SUMMARY Q3 2014
CONTACTS
Regina PaolilloEVP, Chief Financial and
Administrative Officer
Email:investor.relations@teletech.com
“Our focus on partnering with clients to
use strategy, analytics and technology to
build meaningful and lasting connections
with their customers is delivering value
and increasingly differentiating us in the
marketplace.”
—Kenneth Tuchman,
Founder, Chairman and
Chief Executive Officer
Bob PinkertonSVP, Corporate
Development
Email:bobpinkerton@teletech.com
Phone:303.397.8863
ABOUT TELETECH
TeleTech, founded in 1982, is a leading global provider of analytics-driven, technology-enabled customer experience
business solutions. The Company offers an integrated platform that combines consulting, technology, care and growth
services to simplify and personalize interactions that build deep engagement between people and brands. This holistic,
multichannel approach improves customer satisfaction, increases customer loyalty and drives long-term profitability and
growth. From strategic consulting to operational execution, TeleTech’s 42,000 employees speaking over 50 languages
deliver results for Global 1000 clients in the automotive, communications and media, financial services, government,
healthcare, technology, transportation and retail industries. For additional information, please visit teletech.com.
INVESTMENT THESIS
TELETECH HOLDINGS, INC.
As of 9/30/2014
NASDAQ ExchangeTTEC
Market Cap (MM)$1,209.0
Enterprise Valuation (MM)
$1,224.6
Q3 Weighted-Average Diluted
Shares Outstanding (MM)49.9
Share Price (as of 9/30/2014)
$24.58
52-Week Range$20.77–$29.97
FINANCIAL METRICS
LTM Q3’14 Revenue (GAAP)
$1,221.7
LTM Q3’14 Diluted EPS (GAAP)
$1.38
LTM Q3’14 Revenue (Non-GAAP)
$1,251.2
LTM Q3’14 Diluted EPS (Non-GAAP)
$1.53
LTM Q3’14 Free Cash Flow (MM)
$52.5
Debt/Total Equity
26%
INDUSTRY
LEADER
ver 31 years of progressive leadership in customer engagement management
•O
eritage of innovation in technology-rich and analytics-driven solutions
•H
alue and outcome-based results (including NPS leadership)
•V
INTEGRATED
OFFERINGS
• Emerging revenue sources through expanded suite of services (26% in Q3’14)
igher value consulting, technology, and growth service offerings
•H
• I ntegrated capabilities creating more strategic long-term partnerships
RECURRING
REVENUE
• High revenue visibility with over 90% client retention levels
• I ncreasing multi-year client engagements (7–18 years with Top 4)
rowing Global 1000 client portfolio among industry leaders
•G
• Significant investment in innovation, operations, leadership and sales
SUSTAINABLE
ontinued early returns through stock repurchase program
•C
VALUE CREATION E xecution of strategic and accretive acquisitions
•
$35
$30
$25
KEY PRIORITIES AND
GROWTH DRIVERS
1. Deliver Profitable Growth
• Expanding integrated global
customer engagement offerings
• Stronger bookings with
improved quality and diversity
2. Increase Market Share
• Accelerate investments in
our vertical and sales
expansion strategy
FINANCIAL
PERFORMANCE
• Industry leading financial performance
• S trong cash flows and balance sheet
djusted ROIC of 25% (as of Q3’14)
•A
3. Increase Investment in
Continuous Innovation
• Stay strategically relevant
and ahead of the needs of
our client base with new
products and services
LEADERSHIP
TEAM
• Deep domain expertise in strategy, analytics, technology and operations
igh-caliber, proven industry leaders
•H
• R esults-oriented thought leadership
4. Execute Acquisitions
• Inorganic growth through
accretive and strategic acquisition
TWO-YEAR TTEC PERFORMANCE
INTEGRATED PLATFORM OF SERVICE AND TECHNOLOGY
$20
One integrated platform that delivers a seamless engagement to the customer and returns measurable
long-term results to our clients.
$15
$10
Paul MillerSVP, Treasurer and Head
of Investor Relations
Email:paulmiller@teletech.com
Phone:303.397.8641
2012
2013
* as of 9/30/2014
** weighted average for Q3 2014
HEADQUARTERS
9197 S. Peoria Street
Englewood, CO 80112
WEBSITE
teletech.com
EMPLOYEES
42,000
CLIENTS
250+
2014
Consulting $55.9M* (5% of Rev)
Technology $145.3M* (12% of Rev)
Using proprietary methodologies, we help clients understand the economic value of an exceptional customer
experience and build the roadmap to deliver it.
• Customer Experience Strategy
• Operations and Technology
• Learning Innovation
• Customer Intelligence Analytics
• Change Management
Technology has the power to give customers what they
want: a seamless experience. We provide the tools and
best practices to deliver it anytime, anywhere and on
any device.
