ATTO - Earnings call transcript Q1 2022

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Operator

Good morning and welcome to Atento’s First Quarter 2022 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 van Waveren

welcome to our operating discuss and XXXX first 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 Jose Officer call Officer. and us López-Abadía, are

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

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

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

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

Carlos López-Abadía

Thank morning, and you, ladies Hernan gentlemen. and good

this Brazil. apologies am the it’s me around let And around, not First of that I am COVID. in And to had I lack from or voice a And time voice. opportunity simply my for all, I apologize time visit a on I my of to cold. advance. recovering COVID report am happy this to My cold last it’s get from. recovering that bad my

seen advance have you the be had slow start call our to we QX, getting with in have first – that significant down for let that me to improvement to month-to-month although the confirming to as provided guidance us which this start leaving we confident you. me allows an more to quarter, Let on we year a last business,

and into slow. different we results, of in February, in that start last discussed that: decreasing break normal regime me call, main affected inflation us Omicron, cyber, components. countries, in one, is particularly know, high see more Latin impacts inflation X us, Three for our in let Now, impacted we that but April, to March back particularly that many higher prone in January usual. and as levels has we the reasons QX now and to you which Tier and than America it expected to lingering

than are less the the taken. which to And which inflation effects which pass-through of are have that the normally, terms already year, cyber Now, of pass-through offset or have is be But the point number we also, pass-through we in much a for achieved comfortable at XX% XX% inflation XX% of our plus reaching in customers, that allows a terms our some year. obviously, this very inflation very the we very been effective these important year. of two have this offset to us factors. to insurance actions by impacts; ones helps One, recognition, of cyber insurance, the

good see, improvement which year, seen we that and position through QX in comfort, haven the improvement again had the we to are gives quarter the with the in a continue us action guidance achieved than puts and month-to-month in we margin to year Now, taken we giving. have the higher clear last that improvements achieve in us March that the we a

about the different talk me let components. Now,

improve estimate year-on-year and on of month, volume the Pipeline the continues track year. are that allows vis-à-vis revenue. improve sales the and quality sales that all, through to to which volume to to quarter and of First month us last we

three entertainment, our grow XX% key those which right come with three sectors: have travel more and obviously, of once sectors, XX% mostly achieved of XX new us the that margin. XX% of that in our value clients have let annual growth, of revenue, in annual total for more million some this EBITDA right e-commerce, and we high-growth this These a that’s you XX with fin-tech estimate revenue sectors. them. sector Out sectors quality and key helps the sales. in clients, key – proven customers total we of already base be in in are and at the is to our and of when these that than value customers includes for than are $XX have are – We the that sector Those

customers very sector acquiring right in is So us. the important to

the with the that as as we happy are of are we sales in-taking. well quality with So, volume the

in for the of are total of revenue. revenues last aspect currency. revenues Hard is basis of XX% points quality we hard us important versus and Another terms XXX up the are year currency reaching

our currency and mentioned revenue I most percentage EBITDA. As to as expectation hard the the to our you year get of our XX% for is importantly, EBITDA, a to before,

So, our we in track achieve the are feel a good year. for we to objectives

moving currency and expansion travel the and a currency, the which also very of but travel quarter, been It we have growth our seen U.S., both a importantly significant we this bit sales as the peak ones. significant expect new season. the through all is. are in customers appear the the also sectors also sector, the worldwide. two I leading Particularly energy X Europe, into to years continued now, very us, It’s In EMEA, we see in to and bit in markets a pent-up operations. QX, travel into would generating to of us, of as hard depressed we there a a existing a new year. as is with you challenges volume. The quarter continue the important is and big improvement COVID. significant sector, of in as sectors hard the energy of about a Very Speaking challenges well for important in that over operational has talking on right opportunities or in acquisition important and sector, quite lot for sector want significant activity for demand energy lot see is into touch accounts revenue, year, It’s pipeline new our basic that that time. improvement of travel last of in as efficiencies generation important

you on delivery As and work transformation ago and a continue launched that. get couple we know, to of minutes a improvements we

