- Earnings call transcript Q3 2022

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Operator

Good morning and welcome to Atento’s Third 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 quarter earnings and discuss third 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

Good Hernan. more to morning you, of XXXX expected all be Thank proven has to difficult you. we Good than here afternoon. initially.

to first happy that half I'm beginning report we've show the that results. However, of the are taken during measures to the year

key and our on continue build capabilities, significantly to five service focused areas, advance inflation our security. structure, cost improved We in past operational improved are efficiencies, our sales face accelerated management,

the XX.X%, EBITDA Philippines to initiating major points, result, X.X sales have and commitment by percentage shareholders. our the improved a by expansion sequentially of we As locked up margin our grown

margin XX%. impact actions with to business XX% continue to We between the QX positively expect these to into EBITDA

particularly for year some for in environment, range and improvement, in EEBITDA in margin of us XX.X% an QX due volumes reduce our seen to the to their have to business Brazil. to of expect in This overall XX%. uncertainties As QX some customers leads this we the

actions effect in of do the well and we to While XXXX. the ongoing just continuing and of of half exit beginning expect XXXX of are results we a the rate the impact of second stronger to significant trend have position as the our much for second see half the XXXX,

take taken the me Let you actions the and expected. through impact

essential As have of right we a and plan, key a component into transformation On our to channel. partner the is capabilities expanding new sales geographies. grow of our lot segments things, started

inside We sales have started program. an

management improved have on We account accounts. with particular a platinum focus

to growth on capabilities. delivery us XXXX. start record placing we've much on an result, year sales total million after better position a emphasis we a improvement our improvement continued the in QX, seen of of place year with XX.X% But significant in value, of As annual respect finish excess XX now, to also QX

addition We project efficiencies program of level XX In [attrition], breakthrough. like have achieved broader absenteeism. on areas to improvements XXXX, we focus new during a million improvements, phase on with call focused which operational of it are launched

percentage two in We showing improvements margin. have XX new to one of points tested centers processes the EBITDA between

as operational We expect not are of these before cost to this out next customers they the QX simply to completed as program taker, I well that improvements higher to full better of represent be roll emphasize resulting want the year. genuine in service end improvements margins.

support vendor with our have regions the three roles than improved management. of of consolidation our completed XXX and reduction more have We

while beyond. QX and we QX these QX measures of in the As costs beginning took one-time the QX I mentioned the benefits our are QX, of bulk now and in a in to lot of accrue call,

the we close our now of and those clauses All management have as have a IPT legacy accelerated these new inflation also not that have to of yet. pass IPT, reaching standard do have contracts it. clause, contracts of through, XX% we negotiations improved We improvement our the call

and noticed out been of our infrastructure publicly. cyber virtue making in have investments necessity, Finally, externally

on You a to of the can the also, back Philippine’s such SecurityScorecard, competition. of up new new company very where look finished the of we announce of us demand as And operation launch on existing rating clients sites happy a in new specific Philippines significantly the ahead security and clients.

XX% million. in quarter this cap our shareholders be company commitment million year more of of low We to revenue $XX expect first ownership. announced representing Also, the the between we to than major the $XX

Now, last be expenses. of year high our will abnormally financial XXXX

in also and addition our be existing banks. debt, to structure, from taking liquidity could if provide improve of XXXX in to of our a We business from provide proceeds, reassurance ample order of or financing should and additional international from have number a capital we of that additional repaying plan but investors for existing to liquidity, evaluating offers used investors financial financial our customers to alternatives obligations, The our repurchasing including -- prices. current market cover sufficiently needed, are part advantage

We over like We expect to the priority now This with our for progress and our measure in few month finish sharing weeks. progress would to announcement I continues make this next you ESG. be to Atento. an quarter. to with ongoing on month quarter to an

industry. Sustainalytics the positions leader You a that check us with in parties can Atento out already independent as such as

who to Now is additional Sergio, detail. going turn you. over over Sergio, this to let me to add

