ATTO - Earnings call transcript Q4 2021

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Operator

Good morning, and welcome to Atento's 2021 Fourth Quarter and Full Year Results Conference Call. Today's call is being recorded. [Operator Instructions] I would now like to turn the conference over to Mr. Hernan van Waveren, Investor Relations Director for Atento. Please go ahead.

Hernan Waveren

welcome, to our operating discuss and XXXX fourth results. operator, call earnings Atento's you, everyone, fiscal to quarter Thank financial and

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

operating of call open questions. and your we will Following their financial results, review Atento's the for

that certain Reporting and presented prepared International Financial note Before in call been proceeding, that please will has this Standards. made comments contain financial information under

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

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

Carlos López-Abadía

and and want discuss XXXX gentlemen. you Thank morning, to of you, for and the I results XXXX. perspectives good with our Hernan, ladies

initial Our our cyber estimates. continued when event XXXX operations significantly improvement one-off beyond results show excluding that results the of recurring our and impacted our

to recurring the from It a by by strong is record fintech, track On from first our we the while vast health latter relationships sales high-growth to cover traditional right of with example improve We extends recurring in EBITDA expanding extension continued XXXX customer we we operational with The result, made Telefónica in coming of we the and quarters the in our We XX% spirit, business revenue need in of the technology, important sales confidence are, belief expanding business footprint our care, completed in beyond as single are and basis, have basis, with geographic preparedness, significant sectors and XX.X% growth totality on our very every while technology fourth a Telefónica. important XXX give markets MSAs we sectors them. showed majority quarter, the clients. sales satisfaction. results. to with the grown a relationship both e-commerce, And in improvement and As increased to a that our MSA. clients the is as to the expanded have to those and Atento. the of operations A with key the us that X.X% a on we investments continue workstations and as perspective. earn Spain improvements the resume contract my In X expect of and with MSA strategic such day. that that have our with cyber's

has grown has while the as U.S. a We to EBITDA XX.X% our and in grow XX%, business, EMEA XX% EBITDA of and reached reaching of EBITDA to margin our both markets. margin, expansion growth hard-currency taking a a margin. EMEA continue share result U.S. The XX.X%

allows us We market, but of exchange our reduce but the are because surely of have us exposure. because one our with customer, new attractiveness slowly U.S., not centers inherent GameStop. results co-branded the foreign to the opened them important X These of for also in it only

of the financial to On bankers costs to we FX, our the with news point working exposure. need I are Expect topic some front. exchange foreign on address out this from that our us of

organization. our across continue We to drive efficiencies

global us our the of and continue operating to implementation of service believe to regional While to organization, close enables shared importance drive we centers which stay our models. we in the clients,

lowering while efficiencies, significant We providing service expect to more consistent better, cost structure this quality to customers. delivering year our our start

technology our also to partnerships expand innovate solutions. portfolio We're as only not continue emphasizing and as next-generation but go-to-market sources, of We partners.

the of accelerate We learned. contribute Particularly to the have of a growth our be U.S. out Making the XXXX, have the prevention, It cyber we the to components: our with started will and year. do detection world restoration cyberattacks. that I a our I modified channel remiss in new to rolling keep in have but our we on joint necessity, our lessons rest organization something future materially area of the given protocols in includes expect recent delivering address to partner not event X commitments. recovery, -- in several This paramount we are cyber is establishing to new ESG in the strategy, having sorry, we experience. second our comment on half recovery. virtue if it partner not service on plans, least, be the of out of importance Last customers the of learned to we risk.

have emissions and continue XX%, to diversity while a record customer a and achieved leader in the We in also X reduced be new NPS employee improving Scope have by inclusions, satisfaction.

a XXXX. Finally, cyberattack see from of some our the of affecting impact us also our but will EBITDA more an your in of results now results, questions. the acceleration outlook take We you see resumption and XXXX we thus and improving revenue you. recurring our QX detail, numbers. in on review we'll then results with transformation thereafter, José Thank trajectory and for our

