Atento. Fiscal 2017 Fourth Quarter and Full Year Results. March 20, Investor Relations Shay Chor

Transcription

1 March 20, 2018 Atento Fiscal 2017 Fourth Quarter and Full Year Results Investor Relations Shay Chor Felipe Joaquim Martins de Souza 1

2 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 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. Other factors that could cause our results to differ from the information set forth herein are included in the reports that we file with the U.S. Securities and Exchange Commission. We refer you to those reports for additional detail, including the section entitled Risk Factors in our Annual Report on Form 20-F. 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. Additional information about Atento can be found at 2

3 Business Highlights and Strategic Overview Alejando Reynal, CEO

4 Fiscal 2017 Q4 and Full-Year Results: Revenue and Adj. EPS Growth Continued revenue growth supported by strong performance in Americas Consolidated revenues up 5.7% in Q4 and 5.1% in FY 2017 Multisector up 8.6% in Q4, growing 150 bps to 61.5% of total. In FY 2017, up 10.9%, and increasing 350 bps to 61.0% Revenue fueled by continued overall strong commercial activity, underpinned by growth in Americas, especially in Argentina, Chile and Colombia Continued evolution into higher value-added solutions, with mix stable YoY in Q4 at 26.4% and up 120bps in FY 2017 to 26.5% TEF revenues stable, up 1.4% in Q4 and down 3.0% in FY 2017 Adj. EBITDA: 11.5% margin in Q4 and in FY 2017, in line with guidance Strong EPS expansion, up 11.4% in Q4 to $0.21, and up 14.8% to $0.75 in FY 2017 Solid Free Cash Flow Generation FCF before interest and acquisitions totaled $26.3 million in Q4 and $81.0 million in FY 2017, delivering 36.6% cash conversion in FY 2017 Net debt stable at $345 million with net leverage at 1.6x in Q Introducing Fiscal 2018 Guidance: Revenue growth of 3% to 6%, Adjusted EBITDA Margin of 11% to 12% 4

5 Solid revenue growth as we executed our strategy in Expanded capabilities to lead in the digital age DIGITAL OFFERING Fastest growing market segment at 12.5% 1 Expanded digital capabilities in AI, automatization, and cognitive technologies BACK OFFICE SOLUTIONS Fast growing market segment at 8.3% 2 Expanded capabilities in business process automation and consulting & credit management END-TO-END COLLECTIONS Dynamic market segment with low levels of outsourcing Expanded capabilities in digital collections platform and all stage collections (early/late) 2. Robust commercial performance delivered strong 10.9% Multisector growth in FY 2017 Continued leadership CRM BPO LatAm market, 17% share (22.9% domestic market) and Digital LatAm market, 11.2% share 3 Non TEF telco business ongoing acceleration, significant developments in Brazil and Spain in 2017 Increasing penetration in fast growing verticals like healthcare, retail, travel and hospitality and consumer technology 3. Revenue diversification at historical levels reflecting value offer evolution and drivers for long term growth Non-TEF 53% MULTISECTOR Non-TEF 61% HIGHER VALUE-ADDED SOLUTIONS Solutions 23.0% Solutions 26.5% Digital 5.2% DIGITAL OFFERING Digital 6.6% TEF 47% TEF 39% Services 77.0% Services 73.5% Other 94.8% Other 93.4% All metrics: % of revenues vs total revenues 1 Source: Frost & Sullivan 2016 and company estimates, 12.5% CAAGR LatAm market 2 Source: Frost & Sullivan 2016, 8,3% CAAGR LatAm market 3 Source: Frost & Sullivan 2016 and company estimates 5

6 Atento s mid term strategy to deliver profitable growth Double down on higher value-added solutions, with strong industry focus EVOLVED VALUE OFFER Accelerate into digital service offering, leveraging Atento s capabilities Strengthen consulting capabilities combined with operational excellence Partner of reference for Digital CX and BPO solutions in LatAm GEOGRAPHIC LEADERSHIP Meaningful presence in the US Nearshore segment DIVERSIFIED CLIENT BASE Strong growth in Multisector: Financial Services, and other fast growing segments such as Healthcare, Retail, Travel & Hospitality, Technology and Consumer Electronics Continued to be the partner of reference for Telefónica Carve-outs in attractive sectors and clients to accelerate growth INORGANIC GROWTH Select acquisitions and strategic partnerships to expand markets and capabilities 6

