ATTO - Earnings call transcript Q2 2022

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Operator

Good morning and welcome to Atento’s Second Quarter 2022 Results Conference Call. Today’s call is being recorded. All participants will be in listen-only mode. [Operator Instructions] I would now like to turn the conference over to Mr. Hernan van Waveren, Investor Relations Director for Atento. ahead. go Please

Hernan van Waveren

and XXXX operator operating to fiscal our Thank call welcome to second earnings and discuss first you, everyone Atento’s results. financial

Atento’s Sergio us are with today’s Chief López-Abadía, Executive Here Officer; Chief Passos, for and Financial Officer. Carlos call

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

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

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

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

Carlos López-Abadía

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

in our has our was solid anticipate and services. seen spoke the for believe, month-to-month seen year We you. do release, have June you anticipated we current more we of a when worst, quarter-to-quarter a on strong and to know July going that demand last challenging with improvement have for however, that rest press As based be we and we sales we the first levels of the to although proven be our it XXXX half difficult, than what

experienced I saw that and and from our improving want point challenges and the a severance EBITDA, the the year-on-year also cost comparison expectations year, a performance significant our QX, restructuring project to volumes QX costs inflation. point. main markets, of we we remain. even year, savings particularly in levels of wasn't where to lower results, and addressed the to cost But to me other business costs of one-off from structural cover those we last QX to which wanted including of higher further, the reduced cover set the several regional year. accounting we inflation in the for Also, results, annual effects still that for be positive Let we that year-on-year some reasons in faced at we’ve had briefly with it have cost year because structure residual expect and we been effect due work. EBITDA this where significantly decrease consolidation with which challenges still on includes favorable associated early and measures reducing our rest reduced accrue XX%, beyond. QX nor of and one-off the be On upsides one-off the however, will not we The in benefited this sales lower COVID-related in last

generation has and our better excellent but This significantly result obligations. a due more to to position debt the with working only us On structure, management finish cost process. yielded a allows quarter on to meet capital the cash also is comfortably enabling focus our that hand, to results, other not cash us efficient strong management

that of a has record of do Macroeconomic closely level June look with Let's which the improved consecutive on hard QX the first this have year. solid our have of meet larger environment part by sales we XX% we And sales Inflation a a inflation July lower management by puts We another earlier last record July. steadily will to half, we what and levels component on And versus benefit been achieve sales the or feel record. rest annual is is on are our new XX% and proving second that accrue year. take at inflation this see to negatively June, generated in achieved half structure, across strong our track and been in are this impacted well that We followed confidence? of inflation. currency here track this as although but of growing month and year. organization do with uncertainties of exceed high we our and sales is in last slowing saw at the building us this the year, as year, the key partnership challenges we pass-through significantly what environment is remain, from in second business new Now, the These pipeline channels months sales account and in year we in for worth. the best markets. we

inflation X.X% even do flat a higher leverage us growth margin EBITDA XX guidance conditions. mitigation, first and over and XX.X% leads of half cost of the annual Additionally, result with and improving inflation. between That's beyond revise year to sales, the uncertain taken sales to revenue macroeconomic we've This second improvements performance the improve that in X.Xx. to in to savings said, should ratio the between X.Xx we cost lower we face our half costs, million measures and our and mitigate annualized structure made

Although on end cost we still our with much have forecast better into better year exit we cash a revised course of for us and rate the placing the a a guidance flow structure, a XXXX. at healthy downward, leverage

Passos, Sergio newly on Sergio? our introduce these me expand Let CFO, points. who will appointed

Sergio Passos

Carlos. Well, thank you,

three From the around participating time. earnings. to a start present the mainly all, pleasure had compare and with of if business. for reduction our me QX for is a with the to for you reduction for That mainly for thank to come the finance QX we we QX stay all you quarter. here KPIs, the revenue you highlights X% basically presentation XXXX XXXX. I'll for It that in First of first

is you pretty reduced the one important we the close big had now. in to very, very zero program and volumes COVID-related end, first one know, a that at that U.S., The as

volumes. So, that's of Mexico portion on huge that Mexican regulation relevant We a took had in business. the change out our outsourcing a the

