ATTO - Earnings call transcript Q4 2020

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Operator

Good morning, and welcome to Atento's Fourth Quarter and Full Year 2020 Results Conference Call. Today's call is being recorded [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Mr. Shay Chor, Corporate Treasurer and Investor Relations Director for Atento. Please go ahead.

Shay Chor

everyone, earnings fiscal conference welcome, full quarter and XXXX year call. you, to fourth our and Thank

Here with Chief us Atento's Chief for today's call Officer; José are and de Azevedo, Financial Executive Officer. Carlos López-Abadía,

the of Atento's turn operating will questions. Following a call X. financial your review for Slide results, and we open to Please

that standards. made that please on prepared been Before has will international call note under proceeding, reporting this certain comments financial information contain financial

guarantees those various with forward-looking read on here addition, second future this results complete review to contain may involve which the and performance a disclosure of In slide forward-looking the not risks documents the information earnings call that of and as relevant factors. securities we statements, may encourage are filed to presentation. disclosure constitutes regulator, of differ in you call uncertainties. you our statements included publicly We result Certain materially the our and available invite from

presentation I be Carlos. at year-over-year turn are Our public all constant noted can rates call over found the note now filings basis. investors.atento.com. currency that on and growth a otherwise, unless will earnings to and Please

Carlos López-Abadía

and good all you. full accomplishments. afternoon has Thank morning of but year you, all of been year to a of for of many good XXXX challenges us, Shay, a and also

finished QX trend. with year upward have We significant with strong the results, a exiting

of to exiting it our despite XXXX than in our clients us to operations our strength received. at the meant the restructure that of performed the and home COVID of defined of safely At improvements people deployed by many we ensure of with locations devaluation, Last our and our Atento, and the the core the service maintain impact operations employees flow care XX% the our more of of been to impact reorganize and real evidenced revenue, year to the culture, EBITDA efficiently. Taking employees, center that the for needed board in the financial have ensure secure has the awards the safety as by to work grown pandemic. We is be have QX to provided at margin. XX,XXX cash We safely Brazilian across and in services company. numerous crisis the secure

During modality, at completely the which deployed This year, we a portfolio. platform of new service support have part our now new a to standard service is work is home.

We our have attractive we health expect the Atento@home transformation. to clients down current When to well be not very slowed crisis. we pandemic, services the continue beyond to our manage

to We of the growth. sales, have transformation our leading accelerated an XX% year-on-year

More importantly contribution the points of is in with percentage margin. sales quality those XX improvement an of

where continue also growth high-growth We showed make XXX% U.S. respectively. XX% the we QX, in verticals and to progress market, in and

Despite on with client. the our Telefónica. continue markets a sectors, We remains Telefónica relationship new growth develop focus and also and to high very important

gain in to of continue contracts, while next-generation with wallet Telefónica, new share traditional We and services. winning both

while on delivery, We achieving This has quality. at while done our savings improved been more home. restructuring million, our than $XX have also operations improving of cost

and NPS in of highest customer Atento. the the XXXX in sat achieved have We scores history

innovation transformation. to continued have We our advance

next-generation XX% reached sales. Our services portfolio of our has total

Our the our ISO commitment becoming in sector in to innovation to management company led to first innovation invest get certification. has

us internally artificial analytics for agile work established innovation brand have as to intelligence, such key space our launched start-ups we networks. social to addition in Atento a activation In for on with Next, and with areas partners, work

was uncertainty and hedging face financial of both also successfully paramount. interest We liquidity our principal. until operating have in flow refinancing the year debt also pandemic XXXX, for improved when our cash produced fully record the strength, We've a long-term in

importantly, structure. shareholder changed and but we have Finally, governance less not our

our in X expanded and world-class a our set independent welcomed the new investors to community directors X. shareholder out to have number Board of of We of

XXXX force, in has and clear, showing Frost of manage the to all recognized sheet. Maryland EBITDA and some we're globally analysts bring the XXXX strong Latin vaccine XXXX are leaders us of placed in successful Everest significant stock year. Gartner improved by delivering as we debt Our and today companies performance, full innovation ranked the has is industry with us And but contract top to at But beginning win than additional as has an helping been line, by to markets. & progress position in recent of pandemic still continue XXXX an optimism. and growing XXXX. in America. the Sullivan as us also improving manage the global confident in of makes last I'm own challenges. recognized improvement much To one in happy a expanding the such X,XXX-seat rate of in quadrant. we particularly were to continuing exit in clients. report A fronts, fastest Thus, our rollout. leader its be us state a Brazil, see will key with better market wins, important deleverage at balance the has the and top the us results the

plan confidence while we of having us successfully positive challenges transformation, outlook not historical very continuing a for a the the know much. José? Thank we on XXXX, our already of gives some those know showing results you yet. very Some But navigated future. and may transformation with and

