2. 2
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 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.
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.
Forward-looking statements can be identified by the use of words such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "intends," "continue“, 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 assumptions that we have made
in light of our industry experience and on our perceptions of historical trends, current conditions, expected future developments and other factors we
believe are appropriate under the circumstances. As you consider this presentation, you should understand that these statements are not guarantees of
performance or results. They involve risks, uncertainties (some of which are beyond our control) and assumptions. 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.
Because of these factors, we caution that you should not place undue reliance on any of our forward-looking statements. Further, any forward-looking
statement speaks only as of the date on which it is made. New 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 Financial Reporting Standards (“IFRS”). We refer to these measures as “non-GAAP financial measurers.” The non-GAAP financial
measures may not be 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.
4. 4
Robust performance in Q1 2015
Solid revenue growth, strengthening the #1 market leadership position in the
BPO CRM LatAm market
— Revenue up 9.5%(1) on constant currency basis to $515.9 million
Combined 13.9% constant currency revenue growth in Brazil and Americas
19.5% constant currency revenue growth in non-Telefónica business, in Brazil
— Relevant client wins across all key verticals and geographies
— On-going SoW expansion through higher value added solutions
Increased profitability in a challenging macro-environment
— Adjusted EBITDA up 11.8% on constant currency basis to $58.3 million, +10bps
— Adjusted EPS up 284% on constant currency basis to $0.20
— Improved operations productivity, reduced staff turnover, and delivered OpEx
efficiencies
— Enhanced capital structure supported by continued deleverage and strengthened
balance sheet
— Net leverage to 1.4x from 2.2x in the prior year period
— Reiterating outlook for 2015
I
II
III
IV
(1) Constant currency revenue growth from continuing operations excludes the Czech Republic, which was divested in December 2014
5. 5
Sustained momentum of the efficiency agenda in 2015
Improved operations productivity and reduced staff turnover
4.3 p.p. y-o-y improvement in billable / payable ratio
~ 1 p.p. y-o-y reduction in turnover
Relevant OpEx efficiencies by leveraging scale and site location
Over 15% savings on key categories by global procurement
56% WS in Tier 2 cities in Brazil, from 54% in Q1 2014
Above-Market
Growth
Best-in-Class
Operations
Inspiring
People
Increased share of higher value added solutions
~ 24% of Revenue (+1.3 p.p. y-o-y)
App. 2,200 workstations worth of business won in Q1
Non-TEF Telco growth gaining speed: 9 deals with 5 clients in 3 countries
Vertical leadership fueling new business: 5 Financial Services deals, with 4
clients in 3 countries
Advancing the US Near-Shore agenda: ~ 120 new workstations
Ongoing people focus: Atento recognized for fifth consecutive year as one
of "The Best Companies to Work for in Latin America”
Q1 2015 results driven by the execution of our StrategyKeyProofPoints
6. 6
Reiterate 2015 outlook and ability to deliver sustainable
earnings growth over time
High visibility
from retained
client base
99%+
revenue
retention
rate
Telefonica
MSA
through
2021
Attractive
market growth
Fast growing
market due to
favorable
industry
tailwinds &
market
dynamics
Double down on
growth agenda
SoW gains
through
increased
higher value
solutions
Ongoing
materialization
of new growth
avenues in
key verticals
and
geographies
Drive efficiency
