Atento. Fiscal 2017 Third Quarter Results. November 1, Investor Relations Shay Chor

Transcription

1 November 1, 2017 Atento Fiscal 2017 Third Quarter 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 Quarter Highlights Strong Multisector (1) Growth and Continued Improvement in Revenue Mix Consolidated revenues up 9.0%, multisector up 15.3% Multisector broad-based gains in all regions, with mix up 420bps to 62.0% Revenue mix from higher value-added solutions up 230bps to 27.0% Telefonica revenues stable YoY Adjusted EBITDA Margins in Line with FY 2017 Guidance Adjusted EBITDA margin of 11.9% in Q3 and within the FY 2017 guidance YTD at 11.5% Solid Growth in Recurring EPS Adjusted EPS up 20% in Q3 and 12.8% YTD, to $0.24 and $0.53 respectively Sound Free Cash Flow Generation and Enhanced Capital Structure Free Cash Flow before Interest and Acquisitions totaled $48 million in Q3, an 79.7% cash conversion Debt refinance estimated to reduce interest expenses by $10-15mm p.a. as of 2018 Net leverage down to 1.5x from 1.9x in Q and 1.8x in Q New Dividend Policy with First Dividend Payment First dividend of $25 million ($0.34/share) declared on Oct 31 st Reaffirm Full-Year 2017 Targets (1) Multisector equals total clients excluding Telefonica; *Unless otherwise noted, all results are for Q3 2017; all revenue growth rates are on a constant currency basis, year-over-year, 4

5 Clear Strategy to Deliver Above-Market Growth Strategic Pillars Driving Growth Consolidate Leadership in Core Voice Services Significant remaining whitespace in our core business across all verticals Leverage industry-leading platform to capture large, growing Brazil opportunity Further capitalize on the fast growing US Nearshore market Expand Market Opportunity Via Higher Value-Added Solutions Integration of our vertical expertise & core services drive end-to-end, tailored 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 Accelerate Profitable Growth With Mainstream Digital 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 5

6 Significant Whitespace Remaining in Our Core Services in Key Verticals Consolidate Leadership in Core Voice Services Expand Market Opportunity Via Higher Value-Added Solutions Accelerate Profitable Growth With Mainstream Digital Non-TEF Telcos Financial Services Other Verticals $3.1Bn Market (1) $2.5Bn Market (1) $2.5Bn Market (1) Atento White Space 3% Market Share White Space 26% Market Share White Space 10% Market Share ~4,700 workstations won YTD, 46% coming from new clients +400 WS in Q3, in new and existing clients ~1,900 workstations won YTD, being 41% from new clients Strong YoY and sequential growth in other industries, +1,300 new WS ~3,600 total workstations won YTD, with 43% from new clients (1) LatAm CRM BPO market share (2016) 6

7 Higher Value-Added Solutions Address Client Needs and Increase Growth Potential Consolidate Leadership in Core Voice Services Expand Market Opportunity Via Higher Value-Added Solutions Accelerate Profitable Growth With Mainstream Digital Evolving To Solutions According To Clients Needs Accelerating Capabilities Through Targeted M&A and Strategic Alliances Expanding Into Attractive Markets With Growth Potential (1) From Core Services $Bn +37% $1.0 Fixed revenue model Use of client s tools and processes Contact channels not integrated Leading provider of end-to-end collections solutions, through business intelligence and analytics $9.5 $2.5 Still a highly insourced market (~65% in Brazil) 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 Leading provider of back office credit management for the financial services Leading management consulting firm in Brazil and Latin America with strong expertise in process consulting 9,5 9,5 (1) Source: Frost & Sullivan, internal estimates Atento Market Share 2016 BPO LatAm Market E2E Collections Credit Management 17% 2% 20% 7

8 5% 10% 15% 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 Solutions (as a % of revenue) Segment breakdown by % of solutions and EBITDA margin 23.8% 27.0% Adj. EBITDA Margin (2) Americas Brazil EMEA 1Q Q 2017 % Revenue from Solutions (2) (1) CCY revenue CAGR from 1Q 2015 to 3Q 2017 based on internal estimates (2) Adjusted EBITDA margin and percent of revenue from solutions as of 3Q 2017, based on internal estimates 0% 25% 50% 8

