Good afternoon, ladies and gentlemen. Welcome to Eletromidia conference call to discuss the results for the first quarter 2022. I would like to share some instructions before we start. Those who require interpretation can click on language interpretation on the globe icon and choose the preferred language, Portuguese or English. The video and deck of this conference call will be available on the company's IR website, ir.eletromidia.com.br and at CVM after the market closes. Please be advised that all participants will be in listen-only on the teleconference during the presentation. We'll start the Q&A session when further instructions will be provided. We inform that forecasts about future events are subject to risks and uncertainties that could cause such expectations not to materialize or to be different from what was expected. These forecasts issue opinions only on the date they are made, and the company is not obliged to update them. Today, with us, we have Mr. Alexandre Guerrero, Chief Executive Officer, and Mr. Ricardo Winandy, Chief Financial Officer and Investor Relations. I would now like to turn the floor over to Mr. Guerrero, who will start the presentation. Please, Mr. Guerrero, you may proceed. Good afternoon, everyone. It is a pleasure to us at Eletromidia to be here to disclose our earnings results the first quarter 2022. Today with me, I'll have Ricardo Winandy. I'm Alexandre Guerrero, CEO of the company. Ricardo Winandy, our financial director and IR director. As an introduction, just to tell you a little bit about our first quarter 2022. It's been a quarter of great advances and great results. Within obviously the seasonality that is the characteristic of the advertising industry, we had a strong sales growth compared to 2021. To bring two examples in this direction, 88% growth vis-à-vis first quarter in 2021 in sales and with great pro forma 93.7% growth. EBITDA margin 181% growth without Ótima and 218% growth with Ótima pro forma. Robust numbers that confirm the resumption of our industry at the beginning of the year, pointing to a year that is very favorable to all our firm industry. We had to deal with the specific challenges as the non-happening of Carnival. Of great importance of high revenue to our industry. This led us to seek alternatives and ways of revenue that are feature of our company that is strong enough to change directions and correct the course in the same quarter. An important point is the arrival of Marcelo Pacheco, our new CSO. That was an open position when I took over as CEO of the company. Marcelo Pacheco has been director of Facebook in Brazil, director of TV Globo. Recently, he was number one of WarnerMedia in Brazil. He arrives at an important moment in our company, which digital transformation has already started. Looking at marketplace, looking at more technical sales with data and urban behavior is increasingly more our routine. We're very happy with the arrival of Pacheco. With that, we close on a major chapter of our new reorganization in the commercial structure of our company. The advertising market starts understanding that it is clear that the concept of one-stop shop. Ricardo, further ahead, will show you the numbers of this development. It's worth highlighting a chapter on the malls. We had a record quarter in terms of growth, reinforcing the thesis of efficiency and purchase, single modeling and sales platform. Another important point is that we continue investing very much in the installation of new screens. Over 2,000 new screens in the first quarter this year. In other words, the installation project that comes from last year, and it continues opening 2022 with the same strength. We've also launched a stock buyback program that we intend to carry out. We understand there is an opportunity to be seized. Possible temporary distortions of prices we have in the market. This morning, we publish the material fact of the stock or share buyback. Speaking a bit about Ótima, which is a major important chapter, we had the closing of Ótima. In the first week of April, Ótima is Eletromidia's, and today we work under the same flag. This with a 100% integrated team, as I mentioned to you since the last conference call. We had a short time window of 30 days ago. We had our earnings results call looking at 2021. The commercial team works under the same flag, always integrated, 100% developing products, commercial models and working for a single company. Looking at Ótima, some important advances. The first one, for a second growth pillar, which is technology. We've already started the digital transformation plan of Ótima and with two clear paths. First, the digital transformation. The DNA is a company that was born on pixel. Over this year, it going to carry out this plan that has started. We want to seize upsides of this plan still this year. Ricardo will later. Well, we should talk about this further ahead. Second point, that this digitization comes with IoT technology. We take a major step in capturing urban behavior, heat map, understanding moving around the cities. All of that combined to our platform brings a new level of sophistication within the sales process. Of course, Eletromidia has a campaign publication format that is very close to digital platforms. With robust digitization of Ótima, we'll be able to carry out also in the streets of São Paulo, something that we carry out on other verticals as buildings, malls, airports, and public transportation on rails. Reinforcing the concept of network effect. Happy to have Ótima here and promoting these transformations. To bring some examples to you of what Ótima means on our platform and looking at the business, growth of additional businesses, some major point of special projects. An important chapter at Eletromidia, we created an area of special projects with the arrival of Ótima. Over 10 people exclusively working in creating, developing, and implementing special projects. These are some examples of initiatives taken this year in