That's why the pillars that are working sustainability have to do with the core of the business. [Foreign language]. And that's why you see this first- [Foreign language] Build a challenging and attractive workplace. That has to do with sustainability. [Foreign language] Having people who want to work [Foreign language] With Entel and stay here, that is sustainability in itself. [Foreign language] [Foreign language] [Foreign language] The good work. [Foreign language]. And in Telco, we are number one in both countries. [Foreign language]. I would also like to talk about the employee NPS. So employees recommend the workplace, if they recommend Entel as a workplace. [Foreign language] 70% Good workplace. So in Entel, it is close to 70%, and the benchmark of the industry is about 50%. Vamos por buen camino. We believe we are following the right path in terms of this goal that is a key enabler. Y por último- And lastly [Foreign language] Sometimes this is part of the back end, but having an advanced digital architecture is also key. [Foreign language]. Particularly when we think about AI. [Foreign language]. This is also related to the migration to the cloud. Software as a Service to use software as service, because that allows you to stay up-to-date. [Foreign language]. It is also related to the architecture itself, because you separate the back end from the front end. [Foreign language] Basically, the idea is that the business units- [Foreign language] Need to be able to develop IT. Maybe you've seen this in other companies, right? [Foreign language]. It's struggled. Whenever you deploy a new project, it goes back to a waterfall project, and they say, "No, it's going to take six months," or, "No, you know what? We are behind schedule. It's going to take eight." [Foreign language]. If the business doesn't control that, they can have the agility they need in the market. [Foreign language]. In order to do that, we need to do many of the things you see here. [Foreign language]. You also need to change the organization. [Foreign language] And that's why we are organizing the company OKRs and agile sales. [Foreign language] Because that allows us to control- [Foreign language]. Most of our IT spending and also prioritize our spending. [Foreign language] To wrap up- [Foreign language]. These are the goals mentioned before, and my colleagues are going to give you some details about every one of these goals. [Foreign language] It's an ambitious process we are going through. [Foreign language] Basically, to try to summarize it- [Foreign language] We believe that the consolidated CapEx intensity, after a couple of years, should go back to the levels of 2022. [Foreign language]. But we will have an improved RONA, and we will be capturing the home business in Chile and Peru over nationwide networks. [Foreign language]. If we compare where we were three years ago and where we will be three years from now, we believe that jump is going to be relevant, and we will be able to produce cash flow. And that's it. Thank you very much. [Foreign language]. Thank you so much, Antonio. [Foreign language]. You heard about our strategy, our strategic goals for the next four to five years. We want to continue leading the mobile business in Chile, continue growing in Peru, deploy our fiber business both in Chile and Peru, and also continue moving forward with connectivity in our B2B market. Everything, of course, thinking about financial sustainability and also pioneering innovation in our industry. Now, we're going to hear about our finance. We're going to listen to Marcelo Bermudez, our CFO, and then we're going to hear more about each of the markets, sustainability and innovation. Marcelo, please, the floor is yours. Thank you. Thank you so much, Paula. Good morning, everyone. It's nice to see you all, these familiar faces. Thank you, Antonio. I think it was a great introduction. So I'm going to go through the details. We're going to talk about the context of the industry, because I think that's important to give you some general ideas about what we are expecting, what we've been going through in the past few years. That's a relevant factor to consider, the current situation of the company and the industry in terms of finance. We're going to have a snapshot of the main indicators. There's something Antonio mentioned as well, how important it is to have an operational efficiency program in operational costs and CapEx as well. We are also going to be talking about CapEx, our expectations for this year, for the midterm, and we are also going to talk about how much goes into mobile, and the fixed business, both in Chile and Peru, how that's related to cash flow, and finally, provide you with a general idea of the financial indicators. With that, I hope you can have a more clear idea of what's coming. As I said before, there are many things that are impacting the industry. They have been impacting the industry in the past few years. There are some more recent events. I think growth in Chile and Peru has been low, considering our customer base, the number of lines, internet connections, etc. That has had an impact in our revenue growth. We're going to talk about that. It's been kind of flat, I would say, and if we don't see any relevant changes in these economic growth rates, it's difficult for the industry to benefit from it. We are at a good standing to make use of the growth that is available there, and we've proven that. Talking about the cost structure, of course, there is an impact of inflation. We've been experiencing that in the past few years. That's decreasing now. We're going to have inflation levels that have more to do with the expectations of central banks, both in Chile and Peru. But we've seen an impact there, and on top of inflation, of course, something related to that is the increase in the volatility of the exchange rate. We have many relevant contracts for IT, for networks, that are dollar-indexed. Of course, we see the impact from the point of view of inflation, but also from the exchange rate and its volatility. We are going to be talking about that in more detail, too. Some news, some things we need to take into consideration: the consolidation of the industry. We see here an evolution, a shift. We are going to talk about this in more detail, talking about the number of operators in Latin America, but also in more advanced economies or developed economies. How the two operators... We have some recent examples from Brazil, for example, Oi merged with TIM, Vivo, and Claro. Another recent example, the merger of Millicom and Telefonica Colombia. These are some news in the industry, and we are going to be analyzing its impact in the industry for the short term. I was talking about growth rates. Of course, if we look at what's been going on in the past few years because of COVID-19 and other factors, we've seen low, even negative growth rates. Peru and Chile were growing even under the average for Latin America. But in Chile, we also had a growth in population around 1% or 1.5%. We see evidence of a poor economic growth. We expect some growth for 2025, but we are still around 2.5%, which is not quite positive, but that's the reality we are facing today. That's why it's important to capture more of that growth, and that's one of our main focus. I told you, in the last three or four years, we see inflation rates in both countries that are very high, therefore, exchange rates that are also growing, apart from the volatility. We expect to have a less inflationary effect, but we will experience probably volatility in the exchange rate. That is an important part of the impacts that we have, financial impact that we have had in recent years. As I said before, there are some examples of changes or advances or shift of the industry consolidation. We put some Latin America cases there. As you can see, Peru and Chile have four operators, the rest have three, and there could be a change into two. The average of the O ECD is 3.2 operators. by country. This is something that will generate probably a change or not, and we will see that, but it's part of the potential impacts on the industry. Having said that, just to go through very briefly this chart, you've some of you have seen this, but these are numbers that are not updated yet. This is the LTM as at June. In general terms, you can see that we are around $2,687 billion CLP. This is equivalent to almost $2, it's almost $2.6 billion, and a growth of 4.6% regarding the LTM of 2023 in comparable terms. We are showing a growth, a top-line growth. Just to remember that we are touching twenty million customers in both countries, ten and ten, and a consolidated EBITDA of around eight hundred and twenty-five billion pesos. Growing, yes, in terms of the previous activity, we have a rate of almost 13%. When we do the adjustment due to the extraordinary actions for assets or one-time events, the cost is a little bit low, but that's the EBITDA of 30.7%. We have been growing the EBITDA in this fashion, with net profits of LTM of thirty-seven billion. Then we have the breakdown here on the side, and Peru represents 33% of the consolidated sales, almost 30% of the EBITDA. Chile has sustained its... And that change, you can see them in the share numbers. Chile with a margin of EBITDA of 8%, and Peru growing, and it's already in 26.2%. Antonio was mentioning the objective that we have in getting closer in time to something close to 30%, a scaled growth. Those are the numbers, and then we have market cap. Probably, you know this by heart. We are close to the billion, a little bit less than that, but with a dividend yield of 7.5%. We will check the evolution that we have had in terms of returns and regarding the benchmark of the market, and P/E of 10.9%. Now, in terms of revenue, at the consolidated level, what I wanted to highlight here is that despite what I showed you before, which is a complicated industry in terms of growth that is challenged, at least we have been able to sustain growth rates that are quite interesting. The 2022/2023 comparison has some extraordinaries. If we take the extraordinary out at the service level, it is growing 2.2%, and there was growth in 2023 in the terminals or the handsets, and a growth in fixed. But this year, when we're looking at the first semester, regarding the first semester of last year, we see 9.2% in the consolidated income, highlighting a relevant growth in terminals, 16%, and services with a growth close to 6%. So we see a positive trend. At the right-hand side, that graph, what it wants to highlight is, the way I see it, is where is the growth potential. We separated here, we have the B2C in the first column and then the B2B business by country, Chile and Peru. If you see in general, B2C, what's in blue is everything that is related to mobile, and that represents most of the income. But in fixed, in Chile, is 9%, and the idea is that with the expansion that we are accelerating in fixed, especially in fiber, we expect it to grow. In Peru, it should happen with a little bit of delay, but something similar should happen. Very relevant, in the B2B column, we have the potential of Peru, not only growing in fixed in B2B, but also in its relevance in terms of total income. In Peru, we do see an opportunity, not only in mobile, not only in investing there and growing, but also in the B2B business. That will give us the scale that Antonio was talking about, that will allow us to increase the margin. That would be a summary. Far, it's good news. When we go see the EBITDA, it's relevant to mention basically that if you see the annual figures and leaving out all the extraordinary ones, we have an EBITDA that is relatively flat, and even with some drops like the sale of assets, the sale of assets in 2023 impacted us very well in the selling of fiber in Chile, but we see an evolution. This green line is a reform of the EBITDA margin, leaving outside all of the extraordinaries. Even though the margins are less than 2021, there are effects of rental or lease and exchange rate, but with stability and even growing in margin. In the semester, we see that we are in levels similar to 2023, with a little bit of growth in the EBITDA and with margins that are relatively sustained in around 30%. So we see not much growth