Atento (ATTOF) 6-K Current report (foreign)

Atento

October 2015

Investor Presentation

Exhibit 99.1

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

www.atento.com.

Strategic Overview

and Second Quarter

Highlights

4

Highlights

Notes:

(1)

Unless otherwise noted, all results are for Q2 2015; all growth rates are on a constant currency basis and year-over-year comparison

Strong topline growth drives market share gains in LatAm CRM/BPO market

Particular strength in Brazil and the Americas with revenue growth of 14.3% and 16.8%,

respectively

Continued to acquire new clients, grow share of wallet with existing clients, and increase

penetration of higher-value solutions

Uniquely positioned to capture growth opportunities created by current macroeconomic

environment

Margin expansion initiatives contribute to improved profitability

Adj. EBITDA margin up 40 basis points with a 15.8% increase in adj. EBITDA

Operational rigor and excellence with industry leading service levels

Opex efficiencies driven by scale and site locations

Strengthened balance sheet and enhanced financial flexibility

Leverage of 1.6x with liquidity of $173.1MM

5

Winning in the Current Environment

Industry

leader

in

LatAm

CRM/BPO

market

Optimal geographic footprint

Favorable industry growth drivers

Expect macroeconomic headwinds to continue

Generalized cost inflation

Companies looking to reduce costs and improve efficiencies

Best positioned to capitalize on industry dynamics

Increased outsourcing as companies look to lower costs

Effective strategy drives profitable growth, sustainable shareholder value creation

U.S. nearshore opportunities becoming more attractive to companies

6

Strategy to Deliver Sustainable Earnings Growth on Track

Earnings

growth

High revenue

visibility

99%+

revenue

retention

rate

TEF MSA

throughout

2021

Multi-pronged

growth agenda

Share of

wallet gains

through an

increase in

higher value

solutions

New growth

avenues:

non-TEF

telco,

financial, US

near-shore,

and Carve

Outs

Operations

efficiency program

Margin

expansion

initiatives:

•

Operations

productivity

•

Lower

turnover

•

Global

procurement

•

Site relocation

Capital structure

optimization

Enhanced

financial

flexibility

Attractive

market

growth

Growing

market due

to favorable

industry

tailwinds &

market

dynamics

Gained

market

share

–

extended

leadership

position

in

CRM/BPO

LatAm

market

Optimal balance of growth and profitability

Invest to support long-term competitiveness and financial strength

Second Quarter Financial 

Performance

8

Q2

Q2

USDm

2014

2015

Revenue

592.3

515.7

CCY growth

11.0%

Adjusted EBITDA

68.8

62.1

Margin

11.6%

12.0%

CCY growth

15.8%

Adjusted EPS

$0.27

$0.21

CCY growth

5.6%

Leverage (x)

1.7

1.6

Consolidated Financial Highlights

Key Highlights

Balanced financial results

11.0%

(1)

revenue growth ex-Czech Republic (15.3% in LatAm

(3)

)

Operating leverage drives a 15.8% increase in adj. EBITDA

12.0% adj. EBITDA margin, up 40 basis points

5.6% growth in adj. EPS, ex. one-time tax benefit in Q2 2014, up

110%

Significant regional progress

Brazil: non-TEF growth of 18.4% drives a 14.3% increase in revenue

Americas: revenue up 16.8%

EMEA: Spain macroeconomics remain challenging

Continued revenue diversification

Solutions penetration 23.8% of total revenue, up almost 200 basis

points

Non-TEF revenue 54.1% of total revenue, up approx. 200 basis

points

Increased financial flexibility

Leverage of 1.6x

Liquidity of $173.1MM in cash and cash equivalents in addition to

€50MM in undrawn revolving credit facility

Notes:

(1)

Excludes Czech Republic, which was divested in December 2014

(2)

Unless otherwise noted, all results are for Q2 2015; all growth rates are on a constant currency basis and year-over-year comparison

(3)

LatAm includes Brazil and Americas regions

(1)

Brazil Summary

Revenue

The leading provider of CRM/BPO services in Brazil

14.3% growth despite challenging macro-environment

18.4% growth in non-TEF revenue driven by new

clients and increased share of wallet with existing

clients

8.6% growth in TEF

Significant commercial wins:

Approximately 1,000 workstations won with new and

existing clients

Adjusted EBITDA

15.7% growth in adj. EBITDA

Excluding corporate costs allocation, adj. EBITDA

margin increased 50 basis points to 14.3%

Benefits of margin expansion initiatives more than

offset ramp of new clients

$MM

CCY Growth

Adj. EBITDA margin:

