2. 2
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distribute it to any third party in whole or in part without the prior written consent of Atento S.A. (“Atento”).
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 investment decision.
This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person.
No representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and
conclusions contained in this presentation. To the maximum extent permitted by law, none of Atento, its directors, employees or agents, nor any other
person accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of the information
contained in this presentation.
This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws, that are subject to risks and uncertainties.
All statements other than statements of historical fact included in this presentation are forward-looking statements. Forward-looking statements give our
current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can
identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as
“anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” the negative thereof and other words and terms of similar meaning in connection
with any discussion of the timing or nature of future operating or financial performance or other events. These forward-looking statements are based on
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Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our
actual financial results and cause them to differ materially from those anticipated in the forward-looking statements.
Important assumptions and other important factors that could cause actual results to differ materially from those in the forward-looking statements and
projections are specified in Atento’s most recently filed Form 20-F and other SEC filings. Because of these factors, we caution that you should not place
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risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us. We have no duty to, and do
not intend to, update or revise the forward-looking statements in this presentation after the date of this presentation.
The historical and projected financial information in this presentation includes financial information that is not presented in accordance with International
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comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a
substitute for analysis of our operating results as reported under IFRS.
Disclaimer
4. 4
Atento At-A-Glance
We are the #1 provider of CRM BPO services & solutions in Latin America
Company Overview
Leading CRM BPO provider in Latin America and the
fourth largest globally by revenue
Growing end-to-end solutions for clients across all
verticals & dedicated digital business unit
Long-standing relationships with blue-chip clients
Superior pan-LatAm delivery platform
− 99 contact centers in 13 countries globally
− 151,000+ employees & 91,000+ workstations globally
Unique people focus: only CRM BPO company among the
25 best multinationals to work for and the only LatAm-
based company(1)
Proven management team: strong constant currency
growth with market share gains and stable margins
despite severe LatAm macroeconomic recession
Source: Company filings
(1) Awarded by the Great Place to Work Institute®
(2) As of 3Q 2017
Revenue Diversification Overview
Geography
Vertical
Offering
Americas
40%
EMEA
11%
Services
73%
Solutions
27%
Brazil
50%
Financial
Services
31%
Multi-
Sector
22%
Telco
47%
Revenue by Offering, Vertical and Geography(2)
5. 5
Operational
Platform
<20k Workstations 91k+ Workstations
Sources: Company filings, press releases
(1) As of 3Q 2017; revenue represents last twelve months revenue as of 3Q 2017
1999 2014-Present(1)
Strengthen CRM BPO market
leadership position, with
whitespace remaining across
verticals and geographies
Expand addressable market via
higher value-added solutions
Accelerate profitable growth
with mainstream digital
Margin expansion due to world-
class operating model
2017+
TEF cost center
Pure-play call center
Limited geographic scope
Public Company
Diversified CRM solutions
#1 player in Latin America
Value
Proposition
Revenues
($Bn)
<0.5
1.9
Scope of
Services
Services
73%
Solutions
27%
Services
100%
Client
Base
Non-TEF
62%
TEF
38%
TEF
~90%
Non-TEF
~10%
We Have Evolved From A Call Center of Telefonica to LatAm’s #1 CRM
BPO Solutions Provider
6. 6
Sources: Company filings
(1) Client retention is based on an average of the last three years
(2) As of 2016; length of relationship statistic excludes Telefonica
Long-Lasting, Blue-Chip Client Base
Highest client retention in the market, driven by excellence in service offering
Tech
Other
Telcos
Financial Services
98.7% Client
Retention(1)
10+ year relationship
with ~60% of clients
5+ year relationship
with 80% of clients (2)
Loyal Client Base With Best-In-Class Retention
Global
Transportation &
Ridesharing App
Global Technology &
Phone Company
Unilever
ConectCar
7. 7
We Are The Only Scale Provider of Differentiated CRM BPO Solutions
in LatAm
Uniquely Positioned to Capture Digital Growth
The Only Platform to Serve Large
Clients Across LatAm
Mexico
25%(1)
Brazil
25%
Argentina
18%
Chile
25%
Peru
40%(1)
Colombia
9%(1)
2016 LatAm CRM BPO market share (%)
Atento #1 position
Atento #4 position
We Provide Differentiated
End-To-End Customized Solutions
Relevant role in the client’s value chain with
higher specialization and customization
Fully integrated with client’s tools and
