Atento S.a. · OTC:ATTOF

Atento — FY2015 Earnings Presentation

40 slides from Atento's earnings presentation, Mar 8, 2016

  1. Slide 1: Fiscal 2015 Fourth Quarter and FY Results

    Fiscal 2015 Fourth Quarter and FY Results Lynn Antipas Tyson March 8, 2016 ice President Investor Relation lynn.tyson@atento.com

  2. 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

  3. Slide 3: Presenters

    Presenters: Alejandro Reynal, CEO Mauricio Montilha, CFO

  4. Slide 4: Strategic Overview and Fourth Quarter Highlights

    Strategic Overview and Fourth Quarter Highlights p= _=— a

  5. Slide 5: Quarter and Full year Highlights

    Quarter and Full year Highlights) = Measurable and sustained progress against strategic initiatives = Strong revenue growth of 8.4% in Q4, 9.6% FY. = Won new clients, gained SOW, increased mix of higher-value solutions. = Non-TEF revenue up 16.3% in Q4, 15.9% FY; 55% of revenue for FY. = Non-TEF rev

  6. Slide 6: Progress Against Long Term Strategy

    Progress Against Long Term Strategy Above-Market Growth v *3.7K+ WS won, ~ 73% with new clients, ~85% with non- telco verticals in 4Q. v Penetration of solutions up 70 basis points to ~24% of revenue for the FY. ES. Best-in-Class Operations v Variable billable versus payable ratio increased 390 basi

  7. Slide 7: Long Term Strategy on Track

    Long Term Strategy on Track 2015 results demonstrate Atento is uniquely positioned to: = Win new business = Grow share of wallet with existing clients = Increase penetration of higher-value added solutions 2016 Clear Priorities: Optimal balance of growth, profitability & liquidity = Targeted investm

  8. Slide 8: Fourth Quarter and Full Year Financial Performance

    Fourth Quarter and Full Year Financial Performance ee.

  9. Slide 9: Consolidated Financial Highlights

    Consolidated Financial Highlights Adjusted EPS CY growth Leverage (x) 14 Notes: (2) Unless otherwise noted, all results are for Q4 2015; all growth rates are on 2 constant currency basis and year-over-year, exclude Czech Republic, which was, 14. 4 2015 457.8 84% 64.0 1.6% 14.0% $0.31 15.2% 1.6 306.4

  10. Slide 10: Brazil Summary

    Brazil Summary Revenue Key Highlights = Q4 up 4.5% despite protracted challenging macros. FY up 10%. = Significant commercial wins: usDm 2014 2015 2014 2015 = Approximately 2,700 workstations won in Q4 with new and Revenue 278.6 192.6 | 1,184.8) 930.2 existing clients. = Q4 Non-TEF up 13.4%, 140bp i

  11. Slide 11: Americas Summary

    Americas Summary Revenue uspm Revenue CY gromth 2014 Key Highlights = Q4 up 18.2% driven by 26.2% increase in Non-TEF clients and 9.6% increase in TEF. = 31.1% increase in higher value-added solutions. = Significant commercial wins in Q4: = Approximately 600 workstations won with new and existing cl

  12. Slide 12: EMEA Summary

    EMEA Summary Revenue Key Highlights™ a 7 ry FY = Q4 2.9% decline in revenue usom 2014, 2015, 2014) 2015 = 3.2% decline in Non-TEF clients — lower Public Administration contracts, exiting of lower-value contracts. Revenue 74.0| 617 | 3348) 247.4 — = 2.8% decline in TEF revenue led by Spain. CY gromtt

  13. Slide 13: Financial Strength and Flexibility

    Financial Strength and Flexibility recuring items = Debt ratings reaffirmed by rating agencies v Amidst downgrades of Latin America Corporate and Sovereign issuers Limited transcational currency exposure ¥ 98% of costs denominated in same local currency as revenue ¥ Most debt denominated in local cu

