Good morning. Welcome to the Atento second quarter 2021 results conference call. Today's call is being recorded. I would now like to turn the conference over to Mr. Shay Chor, Corporate Treasurer and Investor Relations Director for Atento. Please go ahead. Thank you. Welcome, everyone, to our second quarter 2021 earnings conference call. Before proceeding, please note that certain comments made on this call will contain financial information that has been prepared under International Financial Reporting Standards. In addition, this call may contain information that constitutes forward-looking statements, which are not guarantees of future performance and involve risks and uncertainties. Certain results may differ materially from those in the forward-looking statements as a result of various factors. We encourage you to review our publicly available disclosure documents, filed with the relevant securities regulators, and we invite you to read the complete disclosure included here on the second slide of our earnings call presentation. Our public filings and earnings presentation can be found at investors.atento.com. Unless noted otherwise, all growth rates are on a year-over-year and constant currency basis. Here with us for today's call are Carlos López-Abadía, Atento Chief Executive Officer, and José Azevedo, our Chief Financial Officer. Following their prepared remarks, we will move to a Q&A session. As we have been doing in recent calls, we will do our best to answer all questions received. We believe the Q&A session is a relevant part of the call, so we encourage you to ask your questions over the phone, through the webcast system, or even by sending us emails. I will now turn the call over to Carlos, which will do today's call from our office in Madrid. Carlos, go ahead. Thank you, Shay. Good morning. Good afternoon to all of you. Yes, I'm speaking to you from our Madrid office. I've been in Mexico and Madrid over the last few weeks. I like to be with clients and our operations as much as possible, and as markets return to normalcy and meetings are again possible, I am returning to my usual travel schedule. We're here today to discuss our results and progress during Q2. We have finished the first half of the year with strong results. In Q2, we have continued our growth trajectory with significant improvements in revenue, EBITDA, and continued cash flow discipline. Despite the continued impact of the COVID pandemic in some of our regions is still severe during Q2, we have delivered revenue growth of 17.6% in constant currency, 21.7% in current currency, and BRL 50.7 million of EBITDA at 13.3% margin, more than doubling our EBITDA last year. These results have allowed us to continue deleveraging, putting us already within the full year guidance of 2.5x-3x net debt- to- EBITDA ratio. This higher EBITDA in H1 and solid expectations for H2, which as you know, due to the seasonality of our business, is when we generate higher profitability and most of our cash flow, have allowed us to be confident to catch up on some CapEx and tax deferrals that we did last year while investing in growth for this year. We continue to improve our hard currency mix, U.S. dollars and euros. We're delivering around 25% of our revenue and 30% of our EBITDA, 15.8 percentage points more than last year in hard currency. This is thanks to continued growth of our U.S. business and improving profitability of our EMEA operation. We feel that our sales engine continues to improve. We have more than doubled sales in the first half of 2021, and we expect to finish this year with a strong book of business leading into 2022. Despite the fact that we continue to be vigilant and we continue to invest in COVID-related safety measures, with these results, we feel that we have fully recovered from the impact of the pandemic in 2020, amply exceeding the results of 2019 and being fully on track to deliver our Three Horizon Plan. Now while delivering the day-to-day, we continue to focus on our transformation. This quarter, we have added a new Chief Human Resources Officer, a new Chief Information Officer, a new Chief of Information Security, and a new ESG Director. We're a people-intensive business, the quality of our HR processes and talent management is key to our results. Further, as we change the company, we need to renew skills, talent profiles, and work culture. Adding new Human Resource leadership is paramount to these objectives. We're also placing more and more emphasis on the technology that we use and that we bring to our clients. Among this, of particular importance is cybersecurity these days, both for our internal use and as a differentiator in our market offer. We will continue to add talent to our technology, innovation, and cyber areas. ESG has always been very important to Atento. We feel that we have done a lot in the past in this area, but we did not have a formal program at the right level. We have a structure, a formal ESG program under a new leader, and we have elevated the visibility to the board of directors under a new compensation and sustainability committee. We will be presenting our ESG plan and commitments publicly in Q3. As we approach the third year of our Three Horizon Plan, we will be focusing progressively more on our Third Horizon, growth. Our U.S. strategy continues to gain momentum. We have achieved in Q2 33% growth in