Good morning, ladies and gentlemen. Thank you for standing by, and welcome to Oi S.A.'s Conference Call to Discuss the Q2 2021 Result. This event is also being broadcast simultaneously on the internet via webcast, which can be accessed on the company's IR website, www.oi.com.br/ri, together with the respective presentation. We would like to inform that during the company's presentation, all participants will only be able to listen to the call. We will begin the Q&A session, when further instructions will be given. In case you need any assistance during the conference, please request the operator's help by pressing star zero. We also would like to inform that the conference call will be conducted in English by the management of the company, and the conference call in Portuguese will be conducted by a simultaneous translation. We will now turn the conference over to Mr. Rodrigo Abreu, CEO. Please, Mr. Rodrigo, you may proceed. The timing for this quarterly call is interesting, as we have mostly completed several different milestones of our plan, and now we start a new phase, which will be completely focused on execution. We know and emphasize that the company's results are still in transition as we complete the key operations of our transformation. This quarter marks a very important transition for us as well, which is the fact that fiber overtook copper in both revenues and users as our core offer for future growth. This has been a milestone that we have been planning for since we launched the plan a few years back. Now let's take a look at the key figures, starting with page two, which provides some of the highlights of the quarter. On page two, we can see that the operational execution continues unabated, and both residential and SME revenues were back to growth, with some key plan milestones achieved. As has been the case since we launched the new strategy, fiber continues to deliver, and we can see here the total HPs getting to 12 million, new HPs in the Q2 alone of 1.5 million, and the total homes connected getting close to 2.8 million in the quarter, with 366,000 new homes connected in the Q2 2021. This still with a very high average take-up of 24%. In terms of the key numbers for our plan, which are the fiber numbers, they continue to perform extremely well. Even though overall revenues for the company had a small decline, the residential revenues moved up for the first time in many, many years. We see a 3.5% increase YoY in residential revenues. On the SME revenues, we see a 2.6% QoQ growth as well, also pushed by fiber. On the financial side, we turned positive in net profits, but had a decline in EBITDA YoY and a sequential increase, and cash levels continue to be managed to allow for the transition year of 2021. As for plan milestones, we had several significant ones, including the judicial confirmation of the BTG InfraCo proposal, the completion of two important financing rounds, the launch of the V.tal brand, which is the new name of the InfraCo from now on. Finally, as of this week, the signature of the Anatel arbitration term, which is very important for the future of our concession performance. Turning to page three, let's look at the fiber performance details. In fiber, we set new records. In homes passed, we had strong ARPU growth, and we're keeping the pace in homes connected. Pretty much on track in all metrics. On the homes passed, we hit a record quarter, with over 500,000 homes passed per month. This is an absolute record, and it puts us well on track to deliver the long-term guidance, which calls for over 30 million homes passed by 2024, 2025. On the homes connected, we also have continued to present a very high number. In last quarter, the average per month was of 122,000 homes connected. This means that we continue to deliver the highest number of homes connected per month in the entire market, ahead of every competitor in fiber. Just to give you an idea, if we just consider the working days and 12 hours per day, this means one home connected every nine seconds. It's a really impressive number, and we're very proud of that. In fact, we're so proud that we would like to mention that exactly today, this morning, to be more precise, we have just reached the mark of three million homes connected in our customer base. All in all, very strong performance, which continues since we launched the plan and started to make fiber the core of our plan and the focus of our plan from now on. The ARPU also continues to grow, as we can see, and upselling has been an important driver of this ARPU growth. In the Q2, 9.6% of the fiber customer base had speeds over 400 Mb per second, and 16% of the net additions were over 400 Mb per second. This has led the ARPU to grow to BRL 87, which is ahead of the plan when we first announced it. In terms of fiber revenues, Got to the number of BRL 691 million in fiber revenues for the quarter, which puts us at an annualized fiber revenue number of close to BRL 3 billion and growing. Obviously, all of the metrics in fiber are doing extremely well. When we look at the residential market in the next page, including pretty much all of