in the top line, but we see a little bit of growth in the EBITDA and with stable margins. When we analyze at the right-hand side, this is basically what we have here, it's a bridge. We compare the first semester of 2023 with the first semester of 2024, but adjusting it to make it comparable. This gray column, that's where we extract all of the extraordinary effects that make me worsen the EBITDA, and we take it. The first semester EBITDA is basically the normalized one, the one of the business. When I compare the first semester of 2023 with the first semester of 2024, in the same comparison basis and recurring, we can see that at the business level, it's this green column with a positive effect of $35 million. That indicates that we have had a solid business expansion, explained by a better growth in services margins in Peru. It hits us positively in the best returns due to the terminals in Chile by comparing it with the semester. Those are good news because it's the core of the business that is growing in the EBITDA generation. This is a program that we have talked about before. We are already seeing the positive results of our program that we call the Entel Plus Reloaded, which are our OpEx and a little bit of CapEx improvements, and that in the first semester generated $13 million, more or less, of impact. On the other hand, we also have some effects that are against us, like the exchange rate and the rentals. Here we have the net effects, like greater rentals of sites due to the expansion of the network, especially the 5G one. We have costs of energy and power that affect us in $9 billion. This Entel Reload is being generating, and the effect will be much more than that, and even more so in 2025. That will allow us to mitigate a few effects that have come to stay, the effect of the rental, for example, but we expect that the inflationary and exchange rate impacts will help us to do hedging and where we can maybe transfer that risk to prices, and so we can decrease the risk and generate an expansion that is permanent and consistent of the EBITDA. As I was telling you, I think it's important to talk about efficiencies. This is a very relevant program. If you take a look at this chart, we are putting... This is consolidated, but we're putting this main expense lines and how they have evolved in terms of income. As you can see here, there are six growth points regarding the income for these main lines of spend. So we wanted to highlight two. One is energy, and the other one is site leases. As you can see, between these two subaccounts of the total, there is an increase, semester to semester, of 2.4 percentage points. These are greater costs, structural costs, and that obviously are impacting the EBITDA. So we initiated at the end of 2023 an action plan involving cross-cuttingly, Chile and Peru, but all of the operational areas, administration, business areas, and the different businesses. This is generating very good results. Now, why is this important? Because we have various challenges. First- ` tags Please share the transcript you'd like me to clean, and I'll provide a meticulously cleaned version following your detailed instructions That we have done price adjustments, but it's challenging to reflect this increase of cost, the pass-through of cost. That is complex due to the competition condition of the industry. We have done adjustment, but due to the inflationary effects, we're a little bit lagging behind. As Antonio was mentioning, we need to generate the resources to support a temporary expansion of the CapEx. We're talking about all of the development of fiber connections and some additional effort, especially in Peru, on the side of 5G. Our goal is to be in the top quartile of efficiencies, both in Chile and Peru, in terms of the international benchmarks. The good news, and I put that in yellow font, is that this plan, Entel Plus reloaded, has the expectation to generate between $80 million and $120 million in the run rate between OpEx and CapEx. Mostly OpEx, but there is some CapEx, too. This is cross-cutting. The idea is to reinvent ourselves and to have initiatives, and we will tell you later on how we are redesigning process and smart CapEx also as a part of the investment control. As I said, it's more than 300 initiatives, and we expect that this year, of the $15 million that was generated in June, this will be accelerated and creating an impact in the year of $40 million. As we saw in the first semester, it was not noticeable because it was absorbing cost effects. At the end of the year, $40 million really start to mitigate the effect. Our expectation is that the expected impact will be fully seen, or at least a large part of the run rate will be seen from 2025 onwards. We expect this program, due to the cost situation, to be accretive, so it increases and improves the margins as of 2025. The good news is that it is in a good path. CapEx. This is a chapter that is quite relevant, and Antonio spoke about this, and what are the areas where we are moving, but it's relevant to understand the technological cycle and how it ties up with the investment cycle and the cash flow, net cash flow or the CapEx. This is an evolution of Entel Chile. This is the EBITDA after the leases, without considering the home business, basically mobile plus others, everything that is not home. As you can see, during this period of four years, where there was the deployment of 4G, this is the history, we had a tight cash flow. This is the EBITDA less CapEx, the net investment CapEx. The company was quite tight here, but as you can see, it was followed by seven years where it got relaxed. There was a better cash flow, even in a competitive dynamic, stressed out in those years. This is a transitory effect, and we had this period where we were doing better financially, so this was transferred into prices, into margins, and it limited the impact. As of 2021, when we started the 5G deployment, we saw a similar cycle. There is a drop in the investment level, so the free cash flow after CapEx, and now we are here. I would like to connect this with the topic I'm going to cover now, because our message is that this is temporary. What's happening now is that with the natural evolution of the mobile business, we're adding to that this reinforcement of the investment in 5G in Peru and our growth in fiber connections in both countries. So when we compare, we need to take into consideration those two investment lines. In my opinion, this is important. The idea is for this to be quite clear, because when we look at our CapEx in Chile and Peru, basically what we are... This is a comparison, this is comparing 2023 with estimated figures for 2024. Please see here that when we think about total CapEx versus revenues in Chile, where the levels are similar than what we had the previous year, according to our statistics, Chile was actually doing... It was going up, and now it's stable around these figures. But when you look at mobile, when it comes to revenue, you see that it's going down as of this year. Of course, this has to do with the dynamic of competition, and that's why we've been managing our investments here in Chile. But this is not necessarily sustainable in the short term, but at least this year, we see better results. Peru is different. We had investment rates about 13% or 14%, which are quite low. So what we are doing now is bringing Peru to more normal average rates for the industry, because they're going through a growth period with the deployment of the 5G as well. So this is our, these are our estimates for this year. We expect some growth of about four points and a little more, and that's basically the growth we expect for the mobile business. It's part of our expectations that fiber will also grow. In general terms, if you see our expectations globally for this year, we expect to be at about 19.7% of revenue here. That figure shouldn't be the same in the next two years. I think we could go back to the levels of 2021 in consolidated terms. We were around 28%, 2021. This is a number we are comfortable with, and it's also transitory. In mobile, we see similar levels to 2023. Probably, it's going to grow a little because of the situation in Peru. My key takeaway here is that after this cycle, when we are combining investment in the mobile business, focusing on Peru and maintaining Chile, of course, and the growth of the fiber business in both countries represent about three points of our revenue. Because of that, once this cycle ends, this cycle with mobile Peru, probably our CapEx for the fixed business in both Chile and Peru will be stable through time. It's going to stay at a certain level. Probably, we'll see a convergence in figures around 18.5% or 19% of our consolidated revenue. Those are our expectations for 2027, and it's not so different than what we have in 2021. That was before the deployment of 5G an d the growth of the net growth in fiber. So we expect convergence at similar levels. Of course, that also has an impact because this investment rate will be... This will mean that we will have higher revenue in fiber in Chile and Peru, and we will also have a better network position in Peru that we don't have today, so that will also have a positive impact on our revenue. Again, we are going to be around the same levels of CapEx over revenue that we had in 2021 with our robust network, and so with better RONA than what we have today. That's my key message for you today. I would like to go through cash flow very quickly. These are the consolidated figures of the first half of 2024, the comparison with 2023. Because of the sale of fiber last year and the accumulation of the cash flow, we started with positive figures at about $680 million. Thanks to this positive EBITDA, we were able to fund investments, relevant investment at similar levels than the previous semester. We paid our dividends, and we reduced our debt. Our cash flow is quite sound now. What are our expectations? This free cash flow operation, that's slightly negative, but if we do some adjustments, it's going to be positive. Although we don't have much room there, much wiggle room, we believe it's going to be positive. We've been using some part of that cash we had available. In October, we're going to pay the last amortization of the 2024 bonds, and with other we're going to reduce our debt level in about CLP 180 million. The company is getting rid of this debt, and we are growing at the same time, so our cash flow is going to be sound, about CLP 200 billion by the end of the year. That provides us with enough wiggle room to cover our CapEx for the next two years. That's to continue with our growth in fiber, but we will see positive return levels for our shareholders, particularly for dividend yield. Very quickly, this is our consolidated net financial debt, which is stable. That has allowed us to be comfortable with our finances, sustain our investment rate at a positive number, solid, strong. But our goal now is to sustain these levels of debt and EBITDA. We are comfortable with figures about around 2.4, 2.7. It could improve, but because of some extraordinary transactions. These levels should remain stable. That means we have enough cash flow for that, and we are getting rid of some debt. This is the dividend yield, the evolution over the years. Of course, there was a huge impact of those assets that we sold. Now it's more stable, around 7.5%, and this is the key takeaway. This is some benchmarking with other companies that have publicly available information. Of course, this includes TSR and variations in the price of the stock. So here, for 2021 to 2024, as you can see here, Entel was at 5.1%, which means it's over the average. This is a positive return in this range compared to other companies that are quite relevant globally, that are seeing negative numbers, and this is our target yield. Our idea is to have a dividend yield of 10% annually. But I'm comparing this with TSR. That includes dividend yield and variations on the price of the stock. That's our goal, and in order to achieve that goal, we need to implement this investment plan I talked about and the strategic view Antonio talked about. Some final comments. This is a summary. I would like to say we already talked about investments