Sergio Passos

about in you, to Carlos, not from QX thank a QX participating to a and very last of talking thank quick year, different I’d QX -- start everyone between start and for call. the just our making comparison earnings change slightly QX. but like Well, QX

of terms sequential would revenue. our is start how I So, in with main KPIs? movement

point compare recession because constant of revenue, is a percentage if we basically which X.X to QX, So the we've good some in currency we of on economies. the a evaluating in sign on or evolution increase had downturns QX been QX, potential

a side. -- sign X.X% So result told record is that's good that revenue some the a positive what of so we revenue QX you having a had of a base on on we sales

report Looking a at let's EBITDA, we increase. can there significant is say, where

percentage would some with had reported we costs of half But those we incremental So of is bringing some site accelerating costs our and last would points that like a QX severance X.X talked is about that QX second lot actions the of hurt and EBITDA actions shutdown, others. that are year. off. we like a lot What quarter, benefit that paying

and So are we are we the increasing so we else. now are about, points to X.X, X.X revenue of the with very all EBITDA far of from even what percentage economy everything talking XX.X%

flow, the trend. On are the operating cash same we keeping

positive So we X.X in QX were this at year. of

expenses and we hedge of I will free quarter. flow had cash August that have which Looking payments the chart at drove better We down the to and in flow. bond that finance free explain you. a Then the had cash the for all

of X.X% see now on looking constant had way QX QX, compared ’XX. that looking, ‘XX we had Looking of points which a more the basis, on QX so at again, compared to is X basis, down. what we again to because in -- minus We so a QX we traditional you sign that constant reduction on revenue, we good a QX percentage a the showed in had

to down was ‘XX QX X% ‘XX. of of compared QX So,

gradual that slight a in reduction showing way, volume a we -- QX. So reduction this on or of a reduction a in space saw it's

down. severance year, at margin of some QX. XX.X costs that to where still much had impact still mentioned, Brazil, did costs wallet to again, down QX, way, Looking with have I on they we in compared reduction get EBTIDA is mentioned lingering And in part we our we was have the of from We year But driving return last consolidated QX terms lot main volume In that off when a last back, effects but Atento, big, of is had as most clients share had compared that we had which like one scenario, were some some are not in percentage the volume and by some we at, that economic very of a we also volumes points. not as them. of X.X a of the volumes

details in related in was volumes we last some that the could relates we profitability part X% throughout volumes we sector that So Brazil, cyber-attack have return, are the price reduction to X%, that that minimum which also X%, didn't do that our by and to or -- looking received revenue in and out more of the down that cyber below do. quarter that targets

in year, competitive Telefónica, Telefónica in the one sure On revenue way, decided participate. revenue, makes way the we and down them So continue we is the two And efficiency implemented down. reduction actually that year. EBITDA did adjustment XX.X% and This in the they revenue in volumes; margin. our a -- they moved throughout that has mainly with components: not efficiency. is volume, terms of to had cost reducing cost program to make they a we us X% by that early to the entire huge other are partially on they prices more that are together of one a driven

are we four have we we EBITDA there. the to managed offset We volume that in because downturn severance some of points margin, Brazil. part But percentage So closed on still down volume XX.X. reduction of which at the that

on the the can different. see Americas, year, economic throughout of X.X% because last a our we we is We countries the all year, less good continue in pretty is could all line in last volume base. increase with segment, Americas line. Multisector at in scenario we the terms sign a which much of the the have -- Looking with to almost same of had -- is even downturn -- quarter completely that in -- revenue

had as from as revenue XXXX, the fact margins again some low. a resume in a on countries COVID. cases, the outcome good And increase higher longer a after impact in In the basically on positive but that that's hyperinflation, had of we and EBITDA So Telefónica. of which effect a has recover react revenue. are we the Argentina the that we volume growth also those Telefónica, we negative are positive took Argentina terms to in to

we QX. year, in a in in In volumes in growth percentage of some EMEA, the in showing the contracts. X.X some in mainly off down of So by the drivers insurance do here also contracts between for other energy we had the Americas. sector. as We Multisector, that in and XX% XX% Telefónica, case almost is in a in took of over onshore on one margin that the had EMEA And we The terms have points minus the the on driven have mix that's X.X came contracts a is from We Multisector. offshore. the points beginning sector EBITDA of percentage of which result competitors of

offshore the to we throughout because are situation revert on slightly is onshore. growing that in last to more we weeks more would the So offshore. on see that The expectation than we now, than are growth -- onshore more can the QX,

Looking at basically our costs did we cash paid lot in flow improvement that mentioned, as the -- a I operational we of off. indirect breach, and QX

