Slide 1: Investor Presentation May 2021
Investor Presentation May 2021
Slide 2: Disclaimer
2 Disclaimer Disclaimers This presentation is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination (the “proposed business combination”) between AgileThought, Inc . (“AgileThought”)
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) 3 Non - GAAP Financial Measures Some of the financial information and data contained in this presentation, such as PF Revenue, PF Gross Profit, PF Gross Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, PF Adjusted EBITDA, PF Adjusted EBITDA Margin, Free Cash Flow Conversion
Slide 4: Table of Contents
Table of Contents 4 Introduction 5 AgileThought Overview 9 Investment Highlights 13 Financial Highlights 27 Benchmarking 34 Appendix 38
Slide 5: Introduction
AgileThought Introduction AgileThought
Slide 6: AgileThought and LIV Capital Acquisition Corp. Presenters
AgileThought and LIV Capital Acquisition Corp. Presenters 6 Manuel Senderos Chairman & Chief Executive Officer (AgileThought) • 20+ years of experience in the technology industry • Founded AN Global in 2000, which eventually became AgileThought • Previously served as Director at Grupo Kuo Jorge Plie
Slide 7: LIV Capital Acquisition Corp. (LIVK) Overview
LIV Capital Acquisition Corp. (LIVK) Overview 7 • LIV Capital Acquisition Corp. (NASDAQ: LIVK) is a blank check company focused on Mexican target businesses or non - Mexican businesses with a significant presence in Mexico • LIVK is backed by the Managing Partners of LIV Capital, one of the leading
Slide 8: Summary Transaction Overview
Summary Transaction Overview 8 (1) Based on a $10.00 share price. Refer to page 9 for further detail. (2) Versus public peer market data as of 3/11/2021. Refer to page 36 for further detail. (3) Assumes no redemptions and includes interest as of May 6, 2021. Actual results may vary. (4) Source of ba
Slide 9: Sources and Uses
Sources and Uses ($ in millions and millions of shares) 9 Note: Excludes impact of warrants distributed to Series A at IPO and Sponsor warrants. (1) Assumes no redemptions and includes interest. Actual results may vary. (2) Certain existing shareholders will convert their second lien convertible not
Slide 10: AgileThought Overview
AgileThought Agile Thought Overview AgileThought
Slide 11: We Innovate, Build and Run the Next Generation Digital Enterprise
We Innovate , Build and Run the Next Generation Digital Enterprise 11
Slide 12: Company Overview
Company Overview 12 AgileThought is a leading provider of enterprise software development and digital transformation services Key Highlights Services Provided • AgileThought is a pure - play digital solutions provider that delivers high - end software development at scale • Offers competitive onshor
Slide 13: AgileThought at a Glance
AgileThought at a Glance 13 $184M+ 2021E Revenue 21% PF 2020A (1) – 2022E Revenue CAGR $77K 2021E Revenue per Billable Employee (4) 33% 2021E Gross Profit Margin 18% 2021E Adj. EBITDA Margin (3) 2,200+ Total Employees (2) 270+ Clients (2) 30+ Clients with Revenue >$1M (5) 85%+ Revenue from Existing
Slide 14: Investment Highlights
AgileThought Investment Highlights AgileThought
Slide 15: Investment Highlights