We and have deployed full are capacity, centers blown. working to now geographies all excellent the full they at our

year we continue way to customers. improvement on to programs to specific services to we Just align to year, improve what continuous call to the the that nomenclature a to allow provide to centers the centers us basis, fundamentally month month, the on are excellence specific continued

where which things management, center, not assurance We also the reporting, continue customer like capabilities that improve of are there. we quality we or our the shared capabilities to the centralized to improve continue capabilities workforce particular the to or particular specific service is a program

terms sometimes a also When We the we all and that word global are to hear reaching important think the critically approaches that is cost. methodologies, us components deployment number models, for efficiencies, these four of are that that improves the people the which of first thing I people technologies in targets delivery objectives. are achieve mentioned had of critically important,

The talk us improvement course, it’s cost also very the we the I to customers, position. not us, quality, to reduce continue with this, it’s year-on-year. deliver can of time. cost, less it cost to industry, services, But to allows and most cost with provide improve to our more our over when but us important decrease about better so to opportunity going position, allows a like start services, our industries, our pressures not For structure, improve one-off to that of are we better new on

to on last the Also, are capability I that for of critically last, improving very years. that to that like allows global customers delivery mentioned So have build and delivery add would been customers. keep the over that models perhaps that we important I important, couple the us need those a to we targeting methodologies component to

that getting in different So service, servicing customers, global geographies. we same significant to them traction same quality are with approaches of customers expect

that Also, have that, of have opportunity problem to difficult do more, of More to pockets methodology set methodology allows those improvement deliver to to of different continuous provide us that to these in have addition you you when In methodologies studies. those the that customers. to delivery. you ones is – capabilities approaches

terms customers both important efficiencies, and cost as in impact for well the and as of the us very ongoing demand. what So recurring to deliver markets capabilities

regimes challenge seen Brazilian front, the across essentially due increased financial have and particularly for markets, is the rate important interest the us, all market. but costs On impactful to increased we

We the interest potential are our financing rate mitigate bankers our structure working impact of high continued improve to with regimes. to

the foreseeable this to expecting or We the are change in future. in short-term necessarily not

I we potential I that, the like mitigate that over to structure to you confident last see And grow have interest gaining have and Jose. previously. and provided of for over financing the feel our guidance the adjust businesses started. of much. thank to to We more traction about our do way year trying we would that finish are the rates actions – to the we months. we few and you So that With With comments trends that, very you, my seen impact the to these

Jose Azevedo

and Carlos everyone. day good you, Thank

that sales, quarter we we always terms the this and quarter by confident guidance profitability January As month to achieve in very weakest February. to noted for face is It our earnings exited March cash mostly in at release, flow. rates the are slow, and we seasonally and the of Say year. coming in first is our healthy far

the very the flow, pay, and In of of $XX over In largest. inflation our total, by the of markets, insurance Brazil, cyber These the the the contracts high the annual of of first temporary of lost costs. had our attack. in accrued impact that’s This the difficult also this year. and our in important out quarter revenue adjustments high residual point as particularly costs quarter new absent including cash of workers is each inflation kick volumes, October due of during attack upgrades especially in EBITDA rates and The impacted hiring remainder hard. of in current this the payments offset our defenses. terms levels a Brazil, was time quarter covered that to combination to million impact included It impact was was high cyber sick stronger in lower

we our that of communicate to managed key to most happy adjust biggest successfully have client are contracts. We

mainly noted cuts some was out other earnings Thankfully, of that of away due other contracts decline to globally. their we a been The vendors. renew recently to X.X% in other quarter. the that cost-cutting was the uses. expected. decrease Brazil to Although volume number client less Brazil shipped multi-sector our in where clients in and program previous in to the reflected to choose, is Americas exception should providers tend volumes and to words, implemented it also point made our volumes of This I reflects us revenue consolidated call low that also some the Brazil’s we that The diversified additional the in in due have than revenues as up profitability. In in decline assigned picked from we in EMEA, Telefónica Telefónica the competitors. CX this not

severance EMEA one-time at we this revenue to Although in rationalizing was market. capacity to in call due made the relation flat, decreased center EBITDA payments

continue our calibrating markets all throughout year. expect to capacity the We in

in on Americas Last the seeing U.S., trajectory previous a to expect the and contract but sales compared we year. we to in revenue our pipeline. based have we region big this are resume the currently in volumes the was growth the Lastly, won market soft year,