9 Digital Solutions Represent The Fastest-Growing Delivery Channel Consolidate Leadership in Core Voice Services Expand Market Opportunity Via Higher Value-Added Solutions Accelerate Profitable Growth With Mainstream Digital Digital Solutions is the Fastest Growing Channel LatAm CRM BPO market by channel 13.8 Atento is the Market Leader in Digital % Atento Brazil CRM BPO digital market share (2016) Delivering Significant Efficiencies for Clients (1) 2 Million Social Media Interactions 450 Million Business Portal Tickets 16 Million Interactions 7 Million Chat Interactions Million BOT Recruitment Interactions 50 Million SMS % Digital CAGR Digital Non-digital #3 #2 #1 2,000 App Promotions 10 Social Media Clients 50 Million Video Interactions 14 Million Sales Portal Hits Sources: Frost & Sullivan, company presentations, internal estimates (1) Digital statistics represent

10 Leveraging Partnerships To Accelerate Digital Execution Consolidate Leadership in Core Voice Services Expand Market Opportunity Via Higher Value-Added Solutions Accelerate Profitable Growth With Mainstream Digital Integrated Solutions 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 Customers already use Keepcon solutions +200MM of messages monitored and managed per month 10

11 Financial Results Mauricio Montilha, CFO

12 Consolidated: Relevant Growth in Brazil and Americas Highlights (1) Q3 YTD US$ MM Except per share P&L Statement Revenue , ,315.5 CC Growth (1) 9.0% 4.8% Adjusted (2) EBITDA CC Growth (1) -3.6% -3.4% Margin 11.9% 13.6% 11.5% 12.4% Net Income (3) EPS (3) $0.24 $0.20 $0.53 $0.45 Reported (4) Net Income (12.0) (0.5) (6.9) (13.4) EPS ($0.16) ($0.05) ($0.09) ($0.22) Cashflow, Debt and Leverage FCF Before Net Interest and Acquisitions (5) Net Debt Leverage (x) 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 Q3 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 (1) Unless otherwise noted, all results are for Q3 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, Please refer to the MD&A section of the 3Q 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 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. 12

13 Brazil: Sequential Strong Growth Driven by Multisector Q3 YTD US$ MM Revenue CC Growth (1) 11.4% 7.5% Reported Operating income/(loss) CC Growth (1) -26.5% 25.0% Adjusted EBITDA (2) EBITDA Margin (2) 12.9% 15.2% 13.2% 14.1% Highlights (1) Revenues up 11.4% in Q3 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 Q3 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. 13

14 Americas: Resuming Growth With Improved Revenues Highlights (1) Q3 YTD US$ MM Revenue CC Growth (1) 10.4% 3.3% Reported Operating income/(loss) CC Growth (1) -38.1% -39.2% Adjusted EBITDA (2) EBITDA Margin (2) 11.9% 13.5% 11.3% 13.2% Revenues up 10.4% in Q 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 Q3 2016, driven by: Ramp up from new contracts in Colombia and Chile and U.S Nearshore Volume reductions in some clients in Mexico (1) Unless otherwise noted, all results are for Q3 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. 14

15 EMEA: Stable Revenue Trend in Multisector, Leading to an Improved Business Mix Highlights (1) Q3 YTD USD$MM Revenue 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) EBITDA Margin (2) 6.4% 10.0% 7.0% 6.5% Revenues from multisector up 1.3% in Q3 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 (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 K for more details. (2) EBITDA and Adj. EBITDA are Non GAAP measures. For more information, see Glossary page. 15