Investment Highlights 15 2 5 1 Massive $750B+ (1) digital transformation services addressable market with a long runway for high growth 4 3 (1) Source: Gartner estimates for 2022. Pure - play digital transformation provider across the client lifecycle Proven, highly profitable business model with su
Slide 16: Market Opportunity
Market Opportunity 16 AgileThought is addressing the fastest - growing segment of the massive IT Services market Source: Gartner estimates for 2022. Includes digital business model transformation, digital strategy, digital employee experi enc e, digital customer experience and digital technology ser
Slide 17: End-to-End Solution
End - to - End Solution Innovate Strategic Consulting Run Digital Operations Build Digital Delivery 17 Agile & DevOps Coaching Management Consulting Training & Certifications DevOps & Application Optimization Multi Cloud Services Lifecycle Management Support App Engineering & DevOps Advanced Data An
Slide 18: Full-Cycle Digital Transformation Solutions
Full - Cycle Digital Transformation Solutions 18 Embedded with clients, delivering compelling value and sticky relationships Innovate Strategic Consulting Entry at any point along the continuum Increased stickiness Opportunity for upsell Life cycle of continuous refreshes Drives long - term client r
Slide 19: 2021E Revenue Breakdown
Applications 52% Digital Banking 18% Data Analytics & Insights 11% Other 6% Innovate 3% Ops. & Management 6% Managed Cloud Services 4% 19 2021E Revenue Breakdown U.S. 67% Latin America 33% Financial Services 26% Professional Services 28% CPG, Retail & Industrial 15% Healthcare & Life Sciences 20% Te
Slide 20: Delivering Agile / DevOps at Scale
Accelerated Time to Market Increased Collaboration Delivering Agile / DevOps at Scale 20 An Onshore / Nearshore approach is the only way to deliver true Agile and DevOps Agile / DevOps + Onshore / Nearshore Delivery $ Iterative development & innovation Customer - centric Expedited time to market Bet
Slide 21: Differentiated Nearshore / Onshore Delivery Model
COSTA RICA (1%) 20+ consultants (1) San José (1) As of 3/31/2021. (2) Excludes countries with less than 10 employees. (3) Includes employees in Ciudad de México (CDMX), Queretaro, Morelia, Merida, Colima, Guadalajara and Jalisco. (4) Sources: World Economic Forum; UNESCO Institute for Statistics. Di
Slide 22: Well-Positioned to Source Quality Talent from Mexico
AgileThought Top 5 Universities U.S. News Ranking of Top Engineering Schools in Mexico National Autonomous University of Mexico #1 Tecnológico de Monterrey #2 National Polytechnic Institute #4 Universidad Tecnológica de México Universidad del Valle de México Well - Positioned to Source Quality Talen
Slide 23: AgileThought Strategic Growth Plan
23 AgileThought Strategic Growth Plan Expand wallet share by cross - selling within existing clients & new logo acquisitions Strategic approach to M&A with a well - executed M&A strategy AgileThought plans to expand through organic growth, acquisitions and workforce expansion Focus on enterprise bus
Slide 24: Top Clients by 2021E Growth
Top Clients by ´ 21E Growth (1) 2020A (2) 2021E (3) % '21E % of '21E ($M) Growth Revenue Top 10 Clients $77.1 $105.7 37% 57% Top 15 Clients $91.7 $121.1 32% 66% Top 20 Clients $99.4 $128.2 29% 70% $6.5 $7.3 2020A 2021E (1) Clients with over $1M sales in 2020 sorted by highest growth rates for 2021E.