processes
Intelligence and tools developed and
provided by Atento
Strong momentum with leading, tech-
enabled, global digital customers
Sources: Frost & Sullivan, Gartner
(1) Represents local market share (defined as revenues generated and invoiced in the country with local clients)
8. 8
Shareholders structure
Post Secondary Offering on Nov 2017Post IPO on Oct 2014
84.8%
15.2%
Bain Capital Free-float
65.6%
34.4%
Bain Capital Free-float
TSO
% of Total
Shares
TSO
% of Total
Shares
Bain Capital 62,660,015 84.8% 48,520,671 65.6%
Free-float 11,249,041 15.2% 25,388,385 34.4%
Total Shares 73,909,056 100.0% 73,909,056 100.0%
Post IPO on Oct 2014
Post Secondary
Offering on Nov 2017Shareholders
Structure
TSO
% of Total
Shares
Bain Capital 62,660,015 84.8%
Free-float 11,249,041 15.2%
Total Shares 73,909,056 100.0%
Post IPO on Oct 2014Shareholders
Structure
TSO
% of Total
Shares
TSO
% of Total
Shares
Bain Capital 62,660,015 84.8% 48,520,671 65.6%
Free-float 11,249,041 15.2% 25,388,385 34.4%
Total Shares 73,909,056 100.0% 73,909,056 100.0%
Post IPO on Oct 2014
Post Secondary
Offering on Nov 2017Shareholders
Structure
62,660,015
10,959,496
73,619,511
10. 10
Clear Leader in the
Structurally Attractive
LatAm CRM BPO Market
#1 player in large &
growing LatAm market
Positive macro outlook
supports growth
Structurally attractive
LatAm CRM BPO market
dynamics
Long-term client-specific
secular growth trends
1
World-Class Operating
Model with Resilient
Profitability
World-class operating
model generates
enhanced productivity &
resilient profitability
Strength of operating
model enables platform
for margin expansion
3
Strategic Initiatives
Driving Above-Market
Growth
Consolidate leadership in
core voice services
Expand market
opportunity via higher
value-added solutions
Accelerate profitable
growth with mainstream
digital
2
Attractive Financial
Model to Drive Near and
Long-Term Value
Creation
Growth momentum
Margin expansion with
favorable mix shift
dynamics
Cash generation profile
supports growth & new
dividend policy
Sound & flexible capital
structure with reduced
cost of debt
5
Clear Plan to Drive Shareholder Value Creation
Continued focus & execution of our strategy
High Performing
Organization
Highly experienced
management team with
strong track record
Unparalleled culture
amongst market and
LatAm peers
4
Focus on sustained
profitable growth
11. 11
17%
9%
7%
4%
3%
40%
25% 25% 25%
18%
9% 9%
6%
4%
2%
LatAm Global U.S. Domestic
2016-2022E CRM BPO revenue CAGR (%)
1 #1 Player in a Large & Growing LatAm CRM BPO Market
Highly diversified, hard to replicate pan-LatAm footprint
The Industry’s Clear #1
Provider in LatAm
Significant Pan-LatAm
Presence & Leadership
Superior LatAm CRM BPO
Growth Rates
~2x greater
relative
market share
2016 LatAm CRM BPO market share (%)
$10Bn
LatAm CRM BPO Market
2016 CRM BPO market share by country (%)
#2
(1)
ArgentinaBrazilChileMexicoPeru SpainColombia
#4
#1
#1 #1 #1
#1
(1)
# denotes market position
Source: Frost & Sullivan, Informa D&B (DBK)
(1) Represents local market share (defined as revenues generated and invoiced in the country with local clients)
(2) Represents 2015 market share
(3) Represents 2016E-2020E CAGR
(1)
(3)
(3)
(2)
12. 12
Consolidate Leadership
in Core Voice Services
2 Clear Strategy to Deliver Above-Market Growth
Integration of our core services
& vertical expertise drives end-
to-end, tailored BPO
solutions
Recent M&A and strategic
alliances increases solutions
capabilities
High-growth, differentiated
solutions expands the market
opportunity & growth
potential
Growth of solutions drives
margin improvement
Significant whitespace
remaining in our core business
across all verticals
Leverage industry-leading
platform to capture large,
growing Brazil opportunity
Further capitalize on the fast
growing U.S. nearshore
market
Strong & healthy TEF
relationship
Complete set of digital
solutions across the customer
experience value chain
Digital solutions represent the
fastest-growing delivery
channel
Our growing digital business
delivers significant efficiencies
for clients
Keepcon partnership bolsters
artificial intelligence (AI) and
analytics capabilities
Expand Market Opportunity Via
Higher Value-Added Solutions
Accelerate Profitable Growth
With Mainstream Digital
Strategic Initiatives to Deliver Above-Market Growth
Successfully executed our strategy with additional opportunity to capture growth
13. 13
$2.5Bn
Market
2013 2014 2015 2016
2 Significant Whitespace Remaining in Our Core Services
Highly focused on diversifying our revenue base & gaining market share
Atento
White
Space 7%
2016-2022E
Market CAGR
White
Space
8%
2016-2022E
Market CAGR
$3.1Bn
Market
Atento Atento
White
Space
$2.5Bn
Market
7%
2016-2022E
Market CAGR
2013 2014 2015 2016 2013 2014 2015 2016
Atento Financial Services RevenueAtento Non-TEF Telco Revenue Atento Multi-Sector Revenue
Sources: Frost & Sullivan, internal estimates
(1) CCY revenue
(2) LatAm CRM BPO market share (2016)
Consolidate Leadership
in Core Voice Services
Expand Market Opportunity
Via Higher Value-Added Solutions
Accelerate Profitable Growth
With Mainstream Digital
Strong Historical Growth Across Verticals…
…With Significant Whitespace Remaining(2)
LatAm CRM BPO Financial Services MarketLatAm CRM BPO Non-TEF Telco Market LatAm CRM BPO Multi-Sector Market
3%
Market
Share
26%
Market
Share
10%
Market
Share
14. 14
Quarterly revenue growth indexed to 100 (CCY)
Strong & Healthy TEF Relationship