16 Strong Cash Flow Generation and Enhanced Capital Structure Q3 YTD Free Cash Flow (FCF) US$ MM Operating Cash Flow (1) Cash Capex (2) (13.1) (16.1) (37.3) (55.8) Income Tax Paid (4.8) (6.1) (14.9) (16.4) Free Cash Flow before Interest and Acquisitions Adj. EBITDA to Cash Conversion (%) 79.7% 77.2% 32.1% 32.4% Acquisitions - (8.6) (27.1) (8.6) Net Interest Paid (3) 9.1 (14.0) (19.4) (50.1) Free Cash Flow (FCF) (5.8) 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x 1.9x 436 Net Debt / EBITDA $MM 1.5x 1.6x 1.8x 1.5x Q3-16 Q4-16 Q1-17 Q2-17 Q 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 Q3 Improved Cashflow, EPS Accretion and Increased Flexibility Net leverage down YoY and sequentially to 1.5x in Q First dividend payment of $25mm ($0.34/share) declared on Oct 31 st Net Debt Net Debt / EBITDA (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. 16

17 Reaffirming FY 2017 Guidance YTD revenues in line with Guidance Debt refinance full impact as of 4Q17 Estimated to reduce interest expenses by $10-15mm p.a. as of 2018 Guidance - FY 2017 Consolidated Revenue Growth (CCY) 5% to 8% Adjusted EBITDA Margin Range (CCY) (1) 11% to 12% Net Interest Expense $55MM to $60MM Cash Capex (% of Revenue) ~3-4% Effective Tax Rate ~39% Diluted Share Count ~73.9MM shares Cash conversion as % of Adj. EBITDA (2) ~40% (1) Adjusted EBITDA and margin exclude the impact of restructuring and site relocation expenses. We exclude these from our adjusted numbers to more clearly show the underlying health and trajectory of our business. (2) Cash conversion equals free cash flow before interest and acquisitions as a percent of adjusted EBITDA 17

18 Summarazing Solid Topline Growth Growth strategy continues to drive increase in revenues, with multisector broad based gains in all regions in the quarter and YTD Solid Growth in Recurring EPS Sound Free Cash Flow Generation and Enhanced Capital Structure Aligned with strategy to continue to deliver growth and returning capital to shareholders First dividend declared on Oct 31st Reaffirmed Full-Year 2017 Targets Highlighted by improved revenue growth outlook 18

19 Appendix About Atento Financial Reconciliations Debt Information Glossary

20 About Atento November

21 Differentiated Competitive Advantages Leader in attractive, high-growth LatAm market. Long-lasting client relationships due to vertical expertise and growing portfolio of services and solutions. Superior pan-latam operational delivery platform. Clear strategy for sustained growth and strong shareholder value creation. Experienced, proven management team with strong track record. 21

22 Atento at a Glance Leading CRM/BPO provider in Latin America and among the top five largest globally by revenues ($1.8bn in 2016) Revenues by region, offering and customer (2) 99 contact centers in 13 countries globally 151,000+ employees and 91,000+ workstations globally Provides growing end-to-end solutions for customers across sectors and capabilities Brazil 49.6% Americas 39.6% EMEA 10.8% Founded in 1999 as provider to Telefonica Group; acquired by Bain Capital in 2012 Superior operational delivery platform in LatAm region Long-standing relationships with 400+ blue-chip clients Strong relationship with Telefonica, supported by Master Services Agreement ( MSA ) through 2021/2023 Unique people focus: only CRM BPO company among the 25 best multinationals to work for and only LatAm based company (1) Services 73.0% Telefonica 38.0% Solutions 27.0% Non-Telefonica 62.0% (1) Awarded by the Great Place to Work Institute ( GPTW ) (2) Based on Q revenue of $501.3MM; Telefonica and Non-Telefonica revenue based on Q