7 2018 Outlook MACRO & MARKET Favorable macro outlook for all three Regions, expecting positive business & consumer sentiment to prevail over political uncertainties in some markets Stable regulatory framework to support outsourcing of services LatAm CRM BPO market 4.4% growth in 2018 (+1pp vs North America market) 1 Brazil: strengthened market leadership, with solutions and digital offering penetration to be the key growth drivers with Multisector clients GEOGRAPHY Americas: solid performance in Argentina and sustained growth of US Nearshore (market growth of 7.7% in 2018) 2 compensating for macro uncertainties in Mexico EMEA: continued strong Multisector growth and increased penetration of digital offering Clients to remain focused on managing the cost base, while driving digitalization CLIENTS Solid growth in Multisector to approximately 65% of total revenue by 2018YE, with growth from non-tef telcos and Financial Services and solid performance in other verticals Stable outlook in the Telefónica business 1 Source: Frost & Sullivan Source: Frost & Sullivan

8 Financial Results Mauricio Montilha, CFO

9 Consolidated: Revenue Growth with Strong EPS Expansion Highlights (1) Q4 FY US$ MM Except per share P&L Statement Revenue , ,757.5 CC Growth (1) 5.7% 5.1% Adjusted (2) EBITDA CC Growth (1) -8.4% -4.7% Margin 11.5% 13.3% 11.5% 12.6% Net Income (3) EPS (3) $0.21 $0.19 $0.75 $0.65 Reported (4) Net Income (8.9) 16.7 (13.6) 0.2 EPS ($0.12) $0.23 ($0.18) $0.00 Cashflow, Debt and Leverage FCF Before Net Interest and Acquisitions (5) Net Debt Leverage (x) Solid revenue growth Revenues up 5.7% in Q4, reflecting strong results in Americas. In FY 2017, revenues were up 5.1% Multisector up 8.6% in Q4 and 10.9% in FY 2017, driven by new service/client wins in all regions Revenues from Multisector up 150 bps to 61.5% in Q4 and 340 bps to 61.0% in FY 2017 TEF revenues increased by 1.4% in Q4, reflected by gains in Argentina, Chile, Brazil and Colombia. In FY 2017, TEF decreased 3.0% Revenue mix from higher value-added solutions flat at 26.4% in Q4 and up 120 bps to 26.5% in FY 2017 Profitability in line with guidance Margin drop explained by softer volume in specific clients combined with strong comparison basis in Q4 2016, especially in Brazil and Spain Strong EPS growth of 11.4% in Q4 and 14.8% in FY 2017 Mexico & Puerto Rico Natural Disasters impacts in Q4 One-off impact on revenues in Q4 of $8.9 million and $0.9 million in EBITDA Excluding these effects, revenues would have grown 8.4% (1) Unless otherwise noted, all results are for Q4 2017; all revenue growth rates are on a constant currency basis, year-over-year. Please refer to the MD&A section of the 4Q K for more details. (2) EBITDA, Adj. EBITDA and Adj. Earnings are Non GAAP measures. For more information, see Glossary page. (3) Adjusted Earnings and Adjusted EPS 9 attributable to Owners of the parent. (4) Reported Net Income and Earnings per Share (EPS) include the impact of non-cash foreign exchange gains/losses on intercompany balances. (5) We define Free Cash flow before interest and acquisitions as operating cashflow minus Capex payments and income tax expenses.

10 Brazil: Continued Revenue Diversification Highlights (1) Q4 FY US$ MM Revenue CC Growth (1) 2.9% 6.3% Reported Operating income/(loss) (0.2) CC Growth (1) % N.M. Adjusted EBITDA (2) EBITDA Margin (2) 13.2% 16.7% 13.2% 14.8% Revenues up 2.9% in Q4 and 6.3% FY 2017 Multisector up 3.1% in Q4; and up 10.5% in FY 2017 fueled by back-office solutions and strong commercial activity Revenues from Multisector up 20 bps to 69.2% in Q4 and 260 bps to 69.1% in FY 2017 New wins from commercial activity remains solid, while baseline volume growth below economic recovery TEF revenues increased 2.4% YoY driven by higher volumes and decreased 1.9% in FY 2017 Profitability Margin drop explained by softer volume in specific clients combined with strong comparison basis in Q (1) Unless otherwise noted, all results are for Q4 2017; all growth rates are on a constant currency basis and year-over-year. (2) EBITDA and Adj. EBITDA are Non GAAP measures. For more information, see Glossary page. 10