Increasing share of wallet via broad, diverse
portfolio of services and solutions across 12
countries
Long-term TEF partnership governed by Master
Services Agreement (MSA) and importance of
relationship reaffirmed
− Brazil and Spain extended to 2023, aligning
revenue targets to current operating conditions
and maintaining total level of commitment
− Atento guaranteed to maintain at least current
share of wallet, remaining the largest service
provider to Telefonica
− Payment terms and invoicing process improved in
all key markets
2
Significant Reduction in TEF Exposure
Recent Results Illustrate Return to Stability
Client base split (%)
Telefonica Relationship Provides Highly Visible, Recurring Revenue
Base
2014 3Q 2017
Non-TEF
53%
TEF 47 %
Non-TEF
62%
TEF 38%
1999
Non-TEF
10%
TEF 90%
Return to Stability
Consolidate Leadership
in Core Voice Services
Expand Market Opportunity
Via Higher Value-Added Solutions
Accelerate Profitable Growth
With Mainstream Digital
100 98
1Q
2015
2Q
2015
3Q
2015
4Q
2015
1Q
2016
2Q
2016
3Q
2016
4Q
2016
1Q
2017
2Q
2017
3Q
2017
Atento Revenues From Telefonica
15. 15
2 Solutions Integrate Our Core Services With Our Industry Expertise To
Offer End-To-End Business Process Outsourcing
Consolidate Leadership
in Core Voice Services
Expand Market Opportunity Via Higher Value-
Added Solutions
Accelerate Profitable Growth
With Mainstream Digital
Our Experience In Vertical Industries
Consumer Goods
Financial Services
Fixed / Mobile / Pay TV
Back Office
Sales Customer Care Tech Support Collections
Insurance
Management
Advanced Technical
Support
+ Omni-Channel Capabilities
Analytics
Process Intelligence
+ Client Insights
Agent-Based
Core Voice
APV
Self-Service
Core Voice
Speech to text
IVR
Agent-Based
Digital
email
Self-Service
Digital
WRTC
APP
site
+ Core Service Offering
Retail
Utilities
Telecom
TechnologyTechnology
= End-To-End Solutions Tailored To Client Needs
Credit
Management
(Credit Cards/Loans/Payroll)
E2E
Collections
16. 16
Credit
Analysis &
2 Credit Management Solution Case Study For
Auto Loans Generation
Consolidate Leadership
in Core Voice Services
Expand Market Opportunity Via Higher Value-
Added Solutions
Accelerate Profitable Growth
With Mainstream Digital
Vehicle sold
Document
Gathering
Bank
Approval
Payment
orderVehicle sold
Auto loan
request
Payment
order
• The credit was
released to the
consumer
Document
Gathering
Credit
Analysis
Bank
Approval
Post-
payment
confirmation
• Reseller requested
to the bank
representative to
start the loan
process
Auto loan
request
• The bank agent
gathered all
documents from
consumer, making
physical copies
• The bank agent
queried the credit
engine of the bank,
creating a proposal
on the system
• The bank agent got
the credit approval
• Atento validated
the documents and
checked for fraud
and credit risks
after the payment
was done
• Atento sent the
confirmation and
stored the digital
documents
• Atento’s performs
all validations
integrated with the
bank legacy
systems and credit
and risk bureaus
• The credit is
released to the
consumer
• Reseller offers a
credit option to the
buyer
• The reseller opens
the Atento App and
captures all
documents
• Atento sends to
the bank the
authorization of
payment
CLIENT RESULTS
12K Resellers Using
The Solution
Workflow Reduction
From 8 Days To 30
Minutes
OLD
WORKFLOW
Cost Reduction
$63MM AnnuallyNEW
WORKFLOW
ResellersBankAtento
1 HC per
reseller
8 days
30 minutes
Fraud Control
Post-
payment
validation
17. 17
2 Expanding Into Higher Value-Added Solutions Increases The
Addressable Market And Enhances Customer Experience
Consolidate Leadership
in Core Voice Services
Expand Market Opportunity Via Higher Value-
Added Solutions
Accelerate Profitable Growth
With Mainstream Digital
Sources: Frost & Sullivan, internal estimates
Evolving To Solutions According
To Clients Needs
From Core Services…
Fixed revenue model
Use of client’s tools and processes
Contact channels not integrated
…To End-To-End Solutions
Success fee revenue model
Relevant role in the client’s value
chain with higher specialization
and customization
Fully integrated with client’s tools
and processes
Intelligence and tools developed
and provided by Atento
Accelerating Capabilities
Through Targeted M&A
Leading provider of back office
credit management for the
financial services
Leading provider of end-to-end
collections solutions, through
business intelligence and analytics
Expanding Into Attractive
Markets With Growth Potential
Still a highly
insourced
market (~65%
in Brazil)
~2%17% ~20%
+37%
Atento
Market Share
9.5
9.5 9.5
2.5
1.0
2016 BPO
LatAm Market
E2E Collections Credit
Management
Revenues ($Bn)
Leading management consulting
firm in Brazil and Latin America with
strong expertise in process
consulting
18. 18
Increasing Solutions Revenue Mix
2
Higher Value-Added Solutions
to Drive Profitability
Growth Into Higher Value-Added Solutions Drives Margin
Improvement
Consolidate Leadership
in Core Voice Services
Expand Market Opportunity Via Higher Value-
Added Solutions
Accelerate Profitable Growth
With Mainstream Digital
Segment breakdown by % of solutions and adjusted EBITDA marginSolutions as a % of revenue
(1) CCY revenue CAGR from 1Q 2015 to 3Q 2017
(2) Adjusted EBITDA margin and percent of revenue from solutions as of 3Q 2017
23.8%
27.0%
1Q 2015 3Q 2017
15%5%
50%0%
Brazil
Americas
EMEA
25%
10%
%Margin(2)
% Revenue from
Solutions(2)
19. 19
2 Evolving Core Services Offering Into A Complete Digital Portfolio, To
Support Out Clients’ Needs