$XX had million we So QX. in

that very $XX going is it’s billing, Mexico, EBITDA a in had of mentioned EBITDA minus had in Peru, main negative of the a procedures have million of we increase our in $XX we the in of also Columbia, terms last implemented reached SAP, exactly we capital. a collections. new I the EBITDA. delaying or billing the way U.S. that million But quarter. that countries and issue a very, process, leases, so closing some $XX million is in an southern GAAP we program Now wave changes, that Taking bit $X We the a the of basically the million, little efficiency in implementation, the of cash working implementation well. $X delayed quarter, the the for which in out bill-to-pay million QX, for in

more that compensate expect to We QX.

we working So actions. for only we $X result quarter QX terms when that is had QX always Combine actually change a have already of a million, positive all with closing, but what it in best that capital in the collections. as our not compensate discussed significantly of

Some clients actually anticipate payments December. to

million down in have cash discussed a that finance and we hedge. of flow million that that XX. cash have would doing. $XX of QX we million, And level very our reduced as of cybersecurity, operating $X flow. is quarter. million the that $XX.X relates terms we $XX in to of we usually was sites, way, positive in because that free are on expense -- CapEx, what we continue figures in the make we million August, by the in very, The our positive that's and finance that. our basically us expect basically other plus less control quarter bond $X our negative expenses a security, are Everything droves bonds to flow have some around investments growth, availability hedge, But So we same are

very, very in for That working and what positive. a cash. EBITDA drove pre -- show negative QX million capital positive a expected will basically QX, is QX For very flow cash change $XX

in As closing had we the of we million of cash. $XXX reported QX,

months year. of We is expectation the are cash of the will down close flow are of net the effect and QX X.X But leverage QX free QX and at the here basically is stand leverage did But months of 'XX. would the EBITDA. reported million of times cash back the EBITDA to that From XX to that's exclude last Remember to $XXX last again, simulation a what we we positive to XX if is the as year. numbers I QX year. this as the mentioned, last of $XX the million of the a that, cyber closing be us I all what with XX' our from just make of expectation used in the QX point, leverage range we

simulation the when the we will much of we what I would last in just year have the the of and year, enter months. QX need Because adjusting So cyber we out of XX QX when close would for close it which year. last 'XX, go pretty automatically will new QX a

is year facilities. have schedule, a we of the So, our to for that's on all we simulation From in good renewed I basically payment expect -- would what like to report the what debt end. that

shown renewed. that the already 'XX is there So quarter, was closing the but of on basically we at one

last the our facility is 'XX, which So have IDB, out any included short-term would for the senior is we say I debt to that super we thing the And of so million which okay covenants be commitment $XX other the don't let's keep covenant. action. that kind repayment is quarter. considered point And a inside with we renewing would automatic which renewable close the and facility are a nearly on control in is of all very facility is drop based covenants, an of those like

shown we important on course Based high Another of our obligations financial about increased is in that and expect is costs. well of thing chart. Carlos finance the XXXX year that comments concerns of his financial are market our will that to as aware last we be rates, forward expenses

Difficulty] in showing saves, what sales saw that recovered new you that ensured particularly as some we is the from shortly first Philippines. Carlos is did we what So EMEA we and currencies business, in and we have also are [Technical we the so presented, new the U.S.

of in as operating is equity would could we impact. is finance liquidity last negative you on the a now equity. and let's are the Even million and comment we are was our the Another to euro in and we any very exchange capital the too. variation the the profit our other and we million alternatives $XXX equity. main had some QX enhance to continuous hedge evaluating mentioned, any refinance existing of debt important down But positive of that reported that and finance actually thing Again, including mainly a improve close to I other are drove under for course, rates reporting that currencies negative $XXX change finance, slight that say, is sources, are source We structure scenario. of looking positive. maturities receivables quarter mainly The I to thing cost mention equity on like

mention variation that of impact, non-cash So of the a cash the million. we of quarter, the the to exchange relates on million and is that for that closing hedge, mark-to-market it's Important $XXX at $XXX of we had $XXX at which but equity, so have impact most is the the have to that the we had close. to to important you million what, all now is low

had think, end. I I what So my that's from

I open think to should that we Q&A session. now

Operator

van via Waveren over receive Mr. to [Operator webcast. the questions call Instructions] I turn Hernan Now for