Jose Azevedo

performance business Carlos, growth gaining strategy begin day, with traction. XXXX everyone. of clear a continues XX. I Thank want Slide our will strong results on overview brief our our the make remains that financial good of to We and you, and that underlying

impacts break million recurring million on the EBITDA. cyberattack $XX exclude added $XX of the XX. in impact EBITDA numbers, in resulted on with leverage. hence the guidance a our I to the approximately I focus recurring year-end Slide Please revenue increasing down margin that recurring a cash the lost flow attack, XX%. will will was to This of fourth $X.X which operating Recurring to a revenue. moment. related XX%. our in So $XX.X of of operating costs quarter how million turn a X% with to Guidance, a $X strong grew line Also nearly was nearly That's million, at improving which billion

Lastly million. of slide, results our this equity on negative $XX to reported led

revenue we this operating impacts $XX important from in consists $XX XXXX. to I Slide $X a million. note the costs positive noncash it's operating cash of on of XX $XXX the a impact the The well as later as at revenue, flow cash However, million attack of million loss results. was presentation. million basis, had that my cyberattack's operating give EBITDA was On stemming impact, million, putting recurring million explain of items, as shows which In recurring the EBITDA flow. slide. a EBITDA our for of recurring breakdown and shown Slide cash $XX $XX.X flow will Its half geographic on annual or our negative bottom XX, on

drove As in in growth as revenue are client. services delivered our past. you more line in sales the wallet due At to the That can Brazil XX% captured than Telefónica upper to growth maintained great we was see X% more Multisector as same signing. contracts to left key this next-generation Brazil with in in we we of discipline a and slide, Telefónica the share the we slowed time, high-value, top revenue of in of

growth. increased to Telefónica EBITDA, Peru. X.X%. consistent revenue not constrained in XX%, with grew while We in operating the Americas rates, due is increased category Multisector points increased emphasize to margin Brazil's Sales basis and XXXX, XX% business That XXX The high In absenteeism this was margin X.X% increased to margin, reflected And up which the our our Argentina to the strategy. margin continue by in drove with slightly more line, in XX.X%. variable X%. mainly of while Americas, costs expanded the top

XX% contributor on year, with XXXX. EMEA level of to our points the the expanding the to reported basis a cyberattack XX XXX increasing healthy our to Slide was results XX.X%, expect and margin impact maintain For makes clear going we performance forward. a for EBITDA

basis points XX%, quarter cash in basis, in and higher to EBITDA X% margin increased its the the XX.X%. with and shows view basis in margins. Brazil's although decreased noted nearly XX focused the revenue well As points cost the impact decrease while cyber our more incurred performance X%. with recurring and a revenue with lost Slide The resulted XX% sales objective with attack, a points, business. the turn, flat costs see, XX% with increased was decrease XX% Brazil sales hand, with In our as the margin being free quarter, EBITDA. the XX.X%. sales Brazil's nearly XXX% you XX, our Telefónica XX% Brazil as in strong On earlier. margin gives quarter deal grew on was in which Brazil other contracted under the XX% coupled in XXX show on reported down Brazilian in to rates Americas sales sales, X% we increasing EMEA we a hit XXX the point recurring on Slide to Brazil cyberattack Brazil's results, XX, on a a Fourth expanding million. and hardest The rose $XX.X year. the in for contraction Multisector X.X% EBITDA expanded the just loss Brazil, which has margin points due with the the X%. basis XXXX a contracted also of cutting X our absenteeism decreased basis to respectively. XXX Multisector margin. revenue revenue basis costs Recurring with I of Telefónica can improved to revenue the fourth had business that X.X%, flow led cyberattack Telefónica revenue Slide in XXX sales occurring. and decreasing

insurance in prior the and capital addition net costs higher year as the million that have one-offs the relief in Slide other perspective. of the XXXX programs flow. cyber The included $XX biggest was prior the the an of year. million accounting tax Slide early million factors impact reflects [$XX and in we to This as premium cash much $XX million bridge XXXX. being as payroll-related were leases and million. bondholders. CapEx debt that when $XX $XX increase as $XX payments; and that Microsoft changes XX. included postponed the million], been in to in in cyberattack, refinancing pandemic In we privilege also had from cash there costs $XX the EBITDA CapEx we free year, of licenses working last we postponed the the in to of pandemic. other well Please incurred costs due taxes financial turn This XX, our expenses million; mainly to The CapEx an the treat