Consolidate Leadership
in Core Voice Services
Expand Market Opportunity Via Higher Value-
Added Solutions
Accelerate Profitable Growth
With Mainstream Digital
Core Service Offering
Back Office
Sales Customer Care Tech Support Collections
Digital
Sales
Lead generation,
online sales
portal, mobile
apps
Digital
Customer Service
Omni-channel
platform, BOTs,
analytics
Digital
Collections
Negotiation portal,
mailing enrichment,
scoring, BOT
Digital
Back Office
Electronic document
management, process
digitalization
= Complete Set of Digital Solutions
+ Digital Capabilities
AnalyticsSelf-Service Digital
WRTC
APP Bots
Site
Agent-Based Digital
email
20. 20
2 Digital Sales Case Study For A Retail Bank
Consolidate Leadership
in Core Voice Services
Expand Market Opportunity Via Higher Value-
Added Solutions
Accelerate Profitable Growth
With Mainstream Digital
10MM Page
Views In 2016
$2.2MM Cost
Reduction
CLIENT
RESULTS
Atento’s Digital Sales
Solution: encompassing
the entire sales cycle,
from client attraction to
sales conversion
200K Sales With No
Human Interaction
21. 21
2 Leveraging Partnerships To Accelerate Digital Execution
Keepcon expands AI & automation capabilities of Atento’s omni-channel platform
Consolidate Leadership
in Core Voice Services
Expand Market Opportunity Via Higher Value-
Added Solutions
Accelerate Profitable Growth
With Mainstream Digital
Integrated Solution
Semantic technology based solutions to
manage in real time customer engagement through
social media, enabling monitoring of customer
sentiment, root/cause analysis and automatization
of customer management
Analytics
Generation of predictive analytics in real time,
classifying to the maximum level of capillarity and
precision
AI
Semantic technology based artificial intelligence
allowing automatic actions
50+
Clients Already Use The Solution
+200MM
Messages Monitored And Managed Per Month
22. 22
3 World-Class Operating Model Generates Enhanced Productivity &
Resilient Profitability
Disciplined Commercial
Execution
Disciplined annual approach to actively ensure inflation pass-throughs are
contractually applied
Consultative approach with clients yields increased mix of higher value-added
solutions
Best-In-Class
Operational Excellence
Four centralized operational command centers to manage global processes
Best-in-class operational productivity levels
Leading HR
Effectiveness
Innovative HR processes & tools to optimize agent lifecycle and achieve below
industry agent turnover
− Sourcing & Selection: integrated search channels with analytics-based
applicant process automation
− Training & Development: customized training of best-in-class practices that
integrate both digital and face-to-face
Site Footprint
Optimization
Relocation of sites to tier 2 cities
Increases employee retention & reduces costs
23. 23
4 Highly-Experienced Management Team With Strong Track Record
Seasoned team with strong operating experience
Alejandro Reynal
Chief Executive Officer
17+ years of international experience in CRM BPO sector
Appointed CEO in 2011 while Atento was still part of Telefonica
Visionary leader who consolidated and strengthened the company’s position
as a global leader in the CRM BPO sector
25+ years leading the finance function at
companies in various industries
Previously held CFO positions at Sky Brazil,
Astra Zeneca Brazil and Philips Oral
Healthcare
17+ years at Atento
Expanded Atento’s client base to blue-chip
financial services companies
Mario Camara
Brazil
Mauricio Montilha
Chief Financial Officer
15+ years of HR experience in the CRM BPO
and retail industries
Held various leadership positions at Atento
including EMEA Regional HR Director and
Corporate L&D Director
15+ years of experience in customer service
and contact centers
Previously held customer service leadership
positions at Avianca Holdings
Rodrigo Llaguno
Mexico
Iñaki Cebollero
Chief People Officer
15+ years in the CRM BPO industry
Held various leadership positions at Atento
including Multisector Market Business Director
Juan Gamé
Americas South
12+ years management experience in the CRM
BPO sector
Previously General Director of Operations of
Orange Spain
José María
Pérez Melber
EMEA
25+ years in customer experience and contact
centers strategy
Previously a managing partner at Accenture
Michael L. Flodin
U.S. & Nearshore
Mariano Castanos
Commercial Director
14+ years at Atento
Held positions in various countries as a
business developer and general manager
including Argentina Commercial Director and
Spain General Manager
Rogerio Ribeiro
CIO
25+ years of IT experience
Held IT positions at SAP, Eli Lilly, AstraZeneca
and MSD
Joined Atento in 2014 as Global Financial
Systems and Shared Services Director
24. 24
4 Unparalleled Culture Amongst Market and LatAm Peers
Consecutive years named as
One of the Best Companies
to Work for in Latin America
7
Consecutive years, and only company in
the CRM BPO sector, in the World´s 25
Best Multinational Workplaces ranking
4
Only CRM BPO
Player in Top 25
World’s Best
Multinational
Workplaces
Engaged
Employees
= Superior
Customer
Experience
Talented
Employees
Distinct Industry Recognition
Creating Value Through
A Focus on People
High Performing Organization With Consistent Recognition
25. 25
5 2017 Actions Have Enabled Near-Term Value Creation
EPS Growth & Shareholder Value Creation
Near-Term Value Creation Levers
Accelerated top line growth in 3Q17, resulting in increased run-rate
