. We do that with a team of, again, 600, tap solution architects. We try to be an easy to work with partner because we are in 80 countries. And so we have the natural partner for the global companies. And by the way, from few years ago, today, 50% of our revenue come from global account. A few years ago, it was 30%. Today is 50%. It's team. We set up the situation faster because we start from green. I mean, it means we start all our implementation matching very quickly the key performance indicators, thanks to the lean fixing my discipline. Safer, this is our focus on cybersecurity, And, thanks to the aggregate mix and our ability to geolocalize the operation were typically most cost effective. The model is very simple. There is the high-tech, which is to have a robust and valuable architecture IT, so no downtime, omnichannel, which means seamless relationship for the customer, whatever the media he choose to contact us, integrating robotic process automation and AI to speed up the process and to reduce the risk of error. Data security and our solution architects. I touch it's our army, and our army of service, we want to make sure that we have the best elements. So to hire the right people, we use predictive models, to train our people instead of using the the boring support of the 20th century. We develop more and more gameification, interactive gameification training, coaching labs, we could explain later on what it is. And we try to manage our people with a purpose, which is instead of managing them on borrowing KPIs, we manage them so as they can reach their maximum bonus and it's a way that that's the TP Global Ecosystem. Our campus, most of the time, absolutely beautiful. They are kind of catered all of the 21st century, beautiful architecture, color, space, a great place to work And we create a kind of multi cultural, a cool environment. All that, you have to manage it with passion for people, which is to have a management that is very, very close to the people who do the service and do a very difficult job to address the irritation of the customers very often. And you need to bring a lot of super, but at the same time, a lot of discipline as a discipline is the statistical discipline of the 6 What is the distribution of the curve of answer? What is the standard deviation? How will we reduce it? 3. The expertise at Teleperformance is tri dimensional, of course, by linear business, Is it sales? Is it customer service? Is it tech support? And so on? By activity sector, if we serve a bank, we have bankers serving a bank. If we serve the travel industry where people who are specializing in the travel industry and so on. Professionals speak to professional. And by the integrating the digital platform as much as we can that's the cybersecurity. So I already told you about it. This is more important. In fact, we have strengthened our corporate management by creating a pack a very, very first line pack of people that you see here, Olivia, you know him. We asked the group and the thing to become the president of transformation of the group, which is the knowledge services, the R and D, the marketing, the Lean Six Sigma, the IT and the IT security. All the central support function of the group are managed by, our friend, defender. Then for the business development, we ask that Eric Dupi who moved from France to the US to be the, global president for the development and he has, of course, his teams by regions. Then the operations for the core business are split because it's very wide. Our split between 2 co chief operational officer, Jeff Balonia, and Agustin Grizendi. Agustin leads everything from LatAm and Europe, and Jeff, everything, which is English in Asia Pac. They are supported by 3, chief client officer, Miranda, who is with Stella performance for 'twenty, something year. Who is based in the U. S. Stephanie, who is based in UK for Europe, and Gustavo, who is based in Bogota, no, in Buenos Aires, excuse me, for LATAM. Gupendar is still for a few months ahead of Teleperformance in India, but is going to be replaced by his number 2 as he is going to have his 2 full hands, more than full with, taking the responsibility of the drive of everything that makes the performance smart and dynamic. And Scott Klein, that many of you know, who is our standing president of our specialized risk base in Monterrey, California. We corporate social responsibility. I know that there are a lot of debate and discussion in the press about that is something that has always been part of our DNA. So we tend in our industry to become the preferred employer on the group market because if we are the preferred employer, we can get the best people, the best resources and at the end of the day, it's a competitive advantage. 