Hernan van Waveren

have pricing is environment your our Carlos you? how Thank question you, are key a competitive audience. Sergio, What markets from I the and and in

Carlos López-Abadía

industry, clearly is price very a Well, competitive and price we important -- every cost is operate customer. to in

from and general Now sector it sector to changes that's but geography. geography to statement,

much the growth less Our it better to that the price sectors high competitive can can in get do call sensitive. allow is where price. us that in growth There are price Everybody's allows some We is growth have good the value can and create that also margins. -- much value get therefore margins. legacy focus and price can sensitive us to more we of But more sectors -- you that sectors create our we it sensitive. have

doing So as, we’re is one offerings. customers to that introduce of well the serve those things

this more For structure, wise. example, But we to in allows have competitive Brazil something has offering us cost we [Atento Lite]. year, price done that lower fundamentally a we've call an it be

Of or cannot pricing those make want for us. to we that the approach to components that we feel that the We having choose course, make and there segments three way are is customers think to the some contracts, exit. we best pressures margins where we cost we

Hernan van Waveren

We on from audience. help our reducing expect understand have it? question Please so cost and how another your you significantly us can keep growing to still be

Carlos López-Abadía

as think have There's my and certain costs me cut that I let types of to alluded you amplify costs. Well, I here. simply in remarks

thinking try For may creep not efficient to be make about are in. cutting. cost sure example, people cost SG&A, more what you when to those always And have be more that do and thinking

and of our cetera. where part efficient it just I've core office, mentioned beginning But operation, the in We -- do in the services to less or we our things we doing ticket like efficiencies same the to operation with mentioned be more big that terms also a the And it's of things the strategy way from et deliver our way in them customer. is win-win-win. where in delivery, bulk These that big effort. efficiently. to be not less are the is And will we efficient will back that be about in This in the be dimension. more is way item is the with efficiencies more about that value of people a the same vigilant the multi-year to in changing SG&A continue assets. a do the I handle in the the in sense,

And doing provide and You can customers. to that. more keep on also costs, service our better only efficiencies but you get better not you

As part I we phase I think breakthrough. an two example, now mentioned the what project as of of call our

One areas example, of attrition. the good of is is for example. focus, Attrition a

If reduce costs. you you reduce attrition,

less. You have train to hire have to less, you

You you efficient. customer the your you're in have better they that stay a cost reduce But customers, because your also the that and and service. agents, benefits more further, longer provide have employees and more your customer serving they experience

a it's So win-win-win.

it's difficult, can more although you course that, takes it grow. that and in keep on So it's doing more a project, doing multiyear of time and

Hernan van Waveren

So have XX.X% does reflect increase on our TCV the another and we the How revenue impact? future current question audience. from

Carlos López-Abadía

for need it's I important. revenue. important the -- to from -- mean I us, distinguish very to Perhaps sales important very

As you and time, a up ramp -- starts revenue accruing. have you sell, revenue then

the the the that terms the increase impact are of start QX, those I sales are us that QX revenue have because have QX that producing revenue XXXX to the -- case sales of in important biggest So, all we very the mentioned QX and that for start particularly earlier perspective, throughout of QX, feel in year we the XXXX, in positive sales year. the next -- in because From this we for about very example, and when it's the impact in during the have going year. have an sales of

Hernan van Waveren

Operator, Speakers] mind questions? Thank would you, the opening Carlos. [Multiple you

Operator

Hanlon Santander. Our first from question Declan comes today with

Declan Hanlon

of questions. Couple

are decrease fourth quarter, the presume numbers is that. second First the off, your a we with I good I while That is gets that in little associated through and required to back on fourth full up And I'm it year now to built and concerning margin of we're the that are that. sheet thinking were XX% But mid XXs about in We where math of issues guess, guidance. that kind kind here, visibility. of brings doing on achieve witnessing you bit. the cash assuming a quarter somewhere as pretty backdrop understand the micro a end, you just the balance to

granularity you of bit comment a if terms that, appreciate I'd can little in more it. So on

was second mentioned The Carlos what to question around management. by relates liability

broadly you here. I understand at availability on the basically -- get calculations, under that secured no you this your According or have under test lines, you thinking While to my have debt into details can't -- I'm don't you're minimal point. just

are Just about hypothetically, go much. my this how initiative at would point? questions. you Thank two very LM you Those an

Carlos López-Abadía

Sure.