José de Azevedo

mainly you all more terms everyone. and that by this focus Brazil, by presenting in the growth of We will you, the you X.X% reached driven down EMEA revenues EBITDA I grew Thank in in progressing by that recorded regions are quarter of and EBITDA highlights on X.X%, day, in fourth good margins. and EBITDA, the want the million. breaking $XX.X it the in But how start I during grew we detail that multisector. slide are regions. Carlos, in to especially to quarter,

a presentation. to compared with us quarter during same margin for last this the at margin results we All guidance XX.X%, last XX.X% performance and high that we for Horizon highest and to XX.X%. with a a board. the America date we well the consolidated continue confidence XXXX 'XX. The of X.X while increase EBITDA between give the the deliver this will reasons the XX% our and of negative you implementing the plan Plan of between ended percentage achieve EMEA end XX.X% side, I and XX% was year to the and detail quarter can comparing year. from as EBITDA will positive performing results the margin an since reached very regions Brazil XX.X%, margin Three On across right margin to points are implemented profitability XX.X% see, of

you EBITDA, and is like the reported here the the constant $XXX increase the is America, the currencies major XX% devaluation to the Here, real devaluation that basis, year. period. more EBITDA we which same XX% especially can pandemic Even a but currency. deliver of see in of impressive, delivered in a were in growth million a information, on What we I'd despite X% during able to Latin Brazilian the highlight

margin penetration will was driven by result is reinforced X.X is in a EBITDA This by in prioritized strategic I point in line versus which efficiencies our operational increase X increased multisector, XXXX. growth slides. percentage Our a the of and which year, U.S. detail top plan, the the XX.X% that the next

and to the from have around increase a X multisector revenues last ended coming driving also faster, in the the revenue of mix. as with sell multisector has years, care. health search not Plan vertical but of percentage fast-growing stability as that tech, able verticals to diversification XX.X% Horizon In margins. e-commerce year improvements with only as percentage the allow X these We media, us better services Three These in next-generation the accelerate XX%. total penetrate further were points we been revenues of more we Our grow to an a after born-digital,

as verticals we more financials revenues more double telcos tend slowly verticals decrease. of even total, and the mature are While grow a percentage with to and or these

of On any are lower other heavier are Telefónica year-over-year, they much revenue a revenues mix. represents though revenues. the Even XX.X% total they hand, without doubts now

that been have relationship of including reshape the able first new Telefónica, exploring to in year semester As our programs already reflected explained, new Carlos this will with results. already partnership, early added we avenues be

our new that $XX forward XXXX. out slide implementing come across million footprint. allowed From shared us us result especially that conquers are was The the result with service on in XXXX XX% and milestone to to be and in will expect the Telefónica markets end model I'm as and we our and a the a this of verticals zero-based revenues a most of reduction as savings to SG&A happy client of to Therefore, and XXXX. more cost XX% in place our to that U.S. between structure we increased XXXX sites we Atento was And This important that reduce had in consolidated ramp-up cost expect carried operating on, takeaway turnaround by the full in achievements. diversification, from to direct report slide programs, in important gradually we was represent the of will of the XXXX is $XX our move entire margin to million efficiencies will the reduce clients an be we revenues the mid-XXXX. $XX high-margin of number delivered fast-growing functional improvement as structural the the strategy expenses allowed such mainly in to the XXXX the we that As rightsizing of that is the million from promised, process. OpEx revenue profitability. nearly of improvement as attests our XXXX with annualized this delivered remain savings company, budgeting

to of million working implemented operation As fourth every million operating generate $XX various cash in quarter aspect flow, of initiatives were alone. in we a $XX from result the capital, in able to the EBITDA

with collections much free but receivables. million $XX The stricter cash flow revolvers. will years. moving million, XXXX, is generated negative control year reflects free of also terms less balance XXXX, our ended million represents in how efforts recover in flow, we the volatile the in to and EBITDA cash in enhanced the the also which $XXX of overdue changes to stable drawn around our X compared increase including forward an high $XX with working $XXX notably of manage in a working a $XX We period. This capital, way In our of impact to XX per year DSO a the million million period, the the for in only period not stability greater from provide ended positive of at result from that effort $XX cash It the capital the flow days. the of million cash improve the next we

February the Brazilian the XXXX, pandemic oversubscribed evolve. how the in was book and on repay our While on and our our related average that with to least, X.X is also to not until maturity. in to are debt are such of to these X in cash the We we years Despite will our consists but debt story life delivered we month. September from essentially mainly expect we capital flow in mature Keeping and structure, testament and turnaround pleased The recognized we these uncertainty instrument as XXXX, hedged principal secured XXXX, last The by as new it new a throughout that will solved concluded increasing revolvers $XXX senior coupons being and have cross-currency February depend that soles hedge report we investors Xx was a indeed concluded process commitments years. million years our kicked real, X.X of QX. notes Last with last year. swaps off just euros. in notes QX for refinancing issued Peruvian investors, a

the result BRL which the X.Xx, the in generation of from As as a with year EBITDA to debt pandemic combined of strong a down CDI a the Brazilian the the per flow previous remarkable cost year, and the XXXX. on with per XXX% totaling our net year XX% and higher $XXX approximately CDI, of to of challenging environment the real of the million considering QX the leverage X% went last to Net free led is cash BRL effect cost reference, decrease EBITDA. XX% reflecting devaluation This compared X.X% to bond. current equivalent is compared the

key X.Xx. much months. one catalyst element momentum ahead. stakeholders We much sheet no are interest with next that aligns continue and relevant committed maturity operation all very our be these our with years that have that to the years to X to last starting superior we next a balance on in XXXX, us XXXX XX allow efficiency out the the is in to our will to in come believe operational you to believe continue debt in and important carried the of shares with all of X the deliver expect value seen to are We profitable We Atento. to target we strong XXXX deleverage of there is and between more our your And will most we for the deliver shareholders. for Thank more interest

Operator

question [Operator Instructions] And Vincent Research. Colicchio Barrington today our come first will with from

Vincent Colicchio

Yes.