revenue, 53% growth in EBITDA. We continue to achieve wins in both the commercial and government sectors with important new contracts, important wins, one of them serving the U.S. Department of Homeland Security. Although the majority of our employees work and are expected to continue to work from home, we are opening new new centers, one in Florida and the other one in Utah, thus giving us better time zone coverage. Our strategy to focus on new sectors and global accounts continues to gain traction. We continue to grow in all of our geographies and in our new focus verticals, such as media, tech, and more data, advancing their share from 8.6%- 10.9% of our total base. We are launching new services and expanding profitable ones. We're expanding our multilingual services with partnerships such as the 1 we recently announced with ManpowerGroup. Having finished a strong H1 with a strong Q2, we feel increased confidence to meet or exceed the guidance that we provided for the year. We expect to finish the year strongly, on track to meet the objectives of our Three Horizon Plan for 2022. As I said to you from my first presentation, this management team will work hard to earn your trust, and I cannot think of a better way than consistently delivering on our commitments to you. Let me turn this over to José, that has more details on our results. José? Thank you, Carlos, and good day, everyone. I will start by presenting to you in more detail how we continue to deliver on our turnaround. I would like to highlight that while we still have some challenges ahead, we are happy to say that the most difficult part of our financial transformation is behind us. As we enter the last phase of our transformation, we will now focus more on accelerating our profitable growth. Before discussing the results, I would like to emphasize that this is the first quarter in many years in which FX played in our favor, and the reported results are better than constant currency. Going to the numbers, here you can see our second quarter figures. All regions performed very well year-over-year, with revenue growing almost 18%, boosted by both Telefónica and multi-sector that expanded double digits each. Telefónica revenue growth was positively impacted by the full impact of the Programa one in Brazil in Q1 and higher volume in Americas, mainly Peru and Colombia. The 14% revenue growth from multi-sector was mainly driven by Americas and EMEA. In Americas, the highlight was the 33% increase in the U.S., which is consistent with our strategy to expand our results in hard currency. In EMEA, the 15% revenue growth was followed by utilities, transportation, and government services. In terms of profitability, we delivered very strong EBITDA growth in all regions, reflecting the success of the efficiency initiatives implemented during 2020 and in 2021. The BRL 51 million EBITDA we delivered in Q2 puts us on track to deliver BRL 200 million in full year. EBITDA margin in Brazil increased to 15.5% from 12% in Q1, validating the strong seasonality that we record in the first quarters as we explained during our Q1 earnings call. In Americas, we expect margins to continue expanding as further penetrate the U.S. market. Programs in the U.S. are showing margins closer to 20%. Moving to the next slide. H1 2021 is the best first half for a year since the Three Horizon Plan was implemented in 2019. EBITDA margin increased when compared to the one reported in H1 2019, and moreover, it was 120 basis points higher when compared to the one excluding the extra items related to the transformation plan, attesting the success of the financial transformation of Atento. The key message I want to discuss in this slide is that the 11.9% EBITDA margin we deliver in the first half of the year, combined with the strong seasonality in H2 make us confident in our ability to deliver on our 2021 guidance or better, especially in terms of top line, considering the high demand for CX services. As I said before, the main challenge now is to use the solid foundation to accelerate profitable growth. The key areas are continuing expanding our U.S. business and increasing exposure to hard currencies. As Carlos mentioned in his prepared remarks, our revenues in hard currency already represents 25% of total, while the contribution to EBITDA is even higher at 30% of total. Let's take a look at our cash flow. If we recall, we discussed during the earnings call Q2 and Q3 last year that some governments offered companies the opportunity to postpone the collection of certain taxes during the pandemic. We were also able to negotiate extensions with some suppliers. As those payments were due H1 2021, we had unusually high working capital requirements in the first half of the year. That, combined with the one-off expenses related to the debts refi process, led the free cash flow in the H1 to be negative BRL 37 million. For a better comparison, trying to look into our run rate cash flow for H1 by excluding the one-offs I just mentioned, and also the working capital and CapEx related to the growth, our free cash flow for the ongoing operations in H1 was positive for almost BRL 7 million, as you can see in this chart. In any case, given the positive seasonality we have in the second half of the year, we expect the free cash flow to be at breakeven for the full year 2021. Cash CapEx was 3.4% of revenues in H1 2021 