2nd, We want to be a force of good, which means that in every community where we operate, we systematic Golly have a positive impact versus this community through citizen of the world and citizen of the planet, typically helping the young kids that have difficulties to go to school or something like that. To go through a scolarization system. I think that we support something like 30 school, 39, okay. All over the world. And cities on the planet is the mobilization of our people to help to fight against the plastic. Finally, again, we always have in mind that our role is to optimize the return of every single stakeholder, which is not always simple because sometimes you play a little bit like, you know, the Chinese plates, but it means of course, our shareholder needs to be satisfied by our dynamic and our results. Our employees need to be satisfied So as to deliver a very good service to the customer, we need to be satisfied. So our clients are satisfied and payers and to our partners, they need to trust us to continue to be a part of our dynamic. Very and I'm done, you know that we upgraded our 2020 objectives in October or November last year. So we stay on that, and we are very comfortable with that. We think that we are going to have an organic growth of at least 7% per year until 2022. We plan to make acquisitions between $250,000,000 to $500,000,000 in revenue. That should take us around EUR 7,000,000,000, and we are going to continue to increase our margin. Having said that, that's all for my part of the presentation, I just would like to add that, yes, we have operation in China. Yes, his operation has seriously impacted. Yes, it's going to have an impact on 2020. Yet we measured this impact. At this time, we think that the impact is going to be less than 1% And at this time, except if something new arrive with the coronavirus, And as you expect, it's going to be less than 1%. It's absolutely within our security line. And so it doesn't change at all our 2020 guidance. When we give a guidance, we always say we give a guidance, but something unknown and that can be negative happen every year. Okay. Now we know, I hope there will not be a second thing, but right now, there is zero reason to change our guidance. Thank you very much, Olivier. Thank you, Daniel. I'm going to be as quick as possible. First of all, you know that we have the privilege, like most of you, to, disclose the IFRS 16 impact this year, as that changed dramatically or figure in 2019 versus 2018. To make it simple, I believe there are four things to keep in mind about 2019 figure. First of all, the growth is the first time that the group has achieved such a growth. We are following the path that we had over the last 2 or years, but now we, we are above the double digit figure close to 11% growth like for like. Secondly, not only we're growing, but we are improving operational results, margin. If you trip out the IFRS 16 impact, you will see that we are going to we have an improve of the operational margin a close to 30 basis points. Lastly, 3rd point, we have also not only an increase in operational result, but also an operational net result. For the first time, we achieved EUR 400,000,000 results. I just want you to remember for those who are following us for some years, we were achieving 200,000,000 net results in 2015. So in 4 years, we have been able to double net result. And lastly, is the last point, which seems to be a little surprising or that seems to increase since we took all the impact of the IFRS 16 rule. But in fact, if you strip that out, so that has decreased by 1,000,000,000 this year. As a whole, as you can see, a very good year. Coming back much more in detail about the sales, you'll see that he, as a sales of the group. So we had to put a change in scopes that you remember that we consolidated Intellinette starting in October last year. So the 9 1st months of the year, we had this impact of Intellinette. And of course, you have the like for like growth that is $480,000,000. I just wanted to wait to stop a minute on this figure. I just wanted to tell this is a net figure. That means that not only we grew, we grew net of that, but the growth of the group is higher than that because during the course of the year, some client has decreased their amounts. There are some changes that have been happening all along the year. So that means that the growth activity of the group is higher than that, but that's a net figure that is shown on this, on this figure. I'm just saying that, but because some time people believe that or objectives are not challenging enough. I just wanted to show that 1,000,000, it's a significant figure to be to be pointed out. It has been said by Daniel, so we continue to diversify our base now the pay TV and telecommunication is less than 20% of our sales. The tenure is increasing each year. The e player, the 21% e player client has been set up, has been presented by Daniel a minute ago. Of course, now 50% of our client are global accounts. That means that we are working with them at least in two countries that change the pattern of the group, and we are more and more global. Excuse me. I see here that there is a mistake, sorry, but 2019 first client is not 6% of our business, but a little bit over 4%. I agree. It's a, it's, if you exclude Long Edge Line, it's a M and D, the group, excuse me. Just a