So, some in we also volumes see And share. volume reductions we to in we again. do that need U.S. adjusted had wallet with our built clients reduce and the volumes Brazil some or

that For share. that wallet matter example, decided some clients with high and in cases, the from very cyber Brazil, they had very, had a we doing wallet say, in them, the share adjust then reductions let's to, we

by our plan. impacts Those are we of inflation the were those revenue. on ahead which main So, negative through, partially were offset

example, that of were passed mentioned it an we QX, around We've in as Just Brazil. in prices. XX% we our inflation through

at XX% prior we better to are years. reach be and We project to than a are we we tell pleased QX had when situation and better now which QX, in we that much is

revenue. So, was that

main portion, On revenue the EBITDA was impact driven.

the come operate inflation the part rolled and year as happens year. in jurisdictions pass revenue impacts know we of very the directly portion, end the on through, a the some most So, that at do On inflation because top passing [indiscernible] we keep the in of have that early to of throughout EBITDA. you we inflation

we So, on negative had a impact that.

but our we that up terms next to bit in we had I'm We about events speed decided that costs little that. some accelerate the accelerate of one-time decided slides, in and program. talk going cost also to a to

is it So, some but three because we costs, a of payments, of a rationalization the the had the site for positive two. Brazil, becomes some result at closed severance that And for those some cost, at insurance, in and end, a you us EBITDA impact example, Margin is sites. end. beginning

last So, this do a negative quarter, X.X% this part compared cash we cash are flow in year. flow QX and From in a by the the important negative cash to a down most that is flow positive QX quarter. cash we also have flow, very of

market not a in capital terms time, CapEx. much growth both are in a the of and every we're any control about and always strict situation tell we talk cases, in by that So, driven mainly mainly driven, all working jeopardizing Again, better going cash, later, to on of opportunities. as we

So, everything we investment is making grow, need an we that. continue that that to

one three is The which we costs, basically biggest impact, non-cash finance a the On have is good. main items.

swap P&L So, hedge, $XX effect. $XX that cash that, and paying the on early good financed basically due curve the the to hedge. sheet week, of and million $XX had bond of the And actually, billion we we is $XX for bond. cross is, we is impact have paid the and and as have conversion, [XX] the we the costs bond hedge. payment another Then be the or no for depreciation we upside market [ph] mark million are of have and We balance hedge hedge is [KIs] news is around going [ph] that the to rest positive too the a and for on noted we're To the on bond pay million anticipated that. next we

reducing had that So, opening bit those their that cost consolidated, X% also negative basically two case very there the driven we volumes. our and on a very a a as period. in short-term the ends mainly hard same revenue provision that is you reduced. the went Americas but case Brazil, the up we implemented is in not Telefónica of which California just strong side, have in in regions. EBITDA the and we by This revenue same, Telefónica, the Brazil, disbursement by as from that in of notice through, very, In control little

that Multisector in to is So, some the share to wallet X% In of basically lost. Telefónica by is [indiscernible] reduction of Americas, X.X% related of relates Brazil, that. the we

COVID-related and volumes had Multisector that the third because us. that and we in main Telefónica Telefónica, is mentioned. the but positive three the of come case volume with vendors. of mainly won. in I lost to part is In that growth Some They to we two, keep in They decided EMEA, one clients, deal

on closed on positive volume good business, a Multisector which EMEA, basically in So, we Multisector. had insurance us that. the the contract is help In impact the a

future. We the EBITDA, what also and happened case significant of that. help only the in increased costs, every portion offshore also again, the as we And the and and do impact portion you balance mainly reduction, some Telefónica Americas. down. is And volumes a severance on they of the And played at went know, EBITDA, Volume between in severance, where direct EBITDA in onshore site reduction, is site most Looking of offshore have a that they revenue the rationalization our Brazil volume have in not EMEA. a problem, role that's severances which portion. change. margin. had included impact EBITDA we but had of time us the in will EBITDA, mix reduced a cost EMEA, the in We plus reduce now had Brazil reduction but on we some on and In main the case shutdown a the of exactly the and we offshore onshore – biggest decreased the

a bit, The So volume additional that asked EBITDA and it in this mix good Telefónica offshore with ended [ph]. some changes that news is the that] portion. a up for already [on lower

needs we getting into and So, will QX back keep that expect that change QX.