Slide 25: Record Sales Pipeline Supports Growth Acceleration into 2021
$106 $351 Record Sales pipeline supports growth acceleration into 2021 25 Sales opportunity Pipeline has more than tripled in the las 12 Months to a record high of $351M Expected Growth Driven by Increasing the Pie Within Existing Clients (1) Unweighted and includes all stages as of March 2021. 5 Ma
Slide 26: Strategic M&A will Continue to Supplement Strong Organic Growth
26 Strategic M&A will Continue to Supplement Strong Organic Growth The Company has completed 11 transactions and has a proven track record of acquiring and integrating complementary businesses Pipeline of potential opportunities, worth $300M+ enterprise value 10+ Analytics AI & RPA (1) Cloud DevOps
Slide 27: Management Team with Track Record of Execution
Management Team with Track Record of Execution 27 Manuel Senderos Chairman & Chief Executive Officer Federico Tagliani Chief Operating Officer Jorge Pliego Chief Financial Officer Kevin Johnston Chief Revenue Officer Clare Deboef Chief Information Officer Taylor Howard Managing Director, Build Diego
Slide 28: Financial Highlights
AgileThought Financial Highlights AgileThought
Slide 29: Strong Financial Profile
$187 $210 $164 $184 $240 PF 2018A PF 2019A PF 2020A 2021E 2022E Strong Financial Profile 29 ($ in millions) ($ in millions) ($ in millions) Revenue (1) Gross Profit (1) Adj. EBITDA (1,3) Revenue Growth % (1) 20% 12% (22%) 13% 30% Gross Profit Margin % (1) 35% 34% 31% 33% 34% Adj. EBITDA Margin % (1,
Slide 30: 2021 Target Revenue on Track
$34.2 $12 $37 $42 $12 $13 4Q20 Jan-21 Feb-21 Mar-21 1Q21E 2Q21E 126 200 272 1,960 1,932 1,983 2,006 2,132 2,206 2,278 4Q20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 2021 Target Revenue on Track 30 ($ in millions) Quarterly Revenue Build - Up (1) Headcount and Bench – On Track to Support Expansion in
Slide 31: Sales Productivity and Delivery Efficiency Drives Strength
Sales Productivity and Delivery Efficiency Drives Strength 31 ($ in thousands) ($ in millions) Revenue per Billable Employee (1) As Nearshore represents a larger portion of AT’s service delivery resources, gross margins will expand 330+ bps from ’20A to ‘22E Gross Profit by Delivery Model % of Total
Slide 32: Long-Term Goals
Long - Term Goals (1) 32 Revenue Growth 20%+ Gross Margins 35%+ Adjusted EBITDA Margins 20%+ (1) Disclaimer: AgileThought has not reconciled any of the non - GAAP measures referenced above to the most comparable GAAP measures in its long - t erm non - GAAP operating model because certain items are o
Slide 33: Benchmarking
AgileThought Benchmarking AgileThought
Slide 34: AgileThought's Growth & Margins are In-Line with Other Pure-Play Digital Providers
18% 20% 20% 24% 16% 21% 22% 22% 22% 20% AgileThought’s Growth & Margins are In - Line with Other Pure - Play Digital Providers 34 2022E Revenue Growth (1) 2022E Adjusted EBITDA Margin (2) Median: 22% Median: 20% Source: S&P Capital IQ Consensus Estimates as of 3/11/2021. (1) Expected Revenue growth
Slide 35: AgileThought Compares Favorably to Other Pure-Play Digital Providers
$76 $77 $62 $88 $67 95% 87% 79% 86% 87% AgileThought Compares Favorably to Other Pure - Play Digital Providers 35 ($ in thousands) Median: $72 2020A Revenue per Billable Employee (1) Source: Public Filings, S&P Capital IQ Consensus Estimates as of 3/11/2021. (1) Revenue per billable employee is calc
Slide 36: Transaction Value at a ~64% Discount to Pure-Play Digital Providers
2.0x 4.8x 6.6x 6.7x 3.9x AgileThought EPAM Globant Endava Grid Dynamics 2.6x 5.9x 8.0x 8.2x 4.7x AgileThought EPAM Globant Endava Grid Dynamics AgileThought’s Transaction Value is at a ~64% Discount to Other Pure - Play Digital Providers 36 EV / 2021E Sales EV / 2022E Sales Source: S&P Capital IQ Co
Slide 37: Transaction Value at a ~60% Discount to Pure-Play Digital Providers
10.9x 24.4x 32.6x 28.2x 24.7x AgileThought EPAM Globant Endava Grid Dynamics 14.7x 30.7x 40.9x 33.7x 43.4x AgileThought EPAM Globant Endava Grid Dynamics AgileThought’s Transaction Value is at a ~60% Discount to Other Pure - Play Digital Providers 37 EV / 2021E Adjusted EBITDA (1) EV / 2022E Adjuste