debt Net both X.Xx basis. let's recurring year-over-year. EBITDA, up and was slightly Now leverage at look on a sequentially

the which cash with On basis, of guidance we revolvers, was of it leverage our to range a was X.Xx. X.X We includes position the which $XXX within million, $XX healthy On Xx. basis, reported a million of $XX grown million. in existing have year finished

maturity see our following bond comfortable refinancing As slide, bottom the year. profile this on is last you a the can of of one, the

annual $XXX derivatives. this debt, dollar-denominated recurring related broken financial against our we are our on down Slide to biggest continue to fair Lastly, million million one-off more bridge have in Of a we debt of revenues, and building generate we the for which in million hard-currency refinancing; $XX box times items, the on hedge factor, changes Financial and was items XX, slide. in as costs; debt. $XX consists XXXX value the in were million equity. On XXXX financial $XX of in accounting we equity the natural

and you sheet $XX see million As there of in balance also was P&L can the bridge, conversion.

That summarize, our to $XX of were noncash XXXX that items review million our results. of concludes equity. my So there affected

We take your Operator, call. questions. open are now the happy please to

Operator

over like van would I Mr. the call webcast. Hernan Instructions] the for via Waveren [Operator questions to to received turn

Hernan Waveren

Thank you, operator.

So we webcast. question our from have a

residual some EBITDA the detail to guidance are reconcile First, quarter? in impacts actual EBITDA driving the on can you the expected for And the more provide reduction that recurring also, XXXX. from the

that reports selling press recent to sponsors the are detail considering any your add you can Secondly, company?

Carlos López-Abadía

I always multipart tend I to the forget questions Okay. because part. hate second

recurring Let taken a the big EBITDA, was makes reconcile address the of first numbers of in the It think such difficult. think thing it's simple. EBITDA, me cyber -- it's don't one, X The recur I we've the comparison only impact. because parts, impact the EBITDA, out I very we it very reconcile

$XX those the everything do million to separate of in. come effects order the habit, our we bad, in is the don't it's million, things $XX one-offs. -- $XX As of like so the we consider pandemic mind the all to that good, the as Things the had else, are during those, -- ugly, that in lingering XXXX don't million

difference -- it, sorry, the EBITDA you the think actual is recurring between only about and So just if impact. cyber one

it -- the think I part, you can second was yes? -- The was -- Hernan, QX

Hernan Waveren

Could we EBITDA... between recurring reconcile

Carlos López-Abadía

that. I no, No, got

The part, first so second following. the QX of year, half the fundamentally, in expect we

we're imagine, any or to -- naturally do cautious included may diversify the we XX%, can after expenses cyber may expect cyber. specifically realized a going XX%, we on We happen, and expect our in forward. -- we that factored QX, things underestimated with you there's effects, XXX% line forecasting but some after it's have business, going in doing providers. much would fundamentally that not other of more the became potentially that or guidance. think customers be have on long-lasting is That the forecasting in they some that, that impacts high the QX, don't around particular we dependence but at extraordinary we very QX, that in at on and do is our some are the we're QX, all of We significant As us, how least, we beginning, in forecast some which

So onto improvement we the got immediately.

end a back bad you in impacts the February. we're has pandemic less usual. of is tell terms happened we have the it bulk on impact still So Obviously, of January, But of think also, can a of thing. of don't we is factored Omicron. a in this impact much March, serious impact been low But the in cases, a from a on be. to those than QX again, good I consider the the it perspective, side, to few we in QX those guidance. lot decreasing relatively as rapidly impact I that was always during much had By what business But have normal. than QX used And all other in of and financial QX.

expect part. expect year. we the don't part a on be I the we So major question, think forgot QX. that a was third to of I impacts there Hernan. blip third the the of in just And I mean rest

Hernan Waveren

the could current Carlos, that So expand a you out? on article little Bloomberg bit came

Carlos López-Abadía

question I rumors. M&A. Guys, is remember the We're -- company. the don't the but I comment third the references, part of I of know to the was which one question a that policy think not part market about public acquisition, first the on our

to at the Of not Whether our something, not But the have policy do course, comment to something it's company. opportunities obligation to market, or of that. we're or our not going When on to look we're different to to we comment on anything. maximize the release we our doing value comment will it's that. doing

