Atento S.A. · OTC:ATTOF
Atento — Q2 2020 Earnings Presentation
17 slides from Atento's earnings presentation, Aug 9, 2020
Slide 1: Atento Fiscal 2020 Second Quarter Results
Atento Fiscal 2020 Second Quarter Results Investor Relations Shay Chor shay.chor@atento.com Fernando Schneider fernando.schneider@atento.com
Slide 2: Forward-looking statements
Forward-looking statements 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 ma
Slide 3: Second Quarter 2020 Key Highlights
Second Quarter 2020 Key Highlights Carlos López-Abadía, CEO
Slide 4: Effective and Timely Response to COVID-19
1 Effective and Timely Response to COVID-19 WAHA 64,000 Recruited, Onboarded and (60% of agents) Initially Trained Online ~80% Delivery Capacity +97.5% 4
Slide 5: Normalized Revenues & EBITDA; Strong Cash Generation
2 Normalized Revenues & EBITDA; Strong Cash Generation Solid Recovery Throughout the Quarter Revenues in Constant Currency EBITDA in Constant Currency +32% EBITDA Margin in Constant Currency Q2 EBITDA vs. LY 2019 2020 Jan/20 Feb/20 Mar/20 Apr/20 May/20 Jun/20 Jan/20 Feb/20 Mar/20 Apr/20 May/20 Jun/2
Slide 6: Solid Commercial Activity
3 Solid Commercial Activity 28% High Growth Industries Sales 20 (6M20) New Clients Pipeline 52% Next Generation Services +30% In 2Q20 6
Slide 7: Three Horizon Plan Driving Higher Performance
4 Three Horizon Plan Driving Higher Performance Multisector Revenue Growing ~2x the market (YoY Growth) +21% (6M20) New-in-Year Revenue 4.6% 8.4% 7.3% 5.2% 5.9% 7.7% +54% 1Q 2019 2Q 2020 6M US Revenue Growth Run Rate EBITDA Margin Growth +3.3pp +3.6pp 15.2% 14.7% Q219 Q220 13.9% 13.8% 14.3% 11.4% 10
Slide 8: New Shareholders Fully Supporting Atento Team
5 New Shareholders Fully Supporting Atento Team • Positioning: Keep positioning Atento as one of the world’s Shareholders’ Structure as of June 30, 2020 most relevant and innovative Customer Experience and BPO providers 7% HPS 25% • Strategy: Significant support of Three Horizon Plan and its executi
Slide 9: Financial Results Highlights
Financial Results Highlights José Azevedo, CFO
Slide 10: Quarter Performance
2Q20 vs 2Q19 Quarter Performance In Constant Currency Progressive improvement intra-quarter drove solid EBITDA recovery Consolidated Revenues EBITDA EBITDA $314.5M Margin -12.1% $22.2M MS +5.2% -33.0% 7.1% 2019 2020 TEF -38.0 % Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jan-20 Feb-20 Mar-20 Apr-20 Ma
Slide 11: Consolidated Revenues
Consolidated Revenues In Constant Currency Further penetrating high-growth verticals Revenue Mix 40.5% 36.7% 35.9% 35.5% +4.5p.p. 21.8% 21.2% Tech +245% 6.6% 2.1% Media & Entertainment +68% Telecom Financial Born-Digital Other 1S2019 1S2020 11
Slide 12: Revenue Mix
6M20 vs 6M19 Revenue Mix In Constant Currency Multisector growth across all regions Consolidated Brazil Americas EMEA 31.8% 22.2% 34.2% 51.7% 29.0% 37.2% 37.9% 39.9% 62.8% 62.1% 48.3% 71.0% 60.1% 68.2% 65.7% 77.8% Multisector Multisector Multisector Multisector +5.4p.p. +6.8p.p. +3.6p.p. +8.4p.p. Mu
Slide 13: Strong Run Rate EBITDA and Margin Expansion
Strong Run Rate EBITDA and Margin Expansion Rapidly overcoming Covid-19 challenge in our markets Impact of EBITDA Growth Pandemic Ex-Covid impact in 2Q20 in 6M20 +36% compared ˜$30M ˜$43M to normalized 6M19 EBITDA Run Rate EBITDA Growth YoY EBITDA Margin Growth 46.4% 29.3% Ex-Covid impact 6.5% 3.3%
Slide 14: New Cost Savings Program
New Cost Savings Program Right-sizing, implementation of shared services, ZBB and WAHA model reducing cost structure Cost Savings Program Annualized Already Cost Savings Implemented 21% ˜$80M ˜$47M 50% 29% Variable Operational Costs SG&A Fixed Operational Costs 14
Slide 15: Positive Cash Flow
Positive Cash Flow From Additional Working Capital Improvements Free Cash Overdue DSO* Cash Flow Collections reduction Capex ˜$44M ˜$10M -4 days 2.7% In 2Q20 In 2Q20 of revenues YTD DPO ˜$27M ˜$30M improvement In 6M20 In 6M20 +13 days (*) Normalized DSO, excluding revenue anticipation and factoring
Slide 16: Strong Liquidity
Strong Liquidity With Leverage Under Control Cash and Cash Equivalents Net Debt $207M $526M ~$80 million from existing revolvers -8% vs 2019 Debt Payment Schedule Net Leverage 3.9x 3.7x 4.0x 3.3x 3.3x 572 565 596 564 526 501.5 67.2 26.4 3.7 0.5 2020 2021 2022 2023 2024 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20
Slide 17: Thank you
Thank you investors.atento.com