Convergys Strategic Positioning. Andrea Ayers President and CEO

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Jeremy Morgan
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1 Convergys Strategic Positioning Andrea Ayers President and CEO 1

Large, attractive market Secular trends play to our strengths Winning business model

2 WHY INVEST IN CONVERGYS Market Leader in Customer Management Performance Solid performance Gaining market share Repositioned for improved performance Positioning Large, attractive market Secular trends play to our strengths Winning business model Growth Executing on our plan to gain share Driving higher margins Disciplined capital deployment 2

3 Agenda Performance record Positioning for the future Growth strategy 3

4 Repositioning Convergys for Profitable Growth Prior to 2010 Multi-functional BPO Simplifying structure with singular focus Profitable growth 4

5 Convergys: Profile of a Global Leader Global ranking % of Fortune 50 served Employees worldwide Leader >50% ~75,000 Customer contacts per year >4,000,000,000 Years of positive cash flow 15 5

6 Clearly Recognized As a Global Leader challengers leaders Ability to execute Convergys BPO Employer of the Year 2011 niche players visionaries Completeness of vision 6

7 #1 in United States Customer Management Services US Market Share by Company 7% Top 10 accounted for 43% share of US market in 2011 Source: NelsonHall, August

8 Growing Faster Than Public Peers Convergys FY 12 Guidance Versus US Public Peers in Top 5 Revenue Growth 3 to 4% CVG Peer 1-2 to +2% Peer 2-4% Consensus EBITDA Margin 11.5% 11.8% 9.6% Source: Company filings, First Call November

9 Growing with a Loyal and Expanding Client Base 9

10 Well-Positioned in Key Service Regions Canada 4 contact centers ~1,500 employees United Kingdom 1 contact center ~500 employees Philippines 17 contact centers ~32,000 employees United States 36 contact centers ~27,000 employees Global Headquarters Cincinnati, Ohio, United States Costa Rica 3 contact centers ~2,000 employees Colombia 1 contact center ~1,000 employees India 6 contact centers ~11,000 employees 10

11 CUSTOMER MANAGEMENT Executed Strategy for Profitable Growth 11

CUSTOMER MANAGEMENT Strategy Execution Delivered Successful Outcomes Profitable Growth Strategy Successful Outcomes Expanded global footprint, capability Delivered

12 CUSTOMER MANAGEMENT Strategy Execution Delivered Successful Outcomes Profitable Growth Strategy Successful Outcomes Expanded global footprint, capability Delivered quality, consistent service Strengthened client relationships Increased program retention Gained market share Delivered profitable growth Set for long-term value creation 12

13 CUSTOMER MANAGEMENT and Strong Performance Improvement Customer Management Revenue Growth ($M) Customer Management Margin Expansion (EBITDA %) P Note: Results from continuing operations exclude impairment and restructuring charges. 13

14 Agenda Performance record Positioning for the future Growth strategy 14

15 Well Positioned for the Future #1 Large growing market #2 #3 Positive industry trends Winning business model Sustainable Revenue growth Margin expansion Market leadership Value creation #4 Strong financial position 15

$55 Billion Growing US Market 5-Year Forecast ($B) 4.

16 1. Positioned in a Large, Growing Market Large Worldwide Outsourced Customer Care Services Spend $55 Billion Growing US Market 5-Year Forecast ($B) 4.6% $39 $31 US 56% ROW 44% Source: IDC, May

1. Serving Large Customer Management BPO Verticals 2012

9% 20% % of our Revenue Source: NelsonHall, October 2012;

17 1. Serving Large Customer Management BPO Verticals 2012 Customer Management Services BPO Market Forecast By Vertical ($Billions) Communications Financial Services Technology Other 60% 11% 9% 20% % of our Revenue Source: NelsonHall, October 2012; Other verticals include retail, manufacturing, government, utilities, healthcare, transportation 17

2. Industry Trends Play to Our Strengths Industry Trends Our Strengths

Offshoring Breadth and depth of services comprehensive,

approach strengthens loyal relationships top 10 clients > 10 year

18 2. Industry Trends Play to Our Strengths Industry Trends Our Strengths Increasing call complexity Full lifecycle services Vendor consolidation Offshoring Breadth and depth of services comprehensive, industry-specific integrated technology, analytics Account management approach strengthens loyal relationships top 10 clients > 10 year tenure Global operating model quality and consistent delivery metrics that matter to clients 18

3. Winning Business Model Convergys Strengths Quality Delivery

model Metrics that matter Cost-effective and consistent service + +

19 3. Winning Business Model Convergys Strengths Quality Delivery Comprehensive Solutions Close Client Engagement Global operating model Metrics that matter Cost-effective and consistent service + + Breadth and depth of services Global capacity and work-at-home Analytics and technology Account mgmt. approach Understand unique needs Partner to win more business Combined = Sustained Competitive Advantage 19

COMPREHENSIVE SOLUTIONS: A Closer Look at Our Key Differentiators Services Agents to

Analytics Superior understanding of today s consumer 65,000+ agents around the world

B2C Sales Direct Response B2B Sales/Acct. Mgmt.