So your standing now a with quarter. debt think you're I'm some you Carlos, the nice that position? of curious, customers do your will better improve in refinancing financial

Carlos López-Abadía

Thanks.

we sure to company refinancing, a a yes, on structure. I whole, the think as everybody have probably understands important for make think that investors is think margin, the capital think, I for I I but that the solid very more

enough look things. into sophisticated these are customers to Some

positively. So and said mentioned, obviously and as has feel, milestone it's principal case and of and mostly management issue including investor conditions, I good the -- for until hedging interest, that -- -- I would which -- the board would this in issue. the we've done an because a José capital it the the resolved But XXXX, and us, type think this was very been we sorry, We impact for has plus of not before. we

from perspective. perspective, stronger So a feel, we from financial this much

Vincent Colicchio

heard things of go once would some the home? do into keeping other the We've past security and any makes clients about technology players pandemic, what for sense you contact at to that the Thinking have from center model, the at okay office them quality of business get want we be portion your some point. back

the like that? does Any mix thoughts what term? on look just longer So

Carlos López-Abadía

Sure. asking, It's of are including lot That's a ourselves. very good one question. people that a

the that let boundaries right? that And Let can to continue something be I at in because and things say pandemic accelerated know, what this crescendo. that -- is me already know, and we to society. is this In other to away, The I the of this me things in that of crystallized. happening words, work one not going were do Why tell tell I going you. home you what the tell don't you current has is go it's

things So unique not has the but accelerated. to are pandemic, that necessarily the pandemic

very continue gives around the case. direction. looking a pandemic, the for to now the them little The in broadly, employees perspective, will company It it's That's in a have continue. think clear that look sets The probably the small customers. resiliency crystal a it participants, much -- to to distributed and recruit most happen to all will or you there that What you specific the workforce concentrated gives and will skill that trend geographical right, So from of for attractiveness customers will for dip ability home, importantly, you're don't -- as I down is the base. it the gives particularly area. upward more for think clear work then be that whether But us. after the resume trend? I at

So for a ran a employees. short loved We And surveys, there by for lot of love Employees us, lot although an it's and benefits it's customers. of investment it. term. the in absolutely

and employer term, So flexibility with more associated at there's for us also potentially it as scale. but costs a doing In long savings. the provides an cost also some this provider,

nobody you that different market, in we number, of going to clearly with what knows. I that the can we least reduce what depend Exact depending trend with that consolidate plans on direction. have different terms at the is we scenarios. or but We tell that could conviction certainty on It's have and scenarios centers do, will in yes,

Operator

Mr. to received [Operator would questions Instructions] turn webcast. like via the for conference the over And I now to Chor Shay any

Shay Chor

Thanks, Col.

company's for policy have 'XX we on it? view So of What and the buyback priorities are dividend years? capital a X question what the shareholders' are for allocation the share next here about And the and 'XX.

Carlos López-Abadía

Sure.

and came to Board continue But time. will time our priority cash. has us company. plans I no the buybacks, of the and said the for question in the dividends there's probably growth adequately. for to we use dividends priority authorization buybacks, on will invest at repeat have Those Specifically critical in I this The which share extended are the in up, what every that to the transformation -- is uses of authorized

Our that year. policy we the long-term is any quarter particular company, make sure invest the not or to in value of

of first so. limited priorities of the and is in we to do we those that again, with use in But the have with the company. continue do So growth the and use in for buybacks, the and a mind past and the to stock cash will investment used cash, foremost, authorization

Shay Chor

As sense same been here have as X.X do talking and you slightly once them? we've the on period you plans the sense years over to of of on a follow-up any lockup over? the lockup. of theme they lockup question Do their have probably the shareholder is And any what have

Carlos López-Abadía

mean, direct the probably shareholders. you I have question to Well, to that

far As of -- I management them. any of or I to worth. shareholders. company not it, the pressure their definitely be have any urgency of as communications sense to not the I asking or know so want from But sense don't of of them in like host the from to don't particular I of there's sense would would whatsoever to terms you're any intentions have to any or the no presume indication, urgency whatever shareholder, But my the as that's

Shay Chor

can higher us because we through us through us can And 'XX $XX to those and One explain cash will expectations? flow, of cash understand you interest and run so parts? the refinancing, be moving the around the is question here debt on cash CapEx flow flow. million help Can assuming your that you costs navigating your

Carlos López-Abadía

-- is probably, can see it basically Shay. I very you, something sounds already José is him want to I It direct to As you and specific.

put I José? in want my mouth. my So to foot don't

José de Azevedo

fact clarify, But have will year. to a we year between a million, we free interest because it's million that is we end our invest $XX and X XX this interest of Only flow to million Yes. if rate. have the USD have a more high of USD expectations cash

Shay Chor

add just those I Yes. help on people understanding will there numbers. to

around CapEx; $XX EBITDA million which million each your and you you but one around, taxes; be the mentioned, capital X-X, million, So you we then million, of have in depends model, do in José $XX million. working in headwind; obviously, X-X, and can then assume on as how around should $XX $XX or $XX interest

So leverage pretty then much do we to understand annualize million -- is assumption. this around in you to question here margin own and QX, got terms conservative, get free trying looks looks cash That's of people conservative. on $X guidance in your -- $XX million margin of conservative your a all in I've to flow. how and seasonality aspects, of EBITDA looks if then EBITDA terms looks they EBITDA

the us good So got how in provided rationale you can of you walk your that -- guidance in QX. results behind on light you the

Carlos López-Abadía

Sure.