On is the markets cash the which is saw important cash, would bridge flow. is give the message very a free that you think our the reported EBITDA basically I that EBITDA, we that our this between like to to

capital, a we cash quarter. flow, the main results executed collection Working of million working changing basically this since the operating drivers program million are and free and to and through, cash positive have in is doing positive streamlining have in we've in capital we billing the process, that partial huge walking X CapEx. very a X been So, flow

the that mentioned, as I CapEx, more to on strict expect quarters. very we come control making the In that. in We future a are,

are of to part relates are in to continue in is company we CapEx the the We innovation, the grow to everything investing supports future, good of that debt everything maintenance part new that have to that clients return them good. will we and could of them to in a some but We're businesses, that continue had that are some The future. things we that, eliminating do as in because sites home have are two our with the in two capacity we sites additional and in rationalizing we we at did some Brazil. okay to agents as

the closing some at help. So, of will sites

in one operation was growth available, second capacity much needed than that is having for it investment The additional the lower past. and the is

the growth. have bond. moment, very that so we do We Difficulty] in have are that we grow our and [Technical in revenue discussed we that, do on we a significantly most – some position we SG&A for So, basically costs. believe base good that Capital investment structure, of can

the working Super of, with longer. towards we a smaller have it are let's say, We credit Senior which in [IGB] have do making way some lines, and [ph], we

actions are of end, we And taking. one of leverage that a million the hundred at paying all up. that's do the And So, we but went XX. have our the

you had When we which we As that QX leverage, will the months, cyber QX, to the last very, due bad in includes be end, know, Brazil. out. reached XX year very event

are today effect X.X. would we we cyber at had estimating the X.X So, that excluding just that be

that we we're So, to terms or discussed better future believe in much going of brief. we a leverage. ramp be in Bridge, of little Equity the bit already

negative in effect, that of that non-cash the that the on was impact almost a Most equity actually exchange that variation. past, was than main negative all basically hedge of have XX of positive of XXX mark-to-market XXX, think main $XXX the million is the those hedge is and variation. message we plus I more now, exchange million non-cash the by the

So, although mainly equity non-cash. negative, is it's

quick. we on already that ago. save productivity because And regions. way reduction of most a five the cost that those is mentioned unite that regions we management of is, that. the are a one from a lot course, And the communicated of more On of having reduction, that pretty that, other top on I can in we while examples three structure for of searching of could regions the people on we functions to

that, XXXX. savings procurement a eliminating lot in are during a that, number making positions, [again top of of bring vendors will us we X [ph]. in vendors XXX million more XXXX] million positive reduction the we a increasing on impact the more, and adjusting On of to shrinking or than $XX So, have say, let's of cost and which processes expect

So, full-year be with range about are we would XX [summing] on of [ph] $XX between XX a July the that something and already all in million. executed as of talking and basis, actions that

XXXX So, that's what will onwards. on help us

much believe we cost the half our second better is that much and for position. in structure entering XXXX So, more optimized a

hedge a in I thought us, our talk about hedge, earnings concern and never Now it talked about that we actually but hedge including one calls. always we of of everyone, is

like good have of to with available do but thought don't be you that pretty I it for idea would of So, I'm lot a original for and of early We deeper XXX% anyway, that, this any that principal. a quick. time bond We one-to-one on table reflects would to basically XXX% had figures. understanding We hedged our our a have hedged that. closed is, our this XXXX, we a the coupons exactly hedged, of a XX% and

always Although we are of close pretty that currency. strong say we XX% to

between too we very expensive. optimal, So in would currencies, that Brazilian euros, it. and of swap, And euros. Reais', one. Three a at be to It's we Brazilian [ph] so currency did XX%] [XXX% very the rates Soles, be but Soles XXX%. Peruvian Peruvian will hedge it straightforward cross simple case range fixate very very, and Reais',

to rates happened at was decision the can the CDI that dotted At to sit] the when red [ph] graph is which to had see time, the right, in link that what [positive end, Brazil. line looking forward. the blue rates line CDI, hedge, interest is the is where that is at the solid we you was So, on it the today. a and the the

and X in XX we to now be X between a that of to So, expect to range that XX. between it's

