Atento S.a. · OTC:ATTOF
Atento — FY2016 Earnings Presentation
25 slides from Atento's earnings presentation, Mar 21, 2017
Slide 1: Fiscal 2016 Fourth Quarter and Full Year Results
Fiscal 2016 Fourth Quarter and Full Year Results March 21, 2017 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: Operating Highlights and Strategic Overview
Operating Highlights and.Strategic, Overview. Alejando Reynal, CEO
Slide 4: Balanced Fiscal 2016 Q4 and Full-Year Results
Balanced Fiscal 2016 Q4 and Full-Year Results: Expanded Market Leadership Position, Protected Margin, Delivered Strong Cash Flow = Solid Growth from Multisector Clients, Telefénica Revenue Under Pressure * Q4 consolidated revenue down 4.2% — Revenue from multisector™ clients up 2.4% driven by broad-
Slide 5: Fiscal 2017 Environment
Fiscal 2017 Environment = Improving Macros * Brazil expected to return to growth in second-half * Recovery in consumer spending likely to be slow and clients will remain focused on managing cost, presenting both challenges and opportunities for Atento = Telefonica Revenue Remains Under Pressure * Ov
Slide 6: Fiscal 2017: Strong Multisector Growth
Telecommunications Atento relatively less penetrated, excluding Telefonica (3% share of $3 Bn market) Proven partner able to scale at pace Attractive growth opportunities in sales, cross-selling and retention Atento Digital: digital and analytical solutions Atémto Fiscal 2017: Strong Multisecto: Fin
Slide 7: Fiscal 2017: Return to Growth
Fiscal 2017: Return to Growth Maintain Margins, Drive Cash Generation and Net Income Growth = Revenue Growth of 1-5% * Strong broad-based growth from multisector clients * Telefonica revenue stable at Fiscal 2016 Q4 level = Adjusted EBITDA Margin 11-12% * Disciplined inflation pass-through and effic
Slide 8: Financial Results
Financial ‘Results Mauricio Montilha, CFO
Slide 9: Consolidated: Balanced Fourth Quarter and Full-Year Results
Consolidated: Balanced Fourth Quarter and Full-Year Results Highlights() Revenue aa Full Year * Q4: broad-based revenue growth of 2.4% from USS MM Except per share 20162015 2016 2015 multisector clients, aided by new business wins. Growth Revenue 442.0 453.8 /1,757.5 1,949.9 more than offset by macr
Slide 10: Brazil — Multisector Returns to Growth
Brazil — Multisector Returns to Growth Highlights() a4 Full Year = Revenue uss MM 2016 2015 2016 2015 * Multisector returned to growth in Q4, up 2.2%, supported by new client wins and acquisition of RBrasil Revenue 214.4 192.6 |816.4 930.2 CC Growth”) 4.696 -7.0% * Q4 sequential improvement in reven
Slide 11: Americas — Growth led by U.S. Nearshore and Multisector
Americas — Growth led by U.S. Nearshore and Multisector a4 Full Year uss mM 2016 2015 2016 2015 Revenue 172.8 203.9|718.9 789.8 cc Growth” 46.8 17.3} 88.2 65.8 59.5% 19.6 29.1] 92.0 109.1 EBITDA Margin®) Highlights() = Revenue + Multisector up 1.2% in Q4 supported by growth in Colombia, Peru and U.S
Slide 12: EMEA — Continued Growth in Multisector supported by new clients
EMEA — Continued Growth in Multisector supported by new clients Highlights‘) a4 Full Year = Revenue 2016 2015 2016 2015 * Q4: continued strong growth of multisector, up 11.7% Revenue 55.3 57.7 |223.9 231.7 CC Growth” | -2.6%6 ~1,000 workstations won FY, 83% from new clients Mix of revenue from multi
Slide 13: Strong Cash Flow Generation