I the this not time hear question. first So

seasonality QX you high let company, and the we back into this seasonality. look go history traditionally have more see difference at is So how is you mean traditionally in QX clearly separate while the if That history. a Seasonality a -- you me build low pronounced much quarter. can if I quarter, was the guidance. we of

unavoidable management has seasonality, we start things team the but year we hey, improve of One in factors certain is, can understand how there's of we done this the QX. that look,

We rest year. of an the the easier job in have

how what improvement have look So you closely. is we're we if at improved, at. look QX-to-QX we the And looking

seasonality between trying there and But effect we're is QX seasonality a So effect. QX. decrease to that

probably a we numbers. multiplying at QX to Having wrong do said us the how see giving that, and you take is look in QX QX. by So X

potential improve that Our than year. look, much to do our year, to year, is looks manage year from management can of credibility better? of an better expectation can, Can guidance. we to quarter a do quarter quarter give for X year, example, after we don't aim For the sure, having any think and Well, markets do that? right? you that earn we're range can in team to high and after announced It is X the on or -- very day investor A a year this operate, any that but course, prove this Of year. them? our downside? America, or this you. trying with guidance? you circumstances We we We we to How -- particularly intention year that continue by to are. quarter, we some to the in is there promised X builds Latin expect the We of certainly every where number What there are we improvement you. construct fundamentally after credibility can. the conservative of I

course, year. that quarter earn and that a feel have Of this that range a guidance high the of where by to the we to Could better? we deliver quarter expect that, confidence confidence of part to confident But base after investor We delivering we you. And after we do you of very is comfort can. making year giving it. is

Shay Chor

the Col, you we questions phone over over here? the have with continue questions Okay. webcast the do before

Operator

question Santalucia. Beltran We our from first do. Palazuelo And with come will

Beltran Barroso

maybe the and CapEx. employees results. I CapEx like the the hard of you have you're questions, allocating and and, I congratulate work very of maybe very for let's where Atento X to all positive would say, regarding

constant the could currency profile, growth. you let's give us If more profile mid-single-digit you The year, gave for see.

and with are value-added generated Atento question market? generate little and the strength can back could with has Atento maybe the growing in clients? what cash regarding in to this acquisitions, the the then possible is you're flow company add free that end improving strength, the it the seeing seeing that maybe If relationships its higher? is do think them. actual you about bringing of talk can actual about of generation What everybody the Is you is the you year, the keep company constant that clients possible clients second the and currency a this bit growth to And you're maybe

Carlos López-Abadía

Beltran. hear to from for your you Okay. questions. Nice you Thank

Let part please, remind José any question, if also CapEx forget me specifics in thing, but also try Shay comment flow. particularly please on and going as cash to the and the well and to some of ask I'm the I whole me.

hopes terms give one to more very in to because but all in ways, the you prudent very In still CapEx, expectations and CapEx. how costs managing trying we have by in crisis done disbursements But of types, of the We're will have different prudent, imagination we're great and be specifics. for health environment. prudent the thing we of that keep you the be year, complex -- and prudent we're forecast, our a and long constructed not mind many Shay budget the still as a and prudent make conservative José we're to stretch with with trying very worldwide prudent way all know. We with

optimistic So being feel I very you about CapEx. told prudent said Having XXXX. with that I that, we're

in QX to the that sales in signs, think have the of XXXX. a the seems way potential we the started and indicate year I we've lot

to will -- if giving what what that prudent you, it's -- materialize if for changes very have be explain than what we'll reasons, in is in plan, for that budget, we a and happy CapEx invest we will exceed, the have to the be we it prudent you plan expenditure. very if budget, given happens. and have more transformation, potentially increasing good we growth the of things But we're I So in sure, better the some that you in

specific part horizon. and in Second on nothing M&A acquisitions, the

by fiber Atento, We kind as have We to organic company. fully have discussed we on executing times. that? know, many that I mean are do in of the transformation transformation based, I you we do transformation. believe every the change our of What to

We the have particularly, We we key. of But right? do. talked the me cost, emphasize pretty much about everything operations, innovation, let management capital touch structure, Innovation is sales, initiatives in also in back office.

changing that made lot operate a in do. part something it that everything we internally. something everything to do the not area be of employee way of you next-generation day. have way And the that thinks you terms services, do. Wednesday, way of requires do Friday, Innovation it's every that new think, that to It in operates. the has services, be you don't We you progress Monday, you but Tuesday, Thursday, and part has of do every It you is

You a do cannot acquisitions. of number bolting on that by

you set to That's accelerate very that skill cannot very need specific specific or or You some complement buy can't, that organic right? you that transformation. say not technology to

So And Did miss that I discount that's is that give the want at the anything plan I way the in focus the we're us radar you don't I we don't the mind. look to But that our that but at We tell it, have in that the frankly, you. described on results Beltran? any to have quite the we so track. confidence far part, right I moment.