Slide 38: Appendix
AgileThought Appendix AgileThought
Slide 39: Digital Transformation Partner of Choice for 20+ Years
Digital Transformation Partner of Choice for 20+ Years 39 2000 2016 2017 2018 2019 2020 2015 2021 Acquired & rebranded as AgileThought to extend footprint in U.S. & enhance software development capabilities Acquired to add U.S. clients, bolster nearshore delivery & deepen healthcare expertise Founde
Slide 40: Strategic Approach to Talent Sourcing and Retention
40 Strategic Approach to Talent Sourcing and Retention Scalable talent acquisition and retention strategy drives efficiency and productivity Talent Sourcing Ongoing Employee Training Culture Drives Talent Retention x Source top talent from emerging markets in the Americas with highly educated techno
Slide 41: Key Strategic Acquisitions
2019 Provider of enterprise software development and transformation services 2018 Application development and nearshore delivery business Key Strategic Acquisitions 41 Strategic M&A will Continue to Supplement Strong Organic Growth Knowledge of consultant methodologies Core customer base Strong empl
Slide 42: Client Case Study: International Financial Services Company
42 Client Case Study: International Financial Services Company Delivering substantial value, building a long - term client relationship > 10 - year tenure Client Overview • Regional subsidiary of an international financial services company that is one of the largest banking institutions in the world
Slide 43: AgileThought Historical and Projected Financial Performance
AgileThought Historical and Projected Financial Performance 43 ($ in millions) (1) 2020A information is based on audited financials. (2) Each of Revenue for 2018, 2019 and 2020, Gross Profit for 2018, 2019 and 2020, and Gross Profit Margin for 2018, 2019 and 2020 are pro forma amounts and are non -
Slide 44: Reconciliation to GAAP Financial Metrics
Reconciliation to GAAP Financial Metrics 44 ($ in millions) 2018A 2019A 2020A (1) PF Revenue PF Revenue $187 $210 $164 Adjustments for acquired businesses (2) (103) (45) - Adjustments for divested or discontinued businesses (3) 27 9 0 GAAP Revenue $110 $174 $164 2018A 2019A 2020A (1) PF Gross Profit
Slide 45: Reconciliation to GAAP Revenue, Gross Profit and Gross Margin
Reconciliation to GAAP Revenue, GAAP Gross Profit and GAAP Gross Margin 45 ($ in millions) 2018A 2019A 2020A (1) PF Revenue $187 $210 $164 Adjustments for acquisitions, divested and discontinued businesses (2) (77) (36) 0 GAAP Revenue $110 $174 $164 PF Gross Profit $66 $72 $51 Adjustments for acquis
Slide 46: PF 2019A to 2020A Revenue & PF Adj. EBITDA Bridges
PF 2019A to 2020A Revenue & PF Adj. EBITDA Bridges 46 Drivers • Lost revenue from delayed or canceled projects and restructured contracts due to COVID • Revenue from projects that ended in 2019A due to normal course business 1 2 ($ in millions) Drivers • Salary decreases, reduction in third - party
Slide 47: PF 2020A to 2021E Revenue Build & Adj. EBITDA Bridge
PF 2020A to 2021E Revenue Build & Adj. EBITDA Bridge 47 Drivers • Revenue retention rates increasing as the impact of COVID lessens • Upselling opportunity increases from 2020 as IT spending becomes less conservative, and clients ramp digital transformation spending to address effects of COVID • As
Slide 48: 2021E to 2022E Revenue Build
2021E to 2022E Revenue Build 48 1 2 3 % of FY’22E Revenue 70% 22% 8% Drivers • Revenue retention rates normalize to pre - COVID levels (80%+) • Taking larger wallet share from enterprise clients (on average, AT is penetrating only 3% of its enterprise clients’ total IT budget) and capturing imbedded
Slide 49: Definitions
Definitions 49 PF Revenue is defined as GAAP revenue plus adjustments for acquired businesses and less adjustments for divested or discontinued busines ses . PF Gross Profit is defined as GAAP gross profit plus adjustments for acquired businesses and less adjustments for divested or discontinued bu
Slide 50: Thank You
AgileThought Thank You AgileThought