compared to 2.7% in the same period of 2020, reflecting many investments in IT to allow for an acceleration of future growth. Important to highlight that the company entered in H1 into new programs with clients that already represent 70% of the full year growth CapEx that we have budgeted. Most of the payments are scheduled for H2, we reiterate our guidance of CapEx payments to be between 4%- 4.5% of revenues for the entire year. Finally, an important topic, our capital structure. We ended the quarter with our net debts at BRL 561 million and a cash position of BRL 154 million. Given our EBITDA generation and our expectation of a slightly positive cash flow for the year, we started to repay our revolvers to optimize our cash balance. In April, we repaid the $10 million line in Brazil, reducing our drawn lines to $50 million out of the $80 million we have available. While the full repayment of the revolvers will depend on how the pandemic evolves, we expected to reduce the interest paid on the revolvers by $1 million in 2021 versus 2020. Our leverage ended the quarter already within the full year guidance range of 2.5x-3x. This is a direct result of consistent improvement in EBITDA that we have delivered in recent quarters. As we have been saying since our investor day in November 2019, improving the capital structure is one of the key elements of our rerating process, and we are confident in our ability to deliver the long-term target of net leverage between 2x-2.5x at the end of 2022. This concludes my prepared remarks. Thank you for your interest and support. Let's move to the Q&A. Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star then one. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. If you are at your computer and you would like to ask a question, please press Submit a Question box in your webcast viewer. At this time, we will pause momentarily to assemble our roster. The first question today will come from Vincent Colicchio with Barrington Research. Please go ahead. Yes, Carlos. Nice quarter. Thank you. Curious, the new Telefónica business added this year, how do the margins there compare to existing business with that client? Compared with that client, they're better. Compared with the rest of the business, they're not as good. A little more color on the Manpower partnership. Are they bringing clients to you? Is there any of that? How does that look? No, we are expanding our multilingual, not just capability, but go to market. We're getting some traction in that area. It's a market, as you probably know, is growing and is very. Synergistic is very related to our emphasis with global companies. Typically, these are the ones that tend to buy more multilingual capabilities in one location. We're expanding the place in which we want to provide those services from. One key one that we're thinking about expanding from is Portugal. One of the ways we do this in an intelligent way is with partnerships until we build the sufficient volume, et cetera. That's the nature of the Manpower partnerships. It's a way to get to market faster as opposed to building it yourself. That's correct. On the delivery side. Okay. The product capability and sales, et cetera, is us. Okay. What portion of wage inflation do you currently expect to pass through to clients this year? I don't know. I guess this might be for José. Yeah, José Azevedo has the number. Let me tell you upfront. I know this was a question in Q1. We told you that we expected to have a significant amount of pass-through, and that's coming to pass. We used to pass through maybe around 60%. Now it's much higher, and we have a much tighter process to manage the pass-through. Jose, you probably have the figures. Your U.S. business is growing very fast. It's hard to complain, but do you have any plans to increase resources there, such as expand the sales force? Oh, we are. We have, and we will. Okay. I'll go back in the queue. Thank you. Sure. Again, if you would like to ask a question over the phone, please press star then one. Again, that is star then one if you would like to ask a question over the phone. At this time, it appears we have no further questions in the audio queue, and I would like to turn it over to Mr. Shay Chor for any questions over the webcast. Thanks, John. First question. Great quarter. In the first quarter, you were already pleased with your results. How do you feel about second quarter results and how they did against your internal plans? We are very happy with Q2. I think we completed a very strong first half. Even some of the doubts that I think some people expressed on this call regarding EBITDA margin and inflation, ability to pass through that inflation, and so on and so forth, hopefully we put that to rest with the results, not with explanation. We're very happy with the Q2 results. We feel that this puts us in a very good position to deliver in the full year results. Even more importantly, we are always looking not just at the past quarter, but we're looking forward, right? We are keenly focused on delivering the third year of our three-year plan, which is 2022. We feel that this also puts us in a good position to start 2022 with very good traction. Okay, next one. Congrats on a very solid set of results. From a top-line perspective, very encouraging sales data. It seems like the company has changed gears from a sales perspective. Can