Atento S.a. · OTC:ATTOF
Atento — Q1 2017 Earnings Presentation
35 slides from Atento's earnings presentation, May 9, 2017
Slide 1: Fiscal 2017 First Quarter Results
Fiscal 2017 First Quarter Results Felipe Joaquim Martins de Souza May 9, 2017 Investor Relations #55 11 3779-8053 Felipe.souza@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 investm
Slide 3: Operating Highlights and Strategic Overview
+ . Operating Highlights and Strategic Overview (2 + ® Alejando Reynal, CEO eS + 8 + B + a + i=) + cy + 7 + 8 + o + @ + 3 + 9 + ic) + a + a + cs o® 8 Q ®
Slide 4: Solid Start in Fiscal 2017
Solid Start in Fiscal 2017 Highlighted by Topline Growth, Maintained Margins and Continued Improvement in Cash Flow = Return to Growth in Brazil and EMEA, Strong Multisector) Gains in Every Region * Consolidated revenue up 3.0% , Multisector up 8.8% ~— Multisector broad based gains in all regions: B
Slide 5: Three Pillar Growth Strategy Delivering Results Across Key Verticals
Three Pillar Growth Strategy Delivering Results Across Key Verticals Telecommunications $3 Bn market 3% share Strong commercial momentum in Telco Non- TEF, +2,200 WS in Q1 Telefénica business stable, +550 new WS in Brazil in Qt (sales & collections solutions) Demand for digital solutions remains a s
Slide 6: Financial Results
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Slide 7: Consolidated: Return to Both Top and Bottom-Line Growth
Consolidated: Return to Both Top and Bottom-Line Growth Highlights() Qu = Revenue up 3.0% US$ MM Except per share PSERMET ICI ° Driven by Brazil and EMEA and flat in Americas, with significant growth of 8.8 % from multisector clients * Revenue mix from multisector up 4.0 p.p. to a record 60% 3.0% 2.
Slide 8: Brazil: Return to Growth and Improved Profitability
Brazil: Return to Growth and Improved Profitability Revenue CC Growth income/(loss) CC Growth” Adjusted EBITDA”) EBITDA Margin”) Unless otherwise noted, all results are for Q1 2017; all growth rates are on a constant currency basis and year-over-year. AtEmwto {2} EBITDA ani. ESTTOA ae Hon GAAP rcasr
Slide 9: Americas: Improved Revenue Trajectory
Americas: Improved Revenue Trajectory Qi 2017 2016 Revenue 173.4 177.3 cCGrowth” | -0,3% 16.0% Reported Operating income/(loss) 7 6.8 CC Growth "| -52.49 Adjusted EBITDA®) 17.4 EBITDA Margin® | 10.0% = Revenue Stal Highlights‘) ig 7.5% increase in multisector supported by growth in Colombia, Chile,
Slide 10: EMEA: Return to Growth and Improved Profitability
ity Highlights!) EMEA: Return to Growth and Improved Profita = Revenue up 4.2%, Positive After 8 Quarters Multisector up 8.3%, supported by new service wins qi usosmm 2017 2016 Revenue 56.7 56.3 CCGrowth| 4.2% — -5.4% TEF revenue up 2.1% Mix of revenue from higher value-add solutions up 230 b.p. to
Slide 11: Significant Improvement in Cash Flow Year-Over-Year
Significant Improvement in Cash Flow Year-Over-Year qi Free Cash Flow (FCF) US$ MM 2017 2016 Cash from/(used in) operating activities” Payments for PP&E and intangible assets Disposals of PP&E and intangible assets FCF - Operational” Acquisition of Subsidiaries Sales of Subsidiaries Free Cash Flow N
Slide 12: Strong Balance Sheet and Enhanced Financial Flexibility