in Peru and Chile. I would also like to talk about CapEx, that our goal is to sustain the best network, because that's a strategic pillar for our work, and we have to improve our presence in Lima and other areas of Peru, having the best network. And convergence to our CapEx over revenue for 2027, that's around 19.7% or around 19%. Keep reducing those efficiencies in costs, and we hope to see the results of that as of 2025. We are also comfortable with a sound financial position, with a cash flow that's slightly positive. I mean, it's tight, but positive. We would like to have that stable balance between debt and finance to have a better return for our shareholders. That should be around 10% annually. That's all I wanted to share with you. Thank you very much. Thank you so much, Marcelo. Of course, there's a relevant challenge ahead, and we are always focusing on having the best network, be efficient in cost, and having a positive return for our shareholders. Now we're going to listen to José Luis Poch, our VP of Corporate B2C, but first, we're going to watch a brief video. This year has been a year of enormous challenges, but also of great achievements. We have built a solid and consistent brand that has allowed us to reinforce our leadership in the market, demonstrating that when we have a common purpose, the teams build under a single challenge. when we have a common purpose, the teams build under a single challenge. Proud to be recognized for having the best network in the country, as demonstrated in the main rankings. This is the result of continuous investment in quality and technology, as we understand that the connection goes beyond data and calls; it is about facilitating people's daily lives. This vision allowed us to be one of the seven companies in the world that reached an agreement with Starlink to bring internet to corners where it was previously unthinkable. In fiber optics, we expanded our network, ensuring that more and more homes can enjoy a reliable, stable, and fast connection with the best daily experience. In 2024, we increased our revenue by 30% and improved the offer for the industry. In the mobile segment, we have consistently increased our share of the total market revenue, growing five points in the last five years. True to our promise of being in everything, we have built a unique benefits club, delivering surprising experiences that have allowed us to build a loyal cross-sectional community to the brand. Today we celebrate 60 years, 60 years of future with history. Entel, with you in everything. Hola, hola. Buenos días. Hi, good morning, everyone. So I'm going to tell you about the mobile business- Our prospects for the future in our expansion in the fiber business. First, the first message talking about the mobile business, the business is not growing. I mean, it's quite flat in nominal terms. What we do see is that Entel has been gaining market share. We went up from 34.8% to 40.8%, so we've been growing five points since 2020. You see there Entel's growth compared to the industry. In terms of service, we have grown three times the industry. The industry is growing 1.4%, Entel 4.2%, and in total revenue, and total revenue, Entel has grown 5.9%, and the industry 2.3%. Of course, it's basically flat, but Entel has been able to grow based on its market share, and that has to do with the competitive advantages of the company. This is basically to show you how we've been growing in terms of service revenue and how Entel is growing, although the industry is not. For handsets, we have something similar, about 43%, both in terms of service and handsets. I did the following exercise here. I would like to show you how has been the accrued growth of Entel in the blue color, of the industry in red, and the rest of the industry without including Entel. From 2018 to 2024, the accrued nominal growth of Entel has been 42%, the industry is 15.3%, and the rest of the industry 1.4%, which is flat. When you adjust this for inflation, the industry has not been able to adjust inflation. In fact, in real terms, the industry has decreased 17%. Entel has grown 10.1%, and the rest of the industry, -30.8%. So we have got these extra gap points, and I insist on the competitive advantage, which is what a company must dedicate to. So the question is: Why has this happened? Why Entel has this advantage over its competitors in a very challenged industry? Antonio had shown the ARPU. In 2019, we had an ARPU of $8,900 pesos, and today is $8,600. When you put the inflation here, we haven't been keeping the ARPU, the actual ARPU, but the rest of the industry has had drops that are quite significant. The premium of the ARPU is 45%. You get the industry's ARPU in relation to the Entel ARPU is 40%, which is a huge advantage. Other advantage has to do with the loyalty or churn rates. Entel has half the churn of the industry, so if you get one that has 45%, an industry that has 45% more ARPU. And the churn rate is quite different. This is obviously supported on a brand, and here we see the NPS of Entel, NPS of Entel that has an advantage of 35 points of NPS. And in brand, we also have 10 points with Eseguro. So we have a very solid position, and this is the profile of the customers from the various companies. Now, if you take operator four and operator five, basically, these are price operators. Number three also has preference that comes by prices, and Entel has strong differentiation, where the weight of the price is much less than in the other companies. That's why the ARPU premium is... That's why we have it. Now, what I wanted to tell you about the OIBDA mobile, that the rest of the industry is close to zero. But we are capable of having an OIBDA that has 12%- 14% points of advantage in relation to the industry. That, from the point of view of how the competitive advantage is reflected, and that's so good. That says how this industry will evolve, well, that is still to see, but I insist that we should still keep on developing our advantages. So what has been occurring in this challenged industry? Firstly, the evolution of the entry prices. In 2022, the entry prices, most of the companies were CLP 7,000- CLP 8,000, and Entel was CLP 10,000, and that amount has increased 22%. Today, it's CLP 12,900, and the one that has remained below is CLP 8,900, but all of them have tended to adjust their prices because of the costs increases. This is a slide that I think is so good. This is the revenue walk. This is how much we're capable of increasing the fixed rate, which is where 85% to 90% of the mobile businesses on average every month. So today, in the second quarter of 2024, we have been able to add recurring expenses on the average CLP 128 million. We do the average of the first and second quarters and the rest of the year, that gives you organic growth of services income of 5% to 6% without considering price increases. We had a price increase that we applied in July of this year that add another CLP 1.8 million, that add more percentage also. If we continue as we have as we were in the first semester, plus the price increases, it has is 1.8%. I'm talking about services. In 2023, we didn't have that. Actually, the revenue walk was negative because we increased prices and had a big competitive impact at that moment. But today, we already increased prices in July, and the impact has been very little in relation to last year. We see very optimistically what our growth could be in the future. Here we have Entel. Entel's competitors are basically with negative growth. WOM is in Chapter 11. I think we can get new income from the industry, and we have already done that. The post-payment customers, we have gotten 89%. In the semester, we have one percentage point of revenue share, and also the organic growth. We are seeing that we are getting and grabbing the opportunities in this challenged industry. That is a brief summary. We have in the mobile business, we have competitive advantage that makes us sustainable in an industry that is really challenged in fixed. Fixed is a different story for Entel because we don't dominate here, but the service level in the home world is decreasing in nominal terms, and the amount of customers doesn't grow very much. So why is this happening? You can see in the bars, you see the amount of home passes that every operator has. Here we have Entel. Antonio showed it was four, but at the end of June, this is at the second quarter, we had 3.6 million home passes. And you see all the competitors here, and the bubble on top is how many operators. If I stop in a home, and I see how many companies offer services. In services. In Entel's past, there's 5.3 competitors, including Entel, and so on and so forth. Today, as you can see, there are five offers per fiber home. This is a huge competitive environment and has made the prices go up in the home segment. What's good is that here we have a lot that we can do. What has happened in Entel is that the fiber connections here, we have 7% market share. But what I want to show you is that we increased 1.2 points in the first semester in market share. We're earning 1.2% per semester. But if I get the last quarter, that has to do with when we have the availability of the four million home passes, more or less, we are growing 1% of market share per quarter. Today, we're not even in the maximum potential. This shows the monthly average of net growth in terms of customers. The second quarter, we grew twelve thousand six hundred, that when we added the other next home passes and when we changed scale. So we still have many details to improve in the channels and operation, and that number we think will get to sixteen thousand customers per month that we will be able to grow. And that is taking on one... A little bit more than one point per quarter. So that's how we can get to twenty or twenty-five points that we need to have. Otra cosa que llama la atención es el tremendo poder de marca que tiene Entel, porque en el negocio fijo, que nosotros tenemos solamente un 7%, la potencia de marca somos el líder. Tenemos Tenemos 18.8 puntos, estamos en el número dos. [Foreign language] In mobile today, we have a huge premium, and we want to do it and transfer that capacity to the fixed world. Here we have the customers that have fixed and mobile, that we call convergent. Basically, these are customers that have both services. We have a premium of one point between the customers that are convergent and those that are not. Another thing, and I don't show it here, is that despite we are very new in the business, we have a churn premium that we expect to increase. As in the closing of 2023, 51% of our fixed customers had mobile services. Today, it's 54%, so in a semester, we advanced three points. This clearly shows the strategy that we are doing in the go-to-market of the home business world. What are the things that we will use in the business to make a difference? First, we are convinced that in terms of operations, in how you do the installation and how we do the physical post-sales and homes, we have a huge opportunity in that the market is very much focused on the T for Q and doing things quickly. So I think we have an opportunity to do things better. Remember that Antonio showed that 65% of the failures came from the part that comes from... We need failures came from the part that comes from... We need to support the mobile assets in our huge client base and also in the brand power and channels that we have. Another important point is that because we were a small-scale operator in the home world, we had a TV platform that was not enough for what Entel needed. Now we're escalating into other dimensions, and Entel and Peru are going into a world-class platform, and the work that the Entel team needs to do to make a difference. I would like to give you a message that reflects very well how we want to transform the home business. If I get the indicators that Entel has today of return rates of 2.5% or less, and I have all the cost structure that, taking it to a net present value, is the same one as the income. So So today, Entel in the business, fixed business model, is returning capital, if the parameters that we have remain in time. 20% of the cost has to do with things that the churn brings, like recovering more customers