23 Evolution of Leadership Position in LatAm CRM BPO Market 1999 Telefonica call center in Spain and Brazil 2016 The Leader in pan-latam CRM BPO Extended footprint across Latin America (1) (2) 1.8 Added $2 billion in revenues <0.5 Revenues $Bn Revenues $Bn ~57.5% Highly diversified client base ~10% % non-tef revenues % non-tef revenues Expanded higher value-added solutions offerings Sales Customer Service Sales Insurance Management Smart Collection Customer Service Smart Credit Solution Credit Card Management Credit Management Complaints Handling Multi-channel Customer Experience Technical Support Back Office B2B Efficient Sales Advanced Technical Support Built largest execution platform in Latin America <20k Workstations 87k+ Workstations (1) Flags represent Brazil and Spain. (2) Flags represent Brazil, Spain, Peru, Panama, Guatemala,,El Salvador, Chile, Colombia, Argentina, Mexico, Puerto Rico, the U.S and Uruguay. 23

24 Largest CRM BPO Provider in Latin America Market leader in the largest markets CRM BPO market share (%) $9.6Bn LatAm CRM BPO market One of the largest players in the world 2016 Revenues ($Bn) USA Mexico Puerto Rico El Salvador Guatemala Panama Colombia Spain Peru Brazil Chile Argentina Uruguay 0.6 (1) Pro forma for Stream acquisition Leadership in LatAm & Spain % % % % % 2 9.1% Source: Frost & Sullivan / DBK (1) Atento market share position as of 2015 (2) Market share in terms of revenue 24

25 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 Sales Customer Service Credit Management Technical Support Back Office Insurance Management Smart Credit Solution Complaints Handling B2B Efficient Sales Onsite Telephone Smart Collection Multi-channel Customer Experience Credit Card Management Advanced Technical Support VPA Kiosk VPA Web CUSTOMER EXPERIENCE Apps SMS Social Networks Chatrooms Deeply embedded processes Stronger alignment with clients Scalable industry expertise Higher value-added with increased profitability 25

26 Superior pan-latam operational delivery platform State-of-theart Technology Blue-chip Tech Partners Avaya Cisco HP Microsoft Nice Verint Robust, Globally Standard Processes 0.02% Unscheduled downtime in 2015 Standardized Large-scale Processes Three globally connected Command Centers Centralized, standard automated recruiting Performance based learning 1,400,000+ applications (1) 15.6MM+ hours of training (1) Highly Motivated Employees Industry leading culture and globally recognized Great Place to work Globally recognized as one of the 25 Best Multinationals to work for the 4 th consecutive year in 2016 Only CRM BPO company in the top 25 Only LatAm based Company in the top 25 Great Place to Work in 9 countries (1) (1) 2015 figures 26

27 Services Financial Services case study: deep expertise drives increased mix of value-added solutions overtime Strong relationship spanning many services and countries. Customer Service Sales Client services and solutions offerings Services Solutions with increasing depth of offerings Credit Card Management Back Office Insurance Management Multi-channel Customer Experience Insurance Management Credit Management Complaints Handling Advanced Technical Support Complaints Handling Advanced Technical Support In-person Services Back Office Back Office Sales Sales Automated Services Credit Management Credit Management Credit Management Customer Service Customer Service Customer Service Year Year 1 Current Case study: Financial Institution based in Mexico 27

28 Atento s Solutions Smart Collection 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 effective channel integration: phone, digital, in-person Collection software and automated enables (i.e voice mail, invoice letter Use of analytics / big data optimizing time to call and Contact channel Insurance Management End-to-end solution covering the sales process, customer services, and associated back office including credit management process Specialized process: integrated process mapping and improvement, and technical back office support Channel strategy throughout the customers lifecycle, managing key events (e.g claims and incidents) Social BPM and workload, mobility software and communications tools Use of Atento intelligent Database (BIA), knowledge management, mystery shopper, survey, speech analytics Smart Credit Solution Manages the overall contract formalization and provides sales and customer service and credit management Specialized process: back office, sales, customer service and credit management Channel integration and self-service ensuring just in time information Social BPM and workload, multichannel platform interface with client s software Use of big data, mystery shoppers, survey speech analytics Complaints Handling Solution to prevent and manage the overall complaints process Specialized process: back office and customer service; process mapping and continuous improvement Multichannel integration focusing on customer behavior Social BPM and workload, multichannel platform interface with client s software Use of knowledge management, speech analytics, mystery shoppers, survey 28

