Slide 1: Atento Fiscal 2015 Third Quarter Results
Atento Fiscal 2015 Third Quarter Results November 9, 2015 Lynn Antipas Tyson Vice President Investor Relations +1-914-485-1150 lynn.tyson@atento.com
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Atento. The information contained in this presentation is for informational purposes only. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investme
Slide 3: Presenters
Presenters: Alejandro Reynal, CEO Mauricio Montilha, CFO
Slide 4: Strategic Overview and Third Quarter Highlights
Strategic Overview and Third Quarter Highlights
Slide 5: Key Topics
Key Topics Important milestone - one year since IPO. Significant progress made in the execution of our long-term strategy and the strengthening of our competitive position. Measurable and sustained progress against our strategic initiatives through our commitments to growth, best-in-class operations
Slide 6: Quarter Highlights
Quarter Highlights (1) Notes: Unless otherwise noted, all results are for Q3 2015; all growth rates are on a constant currency basis, year-over-year, and exclude Czech Republic that was divested in December 2014. Liquidity defined as cash and cash equivalents plus undrawn revolving credit facilities
Slide 7: Progress Against Long Term Strategy
Progress Against Long Term Strategy Above-Market Growth Best-in-Class Operations Inspiring People ~3.1K+ WS won, ~ 40% with new clients, ~85% with non-telco verticals in 3Q. Penetration of solutions ~24% of revenue, up 140 basis points since beginning of 2014. ~1.3k+ WS won in U.S. nearshore over th
Slide 8: Long Term Strategy on Track
Long Term Strategy on Track Earnings growth High revenue visibility 99%+ revenue retention rate TEF MSA throughout 2021 Multi-pronged growth agenda Share of wallet gains through an increase in higher value solutions New growth avenues: non-TEF telco, financial, US near-shore, and Carve Outs Operatio
Slide 9: Third Quarter Financial Performance
Third Quarter Financial Performance
Slide 10: Consolidated Financial Highlights
Q3 Q3 YTD YTD USDm 2014 2015 2014 2015 Revenue 589.6 476.2 1,743.3 1,507.8 CCY growth (2) 9.4% 10.0% Adjusted EBITDA 88.2 65.8 219.8 186.2 CCY growth 4.2% 10.0% Margin 15.0% 13.8% 12.6% 12.3% Adjusted EPS $0.45 $0.31 $0.84 0.73 CCY growth 35.4% 16.4% Leverage (x) 1.4 1.5 1.4 1.5 Consolidated Financi
Slide 11: Brazil Summary
Brazil Summary Revenue 9.0% growth despite challenging macros. Significant commercial wins: Approximately 1,300 workstations won with new and existing clients. Non-TEF up 16.9% driven by new clients and increased share of wallet with existing clients, particularly in Financial Services. Mix now at a
Slide 12: Americas Summary
Q3 Q3 YTD YTD USDm 2014 2015 2014 2015 Adjusted EBITDA 35.5 28.2 85.2 79.9 CCY growth -3.1% 9.9% Margin 17.4% 14.1% 14.8% 13.6% Margin ex-corp costs allocation 18.4% 15.7% 15.3% 15.0% Adj. EBITDA down 3.1%. Decline in profitability driven by shift in timing of pass through of wage inflation into pri
Slide 13: EMEA Summary
EMEA Summary Revenue Adjusted EBITDA Notes: Unless otherwise noted, all results are for Q3 2015; all growth rates are on a constant currency basis and year-over-year. Revenue growth rates excludes the impact of Czech Republic, which was divested in December, 2014. Key Highlights(1) 8.4% decline in r
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights $MM Leverage of 1.5x. Liquidity of $230MM which includes $174.7MM in cash and cash equivalents and €50MM in undrawn revolving credit facilities. Enhancing Financial Flexibility Q3 2014 Q3 2015 Liquidity(1) 190.7 174.7 Total Debt 673.9 572.7 Net Debt 430.6 398.0 Net Debt / Ad
Slide 15: Reaffirm 2015 Outlook
Reaffirm 2015 Outlook CCY Revenue growth between 6% and 9% Uniquely positioned to acquire new business, grow share of wallet with existing clients, and increase penetration of higher value-added solutions. Adj. EBITDA margin range of 13% to 13.5% Likely at the low end of the range due to increasing
Slide 16: Key Takeaways
Key Takeaways Measurable and sustained progress against our strategic initiatives through our commitments to growth, best-in-class operations, and our people. Macro-economic headwinds are a reality. We are applying our business model to grow market share and achieve the optimal mix of growth, profit
Slide 17: Appendix
Appendix About Atento Financial Reconciliations Debt Information Glossary of Terms
Slide 18: About Atento
About Atento ee.