  14. Slide 14: 2016 Guidance

    2016 Guidance = Focused on the optimal balance of growth, profitability and liquidity = Targeted investments to deliver higher value to our clients = Further strengthen balance sheet, reduce level of debt Revenue Growth Range (CCY) Adjusted EBITDA Margin Range (CCY) Non-recurring items Debt payments

  15. Slide 15: Key Takeaways

    Key Takeaways 1. Measurable and sustained progress against our strategic initiatives. 2. Inherent competitive advantages and operational levers allowed us to outperform the market in 2015, despite macro-economic headwinds. 3. Priorities in 2016: optimal balance of growth, profitability and liquidity

  16. Slide 16: Appendix

    Appendix About Atento Financial Reconciliations Debt Information Glossary of Terms

  17. Slide 17: About Atento

    About Atento ee.

  18. Slide 18: Differentiated Competitive Advantages

    Differentiated Competitive Advantages 1. 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 share

  19. Slide 19: Atento at a Glance

    Atento at a Glance = #1 provider of CRM BPO services and solutions in Latin America — $2.0Bn 2015 revenue Revenue by region, offering and customer (?) = Founded in 1999 as provider to Telefénica Group; acquired by Bain Capital in 2012 = Superior operational delivery platform in LatAm region — 102 co

  20. Slide 20: Evolution of Leadership Position in LatAm CRM BPO Market

    Evolution of Leadership Position in LatAm CRM BPO Market Telefonica call center in The Leader inpan-tatam CRM BPO 1999 2015 Spain and Brazil ; 008006. ee COoueces in revenue ae Revenue $8n = Highly diversified 10% client base hz: %enowTEF reverwe Ye now-TEF revenue Expanded higher value-added oe 7 s

  21. Slide 21: 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... 2014 CRM BPO market share (%) 2015 Revenue ($Bn) 38 $10.4Bn LatAm CRM BPO market Mexico 17% Colombia Brazil 8% 26% Peru 34% Atento #1 market share position @ ‘Atento #5 market s

  22. Slide 22: Long-lasting relationships with market-leading clients

    Long-lasting relationships with market-leading clients Telecommunications Telefonica Wi movistar vivo @ 99% 2014 retention rate () Financial services ita & Santander Bradesco Elavon Multi-sector 69% of revenue from clients with 10+ year relationship 2) ‘nas BRASIL Carrefour LOREAL z, 22

  23. Slide 23: Services portfolio and multi-channel offerings have evolved into differentiated 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 | cede recat || oack Sales ome || pry oe Manageme

  24. Slide 24: Superior pan-LatAm operational delivery platform

    Superior pan-LatAm operational delivery platform State-of-the- Highly motivated employees AtTéewto Blue-chip tech partners Robust, Globally Standard Processes 0. 02% = Avaya + Cisco GB . heduled Unschedu + HP = Microsoft ws nae GOS cope CD) heute 7 Nee * Yer in 2015 YTD Centralized, standard 1,400,0

  25. Slide 25: Financial Service Case study: Deep expertise drives increased mix of value-add solutions

    Financial Service 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 sar VV v — Solutions we VW VY VY | ch | ana ee | |e S| aa Almere

  26. Slide 26: Strategy to achieve Sustained Growth and SHV Creation

    MID-TERM ‘STRATEGIC GLOBAL ‘STRATEGIC Strategy to achieve Sustained Growth and SHV Creation z Be the #1 customer experience solutions provider in a) the markets we serve. A truly multiclient business. 5 CSS. on oh a H ) Above-Market Best-in-Class Inspiring Zz Growth Operations People Addressing unta

  27. Slide 27: Clear path to deliver long term earnings growth

    Clear path to deliver long term earnings growth Capital struct on - - pital structure Drive efficiency optimization 9 program to the Settee ge GD the above-market Xe LCs . Attractive High visibility market growth Next wave of from retained cost savings improved cash delivered by generation margin /