the revenues, we can see the power of the fiber recovery and how it is allowing us to compensate for the fact that structurally, copper and the legacy revenues is set to be in continuous decline. When we announced the focus on fiber, it was just a promise to replace the declining legacy revenues. Two years after announcement of the strategic plan, fiber now overtakes copper and delivers revenue turnaround in the residential segment. We can see that the RGUs, for the first time, we see here that fiber RGUs are already higher than the legacy RGUs, both in voice and in broadband combined. When we look at the residential revenue evolution, we see here that we have been steadily growing and reducing the declines up until last quarter, when we pretty much tied with a zero growth. Now we are back to growth in residential revenue with 3.5% of growth. On the residential revenues, fiber now represents over 50% of all revenues, obviously will keep growing. This, even with a 35% decline on copper revenues, which as I mentioned, is a structural decline. This will continue to happen, now we're more than compensating this decline in copper revenues by the growth in our fiber revenues. The decline of the legacy revenues, we must not forget, is also a factor in B2B, we can see that on the next page. On B2B, Oi Soluções revenues, which are the large corporates, remain stable sequentially, even though with a drop from last year, again, due to the legacy drops. We had some large contract wins with higher IT contents, which will help future periods. On the SME front, revenues were back to growth. The number for Oi Soluções is impacted by both legacy voice and data, while fiber and IT keep growing. An example of the growth in IT solutions and IT revenues is in the security area with a nice 14% growth. As of last quarter, we won one of the largest contracts of the year for public security in the state of Bahia for over BRL 650 million. This has allowed the security numbers to go up almost 15%. On the SME segment, fiber has also helped to push the segment returning to growth with a 17% penetration of fiber. This has been growing steadily. This penetration was only 6% of revenues in last year. On the next page, we can then see our key mobile indicators. Even though mobile has been now classified as discontinued operations due to the sale process, mobile had some positive indicators last quarter, helping us maintain what we call a very good transition path until completion of the sale process. The strong postpaid recovery on both net adds and revenues helped, even though we had prepaid net adds increasing but still impacted in terms of overall revenue growth on prepaid. Revenues were slightly down due to prepaid only while postpaid advanced, and we can see this as we reached the leadership in the share of net adds for postpaid last quarter, ahead of all other operators in Brazil. The recovery also started in net adds for prepaid, even though the revenues were impacted due to smaller top-ups than the previous year, even with this recovery in the number of net adds. Obviously, we expect this recovery to help us through the end of the year, maintaining, again, a very good balance of operations on the mobile numbers up until completion of the sale process. We talked about core and about mobile, but we should also talk about future revenues. In the next page, we can see that the future revenue starts to represent something which is a very good start point for us to achieve what we recently announced in our 2024 guidance. Our guidance points to a 10% of revenues coming from more than connectivity in two to three years. We believe that our existing portfolio allows for a very solid start. It may not be very visible, but we have already over BRL 100 million of revenues in new areas. Some has just been launched or expanded. Based on our extensive list of assets, including customer base, national presence, proprietary field teams, sales networks, and payment capabilities, we see a significant growth ahead of us for the new sources of revenue, which again, we expect to reach BRL 1.5 billion in revenues by 2024. With all of these components, let's now look at the entire revenue picture on the next page eight. On page eight, we see that the new Oi core revenues start to turn around based on the solid fiber and residential performance growing after seven years of decline, and in spite of all the legacy impacts on B2B. Fiber and IT revenues already represent 35% of total, and on the residential side, B2B is stable sequentially, but there's still a huge space for growth in other revenues in addition to the small growth we had on the residential revenues. On the discontinued operations, we have a small decline in mobile and DTH, but those have been now within the range that we have been working with, especially considering that we are now in the transition year for those revenues. Now for OpEx and EBITDA on the next page. We have doubled down on efforts on addressing costs, and our DCO 2.0 program is now in full execution. With this, OpEx remains stable. Savings across all areas have compensated for some of the