you talk qualitatively about what have been some of the drivers behind this, and should investors expect this to remain in place? Well, sure. We've done a number of critical things. We changed leadership in sales worldwide. We've upgraded a lot of our teams. We have put in place a methodology and processes that we didn't have before, both from the perspective of the, if you want, the more the day-to-day pipeline management, incentive management, and performance management, as well as more strategic structures and processes around account management, the integration of service innovation and sales, et cetera. We have a significantly upgraded sales team, and we're not done yet. We have a long way to go. As I always say, I'm very happy with the progress we've made in sales. Probably one of the areas where I think the results speak for themselves, clearly. You don't have to apply an electron microscope to see it. There is a lot of potential for improvement. Per the previous question, we continue to invest in our sales capabilities and our go-to-market capabilities. Can you please talk about the lag between those new sales and the revenue actually kicking in and hitting your income statement? Sure. We've talked about different numbers in sales, right? Some of the numbers had to do with the first half. Let me give you about the typical lag. It changes depending on the program and the complexity and the size. If you think about sales in one quarter impacting the next quarter, and depending on the size, if it's a large deal, ramp up may be more complex, it may take a bit longer. If it's smaller, it takes less. If you think about a few months lag, that's probably a good guidance. Next one. Multi-sector grew very fast in Americas and EMEA, not so much in Brazil. Can you provide a little color? Did the Telefónica growth in Brazil constrain multi-sector growth? Clearly, we've been very busy with the growth in Telefónica in Brazil. As I mentioned, good volumes and growth are always good, with an important customer such as Telefónica is always good as well. As I mentioned to you, it's the kind of business we want to grow into. We have improved margins in Telefónica this year compared to last. That clearly has kept us quite busy. We used to have a very strong multi-sector growth, I think we should be seeing that on a continued basis in Brazil. I think even if you look at the comparative, we're still growing in multi-sector faster than the market, which as I always point out, for our team in Brazil, it's much easier for us to grow when you're a very small part of the market and grow faster than the market than when you are the market leader. In particular in Brazil, we are several times the next participant. It's a tough thing that we do on a regular basis and expect to continue to do so. It appears that as margins rise from the 13% level, free cash flow really starts improving. Can José speak about the higher margin on the free cash flow? Sure. If he has to take himself out of mute this time. Yeah. I can. Basically, what's happening in the free cash flow is, we improved the EBITDA, and as we promised, we work very well in terms of revenues, but not only. We still hard on the cost structure. Our intention is exactly that. It's entering 2022 better than we enter in 2021. We have a lot of improvements. The idea of the free cash flow is creates a buffer in order that we can invest for the future. In the company, as everybody knows, we are very shy in terms of CapEx. We need some to invest. Yeah. That is why we have a bit lower free cash flow. If we can make the bridge, if we take the CapEx that we invest for the future this year, plus the CapEx for growth, we can get between BRL 25 million-BRL 30 million free cash flow. As Carlos mentioned in some calls, we want to invest. We want to go for the new CX products and so on. That is why we have a bit slower, but the good news are, in fact, we start to have a positive free cash flow, inclusive in the first semester. If you take out the one-offs, the free cash flow will be a positive one. Yeah, I think that is one of the first times in Atento that it's happening. Yeah. In the first semester. Okay, next one. Congratulations on the results. Do you have any news regarding the renovation of the MSA agreement maturing in 2021? Not a specific news. I think I mentioned that we are discussing with Telefónica an extension of that agreement. As I always mention from day one, and I mention to my customers as well as to you, I fully believe in earning the business that we have with our customers every day, not to rely on any MSA or contracts. Now, having said that, having one is not a bad thing. Having a commitment from one of your important clients to buy from you, it's very important. I don't want to minimize that. The intention is to have a probably a new agreement in the month of October. Stay tuned. Okay. You mentioned in your release that you are competing for global accounts now. Can you say what services are you providing to global accounts, examples, names, anything that you can provide on that? Sure. Let me try. You know this industry, clients are a bit shy about using their names in public. Let me try a sample that may give you an idea. For example, we have a global consumer electronics company where we provide tech support for the clients, for their electronics and several products. Media and