and install more customers to maintain the base. In this business model, that is the one at your left, we return the WACC, and we should get to an EBITDA level of 20%, 21%, or less in four years. And the EBITDA minus CapEx would be more or less 5.3% in that business model. What we're aiming at in the What we're aiming at in the premium is the churn, and the transfer from 2.5% to 2.5%. And the additional value that we have is 7.8%. That 7.8% 7.8%. That 7.8% is for having less churn, means 8% return points. means 8% return points. Instead of returning WACC, we would have WACC. The EBITDA margin doesn't change much, 22.3%, because remember that here when one compares it with a fixed line, the fixed line in general, traditional, let's say, doesn't pay for the network. Here it is included in OpEx, the cost of the access network. EBITDA minus CapEx changes to $12.9 million. That is a very relevant change. To make it simple, in the fixed, we're going to try to do what we have done in mobile to create competitive advantages, and that reflects very well in the loyalty of the customers. [Foreign language] In an industry that's quite challenging, we are going to see how the industry adapts, because there are many operators that are not sustainable. Entel is the only one that has a level of return that makes it sustainable. We should take advantage of the opportunity of this challenged market and continue our work based on the quality of our service, of our network, and the profile of our consumers. In the fiber business, this is going to be very competitive, very challenging. Here, we are building all the assets Entel needs, as it did with the mobile business. It's going to be quite relevant. The field force of excellence, service stability, and home networking, home networking, and everything related to service in the different channels. That's what I wanted to share with you this morning. Thank you very much. Thank you so much, José Luis. That's a great story about our leadership position in the mobile business and important goals for our fiber business. Now, we're going to continue with Alexis Licci, our CEO from Entel Peru. Welcome. Thank you so much, Paula. Good morning, and thanks everyone joining us here and those who are joined remotely. I would like to tell you about Entel Peru. Been in Peru for ten years. It's been a ten-year journey. I'm going to give you a brief summary of our history, our performance, and our opportunities too. For these first ten years, I'm going to share a video with you that summarizes our work in the Peruvian market. That's a summary of what we've been doing. Now I'm going to tell you about our results. Of course, I have to tell you about what we became. We reached a market that needed more competition. Peruvians needed better service. There were many opportunities there, and we took them. That's why we're well-positioned in the market. This is our growth in revenue share, over 19 points in these ten years, so practically two points a year. Of course, that means a lot of effort, but makes us the second-largest mobile operator in Peru, which is not the case here in Chile. We became number two, and we see two clear stages. In the first five years, we worked strongly in growing and getting scale. During our second phase, we are still growing, but at a lower scale and focusing on the profitability of what we do to continue to grow strongly. This higher profitability we've been searching for, of course, is clear in our EBITDA ratio, in our revenue. As you saw before, the first half of the year ends with us 26.4% of EBITDA over revenue, which makes us the second-largest telco in terms of EBITDA in Peru. We have the second-largest EBITDA for the first half of 2024. In terms of investment, they have been contained. We have been quite efficient in our growth, and this year we are also investing some more. Of course, we expect to have a lower number by the end of the year, but we are continuing with our investment to improve our mobile network in some areas of Peru, also in Lima, and also with our... We are starting our 5G deployment. Last year and this year, we've been working on something else as well. We have a positive cash flow for operations, which is quite good. Antonio talked about this. Briefly, we've been growing in terms of share in EBITDA. In terms of what the group produces, we represent about a third of the group, and we expect to continue to grow. These two stages are quite clear: the growth stage with the launch and a lot of energy, and then focusing on profitability. We see that now we are ready because of our efficiency to accelerate our growth once again. That's why we are investing, but we're also doing many things that are producing results. We have implemented 136 new express stores. We want to have more because we can get to more places. We've been growing 25% in postpaid sales for the second quarter of 2023, and for the third quarter, we've seen the largest increase in customers. We're doing well. We are happy. The strategy is working. What are our opportunities to grow? Of course, we see there's an opportunity in the mobile market, which is still growing or developing, and we can grow there. We can come closer to the leader, maybe become number one, of course, with the necessary improvements to our network, the opportunity to start our work in fiber, and also our unique and valuable brand, which is quite powerful. I'm going to tell you a little more about that. I'm not going to talk about this in detail, my colleague will. There's an opportunity in the B2B business because of the launch of Entel Digital or Digital Entel. I think in Peru, we have many opportunities we can take. Opportunities in the mobile market. I'm going to tell you about three different things. Why do we still have an opportunity there, even though we are number two? Because when we focus on our brand power, we see a three percentage point lead of our main competitor. Here, Chile has a nine percentage point difference from the second place, so we are closer to the leader compared to the situation here in Chile. Talking about NPS, customer satisfaction, you also saw that on the video, we've been receiving many awards. So this NPS, there's a difference of 22% from the average of the industry in Chile is higher. But we are number one, which is also relevant because that gives us more strength. Talking about the port out rate in Peru is higher than revolving, so we are not number one, but it's basically a tie with the leader, with the lowest port out ratio, and we're doing better than the average of the industry. This means there are opportunities for growth. How do we do this? Of course, we need to continue to expand across Peru, work with the different channels. We are going to increase the number of express shops. The idea is to increase our profitability in terms of value of sales, but also be closer to our customers to provide them with a better service. That's one of the hallmarks of our company. As I said, growth has been quite powerful in terms of retaining customers. We have better ratios in terms of customers we lose, and this is also related to our growth in terms of sales. As I told you before, we saw a 25% growth compared to 2025 in a revolving industry. So we're growing at a higher rate than the industry, but also our proposal for family plans has been quite successful. We've seen a 35% growth in these plans. So these customers that are part of these family plans become more loyal and stay with the company because they're happy with it. We are also applying retention strategies. Our proposal for the market is quite straightforward. One of our older customers will always have better conditions than some customer we're trying to attract. Our customer can be certain that they will have the best offers, and that is something we're noticing. We see that we have a lower port out rate, so we have a higher port in than port out, and this is also relevant. There's something else to consider. Prepaid in Peru represents about 20% of the industry revenues, so we have a large client base. We are working with them based on the CVM strategy to try to predict which customers we should try to migrate to postpaid services, so that's what we've been doing. That improves our blended ARPU. When we talk about the efficiency of the network and the growth, we have a strong connection between the technical and the business department to deploy the network. So in Lima, and this is a very important number, we have about 30% of the postpaid market share in Lima, so we are very close to the leader. We have a powerful network. We have a proposal that's quite different. We've accomplished many things. We were the first ones to launch 5G in 2021. Now, we are the 2300 band, improving the 5G coverage. So that's a powerful experience for our customers that use smartphones with the ability to use this network. There are not so many yet, so we need to balance that, how to increase that penetration into how to grow the network for it to be profitable. We've also been improving our fiber coverage. Our focus is still having a differentiated network in Lima, so we're investing and working on that. Now, the regulator in Peru said we were the fastest 5G network, which means our strategy is working. The situation in the different regions is different as well. The geography of Peru is complicated. You have the mountains. They see sites, so areas that are harder to connect. That's why we're deploying our network, thinking about profitability, but also focusing on those areas where we can see a more clear return. We have about 18%, 20%, 19% of the postpaid market share, but there's room for growth here. As you can see, we've been investing in the 700 band to increase our coverage, of course, and improve the experience in Peru's major cities. But we are also looking for efficient options that don't require that much investment to grow in our network. So we have our IPT strategy, Internet for Everyone, which basically means paying for variable traffic in more than 1,600 sites that we've deployed. We also make use of a specific tax in Peru, Canon, so we can invest 50% of that in deploying infrastructure. Now, Starlink, as I said, connectivity in Peru is harder because of the geography, so the potential of this partnership with Starlink is huge. There are millions of people in Peru that have no connectivity whatsoever, not even 2G. Talking about the territory, there are major areas with no coverage at all, so I think this will help us differentiate our service, this focus on this strategy. Now, talking about fiber, the market is growing in Peru. Antonio talked about that. We see a 60% increase in fiber connection, but the penetration in home services is low, is less than 40%, so there's room for growth there as well. Another relevant topic is that we can have these bundles. We can have particular offers, making use of our strengths because we are a powerful brand with the best customer experience, and we also need to make use of the fact that people know what we're doing in Chile, because we are following the same model. What Antonio said about the shared fiber, that's the same model we're going to be applying in Peru, so we have the experience of Chile, and we're going to make use of that for Peru. We will have more than five million homes and more than many companies. That gives us infinite opportunities to growth, and we want to get to 15%, 20% of market share growth in this segment. Everything that we can do is useless if our customers don't recognize us. That's why today we can say confidently that we have a solid brand that continues to grow, that it's not a new entrant brand. It's from a solid company that Peruvians really trust, and every time is giving more space for services like fiber and digital B2B to get in. We're in a campaign that has to do with a power signal, because we always talk about a power signal that will arrive everyone in Peru, and that gives everyone the possibilities of doing different things, and a customer experience that is so good. We're because we're customer-centric and with an opportunity that is new, that it opens up to us today to go look for the segments of higher value. With the Starlink proposal, with fiber connectivity, we will have opportunities