So, it doubled. almost

is end dollars than impacted a which actually the us left higher to was of So, graph, let's the say, cost expectation the at be, today. top is On that lot. the the it

in end, those taking that table, that an is cost we one, the of looking is way for it to both the the $XX at are one the position What opportunity $XXX just the are overall That's one-by- are the we that for of all mark million to time hedge yesterday. I for improve we evaluation forecast you didn't that doing have the hedging. we that the to terms of August is see doing any market sides hedge first help every And mentioned range make better, the at can and in the million. in So, it. why in us of paid we

and because very the we've the little of bit was [indiscernible]. most won't positive having [Europe] [ph] taking restructured [indiscernible] pretty coupons a still we strong So, And us already portion it out hedged. to the the

that seeing And table, this this We we the are online too. it you're of why the evaluating better. one not actions we the of that was did in was executed, already because positive, that's identified and saw Soles that not Peruvian in QX, but

higher, our now coupon it's at pretty here the with much we hedged, at although is currency of are which So, XX% we situations. now are XX% non-strong in-line

on the have a of We [fall] our anytime if full on basically a that available we volumes. evaluation of mentioned, sure accelerated we clients understand projections, scale did of and [ph] coming better sales, that. that that to benefits making future we that projections – what to that's for hedge of also like anybody collect the expectation So, on their costs all And and would Carlos discussion. result the revenue

we in a to our that are need We change guidance. position

So, EBITDA that X% the the course, on now and the of revenue, increased revenue Part we it that was some EBITDA. to had, our between be XX.X% all we guidance rose we sum flat. are that times mid-single-digits XX%, guidance X.X% inflation that expect we we portion outcome And to to we believe. that's range of leverage so costs, to adjusting of is the the revenue, reduce that if And EBITDA. of if as is

updated our So, this to is market. the guidance

Hernan, with here Thank all you for what Very would back you. of to you much. with you. Thank to like very that's share you session. we now, And to be pleased getting So, Q&A much. very

Operator

you. Thank

Instructions] Hernan questions Mr. I'd to webcast. turn session. to the Waveren go over Please will now call van the [Operator begin We received via like our question-and-answer for ahead.

Hernan van Waveren

Thank Sergio. Thank you, you, Carlos.

expand question jeopardize So, And reduction? can our your it comes our from growth your first Can you please CapEx webcast. on capabilities?

Carlos López-Abadía

I think but can Hernan, repeat I hear barely the can you, you question?

Hernan van Waveren

can Can your Sure. And repeat your expand on jeopardize growth CapEx capabilities? please the reductions? I’ll question. you it

Carlos López-Abadía

answer The is, no. question. good Very

We are can available a want not reducing that take have growth for to manner. grow to We we and CapEx growth. profitable every the in opportunity we maintain want to

investments that took not in innovation year. are costs investments make and to We those in to reasons. stronger. for a also did making cyber we the accelerate of going that very jeopardize mentioned obvious QX, We would lot that our early company in I we're you, in the

We also continue to innovations of for those pay as that current the a things. And at of perhaps etcetera. CapEx innovation. One mentioned, cases, taking but an in cost, some judicious in us also We're new already capabilities couple itself to invest that have speculate impact to environment. themselves which people automate has as many based is the industry technology, our example, on Atento, In of for it impact. our the hiring I for cases may we large had to had as but be automation least at very not market the such many taking be, a advantage further we're saving [indiscernible] under approach has work home process, on

have to we in us spend it So, CapEx and allowed to, would has less consolidate also done otherwise. that

judicious taking not innovation. advantage we're or So, jeopardizing home, a growth We're we're consolidation of site and work approach. at but taking

Hernan van Waveren

the a to Atento March, happened a help are another scenario? doing in have rate one. more are what change a deteriorating healthy what I you macroeconomic webcast, tone you Carlos. understand from the sensing you, had and we us to mitigate in challenging our Can Thank question exit now