13.3%

13.5%

$MM

CCY Growth

+14.3%

Adj. EBITDA margin

ex-corp. costs allocation:

13.8%

14.3%

15.7%

18.2%

Notes:

(1)

Unless otherwise noted, all results are for Q2 2015; all growth rates are on a constant

currency basis and year-over-year comparison

Key Highlights

309.6

256.9

Q2 2014

Q2 2015

41.3

34.6

Q2 2014

Q2 2015

9

32.0% growth in adj. EBITDA

Excluding corporate costs allocation, adj. EBITDA margin

increased 210 basis points to 15.3%

Benefits of margin expansion initiatives more than offset

ramp of new clients

Americas Summary

Revenue

16.8% growth driven by strong performance across the

region and across verticals

15.3% non-TEF growth driven by solid growth in most

markets supported by new and existing clients

18.5% growth in TEF

Significant commercial wins

Adjusted EBITDA

CCY Growth

+16.8%

CCY Growth

Adj. EBITDA margin:

Adj. EBITDA margin

ex-corp. costs allocation:

$MM

$MM

Notes:

(1)

Unless otherwise noted, all results are for Q2 2015; all growth rates are on a constant

currency basis and year-over-year comparison

Key Highlights

193.2

198.2

Q2 2014

Q2 2015

24.7

28.3

Q2 2014

Q2 2015

12.8%

13.2%

14.3%

15.3%

32.0%

35.2%

10

11

5.5

2.5

Q2 2014

Q2 2015

89.8

61.1

Q2 2014

Q2 2015

EMEA Summary

Revenue

EMEA remains challenged due to weak Spanish macro-

environment

Revenue decreased by 15.7%, or by 13.3% ex Czech

Republic

Non-TEF revenue decreased 10% ex Czech Republic

Commercial wins in Q2 will support future growth in

non-TEF revenue

$MM

Adj. EBITDA

margin:

Adjusted EBITDA

$MM

CCY Growth

Decrease in adj. EBITDA driven by the decline in revenue

CCY Growth

(45.5)%

Notes:

(1)

Unless otherwise noted, all results are for Q2 2015; all growth rates are on a constant

currency basis and year-over-year comparison

Key Highlights

6.1%

4.1%

(15.7)%

12

Balance Sheet

Highlights

$MM

Leverage of 1.6x

Liquidity of $173.1MM in cash and cash

equivalents with an additional  €50MM in

undrawn revolving credit

Strengthened Balance Sheet and Deleveraging Enhance

Financial Flexibility

Q2 2014

Q2 2015

Cash and cash equivalents

178.2

173.1

Total Debt

745.3

637.2

Net Debt

507.6

464.1

Net Debt / Adj. EBITDA

1.7 x

1.6 x

13

Key Takeaways

1.

On track with operational and financial initiatives including above market

growth, improved profitability and increased financial flexibility.

2.

Macro headwinds are a reality; focused strategy and resilient business

model will allow us to drive the optimal balance of growth and profitability.

3.

Making the right investments to strengthen our competitive advantage and

drive sustainable shareholder value creation.

Appendix

15

Reconciliations

Reconciliation of EBITDA and Adjusted EBITDA

$MM

Reconciliation of Adjusted EPS to Profit/(Loss)

$MM, except per share

Q2 2014

Q2 2015

EBITDA

(non-GAAP)

43.0

57.9

Acquisition and integration related costs

3.0

-

Restructuring costs

16.6

2.7

Sponsor management fees

2.1

-

Site relocation costs

1.0  

0.1

Financing and IPO fees

5.7

-

Asset impairments and Other

(2.6)

1.4

Adjusted

EBITDA

(non-GAAP)

68.8

62.1

Q2 2014

Q2 2015

Profit for the period

(9.7)

6.5

Acquisition and integration costs

3.0

-

Amort. of Acquisition of Intangibles

9.9

6.9

Restructuring Costs

16.6

2.7

Sponsor management fees

2.1

-

Site relocation costs

1.0

0.1

Financing and IPO fees

5.7

-

PECs interest expense

10.2

-

Asset impairments and Other

(2.6)

1.4

Net foreign exchange gain of financial

instruments

-

(1.0)

Net foreign exchange impacts (restated)

-

2.6

Tax effect

(16.4)

(3.5)

Adjusted Earnings

19.8

15.7

Adjusted EPS

$0.27

$0.21

16

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 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

Adjusted EBITDA margin

–

Adjusted EBITDA excluding special items/operating

revenue

Free cash flow –net cash flows from operating activities less cash payments for

acquisition of property, plant and equipment, and intangible assets

Liquidity –

cash and cash equivalents