to grow and be more powerful. Our scale of more or less 25%, as Antonio showed, tells us that we have a level of efficiency to be a second operator in terms of the EBITDA that we have. But the only way to improve the results and generate more cash flow is to accelerate our growth and creating a greater market share. So what do we see as our next steps? First, in the mobile world, to grow three to four, five percentage points in revenue share in order to get to 28%, 30% of an EBITDA margin. Also, improving the Orona in about three to four points. Become in the home market and offer a differentiating product that will allow us to take 15% to 20% of the market. That also allows us to grow in companies with greater connectivity and very much leverage the digital B2B services, and that positions ourselves better in Peru. Continue to be innovative, and also always be customer-centric, because this signal power will get to everyone in Peru, and Peruvians will trust in that. Also, we exist, and also we manage to do things well with willingness, and we do this connecting a country that always wants more, expects more and needs more. Thank you. Thank you, Alexis. That's a great growth history in Peru and a big potential in the fixed business. Now we're going to have a ten-minute break, so those who are present here in the room, we invite you for a coffee and to see the experiences that we have for you. And those of you who are online, we will also show you the experiences. We'll see you in ten minutes. Please, go back to your seats so we can continue with the event. [Foreign language] Please, if you can take your seats, so we can continue with the Investors Day. Thank you. [Foreign language] To continue with our second part of the event, we will continue with the presentation of Julián San Martín, and then we will continue with the presentation of our sustainable communications manager and our strategy of José Manuel Aguado. Julián, please take the floor. [Foreign language] Hi, good morning. [Foreign language] How are you? [Foreign language] I need- [Foreign language] to present about this new initiative that Entel has Entel Digital which is called Entel Digital [Foreign language] Antonio mentioned it, I think with a greater level of detail, but I will just tell you what it's all about. [Foreign language] ... and just to- [Foreign language] emphasize on certain points. [Foreign language] Antonio was talking- [Foreign language] About something like the right to play. I would dare to say that is more than the right to play. .[Foreign language] I think we feel it like an obligation to play. [Foreign language] And in the long term- [Foreign language] Something that's very relevant for Entel Antonio was just mentioning about... the [Foreign language] the safety and or the security- [Foreign language] And how the business protects us. el hecho, por ejemplo, de estar en el mundo de la fibra, la fija If we are in the fixed world or the fiber world, also to be- [Foreign language] Always leading a mobile world. [Foreign language] I think the digital world, or at least this part of the right to play in digital solutions, has a very similar logic. [Foreign language] I imagine that in a couple of years it will be part of that blended [Foreign language]. For us to have- [Foreign language] digital solutions, using our own networks or evolving our networks [Foreign language] For customers that are much more satisfied in the world, B2B world. So Entel Digital focuses much on the B2B world, but also tomorrow in the B2C. [Foreign language] The right to play is there. [Foreign language] The telco in general in the world, the successful telcos, and we think that maybe with a similar vision, if not the same one, this almost obligation to play in this [Foreign language] They are doing it, and they are doing it successfully in many companies of the world. [Foreign language] Telstra or Telia, Sweden, and Telefónica at the level of Spain. They all have technological solutions. [Foreign language] that move around the network [Foreign language Certain concepts. So we have certain concepts in that an agency will be more, maybe leading in terms of monetizing and not only doing a blended with our customer to protect them, because we have the technology, but also monetize our assets, our network from our perspective. To have the capacity to go towards solutions that are end-to-end. What I was saying before, many telcos are already doing it with proven successes and increasing the revenue of the total of their company around 15% to 20%. With that materialization of the strategy of transform ourselves, which is very to going from telco to a TechCo. There's a lot to do from that point to the other. So where are we? We have been walking the path of IT. We had leaders in the data centers. We left the data center business in the right moment when the hyperscalers came in at the worldwide level, and also with sites in Chile. So we said, "You know, this is the moment we're getting out of the business, and we'll do a different business. We'll do a business that will be less CapEx intensive." We left the investments in the core of our network and to have digital solutions that even though they have less CapEx intensity, they do have a lower EBITDA. That was the launch and the logic behind launching digital, and we also see opportunities of using data. Data usage is very relevant. We have enough data due to our networks. It will be very much focused on SaaS-type solutions, because some... The cloud world is the one that is dominating right now, and also to provide solutions, as Antonio said, that are always protected in relation to cybersecurity. Another thing that is relevant, and even there's a country debt, are the solutions that are of a lower, smaller size. So we will make the most of what we have done in the big companies to take them to the SMEs. This is the purpose of Entel Digital, but is under Entel's umbrella, that it is to use the technologies responsibly for transforming companies, and this is what summons us as Entel Digital. If we can take a look at the strategic approaches, first, we have to add new capabilities to the portfolio. That is something that we need to do. Also, not only make the most of that portfolio for the large companies, maybe they're not huge corporations, but they're big, and do the same in the smaller business segments. Also, to land in Peru, we have enough solutions today. We have a very powerful brand in Peru. Entel Digital is already being made known in Chile, so we can disembark this in Peru in a tidy fashion with standardized technologies, using central capacities in Chile from the development point of view of the solutions and a commercial capacity, local capacity in Peru, to make the most what we have done here. The brand of Entel gives us a huge power to make the most of this. But what's most important, and in all businesses, really, we talk about talent, and you think it's only in the digital world, but talent today is a relevant key element. It's a deal breaker, something that if you don't have it, it's important to advance here. Entel has a very powerful strategy for capturing and retaining talent, and the digital business is particularly intensive in the use of talents for developing solutions. The same as in... We won't do anything that will have a memorable experience for our customers. If we do digital things badly done, it can jeopardize the brand of Entel, and it might be out of Entel's investment. The space to play is big. The digital world is big. We have 12% growth in the main lines of where we're participating, on cybersecurity. The cloud has a very powerful growth. Within the cloud element, there's a mix of things, but it's very powerful. The world of the ERPs, OT analytics, which is very close to the network, also with very relevant growth and services, which is all the management of this infrastructure, and it's still growing. On this side, we have something that's important. which is this one. It has very powerful growth, and it's very close to our network. So in that world, in the IoT, we need to have the best platforms for connectivity, connectivity to the devices using our networks, either fixed or mobile. So we have a growth space here in the industry, and the market is there. All we need to do is to make the most of it. And this is the ambition. I come back to what I said before, the three times. Yes, this is a growth measure that is relevant, intensive. We would like to represent 10% of Entel's income, with EBITDA around 13% and 15%, low CapEx. The CapEx is present for the core of our business, but three that three times, ideally, tomorrow should be six times. We have the ambition that in this blend of connectivity, mobile, in the digital world, can start making one single set, so we are protecting... Before we protected the company, the customers and Entel's income based on fixed and mobile and convergence. I think the digital world will play a very important role, so we need to be able to participate in the income, obviously, but also to participate in the digital world within our mobile and fixed. This slide is just to show you some things. I'm not going to go into the details. Here's where we're coming from. This is our, the world, our network, with all technology, 3G, 4G, 5G, Narrowband, a great technology that allows you to improve coverage and manage devices using less battery. This is the network, the fixed business. Starlink also, as a complement. Starlink is going to be very powerful for biotechnology. There are many solutions we have available for agriculture, for example, that can't be implemented because of coverage, and Starlink helps us with that. There are also many services which are related to the network, everything related to data collection, uploading to the cloud, and also solutions. Here we have many solutions that are already working with the data we use to understand how people move, crowds OnWay for fleets, elements, everything related to agriculture, soil, mining. There are many solutions that have to do with the network, and that's the Internet of Things. There are some cross-cutting issues, like cybersecurity and also consulting, which has to do with the implementation of ERPs and CRMs, and services and others. So that's the scheme. This is the portfolio we already have, and that we are going to continue to develop, and this is the portfolio that we will also apply to Peru's case. Now, we would say that the world is different here. It's different than the telco business. We have many competitors from large companies, from specific market companies, niche companies, so we also need to think about partnerships. I think I should mention something that we are going to discuss later as well. Entel is not expecting to become an expert in agriculture, right? Entel is the expert in telco, in communications, in digital development, in managing databases, infrastructure, and deployment. Partnerships with companies who are the experts in agriculture, for example, mining companies, those who have solutions for the mining industry, those are key. This is a new world that's opening. We will see more competition, of course, but we'd also have the opportunity to develop partnerships, and that's key. Some of the things I mentioned before, the narrowband technology you see here, related to the use of the network, which allows us to offer solutions that were unthinkable in the past. For example, if you think about this thing, the catastrophe we had a while ago, right? Where many of us in Santiago lost our power. There was this major outage. So you're wondering, "Why don't these companies have intelligent meters?" Because they wouldn't be able to tell what houses had electricity and which households didn't have electricity. But the technology is there, but it was using too much battery, so it wasn't viable as a business because I can't be changing the battery of a meter every six months. Of course, that's not profitable. Narrowband allows you to do that, and we are the first in Chile to implement this technology. We're using it with many customers that have those types of sensors and devices. There are applications for the IoT. Elements, as I said, has to do with agriculture, OnWay to manage fleets. That's very