11 Americas: Strong Revenue Growth Across the Region Highlights (1) Q4 FY US$ MM Revenue CC Growth (1) 14.9% 6.1% Reported Operating income/(loss) CC Growth (1) -87.2% -80.7% Adjusted EBITDA (2) EBITDA Margin (2) 10.3% 11.3% 11.0% 12.8% Revenues up 14.9% in Q4 and 6.1% in FY 2017 Revenues from Multisector grew a strong 19.5% in Q4, driven by new client wins and volume increases specially in Argentina, Colombia, Chile and U.S. Nearshore. In FY 2017, MS increased 12.0% Revenues from Multisector up 230 bps to 59.0% in Q4 and 300 bps to 58.0% in FY 2017 TEF revenues up 8.9% in Q4, reflecting positive results in Argentina, Chile and Colombia. In FY 2017, TEF decreased 1.0% Profitability Adjusted EBITDA margin down 100 bps to 10.3%, while FY 2017 margins down 180 bps to 11.0% (1) Unless otherwise noted, all results are for Q4 2017; all growth rates are on a constant currency basis and year-over-year. (2) EBITDA and Adj. EBITDA are Non GAAP measures. For more information, see Glossary page. 11

12 EMEA: Solid Multisector Revenue Growth Highlights (1) Q4 FY USD$MM Revenue CC Growth (1) -6.1% -1.9% Reported Operating income/(loss) (1.2) (1.7) (13.6) (18.1) CC Growth (1) -36.1% -26.2% Adjusted EBITDA (2) EBITDA Margin (2) 5.7% 9.2% 6.6% 7.3% Revenues TEF revenues down 14.9% in the quarter and 5.9% in FY 2017, reflecting lower volumes and strong comparison base in Spain Revenues from Multisector increased 9.6% in Q4 and 5.4% in FY 2017, supported by new contracts/client wins, especially with non-tef Telcos Multisector up 580 bps to 41.8% of revenues in Q4 and 250 bps to 37.8% in FY 2017 Profitability Adjusted EBITDA margin decline reflecting strong comparison base in Q (1) Unless otherwise noted, all results are for Q4 2017; all revenue growth rates are on a constant currency basis and year-over-year. Please refer to the MD&A section of the 4Q K for more details. (2) EBITDA and Adj. EBITDA are Non GAAP measures. For more information, see Glossary page. 12

13 Strong Cash Flow Generation and Enhanced Capital Structure Q4 FY Free Cash Flow (FCF) US$ MM Operating Cash Flow (1) Cash Capex (2) (25.0) (13.2) (61.2) (66.4) Income Tax Paid (5.7) (5.0) (20.6) (24.3) Free Cash Flow before Interest and Acquisitions Adj. EBITDA to Cash Conversion (%) 47.7% 153.6% 36.6% 65.3% Acquisitions (1.5) 0.0 (29.8) (8.6) Net Interest Paid (3) (8.1) (19.4) (27.5) (69.5) Free Cash Flow (FCF) x 2.0x 1.5x 1.0x 0.5x 0.0x 1.5x 1.6x Net Debt / EBITDA $MM 1.8x 1.5x 1.6x Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Net Debt Net Debt / EBITDA Cash conversion of 47.7% in the quarter and 36.6% in FY 2017 Positive cash generation of $23.7 million in FY 2017 after $29.8 million acquisitions, allowing to return capital to shareholders First Dividend of $25.0 million ($0.3384/share) paid on Nov 28th FY 2017 Capex at 3.2% of revenues, versus 3.8% in FY 2016 Above average spare capacity in 2017 Debt refinance concluded in Q3 Improved Cashflow, EPS accretion and increased flexibility Net Debt stable both QoQ and YoY; Gross debt down 9% YoY to $486 million Net leverage at 1.6x vs 1.5x in both Q and Q (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 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, Exceptionally higher cash conversion in Q reflected by one-off impacts from the MSA renegotiation 13

14 Introducing Fiscal 2018 Guidance Guidance - FY 2018 Consolidated Revenue Growth (CCY) 3% to 6% Adjusted EBITDA Margin Range (CCY) 11% to 12% Net Interest Expense $40MM to $45MM Cash Capex (% of Revenue) 3.5% to 4.0% Effective Tax Rate impacting Rec. Net Income 35% to 38% Diluted Share Count ~73.9MM shares Cash conversion as % of Adj. EBITDA (1) 35% to 40% Short Term Trends Revenue growth to be at the bottom of the range for the year in Q1 and Q Seasonally lower Adjusted EBITDA Margins below the range for the year in Q1 and Q (1) Cash conversion equals free cash flow before interest and acquisitions as a percent of adjusted EBITDA 14