costs, which are inflation-adjusted, and the higher commercial activity that leads to marketing expansion. The sequential EBITDA margin showed recovery, even though we have a small decline YoY. Again, reductions in the OpEx here occurred in most areas for a total of minus 4%, and we can see this happening across the board, including bad debt, third-party expenses, network maintenance, contingencies, personnel, taxes, and others. The key components that helped compensate on the plus side was the rent and insurance components, in particular for telecom infrastructure, which went up given the inflation adjustments that occurred across the entire H1 of the year. The EBITDA, we have grown our EBITDA margin sequentially and have now got to close to the 30% again. For the cost reduction program, we announced last quarter a cost reduction program. In the next page, we can see the current estimates based on the fact that we already have over BRL 1 billion mapped and starting to be executed in many different fronts, most of them in connection with the simplification we expect for the company following our transitions during 2021. This program, the DCO 2.0, has mapped out over BRL 1 billion in cost reduction in preparation for this lighter company in 2022. It's worth remembering that most changes will be done by year-end due to the current transitions on both the mobile operations and on the infrastructure operations with V.tal, which are two operations that will be deconsolidated from our results by the beginning of next year. When we look at all of the mapped initiatives that we have ongoing, we can see that we have initiatives in pretty much all fronts of the company, sales, marketing, customer care, in reducing the size of our organization and our support activity, in simplifying our IT systems and processes, and obviously in addressing all of the network and operations costs, in particular with the simplification and the decommissioning of elements in our legacy networks for copper. On the next slide, we can see the financing activities, investments, and cash results. With the completion of the financing initiatives for 2021, this allowed for sustained fiber investments during this transition period to be completed with cash-in from strategic M&As by the Q4 this year, Q1 2023. On CapEx, the focus on fiber remains stronger than ever. We should remember that most of these investments will move to V.tal next year. We achieved in the Q2 a metric of 70% of all investments coming from fiber, even though we are still investing 11% of the CapEx in legacy operations such as copper, which obviously, we are striving to reduce given the transition of copper in the legacy businesses in connection with all of the concession activities. On the cash flow, the cash-in for the V.tal debentures and obviously the operations of the quarter brought cash through the end of the quarter to a BRL 3.4 billion level, which is consistent to the levels that we had planned for during 2021. Remembering that for the full picture, it's important to consider that we will have additional cash-ins, both coming from the divestment program as well as from the funding refinancing operation that we have just completed at the beginning of Q3. This will bring us an additional cash-in coming from mobile, coming from InfraCo, coming from the mobile bridge loan, and coming from the refinancing of the bonds that we issued last year. In addition to the operating and financial results, it's also important to talk about the additional milestones achieved, and we can see this on the next page. As of last week, we have announced one important milestone, which was the launch of the V.tal brand. More than just launching the brand for our new infrastructure operation, which will have its control sold to BTG upon completion of all of the regulatory and competitive approvals that we expect by the end of this year. This means and marks the start of an independent operation, so to speak, of the V.tal and InfraCo operations with a separate governance and already operating as a neutral network. This will allow us to make this transition years ahead of time so that when the operation is finally approved and can be closed, we have pretty much everything up and running. Also, as of this week, another very important milestone in our plan took shape, which is the signature of the arbitral term with Anatel. We have to remember that for addressing all of our concession issues, we have two major fronts in addition to all of the operational fronts of reducing costs and simplifying the operation. These two main fronts are, one, working on the migration of the concession to an authorization. This is a process that's still ongoing given the regulatory discussions and definitions that are still going on. An arbitration that the company opened against Anatel, for several issues related to the past of the concession. This arbitration is a key component in addressing the cost and the future of the legacy operation, and comprises four key areas, ranging from the lack of sustainability of the concession to several events that led to financial economic imbalance