earlier, slide the next includes brands deliver Three change to funds the in items flow at cyber insurance contracts, the delay cash that free the may bridge. banks hence This noted to signing each is end year. of a drove EBITDA that working of in Telefónica new On the I an capital. mainly advance

was it year. that of to postponed last million $X.X CapEx, Regarding reflects spend

our payments $XX For budgeting million we in to primarily interest The interest be revolvers. million between and between revenue. consisted hedges – X.X% are this in expenses, $X.X mainly and bond to year, million X% related credit $XX of of those in net and CapEx expenses financial

in position of end quarter Keep the with on along basis. Moving a our leverage XX-month ratio to expect and mind a we populated our improve healthy strategy, progresses. at leverage cash that as capital and trailing maintained the it is the to year

versus $X the first million. positive interest least, cyber of hedge is Last at X.Xx quarter. X month quarter X.Xx approximately of note have quarter but be coverage end the of important will carried our the impact the we not in the ratio year’s XXXX. in So cash also impact our until the successful with last It’s to euro-denominated a first fourth ratio that attack

We reduce interest to continue the costs. monitor in our for financial to markets opportunities currency rate further

The reached of the at million equity, of this are and slide, financial to broken the in next related negative slide. the to P&L end balance conversions. is which $XXX.X down at a the items, of of the non-cash the quarter. attributable items million center which remained net we’ve On into $XX.X items is the box sheet bulk These

range, the linked have you over year. As can top is to the of to our last swap at CDI slot country revenues cross currency USD-BRL mark the our see the impacted That slide, cross substantially market.

open quarter, as therefore, for the remain slide, strategy achieve expect win. call to XXXX exit strong traction. but as growth left guidance to continues fundamentals challenging our and Moving a in Operator, underlying questions. was please We, QX another targets strong the well our mainly our

Operator

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

Hernan van Waveren

operator. you, Thank

question webcast. our have We from a

Carlos XX% inflation to you the now? What mentioned think is able pass XX% that number were to Jose, I you So and historically. through

Carlos López-Abadía

in As or over remarks, is reach mentioned is renewal point, as annual inflation good annual very The to the I time the my of year. tends process given triggers. contracts the we this work XX%, way the which their are

renewed those inflation get what back, combination The some it’s in So say or in we the of contracts and little and normally, a pass-through the a to sooner good, on contracts can December. of very be bit the That’s January. a happen triggered of negotiation. smoothen

of level imagine, very been proactive given higher So year, you the inflation. as can we’ve this

XX% point at of are year. at we So this the

XX% but reaching target can year of is reach, normally not we exceed end only to the So the the that. that expect we by we

Hernan van Waveren

Thank you, Carlos.

please on the next business give forward? attack a you have an the We us question of update cyber on our impact Could from moving webcast. your

Carlos López-Abadía

because residual – this Hopefully, the we have as in the time is still unless be would previous I less question less question. QX. in mentioned call and I some over our today, unless Good answer the mentioned mentioned, we impacts

We less expect so on. in QX QX, and much

In the QX, impact. revenue in and the mentioned anticipation and measures as we had fact, lot the accelerated side, in of call, we the The those to to previous cost a cost in moved had cyber that be the the specific, those QX. more of on both bulk of I plant, we were side QX we

year is perspective. rest done, increased of The bulk was costs. of that So that that the the from

by have decided We may expected, and us. going put customers in guidance We for to And And customers decreased included of us, terms forecast In of of that at the high year. before, That In may the provided some on a with or that customers we had we with looked in ways customer large, you. lot to one volumes, mutual we us. we we as volumes. their in want all to exception I happen, our the All obviously, plus, where part mentioned is that have forecast. had prudent and to agreement. XX% the have a that the we the basis with have included volumes. forecast exposure cases, volume assumed they not that in the potentially are to forecast, be decline the but those to the remained

thing. As gets And happening time the decreases of the good forecast, receipts slowly leads diluted a this either past. the the as new which to those or natural passes of we then year more than business, volume sales the which and all seen is we’ve background into not fundamentally some progresses, had again, this in growth the of happening into

about ever. QX not and hopefully to So talking too in QX, expect be cyber much short, we

Hernan van Waveren

you, Thank Carlos.