So I -- I -- Sergio think give just question. think to on the directionally But answer the think specifics math. see the first let and you so going the correct, you're question, on I think, part that you I is I'm three to a

I So to the yes. stage? visibility this the do first a at you answer have question, think is

a month to and have half We go. a

close pretty think in be EBITDA overall. I our numbers. line, for anything the we the expectation you can in see that And to conservative if will and are growth So QX to

institutional of invested do component, On are how you at international with their -- part, of proposals we receivable a And mentioned, number are the an I investors at, part behind pack. -- that we liability company we have -- as in from them as the second important that has go about several the of -- is proposals them, As that? receivables looking banks. different management, the look at looking well that that structure

on the probably mentioned, -- them. we as doing you this. cannot no think I of we EBITDA, detail correctly we a a get into So of number are lot Sergio, while And

Sergio Passos

that XX%, would to quarters actually we're a to I that of consider which in We assumption. XX%, increase. going of you’re two row the be your to be range right in more the in pretty think XX%

better. your quarter. to expect in the we support X and it question, point, I but not that would So was plus increase specific come are least increased we -- limited the it QX, we fourth QX. expect of probably of X.X XXX, range to increase one And costs To have will We'll another year. the finance to -- we capital no, ended quarter any to the have percentage a you cash XX we our no that were working had when the EBITDA know but very same much to at not points was last back which in from QX -- make the

Hernan van Waveren

Thank you, Operator.

the question have What What's moment? funded? from capital We a in going to of audience. competitive Philippines our advantage for the be needed this, this will is the this CapEx and working how and

Carlos López-Abadía

are self-funding this We answer to in one get is scale, me last a that want meant customers going I to within this positive the not Let a mentioned, do it, project, we're prudent call at first. way. existing business site site. we customers of but we'll last the the the I that points is we now specific entertained we the in -- We And the to very business years, and particular the one and Philippines we new year. This initiative launching it. is is self-funding this have and few what the and both as for a hoping right opening fundamentally thing opportunity different had there,

specific is said, with to in going done year. -- off is And a within pay is we I that it -- going to So, go as into the business Philippines. the

the read again? can it was you competitive, of it The other the part question,

Hernan van Waveren

the Philippines? going competitive to of the What’s Sure. advantage

Carlos López-Abadía

the an important of in this on So, competing U.S. tool leg is Philippines

in in the that world, market. customers using that. And -- we near another are the second selling that is on important infrastructure customers successful The shore. is to the none We selling very have we've been Philippines U.S. selling -- capability best in very the and

the in small number customers, just closed have business but -- existing in new win have us in the an to of customers, customers also the with a could having we very for very US we market, that's so Philippines, have and And business serve in favorable And For offering capacity. put as I an a more in will of sure. volumes us. a much we've terms been us pipeline us recently, mentioned, number position their But that grown we're asking of Now we the incremental customers them. these significant for that also customers nearshore?

Operator

comes next you. today Thank And from our Colicchio Barrington Vincent question with Research.

Vincent Colicchio

curious Carlos, pipeline in versus year-over-year sales, quarter that and or the the it value your in period year-over-year did high is as I'm prior the sales increasing well? mix increase the

Carlos López-Abadía

Thanks, terms you of high anything in or you thinking Yes. verticals, Vincent. growth in are Are thinking particular?

Vincent Colicchio

sales, value talk value than to used in about business margin? sales, of average But nature. terms of High high that you higher that's things automation,

Carlos López-Abadía

well. one services been focus sales. fairly to be moving up part terms Yes. That will, of things is seen traditional the stable. think and margins tends the have that we've -- that We've as and The additional the more I quality, of sales, that in of seen putting on you if even of

the exercises as thought improving seen The by in cetera, about all well, traditional the investors the question cetera. important layoffs et in give because thought asked number and of tech high recently in customers, verticals is us value been -- technology value the high a I et the credentials question positions the asked which on and of in both terms growth I've news I technology, I with terms the high -- margin. We've high press high sales, et sales as with So which us -- of cetera.