quick word about the revenue. Per for the Q4 and the full year. 2 things to be noted. First of all, the full year figure of 10.6 percent like for like growth, as mentioned earlier on, is probably one of the best figures that has been achieve over the last 12 years of the group. And it has to be noted clearly. More interestingly is to see that the increase that in the specialized service division, that was a question that you had, most of you in the beginning of the year. Now we see that the specialized service is growing, especially in the second half and in Q3 and Q4, again, at the high level. If we move to Q4, you have 8.4% like for like growth made of different stuff, mainly a fantastic growth in Nibel LatAm continue to be, to be sustainable for the last year. There are different evolution on the Iwa CMEA, India and Middle East that I'm going to comment a minute ago. Each of them have a specific issue to be mentioned. Keep in mind that we made a fantastic Q4 last year. Keep in mind that we grew last year in TME about 18% in Q4 that explained partially the performance of 2019. But as a whole, we made a very good quarter the 31st in a row of a growth, which is above 7% or 8% like for like growth. If we move to the margin, of course, 70 basis points of which to make it simple, 40, 40 basis points coming from the IFRS 16 change. And you see that everywhere we are achieving good margin and growing specifically, all along the year. We'll come back in a minute to that. But as a whole, we are just, confirming the growth that we are experiencing of margin in each in each division. Let's move quickly by division. North America, 6% like for like growth with very high comp in Q4. We are making 6% growth in U. S. In Q4. Of course, the global environment in UK is not helping this zone. But finally, we have been able to achieve a very good figure. In term of margin, we are stable despite the fact that we have this issue in UK globally, and we decided to open Japan and get out of the portfolio. So it's a very good performance in for the English world that is picking up again. If we move to Ibero LATAM, I would say little to say 18.5% like for like growth on a full year basis. 22 close to 23 in Q4. I'm not going to comment in detail, but every country in this zone has delivered very good result, whether it's Central America South America or even Spain or Portugal, all of them are doing great. And the margin, if you take out the impact of IFRS 16 is just very good. It's just, of course, taking accounts, ramp ups that are happening in this country. I just wanted you to remind that we made close to 100,000,000 CapEx in this zone with new facilities that have been grown, everywhere in the region. If we move to Europe, 10.2 percent like for like growth, again, a good momentum with client in different country, of course, Greece and Eastern Europe are helping us to grow, of course, icomp in Q4, I mentioned it was 18% growth last year. So of course, it doesn't help for 2019. But as a whole, the growth fantastic, 10.10 more than double digit. And in term of margin, we are progressively continuing the asset was engaged over the last 2 years to narrow the gap versus the other division. And we are now at 8.3%. I just want you to remember that 4 years ago, we were 1% in this zone. Dips, dips difficult to read because you have here 12 months of Tipenia. That was a former business of Teleperformance plus 9 months of, of, of the Accentelenet business. So we have a 13% like for like growth which gathers the 2 approach. And the margin, as you can see, is, is outstanding. Just a point that is to be clear, we decided with the full management of India to reduce it's a decision to reduce the domestic part of some business that we are not delivering the good margins. That explained partially the level of the growth that we achieved in Q4. But it's done for the sake of the business and to improve the margin and to concentrate our results either in 2019, but also starting 2020. Specialized service. I know it was a concern of all of you whether we would be able deliver good growth. So we are back on track. 7.6% like for like growth in, in, for the full year and 9.5% in Q4. Everything is good there either for our long Edge line solution and also for how TLS contact that has been able to develop the added value service to the UK applicants. And of course, there is a sharp increase in margin. Here, I just wanted to stay a minute there, and I'm sure you have noticed that for those who are who are looking to us for for a long time. The 2 made better margin division, meaning Ibero Latam and a specialized service are delivering fantastic figure in term of growth in Q4. Let's move to the Tiara Point, operating profitability little to say that you have not seen already. Here, you have the performance share plan impact and some of the nonrecurring item. We were 5,000,000 at the end of June, so we are now 9. There are 2 or 3 major minor stuffs that are happening there. But so little to say compared to last year, we delivered an operating profit EBIT of 1,000,000, growing by 28.2 percent versus last year. Moving to the earning performance, financial results. Of course, here, you have the impact of AFS 16. And if you strip that out, you will see that we have been able to reduce our financial charge. It would, while in the meantime, on an average basis, the debt has increased, it's because we have been able to take advantage of the level of the rate, especially in euro, and we have been able to decrease the debt, especially as I mentioned earlier on at the end of the year. Second point, which is interest probably for you, is a tax rate that moved from 28% to 24.7% this year. This is due, of course, to 2 things. 