Beltran Barroso

you harder. the and and [indiscernible] No. Thank the the all team, support all working for work of your the you and hard answer, much for very -- from

Carlos López-Abadía

you José to anything Beltran. Shay, add? you, Thank want and

José de Azevedo

we another maintenance. Yes. the only, -- And the On about, and basically it's we the that is $XX Capex, from $XX is tell new if expect talk high that $XX -- million in money contracts we amount for only can save million million I that because to difference, have for to cloud, the terms is a have internal -- maintenance future. our movement of is that we in of to opportunity need on-premise, digital the more our inclusive move big of and IT part big still we

Shay Chor

aim project the around at And growth into is we return invested -- growth you when we Yes. minimum Beltran, is that on I'll -- here, XX%, the XX CapEx thing with understand look only months, that and capital payback look that just of with I add help we the to average CapEx. the

Operator

come Akshay And our from Kyma. next Shah question will with

Akshay Shah

little year. And clearly management new has at look, Beltran what for what a you of applaud I I the been would I in numbers team tough the echo bit look said. and mean a just mean, performance the shareholders I'd QX. the for

I from ago company previous under unrecognizable is ownership. think years the X the

of lots a got that. I've So for questions. credit series of

X put So maybe a at forward just I'll them time.

right? multisector now down what versus the minus Telefónica that like Brazil too narrative, it a plus just supplying is or mix out, obviously, industry, looks progressed, XX%. business evolving multisector As be as and -- at rapidly. evolving that look and CX evidenced that's seems telecom Because narrative most long, quite because looking be Telefónica by as to for to your the people have into business What is getting why maybe use I Brazil, you seems viewed to think XX%, Atento

an you business? looking investor question at Carlos, would -- a maybe looking that out how So that for X-year narrative view a of define for Carlos. with sort multisector

Carlos López-Abadía

Sure.

So two things.

answer Let that quantitatively and me qualitatively.

fact, type So our we decline. that, and improve. portfolio continues continue continue client that, important not mean Telefónica heard to ways, client. be remarks will of Having the is the very size, that will because that in is thought we length in in expectation to the many weight and you but Telefónica of said my prepared a relationship a the that I cherish in relationship, that to

in provider. We me share to are tell be continue that. get best Telefónica position, consistently have wallet feedback strive we clear that increased consistently right? their And that our to about We from of the be Telefónica. let us we So

that sector make focus more bit and technology focus saw growth media, tell will market traditional also much business sectors, a that or direction about less of services discussed business, includes a other Akshay, Also that this continue industry, Telefónica higher that foresee of can you know, on and in and some the only includes ago. the in than What few and on not where this decided We Telefónica that of evolution advanced multisector? As we call the telecom sectors a of bit companies born-digital a more companies, side, but those internalizing on. to in the we couple the ongoing services so lot do other to moving made or a on multisector, grow We of to the normal. we banking we the Now might towards. shift traditional an years growth And is a We on companies, we're times. some the more choices the interest depend is I at qualitatively, continue that's rates. the to what you significantly of basis.

those have for that had segments -- XX% lot today. the growth in in sell is -- we services growth next-generation The segments. being those we of mentioned, of I a probably what growth we So in example,

may with into is a doing. which job, moving million intend we long of but tends start do good $X that high-growth beauties that the to we grow as you do to segments a you of contract, continue with and as clients One your

on expect higher our rate multisector growth, that and growing I should that expect continue to to better be you more at industry continue and focused. sectors digital So have market to focus we the those -- than or

proven said create practice. before, has which I right? bit in theory, is when it's As those This you one to plan, initial be tested a a our of successful. plan, very to You need be aspects a of of

So we will your continue answer it. to Did pursue that Akshay? question,

Akshay Shah

looking base and Perfectly, your define out. Carlos. would The José, vein, next similar really, a but describe on as be evolved, business cost you for one the has how might

need also You had clients presumably, different service your the telecom model. pandemic But legacy impact your these from of sort multisector traditional clients. a WAHA

to is flexible cost more also getting line trying the to get what evolves. base as the So I'm top

José de Azevedo

Can Yes. Carlos? answer, I

Carlos López-Abadía

can, you course, directed to you, Of know... so you this is

José de Azevedo

your Akshay, question. Okay. you thank No, for Perfect.

the our we it, we will have still we with you basis, done bit all, we ongoing as cost needs Even because like can reductions of say. in can in -- another -- I future of new First lot name. the efforts if of $XX Yes, But type this or for of million. we cost less with consider mix. a fact, the terms products, operational of OpEx, have year structure have Carlos improvements know, as a

kind For new example, clients. clients, these we the technology attend to of more need

CapEx. these years of be but spent in you in is the That years should amount less. we needs, our new we the yes. last of But allocated it see this compare that course, in terms our the less, future, more CapEx in for we And should be peers, or terms amounts X will that more -- almost or be spent allocated -- can the insist -- we was Of that's spent -- of CapEx. be when against will why clients X that

-- million some that the terms have costs pandemic. of because mixed with as we of mentioned, amounts plus have OpEx, terms maintain costs, terms of In ongoing in I still extra Yes, still we we costs, in to is to we adjust But example, some close can these that work invest course. sites, that the have yes, example, maintain. future, for In on of there for to have we still we we some why structure. the $XX

new Ongoing because invest with not basis can in is a we I operate. new with OpEx. in that less In have XXXX, the in the think for expect more we bit XXXX. maybe basis, we'll less is future, XX sure to of fact, terms that technologies, but the direct million need the people not today, more, year. ongoing of Capex, USD is we what to for And OPX. for more OpEx, Yes, this Yes, the more adjust technologies, terms