Strong Balance Sheet and Enhanced Financial Flexibility Debt US$ MM Cash & Cash Equivalents Total Debt Net Debt with Third Parties Net Debt/Adj. EBITDA (x) = Strong Balance Sheet * Liquidity of $224.4 MM"), low leverage of 1.6x = Deleveraging(?) * Accelerated amortization of higher cost Brazil debt:
Slide 13: Reaffirmed Fiscal 2017 Guidance
Reaffirmed Fiscal 2017 Guidance = Reaffirm Full-Year Targets * Revenue up 1-5%, adj. EBITDA margins 11-12%, Cash Conversion ~ 40% Consolidated Revenue Growth (CCY) 1% to 5% Adjusted EBITDA Margin Range (CCY) 11% to 12% Non-recurring Expenses — Adjustments to EBITDA ~$13 MM Net Interest Expense Range
Slide 14: Solid Start of Fiscal 2017, Topline Growth and Stable Margins
Solid Start of Fiscal 2017, Topline Growth and Stable Margins * Focused growth strategy drove increase in revenues, highlighted by growth in Brazil and EMEA, as well as multisector gains in all regions * Stable margins and earnings expansion driven by continued focus on disciplined inflation pass-th
Slide 15: Appendix
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Slide 16: About Atento
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Slide 17: About Atento
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Slide 18: Differentiated Competitive Advantages
Differentiated Competitive Advantages v Leader in attractive, high-growth LatAm market. v Long-lasting client relationships due to vertical expertise and growing portfolio of services and solutions. v Superior pan-LatAm operational delivery platform. v Clear strategy for sustained growth and strong
Slide 19: Atento at a Glance
Atento at a Glance | #1 provider of CRM BPO services and solutions in Latin America — $1.8n 2016 revenue Founded in 1999 as provider to Telefdnica Group; acquired by Bain Capital in 2012 1 Superior operational di region ery platform in LatAm. — 95 contact centers in 13 countries globally — 150,000+
Slide 20: Largest CRM BPO Provider in Latin America
Largest CRM BPO Provider in Latin America Market leader in the largest markets... One of the largest players in the world. ‘2015 CRM BPO market share (74) oie Revenue (Sen $10.0Bn 4.0 LatAm CRM BPO market ees Comics arene: — Grebe conta 1 1 1 2 19.7% 25.2% 34.7% 10.8% Ss 6&6 O =) 20
Slide 21: Evolution of Leadership Position in LatAm CRM BPO Market
Evolution of Leadership Position in LatAm CRM BPO Market 1999 Telefonica call center in 2016 ‘Spain and Brazil The Leader in pan-LatAm CRM BPO ® e008088 , ee eesoes in revenue = Highly diversified ~10% client base Expanded higher value-added os || ar solutions offerings Built largest execution 20k p
Slide 22: Services portfolio and multi-channel offerings have evolved into differentiated, value-added solutions
Services portfolio and multi-channel offerings have evolved into differentiated, value-added solutions We offer a comprehensive portfolio of services via robust multi-channel offerings Vertically-driven solutions portfolio Insurance ‘Smart Credit sas |] omtomer |] ome | acct |] sack Management Solut
Slide 23: Superior pan-LatAm operational delivery platform
Superior pan-LatAm operational delivery platform Blue-chip Tech Partners Robust, proaneid Standard " State-of-the- + Avaya + Cisco . . foe Unscheduled art Technology + HP + Microsoft 50) cope downtime + Nice = Verint = i201 Centralized, standard 1,400,000+ Standardized Three globally connected autom
Slide 24: Financial Services case study: deep expertise drives increased mix of value-add solutions