of the concession, to the balances owed to the PGMU programs in the past years. Finally, for some approvals for investment in regulatory assets that will need to be compensated, given that they're not going to be fully amortized. This arbitration commitment was approved by Anatel's board of directors on August 10th. We expect the signature of the terms to take place between today and tomorrow, and this means that the scope of the arbitration was fully accepted by Anatel, and now the proceedings will be carried out by the CCI Arbitration Chamber following the term signature. The arbitration will also be critical in addressing the migration discussions in a process that we expect will be carried out until the end of 2022 or potentially beginning of 2023. How we're executing this transformation in addition to all of the operational results and milestones achieved is also important. As a last update, let's talk about our ESG commitments and a view on how employee engagement is working around all of our transformation initiatives. On next slide, on slide 13, we can see that the transformation agenda continues to be sustained by renewed ESG commitments and very high employee engagement. On the ESG fronts, we have established a new ESG commission, and we now have objective KPIs monitored company-wide and entering into all the company targets. On 2020, we have published already our annual sustainability report and also the social balance of Oi Futuro, which happens to be our key initiative in terms of the F in our commitments of ESG. Also, we expect with all of our actions, to have an expected improvement in the MSCI ESG ratings in the Q3 2021. Finally, we had the Council for Six Sigma Certification as the first company in Brazil to receive the certification for internal employee program. Pretty much moving forward in all ESG metrics. Especially in how we are engaging the team to transform the company. This quarter brought additional good news. Our engagement research in the transformation of Oi has now two waves of surveys conducted. The last wave was conducted in June with over 6,600 participants, and we have a general satisfaction index of close to 97%. This is one of the highest engagement index in all of the industry in Brazil. As we can see from all of the metrics here, we can see that pretty much all of the pillars of our survey have produced very good results of engagement, including transparency and alignment, respectful and healthy environment, leadership, attitudes for transformation, and agile mindset. For us, the key question that we provided in this wave of research was, "I feel engagement contributing to the transformation," which had an astounding 96.9% number. We have the entire company engaged in delivering what we have promised for our transformation. In closing, on the next slide, we again highlight that this is a transition year, but we highlight that we are hitting all of our key milestones as planned, and now we can dedicate full focus on the execution. We know that there's still several milestones in front of us, in particular on the operational transformation and the cost reduction for the company. We see us focusing entirely on that in anticipation for a substantially transformed company in 2022. We already overcome the challenge of the judicial recovery, the challenge of all of the M&A activities, the structural M&A activities that needed to be conducted. We are overcoming and have closed all of the funding routes and the funding challenges that we had since we entered into the RJ. Now the full focus is on execution and operational improvement while building the new Oi. With that, let's close this first part of the presentation and then move on to the Q&A. Ladies and gentlemen, we'll now begin the Q&A session for investors and analysts. Remember that questions should be asked in English. If you'd like to ask a question via telephone, please dial star one. If at any point your question has been answered, you may remove yourself from the questioning queue by pressing star two. Our first question comes from Marcelo Santos with JP Morgan. Hi. Good morning, good afternoon, actually. Thanks for taking my question. I have two. The first is clarification on the CapEx of V.tal. You mentioned that it's a BRL 30 billion investments into 2025. Does this include past investments or how does that reconcile with the evaluation study, which at least if we sum here the CapEx, it would be around BRL 20 billion? Was this revised? Or I guess that's the first question. The second question is regarding the competitive environment on the deployment of fiber. I wanted to understand if are you overlapping fiber of some of the other competitors, especially larger ISPs, and are they doing that? How is that game taking place? Each player is going to a different region, different cities, and with limited overlap? These are my questions. Thank you, Marcelo. On the CapEx front, no, the BRL 30 billion does not include the past investments. The past investments obviously have been all made by Oi and are part of the past results. The BRL 30 billion actually speaks to several years of