entertainment, a very large, very successful media company where we provide food delivery. I can think of a couple of very well-known names where we support them. A premier social media platform where we support them in their digital advertising sales. Gaming. We do gaming supports. In fact, I believe we have announced the name of this company, Riot Games. I can give you other examples. I think it gives you an idea of the type of companies, the type of sectors. By and large growth sectors, companies that are expanding and growing very actively worldwide. Also, the range of services is not typically your traditional old services. They tend to have more value add and more complex, but that's, as I mentioned to you, that's the kind of segments and the type of services that we're going after. The next question will come from Michael Ostrowski with Insite Investments. Please go ahead. Yeah, thank you for taking my question. Can you share with us now any details of your ESG program, which you said be launched in the coming months? Thank you. I will be sharing the full plan this quarter. I can share with you the highlights. As I mentioned earlier, I believe that this company has done a very good job over the years on ESG. When I compare with my past experience in other places, we provide a lot of support for diversity, a lot of support for disadvantaged people. We do a lot in the environment, et cetera, that we probably have not communicated very well in the past. More importantly, we have not put that under a proper program with proper attention. We have created a group and specifically for ESG, and we have a leader in the group dedicated to ESG. We are upgrading what we do at the board. We have now a new Remuneration and Sustainability Committee. We are including a very significant component in future agendas of the ESG program. Not only will we making commitments, and obviously communicating results, but also making commitments to you externally, but also having a rigorous process both at the management level as well as at the board level. Excellent. That is very helpful. Thank you. Going back here to the webcast, your slide on free cash flow bridge is very helpful. Can you split out working capital versus growth CapEx in that $17 million? What sort of cash payback you're expecting on those expenses? I think this one is for you, José or Shay. I'll happily pass it on to you. Okay. No, I'll take that one. The BRL 17 million is split around BRL 15 million is working capital and slightly above BRL 2 million is the CapEx. Importance to say that we have already deployed or is under execution around BRL 11 million in growth CapEx, and only BRL 2 million has been paid in the first half of the year. This is an important reminder that we still have to pay that in the second half of the year. In terms of payback and other metrics, the average payback on our growth CapEx is around 12 months. Another question we have here is on the return on invested capital on the growth CapEx. We aim at a minimum of 25%-30%, but the growth CapEx projects that we have deployed this year so far, the ROI is around 150%. Next question we have here. Wages have been rising in the U.S., can you talk about how Atento can provide cost savings to U.S.-based clients? Yes. Wages, as you well know, have been growing. Not only that, there's been shortages in many cases, in many locations. There's a number of things we do in the U.S., and I'm particularly happy to tell you that here we're doing very well. We've taken full advantage of the work at home, the Atento at Home platform that we have deployed, and where we have deployed some unique capabilities. Like, for example, maybe you had the opportunity, but if you haven't, I recommend that you do check out our digital hub demo that we did at a recent event. I think it's on our website. We have invested and we have a work at home capability second to none. That has allowed us to go after much broader talent pools. When we need to serve a particular customer from the U.S., it gives us the opportunity to reach much further than we could have in the past. Also, please remember that we have very significant capabilities in nearshore, Central America, Latin America, Mexico, that also are very helpful for us at this particular time. I'm not going to say that it's been necessarily as easy as it used to be or what I hope it is in the future in terms of logistics and labor shortages, but we've been able to manage very well the situation. Okay. I see your peers reported adjusted EBITDA, some of the costs related to COVID still impacting business. I notice you are not reporting adjusted EBITDA. Can you say if you have specific costs that you are considering as normal business? Look, I've taken the view that it's better to give the full numbers with one-offs, no one-offs, and you can see sometimes that tends to distort the message. That's not to say that we haven't disclosed when we think there's very significant one-offs. We did last year, but I prefer to give you the unvarnished results. In our case, if we did adjusted EBITDA, the number will be higher obviously. We have some significant costs still, not as much as last year, but significant costs still in from COVID. I think, Jose, I don't know if you know on the top of your head, we're talking about it in the order of BRL 20 million. I'm sure there are other one-offs that