develop more the our sales an from the of for strategy webcast. year? remainder Could Atento you have We question one

Carlos López-Abadía

in you QX important very important doing revenue we sales. the it’s as a transformation services, or always Well, Particularly Obviously, you’re etcetera, from to important it ago, in – events, for like move – customers us, is where forth so felt particularly mentioned teams and I for second when adding and undesirable course. the this, a sales, so tough when important have us the to that very changes replenish have services, and in what’s on [indiscernible]. includes transformation, years customers, of events important

regarding very A is So I sales, that I since Obviously, particular. strategy get I have highlight. I complex topic couple sales strategy a made happy some and and personally I broad of in would remarks involved things we’re enjoy. something very

We’ve in partner We’re cares inside very me. we from which happy But channels. discuss do introduced have many that we introduced new also it to a that have with channel, anyone sales and channel, before. we to introduced things,

than with traction We’re good a earlier started channel sales, partner getting very We traction. very both. inside on good

the million likely in such think, right now in I have late-stage a the the pipeline. $XX channel, We million, pharma around in $XX pipeline

with So good them what started we the out etcetera. fractional those to all U.S. doesn’t work, dose. and the works, as of rolling in the We regions extending what world see

do with we’re try of any the channels. how for everything good our very So is – our seems as at we Other Not and to going work the other try market. like well. continue these the example, them world getting is now you as recognize see quickly I that Brazil, believe traction you the important two rest important something to us a aspects most what and strategy These largest we work important sales try highlight, right to of very doesn’t is of very out market most we’re it’s things, to and that aspect else. for and and business, going that they work. that very in

taking to – sales Brazil. to to and new We are approaching approach a reenergize we’re market the

we incentive before. from sales do that the used on what are We to have program changes introduced different

to of business the we existing we in both of into new sales, areas and think a significant customers our accounts where have focusing opportunity new customers. grow We’re new

looking in any We – the very for market. are market, to we interest the We Brazilian also competitive And through have provider we quite continue at large a It’s margin. the the the largest end are to Brazilian at market. don’t top a frankly, overall the interested we by market to are be although go bottom.

We’re taking – provider. looking or to terms in the of to segments. upper part sorry, and we’re We specific for getting price different the seeing to approach and quality that want certainly bottom service. and the a rise be at premier race But of we’re continue a of the market, the to different

And for a particular things we targeted a commercial Sao our we wanted One in introducing as from sure Paulo on name [indiscernible] any what are some doing customers. is don’t we’re strategy But very offer a discuss city-based Relations we strategy. or the make marketing tier, and to Again, large you or for of top – yet. is market is sell bit of Day, a our segments. with of have detail have of sales different happy in we that to we monographic sales needs us have those Investor to the the more develop part

Operator

a question. Ryan Thank with EPIC. O’Hagan you. That have And do from comes we phone

Ryan O’Hagan

taking had time had very see It’s and QX. questions. guys, quick you to through thanks the I able taking in Hi, you for on to great and difficulties guidance. the the being confirm just given presentation congrats three

the first cyber The relation in is attack. to

of And I $XX million give and us to you to number. the refund a should that got that mentioned in about color just quantum overview on get net of could on attack? you the how revenue. insurance more an I impact You the relation costs think wanted

Carlos López-Abadía

is see, you million. Insurance, Okay. €XX

on impact the cyber wanted impact whatever the you cyber in exchange rate the QX? is, core the So

Ryan O’Hagan

was Yes, and impact IT kind And cost don’t was I was? whether element, purely the of like infrastructure? there the overview CapEx cost impact that some what operational an know, or of revenue was impact just what

Carlos López-Abadía

at particular want that is level We to more I high more this. didn’t closing – interest detail. in but in you is. tell was. might what We this that a at today, There little look the can There bring

investment element have year for QX – on cost cost fundamentally, in of to ‘XX, we in our And the accelerated full the That a a and some that. took that that element QX. impact. matched bit fiscal cost program element, took We cyber and lot we we the

did planned honest, but the above QX. of we Some budget to had and that we what be still in for QX, beyond some additional we have for

costs to So of those we are year. going do of things were through acceleration incremental the