Akshay Shah

that XXX% if basis And local you But Does up X done equity? minute I how make XXX you CDI business decision still Obviously, think high-yield CDI. hedge? by your congrats currencies. point, to reporting that applaud know through it and up a of of the of currency local final X predominantly, also question. costs, helpful. it firstly, your talking be a Could goes -- into Very then local cost your I in nature does currency spend just with on refinancing to secondly, local [indiscernible]? by go sense And you currency said about company? hedge the exposure getting terms points percentage then dollar

Carlos López-Abadía

particular X for this think hedging is I guys. you

Shay Chor

Yes.

hedging the take me let one. So

that here -- maturity percentage and from is basis. CDI The the X right? rates have had had as BRL cost. of pre-fixed, gets actually, are of cheaper obviously we now, pros implying if to curve we until alternative, when had had CDI-plus we pros that to right? we up a the it we alternatives, the -- we So cons, and then hedge, going look they We We the is do did fixed what predetermined a alternative have the started had alternatives, them we on entire we a of all and not the believe would curve into have than doing a that

with the and to XX -- way plus be XXX%, the just doing And you're the principal cost would XX% close we exactly did predetermined BRL give between CDI, interest for percentage that's on the of right, XXX% of it idea, you an and So to the XX%. CDI.

So CDI X%, is now interest. X%. X%, CDI of as as to We pay right? of paid So goes If we that. simple XXX% X.X%

X%. we Now the is we between the can pre math CDI the up -- the X% if -- or breakeven to that did fixed as go our the floating did, from did. we the

is X X% years. breakeven. the the refinance X less first our it for years we we'll maturity, the interest evolves or as a we So the we that it, X The on to X thought savings ahead the to did better debt years is then always and expectation do of way debt. how the see is be in of way difference pay or And remainder in first would the it X

Akshay Shah

was Very clear. a There second part.

Shay Chor

listing are U.S. BRL thought doing on in currency I second reporting it Carlos other this what place the in instead nature is talk and a the question. dollars, U.S. -- about can if or think of maybe about we part, than if plans doing different and of your And José,

Carlos López-Abadía

benefits in for have the do being as places a plans, to know, revoke. matter. any being the in occasions discussed -- in listed private no listed being No Look, specific actually, U.S., the or that and on many plans the you other future of near we company

So question? part -- the other your of sorry, delisting, the what was

Akshay Shah

delisting and has a currency, was necessarily. now exposure, hedged. a right, especially wasn't question a it out delisting question. It not American Latin is after more dollar the question around was local It the a No, out, company been debt

financial form Brazil a just it's representing but investor, remain on taking I all. statement, representing in just to continue thinking there think a consciously end your the financial I right, think right? as any NYC, Brazil that statements, to I the of reporting or up And you your is dollar listing real. that [indiscernible], how So more that's it's just clearly am -- just in through

Carlos López-Abadía

No. Yes.

Is take would. suggestions. Okay. -- represent I think, would clear was There occur there happy to we any I a to us, way understand. to if that one,

are. there course, Of

have the certain the financial performance are of know, suggestions best of do any trying we in by. there regulations mean could we for consider communicate that that opt to to we to, and we possible company. I you way may in something you As transparency have. But abide addition terms will the

operate, positives have market, at terms they some the intrinsics some In that challenges. of we the of and operate we the market

We all and of as or the talked Foreign debt most exchange the instruments. for dollar other are a hedging of investor is one of you clearly challenges. about the you U.S. for

a balance use immunization. word, We another the currency. word hesitate also to balanced is to and very same the have inflows -- called -- outflows We think it's technical I I within try

So from perspective. balanced fairly that we're

U.S. -- which good very a have addition U.S., the in market, well. some I see noticed In to EMEA quarter the good U.S. of that in currency growth growth more on a very year very to particular is and emphasis that, improvement XXXX on us. put of the markets in hard put But are been performing I had has well continue and a XXXX for we may we strategically, growth. a emphasis our you as of particularly lot that significant experiencing trend.

not of me long a even intrinsics be from terms the what the see cash we the that of with in important answering to exchange how company, I'm So or also perspective. company of trend better the question to represent not that to But I -- there's respect more disclose. to flows. of improve stability to foreign is realize

Akshay Shah

once year. have your everything years, helpful, X again, we A you accomplished in applaud And Carlos. X look, accomplished José has everything very in

the good work. So up keep

Carlos López-Abadía

Thank Akshay. you,

Operator

conference for the turn to webcast. over like Shay I'd any Instructions] to back the over questions [Operator

Shay Chor

Thank Col. you,

Telefónica. news selling X some would its Latin the there renewal And would be Telefónica? expect second So questions with for the in we America, the out you the of -- are about MSA could Telefónica business a the One have that impact while there is discussions be? is on here any what question now on