Strong free cash flow conversion supports growth & new dividend
policy
− Implemented first-time dividend of $0.3384/share
Refinanced debt improves capital structure & reduces interest expense
Shares liquidity boosted by Bain´s first follow on, allowing for a
stronger and more diversified shareholders base
Clear path to capture significant EPS growth in the near & medium-term
26. 26
Consolidated
5 Solid Revenue Evolution As We Execute Our Growth Strategy
Key Commentary
Source: Company filings
Positive recent revenue momentum highlighted by growth in Non-TEF
TEF & Non-TEF Revenue Growth
7.5 7.7
9.6
(1.4)
4.8
9.0
2013 2014 2015 2016 YTD 3Q17
CCY growth (%)
Revenue
($MM):
2,341 2,298 1,950 1,756 1,443 501
4.7 4.4
2.5
(7.8)
(3.5)
0.2
10.3 10.8
15.9
3.8
11.0
15.3
2013 2014 2015 2016 YTD 3Q17
Non-TEFTEF
CCY growth (%)
Non-TEF growth continues to
bolster revenues
TEF revenues have stabilized
back to early 2015 levels
2016 results negatively impacted
by severe LatAm macroeconomic
recession
27. 27
Accelerate company’s organic
growth trajectory
Pursue targeted & accretive M&A
Return capital to shareholders
− Dividend of $0.3384/share
Strong Cash Flow Enables
Capital Allocation Priorities
5 Strong Cash Generation Profile Supports Growth
Profile & New Dividend
Source: Company filings
(1) Free cash flow before interest and acquisitions as a percentage of adj. EBITDA
$MM 2014 2015 2016 YTD 3Q17
Adj. EBITDA 306.4 249.7 221.9 165.8 59.7
Free Cash
Flow before
interest and
acquisitions
90.8 (8.7) 142.6 53.3 47.6
Cash
Conversion(1) 29.6% (3.5%) 64.3% 32.1% 79.7%
1
2
3
Strong Cash Flow GenerationKey Commentary
2015 cash conversion impacted by
a high-growth year (NWC impact)
Higher cash conversion in 2016 as
a result of one-off working capital
impacts
3Q 2017 cash conversion of
79.7%
28. 28
Source: Company filings
(1) Represents refinanced interest rate that corresponds to 3Q 2017 debt
(2) Cross currency swaps covers 100% of interest until 2022 and 30% of principal until 2020
US$MM 3Q 2016 3Q 2017
Brazilian debenture (CDI + 3.75%)(1)
211.8 22.5
6.125% senior secured notes due
2022(1)(2) 297.4 393.8
BNDES credit facility 76.8 56.3
Other borrowings 27.8 33.1
(=) Total Debt 613.9 505.7
Total Cash 177.9 162.8
(=) Net Debt 436.0 342.9
Net Leverage (Net Debt / LTM Adj.
EBITDA)
1.9x 1.5x
5 Sound & Flexible Capital Structure
Capital Structure Overview Key Commentary
Continued deleveraging
2017 debt refinance impact:
− Average debt maturity increase from 2.3 to 4.1
years
− Annual run-rate interest savings of $10-15MM as
of 2018
− $46MM positive cash impact in 3Q2017 from the
unwinding of existing hedges
Cash and Cash equivalents of $163MM, and existing
revolving credit facility of $105MM, totaling Liquidity
of $268MM
Reduced cost of debt enhances near-term EPS growth
29. 29
3Q YTD
US$ MM, except per share 2017 2016 2017 2016
P&L Statement
Revenue 501.3 443.7 1,443.0 1,315.5
CC Growth(1) 9.0% 4.8%
Adjusted (2)
EBITDA 59.7 60.5 165.8 163.3
CC Growth(1) (3.6%) (3.4%)
Margin 11.9% 13.6% 11.5% 12.4%
Net Income(3) 17.6 14.5 39.1 33.1
EPS(3) $0.24 $0.20 $0.53 $0.45
Cashflow, Debt and Leverage
FCF Before Net Interest and
Acquisitions(4) 47.6 46.7 53.3 52.9
Net Debt 342.9 436.0
Leverage (x) 1.5 1.9
5 Recent Quarterly Financial Results
(1) Unless otherwise noted, all results are for 3Q 2017; all revenue growth rates are on a constant currency basis, year-over-year, and exclude the effect of our Morocco business
divested in September, 2016. Please refer to the MD&A section of the 3Q 2017 6K for more details
(2) EBITDA, Adj. EBITDA and Adj. Earnings are Non GAAP measures
(3) Adjusted Earnings and Adjusted EPS attributable to Owners of the parent
(4) We define Free Cash flow before interest and acquisitions as operating cashflow minus Capex payments and income tax expenses
Key Quarterly Commentary(1)
Continued positive revenue trend: up 9.0%
‒ 15.3% growth from multisector driven by new service/client
wins in all regions and new acquisitions
‒ Revenues from multisector up 420bps to 62.0%
‒ TEF revenues stable YoY
‒ Improved revenue mix: higher value-added solutions up
230bps to a record 27.0% of revenues in 3Q
Adj. EBITDA margins in line with FY 2017 guidance
‒ Adjusted EBITDA margin impacted by ramp up of new clients
Strong 20% YoY growth in recurring EPS
‒ Interest expense decline due to debt refinance
Sound cash flow generation reducing leverage to 1.5x
‒ FCF before interest and acquisitions totaled $48 million, in
line with seasonality
31. 31
Brazil: Sequential Strong Growth Driven by Multisector
Highlights(1)3Q YTD
US$ MM 2017 2016 2017 2016
Revenue 248.5 217.2 720.3 601.9
CC Growth(1) 11.4% 7.5%
Reported
Operating
Income/(loss)
11.4 15.1 43.5 32.5
CC Growth(1) (26.5%) 25.0%
Adjusted
EBITDA(2) 32.1 33.1 95.1 85.1
EBITDA Margin(2) 12.9% 15.2% 13.2% 14.1%
Revenues up 11.4% in 3Q and 7.5% YTD
‒ Strong 18.3% growth in Revenues from multisector
supported by new contract wins in new services and run rate
of acquisitions
‒ Revenues from multisector clients up 410bps to 69.9%
‒ TEF revenues down 1.8% YoY driven by volume reductions
‒ Revenue mix from higher value-added solutions up 80 bps to
37.5%
‒ ~1,600 Workstations won in Q3, mostly from multisector
Profitability
‒ Adjusted EBITDA margins declined 230bps YoY and 90 bps
YTD
‒ Margin impacted by new clients’ implementation costs and
higher labor contingencies
(1) Unless otherwise noted, all results are for 3Q 2017; all growth rates are on a constant currency basis and year-over-year