relevant, too. Using AI in all of our solutions, but also in our own operations. When we operate technology services, we need to consider the use of technology because it's pervasive. We need to use AI as well. There's also this private and public cloud market. This has an impact in every business. Up here you see the income variation to date compared to 2023. You see a 23% growth in the IoT world and 27% in the cloud business. In IoT, we are more advanced than the rest of the industry. Cloud is more similar to other players. This is a business that's incipient yet. We have this flat growth here because this is what was covered by premise. Everything is going to the cloud, right? Everything you needed to have in private data centers with your private equipment and teams is now migrating to the cloud. It's income from the other business, so you need to be part of both. In consulting, when it comes to ERP services, we are at the edge, right? We are part of the network, IoT, business solutions as well, certifications and partnerships with ERP suppliers. Now we are also partners with Salesforce, the number one CRM worldwide. A couple of weeks ago, we became their partners for Chile and Peru. So as you can see, we are covering end to end, close to connectivity, but also to the end solutions that have to do with the business itself. Talking about our performance, we've seen a 7% growth in terms of revenue. This is year to date, a growth in business, and we expect to have a 26% revenue growth in emerging businesses compared to 2023. This here is relevant. These are the areas in which we can see the double-digit growth rates because they have a larger share of the pie. We didn't start with this a long time ago. This is new. So here you see a relevant growth in IoT. The same goes for cloud services, so we are increasing our share in this other market. This one is more mature, IT managed services. For next year, we expect our revenue from the digital world, from the more modern digital world, we could say, to be a higher share of the pie. Something else I wanted to share with you today is this: these are our current sales. We measure this in contracts, right? We are talking about a monthly fee. We sign contracts for thirty or thirty-six months. Here you see the sum of all of that. We have 900 contracts to date, but what's important is that the average contract value, we're not talking about large figures. We have a large portfolio. Of course, we can improve that, and that's one of the goals of our work. But we also have larger contracts. Sorry, it didn't work. I wanted to point at those figures. It didn't work. We have contracts for 370,000 UFs, Chilean indexed units. We have contracts up to 1 million UFs, the Chilean indexed unit. We welcome that, but that's not our focus. We would rather have a larger portfolio to which we can supply smaller products, but different products. For example, water management for agriculture. We're talking about small contracts, but the number of wells could be large. The same goes for mining in the tailings, for example, and the same goes for cloud services and operation, where we're talking about large figures. But the average, as you see here, is smaller. We're doing well in terms of sales. We are growing as planned. That's what I wanted to tell you about today. You see, there are ambitions, basically, but I would also like to share a video with you. Can we play the video, please? Yes. ` tags Please share the transcript you'd like me to clean, and I'll provide a meticulously cleaned version following your detailed instructions We can end with something more tangible for you to see. Monitoreando e identificando patrones de movilidad para una mejor gestión de recursos y seguridad. En la agricultura, estamos contribuyendo a optimizar el uso del agua y a regenerar suelos críticos, y nuestra alianza con Syngenta nos permitirá ampliar nuestra base de clientes. Estas herramientas de última generación aportan información clave para la toma de decisiones, resguardados por nuestros servicios de ciberseguridad, que protegen los activos digitales de nuestros clientes con un enfoque integral. Queremos hacer realidad la digitalización de las empresas con nuestra capacidad tecnológica y conocimiento experto. Juntos haremos posible su evolución. [Foreign language] That was what I wanted to share with you. Thank you very much. [Foreign language] Thank you so much, Julián. I'm sure that's quite a challenge in terms of growth that's going to take us from the telco business into the technology world. So now we're going to continue with Francisca Florenzano, our Sustainability and Communications Officer. Welcome, Francisca. No, no, no. Hola, muy buenas tardes a todos. Hi, good afternoon, everyone! [Foreign language] We are a little behind our schedule, it is afternoon here. .[Foreign language] Invite you to something a little different. [Foreign language]. Entel has a strategy and a model to create value that's focused on the financial sustainability of the business. [Foreign language] This model includes- [Foreign language] Brings together our sustainability strategy to other areas that are relevant to the social, environmental, and governance. [Foreign language] That's quite virtuous. I would like to share a video with you. Unlike my colleagues, I would like to share this piece with you. That's going to tell you about the main pillars of our strategy. But even more important than that, it's going to show you how our sustainability strategy works, how it works in action. I would like to share with you some of the main results of this strategy and the main impacts of the strategy. Thank you so much, and please, enjoy this audiovisual piece. [Foreign language] [Foreign language] [Foreign language] [Foreign language] .[Foreign language] [Foreign language] [Foreign language]. [Foreign language]. [Foreign language]. [Foreign language]. [Foreign language] Gracias, Paula. [Foreign language] Hi, good afternoon. [Foreign language] Thank you for staying until the last presentation. [Foreign language] tags Please share the complete transcript you'd like me to work with [Foreign language]. Our people, our company, with a better future. [Foreign language] [Foreign language] [Foreign language] [Foreign language] [Foreign language] [Foreign language] [Foreign language] To be in the first three places in the coming years. [Foreign language] We have made decisions. [Foreign language] .[Foreign language] In order to make better decisions. [Foreign language] [Foreign language] [Foreign language] [Foreign language] [Foreign language] This agreement with Starlink... Thanks to this partnership, we're able to increase our coverage, particularly in remote and isolated areas. It's basically a complementary service to the ones we already provide in our traditional plans. It allows our customers to connect through messaging service, data, and voice, so providing more security and connectivity everywhere, even in remote areas. We are very proud of this partnership, because it's exclusive, so Entel is part of this partnership, and there are only seven companies worldwide that are part of this partnership, and we are the only ones in Latin America. By the end of 2025, we will have about two million people that will be using this technology, which produces an impact and creates a huge potential for the company. Finally, I wanted to talk a little about AI, artificial intelligence, much of what we're doing in this regard. You know, there are many use cases of the technology that go from network optimization to automation of tasks, enhanced customer experience, also increase productivity, reduce human service contact, thanks to chatbots, for example, and also increase our sales. All these use cases are being studied and analyzed in many telco companies around the world, and Entel is also working on this. We've been working on this for a while now. [Foreign language] We identified 155 potential use cases. Thirty-one are now being tested, were prioritized. [Foreign language] We are undergoing pilots or implementation of these cases. [Foreign language]. Most of them are focused on creating benefit in terms of customer service. [Foreign language]. Support functions [Foreign language]. Where you increase productivity thanks to these solutions, also in marketing— [Foreign language]. And sales tasks, and also in the optimization of our network, so we can decide where to improve connectivity and provide a better service for our customers. [Foreign language]. At the end of 2024, this technology will be producing benefits for about $3 million- $5 million. [Foreign language]. That's what we expect, and this will only increase as we identify or implement or deploy more use cases. [Foreign language] Now, I would like to share another brief video with you. [Foreign language] Where you can... This is a pilot of a tool. [Foreign language] We are developing in Entel, which is called Genio, or Genius, which allows the staff members of our call centers to use this chatbot. [Foreign language]. When you receive a call from a customer, the chatbot guides them through the process, provides them with orientation to provide the best service, but you can also identify the profile of the customer, the phone they have, the plan they have, family group. [Foreign language] We have more information in order to improve our service. [Foreign language] As part of the pilot, we've been able to identify that we have a 14% increase in sales through the call center, which is quite good, of course, and we also see a 3% reduction of re-entered tickets. This is- People who call for a second time after getting customer service once before. [Foreign language] As you can see- [Foreign language]. We are focusing our work on these three technologies. We think they have value for Entel. [Foreign language] Some of them are just getting started. [Foreign language] I wouldn't want to finish without insisting on the- [Foreign language] Fact that this transformation journey not only allows us to stay competitive and separate our company from the competition, but it also helps us comply with our purpose, which is bringing technology closer to transform people's lives, thinking always about the future. Thank you very much. ` tags Please share the transcript you'd like me to clean, and I'll provide a meticulously cleaned version following your detailed instructions Thank you so much, José Manuel. I'm sure we see specific examples of how we've always been pioneers in our industry to comply with our purpose. So now we will hear some final words from our CEO, and then we will start the Q&A session. Thank you. [Foreign language] Thank you, Paula. [Foreign language] I don't think I need that. It's just, well, two slides. [Foreign language] Anyway, first of all, thank you so much for joining us this morning. [Foreign language]. Hopefully, it's been interesting for you. [Foreign language] listening about our insights [Foreign language] Right? Because Right? Because sometimes it's hard to talk about all the work we're doing. [Foreign language] I only wanted to- [Foreign language] Repeat some of the key takeaways, the fact that Entel has a clear strategy that's consistent. It's been consistent for many years now. [Foreign language]. It's been proven as a value creation model. [Foreign language] which is based in some foundational enablers. [Foreign language] I would like to repeat this again: we want to be ahead in technology, be early adopters, have the best infrastructure, the best network. [Foreign language] ...a culture obsessed with customer experience— [Foreign language] having digital architectures that allows us to respond rapidly to move fast in the market [Foreign language] - And also, of course, having a great workplace, so we can attract the talents we want and we need. We want them to come to Entel and stay, because they are the ones that implement the transformation. [Foreign language]. It's not just about an investment that's static and works. [Foreign language] We are talking about daily transformations. [Foreign language] ... that are managed by people. [Foreign language] As I said before- [Foreign language] This triangle I mentioned earlier— [Foreign language] I think it shows you clearly how the value creation model works. [Foreign