Having that, So year-on-year, less on high to companies. from seen the answer to we've take we've terms increased year last quarter. that, those quarter growth on of the said quarter this decrease opportunity within from year in year, a also seen to

So it's a positive trend through that.

way closing which QX, higher sales a that out I We seeing indicates did and the the the despite year in percentage we're the XX% shaping QX, in terms we've in the the on those problem of action lot So terms the it's was not sectors cost of I the these seen on and and see would with took and there pain, already the take news mean if this depending for you coming, XXs in the fact, was of companies. quarter these last XXXX in than we’re the just -- the point world. quarter-to-quarter. but for We QX that tech challenges verticals, and QX. seen uncertainties we actions. year, we The expect but took had decrease XX% in a XX% high XX%, layoffs on a beginning in have QX have in of just get days we we around potentially to we that necessarily high took on the that, XXXX, example, the We early We you've increasing and sales. growth This the year-on-year, thing closed clearly benefits. saw that

in So those of the question, we to compared answer your perhaps announcements. Vincent? were Did sense, that curve tech I ahead high

Vincent Colicchio

one headwind assume currency between for and end, in much if now rates we to would year versus ‘XX you, revenue the ‘XX? how be your Sergio, currency no change And to nominal

Sergio Passos

can It you of please Sorry, repeat? a cut little bit. kind

Vincent Colicchio

help Any for currency your revenue terms looking Yeah, there? ‘XX I'm in versus in the some ‘XX. nominal of estimating headwind help to

Carlos López-Abadía

sales expectations of rate? mean You

Vincent Colicchio

Yeah.

Sergio Passos

that believe saw would on some actually well, We exchange, business the main our make elections we Brazil, -- is that after upsides the in believe that say, do and the we let's XXXX. foreign where

direct Central a more in interest again, much inflation impact control. believe it under makes you in, is comes Bank government is inflation our as lot a well us. it the the another case of new that I because topic are important. hedge is to very side, in aware, the very the As Brazil, In which raised But that early, rates, there’s another

it actually for X. So we compared in XX.X better be this exchange the believe sense, last that foreign government expects In should than be had inflation year, around year would we XXXX. to was that that now that the

So tailwind portion Brazilian headwind the exchange kind be in us rather the for way, maybe in can mainly of a foreign a of business.

Looking it's to but stable. which Euros, a is it's predict. at we hard, -- hard narrow the last headwind But quarter, now more in again, had

that impact. should be could be a us So a we believe slight few that foreign for it next huge year, a tailwind. exchange for think headwind I huge actually mean, not I

Vincent Colicchio

no year I year, So be a impact estimate conservative over would suppose.

Sergio Passos

Yes.

Vincent Colicchio

the the see nine growth was for have it you do then, months to quarter I value the contract months? in the was. XX%, think year And sales Do prior you nine compared number a the to have -- nice of

Sergio Passos

I I it get can it to don’t definitely you. here, but know have if we

Hernan van Waveren

audience. end the What the flow have We year? and question cash from your the expectations of our are for free of another cash

Carlos López-Abadía

For you, Sergio.

Sergio Passos

mentioned, I solid a as for QX -- is us. very quarter very, are We

compared we pace we expect first, QX. that from QX to to to grow EBITDA So QX to the QX same had

one terms is that. negatively QX, in received that's that that hits in Working Remember significantly advances control explained same of of some on of which we QX. had our side CapEx. QX, I but the positive in it positive in QX top capital is QX, that in we So

operating is So on flow overall, cash difference quarter. interest the flow, range and Free million we expect the the had, to $XX because compared $XX flow very we of a free cash small million QX be a in the in cash to in this what way,

range cash million. that between cash in our should of the make flow we million $XX that balance this believe million, $XXX be in and So our free would and range $XX

Operator

you. today from our Palazuelo question comes Thank And DLTV. with Beltran next

Beltran Palazuelo

First confusing it's of a I all, the if get number. bit little

your more prepared XX%. quarter if XX%. Sergio that between and then third was expect XX% it strong And to margins, alluded, remarks I'm think, Carlos, in think I you in XX% conservatively terms wrong, said not I you of

So on the maybe question you do is first expect margin? what

Carlos López-Abadía

sure up that -- recall this Sergio numbers say, well, better. I'm myself, screwed that be to I knows because noticed the I I think on slide. them I I’d But and normally

you that's use. one So the that should probably

Sergio Passos

Yes.