(2) EBITDA and Adj. EBITDA are Non GAAP measures
32. 32
Americas: Resuming Growth With Improved Revenues
3Q YTD
US$ MM 2017 2016 2017 2016
Revenue 198.4 179.8 557.5 546.1
CC Growth(1) 10.4% 3.3%
Reported
Operating
Income/(loss)
7.8 12.5 25.0 41.4
CC Growth(1) (38.1%) (39.2%)
Adjusted
EBITDA(2) 23.7 24.2 62.9 71.9
EBITDA Margin(2) 11.9% 13.5% 11.3% 13.2%
Revenues up 10.4% in 3Q 2017
‒ Revenues from multisector up 14.0%, supported by new
client wins and volume increases in Argentina, Colombia,
Chile and U.S. Nearshore
‒ Revenues from multisector up 220bps to 58.7%
‒ TEF revenues up 5.6% reflecting positive results in Argentina,
Chile and Colombia
‒ Revenue mix from higher value-added solutions continued to
present significant growth, up 570 bps YoY to 18.0%
Profitability
‒ Adjusted EBITDA margin 160 bps below 2Q 2016, driven by:
‒ Ramp up from new contracts in Colombia and Chile and
U.S Nearshore
‒ Volume reductions in some clients in Mexico
Highlights(1)
(1) Unless otherwise noted, all results are for 3Q 2017; all growth rates are on a constant currency basis and year-over-year
(2) EBITDA and Adj. EBITDA are Non GAAP measures
33. 33
EMEA: Stable Revenue Trend in Multisector, Leading to an Improved
Business Mix
3Q YTD
US$ MM 2017 2016 2017 2016
Revenue 55.1 47.1 166.9 168.7
CC Growth(1) (4.2%) (0.5%)
Reported
Operating
Income/(loss)
(2.4) (1.5) 0.7 (7.1)
CC Growth(1) N.M. N.M.
Adjusted
EBITDA(2) 3.5 4.7 11.6 11.0
EBITDA Margin(2) 6.4% 10.0% 7.0% 6.5%
Revenue mix from multisector up 1.3% in 3Q
‒ Increase in Revenues from multisector, up 1.3%, reflecting
new client wins
‒ TEF revenues down 7.3% in the quarter, reflecting lower
volumes in Spain
‒ Multisector up to 38.7% of revenues, from 36.5%
‒ Revenue mix from higher value-added solutions flat at 11.0%
Profitability
‒ Adjusted EBITDA Margin declined reflecting sequential volume
reductions in Spain
Highlights(1)
(1) Unless otherwise noted, all results are for Q3 2017; all revenue growth rates are on a constant currency basis and year-over-year and exclude the effect of Morocco. Please
refer to the MD&A section of the 3Q 2017 6K for more details
(2) EBITDA and Adj. EBITDA are Non GAAP measures. For more information, see Glossary page
34. 34
Strong Cash Flow Generation and Enhanced Capital Structure
Free Cash Flow (FCF) US$ MM 2014 2015 2016 YTD 3Q 2017
Operating Cash Flow(1) 226.8 101.6 235.7 105.5 65.5
Cash Capex(2) (117.0) (94.1) (68.9) (37.3) (13.1)
Income Tax Paid (19.0) (16.2) (24.3) (14.9) (4.8)
Free Cash Flow before interest and Acquisitions 90.8 (8.7) 142.6 53.3 47.6
Adj. EBITDA to Cash Conversion (%) 29.6% (3.5%) 64.3% 32.1% 79.7%
Acquisitions(3) (6.3) - (6.2) (27.1) -
Net Interest Paid (72.5) (48.4) (69.5) (19.4) 9.1
Free Cash Flow (FCF) 12.0 (57.1) 66.9 6.8 56.7
Free Cash Flow before Interest and Acquisitions reached $48 million in the quarter
‒ Adj. EBITDA to cash conversion of 79.7% in the quarter
Debt refinance concluded in 3Q
‒ Improved cashflow, EPS accretion and increased flexibility
Net leverage down YoY and sequentially to 1.5x in 3Q 2017
First dividend payment of $25mm ($0.34/share) declared on Oct 31st
(1) We define Operating Cash flow as Net Cash flow from/(used in) operating activities (as per 6K) adding back net interest and income tax expenses
(2) Does not consider acquisitions
(3) Net of acquisitions of subsidiaries and sales of subsidiaries
(4) Net interest paid includes $46.0 million gain from unwind hedging instruments related to the old bond, partially offset by $21.6 million expenses related to the refinancing
(4)
Editor's Notes
We are the leading CRM BPO provider in Latin America with a comprehensive geographic footprint across the region
We offer a comprehensive portfolio of CRM BPO services that deliver results on behalf of our clients, ranging from customer service, sales, credit management, technical support and back office
Increasingly, we offer end-to-end solutions for our clients, which allows us to provide higher value at increased profitability
Our services are delivered via a robust multi-channel offering including digital (SMS, e-mail, chatrooms, social networks and apps), telephone and onsite
We are in a “return to growth” phase as evidenced by our strong YTD results (and upgraded guidance after 2Q earnings)
We grew third quarter revenue 9% CCY
What started as a captive call center with limited services and clients has grown to the #1 player in LatAm capable of offering complex end-to-end solutions and massive operational scale
In 1999, we operated in 2 countries and now play in 13 countries globally while diversifying the complexity of the services we offer our clients, with nearly 30% of our revenues from solutions
Our client base has also significantly diversified from ~90% TEF in 1999 to less than 40% today
Atento is poised to enter its next phase of growth
We have strengthened our LatAm leadership position & possess all of the capabilities, including digital, to capture large & growing markets
We work with market leaders in sectors such as telecommunications, financial services and multi-sector, which for us comprises technology, consumer, insurance/healthcare among others and we continue to diversify our client-base – primarily in multi-sector where new opportunities are now open to us given our new ownership
We have been successful in generating long lasting relationships given our ability to consistently deliver quality services and evolve in alignment with our clients’ business models and requirements