1 is India. The other is mainly India and the other in Greece. So we have the reduction in the corporate tax income in India that has a one off effect that will, that is taken here. And it will be a recurring effect in the future, but we believe that the tax rate for 2020 will be much more in the range of 27%, 28% as again. Finally, net profit of 1,000,000, as mentioned a minute ago. So I'm going to give you a word about cash flow because I know all of you are very interested to that and say, okay, Telep performance has should have delivered a better cash flow. So we are 321,000,000. And why? It's because of the working capital, it's difficult to grow so quickly and not to have a money kept in your balance sheet. Just to give you an example, we have grown 1,000,000 in the Q4 versus last year. A sneak and part of it has been done in December, much more than last year, and especially in LatAm, So where the DSO is longer than elsewhere in the group. So that is the reason of this surge in working capital, which is for me a good news somewhere. Just for you to know, and I'm speaking out of the control of the financial teams at this year, we have collected more than 50,000,000, close to 50,000,000 in working cap, we have already a positive inflow of working cap of 1,000,000 in January. So the money is back. So don't be, don't be afraid by that. Finally, as you see, the net capital expenditure is under control, 4.7%, while we have significantly more workstations that we had last year. We had 23,000 versus $24,012 last year. So we have been able to control to monitor our capital expenditure across. Balance sheet, I'm not going to spend some time. Just a word about, as a net debt, as I told you, we have been able to reduce our debt if you take out the IFRS 16 impact from $2,100,000,000 to 1.9 Of course, there is a net free cash flow of 321. Financial investment is mainly some buyback of minority shareholder paid the dividend hopefully. And on top of that, you have the IFRS impact of 1,000,000 that inflate artificially's net debt to 1,000,000,000. If you take that, I would say, a pro form a debt to EBITDA show has moved from 2.6 last year to 2.06 in, by the end of 'nineteen. Finally, I'm not going to belong on debt, but I hope we will be able to reduce again this level of cost of debt to below 1.5 this year. And we propose a stable payout ratio of 35 percent, meaning a dividend per share of 2.4 as mentioned by Daniel. Finally, confirmation of the 2020 outlook, at least like for like growth 7% and plus ten basis points in the margin. That's what I can tell today. Let's Thank you very much. We are open to your question. Mr. Groussom. So good morning, Patrick Groussom, Societe Generale. I have two questions, please. First question on coronavirus. Could you give us more, more, let's say, more details, maybe number of people in China, revenue in China, and things like that? And my second question is about M and A. You say M and A probably in 2020, 2021. A few months ago, it seems to me that it was more 2020. So what does it mean? Does it mean that you have missed some deals recently or can you explain? And third, could you give us example of how you leverage Intellinett INDPO solutions to your base of clients, please. Okay. Very quickly, coronavirus is you know what the Chinese government said, stay at home. If you went outside of your city for the Chinese New Year, don't come back. If you were away from Beijing, staying guaranteed for 14 days, And the operation to operate right now in China, we need to get the approval of the city authorities, city by cities. And like everything in the kingdom of the Mandarines, it's never just straight and simple. But at the same time, the Chinese government, making these smart decisions said you don't come to home, but the companies are going pay you your salary. So we pay the salary, but the people are not working. So that's the reason why it's going to impact. We measured this impact. And if the situation stabilize and decrease like it's seems it's happening. The negative impact that we would have had end of January, all February, beginning of March, will absolutely not change our guidance. If we discover that after China, it's India and Egypt that is impacted the same way. We will come back and tell you another story. I think nobody can say more about the coronavirus. The M and A You are an expert in reading in between the