  28. Slide 28: Highly experienced management team with strong track record

    Highly experienced management team with strong track record ‘Alejandro Reynal co __Cotorate functions Regions Reyes Cerezo Taki Cebollero Mauricio Montiha Wiel ater wan Game Legal and Regulatory fman Resouces Chief Financial Officer "Daal Drea ‘Compliance Director ‘Previously at SKY Brazil 15 years

  29. Slide 29: 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

  30. Slide 30: 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 e

  31. Slide 31: Financial Reconciliations

    Financial Reconciliations

  32. Slide 32: Mix of Revenue by Service Type

    Mix of Revenue by Service Type Qi 2015 Q2 2015 Q3 2015 Q4 2015 FY 2015 Customer Service 48.7% 48.0% 47.0% 47.9% 47.9% Sales 18.2% 18.3% 18.2% 17.4% 18.0% Collection 10.0% 10.3% 10.9% 11.2% 10.6% Back Office 9.1% 9.4% 10.2% 10.2% 9.7% Technical Support 10.7% 10.7% 10.5% 9.9% 10.5% Service desk 0.1% 0

  33. Slide 33: Adjustments to EBITDA by Quarter Fiscal 2015

    Adjustments to EBITDA by Quarter Fiscal 2015 Reconciliation of EBITDA and Adjusted EBITDA to Profit/(Loss) ($ in millions) Profit/ (loss) for the period Net finance expense Income tax expense Depreciation and amortization EBITDA (non-GAAP) (unaudited) Acquisition and integration related costs Restru

  34. Slide 34: Add-Backs to Net Income by Quarter Fiscal 2015

    Add-Backs to Net Income by Quarter Fiscal 2015 ($ in millions, except percentage changes) Profit/(Loss) attributable to equity holders of the parent Acquisition and integration related Costs Amortization of Acquisition related Intangible assets Restructuring Costs ‘Sponsor management fees Site reloc

  35. Slide 35: Number of Workstations and Service Delivery Centers

    Placeholder — number of WS and delivery centers Number os Workstations Number of Service Delivery Centers (1) FY 2014 FY 2015 FY 2014 FY 2015 Brazil 44,061 47,694 29 33 Americas 34,498 36,229 45 31 Argentina 2 3,820 3,705 ii ii Central America © 2,983 2,629 Chile 2,398 2,495 2 3 Colombia 5,827 7,292

  36. Slide 36: Reconciliations

    Reconciliations Reconci ion of EBITDA and Adjusted EBITDA®) $MM Q4 2014 942015 FY14 EBITDA (non-GAAP) 35.6 49.4. 207.0. ‘Acquisition and integration related costs, 22. x 9.9. Restructuring costs 3.0. 8.6... 26:7 Sponsor management fees - . 23 Site relocation costs 03 29 17 Financing and IPO fees 40.

  37. Slide 37: Debt Information

    Debt Information ee.

  38. Slide 38: Consolidated Debt and Leverage

    Consolidated Debt and Leverage Outstanding P - oem orcas rani Debt by Currency hlights 4Q15 MM urrency | Matut interest - [Senior Secured Notes | USD. 2020 7.375% 30L7 = Leverage ratio of 1.6x [Brazilian Debentures BRL 2019 | OD 3.7% _ + Cash and Cash equivalents SELIC + 2.5% 11.9 of $184MM, and exi

  39. Slide 39: Brazil Debt and Leverage

    Brazil Debt and Leverage [Outstanding Highlights 4Q15 Funding Mix - Balance « Leverage ratio of 1.7x $m Currency | Maturity | Interest Rate |__4Q'15 others Brazilian Debentures BRL 2019 CDI + 3.7% 168.1 os = Liquidity of $56M TIP + 2.5%. 473 SELIC + 2.5% 11.9 BNDES * New drawdown of $9.5 IBNDES BRL

  40. Slide 40: 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

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