language]. We have the foundational enablers at the base. [Foreign language] ... because they are the ones that enable our success. Of course- [Foreign language] These enablers transform and feed [Foreign language] An important indicator about customer experience with whatever metric you use. [Foreign language]. You also build the brand, and you build NPS based on many things, but these and- [Foreign language] Foundational enablers are the ones that allow us to have a powerful brand. [Foreign language] and produce a customer experience that is factory and that sets us apart from the competition. [Foreign language] This also translates into simple results... we have more loyal customers. They are loyal to our brand, and they're willing to pay a little more for your services, which again, takes you to have better margins and better results, better returns of our investments. That's the virtuous cycle we've been trying to reproduce and maintain. Sometimes it's better understood than in other times when it comes to the investors' side, because sometimes someone looks at one indicator and says, "No, this is... This CapEx is too high." But right, maybe you need to look at your capability to produce cash flow today and tomorrow as well. At the end of the day, you need to focus on the return you are transferring to your shareholders. We do believe that we have our guiding light. We have a clear purpose that's powerful, attractive, interesting, that attracts talent, that gives you this sense of transformation. People here in Entel are very committed to this purpose, something they live every day, bringing in technology, adapting the technology, and transform the technology to improve or change people's lives. I think that's key in any company, for everyone to work together for a purpose that inspires everyone, and it's important for everyone. Of course, we need to have a specific attitude, and I think Entel's attitude is clear in our history here in Chile and in Peru as well, since we started with the satellites, the multi-carrier system, GSM, 3G, portability in Peru and in Chile as well. So we're always anticipating the changes that will happen in the market, changes in technology, in regulations, so we're not fighting the change or trying to delay changes. We are aware of the fact that these changes are coming, and if we anticipate those changes, we'll be better prepared, and that's what we've been doing. Since we started portability here in Chile, there was this discussion about what to do. Should it be easy or hard? No, portability is coming anyway. It's going to happen, so we should be better prepared for it and better positioned to face it and willing and to push portability and use it in our favor. That's the systemic approach Entel uses, and we think that's key in this industry where changes are always happening, because changes will come no matter what. So the sooner you realize that, and the sooner you adapt to them, you will be better prepared for the future. They say the one that trains more is luckier. The one that anticipates changes is also luckier. I think, as I said before, we create this value creation model that's quite consistent, that we have sustained, that takes us to better indicators, the critical indicators like churn, ARPU, brand positioning. But at the end of the day, all of them translate into this profitability that's sustainable over time, which is the most important one. Thank you so much for joining us. Hopefully, this was interesting for you. Now we have some time for a Q&A session. Thank you. With that, we are wrapping up the presentations for this Investor Day. Now we're going to start the Q&A session. If you are joining us online, please share your questions through the chat. Those of you here, please just raise your hand, and we will come to you with a microphone. We will take a couple of seconds to get everything ready. Thank you. Yeah. Yeah. Muchas gracias. All right, then. Thank you. So do we have any questions here in the room? Please raise your hand. I see one back there, please. Ah, acá primero. Oh, we have another one here. ` tags Please share the transcript you'd like me to clean, and I'll provide a meticulously cleaned version following your detailed instructions Hi, I'm from BCI. Thank you so much for the time for this conversation. I had a question about the fixed business and- How is it different from others that offer the same service through the same network? If I understand that correctly, the field force that comes from third parties, right? Trasa provides services to Entel, maybe others, too. So how do you accomplish that differentiation, if I'm right, if the technical teams that are deployed work with third companies? Well, these are two different concepts. You can have exclusive third-party suppliers or open ones. The industry now works with third parties in an open model, so the same company provides services to all the companies, with different teams, of course. In Entel's case, we have both models. We have a dedicated force, which is similar to the format we have with our stores. Most of our stores are part of a franchise, but are exclusive for Entel, and there's one part that's open. Of course, we prefer the first model because you can have more control on it. You can define clear protocols and be more efficient, so that's the path we would like to follow. Thank you. Back there, there's anoth er question. Please. Thank you. Good afternoon. I'm Constanza Gonzalez from Quest Capital. I have two questions. The first one has to do with revenue in the mobile business for Chile's case. How do you expect to improve revenue? Do you expect new increases like the ones we saw in recent months, or would you like to see an improvement in the business in terms of margins? My second question has to do with these increases in rates you implemented recently. How did the churn rate evolve? Are you expecting to see any specific evolution in the coming months? Thank you. Okay, to your first question, how do we grow in terms of revenue? That's something I tried to explain with my presentation. We expect to gain market share, and that will allow us to increase our revenues, which is that revenue walk I talked about. Because now we're growing organically about 6%. That's the trend for this first half of this year. We have this organic growth of services, and that goes in line with the increase in rates that's related to the inflation rate, so that's one way of sustaining the trend. Actually, the trend for the first half of the year is about 8% in revenue per services, and we expect to continue that path. When it comes to that increase in rates that we implemented in July, we had a similar one in July, and the impact was different because the market was at a different position. Now, we had a churn, a low churn rate that went up a little in August, but that was it. I would say it hasn't had an impact in the activity because of that increase in rates. Last year was different. We saw an increase in that churn. It went up a third for about three months. Thank you. Thank you. Let me supplement that answer, because in the end, there is a discussion of price structure and market situation. If the cost structures are changing because either the dollar went up permanently... The inflation was a one-shot, but if the level of dollar increases and you cost in dollars, then necessarily it must be transferred and reflect in our services rates, and that is the decision on what we have been doing systematically. You addressed something else, is: How can I be in an efficiency situation that will allow me to recover one or two points due to the change of the cost structure? Those are the two paths that we have used in order to maintain the margins. Just looking at the long-term margins, you need to know that what will happen is that the home business will take on significance, and it has an EBITDA margin. Because we pay the network as an OpEx, it will be lower. So when you say, "I will remain stable in the EBITDA margin," you're basically saying, "In the rest of the businesses, I will increase." And Minix, a business like that has less margin, like digital, and will offset that price increase. There's an online question: You mentioned that the CapEx will drop to 19% before 2027. Can you give more details on how this reduction will take place? I'll take that one. What we said, and we aimed at the... for 2027, not necessarily before 2027, that we convert into a CapEx on income around 19% or 18.5%. There are two factors. I gave you the example that in 2021, we were at levels above 18%, 18.1%, 18.3%. At the moment, it was before the deployment of 5G, and we had some investments in fixed, but it was basically CapEx and without income. It was just the deployment of the network, not necessarily the connection with the customer. But we have seen in the technological cycle, the 5G deployment, that we've done this for three years. There's still remaining, there we have two more years probably reinforcing Chile. We saw the expansion of coverage in Peru, in Lima, and in the main cities. Therefore, Peru will accompany us for a while, but it should be a cycle that will trend to come down in 2027. This year, we began with investments in fiber, and what happens in fiber is that even it's a CapEx and an investment in home that is revenue-driven. It is triggered by a contract. The problem is that the CapEx is created in one, and then the CapEx is recognized in a deferred fashion, so there will be an expansion of the income to the extent that we connect more and more customers. The same happens in Peru. With a network that is stronger, we will support the growth that Alexis said to get to an EBITDA margin of 30%. We also increase the income level, and with a CapEx that in nominal terms can even be similar to the one we have today. But as a percentage of income, it drops, and that will be similar to that of 2021 and maybe one point above that, but with a structure that is quite different. Income is different, and Orona, that is much higher. What frequency of spectrum will you use with Starlink? In 1900? It's a segment of the frequency of 1900. In the U.S., they're using AWS, 1900 and others. These are the ones that Starlink is using as a standard to provide the service for Chile and Peru. Yes. I always talk about Chile and Peru jointly. Thank you. We have another question here. Good afternoon. First, thank you for your presentations. I'm Rodrigo Mora. I work in Moneda. I just wanted to confirm some figures that Marcelo commented on. If I understood correctly, that the CapEx as an income of the company will remain high until 2026, and in 2027, there should be a drop down to 19%. It's correct. Also, in the fourth quarter, the company will make the payment of the due dates of a dollar bond, and we have the idea of growing in home fiber, both in Chile and in Peru. And to maintain the growth in the mobile business. That's in general terms. All of this also has to be accompanied by a services offer that have to do with all of the general services of the company. I just wanted to know if you still have two years, this one and two more, that are quite capital-intensive years, because you have to deploy fiber in Chile, Peru, and also finish the 5G deployment in Chile. How does that talk to paying debts and also maintaining a dividends policy around 70% of results? That's one question. And then I wanted to ask the sustainability manager, because it caught my attention, and I read in the press everything that they're doing, you're doing to help the elderly. The elderly are the most vulnerable with mobile phones because they suffer scams, and they give the bank password, for example. In relation to that, I would like to ask her a question. The first question, Rodrigo, there are two factors there. Let's not forget- That the growth that we're having in fiber is just generating revenues. And that, plus the revenue walk that Jose Luis was mentioning at the mobile or services revenue, will continue generating, and at the end of the year, we have a good going to have income next year. So there is expansion in mobile and fixed, so that will help that percentage drop of the CapEx over income. But going to your question about the payment of the debt, due to the fiber network, part