But some few their apply it’s large to a makes service. honest, – to product I for the might simple. are be for we only and When handful, fairness, On cyber of normalcy would you to particular sense redundancy have provide across it’s have clearly, example, forth doesn’t call where – to and the one for for plus very provider perspective, to the represent to we do a right? brands, than more business of customers, that revenue, XX% think number event sense of make a is provider. not a whole that I brought line When lots continuity, a try in customers, where as think explain happens I a the distributed them center capacity, all the we right? I from I of mean it some anyway volumes it cases, it service, There customer. In them, my

that most cost I’m of in happening the and happened. QX, of incremental Most QX. the the volumes in of be same happened some way most QX, decrease telling that happened to you of during in So,

that, guidance. in happening and that or in of that’s a cases, for it’s that very in is happening not have higher service, for the assumed the have in company of us We a a on high we a or percentage anyone specific all not the and either dependency the assumed assumption is had line would that not that’s year. service total – line in good, conservative decrease which forecast That

expectation impact. or may forecast that I the and more asset. already guidance which be later, happen some is not of during again, may year, But is nature of happen the there the it the will an but that in my think that may So be the in

cost, items the security upgraded In by of a disclosure and service have number services of of of way, services, line events [indiscernible]. software, security terms we if look the specific of providers. of the second can item it hardware event. is making line a by to one-time at is interest our We that the also Most a of specific those

down. having will that, but we we will So happy it think be about break to

Ryan O’Hagan

a question that. color strategic And strategic Got more a of assessing My I That’s the kind and guys quite options helpful go-forward the next impacted the side. any kind And that is options know there business, of appreciate impact market very it. are I shape sales for kind of rumors or the know the few you clearly, etcetera. cyber be are attack in I might in that. of has meaningful process been a and QX. strategic by QX

the now of kind something disruption? Just conclusion is about that that a lockup actively that the wondering, big period as investors, the for of are kind you to lockup given of this give result of expanding of near-term three right time discussing extra guys kind you

Carlos López-Abadía

Okay.

one the I but in was question other going one. thought maybe So, direction, the just

my from activity, M&A stays, time have will comment don’t until say. M&A of question the something to stay. answer last We always we On on activity and it

public traded And enhance always look a could the are opportunities obviously, We company. we day. every that at we value. And

comment not will I on any that, rumors. specific Beyond

shareholders, them. honest you you as mean weeks, the shareholder last the the am look, my I of question major and asked I be have confidence confidence to cap, can approached. value have in expressed number you this the constant discussions On you above few a over with the with me company imagine. approached confidence have with And long-term of value tell the that a can question number the investment. through and I in the of in of long-term – I the

some also we right you make and the some something have as to making of I with can for So, specific approached may discussion am now expressing, that that. unambiguously. commitment public. to I are could in I them tuned, about you Stay the possibility concern and of have the you talk about that of we tell them

Ryan O’Hagan

color appreciate your my on side. super on side, the the tied That’s it. to just last And I question appreciate and helpful I Got the know. hands M&A

and You What QX, your of is mentioned as in at Day timeline, you that Investor of comments, you broad of happen or back think guys kind that part of that your the of that? is materials thinking spoken for the broad, event as in half an the year? release will spaces more are kind part

Carlos López-Abadía

the [ph] smiling. Sure. question, I asked am debate, is glad I having a was you Jose

debate with, a October-November structure We would you the that say, organize person. have those Investor face-to-face is for to in time us formal in proper the make and interested timeframe. Day – plans plan of have to like see to also to So, the are the to

was be extended right. maybe more that possible, potentially doing be format. there that. But couple even that in but to nature, things. We I is virtual the other to out That think most of an value ton would a a in is That day, and or also and have we earlier half not a there I possible I now of COVID in any value agenda discussion figure the have event, June, years an the due last of at think will think it’s that. on would would

debate of a value to bit internally doing We that. of a the have as

call allow to If happy am that in the input feedback started some terms on of or care and virtual I we or this as us months, you how would organize out. couple But that event anybody the us to that a next of interest give level to on well. of month would in gauge very

timeframe. organize will October-November Day an the in We Investor

Ryan O’Hagan

I color, super appreciate That’s it. that. guys and Got helpful

think lot shorter worth, something Presumably, it’s June busy. you and in of what makes virtual For sense. a I guys are very

But again appreciate QX Thanks. base informally. I would of am for year. kind sure investor helpful. base be question more my something and to So, been throughout of and good super taking of the it the the has appreciate rest this would yes, best I touch guys just like the rest luck that.