• Multichannel Communications
• CRM, Social, and Knowledge
• InterApp: Next Generation
Customer Experience Platform
Care Services $904M* (74% of Rev)
Growth Services $116.4M* (9% of Rev)
Every time a customer interacts with a company it is an
opportunity to build long-term value and enhance the
brand. We bring the people, processes and technology
together to make sure that happens.
• Customer Care
• Technical Support
• Talent Optimization
• Contact Center Analytics
• Multichannel Communications
Engagement is the path to revenue growth. We guide the
way with analytics, technology and sales acumen.
• Integrated Sales and Marketing Platform: Revana AQ360SM
• Digital Demand Generation
• Lead Nurturing and Qualification
• Acquisition Sales, Growth and Retention
• Sales Advisory Services
• Sales and Marketing Analytics
* Financials based on a LTM GAAP revenue basis (ending September 2014).
BUILDING SUSTAINABLE SHAREHOLDER VALUE
CA
CIN
G
IO
AT
NS
INV
ES
TIN
G
2011
2012
2013
3
2014E
Adjusted Operating Margin 2011–2014E*
10.0%
9.0%
8.3%
9.0%
8.0%
7.75%–
8.0%
6.0%
Includes
approximately
$9M of
incremental
S&M and R&D
investment
0%
2012
2013
2014E
*Operating margin before asset impairment, restructuring or acquisition-related charges
GUIDANCE
Revenue
Adjusted Operating Margin
2014E
2014E
$1.230B to $1.235B
7.75% to 8.00%
1
SUSTAINABLE
VALUE
CREATION
R
OF ETURN
CAP
I TA L
Leadership,
Sales and
Marketing,
R&D
2
1. Growth and Innovation
2. Incremental Investment
3. Stock Repurchase
4. Acquisitions
ACQUISITIONS ARE FOCUSED ON ENHANCING THE PLATFORM
Company
2011
CORE GROW
INNOVAT TH &
ION
Early Returns Through
Stock Repurchases
4.0%
2.0%
4
IN
C
I N R E M E N TA L
VES
TMENT
$ millions
AN
ER
OM
Integrated Offerings,
Technology Enablement,
Global Expansion
Execute on
Strategic
and
Accretive
Acquisitions
$1,000
$800
FIN
OP
FR
$1,193
OM
$1,163
Includes
estimated
negative Y/Y
impact from FX
translation
of $24M
SH
$1,179
CA
$1,200
$1,230–
$1,235
OM
FR
$1,400
Effectively utilizing our
financial resources to
invest in growth and
value-driven initiatives.
FR
SH
SH
CA
Total Revenue 2011–2014E
ACQUIS
ITIO
NS
GROWTH GOALS
Strategic Fit
Business
Segment
Date of
Acquisition
Peppers & Rogers Group
CX strategy, analytics, tools and transformation
CSS
Nov 2010
eLoyalty
Cisco-based technology design and management
CTS
May 2011
OnState
Cross-channel interactions
CTS
Jan 2012
iKnowtion
CX data-analytics strategy and execution
CSS
Feb 2012
Guidon
CX strategy and process optimization
CSS
Oct 2012
TSG
Avaya-based technology design and management
CTS
Dec 2012
WebMetro
Digital acquisition marketing
CGS
Aug 2013
Sofica Group
Broad European multilingual customer services
CMS
Feb 2014
rogenSi
Leadership and change management consulting
CSS
Aug 2014
Kenneth Tuchman
Founder, Chairman and Chief Executive Officer
Regina Paolillo
EVP, Chief Financial and Chief Administrative Officer
Background
Founded TeleTech in 1982
Background
TriZetto, General Atlantic, Creditek, Genpact, Gartner
Marty DeGhetto
EVP, Customer Care Services
Brian Shepherd
EVP, Customer Strategy Services and Technology
Background
Convergys, American Express, AT&T/American Transtech
Background
Amdocs, DST Innovis, SoDeog, McKinsey & Co.
Keith Gallacher
EVP, Global Markets and Industries
Judi Hand
EVP, Customer Growth Services
Background
Accenture, Cognizant, CSC, HP/EDS
Background
AT&T, Qwest, US WEST
Mark Grindeland
SVP, Chief Marketing Officer
Margaret McLean
SVP, General Counsel and Chief Risk Officer
Background
Wunderman, Digitas, Exchange Partners, mQube, Live Wire Mobile
Background
CH2M HILL, Holme Roberts & Owen (now Bryan Cave llp)
Bob Pinkerton
SVP, Corporate Development
Paul Miller
SVP, Treasurer and Head of Investor Relations
Background
T3 Media, Alpine Access, CSG
Background
J.D. Edwards, Wells Fargo Bank, BONY
This document may include forward-looking statements related to TeleTech’s strategy, operations, market assessment, and financial performance and outlook, which are based on managements’ current beliefs and
assumptions. Such statements reflect managements’ opinions as of this time and TeleTech has no obligation to revise this information as a result of new information that may become available.
For a description of TeleTech’s risk factors, review the most recent SEC filings along with TeleTech’s 2013 Annual Report on Form 10-K. 00025r5 11/14