of the funds are in the company. We just distributed a part of them due to the selling of some assets. The idea then was to sustain the CapEx plan, so in investing in 5G and fiber. So together with those net funds, with a good EBITDA performance, we have increased our cash flow. That is, June, it was $400 million in June. We will pay the amortization in October with another bank loan. Being very well-positioned, I was saying like $210 million, more or less. So the funds that are considered for the support of the investments of the coming year, we don't have major maturities. There are some maturities for the year 2026 that are quite significant, 2025, 2026. I think we can go through quite well with our cash flow and maybe some specific and limited refinancing. So we see consistent growth, the evolution of income, payment of debt, also contention or at least keeping the indebtedness levels and keeping the investment grade, which is part of our financial strategy, and supporting the gradual drop towards 2026-2027 of the CapEx over income. Just to put a little bit of perspective here, Marcelo showed that long story of the 4G and the 5G. You saw that on the side of 4G is very similar to the narrowing of cash margins that we're having on the side of 5G. There we also got growth, because then we were showing growth. Understanding that this was a transient and not a permanent situation, we were able to sustain. In Peru, we did some adjustments, but we were able to have a good dividends policy in that scenario. There was another question you had done in terms of the elderly mobile users. That was the other question. Inside our sustainability strategy, there is a decision that is quite strategic in focusing a series of actions on the people that are elderly, and the age is fifty-five plus. Why? Because of what you described so well, because Chile is in a process of aging or at least living more years. Therefore, we will have a portfolio that is progressively increasing in the elderly and of people that will not only need to stay behind in the use of technology and the technological replacement, but also be citizens that are more competent in that technological space. In that perspective, all of the social inclusion there with this focus, we have been articulating it with different initiatives. In the video, we saw that it's not just to change the devices and the people who had a 2G device, but also enabling them. We have just launched a fund, because that was another innovative way of saying: How do we manage to do this? Like the less usability of fifty-five plus people in... Which happens today with the elderly, because they suffer scams, and there's threats on the elderly. We managed to have partners that are out there, that know how to do it, that are in the territory. That's how we launched this fund that has an investment of $300 million pesos. We did a readaptation of all of the donations. We did a two-year work to put this in this fund focused on the elderly, and basically wanted to do alliances and do projects with different institutions with an impact on four areas. First, in training people above fifty-five years old, and everything that has to do with financial education and also the use of space, public spaces, and also private spaces, banking industry, and then four is the environment and employability. Unemployment rate of those above fifty-five years old is very high, and Entel also wants to look for alliances to work on that. This is more related to the social aspects, the family life, and more with emotions. We're trying to move into that direction. This fund is open. We have more than 150 applications. We're looking for projects with a real impact, but just with good intentions. Like that, there are other areas of our sustainability strategy that focus on this, given the reality and the economic impact for people in our country and for our portfolio of customers as well. Thank you so much, Francisca. There's a QR code you can see in our screen, if you can scan that. Now we will continue with a remote question. You talked about goals for the mobile business in Peru. Can you provide more details about how you plan to reach those goals? Alexi. Right. Thank you, Paola. Those are challenging goals, but we do have a specific, concrete plan. We're talking about investment management, focusing on producing new revenue in areas where we see there's room for growth, and trying to focus on producing more val ue for our customers with improvements in the network. But there are other things, too. If we add to that our partnership with Starlink and the possibility we have to connect more people in Peru who are not still connected, that could make a difference. Also, that convergence with the fixed model and home can also help us produce more fidelity, capture more customers for the mobile business. Everything we were talking about, the brand, how close we are to the leader in the industry, we differentiate ourselves in brand attributes. Those are quite small compared to the leader in the industry in Peru, which is different in Chile. In NPS or customer satisfaction, we are leading. We always get the awards you get for providing a better service. We think that's a powerful leverage we have, and we have other tools. We have more channels. We have the express stores, for example. We are also improving our e-commerce platforms and delivery to reach more places. We are confident that we will be able to achieve our goals and more. Thank you. We have another question here in the room. Thank you. Lately, in the past two years, I'd say, we've seen two main surprises in Entel. First, provisions, exchange rates that I think were disclosed a year ago or eighteen months ago, and also the losses due to debt in Peru. So I was wondering, the steps you're making to prevent that from happening again, or should we take that into consideration? If we see that there's an increase in handset sales, we need to be ready for another shock? The same goes for exchange rates. Thank you. Marcelo? Well, that's a good question. I'm going to talk about exchange rates first. Actually, our coverage strategy, so to speak, has to do with the structural changes in the exchange rate, and that we need to be able to transform that or include that in the price. So we are not going to do that. That's part of the business. We could have a transient impact, otherwise we're going to be out of the market, right? On the other hand, any volatilities that are transient, so we have adapted coverage measures for that. For example, we cover about 70% of the OpEx and CapEx of the second half of the year at a price... If you think about the price of the dollar today, that we're quite convenient prices. We're actively managing that, taking into consideration everything related to accounting and our policies in that regard. It's something that's well controlled. Of course, we can't cover everything, just those things that we can transfer to the customer via price. To your second question, I would say the same goes for the impact of taxes in Peru, right, I didn't mention that. There are some other difficulties related to that. As I said before, we need to focus on the tax impact. We are working on the structure of this society to have better coverage of our exposure in Peru. But now, through active hedge, we have one-third of our investments in Peru is part of a hedge, so we are confident about that. If the situation remains stable, we will see an impact, but up to two-thirds or lower. If there's a convergence, it's going to be lower, so we are working on that as well. We need to do some more to increase that coverage, but that's something we're working actively on. Secondly, what have we done to prevent other adjustments related to bad debt? For example, I joined Entel around that time, so one of my first tasks, and it was very important for me, I went through the processes, I went through the policies. I was also working on updating the systems we had to analyze credit risk. We did some major changes, improvements in terms of advanced analytics, modeling for bad debt, for example. Even the onboarding, which is basically determine the level of risk you assign to each customer bracket. And that's a process structure that's quite sophisticated, and that goes... It's supported by analytics, both for the customers we know and our new customers, even customers from other companies. Personally, I'm quite comfortable with the work we did in that, and that allows us to be at ease, and also the other processes in terms of internal and external audits to go through all the processes. I would like to add something. I would say Chile was more mature in that regard, of course, so what we did was trying to standardize the practices in both countries so we could better capture these things in both markets. There's another question here at the front and one at the back. I have a question for Marcelo. That efficiency plan that covers Chile and Peru, so this year's goal is to reach $40 million in terms of efficiency, right? Right. If that range goes, let's say it's a hundred, between eighty and a hundred and twenty. Next year, thinking about the results, if everything else remains the same, you should have an increase of about $50 or $60 million, right? Yes. We've said that the run rate, if everything remains the same, if there are no other shocks, it should be about one or two percentage points of EBITDA, the run rate. Two EBITDA, the margin points, which basically if the company has thirty... It's about $40 billion. Those are the figures and run rate we should be thinking about. Right, thinking about. Right, for run rate, around those figures. I'm sorry to insist. Well, there's an impact there, but there are other things to consider, as we show in the graph. By June, we see we have twelve, but there are other impacts. That's why I was talking about the net result, right? It's that number, and you need to subtract the cost of energy, leases, and other potential impacts you could have. Thank you very much. We have another question here in the room. Hi, Javier from Itau here. Thank you so much for the presentation and the meeting. I have a question regarding the Chilean market. You talked about WOM in Chapter 11 that represents a growth opportunity, particularly for the postpaid segment. So do you have any estimates about any potential migration you could have or the impact in the financial results? I would also like to know more about your strategy to capture or attract those customers, because as you said, this is a customer bracket that is more sensitive to prices and with another competitor that has a price strategy that's more similar to WOM's strategy. Please, go ahead. I have two comments about that. It's true that WOM's positioning is not similar to Entel's positioning. Many customers chose Entel... Sorry, chose WOM, thinking about quality and other features. This is a developing story, and I would say today we're doing well. During the last quarter, we're doing well. That's an opportunity we are already making use of. As I said, we've increased up 1% in revenue share. We have captured 80% of the growth in new customers, in postpaid customers. We're making use of the opportunity, and I would say we're being quite successful. We need to see what happens to see if that deepens even further, but we've already been able to capture the opportunities that are out there in the market. I would like to add that sometimes you think about the short term, which is fine, but in reality, in the past two years, we have covered 70% of the subscription base, right? Thinking about stronger or aggressive operators with differences between them, but that's the long-term evolution, and that has to do with more structural factors, right? So people prefer quality. There is loyalty from our customers as well, and that's something you can see in the long term and in moments like this, where there's more mobility or conflict. Right. Perfect. Thank you so much. We don't have any more questions. Thanks, everyone, for being part of our 2024 Investor Day. I would like to ask you to answer the survey. You can scan with your phone, the QR code. And for those of you joining us here in person, there's a cocktail now. Thank you very much. Have a good day.