Slide 19: Differentiated Competitive Advantages
Leader in attractive, high-growth LatAm market. Long-lasting client relationships due to vertical expertise and growing portfolio of services and solutions. Superior pan-LatAm operational delivery platform. Clear strategy for sustained growth and strong shareholder value creation. Experienced, prove
Slide 20: Atento at a Glance
Awarded by the Great Place to Work Institute (“GPTW”) Based on 9M15 revenue of $1,507.8MM; Telefónica and Non-Telefónica revenue based on 9M15 #1 provider of CRM BPO services and solutions in Latin America – $2.3Bn 2014 revenue Founded in 1999 as provider to Telefónica Group; acquired by Bain Capita
Slide 21: Evolution of Leadership Position in LatAm CRM BPO Market
1999 Telefónica call center in Spain and Brazil Flags represent Brazil and Spain. Flags represent Brazil, Spain, Peru, Panama, Guatemala, Morocco, El Salvador, Chile, Colombia, Argentina, Mexico, Puerto Rico, the U.S and Uruguay. (1) 2014 The Leader inpan-LatAm CRM BPO (2) <0.5 2.3 <20k 86k+ ~10% 54
Slide 22: Largest CRM BPO Provider in Latin America
Source: Frost & Sullivan Atento market share position as of 2014 (Management estimate) Market share in terms of revenue Largest CRM BPO Provider in Latin America 2014 CRM BPO market share (%) Mexico 17% Brazil (1) 26% Argentina 20% Chile 25% Peru 34% Colombia 8% Atento #1 market share position (2) A
Slide 23: Long-lasting relationships with market-leading clients
Long-lasting relationships with market-leading clients Client retention based on 2013 revenues of clients retained in 2014 as a % of total 2013 revenues Excludes Telefónica 99% 2014 retention rate (1) 69% of revenue from clients with 10+ year relationship (2) Multi-sector Financial services Telecomm
Slide 24: Services portfolio and multi-channel offerings
Services portfolio and multi-channel offerings have evolved into differentiated, value-added solutions Vertically-driven solutions portfolio Deeply embedded processes Stronger alignment with clients Scalable industry expertise Higher value-add with increased profitability We offer a comprehensive po
Slide 25: Superior pan-LatAm operational delivery platform
Superior pan-LatAm operational delivery platform State-of-the-art technology 0.02% Unscheduled downtime in 2015 YTD Standardized large-scale processes Three Globally connect Command Centers Highly motivated employees Industry leading culture and Globally recognized “Great Place to work” Great Place
Slide 26: Client services and solutions offerings
Client services and solutions offerings Services Solutions 2004 Customer Service Credit Management 2008 Back Office Sales Customer Service Credit Management Complaints Handling Insurance Management Advanced Technical Support Case study: Deep expertise drives increased mix of value-add solutions over
Slide 27: Strategy to achieve Sustained Growth and SHV Creation
Strategy to achieve Sustained Growth and SHV Creation STRATEGIC PILLARS GLOBAL STRATEGIC INTITIATIVES Deliver CRM BPO solutions Aggressively grow client base Penetrate U.S. Near-Shore Above-Market Growth Addressing untapped client growth opportunities and increasing SoW to deliver accelerated growth
Slide 28: Earnings growth
Earnings growth High visibility from retained client base 99%+ revenue retention rate Telefonica MSA throughout 2021 Double down on the above-market growth agenda Drive SoW gains through increased higher value solutions Ongoing materialization of new growth avenues (non-TEF telco, US near-shore, and
Slide 29: Highly experienced management team with strong track record
Highly experienced management team with strong track record Reyes Cerezo Legal and Regulatory Compliance Director 12 years at Atento Iñaki Cebollero Human Resources Director 6 years at Atento Mauricio Montilha Chief Financial Officer Previously at SKY Brazil & Astra Zeneca Brazil Michael Flodin Oper
Slide 30: Atento's Solutions
Atento’s Solutions Smart Collection Solutions to optimize collection/past due payments with specialized process and agents in credit management 100% variable compensation model that rewards efficiency of the agents and process Cost effective channel integration: phone, digital, in-person Collection
Slide 31: Atento's Solutions
Atento’s Solutions B2B Efficient Sales Manages small medium business’ lead generation and process execution Specialized process and agents in sales, process mapping and reengineering Channel integration (adapted for efficiency: phone, digital, back office, in person B2B sales software, multichannel
Slide 32: Financial Reconciliations
Financial Reconciliations
Slide 33: Reconciliations
Q3 2014 Q3 2015 EBITDA (non-GAAP) 77.5 59.4 Acquisition and integration related costs 2.3 - Restructuring costs 2.3 4.1 Sponsor management fees 2.5 - Site relocation costs 0.4 - Financing and IPO fees 3.5 - Asset impairments and Other (0.3) 2.3 Adjusted EBITDA (non-GAAP) 88.2 65.8 Reconciliations Re
Slide 34: Debt Information
Debt Information ee.
Slide 35: Consolidated Debt and Leverage
Consolidated Debt and Leverage $MM Currency Maturity Interest Rate Outstanding Balance 3Q'15 Senior Secured Notes USD 2020 7.375% 295.9 Brazilian Debentures BRL 2019 CDI + 3.7% 172.4 BNDES BRL 2020 TJLP + 2.5% 39.1 SELIC + 2.5% 9.9 4.0% 13.8 6.0% 1.1 TJLP 0.2 CVI ARS 2022 N/A 35.5 Finance lease paya
Slide 36: Glossary of Terms
Glossary of Terms Adjusted EBITDA – EBITDA adjusted to exclude the acquisition and integration related costs, restructuring costs, sponsor management fees, asset impairments, site relocation costs, financing and IPO fees and other items which are not related to our core results of operations. Adjust