Slide 1: Fiscal 2016 First Quarter Results
Fiscal 2016 First Quarter Results May 10, 2016 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: Alejandro Reynal, CEO; Mauricio Montilha, CFO
Alejandro Reynal, CEO Mauricio Montilha, CFO
Slide 4: Strategic Overview and First Quarter Highlights
Strategic Overview and First Quarter Highlights
Slide 5: Fiscal 2016 First Quarter Highlights
Fiscal 2016 First Quarter Highlights) Focus on Optimal Balance of Growth and Profitability * Consolidated revenue up 2.5%, adjusted EBITDA up 5.6% with margin of 11.6%. * Strategy to diversify revenue on track: Y Americas revenue up 16% supported by broad-based country and sector gains. v Non-Brazil
Slide 6: Progress Against Long Term Strategy
Progress Against Long Term Strategy STRATEGIC PILLARS QUARTER HIGHUGHTS v v v Transformational Growth ~2.7K+ WS won. * ~92% from non-Telefénica clients. Strong growth in financial services led by Americas. Mix of higher-value solutions in Brazil and Americas up 130 basis points and 100 basis points,
Slide 7: Long Term Strategy on Track
Long Term Strategy on Track Results demonstrate Atento is uniquely po: = Win new business across all verticals, including financial services. = Grow share of wallet with existing clients including increased penetration of higher-value added solutions. = Strengthen leadership position in Latin Americ
Slide 8: First Quarter Financial Performance
First Quarter Financial Performance
Slide 9: Consolidated financial results and key highlights
uspm Revenue CCY growth ” Adjusted EBITDA CCY growth Margin Adjusted EPS CCY growth Leverage (x) Notes qi 2015 515.9 58.3 11.3% $0.21 14 Key Highlights(*) * Growth and Profitability +_Revenue up 2.5% with 16% growth in Americas. > Decisive cost and efficiency initiatives drive improved operating lev
Slide 10: Brazil
Brazil Revenue Key Highlights") = Revenue down 5.6% amidst challenging macro-economic a a environment. + ~ 1,300 workstations won with new and existing clients, 56% usom 2016 | 2015 : from non-telco verticals. Revenue 182.5 | 264.1 = Mix of revenue from higher-value solutions up 130 b.p. to 37.8%. ;
Slide 11: Americas
Americas Revenue Key Highlights‘) Revenue up 16.0%, ~1,000 workstations won with new and exi clients. qu qu = Revenue from clients other than Telefénica up 17.9%. uspbm 2016 = 2015 * New client wins and increased share of wallet with existing clients hoes 1773 | 204 especially in Mexico, Colombia an
Slide 12: EMEA
EMEA Revenue Key Highlights!) = Revenue down 5.4% as macro-driven volume declines in Public Sector and for] ai telco moderated versus 2015. * ~300 workstations won with new and existing clients usDm 2016 2015 , a * Continued strategy to exit lower-value contracts and selectively pursue Revenue 60.0
Slide 13: Financial Strength and Flexibility
Financial Strength and Flexibility Free cash flow before net interest of -$26.3 million, $2.4 million better YoY driven by improvement in working capital. * $9.9 million better before non-recurring items. Strong Balance Sheet Debt ratings reaffirmed by rating agencies * Amidst downgrades of Latin Am
Slide 14: Reaffirm 2016 Guidance
Reaffirm 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 Consolidated Revenue Growth (CCY) Adjusted EBITDA Margin Range (CCY) Non-recurring Ite
Slide 15: Key Takeaways
Key Takeaways Priorities for 2016 are on track — highlighted by an optimal balance of growth, profitability and liquidity. Resilient business model, strong balance sheet and improving cash flow provides financial flexibility to invest in higher return opportunities. Confident in ability to outperfor
Slide 16: Appendix
Appendix About Atento Financial Reconciliations Debt Information Glossary of Terms
Slide 17: About Atento
About Atento
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 — $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 pamites region 42%
Slide 20: Evolution of Leadership Position in LatAm CRM BPO Market
Evolution of Leadership Position in LatAm CRM BPO Market 1999 Telefonica call center in Spain and Brazil 2015 The Leader in pan-LatAm CRM BPO Extended footp: cross Latin Ame Added $2 billion in revenue Highly diversified client base Expanded higher value-added solutions offerings Built largest execu
Slide 21: Largest CRM BPO Provider in Latin America