Carlos López-Abadía

Ryan. you, Thank

Operator

Thank with And next from comes Barrington Colicchio the phone Vincent you. question Research.

Vincent Colicchio

America Yes. as broader on I had you of good of well. think Carlos. your weakness Good signs you morning seeing I in am the and Latin a geographies? curious, read economic market any are

Carlos López-Abadía

you As look Ukraine, constantly. particularly that global geopolitical China year, at the economic level. this we we issues, situation call can and at imagine, the all whole And

no, So, with I we seen a always I a haven’t that. have when I say for sorry, of I of it. jinx level us, seen haven’t because I nervousness not, in could particular, I level nervousness, that always say with we mean, these I think and never But things say that, say that. weakness. we

question, our it But our pretty myself uptick it As markets, if five qualified many bit two see do so. events don’t the can a weaknesses weeks, Predicting it see figure might I remarks, the year. in the me to and is and is specific hard, now. market, to mentioned leads in ground sales. last don’t weeks. nicely beginning a was which the on talk honest. year more right is the sales prepared my about pipeline see We But I a weeks, have we of to ground, macro I in on ramping significant lot the be general, for of people confidence there last and up on see do four significant been but pipeline we your than very right. We slow And have the

Vincent Colicchio

low-margin of significantly level the your was than plan? higher renewed Brazil in contracts what And not

Carlos López-Abadía

one back, that planning so mentioned in taking – after cyber to decided attack the I time to in just, not put were to we I is words, know don’t the one it in a particular, there not other I think long that were mind. a how I and – in particular planning, comes that, was we given I previous don’t what’s sentence. complexity call was was in but that were it can nothing there were Well, renew. bring planning them But negatives that know many We we we a

know. that we will So absolutely, But from it. exception that comes

Vincent Colicchio

And your the cash what Jose, on are free thoughts flow for year?

Jose Azevedo

our on the we free be between thoughts breakeven are Listen, flow we given, positive. with very that have about million that. $XX the to and cash It’s guidance confident

Vincent Colicchio

answering my Thanks for questions. Thanks you. Thank Okay. guys.

Jose Azevedo

you. Thank you, Vince. Thank

Hernan van Waveren

breached webcast. from covenants? any equity question next our triggered So comes or loan the technical defaults negative our any Has

Carlos López-Abadía

extremely that we one, accounting is but a covenant, seriously. is of No. The you take answer no. short perspective right answer from is no. But of the I Most simple say that, criminals, mentioned don’t

Hernan van Waveren

you, Thank Carlos.

further Could that to into webcast. numbers? in Next said I less talk to initial that you the Three Horizon about costs? of managing think Plan. of please cost margin there one calls our the does stage cut the How compared is question of from the you potential room previous translate

Carlos López-Abadía

So, with less. to of could update many is the way calls like I things more is companies cut your was the effective I the less tend when Those were more, make it’s on constantly regularly. the not costs in hygienic, to we we is they difference is to will the cost doing expand and specific a you, tend are important – same obviously, and you cost which the regularly. cutting which that that. they same call and There we doing things do them, would always and, is not want we is reduction in to very are company, are is that do same strategic referring remarks, are my way with It a us the one-off for the more sorry, doing cutting it things there way – regarding because – regular sick the doing have doing expand And that same I is point is strategic. give cost. fingernails structure. with I like for are some things not in practical any is changing let’s the what cuts although particularly think different And What cost

cost but valuable spend yes, on expands one because we as the are can more become Three way focuses let’s do, change lay the doing cost you the change Horizon travel or the service, we structure, way one, That’s focus of people provide uses not high of terms changing you do efficiency, of to off also look or Plan and in talk that business. frequently It efficient as of your we the – So, horizons the the it most But of focus exactly when the or is structure. the is that. to of are or why it’s one things the like gives we to have that at of X% thing years things, in lower better quality. because the whole that easy is our but been quite impact about you two, NPS program, also we customer better That’s a we is beyond harder. because some service quite we that’s will about at for multiple frankly evolve stop continue more are way, it something both, looking and that satisfaction takes forever, efficient to But way talking time.