15 Summarizing 2017 Recap results in line with guidance and important milestones delivered Topline growth fueled by strong commercial activity, with profitability in line with provided guidance Expanded capabilities in 2017 positions Atento to deliver long term growth and expand leadership in an increasingly digitalized environment Sound cashflow generation, aligned with strategy to continue delivering growth and returning capital to shareholders, with first dividend payment in November 2017 Debt refinance leading to higher financial flexibility and reduction in interest expenses Improved shares liquidity, leading to more diversified investors base Introducing FY 2018 Targets focus on profitable growth and cash generation Favorable macro environment with stable regulatory framework to support outsourcing Revenue growth to come from Multisector clients with focus on higher value-added solutions and digital platform Cash Flow generation to remain solid, supporting growth initiatives 15

16 Appendix About Atento Financial Reconciliations Debt Information Glossary

17 About Atento 17

18 Atento at a Glance Company Overview Leading CRM BPO provider in Latin America and the fourth largest globally by revenue Revenue Diversification Overview Revenue by Offering, Vertical and Geography (2) Growing end-to-end solutions for clients across all verticals & dedicated digital business unit Long-standing relationships with blue-chip clients Offering Services 74% Solutions 26% Superior pan-latam delivery platform 100 contact centers in 13 countries globally 151,000+ employees & 91,000+ workstations globally Unique people focus: only CRM BPO company among the Vertical Telco 47% Financial Services 32% Multi- Sector 21% 25 best multinationals to work for and the only LatAmbased company (1) Proven management team: strong constant currency growth with market share gains and stable margins despite severe LatAm macroeconomic recession Geography Brazil 49% Americas 39% EMEA 12% Source: Company filings (1) Awarded by the Great Place to Work Institute (2) As of FY

19 We Have Evolved From A Call Center of Telefónica to LatAm s #1 CRM BPO Solutions Provider Present (1) Value Proposition TEF cost center Pure-play call center Limited geographic scope Public Company Diversified CRM solutions #1 player in Latin America Strengthen CRM BPO market leadership position, with Scope of Services Services 100% Solutions 26.5% Services 73.5% whitespace remaining across verticals and geographies Revenues ($Bn) < Expand addressable market via higher value-added solutions Client Base Operational Platform Non-TEF ~10% TEF ~90% TEF 39% <20k Workstations 92k+ Workstations Non-TEF 61% Accelerate profitable growth with mainstream digital Margin expansion due to worldclass operating model Sources: Company filings, press releases (1) As of FY

20 Long-Lasting, Blue-Chip Client Base Highest client retention in the market, driven by excellence in service offering Loyal Client Base With Best-In-Class Retention Tech Global Transportation & Ridesharing App Global Technology & Phone Company Other Financial Services ConectCar Unilever Telcos 98.7% Client Retention (1) 10+ year relationship with ~60% of clients 5+ year relationship with 80% of clients (2) 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 Telefónica 20

21 We Are The Only Scale Provider of Differentiated CRM BPO Solutions in LatAm Uniquely Positioned to Capture Digital Growth We Provide Differentiated End-To-End Customized Solutions The Only Platform to Serve Large Clients Across LatAm 2016 LatAm CRM BPO market share (%) Mexico 25% (1) Colombia 9% (1) Brazil 25% Peru 40% (1) 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, techenabled, global digital customers Chile 25% Argentina 18% Atento #1 position Atento #4 position Sources: Frost & Sullivan, Gartner (1) Represents local market share (defined as revenues generated and invoiced in the country with local clients) 21

22 Improved Macro Economic Environment GDP YoY % change 2015A 2016A 2017E 2018E 2019E World Output United States Euro Area Spain Emerging Market and Developing Economies Latin America and the Caribbean Argentina Brazil Chile Colombia El Salvador Guatemala Mexico Panama Peru Puerto Rico Uruguay Source: IMF 22