Hernan Waveren

you. Thank

has of you question another color have our the please why we bigger webcast. Carlos, and more give Can expected? impact the So about impact from us initially been cyberattack the than much

Carlos López-Abadía

Very well.

positive, a investment; I learn always that of loss. remarks, as number it's I an it's you if it's in lessons So -- we on and safety, number One, of took took wanted well-being and that that with customers things security to -- think I be position learned. the the clients XXX% first. our position I our and there -- absolute you something, don't believe learn absolute if a are if There's transparent an my we put thing, one not, mentioned learned. we the the

the common there. articles is I were from necessarily very we same you but general, And transparent I don't same not day industry, press in this practice as X, read the do. out that mean the So and that

follow have to and that. that followed We we'll continue

small. very, within in that think affected were number out, previous I it turned As servers very were we I calls, of the small, confident mentioned And very hours. of as

as I different of of levels One I the that learned we with learned sound of protocols deal you different a the worked situations. technology or anticipated, may things technically, have the things is happen there needs structured that is and And one things lot beings. could be to work to is learned that although these when human companies with things have

running customers So persuade back satisfactory a that wanted days, a we some working the companies, were they of were couple the themselves and to in although from majority we're vast up technology perspective. risk companies, with -- some of things

was Now which we and volumes not. could others some protocols, well-thought-through some and process, place, with companies updating else. a and conversations at here. into, apologize, an resulted return did but customers. a everybody as up in as the of cases, may because our different it's we And And -- through that some service to we in the come service, important part we we return importantly, on updated have had our place very I particularly have point different learning. most volumes, very that that, very completely cyber of -- exploratory most basis to anticipated not kind got turn into the the we Fundamentally, on you that echo and got policy the important of our early are Hopefully, for

that have our to We are have important we security -- were service protocols to very when customers -- risk. there one we us is working the that rapidly was get very as no part back certain with on allow included we to

Hernan Waveren

you, Thank Carlos.

open Vincent? from Barrington Vincent So Research. microphone for now we'll Colicchio the

Vincent Colicchio

portion are the lost that what you anticipating revenue was in of -- will The QX return?

Carlos López-Abadía

in question, pretty now think question my I returned. we my the answer has to mentioned, what certainty I it's as know know, good We previous -- previous

returned where us. having volume and high of to back some terms reduction the some the returning, full on We those very have anticipation in has year majority volume dependence built the cases in customers we of QX But a into the that QX, it normal. vast see

Vincent Colicchio

have into of expectations? should returned you if in QX, correctly, be -- Brazil, our I'm returned? the Has understanding will most for volume So modeled

Carlos López-Abadía

vast but some we based returned, rather have allowance Again, prudent us, said, and has not I -- customers dependency the in majority -- be on in -- also completely, potential has. on There's down-the-road this. impact. try cases for a high some the rather we've where we'd made we recent experience, as It

Vincent Colicchio

the you strategies -- inflation, around for us contracts give the I update your on an in well. And Americas in wage lot a of But can be an assume adjusted can wage as Brazil, give world us have your update just addressing I in inflation? overall. know

Carlos López-Abadía

America. an Sure. The have U.S., good in Latin we high for inflation is thing higher wage Europe, not particularly inflation. a us, unusual

so as on you through ability complicated, market far, in more the pass America, happens know, good a do that increase prices. our have, we that to a to the contracts the inflation Latin although pass through year. We ability is bit have the through

one we high worst seasonality, and the that's being very typically, better So of than others. have being reasons QX significantly our QX quarter the

you the can clear see very through -- the So trend year. a

part the have reason you of -- the we're we for is that we're impact of the that year inflation. first So of the about cautious half giving guidance we higher

where pass it first mostly will the the impacted are we through year, by through Although few inflation. we months

traditional course, and U.S. have the we places on of as it Argentina, high such We is in markets, don't than Europe. the Brazil, big that. impact inflation other the typically where anticipate So a don't