some places in Paulista Avenue, other regions. All our new projects start to have this narrative of transformation and taking special projects to the streets of cities. These are some examples of urban interventions that transform not only the cities, but people's journeys. A bit of our belief and our purpose is to not only improve urban experience as to making it more fun, more interactive, and more interesting. On the chapter of street furniture, to give you an update on it, this is the most recent version of our street furniture in Porto Alegre. We've recently signed a contract with the city hall in Porto Alegre. This is the last version that should go to the streets as of August this year. 1,507 new shelters in Porto Alegre. Within the chapter of additional businesses, we announced the first sales of the new sustainable shelters in Porto Alegre. Eletromidia has a great concern regarding the transformation of cities, and the sustainability agenda to our company is a truthful agenda. Therefore, Porto Alegre will receive 75 sustainable shelters, et cetera. Their bank has signed an agreement with us of the 75 first shelters in the city. This is a simulation of what they're going to look like. We've announced this week in Porto Alegre, the installation of such shelters. They are the first sustainable shelters in Brazil. Eletromidia first of mind writing models, algorithms, and future of our industry and what is coming ahead. On the technology platform, second major pillar of transformation in our business, I'm going to share with you some front ends of our Eletromidia Ads. It started in October last year with the acquisition of NoAlvo, it becomes a reality. These are the cuts about the platform in operation. The platform is already operating and working in the MVP format with four major global brands. In the next 30, 45 days, we're going to run campaigns on our technology platform, bring it to the market what we have been promising in the past few months, and what we've been working on, especially in the development, looking at the technology chapter. Another major point looking at technology is the creation of new products. These topics, they converge the technology platform, an inventory that is increasingly digital, reminding you that Eletromidia will have almost 45,000 digital faces. This accounts for almost 80% of all the digital OOH in the country. We launched this week BLAST to better anchor you who were not in the publicity or advertising market it was born digital product created to have high frequency in 100% or majority of major portals in the country with high frequency during one day. We've developed our platform or BLAST. It's running, it's working. It's a product that does not exist in the OOH market, and we bring this novelty to the market. We've launched BLAST this week, an event in the advertising market last Monday. We greatly believe that this kind of initiative that involves technology, interactivity, experiences and special projects not only are going to allow us to scale up our business and will bring the industry of OOH forward to another level and keep on accelerating to a different acceleration and growth rate. These were the main novelties we wanted to share with you that we've been carrying out in the first quarter this year. Well, the fact that the last call was in less than 30 days ago brings us challenges as to what novelties to share with you. I think we've filled this space quite well with great news, with a lot of initiatives taking place on the three major development pillars of growth as well in our company. I'm going to call Ricardo Winandy, who's going to talk about our results and the figures of the first quarter, 2022. Thank you, Guerrero. Good afternoon, everyone. I thank you all very much for your presence and interest in Eletromidia. I'm going to start with the highlights of the period. We've seen the first quarter 2022, continuation of the recovery model that we had last year. Strong revenue growth. This is a continuation of the normalization of our audience, and it makes it increasingly more evident the leadership position, the relevance that the company has gained considering recent investments, both in acquisitions and organic growth that is quite fast and also in technology that has been proven a great lever to attract new advertisers and the increase of average ticket. We closed the quarter with 63200 panels, 45 thousand digital, 7.8 new assets installed or screens installed over the year. We completed with a growth of 88% of revenue, getting to BRL 132 million. In the first quarter, we reflected the loss of first quarter 2021. We've added to the results BRL 21.8 million, closing the quarter with BRL 9.3 million in EBITDA. If we consider the pro forma earnings of the recently acquired company, we get to BRL 25 million EBITDA with 17% margin. We had a generation or operating cash generation quite relevant in the period, BRL 14 million of operating cash generation. If you exclude from this number payment of semiannual interest, BRL 33 million, generated BRL 47.1 million. BRL 5.2. The investments. Continuing with the investment in greater margins, we had 2.2 new screens, totaling 7.8 new faces, 7,200 new screens that are digital. This is a network growth of 6.1% in buildings, especially in residential, we had 27,000 that with digital. Significant growth in streets. We see that it more than doubled our inventory in the past year. We add here 605 new bus shelters in Campinas from the acquisition early this year. We've digitized 25 totems of MOOHB recently acquired. By April, we have 50 digital totems installed in the city. In the second quarter, we still add to this vertical about 4,000 new advertising faces of Ótima. Second semester, we're going to have new bus shelters in the concession in Porto Alegre recently announced. Now with this, we had a total growth of 14%. When we look at digital assets, we see we have a growth of 19%. We continue with a strong revenue growth. We grew by BRL 