Corporate Presentation
Contax and its
Core Business
Contax: profile,
clients and footprint
Markets trends
and strategy
Contax: profile,
Business Process Outsourcing company leader in
Contact Center and Debt Collection in Brazil
Operations in customer service, debt collection,
telemarketing, retention, back-office, technology services
and trade marketing
Start-Up in 2000 and IPO in 2005
Presence
in
Brazil, Argentina, Colombia, Peru with
commercial activity in
USA
and
Spain
115,000*
employees , with 5,000 new employees/month
Net revenues of
R$ 2,843.3 MM 3Q11 LTM
Market Cap of R$ 1.3 billion
(as of Oct. 28
th
)
220 million
contacts/month
139
corporate clients
Total of 52,277 workstations (“WS”) in Sept. 2011 (vs.
36,789 in Sept. 2010)
CONTAX AT A GLANCE
4
Start-Up
2000
Start-up: migration
of Telemar’s
contact center
operations and
acquisition of its
first external clients
Core Business
Expansion
2003
Growth with a focus on
high volume clients
2004
Spin off from Telemar,
paving the way for
Contax’s IPOS
2005
First company in contact
center listed on Bovespa
Contax become the leading
Brazilian contact center
company with net revenues
in excess of R$ 1 bi and
with almost 50,000
employees
CRM BPO in
Latin America
Consolidation of the
strategy of being the
only corporate service
company specializing
in the entire
relationship chain
between companies
and consumers,
consolidating multiple
contact channels
Service Offering
Expansion
2009
Expansion of services specializing
in BPO (Business Process
Outsourcing) of CRM (Customer
Relationship Management)
Creation of Todo! Technology
provider company: first step
towards the diversification of
products
2010
Acquisition of Ability, one of
the largest trade marketing
companies in Brazil
2011
Geographic Expansion:
Acquisition of Allus – one of the
largest Spanish-speaking contact
center in Latin America
Acquisition of Dedic GPTI: one of
the biggest contact center
companies in Brazil
Portugal Telecom becomes
shareholder
R$421 MM
R$655 MM
R$1,045 MM
R$2,161 MM
R$2,396 MM
R$3,270 MM*
Net Revenue
* Average market consensus (considering estimates from Credit Suisse, Bradesco and Banif)
MILESTONES
SHAREHOLDER STRUCTURE
100%
72.6%
ON
34.2%
ON + PN
Free Float
0.0%
ON
4.3%
ON + PN
Contax Participações
100%
6
Ability
Contax
Dedic GPTI
100%
Portugal Telecom
Brasil
CTX Participações S.A.
●
LF Tel. S.A.:
34.96%
●
Andrade Gutierrez Part.:
34.96%
●
Portugal Telecom Brasil:
19.90%
●
Fund. Atlântico de Seg.
Soc.:
10.18%
TOTAL: 100.0%
27.4%
ON
61.5%
ON + PN
Main Shareholders
(ON+PN)*
CSHG
16.3%
Skopos
16.2%
HSBC
8.7%
Eton Park
2.0%
Publicly traded company
*Minority shareholders with more than 5% of any class of shares (PN/ON) Shareholder Structure as of 09/09/11
80%
Todo!
Allus
CORE BUSINESS BRAZIL - MAIN BUSINESS UNITS
7
Contax’s portfolio of products and services has evolved year after year since the
startup of it operations in 2000
13%
●
Telemarketing
●
Debt
Collection
% Net
Revenues*
Services
●
Customer
Service
●
Analyze end customer’s payment behavior, enriching the
databse, devising strategies, using sophisticated systems, such as
dialers and mail filters, and the multi-channel approach (phone
calls, letters, voice mail, text messages etc) seeking to increase
direct contact with debtors.
Description
●
Contax places a set of solutions at the disposal of its
contracting parties to assist, to understand and to entice the
final customer, whatever the type of request
●
Current Services offered: SAC, Back Office, Technical
Support/Help Desk, Ombudsman’s Office, Web Call Center and
Field Support
●
An efficient solution for acquisition of new consumers and
making the customer base profitable, focusing on each
customer’s specific characteristics and its target market.
●
The product offers are divided between:
» Active Telemarketing: pro-active contact
» Receptive Telemarketing: response to the demand generated by
advertising and other marketing actions.