Vincent Colicchio

and growth is that market, U.S. And it the of combination existing existing is from clients? the new Or a strong clients? in largely

Carlos López-Abadía

with to happy that have been us. happy to a years. I'm I'm just that a very know, acquiring as It's it's you have customers started tell developing you you couple in are fast we of growing combination. we last the that, market tell

good a customers. us. of very aggressive also, that industries new right of continue we and terms with But in to customers component be of tailwind acquiring in we their the customers volumes the So have increase the right

and to We from to both that expect new active we existing have continue very have. customers a customers the grow we and pipeline,

Hernan Waveren

a expand your have your So our cost financial of capital? webcast. from question Could on specifically current cost, you we

Carlos López-Abadía

Yes.

putting in to of some with a reasons of December a financing on beginning me of our have these one-off sense XXXX and as which today. a couple make in place, year the of XXXX XXXX. associated I'll We, Let had give in in cost, or changed late the the José has ton a we quite lot The in comments, also costs bond. late a and to than of last you pass place to that particularly put we bit better of instruments things it answer. world we But made from of the much terms were

rate, of less So made at exchange what foreign including changed. and of sense are all And it's that. position, have some the cetera, much et that things, to working the time, sense we right interest now, restructure

answer -- probably has José you. better much but So a for

Jose Azevedo

was course. $XX always that you, in insurance increased of affects plus $XX we in new bond $X in the million. year in we it. million, and coming $XX a What cost, premium hedge fact, Extra effect the terms the it's financial the information costs changed of costs, Carlos. about have cost positive you around one, the our and around terms that bondholders, Then some we the of costs, give positive a million during the we new basically million. our quick per for market, MTM, not us previous -- to bond, August. Thank use rate can around that's our was, interest very interest first, is the the revolver paid It the from million existing in cash that worth, one-off of I pay February the the in the million have the financial first bonds, market $XX that cash, year. have, from we means a in that gave the Yes, effect. but year, And and $XX No,

Hernan Waveren

Thank you.

to a When We of our finalize in your what bringing conclusion? you the question from successful And to webcast. expect do level have is MSA? confidence it Telefónica another

Carlos López-Abadía

to MSA I the less complete -- did we just repeat a remarks, as are my perhaps prepared on think familiar.

are But than as in remarks, MSA that piece the the the itself we we for of and us, my the before mentioned the concluded and Spain whole have more the I I with had extended the to we day, footprint that -- extended agreement, important And have the With important business we great. piece, so team of year, MSAs now footprint. Brazil end extend rest the do day. can that of our end have at that the most my every contract with the in the that, beyond Telefónica But customer tell I tell way of proof we every earn everyone as the MSA. we you have

contracts the and important Brazil So of most XXXX. the in extend Spain, in now to they end

not that and that's, is by because that very MSA, it's we proud business I and on that's the -- place So but the earn the us. again, required of something feel confidence that customers our

Operator

have do from we O'Hagan] phone [EIP]. is next And [Ryan question a question, our with

Unidentified Analyst

a that on I big color time know some how us cyberattack 'XX the if on than the with there's you a any bit I'm rather quite given presume of kind some expected And that I I you and of the goodwill Or down you time made revenue kind It'd give off relationships you earnings with has could cover ex some been of already. kind be associated guys impacted? guys impact that. about happened? finally, been qualify guidance cyberattack? you Can have year, for customer of based any you of for and of actual know helpful the the on you spent kind the had insurance have XQ the you've of on of one this the was could wondering FY follow-ups. that contracts. the what's thing mentioned, through maybe And that's couple number number of that expand if guys, to think, drift of pretty more call dependence just comments was the of on I year? kind expect the the for you cyberattack. just I on costs that on

Carlos López-Abadía

to is to remind somebody different Again, have going the me parts. Okay.

what Let me guidance in to give -- on without XXXX will the with if have better increases, do the ex ex than -- be we we on the we recurring, forecasting you, XXXX the would of last cyberattack, are first. done in it's The the No, terms higher number meaning the much in start numbers based you have actual. cyberattack. is based

is is better. the And will have ambition overall pandemic, that back continue to my is deliver. get demonstrate this multiyear on it a the we a and cyberattack has we a objective, my do So to to whether company always road, bump or trend that demonstrated we whenever to

