EQS-Adhoc: Majorel Group Luxembourg S.A. : Majorel reports strong topline growth of +11% for Q1 2023

THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE MARKET ABUSE REGULATION (EU) 596/2014.

Majorel reports strong topline growth of +11% for Q1 2023

Luxembourg, May 3, 2023: Majorel Group Luxembourg S.A. (Euronext Amsterdam: MAJ) (Majorel,  the Company), a global customer experience (CX) leader, today reports on topline results[1] for Q1 2023.

• Continued topline growth, with group revenue of 541 million, +11% YOY (Q1 2022: 489 million) and net revenue[2] of 535 million, +11% YOY (Q1 2022: 480 million).
• Like-for-like[3] net revenue growth of +15% YOY, adjusted for M&A[4], and COVID-19 related business[5]. The reduction in COVID-19 related business (26 million) was partially offset by the (pro-rata) contribution from last years acquisitions (9 million)[6].
• Maintaining momentum in Q1 2023 with robust net revenue growth across all business Segments:
  • EASA (Europe, Africa, and South America) delivered net revenue of 387, an increase of +9% (Q1 2022: 354 million). Like-for-like net revenue in EASA increased by +14% in Q1 2023;
  • GEMS (Global English, Middle East, and Southeast Asia) net revenue increased by +18% to 118 million (Q1 2022: 100 million);
  • CEA (China and East Asia) delivered net revenue of 29 million, up by +15% (Q1 2022: 26 million).

• Full year 2023 Outlook remains unchanged.

Adjusted for the impact of FX, group revenue growth in Q1 2023 was 11%[7], with an FX impact on group revenue of -0.1% (Q1 2022: +1.6%).

Like-for-like, adjusted for M&A[8] and the decline of COVID-19-related business, net revenue in EASA increased by +14% in Q1 2023. This growth was mainly driven by existing and new clients in Global Internet, and the Utilities vertical, as well as the solid development in our near- and offshore locations in Africa, Eastern Europe, and South America.

Offshore[9]^{represented 42% of net revenue in Q1 2023 (FY 2022: 43%). Net revenue from the Telco sector represented 9% of net revenue (FY 2022: 9%).}

Across all our verticals, we continue to work in true partnership with our clients, both new and existing, and with deep roots built on mutual trust. In Q1 2023, this resulted in net revenue retention[10] (NRR) of 116% (Q1 2022: 116%).

82,000+ team members; 70+ languages; 45 countries; end-to-end CXM; tech-human augmentation; global and local. Majorel: Driven to go further. www.majorel.com

CONTACT

Investor Relations
Michèle Negen
ir@majorel.com

Media Relations
Andrew Slater
media@majorel.com

DISCLAIMER

This announcement is released by Majorel Group Luxembourg S.A. (the Company or Majorel) and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR).

The Companys financial information presented in this announcement has been derived from the management accounts of the Company and are not presented in accordance with IFRS. Such financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing Majorels financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently.

This financial information is subject to updating, revision, amendment, verification, correction, completion and change without notice. It does not purport to contain all information required to evaluate the Company or the Majorel group and/or its financial position. The information does not constitute a recommendation regarding any loans or securities of the Company.

In providing access to this announcement, neither the Company nor any other person undertakes any obligation to provide you with access to any additional information or to update the information as part of this announcement or to correct any inaccuracies in any such information. No representation, warranty or undertaking, express or implied, is made by the Company or any other person as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained therein or any other statement made or purported to be made in connection with the Company or any of the Companys respective affiliates, for any purpose whatsoever, including but not limited to any investment considerations. In addition, no duty of care or otherwise is owed by the Company or any of the Companys respective affiliates to recipients of the information within this announcement or any other person in relation to the information.

This announcement includes forward looking statements. All statements other than statements of historical or current facts contained in this announcement, including statements regarding the Companys future results of operations and financial position, industry dynamics, business strategy and plans and its objectives for future operations, are forward looking statements. These statements represent managements opinions, expectations, assumptions, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. Forward looking statements are often indicated by terms such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "goal," "intend," "look forward to," "may," "plan," "potential," "predict," "project," "should," "target" "will," "would" and/or the negative of these terms or other similar expressions that are intended to identify forward looking statements. The forward looking statements included in this announcement are based largely on Majorels current expectations and projections about future events and financial trends that Majorel believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward looking statements involve known and unknown risks, uncertainties and assumptions that are difficult to predict or are beyond Majorels control, and actual results may differ materially from those expected or implied as forward looking statements. For a detailed description of these factors and uncertainties, please refer to the Risk Factors section of Majorels Prospectus, available at https://www.bourse.lu/issuer/MajorelGroupSA/105258. Majorel undertakes no obligation to publicly update or revise any of these forward looking statements.