high investments to build all the balance to more than 32 million homes passed. In addition, obviously, to other investments that V.tal will plan to make in the future. When we look at the reconciliation with the valuation, obviously, this is a separate discussion because what we have valued so far is the growth potential of the company. We believe that the valuation of the company will increase significantly over the next two to three years. The V.tal numbers, in terms of expected investments, obviously, let's remember that V.tal, once the transaction is closed and BTG takes on the control of the company at the end of this year, we believe, V.tal will be a private company. This doesn't mean any guidance. It means an expectation of investment, and it was based on the starting point of over BRL 20 billion that we have provided, added by additional investments that the company will likely make to address other opportunities in the market as well. If we just look at the overall HP number, the homes passed number, and obviously some of the infrastructure for homes connected as well, these numbers cannot go north of what we're doing currently. If we look at our numbers as a whole, we're talking about over BRL 5 billion in investments already this year for fiber alone. It's, again, just an expectation of investments for V.tal when it becomes private. Obviously, it represents the size of the opportunity that both ourselves and now BTG see in the future for V.tal. As far as the competitive landscape, obviously there is some overlap. We know that, in particular in the largest cities, there is some overlap. Let me tell you that we believe that the overlap is minimized as far as new areas, because obviously we have been always giving preference to areas where there is no fiber builds already. It's inevitable to have some overlaps, in particular in the areas that are the largest cities. What we believe is that there is space for pretty much everybody, and that the overlap overall will be minimal. It tends to be a larger overlap at the beginning, then it tends to die down, especially when we look at the overall number of cities that we expect to cover with fiber. Just the V.tal announcement showed that the potential for number of cities covered with fiber is over 2,000 cities in Brazil. Oi, and by consequence, the current status of V.tal, cover close to 200 cities. There's still a lot of builds to take place. As far as the competition with the large ISPs and the small ISPs, again, we see some overlap existing, particularly with the large ISPs. The small ISPs, the overlap so far has been minimal. In areas where there is this overlap, in particular, we have been emphasizing our superior quality, both of the fiber deployment itself, as well as all of the transmission infrastructure and all of the support infrastructure, including transmission, data, and network management, which is on the backside of that. In particular, in some areas where we see competition directly with the small ISPs, we have been faced with cases where even though, quote-unquote, everybody calls the new deployment fiber, we have been seeing cases where we are competing directly with the extension of Ethernet cables, of a mix of fiber and Ethernternet, of a mix of fiber and copper. There is still ample space for the pure fiber, the 100% fiber deployments to take place. We don't believe this is going to increase substantially in the future, especially because of the fact of launching V.tal. V.tal will be an open, neutral network. It's already operating as a neutral network. As that, we expect that V.tal will also serve ISPs, both large and small, in addition, obviously, to the large key areas. We have taken a measure of that by the recent contracts that V.tal has signed. Obviously, we have some non-disclosure components in all the contracts that V.tal has been signing. Suffice to say that we have been signing contracts with ISPs, and in some cases, including end-to-end deployment of fiber. It's not only for the transmission, it's not only for backbone capacity or backhaul capacity, but it's also for a capacity that goes all the way to the consumer homes. This marks a new mode of operation for the company, and we expect that this will also discourage, in many areas, duplication of fiber, given that we are bringing fiber at a very high quality and at a competitive price, we believe. Yes, again, some overlap, but no, we don't believe that this is going to be an issue in the future. Perfect. Thank you very much. Our next question comes from André Salles with UBS. Hi, all. Good afternoon. Thanks for taking my question here. I have two as well. The first one is on V.tal. How are you guys seeing the current demand from clients other than Oi for V.tal services? The second one is regarding mobile segment and how are you seeing competitive environments on this front? Thank you. Thank you, André. Just to clarify, your first question was on demand? It was kind of hard to hear you. Yeah. It's regarding demand for V.tal services from clients other than Oi. Okay. No. Expanding on what I mentioned already, in connection with the last