Our retention rate remains at an outstanding 98.7% rate over the past three years
We add value to our client’s business results: we deliver their brand promise utilizing our deep vertical expertise/market understanding & operational capabilities
Our impact further embeds us into their organization: As users change how they interact with their brands, providers must be more holistic in their offering & capabilities and no one can provide that in the way that we can in our core markets
As such, high-barriers to switching and significant switching costs develop for clients which embeds our relationship with them
As an indication of our high customer satisfaction, we have had relationships for five or more years with ~80% of our clients
We have a set of customizable, end-to-end solutions that are scalable and seamlessly integrated with client’s processes which has contributed to a leadership position across LatAm (#1 market share in Mexico, Brazil, Argentina, Chile, Peru, and Colombia)
We are globally recognized for our market leadership and are the only player that has deep operating capabilities across the entire LatAm region
This combination of being integrated with client´s processes and Market leadership puts us in a unique position to lead the digital transformation of our clients
These are the pillars of how we plan to lead the growth and drive shareholder value creation
Clear leader in attractive LatAm market: LatAm is the fastest growing market, we are the leading player in the LatAm market and we are set to benefit from a recovering LatAm macroeconomic environment, which is supported by sustainable, secular market & client trends
We have a clear strategy to deliver above-market growth & gain market share to strengthen our competitive position:
Capture significant whitespace in core services within all verticals (Telecommunications, Financial Services, and Multi-Sector) given our scale and expertise and capture fast-growing US Nearshore and Brazil opportunities
Continue evolving towards higher value-added solutions and leveraging our strong relationships/vertical expertise to drive growth
Accelerate our leadership and growth within digital in order to continue to meet the evolving needs of our clients
We have a world class operating model that has demonstrated extraordinary resilience in profitability
The time is now for Atento
Returning top-line growth, lower cost of debt as a result of the refinancing, and strong cash generation profile supports EPS growth and shareholder value creation in the near & long-term
Latin America is a $10Bn market and is the fastest growing CRM BPO market in the world with superior market growth expected to continue for the next 5 years
We are LatAm’s largest player by a factor of ~2 and we have a leadership position across a majority of the countries in LatAm
We have articulated our growth strategy around 3 main initiatives; consolidating our leadership in the Core Voice Services, continuing growth into higher value-added solutions, and accelerated profitable growth with a mainstream digital offering
In our first focus area, there remain significant whitespace opportunities with existing and new clients across our footprint, especially in Non-Telefonica Telcos and financial services
Secondly, we remain focused on expanding into higher value-added, higher margin solutions and expand our capabilities via M&A and strategic alliances
The third focus area is accelerating profitable growth with our digital offering
While digital is ~10% of the market, it represents the fastest growing delivery channel
We have established a dedicated unit, Atento Digital, to accelerate our focus on this key growth area
We have had strong historical growth across all non-Telefonica verticals
We expect to grow above the 7-8% growth forecasted across each vertical
There remains significant whitespace opportunities with existing and new clients across our footprint, especially in non-Telefoncia telcos & financial services
Telcos & financial services are key verticals since they make up ~3/4 of the CRM BPO market in LatAm
Atento has a solid and stable commercial relationship with Telefónica since 1999
The relationship with Telefonica is stable and we continue to win business with more than 400 workstations added in 3Q 2017
Long term Master Service Agreement:
9 year commitment to 2021
Extended to 2023 in Brazil and Spain which reaffirms the importance of the relationship
Annual minimum revenue commitments in each jurisdiction based on 2012 revenues, escalating with certain inflation benchmark for 3 years & stabilizing / tapering off thereafter
We offer end-to-end vertical solutions that are tailored toward the individual needs of our clients
Our vertical-driven solutions portfolio comprises front-end and back-end services and addresses our clients’ most complex business challenges
Our solutions are tailored to address specific client need and at the same time scalable across countries and customers
We leverage our deep industry knowledge and are increasingly embedded in our client processes driving strong businesss outcomes
Communicate how solutions improve operations, workflow and cost
[Atento Team]
Expanding into high value-added solutions increases the addressable market and enhances customer experience
Our continued evolution to solutions directly addresses the evolving needs of our clients