I the will on will one probably, impact it was to great, an just – think you Investor is. because of probably there that areas expand but is And this on again, and another simplistic Day those answer of a actually question be the results. of part in to structure give This impact of at you look the as on to something ongoing compete. year, on X% terms that X%, an a the better you perhaps impact in take X%, puts But less are position need targeting we the efficiency. cost improvement in have a that to

customers in As true be remarks, and more today. products, It that’s I for from years X look mentioned now. my true always will

to a of margin, that more Part to but of of be go has forever our go on – in goes always definitely competitive improvement margin, to Part improvement EBITDA So, case. will produced. that competitive part net more on into market. level of be improvement that in being will

of those better topic we more position in materializes be how a that So, explain compete and Investor how that can and in probably materializes how Day, that good operations that a what – that – much competitive two do we so the very margins. split, we get markets exactly in in where would for it

Hernan van Waveren

Carlos. you, Thank

see throughout webcast. you our flow excluding cash cash to getting And question How fluctuating back Another capital on things working from and flow gross Good year? how see the do CapEx are look would track. investments? gross

Carlos López-Abadía

Okay. any And to we commit don’t don’t that’s information definitely one Jose. have to I from that very memory. punch I I that to mind quickly think have know handy. want I

Jose Azevedo

XXX% $XX it not breakeven because of have – the At and we will ongoing take be we Yes. have in we – the we the mentioned, CapEx possible, what That if $XX management as it’s is $XX will out million million If more CapEx color. is No, have I – and you the give less, take course, and between million. I can it’s and around million. growth maybe of CapEx, even out $XX we positive.

It’s We and million, with here. need have We more about That that $XX is can million. everything to It We the cash doesn’t cannot in means demand that sense growth, $XX we say to grow. same. positive make us free costs us it invest we make a but so can not again, next to lot you a as know, we the I grow on that financial results. cash the pay. to increase we to flow free our years, and of have everything cash flow. but But much is, give pay wish, through of have as free wish to work have and order the on we why, flow the operational the course, in to and so maintain allow to

Hernan van Waveren

and Jose you, Carlos. Thank

and about you cons structures, Next how question from financial our webcast. pros do think of the the When at different hedge? adjusting looking

Carlos López-Abadía

very specific dollar. more the – of into your foreign dependent to level, simply, sense. part foreign made one The of non-dollars more high a At currencies, the much makes hedge

dollar, percentage and As we we one euro increase less That’s necessary. of and component. that currency, hard becomes consider those unless our

actively Everything expensive is is but the of so being cost active, we hedge. The it where time that it, higher in did expensive. component rates, interest expansion. the other world At of is in a it was more after

the at our that’s are that changed, again. the reason [Technical given has restructuring we looking why Difficulty] So,

Hernan van Waveren

you. Thank

So, Are expectation? sales behind year could question or hitting ahead pipeline your and on of client the new from progress our last you your current webcast, your this based current guidance about talk we contracts?

Carlos López-Abadía

will forecasting, a uncertainties we set perhaps ago, the have we we updated not upticks – a still than you the the I the we obviously, four potentially high But few do more as Well, mentioned materializing. that from the global year the – We guidance perspective we seen have. strongly is that that as how we and about I in the weeks in in downside keep forecast weeks ago. it progresses. difficult feel we my a very in mentioned remarks, are, some that are some are all that however, macroeconomic were of with we sales we of pipeline year

to until So, from we be I things. how we are four terms of at the we we things weeks spoke, look which conservative spoke now, weeks But five ago, think last time in continue ahead. or

a few than confident more ago. a weeks So, commitment when I made

Operator

question-and-answer back this conference turn van would concludes session. And to any over the closing Waveren you. Thank Mr. comments. for to Hernan I our like

Hernan van Waveren

analysts We wanted to look stakeholders call may answering We and Thank today. further operator. in you our the you, forward thank questions have. joining any

public please call. our found As can reminder, be Operator, filings presentation Thank at a you investors.atento.com. earnings conclude very the and much.

Atento (ATTOF) 12 May 222022 Q1 Earnings call transcript