Strong Cash Flow Generation Q4 Full Year Free Cash Flow (FCF) USS MM 2016 2015 2016 2015 Cash from/(used in) operating activities") 83.8 40.3] 141.9 37.0 Payments for PP&E and intangible assets (13.5) (35.8) Disposals of PP&E and intangible assets (0.1) - FCF - Operational) 70.2 4.5 Acquisition of S
Slide 14: Strong Balance Sheet and Enhanced Financial Flexibility
Strong Balance Sheet and Enhanced Financial Flexi Year End 2016 2015 Cash & Cash Equivalents Total Debt Net Debt with Third Parties| Net Debt/Adj. EBITDA (x) = Strong Balance Sheet * Liquidity of $247 million"), low leverage of 1.5x = Accelerated Deleveraging * Total payments of $62 million in 2016:
Slide 15: Fiscal 2017 Guidance
Fiscal 2017 Guidance = Return to Growth = Maintain Margins = Drive Cash Generation and Net Income Growth 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 S60MM to $65MM [Cash Cap
Slide 16: Fiscal 2016 Delivered on Priorities
Fiscal 2016 Delivered on Priorities * Selective growth, margin protection and cash generation * Strengthened balance sheet and earnings trajectory Fiscal 2017 Return to Top and Bottom-Line Growth * Strategic pillars support topline growth and revenue diversification * Continue strong cash generation
Slide 17: Appendix
Appendix Financial. Reconciliations Debt Information Glossary
Slide 18: Adjustments to EBITDA by Quarter
Adjustments to EBITDA by Quarter Fiscal 2015 Fiscal 2016 ($ in milions) ae oe ot we ao et of tt Profit /(loss) for the period 2056.5 17.4 7.5 522 _ (4.8) (8.1) (0.5)_16.7 Net finance expense 16 196 95 157 464 194 282 223 377 1078 Income tax expense 56 53 87 35 232 10 06 26 11 52 Depreciation and amo
Slide 19: Add-Backs to Net Income by Quarter
Add-Backs to Net Income by Quarter ($ 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 Site relocation costs Financing and IPO fees A
Slide 20: FX Rates — Fiscal 2016
FX Rates — Fiscal 2016 Average FX Assumptions a Q @ FY 2016 Euro (EUR) 0.91 0.89 0.90 0.93 0.90 Brazilian Real (BRL) 3.91 351 3.25 3.29 3.48 Mexican Peso (MXN) 1805 1810 1876 1983 18.69 Colombian Peso (COP) 3,259.17 2,994.86 2,948.13 3,015.14 3,054.33 Chilean Peso (CLP) 702.02 677.93 661.47 665.52 6
Slide 21: Mix of Revenue by Service Type
Mix of Revenue by Service Type Fiscal 2015 Fiscal 2016 qr Qe 3 OF FY Qn @ 3 ow iad Customer Service "48.7% 48.0% 47.0% 47.9% 47.9% 49.6% 49.7% 50.2% 47.8% 49.0% Sales 18.2% 18.3% 18.2% 17.4% 18.0% 16.4% 16.3% 15.3% 17.2% 16.6% Collection 10.0% 10.3% 10.9% 11.2% 10.6% 10.2% 10.0% 9.4% 10.0% 10.1% Bac
Slide 22: Number of Work Stations and Delivery Centers
Number of Work Stations and Delivery Centers Number of Work "Number of Stations eihiaad Delivery 2015 2016 _2015_ 2016 Bra: 47,694 45,913 3331 Americas 36,229 37,574 S150 Argentina ® 3,705 3,673 uit Central America ©) 2,629 2,644 55 Chile 2,495 2,673 3003 Colombia 7,292 9 9 Mexico 9,905 16 15 Peru 8
Slide 23: Consolidated Debt and Leverage
Consolidated Debt and Leverage [Outstanding] Currency | Maturity] Interest Rate | Balance | % Mix $MM 40°16 |Senior Secured Notes "? sD 2020 7.375% 303.3| _57%| Brazilian Debentures® [BRL 2019 | coi +3.7% 156.6| 29% THLP + 2.5% / BNDES BRL 2020 | orice a.s% rial 13%! Financelease payables | usb/cop
Slide 24: Brazil Debt and Leverage
Brazil Debt and Leverage [Outstanding Currency |Maturity| Interest Rate | Balance |% Mix $MM. 4Q'16 Brazilian Debentures | BRL 2019 | cbi+3.7% 156.6] _69%| BNDES BRL 2020 | TP +2.5%/ mal 319 SELIC+2.59 [Gross Debt 228.0| 100% Short-Term Debt 19% Long-Term Debt 21% Net Debt 156.6| (*) Aninterest rate
Slide 25: 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