23 Shareholders Structure Shareholders Structure Post IPO on Oct 2014 TSO Post Secondary Post IPO on Shareholders Oct 2014 Post IPO Shareholders on Oct 2014 Offering on Nov 2017 Structure Structure % of Total Shares Post Secondary Post IPO on Oct 2014 Offering on Nov 2017 Post Secondary % of Total % of Offering Total on Nov 2017% of Total TSO TSO TSO Shares Shares Shares Post S Offering Bain Capital 62,660,015 Bain Capital 84.8% 48,520,671 62,660,015 Bain Capital 65.6% 84.8% 62,660,015 48,520, % 65.6% 48,520,67 Free-float 11,249,041 10,959,496 Free-float 15.2% 25,388,385 11,249,041 Free-float34.4% 15.2% 11,249,041 25,388, % 34.4% 25,388,38 Total Shares 73,909,056 73,619,511 Total Shares 100.0% 73,909,056 73,909,056 Total Shares 100.0% 100.0% 73,909, % 73,909,05 TSO 15,2% 34,4% 65,6% 84,8% Bain Capital Free-float Bain Capital Free-float 23

24 Financial Reconciliations

25 Adjustments to EBITDA by Quarter Fiscal 2015 Fiscal 2016 Fiscal 2017 ($ in millions) Q1 Q2 Q3 (1 ) Q4 (1 ) FY Q1 Q2 Q3 (1 ) Q4 (1 ) FY Q1 Q2 Q3 (1 ) Q4 (1 ) FY (4 ) Profit/(loss) for the period (4.4) (7.8) (0.5) (3.7) (10.1) (8.9) (13.6) Net finance expense Income tax expense (2.8) Depreciation and amortization EBITDA (non-gaap) (unaudited) Acquisition and integration related costs Restructuring costs Site relocation costs Financing and IPO fees Contingent Value Instrument (41.7) (41.7) Asset impairments and Others (0.4) Adjusted EBITDA (non-gaap) (unaudited) Adjusted EBITDA Margins 11.3% 12.0% 14.0% 14.1% 12.8% 11.8% 12.1% 13.6% 13.3% 12.6% 11.5% 11.1% 11.9% 11.5% 11.5% (1) Information excludes the effect of Morocco business, which was divested in September, (2) Additional detailed information can be found on the 4Q17 6K form of the Company on the topics related to Reconciliation of EBITDA and Adjusted EBITDA. 25

26 Add-Backs to Net Income by Quarter Fiscal 2015 Fiscal 2016 Fiscal 2017 ($ in millions, except percentage changes) Q1 Q2 Q3 (1 ) Q4 (1 ) FY (1 ) Q1 Q2 Q3 (1 ) Q4 (1 ) FY (1 ) Q1 Q2 Q3 (1 ) Q4 (1 ) FY (1 ) Profit/(Loss) attributable to equity holders of the parent (4.4) (7.8) (0.5) (3.7) (10.1) (8.9) (13.6) Acquisition and integration related Costs Amortization of Acquisition related Intangible assets Restructuring Costs Site relocation costs Financing and IPO fees Asset impairments and Others (0.4) DTA adjustment in Spain Net foreign exchange gain on financial instruments (13.0) (1.0) (0.5) (3.5) (17.5) (0.5) (0.2) 0.1 (0.1) (0.7) (2.9) (0.2) Net foreign exchange impacts (3.0) (3.3) Contingent Value Instrument (26.2) (26.2) Financial Non Recurring Depreciation Non Recurring Other Tax effect (2.9) (3.5) (4.1) (2.9) (16.2) (5.3) (6.0) (5.1) (8.1) (23.5) (3.4) (2.0) (7.4) (5.2) (18.2) Adjusted Earnings (non-gaap) (unaudited) Adjusted Basic Earnings per share (in U.S. dollars) (*) (unaudited) Adjusted Earnings attributable to Owners of the parent (non-gaap) (unaudited) Adjusted basic Earnings per share attributable to Owners of the parent (in U.S. dollars) (**) (unaudited) Q reported net income negatively impacted by FX over intercompany loans, while Q reported net income positively impacted by CVI elimination from the MSA renegotiation (1) Information excludes the effect of Morocco business, which was divested in September, (2) Additional detailed information can be found on the 4Q17 6K form of the Company on the topics related to Reconciliation of Adjusted Earnings to Profit/(loss). 26

27 Effective Tax Rate ($ in millions, except percentage changes) 14Fiscal 2015 Fiscal 2016 Fiscal 2017 Profit/(loss) before tax (1.0) (+) Total Add-backs to Net Income (excluding tax effect) Acquisition and integration related Costs Amortization of Acquisition related Intangible assets Restructuring Costs Site relocation costs Financing and IPO fees Asset impairments and Others DTA adjustment in Spain Net foreign exchange gain on financial instruments (17.5) (0.7) (0.2) Net foreign exchange impacts Contingent Value Instrument - (26.2) - Financial Non Recurring Depreciation Non Recurring Other = Recurring Profit/(loss) before tax (non-gaap) (unaudited) (-) Recurring Tax (39.4) (28.7) (30.8) Income tax expense (reported) (23.2) (5.2) (12.5) Tax effect (non-recurring) (16.2) (23.5) (18.2) = Adjusted Earnings (non-gaap) (unaudited) Recurring ETR 33.6% 37.3% 34.5% (1) Profit/(loss) before income tax from continuing operations 27