Financial Services case study: deep expertise drives increased mix of value-add solutions overtime Strong relationship spanning many services and countries.... .-with increasing depth of offerings Client services and solutions offerings sme YY v ae Solutions vv Sales v Services ack office fi SNNN ON
Slide 25: Atento's solutions
Atento’s solutions Smart Collection Insurance Management Smart Credit Solution Complaints Handling 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 effec
Slide 26: Atento's Solutions
Atento’s Solutions B2B Efficient Sales Credit Card Management Advanced Technical Support Multichannel Customer Experience ‘Manages small medium business’ lead generation and process execution Specialized process and agents in sales, process mapping and reengineering Channel integration (adapted for
Slide 27: Financial Reconciliations
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Slide 28: Adjustments to EBITDA by Quarter
Adjustments to EBITDA by Quarter Fiscal 2015 Fiscal 2016 Fiscal 2017 (S in nillions) ae Go @ Ae qo om o® Ae a Profit /(loss) for the period 20:5 6.5 17.4 7.5 52.2. (4.4) (8.1) (0.5) _16.7 Net finance expense 16 196 95 157 464 195 282 223 377 1078 12.0 Income tax expense 56 53 87 35 232 10 06 26 11 5
Slide 29: Add-Backs to Net Income by Quarter
Add-Backs to Net Income by Quarter Fiscal 2015 Fiscal 2016 Fiscal 2017 ($in millions, except percentage changes) a @ eat pea ee aft Ao Qa Profit /(Loss) attributable to equity holders of the parent _20.5 6.5 17.4 _7.5_52.2__(4.4) (8.1) (05) 16.7 34 9.0 ‘Acquisition and integration related Costs o1 -
Slide 30: FX Rates
FX Rates Average Average FX Assumptions Qu Q Q3 Qt ___FY2016__Qi 2017 Euro (EUR) 0.91 0.89 0.90 0.93 0.90 0.94 Brazilian Real (BRL) 3.91 3.51 3.25 3.29 3.48 3.14 Mexican Peso (MXN) 18.05 1810 1876 1983 18.69 20.32 Colombian Peso (COP) 3,259.17 2,994.86 2,948.13 3,015.14 3,054.33 2,922.44 Chilean Pes
Slide 31: Mix of Revenue by Service Type
Mix of Revenue by Service Type Fiscal 2015 Fiscal 2016 Fiscal 2017 a 4 FY Qa Qa Qa Customer Service 48.7% 48.0% 47.0% 47.9% 47.9% 49.6% 49.7% 50.2% 47.8% 49.0% 50.2% Sales 18.2% 18.3% 18.2% 17.4% 18.0% 16.4% 16.3% 15.3% 17.2% 16.6% 16.3% Collection 10.0% 10.3% 10.9% 11.2% 10.6% 10.2% 10.0% 9.4% 10.0
Slide 32: Number of Work Stations and Delivery Centers
Number of Work Stations and Delivery Centers Number of aarilead a Service Delivery — Centers!) QL2016 Q12017 __Q1.2016 Qt 2017 Brazil 47,053 _ 45,668 33 31 ‘Americas 36,576 36,232 31 49 Argentina @ 3,606 3,696 tt it Central America © 2,592 2,354 5 4 Chile 2,742 2,691 3 3 Colombia 7,335 7,747 9 9 Mex
Slide 33: Consolidated Debt and Leverage
Consolidated Debt and Leverage [Outstanding| Currency |Maturity] Interest Rate | Balance |% Mix sum 1017 Senior Secured Notes] USD 2020 7.375% 298.2| 55% Brazilian Debentures | BRL 2019 | cdl+3.7% 167.6| 31% THLP +2.5%7 leNDes BRL 2020 | eres ae 67.3] 13% Finance lease payables | usb/cop | 2019 | 8.
Slide 34: Brazil Debt and Leverage
Brazil Debt and Leverage Highlights 1917 [Outstanding] = Leverage ratio of 1.2x Currency |Maturity| Interest Rate | Balance |% Mix] eum en Liquidity of $664M. Brazilian Debentures BRL 2019 | cD1+3.7% 167.6| 71%] = Average debt maturity of 1.9 years BNDES BRL 2020 | 2288! 67.8| 29%] = Average cost of
Slide 35: 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. = Ad