lines. No, there was nothing changed. We are at work, as usual, but you know, when you're at work, you don't decide all the time, when the work is going to be finished. It depends also on the sun and of the rain. Example of clients with the acquisition of Eleonette, it's all over the place. It's a transformation It's all over the place. There are dozens dozens of projects that are transforming into hybrid solutions, that, helped us to really address the concern of all our big clients, which is how I can do faster, simpler, better, and more cost effective. Really if one acquisition one acquisition that we did in the past was fantastic for the group who was course, language line solution. But if one acquisition has been a transforming factor for the group, it has been the acquisition of ALS. And you see also an element of that in the positioning, the new positioning of Group Anderson, comes as a global president for the world for anything that is business transformation including knowledge services, IT, AI, and so on. Okay. Thank you very much. I only work do you plan to put in during 2020? And will it be similar in geography distribution? I'm not going to give you the exact numbers because that would put us too much within a frame, within a box. But typically, Yes. We add a momentum in LatAm in 2019. And this momentum is continuing strong. They will be probably more CapEx and it's more refreshing and renewing of CapEx in the U. S, because we are transforming also our, I would say traditional setting of the US to give it a better 21st century, it's 21st century, fresh look and feel. Yes, yes, we are going to effectively invest on top of Viberal Latam, also in U. S. In Philippines. In South Africa. So So, can you talk a bit more about the big pipeline, especially on service? Can you kindly break out the growth between NLS and TLS? First, the specialized services are really 2 different things because language line services are 30,000 clients. So it is on the kind of leading dynamic because we are number 1 on the U. S. Smart at for online depreciation over the phone or via video. There is a strong the second thing, and I would say in LLS, video is growing very, very fast. We call that our interpreter on wheels because we come with the wheels next to the patients at the hospital and with our iPad and you have sees a very futuristic situation in which you have the doctor, the guy, the person who is in the bed and the interpreter in the tree have a nice chat to make sure that the doctor is going to operate the right side of the body? Regarding, TLS, our contracts are comforted and do not see any specific risk in 2020 except that TLS also, as you can imagine, impacted by the coronavirus, because we process the visa for the French government from China right now But typically, the good thing is, February due to the Chinese New Year and January, February, March are not high volume months. Of course, I hope that the great president of the great America is right that the coronavirus is going to die with the sun and the warm because if the coronavirus was still a super big concern and would impact the travels all over the world, during the summer season of the Northern Hemisphere, of course, it would have an impact. Okay? I think you have mentioned a 1% impact on the core scenario. During the earlier part of the presentation, what is at the revenue or EBITA line? It's no, it's at the, it's in that case, it's at the EBITDA line, But it's okay. It's okay. I mean, it was part of the natural maybe we take some question. Yes. Good morning. Christophe Chatfield from ADO. Three questions for me, please. I'd just like to come back on India, the termination of some contracts. Could you tell us what is the sales on an annual basis that you want to, to terminate? Yeah. Terminated. I don't remember. None significant. A couple of dozens of 1,000,000 part, just to be clear, understood. With lower margin, it's very low margin. It's just lower margin. It improved. It's It's just a free up of capacity to get business at better margin on this capacity. So we just natural cleaning, like you clean your covers from time to time? As far as I know, I mean, the business in India, the domestic is, let's say, 150 1,000,000. So you kept at 10% of that or? A little bit more. Okay. Good. The number 2 is on Eagle project. So you give us the number 1000000 to 1000000. Just to be sure, is it CapEx or OpEx? It's mainly CapEx, I assume. And a very basic question for me, please. Is it, I mean, it's it's made for improving the security in house at teleperformance, but could it be as well a kind of leverage on the offer? Absolutely. Oh, thank you for the question. I love this question. I'm going to tell you something. When we decided to do Eagle, we wanted really to benchmark with the cybersecurity team of the best in class in the world. And who are the best in class in the world in terms of data security? Typically, the very large banks because they know that they are the natural target of fraud. So I went to see some of our friends I remember specifically