Atento S.a. · OTC:ATTOF
Atento — Q4 2014 Earnings Presentation
24 slides from Atento's earnings presentation, Mar 10, 2015
Slide 1: Fourth Quarter and Full Year 2014 Results
Atento Fourth Quarter and Full Year 2014 Results New York, March 10th, 2015
Slide 2: Disclaimer
Disclaimer This presentation is provided to you on the condition that you agree that you will hold it in strict confidence and not reproduce, disclose, forward or distribute it to any third party in whole or in part without the prior written consent of Atento S.A. (“Atento”). This presentation has b
Slide 3: Full Year and Fourth Quarter Review
Full Year and Fourth Quarter Review
Slide 4: Robust performance in 2014 and great momentum in 2015, despite macro headwinds
Robust performance in 2014 and great momentum in 2015, despite macro headwinds I Solid growth and strengthened #1 market leadership position in the BPO CRM LatAm market: — Increased SoW with existing clients through higher value added solutions, specially in the financial services sector — Relevant
Slide 5: Strong profitable growth for Q4 and 2014
Strong profitable growth for Q4 and 2014 Key highlights Q4 Q4 FY FY Delivered strong financial results USDm 2013 2014 2013 2014 7.7% CCY revenue growth (10.5% in LatAm(1)) Revenue 593.8 555.1 2,341.1 2,298.3 in 2014, 5.8% in Q4 13.3% adj. EBITDA margin in 2014, 15.6% in Q4 CCY growth 5.8% 7.7%
Slide 6: Successful execution of our strategy already evident in 2014
Successful execution of our strategy already evident in 2014 Becoming the #1 customer experience solutions provider in our MID-TERM VISION markets. A truly multiclient business, delivering high single-digit CCY growth and industry leading margins STRATEGIC PILLARS Above-Market Best-in-Class Inspirin
Slide 7: Concrete proof points delivered in each of the three strategic pillars
Concrete proof points delivered in each of the three strategic pillars Above-Market Best-in-Class Inspiring Growth Operations People Increased share of solutions to Operations productivity Strengthened Executive over 23% (+1.4 p.p. y-o-y) increased 2.7 p.p., driving Committee - robust mix of l
Slide 8: Atento Brazil Case Study: Delivering profitable growth irrespective of weak macro environment
Atento Brazil Case Study: Delivering profitable growth irrespective of weak macro environment Outperforming growth expectations… Key highlights +730 bps +740 bps • Strong commercial activity outside of Telefónica +430 bps 9.6% leveraging our scale, superior execution and 7.5% differentiated solution
Slide 9: Clear set of priorities in 2015
Clear set of priorities in 2015 Double down on the growth agenda: Scale non-Telefonica Telco business Materialize significant growth in the US Near-Shore segment Above-Market Drive SoW gains through increased solutions penetration Growth Maximize value of TEF relationship Drive efficiency ag
Slide 10: High visibility on ability to deliver earnings growth in 2015
High visibility on ability to deliver earnings growth in 2015 Capital structure Earnings Drive efficiency agenda optimization growth Strategic initiatives to to the next level drive above-market revenue growth Market Ability to use High visibility growth cash on balance from retained Consolidate
Slide 11: 2014 Group Financial performance
2014 Group Financial performance
Slide 12: FY 2014 Financial Highlights
FY 2014 Financial Highlights 7.7% Group CCY growth Growing revenue with strong visibility 10.5% CCY growth excl. EMEA 10.8% CCY Non-TEF growth Reducing TEF concentration +2pp non-TEF y-o-y revenue share Adj. EBITDA margin 13.3% Consistent margin expansion ~70bps margin expansion Limite
Slide 13: Higher margin LatAm operations and non-TEF clients delivering strong growth
Higher margin LatAm operations and non-TEF clients delivering strong growth Revenue growth LatAm driving outperformance 10.5% CCY CCY 8.4% Growth Growth 7.7% 5.8% +5.8% +7.7% (1.8)% 2,341.1 2,298.3 Q4 q-o-q FY y-o-y Group CCY growth LatAm CCY growth Reducing TEF concentration TEF CCY growth +4.5% +4
Slide 14: Outstanding adj. EBITDA growth and margin expansion
Outstanding adj. EBITDA growth and margin expansion Adjusted EBITDA y-o-y margin expansion (bps) $MM % +70 +100 CCY CCY +140 Growth Growth 13.3 12.6 11.6 +13.6% +13.7% 10.2 +3.8% 306.4 295.1 2011 2012 2013 2014 Quality growth mix delivering enhanced profitability 1.2% 15.5% 14.6% 85.5 86.5 48.5% 46.