Moreover, new risks emerge from time to time. It is not possible for the Companys management to predict all risks, nor can it assess the impact of all factors on Majorels business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward looking statements. In light of these risks, uncertainties and assumptions, the forward looking events and circumstances discussed in this announcement may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward looking statements. Majorel cautions you therefore against relying on these forward looking statements, and Majorel qualifies all of its forward looking statements by these cautionary statements.

The forward looking statements included in this announcement are made only as of the date hereof. Although Majorel believes that the expectations reflected in the forward looking statements are reasonable, it cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward looking statements will be achieved or occur. Neither Majorel nor any other person assumes responsibility for the accuracy and completeness of the forward looking statements. Moreover, neither Majorel nor any other person undertakes any obligation to update any forward looking statement to reflect events or circumstances after the date of this announcement or otherwise. You should read this announcement with the understanding that Majorels actual future results, levels of activity, performance and events and circumstances may materially differ from what Majorel expects.

This announcement does not constitute an offer of securities for sale or a solicitation of an offer to purchase the securities described in this announcement in the United States. In particular, any securities referred to in this announcement have not been and will not be registered under the US Securities Act of 1933 (the Securities Act), or under the securities laws of any state or other jurisdiction of the United States and may not be offered, sold or delivered, directly or indirectly, in or into the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. There will be no public offering of securities in the United States.

NOTES

^[1] All financials are based on preliminary unaudited and non-reviewed management reporting.

^[2] Net revenue for the Group corresponds to revenues as reported in our management reporting less certain direct, order-related external costs which are part of external expenses and costs of materials and consist mainly of cost of services purchased (subcontracted or outsourced services). Net revenue for each Segment corresponds to the according Segment revenues less certain direct, order-related inter-Segment and external costs. Management reporting data excludes revenues from minor activities (primarily the Sonopress Business) outside Majorel Groups core business which are reported in the Condensed Consolidated Interim Financial Statements (the Sonopress Business is defined as certain non-core business activities historically carried out by Arvato de Mexico, S.A. de C.V., which was wound down in 2021). Management believes that the inclusion of supplementary adjustments to Revenue applied in presenting net revenue are appropriate to provide additional information. Management believes that net revenue is a non-IFRS measure representing a core business growth indicator. For more information on the definitions we refer to the Annual Report FY 2022, Chapter 4, Alternative Performance Measures (APMs).

^[3] Like-for-like net revenue growth corresponds to net revenue growth year over year, adjusted for certain specific non-recurring items. For Q1 2023 and Q1 2022, adjustments were made for the reduction in COVID-19 related business and the (pro-rata) contributions of first-time consolidated acquisitions Alembo, Findasense, and IST (excluding the Mayen acquisition already completed in Q1 2022). Management believes that like-for-like net revenue growth is a non-IFRS measure representing a business growth indicator. For more information on the definitions, we refer to the Annual Report FY 2022, Chapter 4, Alternative Performance Measures (APMs).

^[4] The (pro-rata) contribution of the first-time consolidated acquisitions, being Alembo (June 2, 2022), Findasense (September 1, 2022), and IST (December 1, 2022).

^[5] Adjusted for the delta of COVID-19 related business in Q1 2023 versus Q1 2022.

^[6] The COVID-19 related business and the acquisitions of Alembo, Findasense, and IST are fully reported within the EASA Segment.

^[7] Change in revenue at constant currency exchange rates is calculated as current year revenue less prior year revenue at current year exchange rates, divided by prior year revenue at current year exchange rates.

^[8] The (pro-rata) contribution of the first-time consolidated acquisitions, being Alembo (June 2, 2022), Findasense (September 1, 2022), and IST (December 1, 2022).

^{[9]We define Offshore as net revenue from the following countries (even if some local business is included): Armenia, Colombia, Costa Rica, Croatia, Egypt, Estonia, Georgia, Ghana, Greece, India, Ivory Coast, Kenya, Lithuania, Malaysia, Mexico, Morocco, North Macedonia, Peru, Philippines, Poland, Portugal, Romania, Senegal, Suriname, Togo, and Turkey.}

^{[10]Net revenue retention (NRR) for Q1 2023 is defined as net revenue generated by clients in Q1 2023 divided by net revenue generated by the same cohort of clients in Q1 2022 (excluding Alembo, Findasense and IST as well as effects from the ending of the COVID-19 related business). Net revenue retention for Q1 2022 is defined as net revenue generated by clients in Q1 2022 divided by net revenue generated by the same cohort of clients in Q1 2021 For more information on the definitions, we refer to the Annual Report FY 2022, Chapter 4, Alternative Performance Measures (APMs).}