Carlos López-Abadía

data but trend, had Well, an indeed, all, And a make situation revenue. we pushed good happen. have we've sales up some good at of of that later, set some lesson got points seen side having they would got a more March, couple and do end did good number pushed the those bad now happened a nevertheless, QX, sales. a a but revenue lower is of One have one the some had also movement in delayed, that the relevant of seen the delayed The the ramping sales good of sales is news of base perhaps, during not and side. is those one. companies good back, key Very customers. March. We but improving say Unfortunately, and that this things What situation very that happened we've news but good very of prospects volume did first I forecast, sales we is a news, question back, the on particularly most on

them business conservative were I accelerated mention customers probably One GameStop, are Yes, customer decline, ours. large and difficulties in as but own the all decline seeing you the very being business of of of because know their we can is more our having expansion.

accelerated So QX. that in

saw the started these on Now, on we we and the lining silver side, plus taking quickly action.

manage and done that make which First, with obligations we've preserve comfortable our sure a effectively. margin, we've cash meet to seen we to that

improved that better Second, downsize a cost artificially the but with a position, in the costs associated handle our we to take which of going mentioned, as impacted. to economy. of for us has put I potential it's position in lot We QX,

reaping we're of changes. benefits those are to QX, they the QX associated happened actions costs cost beyond these bulk are structural and with of the in So, the because

I to regions take just the the cost in and not that works, benefit other Sergio in. to I take additional actions we take that Some of – in try long-term, the mentioned, and cost that they think going in We short-term. the consolidation approach of the that to trying to the we them were ones are

a actions. So, if silver has that aggregated there's those it lining, is

the us accelerate taken much to we QX confident play of or sales, So, the for the down and to months a prospects volumes trend. also then of because revenue, the sales It's conservative immediate good question QX, of have irrespective tends a the the question. approach it but are margin you and gives is, very ourselves how more taken, And and if two had actions with more asking, the that economy that the we ask that all probably to answer are. we key question we we've you, here the that very we've same relevant is

gotten difficult So, do only forecasts. the company get speed are depth better room reminded forecast. have not And at the That a that events. people me that more it it course, we differently? doesn't it's of got it's or any And a more make conservative A people taken It's other Of wrong. on and at foolproof, fact very conservative but frequently to we which we're The right markets many the it face better all. lot wiggle some have things just wrong. feel happen the or have any doesn't deteriorated. I’m that in make more we've the by things companies the Is we of these things that with complicated, already. that – any feel actions extraordinary forecast based have these

Hernan van Waveren

Thank you, Carlos.

to ask you advantage end? on rate webcast. at question expected take year mean what from I'll another healthy by So, Can our provide color you some

Carlos López-Abadía

XX%. Sure.

EBITDA XX% exceed We’re to targeting margin.

Hernan van Waveren

you. Thank

volume these and are As their investments down coming slowing down? from see their your tech costs, companies companies controlling you do

Carlos López-Abadía

Can you repeat that, Hernan?

Hernan van Waveren

Sure. Yes.

As down volumes slowing and tech companies companies investments coming these down? controlling costs, you do their some from see their are

Carlos López-Abadía

Sure.

can You of volumes. them. know, quite but them, to number I'm name decreased of a GameStop, of have not all them going one, say mention I mentioned, quite a the number because we but is

across happening seen general, board. in So, I think that we've the

view. hopeful I'm conservative will and take more mentioned to as I my sectors some and a the that obviously Now, some forecast, positive regarding sign, Hopefully, trying said, it's growing. growth our are but previous activity tell. I call, overly Time conservative. that's in in

Hernan van Waveren

Thank you, Carlos.

to if would operator, the open So microphone you for questions. like

Operator

Absolutely.

comes from with Our Research. Colicchio Vincent first Please question ahead. today Barrington go

Vincent Colicchio

to what – the that attack, in Question was Yes. impacted declines share had Good more the Carlos. cybersecurity from expected? you morning, wallet shifting work tied was extent than that Brazil, to is, company

Carlos López-Abadía

that customers diversify. I we risk think those in But in than work that are. wallet an not all, me has there That were us. we indirect first From seen our haven't very expectations of impact. would decline, of they that we let a terms what large share on some forecasted. more had way, saw exceeded clarify. some of some a dependency in lines we because XX% And

you a it kind has of it's cyberattack. something impact. and to hard quarter hurts of you're to when you QX know, Vincent, year. in was that a very the been been fact, do indirect very In because an middle every revenue sell next in difficult we well, QX, of less. you lot Brazil it know if bit It's that as sell know Clearly, the in you produces