we could have baked into the number and say, "This is the adjusted EBITDA number," which would be much more impressive number. I prefer to be conservative and give you the unvarnished everything in one-offs and so on. That's why we've chosen to do it that way. In 2022 and beyond, how should one think about free cash flow? What level of operating cash flow you expect? Is CapEx still 4%-4.5% of revenues? Can you provide some deep clarity on free cash flow going forward? I suspect this is for you again, José. This is for Jose, actually. No. Oh. For us. I can give you the color. As I mentioned before, the free cash flow that we expected is between BRL 10 million and BRL 15 million in 2022 because we have to invest. We talk a lot about 4% and 4.5% CapEx for revenue, but because you got to prefer to talk about numbers. Otherwise, we don't know where the CapEx goes. When you look for this year, we will spend around BRL 70 million. For that, BRL 30 million is maintenance. The maintenance ongoing basis will be almost between BRL 30 million- BRL 35 million. That is the number that we have. We invest around BRL 20 million, in terms of, we can say strategy for the future. It means we have a lot of systems. We still have a lot of systems on-premise. We start to move to cloud. I give you an example. Sales and finance. We move for SAP HANA. In a 3-year basis, we expected to have around $50 million in savings to move that. Of course, we have to pay in advance. In advance, not because we have a good agreement with SAP. We pay monthly. Honestly, that is the type of CapEx that we need. We have around $5 million for efficiencies. It means in operations, we are still improving. That is our idea. We have very and pretty clear where we want to be in terms of variable and fixed costs ongoing basis. For that, we have to invest, too. We have around $15 million for growth. For growth, I think could change. Depends a lot on our sales guys. If they still sell as they have done in the last quarter, and our expectations, because we have a very good pipeline for the future, maybe we have to invest a bit more. Means our target is around, for next year, BRL 80 million-BRL 85 million in CapEx. To say that we can get around between BRL 10 million- BRL 15 million in a positive free cash flow, even we invest BRL 80 million-BRL 85 million. I'll just complement on José, that brings back previous questions that we had on EBITDA getting to 13%. When our EBITDA goes above 13%, closer to the 14% we expect for next year, that really gives us a high leverage on the free cash flow side. This is an important level that we need to continue delivering. How are you feeling about momentum in the sales process over the next 12 months? I think I mentioned earlier, I'm very happy with the progress we've made in sales. What we see in the pipeline is not one big deal or a couple of big rocks, but a solid and increasingly better solid, deep, and broad pipeline. I feel very good about what we have been able to accomplish, but I feel that there's still much more that we can and we will do. I'm optimistic of our continued improvement in sales. Sales, like anything in the world, particularly more in the case of sales, you also depend on market trends and all those things. Our own capabilities, what we can do, that depends on us, and that we continue to improve, and I think you're seeing the results. I see continued improvement in this area. Great results. Has the company thought about having an investor day later this year? I don't think we put a specific day. We were playing with a similar date as we had a couple of years ago. I think it's November-ish timeframe. I think it would be a good time with the results or clearly on the way to deliver the results that we promised back a few years ago in terms of Three Horizon Plan. I think it would be very fitting to present to the investors our next Three Horizon Plan. Probably stay tuned, we'll probably be looking at a November timeframe. Next one. Now that you have delivered on your improved profitability, is there room for more improvement in margins beyond 2022, meaning 2023 and 2024? The answer is absolutely yes. Again, now we're getting to the next three-year pln. Look, we're always looking ahead. You can see competitors that also have significantly higher margins. As I mentioned to Alan, if I mentioned these calls, I don't do anything in life thinking about being second or third or fourth. I'm always looking at how do I become the first, the best. I think we have a long way to go to reach the long-term potential of Atento, not only in margin per se, but also in margin. We got no further questions here on the webcast. Shay Chor, back to you, to see if we have anybody on the line. At this point, there are no further questions in the audio queue either, and I would like to turn the conference back over to Mr. Carlos López-Abadía for any closing remarks. Nothing further from me. Thank you all for being here and taking the time to have these discussions. As always, Jose, Shay, and myself like your questions, occasionally your challenges. It's the part that I personally prefer of these conference calls. Please keep them coming, and we'll try to answer them at the best of our ability. Thanks again, and talk to you soon. Thank you. The conference is now concluded. Thank you for attending today's presentation, and you may now disconnect.