28 FX Rates Average Average FX Assumptions Q1 Q2 Q3 Q4 FY 2016 Q Q Q Q FY 2017 Euro (EUR) Brazilian Real (BRL) Mexican Peso (MXN) Colombian Peso (COP) 3, , , , , , , , , , Chilean Peso (CLP) Peruvian Soles (PEN) Argentinean Peso (ARS)

29 Revenue Mix by Service Type Fiscal 2015 Fiscal 2016 Fiscal 2017 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Customer Service 48.7% 48.0% 47.0% 47.9% 47.9% 49.6% 49.7% 50.2% 47.8% 49.0% 50.2% 51.7% 48.2% 47.7% 48.4% Sales 18.2% 18.3% 18.2% 17.4% 18.0% 16.4% 16.3% 15.3% 17.2% 16.6% 16.3% 18.8% 17.2% 17.6% 16.8% Collection 10.0% 10.3% 10.9% 11.2% 10.6% 10.2% 10.0% 9.4% 10.0% 10.1% 9.5% 8.6% 8.1% 7.9% 8.8% Back Office 9.1% 9.4% 10.2% 10.2% 9.7% 10.5% 10.1% 11.2% 11.7% 10.8% 11.2% 8.3% 13.7% 13.8% 12.9% Technical Support 10.7% 10.7% 10.5% 9.9% 10.5% 9.6% 9.4% 9.6% 9.2% 9.4% 8.7% 9.0% 8.4% 8.7% 9.1% Service desk 0.1% 0.1% Others 3.2% 3.2% 3.2% 3.4% 3.3% 3.7% 4.5% 4.3% 4.1% 4.1% 4.1% 3.6% 4.4% 4.3% 4.0% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 29

30 Number of Workstations and Delivery Centers Number of Number of Work Service Delivery Stations Centers (1 ) Brazil 45,913 48, Americas 37,574 37, Argentina (2) 3,673 4, Central America (3) 2,644 2, Chile 2,673 2, Colombia 7,723 8, Mexico 10,298 9, Peru 9,253 9, United States (4) 1,310 1, EMEA 5,595 5, Spain 5,595 5, Total 89,082 92, Notes: (1) Includes service delivery centers at facilities operated by us and those owned by our clients where we provide operations personnel and workstations. (2) Includes Uruguay. (3) Includes Guatemala and El Salvador. (4) Includes Puerto Rico. 30

31 Consolidated Debt and Leverage $ MM Currency Maturity Interest Rate Outstanding Balance 4Q'17 % Mix Senior Secured Notes (1) USD % % Brazilian Debentures BRL 2023 CDI % % BNDES BRL 2020 / 2022 TJLP + 2.5% / SELIC + 2.5% % Leverage ratio of 1.6x Highlights 4Q17 Cash and Cash equivalents of $142 MM, and existing revolving credit facility of $104MM, of which $99 million were undrawn, implying Liquidity of $241MM Average debt maturity of 4.1 years Average cost of debt (LTM): 9.3% per year Finance lease payables USD / COP / BRL % Other borrowings % Gross Debt % Short-Term Debt Long-Term Debt Net Debt 10% 90% (1) Cross currency swaps covers 100% of interest until 2022 and 30% of principal until Debt Payments BNDES: $22.2MM Debentures: $155MM Others (4131/Leasing): $27.8MM 31

32 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. Adjusted EBITDA margin Adjusted EBITDA excluding special items/operating revenue. Adjusted net income (loss) net loss which excludes corporate transaction costs, asset dispositions, asset impairments, the revaluation of our derivatives and foreign exchange gain (loss), and net income or loss attributable to non-controlling interests and debt extinguishment. Operating Cash Flow: Net Cash flow from/(used in) operating activities (as per 6K) adding back net interest and income tax expense. Free cash flow before interest and acquisitions We define Free Cash flow before interest and acquisitions as operating cashflow minus Capex payments and income tax expense. Liquidity cash and cash equivalents and undrawn revolving credit facilities. 32