So the part. third that was

asked You something think I cyber... the about part was -- the first

Unidentified Analyst

yes, was the of impacted. and was relationships The kind that first goodwill, one the just on

Carlos López-Abadía

or for cyberattack a us a our is situation customers. this never situation great like Look, Yes. a or

So start continue to is in of said these will completely relationship everyone demonstrating things. long-term let and think and already that, me that believe with customers that. positive. I with I Having transparent handled, way with our have the we it's terms it a demonstrate Not is

talking find I you'll I'm that general. in industry, not think -- and our I'm about talking

and tack be can them, customers, them with we in a the the a will that may hours. read time, we help just a constantly to of to long-term in, get on our took We it's is that is is the I'm few different completely you the do paper. We tack. transparent papers. of I difficulty, can brand And read not attack, depending disclosure protect that can here there We on we Most our on whatever, the Just customers, our importance. the are paramount be the people circumstances. trust or well, on with well-being our took say, partner technical may and back that of them having the relationship a

is me from we've our a said that, now, customers. Having the where terms not Now in term. in relationship, been let going stand event but of that XX long seen for term, that it short it's to may many the the And I be did already it a the not brand, positive talking customers. the us or a But -- about clear, for I'm not we for, believe years has with positive as have in be term. cost this long

be important the clear me a in But impact continue to and be expected it long-term very of positive. Let relationship, on to -- terms crystal the that. be with already will seeing I'm

Unidentified Analyst

the around you this the Got it. contributor cover question a Is expect suppose something had just insurance lost I year? earnings. be to meaningful was last for guys that the I

Carlos López-Abadía

to -- and to business. in of sure. -- QX. collect it, look et you It look at to losses And we with expect growth. a a at that, I the actually part run it it to complicated at was wanted invoices, We take And wasn't, the results a take the we thought possible a for initially, everybody get have cetera. -- wanted and the volumes, all look is we done books' reason take assessors to

works. on -- the to that don't anticipate a front. So I that's expect I in problem

So happen the in it will of course the year.

Unidentified Analyst

How sorry, of could you're of the cash confirm earnings? sheet about talking of what there? that's equate or balance to kind you going to much kind quantum I'm loss

Carlos López-Abadía

We insurance have expect collect. to I million would that $XX of

Unidentified Analyst

That's in minority it. I Got but of of last Helpful. it SEC, obviously, and kind And a helpful. the to submission you've couple addressed the already, made investors know question. one super rumor there was to at appointed have Bloomberg sales bankers. true programs? process not bankers that Could further you be have the a appointed that any fact for purpose, efficiency about or run comment the been look it's on whether or a

Carlos López-Abadía

earlier. answer to tried question that I

to matter not we public as a answer I And as which do we And comment a part on what -- opportunity, company, any as Let a on again. of said a opportunity comment of the now realistic the as before, same as of at me as of that regarding as time to is that we rumors, policy. business do do And it don't earlier, we value. run. particular at increase It's doing any responsible we're don't company, look that. we or matter shareholder we course, any

that times. we'll doing at these something We're So when not have do we that. to disclose,

Operator

next be Beltran question the And with Palazuelo DLTV. will from

Beltran Palazuelo

I Beltran. a questions. is of This have couple

EBITDA Is the of was in capital say, flow very at our First the when give regarding cost you $X.X more. first maybe that but XX% then the important don't of couple flow, weak seems regarding more guidance? of XX% detail? what you ambition XXXX. XX%, high? for if very, eliminations seeing, there is if example, net and what draining course, to color, more you the say, let's cash margins, then not XXXX? XXXX, about EMEA. good you give, still very billion of the But cautious, in, in regarding was let's us it's the this a numbers it could it say, It's then say, questions, seems Americas you very could say, in cash see the hedge, let's give us, is see get, the is is was in not And a Then us the XXXX guidance, inflation changed working ambition. -- what it margins but company? let's it's EBITDA. last could you end the more the could know of the the on things XXXX, net course, you do And in Because regarding of all, you at same Secondly, I that to had day, XX% of free color, the thinking cash of wage the and you debt of Before, more let's -- say, reported X to if they're currency were on debt, capital if problem ambitious figures half. with in margin And in of the let's it XXXX, why, cyberattack, free to give our the Americas results working the because we EMEA as it they