program to the
next level
Next wave of
cost savings
delivered by
margin
expansion
initiatives
Capital structure
optimization
Enhanced
financial
flexibility and
improved cash
generation
Earnings
growth
8. 8
Q1 Q1
USDm 2014 2015
Revenue 561.3 515.9
CCY growth 9.5%
Adjusted EBITDA 62.8 58.3
Margin 11.2% 11.3%
CCY growth 11.8%
Adjusted EPS $0.06 $0.20
CCY growth 284.4%
Leverage (x) 2.2 1.4
Q1 2015 Financial Highlights
Key highlights
Delivered strong financial results
9.5%(1) CCY revenue growth ex-Czech Republic (13.9% in LatAm(2))
11.8% CCY adj. EBITDA growth
11.3% adj. EBITDA margin, an increase of 10 bps
284.4% CCY increase in adj. EPS
Significant regional progress
Brazil: non-Telefónica client growth driving 11.8% CCY revenue
increase
Americas: double digit CCY revenue growth
EMEA: remains challenged
Continued revenue diversification
Solutions penetration of 23.8% of total revenue (+1.3 p.p. y-o-y)
Non-Telefónica revenue represented 55.1% of total revenue (+2.2
p.p. y-o-y)
Increased financial flexibility
Substantial deleveraging to 1.4x
(1) Excludes Czech Republic, which was divested in December 2014
(2) LatAm includes Brazil and Americas regions
(1)
9. 9
Brazil summary financials
Revenue
11.8% CCY revenue growth, despite adverse macro-
environment
19.5% CCY growth in non-Telefónica revenue driven by
implementation of new clients and SoW gains
1.5% CCY growth in Telefónica revenue driven by
introduction of new services in Brazil
Significant commercial wins during Q1
Approximately 1,100 workstations won
Adjusted EBITDA
Quality growth coupled with successful execution of
margin transformational initiatives
11.2% CCY Adj. EBITDA growth
Excluding Corporate Costs allocation, Adj. EBITDA
margin increased 30 bps to 12.9% (vs. 12.6% in the
prior year period)
Efficiency gains more than offset ramp up of new clients
288.9 264.1
Q1 2014 Q1 2015
35.6
31.7
Q1 2014 Q1 2015
$MM
CCY Growth
Adj. EBITDA margin: 12.3% 12.0%
$MM
CCY Growth +11.8%
Adj. EBITDA margin
ex-corp. costs allocation: 12.6% 12.9%
11.2%
16.5%
10. 10
Americas summary financials
Revenue
Double-digit CCY revenue growth driven by strong
performance across the region and across verticals
13.9% non-Telefónica CCY revenue growth, driven by solid
growth in most markets supported by new and existing clients
Significant commercial wins over the year
Approximately 1,100 workstations won, including more
than 320 workstations in non-Telefónica telco
Added over 120 workstations in US nearshore,
expanding new services to existing customers and
adding new clients
Adjusted EBITDA
7.2% adj. EBITDA growth, driven by strong growth in
main countries
Excluding Corporate Costs allocation, Adj. EBITDA
margin was 14.1%, or flat as compared to last year
Ramp up of new business being offset by gains derived
from efficiency programs
179.1
187.4
Q1 2014 Q1 2015
24.9 23.4
Q1 2014 Q1 2015
CCY Growth +17.3%
CCY Growth
Adj. EBITDA margin: 13.9% 12.5%
Adj. EBITDA margin
ex-corp. costs allocation: 14.1% 14.1%
7.2%
17.1%
$MM
$MM
11. 11
5.4
4.0
Q1 2014 Q1 2015
93.3
64.8
Q1 2014 Q1 2015
EMEA summary financials
Revenue
EMEA remains challenged due to weak Spanish macro-
environment
Revenue decreased by 12.8% CCY, adjusting for the
divestiture of the Czech Republic operation
Positive trend in non-Telefónica revenue growth (ex-public
administrations)
$MM
Adj. EBITDA
margin:
5.8% 6.2%
Adjusted EBITDA
$MM
CCY Growth (15.8)%
40 bps margin expansion y-o-y, driven by positive impact of
the 2014 restructuring and efficiency program
CCY Growth
(7.4)%
12. 12
Balance Sheet Comments
$MM
High liquidity profile through $192.1MM of
available liquidity and €50MM undrawn RCF
Continued deleveraging from 2.2x to 1.4x
Strong balance sheet and continued deleveraging
enhancing our financial flexibility
Q1 2014 Q1 2015
Cash and cash equivalents 218.4 192.1
Total Debt 1,417.3 611.8
Net Debt 670.9 419.8
Net Debt / Adj. EBITDA 2.2 x 1.4 x