We continue to innovate our capability set, which we have augmented with strategic M&A
These strategic deals unlock additional markets & pockets of opportunity for us, by as much as ~40%, as we expand our CRM BPO capabilities
Solutions, as a percentage of total revenues, increased to 27% as of 3Q which represents a 12% CAGR since the beginning of 2015
Solutions are a higher margin business for us & we are increasing our focus & mix towards solutions
Brazil has the highest percentage of revenue from solutions and consequently carries higher margins as well
In line with market growth trends and client needs, we are evolving our core service offering into a complete digital portfolio
We recently launched Atento Digital, a new business unit integrating all the digital assets we have in our company that fosters development of services to support our clients with their digital transformations
By leveraging our capabilities in this area, we have developed a robust client base and a pipeline for digital services which makes us the leader in Latin America
Communicate how digital improves consumer touch points and costs for clients
[Atento Team]
We are leveraging partnerships to accelerate our execution and enhance our value proposition
Our announced strategic partnership with Keepcon further expands our digital capabilities: we are now able to manage, in real time, customer engagement through social media, enable monitoring of customer sentiment and drive automation
Overall, Keepcon allows us to provide a differentiated digital customer experience, generating increased satisfaction for our own consumers
Acquisitions and partnerships have allowed us to increase the pipeline and solidify our value proposition to our clients
Future plans in M&A would be aimed to expand capabilities in our digital offering
We have actively built a world-class operating model that generates enhanced productivity leading to resilient profitability & also an efficient platform from which to drive expanded profitability
We are focused on our partner-like relationships with our client base as a key competitive advantage. As part of doing so, we continue to engage with our clients and actively ensure wage inflation pass-throughs are applied, as contractually obligated
We have four command centers – one in each of our regions. These centers are pivotal to our strategy of streamlining the efficiency of our operations across our delivery centers and optimizing corporate functionality and management effectiveness through a standardized set of industry-certified processes and capabilities
We have rolled out HR initiatives including establishment of new recruiting channels, implementation of an automated selection tool and new simulation- and web-based training solutions.
We’ve optimized cost to serve through improving facility utilization rate, optimizing lease expenses and reducing employee benefit expenses by focusing on reduced turnover and absenteeism
We have a team that has 1) been largely composed of proven operators at Atento for many years and 2) strengthened with operators who bring years of knowledge/experience and fresh perspective
Managing a workforce of 150k+ in LatAm is not the same as managing 150k+ in the U.S. and you need to understand the market to do so (Atento does)
The focus on our people is so critical because these are the people who talk to your clients’ customers and we want them to be well‐trained, happy and energetic to do so
We do this better than anybody and it has been recognized by Great Place to Work
The company has significant momentum with several strong attributes:
Robust and diversified revenue growth profile ― LatAm is a fast-growing and underpenetrated market
Returning top-line growth driven by non-TEF revenues
Strong cash generation enables capital allocation and supports a new dividend
Prudent capital and ample liquidity: refinanced debt helps to provide a lower cost of debt and drive near-term earnings growth
In the third quarter, revenues increased 9%, driven by strong revenue growth of 15% from multisector clients
We experienced broad-based gains in multi-sector in all our regions, which resulted in an improvement in our revenue mix
In addition, our revenue mix from higher value-added solutions increased by 230 basis points to a new company record of 27%
The refinance improved financial flexibility and solid free cash flow generation allowed us to declare our first dividend payment of USD 25 million on October 31; an important milestone in our trajectory as a listed company
As we move forward, we have a clear set of priorities for our cash
Accelerate organic growth through investment back into the business
Pursue strategic M&A to bolster our capabilities & expand our market opportunities
Return capital via our dividend
Let me give you more details on our prudent capital structure―we have continued deleveraging over the past few years and as of September 30th 2017 we reduced our leverage to 1.5 times over adjusted EBITDA
We refinanced our debt in 2017 which allows us to achieve $10-$15MM in run-rate interest savings as of 2018
We continue to benefit from a return-to-growth trend in the business
CCY Revenues increased by 9% in 3Q
Brazil and Americas continue to outperform with y-o-y constant growth rates of 11.4% and 10.4% respectively
Non-TEF revenues helping to drive growth (18.3% in Brazil and 14.0% in Americas)
Adj. EBITDA margins impacted by ramp up from new contracts in Colombia, Chile, and US Nearshore