If you sell something year, little very of year. in only the this produces in this it QX

So, of for QX is very the revenues the year. important

So probably the Brazil. in underestimated QX pace in that pickup of QX, we we Also, know. the

happy quarantine, able to know, to grow allow to In the cyberattack. that, to has, them to participate now fact, I and the continue some you sales, after happening – or The last know, don't know, know if you and of sad customers. sell time to, one you us I'm in four that new we're in say last of major it, had an customers want call amount those or sequence that's you

or That accurately, associated forecast it that and was – or slowness didn't be. – more much indirect how part, of the Brazil volumes decrease the was we after cyberattack. that So, we – the growth did with been to customers, it disappearing, did underestimated happen in of directly more thing than impact that's of it's been that going inability ramp which one to they either how that of up hard we much

Operator

you. Please our with from ahead. Thank next Manzano And Santalucia. go today Antonio comes question

Antonio Manzano

my Sergio, I ask I'll for Hernan. very taking you if much Carlos. Hello. two Hello, Good Hello, everyone. Thank may. questions. morning,

First, generation. of XX% revenues second is is question at the current How and of in comfortable the would both second are if guidance And my correct, math the figures in whole least year, half. the half growth new EBITDA with those imply second my the the margin of cash then around X.X% you the revenue year-on-year environment? on on for

X the past very the in still indicated half to million year the for expect do from second you in the would year? of standing What that Are have million be the capital you much. cash X You Thank generation by million indication? working between XX you XX million? and

Carlos López-Abadía

we could are and – I The any understood understand better have speaker would I Sergio has having minutes and some of meaning to gave The it, the couldn't to speaker well. I I one few Antonio, questions. about a I think my are but economy did conservative how forecast have a luck we the think understand got turn we that. understand ago. view and I could much I I'm of more answer the address out. is horrendous. very going sure in And is how case, hear could Right? going you I that I best confident hopefully a Not is the numbers, part apologize. the only general as numbers think I We about

also and I for a more any probably more feel of play to we actions with. – confident. than cash sure question each couldn't Sergio And we think margin me. more the that the have case, And And more will in cost that make But more We and – numbers. one for one, numbers. every that was applies I have since the to taking to from perspective, hear

pass You the rest to know, me let Sergio.

Sergio Passos

have that is believe we is so very Well, volumes revenue, our have mentioned, we Yeah. good seasonal, first, usually well, Carlos. quarter-over-quarter. Yes, we business as prospects. always Carlos that, increase What

as the to half, And of XX. to with minus new we to had very much XX we make in half to will something let's question, EBITDA revenue last expect one the cost we or expect the free in margins that higher for first in it had significantly the considering of at the confident continue second in Carlos half, to that our see plus] much the the better we say, our forecast, as we first June reaching than the will mentioned, [ph], increase mentioned in baseline that will in That plus in So, the Combined in numbers was a we that did, range past, but conservative cash minus with later half. as as the range generation X what flow later year. your sales overall, our to that XX everything increase. reduction in [XX the be are hard combined July. Carlos second the on But not of will we the end, continue increase and

work so revenue QX So, The we have doing we not continue. to change change, reduced continue the which generation. is a QX one-time and the our do driven strong event. projections, cash reduced our benefit or too. we we on QX in come free the working believe that we It's capital, have projections will process same in are We in way flow a

that. working need much CapEx because the on selective growth, positive to need we we have we very So, being more will is that even is also with that, to than And capital. available something a [indiscernible] structured portion invest to expect do capacity. we that are the have a some With and

So, with impacts seen continue new half in those be the to we HX combining and redo. but two will year, to end, the of HX at the second the need guidance

is which XX, XX between minus So, we minus to have flow and projection. our already cash in expect cash

we in in to go and through paid mentioned, I XX. already disbursement this all there, as we debts part to and of range minus but we [next we that for the They need cash our XX minus continue all our of hedge and [ph], projects are day’s] future. now paid the So,

Antonio Manzano

very you Thank much.

Hernan van Waveren

you. Thank

So, our next question comes from webcast.

Are credit call? extending in you XX on as of these lines, year-end you or you Are are these or more process? working mentioned less? million XXX% have by Regarding on rolling XXXX. the anticipating Where you the the maturity

Carlos López-Abadía

Sergio?