» Blended Telemarketing: receptive salespeople assuming a
proactive contact posture as the number of calls decreases
63%
18%
* Trade marketing and other services accounted for 6% and 11% of net revenues in 2010 and 3Q11, respectively
10%
59%
20%
Services
Main Models
●
Per WS / Menu
●
Speaking Time
●
Per call
●
Per client
●
Per WS / Menu
●
Target
●
Proposal / Service Sold
●
Per WS / Menu
●
Performance
Fixed
Variable
Performance
8
CORE BUSINESS BRAZIL – CONTRACTS
●
Telemarketing
●
Debt
Collection
●
Customer
Service
9
Others
Telecom
●
4 of Brazil’s
largest banks
●
The largest
credit card processing
company
●
One of the leading providers of
personal loans
●
The largest
insurance company
●
One of the largest
retail
companies
●
Major
telecom
companies
●
Two of the leading providers of
pay
TV
●
The largest
airline
company
●
The largest
benefit card
company
Among our
139 Clients…
CONTAX’S
CLIENTS
Financials
CORE BUSINESS’ GROWTH
Net Revenue
R$ million
Size of Domestic
Market
2,040
6,116
20,917
CAGR 25%
10,831
CAGR 12%
CAGR 14%
2000
2005
2010
2015E
Size of International
Market
Net Revenue
US$ million
30,323
39,300
51,800
66,200
CAGR 5%
CAGR 6%
CAGR 5%
Source: IDC, Advisia, McKinsey,Tendências and Contax
Contact Center and Debt Collection
Source: IDC, Advisia,Tendências and Contax ¹ Gross Revenue
CURRENT CORE BUSINESS¹
PER CONTRACTING INDUSTRY
DOMESTIC MARKET
2010: R$ 10.8 bi
CONTAX
2010: R$ 2.6 bi
Financial
Others
Telecom
36%
7%
45%
Financial
Telecom
Utilities
Others
1%
7%
37%
56%
Utilities
12%
12
DOMESTIC MARKET
2010: R$ 10.8 bi
CURRENT CORE BUSINESS¹
PER SERVICE TYPES
CONTAX
2010: R$ 2.6 bi
13
45%
31%
18%
7%
Telemarketing/
Retention
Customer
Service
Debt Collection
Others
5%
64%
18%
13%
Others
Telemarketing/
Retention
Customer
Service
Debt
Collection
Source: IDC, Advisia,Tendências and Contax ¹ Gross Revenue
NET REVENUE
(R$ MILLION)
EBITDA MARGIN
(%)
ROIC
(%)
¹Tivit: Revenue of Contact Center and other BPO business ( excludes IT services). 2010 estimated data. ROIC is based on consolidated data. ²AeC: Consolidated data.
³CSU: Only the Contact Center business for Revenue and EBITDA margin. ROIC is based on consolidated data. ROIC = NET INCOME / (SHAREHOLDER’S EQUITY + NET DEBT).
Source: Companies’ financial and operating statements / IDC. n. m. – not measured.
PLAYERS IN BRAZIL
14
Contax
Atento
Tivit¹
Dedic
Algar
Teleperformance
CSU³
1,602 1,807
463 513
162 247
166 161
308 402
224 273
129 175
19% 22%
17%
18%
5%
5%
3% 4%
2% 3%
2% 3%
2% 2%
MARKET SHARE1,775
2,161
2,398
11%
2008
2009
2010
21%
19%
5%
3%
3%
1%
2,103
606
584
5%
338
311
AeC²
257
160
1% 2% 2%
CSU³
Contax Atento
Dedic
Algar
Teleperf.
15.7
12.5
5.0
10.3
2.1
12.5
CSU³
Contax Atento
Tivit¹
Dedic
Algar
Teleperf.
55.7
32.5
17.2
-6.4
9.1
-2.5
11.7
12.4
31.1
12.8
9.4
12.6
5.3
-3.6
31.9
14.2
-1.1
12.7
-6.4
18.7
EBITDA MARGIN
(%)
ROIC
(%)
NET REVENUE
(US$ MM¹)
INTERNATIONAL PLAYERS
15
¹ 2010 average BRL
* Convergys and West: Only the Contact Center business for Revenue and EBITDA margin. ROIC based on consolidated data. ROIC = NET INCOME / (SHAREHOLDER’S EQUITY + NET DEBT)
Source: Companies’ financial and operating statements.
Contax
Teleperformance
Convergys*
Atento
West*
TeleTech
966 1.083
1.363
12%
26%
2.626 2.577 2.731
-2%
6%
1.955 1.987 1.839
2%
-7%
-4%
20%
1.914 1.843
2.206
1.258 1.255 1.174
-0%
-6%
2008
2009
2010
-17%
-6%
1.400
1.168 1.095
15.7
10.9
13.4
11.2
11.7
16.1
West*
Contax
Teleperf.
Convergys*
Atento
TeleTech
48.7
-5.8
21.8
7.8
3.6
West*
Contax
Teleperf.