XX%. XX% We to are expecting the range of

Carlos López-Abadía

more trying know be as who or just to don’t I conservative, So important. was it’s

correct. that's So

Beltran Palazuelo

Thank lead also generation the free that It's much. debt net is conservative. to Sergio with cash to conservative those you EBITDA commenting guidance be say, flow was and margins very yearly, let's with to than better

little are more these that constant grasp like course, let's questions do of the volumes you everything In what to budgeting XXXX, new But do know if get contracts let's [indiscernible], do give if or for with let's could then us, next you the a -- may. I of flow cash free it's -- change a I say difficult, sales. our say where year what And and you the is do less you -- for know currency margins Philippines Let's know can see, supposedly in little terms this. know growth. you

Carlos López-Abadía

Yes.

approve can budget. be we see the precise, board what to me to I on meeting Friday, Let have the --

no So know on than approved, until XXXX world But don't is yet. macro budget less don't the probably let we comment specific going you environment, me have have the a From you that I want get in to but that complicated we to there budget XXXX. I something give is because directional. assumptions, own your not are assuming

personally a Brazil I in market terms the think that is top XXXX. line, probably maybe So better of in

got the as I know, an as and behind on, others. happen. wins a that it what's nervous is us. So the has matter people doesn't the of very Bank going taken behind you that's think I think action sometimes election Central about well than Sergio who commented have And business lot Brazilian for And right? earlier uncertainty enemy, to We elections

we in But did it's of it think fortune of not cost Now, cost anticipate. economy the a us for Brazil, good. terms that I

potentially of accelerate and So that, a we said lot a prepare in efficiencies you complicated and year. can structure, way inflation -- next -- uncertainty pain that's in will year good have you uncertainty hey, markets. the year of world that rest other a and and we're interest environment. we make overall business what do the cost decrease And better assuming year Having seeing But of the also and also to for we've than allow best than, see there's are less or this good a Brazil certain situation to out hopefully to taken expect for rates there. for we We that do the the it this not sure already the uncertainty? government

no it expect you revenue we with terms a January we've stronger quite QX we've -- But don't I the year, and for of close the -- very frankly, a again, you many for contract And If But a the a good but seen think terms on that of make how in right? always sales we line, with it sales seen tricky difference sales -- on its or makes know whether December, also couple numbers points could And frankly, because sales. makes strong QX I quite a QX. we’ve seen in difference QX.

expect a best budget important couple definitely at year. the So but beginning, that's better for the us a right, next sales for can the is we all if cost a time, approved. before QX, have I the I structure, the for direction do year we you results recognize better QX and which probably that's the

Beltran Palazuelo

that I the mentioned the or costs three abnormal you or the may, financial last would And question, last five think in if costs maybe XXXX. slide I be financial

your also mention of things do the not is mentioned You hedge majority are the XX, XXXX, stay cost of to of is a if hedged how they the one-off. that that XX principle think -- the I but gets you

So place, XXXX, $XX is million the one-off just there the still on in get that quarter of second to possibility $XX be page on milllion, a put cost, presentation there you in as a that might XX?

Carlos López-Abadía

us can you positives, the XXXX. expect a take didn't we interest the on rapid hit So is clearly such negative growth rate hedge

but forward is rates on, XXXX more. even ‘XX, will principle XXXX cost ‘XX hedge and mean the the the significantly, the the beyond no for assuming of component is We’re which of biggest in

the of perspective, financial regardless, better, of the of significantly that, interest the regardless of expires that the hedge rates cost drops top much CBI, So on from interest rate, component principle but right, decrease our so regardless ‘XX. in

‘XX manage be -- be conservative was I Sergio? after that. I cash to to need things we need in and get and better we correct, Did prudent, So flow

Sergio Passos

The we where based rates I going the have to think -- XXXX, biggest on are the current is Yeah, impact. forward exactly.

further the We to probably again, see interest we're probably of looking onwards. rates year, of using that, are half we which us not considering are that there benefit or are so last scenario may be basically half ranging a scenario the using where XX forward forward going we at for later and down Brazil inflationary rates, But -- rates. go this year, our something the

Carlos López-Abadía

We prepare the are for war. -- it's always better to

that assume we that financial we be So high is rates. situation that regardless for fact of -- very the but cost, XXXX going a significantly know improve XX to