Sergio Passos

both with working are we are we Actually, Yeah. scenarios.

with all] working to do [ph] are [renewing them the we So, we throughout XXXX. managed entire as

credit lines managed XXXX we had were small and renew we them. expired during to that several So,

them. We renewing few are we have that's but pending of because still a timing,

them today. succeeded are and renew to of as hard So, we first, all yes, working

valuation. is we one a a This having small could so lines longer-term second with one that. more shift lines are of evaluate continuing to The a to way that with is we a bigger instead shorter-term, that work shorter-term on on under a medium to longer-term from credit of credit the

our don't it. have are We working to can main additional We is alternative. structuring facilities cash say, that We you, we disbursement very we any we cases. fast situation for anything, are can communicate it let's don't are – with In anyway, that. confident any but we we call on anticipate because now. in increase yet have significant So, credit need that are the without that both close to

throughout comfortable with that year. the very are we So,

Hernan van Waveren

you, Thank Sergio.

the our or can from share question color Another on updates Any any webcast. transactions? you strategic

Carlos López-Abadía

important we as specific comment specific is it's have is My M&A will the mentioned have shareholder on to this look that data we to always. something dimension. that all when same answer have to only But And at. is [indiscernible] on. and one we an of to value do the when we always comment something attempt companies and that to anything create

don't will same don't, before. gave be So, ongoing rumors, you as policy continue we so matter We a of answer. that as fact, activities to a answer comment on and I or as

Antonio Manzano

Thank One you their you, are size? last give on industry some that of volumes, the from color webcast. Carlos. Could clients our us type growing question

Carlos López-Abadía

that surprised. probably you couple or as in Anyone Despite also to that as that key it's sectors significant year. a not bullish probably it but provide come perhaps a still that months. not is Well, earlier expect was and a as strong ago, to technology continue is first. it that very ones last a to long-time such probably to an it as travel, to of the ago, continues growing us be year for traveling was buoyant we as for year volumes will sector in still we've Those surprise sectors not was the had Energy is seen for continues – particularly elsewhere fact and growth. opportunities been Europe the engine the it activity one not be are the of mind has

Hernan van Waveren

that you for open if Carlos. can Operator, joining the Thank the the are microphone you, phone. through people

Operator

Absolutely.

from question ahead. with Please Beltran next go Our Palazuelo DLTV. comes

Beltran Palazuelo

morning, Good Sergio Hello. everyone. Good morning, Carlos. Hernan, and

exactly just are And measures, or next is to Regarding, to for what then the hedge, XXXX, [indiscernible] volumes, they were cost cash let's end you weren’t the year? you year positive what more rate regarding do flow [XX%] – of generation, expect these or less the expect or negative all XXXX? the [ph] generate for stay cash you with cost over with all what Regarding margin cutting run mentioned? expecting say do free you mentioned, you the EBITDA to

Carlos López-Abadía

we have. apologize you, I Beltran. Again, Thank the for sound bad that

I think got your most I question. of

the expect of plan hyperbole it's haven't we that as given all, expect put, just finish measures cost and detailed vast rate, year XXXX, the strong taking with we – we let not but majority expect we make for in a the make company. to the the stronger I are better actually first be, I taken but have fundamental developed say fundamentally the not in in we them just not reduce So, general that forecast to exit a get rate, we're just that we’ve cost position a not mentioned, me but of and to terms, short-term, to or that tell sure you are changes

sectors, trying As in attention need now, services, maintain but transforming the you're customer machine the organically sales to I One to the change base less why you're engine a is, which company. trying it doing do we've been the need geographies, didn't of we much to with when that continue as allows now mention – and pay we're of need figures, I That's customers, build is if than but different also to mention, different company. make that much change to, we that trying we different we portfolio perhaps lot us if the you sales the I'll the mentioned, did continued investments transformation to to company. thing to the sales before, of a you're not as

to continued continued and us. investment continues for be So, that progress a

structure do that that rate to – make investment CapEx. to position. to and targeting a improve, XXXX continue So, with if of despite in more that is on much we we're the together, those all the continued use frugal exit do put we have things you enter have now bit better the We we expect get the cost to

specific to what an stronger perspective, definitely next inflation perspective we'll obviously, as see a have XXXX, from looking come and XXXX, perhaps continue with economy specific into a the will but the company forecast Now, what yet. we world we out which growth like for, numbers stronger be were have was developed and XXXX will looks you of a to not for from but – those the year