Converg.*
TeleTech
12.4
29.4
10.3
10.8
11.4
15.6
11.8
5.8
-4.4
22.2 21.1
Atento
2.5
16.0
Market trends
and strategy
Contax as a global BPO company focused
on customer relations –
CUSTOMER
PERFORMANCE
ADDRESSABLE
MARKET
(R$ billion)
10.8
2.0
5.5
9.0
15.0
42.3
CORE
BUSINESS
Addresable IT
Services
Trade
Marketing
Back -
Office
Voice-BPO
Latam
Including Contax’s new
business pillars, the
addressable market
comes to
New Markets
17
R$42.3
billion
IT Services
Geographical
Expansion
Marketing
Trade
Internet
Back-Office
●
Customer services
in the point of sales
●
Core Business in LatAm
●
Acquisition
●
Customer Service
●
Relationship Expansion
●
Maintenance of the Client Base
●
Debt Collection
●
Service and support in social
networks / Web chats and
Web based customer services
●
Expand offers of
administrative services
BPO and CRM
●
Customized solutions
●
Complete IT solutions for the CRM market
●
Technological enabler of the new business fronts
SERVICE OFFERING EXPANSION
Integrating the multiple contact channels between our client and its customer
BPO of CRM (customer
relationship management)
Contact Center
and Debt
●
Technology services – Todo!
CORE
BUSINESS
in progress
19
Acquisition
Acquisition
●
POS – Trade Marketing – Ability
●
Back-Office Solutions
CONTAX’S STRATEGIC PLAN
CRM BPO in Latin America
New
products
New
geography
●
Customer service
●
Debt Collection
●
Telemarketing and
retention
Contax with a complete customer relationship
management solution in Latin America
●
Acquisition (operation
in preferential
countries: Argentina,
Colombia, Peru)
NET REVENUE
(in R$ MM)
GROWTH
Since 2001, Contax
presented a historic
of
growth
above market average*,
becoming the market leader in 2005
21
Source: Contax and IDC
*Contact Center and Debt Collection CAGR (2001-2010): 18.2%
CAGR: 36.0%
2010
2,398
151
2001
2008
2009
1,775
2,161
9M10
9M11
2,205
1,760
25%
EBITDA AND NET INCOME
22
EBITDA
(R$ MM)
and EBITDA Margin
(%)
Net Income
(R$ MM)
and Net margin
(%)
2007
2008
2009
2010
339
249
190
297
9M10
9M11
162
215
12.4%
13.9%
15.7%
14.0%
12.2%
7.4%
2007
2008
2009
2010
132
92
47
109
9M10
9M11
7
75
4.0%
5.5%
6.1%
4.5%
4.2%
0.3%
CAPEX
CAPEX
1
(R$ MM)
and CAPEX/NET REVENUE
(%)
23
133
168
159
2007
2008 2009
161
2010
9M10
107
9.8%
9.5%
7.4%
6.7%
6.1%
9M11
104
4.7%
86.3%
80.5%
92.3%
75.8%
79.1%
65.1%
Growth
Revenue
13.7%
19.5%
7.7%
24.2%
20.9%
34.9%
Others
ENDIVIDAMENTO CONSOLIDADO
Breakdown
1
(depois dos efeitos de hedge)
Moeda
Interest
●
Custo Efetivo da dívida no 3T11: 85% do CDI
●
Prazo Médio de 2 anos
218,6
387,0
898,2
-165,8
-70,7
545,1
Dívida Consolidada
(R$ MM)
Dez 09
Dez 10
Set 11
Dívida bruta
Dívida Líquida
24
Reais 93% Moeda Estrangeira 7%TJLP
46%
CDI
37%
Outras
17%
1 Em Setembro de 2011CONSOLIDATED DEBT
Total Debt Profile
(After hedge)
Currency
Interest
●
Effective cost of debt in 3Q11: 85% of CDI
●
Average debt mature 2 years
Consolidated Debt
(R$ million)
218.6
387.0
898.2
-165.8
-70.7
545.1
Dec 09
Dec 10
Sep 11
Gross Debt
Net Debt (Net Cash)
25
Others 17% TJLP 46% CDI 37% Foreign 7% BRL 93%Esta apresentação contém determinadas projeções do mercado que não são resultados financeiros reportados, nem informação histórica. Estas projeções são sujeitas a riscos e incertezas, os resultados futuros reais podem diferir materialmente daqueles projetados.
Muitos destes riscos e incertezas relacionam-se aos fatores que estão além da capacidade da Contax em controlar precisamente ou estimar, como condições de mercado futuro, flutuações de moeda corrente, o comportamento de outros participantes do mercado, as ações de reguladores governamentais, a habilidade da companhia de continuar a obter o financiamento, mudanças na estrutura política e social em que a companhia opera ou em tendências ou condições econômicas, incluindo flutuações de inflação e confiança de consumidor, em uma base global, regional ou nacional. Os leitores são advertidos a não confiarem, plenamente, nestas projeções. A Contax não tem nenhuma obrigação de publicar qualquer revisão a estas projeções que reflitam eventos ou circunstâncias após esta apresentação.