-- X us in give give me things. could more those you detail If

Carlos López-Abadía

again. your to voice Okay. Beltran, hear first of all, it's great

you there. of go right happy all address Can through I to you to a questions I to You with there's I'm have a me don't financial a now, session by Can remember up do that. your something them. make one ton one? we right set If questions want suggestion? even

Beltran Palazuelo

XX% the XXXX. for to free you you generation guidance maybe points. And be basis to answer, cyberattack, ambition to cash hear there's but seems thank inflation around margins, suddenly, XXX XX% good. Carlos, the like for What then take good your Of was what XXXX? maybe And just but it's going is it generation is of costs achieved. course, very and flow cash the free flow regarding in is X

will the also higher for margins. -- So target it's to at that, else you even or get some that or and financial good you that point, reflect

Carlos López-Abadía

Yes.

lot will detail. happy and are I I those more be tackle through your and very José in be a more go since me a questions, José's in Let to, happy think, set let's session. of proper department. X, that than up the José We'll particularly to

So on those X, particularly targets. let me start with the margin

continue work the you -- years X on discussed to with We plan guys that we be continue to to ago. committed we

a a lifetime. We'll to come the problem trend. complicated other we is dip because XXXX but committed pandemic. back have We had you As continue the are problems of a This in cyber. with through our we long-term and the market, had know,

behind impact to in of I expect very I months line. that, So that clear. you demonstrated strong exit months. get beyond. to beyond you My us XXXX. the than remember with cyber would year next a me the get are be and a trend with we that half of the that a few few of show -- we XXXX of X number But years strong QX yes, problem back and the rate, -- we the time continue I exit to let targets more my that with impact, ambition in probably to discussed XXXX in to Expectation got has put after. think expect don't ago, is to very first that, a

Hernan Waveren

please? percentage the might Your by We have which going EBITDA in Could you expand reasonable increase of decline was to forward? what hard-currency expectation Brazil XX%, a EBITDA in for there, is our Carlos, been cyberattack. have XXXX EBITDA question the the in hard-currency from the helped webcast. owning

Carlos López-Abadía

Sure.

and not fluctuations. the of per that is part you of our only of this hard -- policy. which number challenges a It's find the se to currency. have, U.S. to European attractive -- mentioned inherently, that continue FX as times market, We one they're strategy it We grow I exposure we guys, the helps very the one, and of our I percentage and markets, but it company also

hard-currency continue I continue -- XXXX? of What will we to we So expect we percentage. the expect as a something do order our XX%. target in for to increase

So EBITDA. to the the percentage, and currency fraction high growing we our expect cash continue in of

Hernan Waveren

Carlos. you, Thank

So still webcast. clients mostly to be with ongoing adjust guided of question Are contracts' front? How this we our margins they more from inflation? negotiation for results pressure the one from there have completed? prices coming XXXX are Could on to

Carlos López-Abadía

is front tractable. That fairly

it majority, is not This What of So is the in contracts So our process. totality, other right? have the higher beginning the in inflation that higher, the things, wage The do, unfortunately, this in the adjustment the the happen half. tends our across it that inflation is happens many but year environment and/or first are contract the to from year to that of think driven contracts year. cost adjustment we we -- it's perspective countries. we pass-through. the the impact have of that work, and immediately. I in that's is the by works by way fundamentally very the is happens on years, We unions, of And prices high be the signed because the going the achieved every government part existing happens few inflation through last the what of and then now, rates

end, XX% in we high we -- think example, to be to expect for plus, Brazil. I at the continue and

this year, the every in higher do factored guidance we something factored and that it's given in the of it's inflation it's you. year, So we've

Hernan Waveren

and you, our Thank Operator, call. thank time. you for can your this José, And concludes Carlos, the call. please, you, finalize

Operator

attending thank conference sir. now for We thank presentation. concluded. you today's And has The you, all

phones You care. time. this may at now Take your disconnect

Atento (ATTOF) 31 Mar 222021 Q4 Earnings call transcript