Carlos López-Abadía

not situation restructuring put they take their me in announcements they where Let is priorities. in some portfolio last has of mean the not That Telefónica changed. I question. how first. were This their and made terms

number on markets Telefónica and Brazil. with of putting be which one, Spain biggest lot our is So priority happen a to them,

way choose in particularly at not or -- of reasons, terms of one from portfolio Telefónica about we Second, whatever the that day the same the perspective do the you of partnering, portfolio depend variety do clients base a the else, we with for have going to that from they wrong business have every that which may you things earn is on that way the The we our way on or start that we we're basis what That's strive business that's to the an day our selling the the have number performed Telefónica do not of the we Telefónica and worried reason buy we or the to rest to but everyone, of may the and perform way. Telefónica. is day. without anybody keeping is with obligation -- with with rest with

continue to win. We

prepared my in I think remarks. I mentioned that

manage of but any happen that not to them area, feedback provider board that traditional them, them contracts to anybody and in continues else. consistently get -- them win to win way that from business, services. the We any in MSA, all be win in with win to business or the that set is in those and because we and business Telefónica continue next-generation across with Telefónica of the new That because that best market, we we be those we the services. And the

renewal that's either business. So you several that to to -- on the worried, be buy, in day on happen and again. obligation you We customer, sell an perspective, call, worried a discussions what the markets not across the to be have day Do not at from But to that MSA? the of have to Telefónica or have to to all. that again, that Brazil may that worried me, that the, I'm have we about think seriously depend eastern on had want we versus you worried I to Spain,

everything do the with our earning we we So customers. base business that on

Shay Chor

Carlos.

our we X on get split -- Next one, U.S. questions. question a in we have business,

in is a second growth win pipeline the how pipeline is strong. we seems regions? the You the looking? is of And the U.S. state new very extracting that is are looking? the Maryland, of the U.S. the on question on EBITDA how What versus Maryland, mentioned is First margin the rest

Carlos López-Abadía

good. Let is me start very last first. looking Pipeline

the we ago, grow As to second pace U.S. I in continue to the expect a fast mentioned

even we So I'm what pushing with ourselves but there. there very We're see out highly to further. ambitious, we pleased continue will

of terms to margins, at give In the actual the the you I'll high. top of margins. answer is is It range compared of our rest the

So it's -- reasons. U.S. a is an attractive of market for variety

focusing -- can innovation, deliver that them of those deliver market on quality, are -- higher more when margin. we significant significant and we're verticals, only can focusing One but demands actually the not can is right we it's and get value, you you a also you

of margins the at the So are top there EBITDA range.

Shay Chor

Okay.

is seeing of do What elaborate in would could of -- cost your of Brazil. Can on side. on on is revenues, in lockdowns this? our be about the resurgence COVID Especially are news expectations impact we on the COVID. one lot potential you Brazil, Brazil that in Next a

Carlos López-Abadía

what the strained tell where of I It's and we right? the José -- you to care I'll the Shay country, you a I to health in what is the comment, least. reports there's -- tough know and The they limits situation. a and situation well, situation what live will and a It's hard lot we say, there. get it's know. I tough of system cases as will say to They tell the usual, let

again, the level, human predict. The the I'm -- to at from told worried. business, very difficult it's I as the you, of So perspective

We position impacts, better know you cetera. the we about never et more as in whole I to situation last XXX not the a are can say the that think has has predict. we last were tell been -- much recently, whole the crisis But been like is consequences, years, in so never. shouldn't Humanity what in a time I a much year. in crisis, this as transmission, than the a humanity this, to hard the I manage

reconfigured have business. our We

of home. working from XX,XXX large very have proportion We a our worldwide, employees, than more

of free from Now doesn't mean that you're risk. working let's recognize home that necessarily

home, But the definitely any we signs You the much, you much, much the that early still protocols situation. have detect to right? the have in controls, problems. risks improves social better significant in hygiene, And protocols centers, risk have disinfections, distance, or or

are stretch by or the imagination. what of of in you economy a it's There but any good Again, all So we're months world, Brazil countries on ahead. as the risk we of were We in than would and of live Brazil, not is much uncertainty one in many happen risky see probably to this perfect for in and the the did a and we The impact in terms cetera. QX particularly other in there. is the call only broader the economy, not to XXXX. position we of the but -- in better sales, could is you projections impact, would But position better et some in on economies. Brazil thing make that different revenue, recovering very a significant I pipeline in have tell well sales.

us -- there business new to the a just the as but be adapting not So normal, seems whole. the to economy

you the last well. this Having with my XXX doing to cautious. humanity with be the to temper years, all that seems to fact has never in right? business have through have that, optimism, So that and said been you So be all

how I'll don't to I let and cautious. Brazil? it see characterize So you very secondhand. optimistic, José but Shay, want

José de Azevedo

situation. it's Brazil, No. tough a Yes.

work don't the guys that inclusive in it, and X in impact, this Paulo, situation the live if start regions minimum, In here Brazil we buying can will advantage affect of the It a quantity that will have can But we are our business. way. all the here, people operating. maintain between our next means masks, we ongoing. in home, the of for X main needs that terms That alcohol, same have from It In with not the a means with after our before still uncertainty lot as We in We to these it's an in real terms I is weeks São be I it's Yes, why case, an be the and started think tell have in we a year because vaccines any expectation considered because we of terms not that big of doing say means same exactly it Hence company that lockdown can regions. organize is to planning still Yes. And ago. vaccine Saturday have because essential service. tests, It the steps yes. to still flag. red -- of will in Atento. we're measures the I we and easy. is one lockdown

continue will that I as of but terms that expectation But think issues. is Our operation, during so end have this we of can, a lot to we again, extra faster don't in unfortunately, year.