Intelligent Self Service, Call Routing, Notification Campaign Management Social

20 COMPREHENSIVE SOLUTIONS: A Closer Look at Our Key Differentiators Services Agents to handle multiple transactions types Technology Innovative contact center technologies Analytics Superior understanding of today s consumer 65,000+ agents around the world Customer Solutions Service Retention Back Office Technical Support Complex Device Support B2C Sales Direct Response B2B Sales/Acct. Mgmt. Collections Quality Assurance Home Agent Technology-enabled solutions Channel Solutions Intelligent Self Service, Call Routing, Notification Campaign Management Social Interactions Lifecycle Solutions Personalized Care Cross-Sell/Upsell Retention Credits 225+ analytics consultants Satisfaction and Loyalty Research Point of sale evaluation Relational Loyalty Segmentation and profiling Customer Experience Consulting Interaction Assessment Repeat Call Analytics Chat Optimization IVR Optimization 20

21 COMPREHENSIVE SOLUTIONS: Broadest and Deepest Set of Solutions Services North America services Multi-shore services Home agent services Technology Global infrastructure Technology-based services Analytics Experience analytics Consulting services 21

22 4. Strong Balance Sheet and Cash Flow Corporate Simplification Strengthened Cash Balance (cash & short-term investments $M) Predictable Free Cash Flow With Operating Cash Flow Exceeding Capex (cumulative $M) ~700 Operating Cash Flow Capital Expenditures Dec '10 Dec '11 Dec '12P P 22

23 Agenda Performance record Positioning for the future Growth strategy 23

24 What Will Drive Profitable Growth 1. Continue to gain market share 2. Pursue selective acquisitions 3. Drive margin expansion 4. Ensure disciplined capital deployment 24

GROWTH DRIVER #1 Grow With Existing and New Clients Close

and consistent delivery improve program retention Gain client

logos proactive versus reactive high-potential verticals

25 GROWTH DRIVER #1 Grow With Existing and New Clients Close Client Engagement Sustain and grow existing programs quality and consistent delivery improve program retention Gain client share win new programs 2/3 remains in-house Pursue select new logos proactive versus reactive high-potential verticals Outsourcing Spend Top 10 Clients In-house Other outsourced share CVG share 25

26 GROWTH DRIVER #2 Pursue Selective Acquisitions Selection Criteria Revenue trajectory Complimentary clients Presence in desired geographies Capabilities clients value Great management team Good price for our shareholders Continue diligent review and valuation of strategic options 26

27 GROWTH DRIVER #3 Drive Margin Expansion Future EBITDA Margin Drivers 13% basis point improvement 2010 Client volume growth Mix shift offshore Productivity gains 2015 Goal 27

28 GROWTH DRIVER #4 Ensure Disciplined Capital Deployment ~$700M Cash and short-term investments Invest in Strategic Growth Return Capital to Investors Build the core Capex 4-5% of revenue annually Acquisitions Selective pursuit of clients, capabilities and countries Dividend Initiated dividend at ~1.5% yield Share buyback $168M remains authorized for repurchase 28

29 Targeting Revenue Growth and Margin Expansion Year Goal Revenue 3-4% CAGR sustained Adjusted EBITDA% ~50+ bps 100+ bps Adjusted EPS ~20% 10%+ CAGR Dividend initiated ~1.5% yield 29

30 WHY INVEST IN CONVERGYS Market Leader in Customer Management Performance Solid performance Gaining market share Repositioned for improved performance Positioning Large, attractive market Secular trends play to our strengths Winning business model Growth Executing on our plan to gain share Driving higher margins Disciplined capital deployment 30

STRATEGY UPDATE 2 MARCH 2016

STRATEGY UPDATE 2 MARCH 2016 Portfolio Focus on Attractive Growth and Margin Opportunities André Lacroix, CEO Intertek Group plc, is today announcing a strategic update outlining the Group s plan to deliver