a nice meeting with the CEO at JP Morgan Chase in New York City. And some of our clients have been super nice saying, you know, what we are into this brought all together because, you know, the bad actors, they are the bad actors and it's the fight that exists between the good and the bad in the real world is also existing in the real world. And so they help us to benchmark with their security, data security team, what could be the best practice We took a lot of advice from the most, advanced consultant in the world, specifically, Ian, we worked with super company for the end to end detection point with companies like crowdstrike that you probably have heard about. And so, and we put together comprehensive package of solution, that have, for a result, first to segment our network. So if one part of the network is unfortunately infected. We can immediately close all the doors that go through the other parts of the net work. And so the whole network is not affected because we have some clients with more or less. Critical data and security. Then, but beside that, there are the constant surveillance at all the data and 3 points of anything that is happening there is a, the creation of, 24x7 SOC that monitors, everything at all times, plus, plus or pay plus training, plus, you know, we are an army of 330,000 people. I'm going to start by something super stupid. You have, you, fiscal authorities that says, Hey, you know, we have a problem with your number, and we need to reimburse you a 1,000,000. Please, can you confirm your number? Okay, e, we are never going to do that because we immediately understand that it's fishing. But there are so many people who do not understand and this is the 1st source of data security breach that can cause disaster Every single company is facing that today. The commitment of Teleperformance is to be by the end of 2020, mid 2021 among the very, very best in terms of security. So it becomes a competitive, of course, it becomes the factor, competitive advantage, because in fact, if you go with us, you know that you are not going to have to catch any bad sickness. You reflect to the soft, some soft, so there are some questions there? I'm sorry for the. Nicolas from my first. Thank you for taking my questions. First, on LatAm, I wanted to know, could you give us some idea of the impact of the development of Deeps there and the new greenfield projects you have started there compared to the near shore on impact on the organic growth? Then secondly, how do you address do you have any impacts from the, the political tensions that may have a reason in, in LatAm? And how do you address that risk as it's your now fastest growing region. And then maybe could you give us already an idea of the level of CapEx to sales for next year as you're still investing? So there are a lot of questions about platinum. First, the political risk in LatAm, no, we have not been impacted. 2nd, as usual, the media gives you an image of the reality that is not exactly what's happening in the streets because I can tell you living in Miami when I see paris burning. I don't think that we are in 1944, but I think, you know what? So no, we did not have any impact in LatAm. 2nd, and in Colombia specifically. Yes, it was a little more cost because, you know, we had to buzz our people, which we already do and so on, so but it was okay. 2nd, Colombia is the place that we choose to develop our LatAm Center of expertise In terms of these, we have an extraordinarily strong team there. And developing smart solutions for our clients, including financial decision, that, or travel or e commerce that help us to dramatically develop our business. The driver of the outstanding growth of LatAm has been the main driver has probably been the transformation of our offering of solutions in LatAm. With either with company from LatAm or with, U. S. Companies coming near show, coming near show, but being a very seduced by the added value provided by what we propose. So I would say the outstanding growth of LatAm doesn't come from a super, new attractiveness for the new show that comes directly from the transformation of the offer? You have understood that dips and now cost savings are more and more mixing. And the way to follow that would probably change in the coming months. In fact, Teleper for months is going to become this every way. So Yes. That's what I think, in fact. So it's difficult to isolate what could be understood as dips only. But CapEx, we are going to, to be at least at in the range of 4.5% this year. Except if there are fantastic developments that may occur tomorrow, but probably in this range of 4.5% as we are since the last 4 or 5 years now in a row? The last patient that I see, he referred to some softness in analytics for mixing both the web and CMEA is very simple. You follow the economy. When we speak softness in consumer electronic, it's specifically in Asia Pacific and specifically in China. You all are aware of a little risk regarding Huawei and what it and the consequence it can have on U. S. Companies. And Consumer electronics has not been the most dynamic activity sector of the year 2019. The beauty is, as we serve, all activities sector, you know, some grow less, but some grow more. And at the end of the day, you have a positive average. It's exactly what I mentioned about the 1,000,000 a minute ago. Good morning, Antonio Madre, Ashhes Deslet. 