Beltran Palazuelo

Carlos. you, Thank

Just having I totally that, understand.

and I the page QX think when I there's mentioned see just XX, of XX. XX of between you presentation, XX that a positive one-off XX

instead much lower. XX, minus and minus do XX, or XX I I XX of add if for minus XXXX, So it's XX

my there is principle, there's when So in still one-off expectation question an hedge XXXX? than February, matches still a positive the the

Sergio Passos

in lot. exchange is in all details as Yes, changed a foreign take different now a Beltran. offline. are lot, remember in foreign The of that, of the exchange well, that Yes a range you through QX, the The foreign X.X was can we we we thing changes benefit level. exchange But and do.

do the ‘XX. expect So in we we think, the details. offline, can benefits I yes, But take

Carlos López-Abadía

I point. And Yes. think this important an is

rates explanation. and good much understand that's on it’s and you and of clearly are foreign one is put for the -- let me terms in that, a offer you impact, me you understand interest will assumptions analysis the and offer course for own relatively think taken huge very a But has sincerely quite of to interested. I a make and big complex, the exchange is most Unfortunately, took of extensively what and take some analysis But your the of impact anyone variables that less. Sergio our -- business hedge something while, it rates.

in Sergio week, important and and today by in both here and think know of the you that are extensively face-to-face but these the the Spain understand share very anyone, I -- so components. way, are if is I make to impactful happy don’t with offer you So Spain, to course which I to through

that a -- -- anyone So Hernan, be sure interested, make that schedule workshop might we or need

Hernan van Waveren

Beltran. you, Thank

We being such in comparative and on have another Atento’s an competitive advantage keep how is question What from market? you aggressive do our audience.

Carlos López-Abadía

that to are some common more Well, to specific that other – and let things components probably segment. market even more address market But ones. well, level, big at some specific there's the segment me

common board, one in is Atento agility. think across that thing the I is

at the form the of think company I seen the in least you've agility resiliency.

employees -- a hit of from working a them the a employees we have mark the charts essentially bad level we XXXX recovered we In we at me And and impact is in the had big to home. when that we particularly us look, we that at quarter up. close XX months essentially at without at the are that of if serving to ahead recovered a I lot a And This hire independent of to we on And do half analysis not were a we They right, at are capabilities come had their the didn't is it. Last the EBITDA technology was time, you. home. we of quite else. into are and at the and saw We quarter, somebody cyber XXXX doing close year out quarter stronger. you COVID just have We it for XX% do the us that had own. and from would've thing. event. these had I -- infrastructure margin -- proud top the within that this of working we here challenges sites trailing within on are QX, particularly had zero memory frankly, over back we and cyber-attack everybody

work there's into customers. provide translates we with -- to to we is But sites, So, can shows you But there resiliency. the way that think link Hernan, that ability should link. a our I think these we

Atento. the do evolving et very needs, is we're meeting of their cetera, is that cetera, et So one that we all cetera. when needs, terms change, et their across things in things agile of probably And

specific markets, couple me of of terms on a them. In let touch

strong been confidence obvious, clients sales by use give that of -- And very only our rollers. third to leadership to the our market. position We the this year Brazil, has has the Brazil very our not the a but existing in we clients. So been have in new in of way,

in US, spectrum customers by Brazil. that for in in is leader So market best are which we of our to kept U.S. long a fact the the -- continue in opposite the despite secret example, -- the gain In terms the the new shot, we

by platform in the have world. capable manner the most We largest nearshore

the recently a here have we hat. fact agents XX% this I that's top And client that of on other because the as of leg in now provider the government regularly are only tool, -- earlier, the so. us federal provide government the a in Philippines So, US at we congratulated mentioned more can bilingual even

grow I probably that changes it ability customers market, again, our agility to or Atenta. evolve adapt, market is across but gets So think and to resiliency with the something

Hernan van Waveren

you, Carlos. Thank

all any forward This you now may answering have. today's our questions I the website look disconnect further you the find Operator, quarter in today call. XXXX you We presentation. can all you presented investors.atento.com. you thank may concludes remind third for information attending So conference our that in call.

Operator

Thank for you. Thank you presentation. attending today's

You disconnect. may now

Atento (ATTOF) 16 Nov 222022 Q3 Earnings call transcript