Slide 15: Brazil summary financials
Brazil summary financials Revenue Comments $MM CCY +2.5% +7.5% Growth Positive CCY revenue growth and proven ability to 1,206.1 1,184.8 operate in different macro environments Non-TEF revenue growth 11.0% CCY in FY 2014 Significant commercial wins over the year 306.6 278.6 – + 3.5k WS, + 1K WS
Slide 16: Americas summary financials
Americas summary financials Revenue Comments $MM CCY +17.4% +15.3% Growth Double-digit CCY revenue growth driven by 772.7 779.4 leveraging scale and leading market position across main countries Increased volumes with existing clients and new customer wins over the year 198.3 202.7 – ~500 WS wit
Slide 17: EMEA summary financials
EMEA summary financials Revenue Comments $MM CCY (8.4)% (7.7)% Growth TEF exposure to weak Spanish macro-environment 363.1 impacting revenues 334.8 Increased commercial activity with non-TEF clients (CCY Revenue growth of 6.8% y-o-y) 89.0 74.0 Q4 2013 Q4 2014 FY 2013 FY 2014 Adjusted EBITDA $MM
Slide 18: Strong balance sheet post-IPO and continued deleveraging enhancing our financial flexibility
Strong balance sheet post-IPO and continued deleveraging enhancing our financial flexibility Pro forma capital structure Comments FY 2013 FY 2013 FY 2014 Continued deleveraging from Pro Forma (1) 2.2x to 1.4x ($MM) ($MM) ($MM) Cash and cash equivalents 213.5 213.5 211.4 Strengthened Balance Shee
Slide 19: Sound Cash Flow generation
Sound Cash Flow generation Free cash flow Comments $MM Strong FCF improvement driven by EBITDA growth and Q4 2013 Q4 2014 FY 2013 FY 2014 lower working capital needs Net cash flow from operating 35.3 25.9 99.6 135.3 OpCF in 2014 impacted by $73 million of exceptionals activities largely driven b
Slide 20: Atento 2015 Guidance
Atento 2015 Guidance Key highlights CCY Revenue growth (%) 6% — 9% LatAm ~ double-digit, EMEA ~ low single-digit Enhanced revenue mix Adj. EBITDA margin (%) 13.0% — 13.5% Execution of best-in-class initiatives CAPEX(1)/Revenue (%) 5.0% ~ 50% growth ~ 50% maintenance Effective Tax Rate (%)
Slide 21: Closing remarks
Closing remarks I Solid growth performance, strong commercial pipeline and strengthened #1 market leadership, positions us favorably in the fast growing LatAm BPO CRM markets II Ability to deliver margin expansion fuelled by increased productivity and efficiencies Strengthened capital structure and
Slide 22: Appendix
AtTéwto: Appendix ee.
Slide 23: Reconciliation of EBITDA to Adj. EBITDA
Reconciliation of EBITDA to Adj. EBITDA Non-GAAP EBITDA Reconciliation Breakdown of exceptional costs $MM $MM Q4 Q4 FY13 FY14 2013 2014 Profit / (Loss) for the period from 50.9 14.4 (25.9) (4.0) (42.1) continuing operations Net finance expense 14.6 12.6 100.7 110.8 Income tax expense 2.8 20.7 8.3 18
Slide 24: Adj. earnings reconciliation
Adj. earnings reconciliation Comments Q4 2013 Q4 2014 FY 2013 FY 2014 Accumulated FY14 Adj. EPS growing at 7.5% Profit for the period 14.4 (25.9) (4.0) (42.1) in CCY Acquisition and integration Costs 8.2 2.2 29.3 9.9 Amort. of Acquisition of Intangibles 10.8 8.1 40.7 36.6 Earnings largely impact