68 million from BRL 70 million to BRL 132 million. So basically, this is a movement. Well, there is normalization, close to normalization of our revenue. We still ran the quarter with an audience below by 15% when compared to the normalized period, where as Guerrero mentioned, some major events for the OOH market that was postponed or postponed Carnival. When compared to the pro forma period 2019, the last year pre-COVID, we had major growth above 50%. This growth happened in all verticals, strong growth in all verticals. I highlight streets that almost tripled the revenue that we had in 2021, and also the segment of malls with a return of physical retail shopping. Some verticals, such as commercial buildings, for example, they started recovering at the end of the quarter. Even we have a revenue growth of 50% almost in the period. With the revenue performance linked to the debt to the leverage. We have BRL 30 million to our EBITDA margin, from a negative result, 2021 of BRL 11.5 million, to a positive result of BRL 9.3 million in 2022, with an EBITDA margin close to 9%. 28 percentage points compared to the previous year. This margin is given by the growth in the revenue in the verticals and fixed points, and also leverage on the expenses and costs of the company. We've concluded the acquisition of Ótima in April. From the second quarter onwards, we're going to present the results that will be consolidated with this new acquisition in the Eletromidia Group. We have pro forma results, so we have clear impact of the recovery and the operating leverage that is stronger in the street segment. What is clear is the expansion margin once we add assets in these verticals. We had a growth close to 94% of our revenue from net revenue to BRL 75 million to BRL 145 million. We've added in terms of EBITDA, BRL 45.8 million from a negative base of 20.9 to 24.9 million positive with seventy percent EBITDA margin in the first quarter as well. In addition, here we have a slide with a summary of our cash performance. Focusing on operating cash, we've had BRL 34 million in this period. We had a payment, the semester payment of debentures of BRL 63 million. We added BRL 47 million here as a total. On a comparable basis, we've added BRL 52 million to the cash generation. If we take the BRL 47 million divided by EBITDA is 5 x the EBITDA generated. We've also invested over this period, BRL 60 million in CapEx equipment, BRL 32 million in acquisitions, acquisition of Mobi. We have payment of one of the amortization of debentures of BRL 66 million. We closed the quarter with BRL 448 million cash, net debt of BRL 43 million. If we look at our indicator, we have 0.4x compared to 3.1 x the previous year. As Guerrero has introduced the topic this morning, we had a material fact just published on the buyback, share buyback plan that has been announced with a limit of up to BRL 68 million to be executed in 18 months by November 2023. The focus will be both to bring shares to treasury and also to recompose the stock options. With that, I call Guerrero back for his final remarks. Thank you, Ricardo. For us to make our final remarks and start the Q&A, I think it's worth highlighting the strong growth of sales of the first quarter 2022 compared to first quarter 2021. The first test of Eletromidia Ads. We've been talking repeatedly about the development of Eletromidia Ads. We learned that, and that becomes true. Tests are taking place for global brands testing the platform that will briefly be on a large scale on the market, the Brazilian market. 100% of Ótima totally integrated, and the market starts capturing this concept of one-stop shop from closing of Ótima. We started working on the aspect of a single team. Conversations point to a direction that is much more sophisticated and different from what we had been having. Naturally, the market receives value of this acquisition, the new chief sales officer being hired, an important chapter in this process of transformation that is digital that we're going through. The special projects that I've shown some to you today that actually are going to make a great difference in the construction, building of value, and positioning of this company that is already consolidated with Ótima and the streets of São Paulo. We're going to open up for our Q&A session. Myself and Ricardo will be here available to answer the main questions that you may have. Thank you very much. We're going to start now the Q&A session for investors and analysts. Participants may send questions in writing using the Q&A tool, looking at the bottom part of your screen to ask your question. If you click on the button, raise your hand. When your microphone is called, you will have a notification to open your microphone. Wait while we collect the questions. Our first question comes from Mr. Leonardo Olmos from UBS. Mr. Leonardo, your microphone is open. Hello, good afternoon. Can you hear me? Sorry, I had sent it in writing. I have two questions here next to me, if you can. First one is whether you can discuss the dynamics of buildings. There was a slight deceleration in the net ad. We would like to know whether it will be on the same level that we should expect the rest of 2022. The second question is that we've noticed a great improvement in revenue per screen and transportation specifically. Could you discuss whether this came from new advertising contracts or simply an increase in the flow of people that increases the amount charged to advertisers? Within this question, if you can actually tell me more about digitization of the CPTM that you mentioned on your release. Thank you very much. Leo, thank you for your questions. The first one on the growth of buildings. Actually, when we compare with the past quarters, the expansion in the number of screens from 1,500, it was below what we had in the fourth quarters, but there were 1,000 additional screens when we compare to the first quarter previous year. We expect for this year. Well, last year was a year of