2019 has been a strong year of new contract win with possible to over comment on hunting versus farming during the year on 'twenty and what it could imply in terms of granularity of top line growth quarter after quarter? You are usually cautious at the beginning of the year. So you target above 7% top line growth for the year, but the economical environment plus coronavirus seems to put a bit more pressure this year. How cautious are you this year versus, last We are the same. We do not change promise. We are the same, same rule, same mindset, Let's say that we feel comfortable enough to present these numbers in front of you, except if suddenly something unexpected would happen. This right now that the coronavirus is not something that is going to totally destroy the economy. If in 2 months from now, it would be different. I mean, I have no, I cannot say anything. Just a question about the pass of the year. This 7% could be worked differently than this year. That means that there are some, weight of quarters that may change, knowing that there are some contracts that are, that could ramp up in the Q2 period. That's what I'm telling. I see that people asking whether we could divest in UK business, which have been causing trouble for some time, clearly not. We are not growing dramatically in UK, you have understood, but we are losing money, and we do believe that we are going to come back to a good situation. Yes, in fact, we have to say that in UK, there is a Brexit, but not only the Brexit, I don't like to blame everything on external factor. We also changed the management team of UK, And we have a new management team in UK for now, something like 9 months that is at work And, we are reasonably comfortable that we are going to see an improvement of U. K. In 2021, 2022, 2020 to 2021, 2022. But UK is one of these northern countries where, it's more difficult, to make money than in some other places. Even though UK is a little bit more flexible, than countries that I know in Northern Europe. Just a question about the tax rate. 27 percent, it could be between 27% 28% as a forecast for 2020. That's a question about, can you elaborate on the holding line and the right level of EBITDA generated there? You have to understand that the holding line concentrates some revenue from the Defense Sub, but also some costs. And we tried to control the costs, especially in H2 this year, So it might be, it might continue in 2020, and we hope to be able to continue to support the sub with the same level of cost in the in the holding, taking advantage of the growth of the group. So but it's difficult to predict today. In any case, we hate bureaucracy, we ate everything that comes on all the expenses that are not justified directly by a positive outcome. We look at it extraordinarily closely. So our nature is not to expand the cost of supporting the operation, but to make sure that we support the operation, remaining lean. Are there other questions in the room? Because I have two questions there to answer. So what was the organic growth of Deeps last year? And we answered that somewhere we are going to know more users this approach because the cost service will be deep. What is the content moderation growing at Oh, it's going very fast, but it's still very small in our business. But you know, you see that it's a debate that you have everywhere, whether you are in the U. S. Or whether you are in Europe, you see, what the president of a Facebook sale about the fact that he had 35,000 people in content moderation and that was the max number of people that he would have in Facebook, content moderation is here, is here to be maintained. We are a player into that. But, but along companies like Accenture, WIPO, and many others. Mr. Stanley was raging a lot of question. What is your day? So in LatAm versus Jimmy and you have an average, we are roughly 5 to 10 days more for 2 reasons. 1 is Brazil where people are paying longer. And secondly, we have to get back the VAT credit from the Mexican states at is always longer to get and difficult to predict. As all the cyber investment been expensed so far rather than capitalize and how much will spend in 2020 and in 2021, we don't capitalize any cost for ITs. We are far from doing that. Since very long. We never did that. As far as 2020, cost for, and I'm speaking not of CapEx, but on OpEx, I do believe that you have to take in account 10 basis points versus at the group level that gives you a good idea of what kind of cost could be spent in for Teleperformance Group. I think there is no more question. There is no more question. We wish you all the good And we hope that we will not be so concerned by the coronavirus next time we are going to meet.