29 Atento s Solutions B2B Efficient Sales Manages small medium business lead generation and process execution Specialized process and agents in sales, process mapping and reengineering Channel integration (adapted for efficiency: phone, digital, back office, in person B2B sales software, multichannel platform, interface with client s software Use of analytics ; big data, BIA, knowledge management Credit Card Management Specialized processes for issuers and acquirers of payment cards (sales, cross and up-sales activities, credit analysis, usage management, requests and complaints and collection process) Cost efficiency channel integration: phone, digital, letters, in-person Social BPM and workload, multichannel platform, predictive dialers Use of analytics and big data, BIA, knowledge management Advanced Technical Support Single point of Contact (SPOC) to handle, diagnose and solve technical issues Certifications, process mapping and improvement, specialized agents in technical support Multichannel integration focusing on customer behavior Workload, mobility software and interface with client s software Use of knowledge management, speech analytics, mystery shoppers, survey Multichannel Customer Experience Digital channel integration and social media monitoring with automatic distribution Manages service levels and agent productivity customer service, collection and technical support Cost efficiency channel intergration and utilization strategy offering convenience and a better customer experience Multichannel platform: phone, vídeo, chat, , SMS, Facebook, Twitter, Whatsapp, in-person Use of analytics / big data, BIA, speech analytics, mystery shopper, survey 29

30 Financial Reconciliations

31 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 ) Profit/(loss) for the period (4.4) (7.8) (0.5) (3.7) (10.1) 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) (1) Information excludes the effect of Morocco business, which was divested in September, (2) Additional detailed information can be found on the 3Q17 6K form of the Company on the topics related to Reconciliation of EBITDA and Adjusted EBITDA. 31

32 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 ) Profit/(Loss) attributable to equity holders of the parent (4.4) (7.8) (0.5) (3.7) (10.1) 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) 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) 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) (1) Information excludes the effect of Morocco business, which was divested in September, (2) Additional detailed information can be found on the 3Q17 6K form of the Company on the topics related to Reconciliation of Adjusted Earnings to Profit/(loss). 32

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

34 Revenue Mix by Service Type Fiscal 2015 Fiscal 2016 Fiscal 2017 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 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% 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% 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% 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% 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% 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% 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% 34

35 Number of Workstations and Delivery Centers Number of Number of Work Service Delivery Stations Centers (1 ) Q Q Q Q Brazil 45,963 48, Americas 37,348 37, Argentina (2) 3,674 4, Central America (3) 2,624 2, Chile 2,665 2, Colombia 7,669 8, Mexico 10,153 10, Peru 9,253 8, United States (4) 1,310 1, EMEA 5,597 5, Spain 5,597 5, Total 88,908 91, 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. 35

36 Consolidated Debt and Leverage $ MM Currency Maturity Interest Rate Outstanding Balance 3Q'17 % Mix Senior Secured Notes (1) USD % % Brazilian Debentures BRL 2023 CDI % % BNDES BRL 2020 TJLP + 2.5% / SELIC + 2.5% % Finance lease payables USD / COP % / 8.41% 9.8 2% Other borrowings % Gross Debt % Short-Term Debt Long-Term Debt Net Debt 11% 89% (1) Cross currency swaps covers 100% of interest until 2022 and 30% of principal until 2020 Leverage ratio of 1.5x Cash and Cash equivalents of $163MM, and existing revolving credit facility of $105MM, totaling Liquidity of $268MM Average debt maturity of 4.1 years 2017 Debt Payments Highlights 3Q17 BNDES: $23MM (YTD:$17.4MM) Debentures: $162MM (Accelerated from Q4-17 to Q2-17: $27MM; Refinancing from 2018: $54MM; from 2018: $81MM) Others (4131/Leasing): $28.2MM (YTD: $4.4MM) Debt Payment Schedule $mm (@ Current FX of Sep-17) Q Cash Revolving Credit Facility Regular Accelerated Refinancing 36

37 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. 37