Largest CRM BPO Provider in Latin America Market leader in the largest One of the largest players ii 2014 CRM BPO market share %) 2015 Revenue ($8n) 38 Mexico $10.4Bn 17% LatAm CRM BPO market Brazil) 26% Colombia 8% Peru 34% Chile 25% ‘Atento #1 market share position ‘Atento #5 market share position
Slide 22: Recognized as a Leader in Gartner's 2016 Magic Quadrant
Recognized as a Leader in Gartner's 2016 Magic Quadrant for Customer Management Contact Center BPO For the third consecutive year Atento S.A., has been named a Leader in Gartner ‘s Magic Quadrant assessing companies that provide Customer Management Contact Center Business Process Outsourcing Service
Slide 23: Services portfolio and multi-channel offerings
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 | casoner |[ cea ][ teams |[ sac M ‘ — sates || ome
Slide 24: Superior pan-LatAm operational delivery platform
Superior pan-LatAm operational delivery platform blue-chip Tech Partners Robust, Globally Standard Processes 0.02% State-of-the- + Avaya + Cisco x ‘s0 Unscheduled art Technology ~ HP + Microsoft 50) cope Wi Verint = downtime ice enn in 2015 Centralized, standard 1,400,000+ Standardized Three globall
Slide 25: Financial Service case study
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 ‘lient services and solutions offerings sm vv Vv v J Solutions we VW VY VV A al g[me ov vv v aa 3] sos vvv
Slide 26: Strategy to achieve Sustained Growth and Shareholder Value Creation
Strategy to achieve Sustained Growth and Shareholder Value Creation MID-TERM VISION ~- Zo Transformational ES} (Growth BE opportunities and increasing Sow to deliver accelerated growth = Deliver CRM BPO solutions = Aggressively grow client base = Penetrate U.S. Near- Shore GLOBAL STRATEGIC INTITIATI
Slide 27: 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 28: Atento's Solutions
Atento’s Solu 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 effici
Slide 29: Financial Reconciliations
Financial Reconciliations
Slide 30: Mix of Revenue by Service Type
Mix of Revenue by Service Type Qi 2015 @ 2015 @G 2015 2015 FY 2015, Qi 2016 Customer Service 48.7% 48.0% 47.0% 47.9% 47.9% 49.6% Sales 18.2% 18.3% 18.2% 17.4% 18.0% 16.4% Collection 10.0% 10.3% 10.9% 11.2% 10.6% 10.2% Back Office 9.1% 9.4% 10.2% 10.2% 9.7% 10.5% Technical Support 10.7% 10.7% 10.5% 9
Slide 31: Adjustments to EBITDA by Quarter
Adjustments to EBITDA by Quarter Reconciliation of EBITDA and Adjusted EBITDA to Profit/(Loss) ($ in millions) 1 2015 22015 2015 2015 __FY¥ 2015 __Qu 2016 Profit/ (loss) for the period 20.5 65 16.7 34 49.1 (48) Net finance expense 16 19.6 95 159 46.7 19.4 Income tax expense 5.6 53 38 4.1 238 1.0 Dep
Slide 32: Add-Backs to Net Income by Quarter
Add-Backs to Net Income by Quarter ($ in nilions, 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 relocation costs F
Slide 33: Number of Work Stations and Delivery Centers
Number of Work Stations and Delivery Centers fherher of Workstations OST of Service Balvery Centers ‘) Qi 2016 Qi 2015 Qi 2016 Qi 2015 Brazil 47,053 48,047 33 33 Americas 36,576 33,549 51 46 Argentina 2) 3,666 3,705 ii ii Central America ®) 2,592 2,560 5 Chile 2,742 2,402 3 2 Colombia 7,335 5,479 9
Slide 34: Reconciliations
Reconciliations Reconciliation of EBITDA and Adjusted EBITDA® Reconciliation of Adjusted EPS to Profit/(Loss) “) $MM ‘$MM, except per share a a Q12016 Q1 2015 2016 2015 Profit for the period (4.8) 20.5 EBITDA (non-GAAP) 37.3... 55.7 ‘Acquisition and integration ‘Acquisition and integration costs > 0
Slide 35: Debt Overview
Debt Overview
Slide 36: Consolidated Debt and Leverage
Consolidated Debt and Leverage Highlights 1Q16 = Leverage ratio of 1.9x = Cash and cash equivalents of $149MM, and existing revolving credit facility of €50MM, totaling Liquidity of $206MM Debt by Currency * Average debt maturity of 3.5 years * Average cost of debt (LTM): lOutstanding| Currency | Ma
Slide 37: Brazil Debt and Leverage
Brazil Debt and Leverage Highlights 1016 = Leverage ratio of 1.8x Funding Mix = Liquidity of $45MM " Average debt maturity of 2.5 years = Average cost of debt (LTM): 13.4% per year [Outstanding] Currency | Maturity} Interest Rate | Balance 1Q'16 Brazilian Debentures BRL 2019 | cbi+3.7% 1923, TILP +
Slide 38: 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