response, we did see a start of a demand from other carriers, from other client pools, from other ISPs, towards V.tal services for all services, as I mentioned. Not only for transmission and backbone services, but also for FTTH services. We have already closed over 10 contracts with both large and small ISPs across the board. Let's remember that this started to happen even before we launched the brand, even before we announced that the operations are now fully separate from Oi, including a separate governance that makes sure that Oi commercial side doesn't have access to any of the contracts that are taking place with the ISPs or any of the projections that are taking place with the ISPs, making this a truly neutral network operation. Yes, demand has been picking up. In addition to the contracts that we have already signed for FTTH, we also have a lot of contracts for backhaul, backbone capacity, data capacity, and, obviously, we have a number of ISPs that rely on V.tal's infrastructure, in particular for backbone and backhaul. This obviously will continue. We believe that the amount of traffic will only increase and the demand for V.tal's connections and backhaul, backbone will only increase from now on. With that, we have been seeing the commercial traction getting up to speed and actually, we're very confident that this will be the case even more than what is currently happening when we have the company fully separated by the beginning of next year. As far as mobile, the mobile market has been showing a competitive dynamic, which resembles what has been happening in the past. We believe that there is not a super aggressive competition, even though it's a strong competition as has always been the case. We don't believe it has been a predatory competition, that doesn't make sense. It's just a regular competition. Obviously, by our side, what we have been doing is we have been focusing on maintaining the good performance of our postpaid adds in particular to bring in new additional revenue. We have been very successful with that. There was a period at the end of last year in which the performance of net adds dropped following all of the pandemic events. At the end of last year, beginning of this year, we resumed on the very good performance on the net adds for postpaid. Now we're trying to do the same on prepaid. Prepaid has become an area of a very strong competition. Every player has launched aggressive plans. It's, again, not predatory competition, but it's a very aggressive competition. What we have been doing is reformulating some of our plans as well. With that, we have been showing also very interesting, positive moves in net adds of our prepaid in the last quarter in particular. We expect that this can help us move through the end of the year and up to completion of the transaction with a very positive performance. Great. Thank you. Thank you. The next question comes from Marcelo Santos with JP Morgan. Hi. Thanks for the follow-up. Just wanted to ask you, would M&A make sense for V.tal's expansion? Like if you find some interesting networks already deployed, would it make sense, and would this be included in this BRL 30 billion investment? Well, most likely, Marcelo, it would make sense, again, this is an answer that should be provided by the new controlling shareholder when he takes hold of the company at the start of next year. It could make sense. There were some analysis of if this would make sense or not. There is one important aspect that needs to be considered. V.tal will be a neutral company, will be a neutral network company, as such, it will not carry on any activities that touch directly the end customers. This means that the potential M&A for InfraCo would be focused on InfraCo and not necessarily on acquiring homes connected subscribers, so to speak. It may be the case that there is a space for additional compositions, but, obviously, it's something that any company should plan for and analyze the markets to understand if it makes sense to acquire areas or to grow organically. Again, it's something that will need to be analyzed by the new shareholders, and we still have some time to be looking at that in the future. Perfect. Thank you very much. The Q&A session is concluded. I would like to turn the floor back over to the company for the final remarks. Well, thank you again for being with us in our Q2 call. Just highlighting what we have previously mentioned. We believe that this is a very strong transition year for the company. We believe that now the focus is fully on execution. We believe we have achieved all of our milestones. With that, we believe we are on track to the transformation that we have announced to the market a while ago, and we expect it to be completed by the beginning of next year. Lots of work ahead of us, but the company is fully engaged, as you saw from the presentation. The management is fully committed, and obviously, the board is also fully committed. Let's talk again about our progress in the call for next quarter. This concludes Oi S.A.'s conference call. We would like to thank you for your participation, and have a good day.