Shay Chor

business? continue prepared communication bad? improving you Okay. technology about Next, your of we've you a to the and how cloud talked leverage platforms affecting the how offerings, lot do technology recent Carlos, years, Atento plan as a good elaborate in you technology in Atento see remarks, service, on to Can seen, you and for

Carlos López-Abadía

Technology, or in any side what enemy depending business, are, on your on the where of -- friend. by it's depending you your the road way,

services, For literally at as a I've should it in ago. do absolutely us, and et a bit Atento, point cetera. in any, more at But technology Atento. we of we perhaps don't years lot there's on next-generation we some innovation a very a quite monographic talked see our about which couple if the we Today, technology did We service friend. -- our specific than put few,

lot talk now with introduced been and manage employees to that to but platform way technology, the recruiting a to to working analytics, technology, actually do that very have these supporting make digital we agents to and introducing only on. manage transactions as we're work methods, the web more to to And but a the lot we platform, manage XX,XXX allows to very customers And the agents from process more we process But service, percentage through the delivering provide to traditional do in not whole of services, will what some process includes have and traditional we front better managed innovations in a so. to on We've us from a service, artificial to That many even capabilities lot significant whole additional or that cases, have allows more So the manage we service, a way. We apps. large a us in we've rapidly. our these us all bots, we cases Thanks continue lot a to a about are and on where of number to that our that in tools agents permanent continue thanks support have and technology, impact training, and able actually I have even increasing chain, even when ends completely efficient. a technology, to of do automated chat many automation added effectively of to the of look positive intelligence, -- could AI, the having home. a of very through Atento. hiring, do. a is In the things which whole may for technology, a of value

Shay Chor

on is churn the measure indicator you client you new follow, compare this elaborate Do question. and you how next you that? Can wins? that churn, Okay, the with

Carlos López-Abadía

We value the very absolute those quality wins? a do number measure talking client But we me you've do. about internal sales. not the churn. of in of Well, with do metrics, components. quality, have compare the it of we importantly, We only How heard no

quality at of contracts, wins the also We churn. look and different

discontinued at we're of to we XX Contribution margin, -- for. talked of right? think I for to percentage we margin the not that new that looking are getting contribution about we margin. how contribution I you, significantly and that metrics contracts measure points, they I mentioned Some margins we that example, higher were mentioned higher sales how because the to you I certain use, you

terms where conditions we less looking we easy deploy for at innovation So technology content. of quality such can which other the us, prior look But answer. as at content some important quality to communicate, very is metrics metrics. maybe our and more the but look of for were and places for the we technology those also, We contract,

talked about as also those look it but sales, not metrics I only that in to terms perhaps the in well around sales, use at are So of more churn. quality we and

in different shared the absolute very I for we consistently look terms quality So those of of But us. you revenue the growth and at numbers. the important with of so sectors is also on.

Shay Chor

growth talk the health the something the you -- care outsources are see is your how of -- replicable question on know one U.S. born-digital. profile, you How one here can about America? different you do growing? health Is largest the in Latin seeing Okay, in verticals care mid-single-digit that? I Is that

Carlos López-Abadía

the bounding well global in topic. technology not companies be on the Technology know. a Technology country of and high-growth lot innovations specific, that lot behind very well the very A tend little have a is Sure. worldwide. to and sectors translate as technology tend Again, a you of nature. to them

be tend others, to they country in Now global in X before nature. introduced be may but

it tend tends in be to about, the us, the as is industries regarding talked started what particularly about wins tend XXX% in many board, work the that The the some for U.S. tend to and to started in the sectors we're I to in we figure. in growth I the one different multisector we have have They strategic dollar all of the the new countries. -- a mentioned doing we sectors. be, U.S. high-growth generally and example, value of that for that then Brazil extending in sectors to addition to content, in different the good work can terms And across countries. of there, comments things very more That's U.S. in having different we is and the countries to with reasons, portfolio. lot the Atento innovation we're it different talked with which the also much that all different our technologies and in different I've that of and take do Next. and more partners to pretty all the parts sectors, very technology credentials made other So we the it's apply applicable

lot board. you from if a be that are you far global, So the very probably of synergistic think across much these But very trends pretty won't [indiscernible].

Shay Chor

Okay.

We free on questions follow-up flow. have the cash some

you you a to XX.X%. And question guidance Carlos. the is, so take directly, And can on XX.X% clarify that mentioned I'll you -- the EBITDA, of have

look do EBITDA. or So in $XXX at if about million if that we're I consensus, around I talking million, $XXX

So million I'm not able XX. free to or make flow million that, $XXX just million IFRS reconcile apologies that with and your clear, you're $X my million or $XXX the so cash EBITDA, to on is $XX -- considering that on

$XX we So take leasing the million, or remember, around have take to give out on expenses.

free $XX in million flow. that we is get to the to how million $X cash So

we We don't have on closing know, phone. have If you all cost web. the year here pretty quickly, his the or go average for the in around cost we just so. can is any X%, Carlos not, of over Col, this has if remarks. the question, of Another the much questions been last just on effective debt. debt the And questions to back It

Operator

time, at And I'm seeing further currently, no question. this

Carlos López-Abadía

Okay. Very good.

time closing your we've the to for and you getting. for big all thank that remarks, been very you of for good your no questions attention and So

So you great thank you a very much, wish day. and

Operator

for you Thank concluded. today's now presentation. attending has conference The you. Thank

disconnect now time. this your You at lines may

Atento (ATTOF) 5 Mar 212020 Q4 Earnings call transcript