Sergio Passos

very some consider We we organization, grow lean. base thing working we are can one I can say, I significantly towards just capacity add our revenue had our are If and is available that to in Carlos, any mentioned, that them our without as able as important increase. cost sites let's supporting we making

between costs, with about we personnel growing quite they a were XX% ago. much years increase a meaning talking range So, basically increase costs, are few than have better site few in to we because a structure processes The costs revenue there. it a in the couple are XX% quite of

that are do, So, should basis built we the the for including way that on everybody better projections cost much in our a us, should we future. consider that was

we always we not year next rate had of Exiting back. starting look if course, rates know because Of you is several. inflation. the We had

point history] all departing a us, one [ph]. starting for So, is say, very or but good of considering the a for XXXX XX% as, [tax let's

Beltran Palazuelo

but – mean QX, perspective I strongest all start year good on better didn't point, a what our clearly, with Thanks. Yeah. that forward positions XXXX. by given Sergio No, the of this structure to into the on into year, we exit the cost having going puts

Hernan van Waveren

Thank Thank you, you, Carlos. Sergio.

question How have be our webcast. to We I pursue a of credits, capacity more lines from these tend to secured If do have would new do debt? covenant you much unsecured?

Carlos López-Abadía

structure. pricing the stock of some looking given We Clearly, to that clearly, debt, tell value do we'll at do our financing we're have shareholders and options improve question debt, to add one secure our improve, approach in is probably and that. mind and is capacity senior we to the to to people also then to how

Hernan van Waveren

Thank you, Carlos.

provide to With services key of regards our webcast. developing? could from have examples you you question Another capabilities you're new digital that building, been

Carlos López-Abadía

our have of in something next ongoing every is and next when company to and I about industry. this is quarter It's something we know any that that about in always a of Sure. on aspect. our talking the that speak But part continues and in that go like that more other Clearly, are continue transformation. neglected background quarter to a you that we perhaps year we'll be Atento minds, wants those. events more leader have of the is forefront probably and

started. have We

in We business, which have we clients the content have moderation before. now didn't

We it before that. are about We now delivering in have we and also started talked multilingual. clients on

have the deliver we We going that like projects mentioned technology, that some we're for projects [ph] of that some business past particularly advantage in in technology] on I [RPA taking to start customers.

and basis way started do to we others. structured a with this more ongoing on Now,

say, million take very they particularly a mentioned one All said, [ph]. automation of overall numbers building of insipient automated Many fully have continue the million but big these we are future, the growing on in we're they no more of country, humans the other on the as are as I businesses but just of quarter the ones example, quarter, I intelligence, small, for those in always will take nurture. in as use the And of technologies long-term. not recent. making impact but They're this are but technology. They're as, margins, for they Those Atento, [incipient a are for may such relatively we than to using today We large, Atento or high next businesses] involved. things that more well. that calls not and than examples one technology. not we do have are I artificial

of them will of and Some them new essence keep benefit building not, trying but on of on is of and enormously, the customers grow the for will some innovation of advancing keep the our Atento. things

Hernan van Waveren

the Thank Carlos. Sergio. call you, ends It today. Thank for you,

Carlos López-Abadía

quarter-on-quarter-on-quarter. said to I've I HX remarks, going just difficult question was We how our knew difficult. about are important are how We be. going I've to change. we we that – been we way improve didn't confident much answered going how of how some No No be about as things you, going forecast. feel are confident We're to it the confident know very are to to things and and very now it's started, only was

the building for of in positive rest in a more in to of very a and flow, believe important cost also future our for taken some action year impact the and but position. forecast We've have We better going preserving costs to Atento. those be QX, preserve conservative and preserving is that the significant taken forecast. of we cash very the that We've

very thank So, much. you

Operator

and attending Ladies this concludes presentation. We for thank all presentation. you. today's Thank today's gentlemen, you

now may You your disconnect lines.

Atento (ATTOF) 6 Aug 222022 Q2 Earnings call transcript