accelerated growth in this vertical. We made an investment that was quite important that led to great acceleration in terms of relevance in the growth of this network. We continue investing this year in the vertical of buildings at a slightly slower pace than compared to last year, and we're focused on the ads in streets. We had strong investment in digitizing street screens that have a return from our standpoint that is quite fast. In the meantime, we monitor the performance of residential buildings that has been going quite well within a strong adoption of advertisers since 2020. To answer your question on CPTM and adding to Ricardo's vision, we've been trying to bring a lot of quality to the investments that we make on our verticals, and this goes through residential buildings. We have turned them more sophisticated and improving the analysis to be able to grow appropriately. Looking at CPTM, we've practically completed the digitization project, the object of the bid that we won in 2020. Part of this answers your question on growth of sales and transportation, where naturally we start having an offer at CPTM that did not exist in addition to the return of flow of people to these transportation modes. Transportation was very much impacted because of the pandemic, and there is an increase in the flow. More than the flow, there was a quality of investment from the standpoint of advertisers of a brand being willing to be in an environment or not. The two questions are being addressed with the return of the flow, better mood, and a structured offer of the inventory that did not exist at CPTM. Very good. Very clear. Thank you, Ricardo, Guerrero. Greetings. We remind you that if you wish questions, you just have to click on the Q&A field or raise your hand. Our next question comes from the webcast. Thank you. Congratulations on your results. Can you talk a bit more about the digitization of Ótima if the acquisition has effect on the negotiations with advertisers? Thank you for the question. As I said earlier in April, we've concluded, we closed the agreement with Ótima, we acquired it, and we started with a unified sales team. Clearly, we will be able to capture or tap into a lot of synergy looking at the market benefit. Advertisers are very ready for this conversation. Yes, conversations point to this direction. We have some new contracts that yearly that were waiting for the conclusion of the transaction to be able to be signed. They have already been signed. April was an intense month of generation of packages. May should actually show this agenda. The concept of one-stop shop with the acquisition of Ótima makes a lot of sense on the side of agencies and advertisers 'cause it makes the purchasing process easier. Communication, you can respond to business challenges with a single action set on a platform that actually delivers data and metrics. Conversations are interconnected processes, agendas. Everything we've been doing looking at Eletromidia as a technology ends up bringing to this transaction an additional ingredient to be able to support this growth. We already have captured or leveraged good synergies, good businesses where one plus one has been turned into three, in some assets or four even. That's what we've been pursuing in our commercial agenda, generating value to advertisers. We remind you that if you wish to ask questions, you type them on the Q&A field or raise your hand. Our next question is from the webcast. Good afternoon, Alexandre and Ricardo. How do you see the agenda of bids in 2022? It's an important agenda, not only in 2022 but also 2023. We already have in the previous earnings results call where I mentioned that there was six, seven new great capitals to start street furniture tender process or bidding processes. We had two that have been launched. We have two markets in the northeast, Recife, Salvador, with RFPs published of 20 years of concession. We obviously are analyzing along with our team, assessing, and we're going to take part in the process to be able to compete. This agenda continues. There is great opportunity for our industry that moves hand in hand with the development of major cities in Brazil. Whenever a city sees examples, as it happened in Porto Alegre and promote a tender process, it's an opportunity for our industries. We have others at airports. We have been following the agenda in other business verticals. This is one of our growth pillars to have the expansion of core through bidding processes, public and private. Once again, we remind you that if you wish to ask questions, type them on the Q&A field or click on Raise Hand. Wait while we collect more questions. We remind you that if you wish to ask questions, you can type them on the Q&A field, or you can also click on the Raise Hand button on your screens. Since there are no more questions, I'd like to hand over to Mr. Alexandre Guerrero for the final remarks. Mr. Guerrero, you may proceed. Once again, I think the message that we leave with you is a year of a lot of projects being carried out, of putting in practice the main initiatives that we designed last year, looking at the acquisition of Ótima, opening new markets, investment in technology, and additional businesses. We've been going through these three pillars of growth in the company with great discipline, an organized team, and a year in which we clearly see we have a favorable environment for our industry of recovery, of events, the presence of people in the streets, and our industry is directly benefited by this return of this life out-of-home. Thank you for your participation. We are totally available in the next few weeks for individual conversation. Myself, Ricardo, Larissa, it's been a pleasure to share with you our earnings results of the first quarter 2022. Greetings, and I wish you all a very good weekend. Eletromidia's conference call is closed. We appreciate your participation and wish you a great afternoon.
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