Liberty Latin America Ltd.

Good morning, ladies and gentlemen, and thank you for standing by. Today's call is being recorded. I'll now turn the call over to Laura Pinalto, Treasury Manager of Liberty Latin America. Laura, please go ahead.

Good morning and welcome to Liberty Latin America's full year 2021 investor call. At this time, all participants are in listen-only mode. Today's forum presentation materials can be found under the investor relations section of Liberty Latin America's website at www.lla.com. Following today's formal presentation, instructions will be given for a question and answer session. As a reminder, this call is being recorded. Today's remarks may include forward-looking statements, including the company's expectations with respect to its outlook and future growth prospects, and other information statements that are not historical facts. Actual results may differ materially from those expressed or implied by these statements. For more information, please refer to the risk factors discussed in Liberty Latin America's most recently filed annual report on Form 10-K, along with the associated press release. Liberty Latin America disclaims any obligation to update any statements or information to reflect any change in its expectations or in the conditions on which any such statement or information is based. In addition, on this call, we refer to certain non-GAAP financial measures, which are reconciled to the most comparable GAAP financial measures, which can be found in the appendices to this presentation, which is accessible under the investor section of our website. I would now like to turn the call over to our CEO, Mr. Balam Nair.

Thank you, Laura, and welcome everybody to Liberty Latin America's full year results presentation. I'll begin with our group highlights and operating results before closing with an overview of our strategic focus areas in 2022. Chris Noyes, our CFO, will then follow with a review of the company's financial performance and our outlook. After that, we'll get straight to your questions. As always, I'm joined by my executive team from across the region, and I will get them involved as needed during the Q&A following our prepared remarks. As a point of housekeeping, we will both be working from slides, which you can find on our website at www. Starting on slide four, and our highlights for the year, we grew our fixed base by 269,000 RGEs in 2021, led by cable and wireless, where we added over 100,000 RGEs, with strong contributions also coming from Puerto Rico, Panama, and Costa Rica. We had a record performance in both Q4 and the year, adding 493,000 subscribers in 2021 with a growing post-paid mix. Panama and Costa Rica reported the highest additions across both periods. High-speed connectivity is at the core of our customer offering, and we invested to expand and improve our network during the year. adding or upgrading approximately 750,000 homes past across our operations, almost exclusively using fiber-to-the-home technology. We plan to continue this activity in 2022 with around 600,000 homes planned. Our principal financial guidance for 2021 was to deliver $200 million of adjusted free cash flow, and we achieved this target. We also announced an additional $200 million buyback program yesterday, which Chris will provide more details on. Finally, we continued to make progress with our inorganic strategy in 2021, announcing the acquisition of American Mobile's Panama operations and a 50-50 joint venture with American Mobile in Chile. We expect to close both transactions this year as well as making further progress integrating businesses previously acquired in Puerto Rico and Costa Rica. Turning to slide five and our fixed subscriber additions by market over the past three years. Starting with cable and wireless Caribbean networks in the upper left of the slide. Here we have delivered steady improvement over the period, including 10% growth in additions during 21. This was driven by Jamaica, where we added close to 100,000 RGUs in the year. Moving across on the slide to Liberty, Puerto Rico, we continued to deliver strong ads in the year, albeit a lower figure than 2020, where we benefited from demand driven by COVID-19. Our quarterly run rate exiting 2021 is a more normalized level for the business. Further right on the top row, we had our best year in Costa Rica. to 45,000 in 2021. Moving to the lower left at CNW Panama, here we saw a much stronger performance in 2021 as the market recovered from the prior year impacts of COVID-19. Our network in Panama is now over 80% HFC or fiber to the home, and we are focused on improving operational execution across core areas of sales, retention, and installation to drive further growth. Finally, in terms of our markets, VTR had a better year in 21 versus 20. However, the Chilean market continues to be intensely competitive, and we reported net subscriber losses in the fourth quarter. Our focus here is to stabilize our subscriber base. Overall for the group, there was a 57% increase in ads for 21 compared to 2020. Moving to slide six and our mobile performance. As with our fixed KPIs, we present annual figures from 2019 to 21 and call up postpaid additions separately. Starting in the top left of the slide with CNW, Caribbean Air Networks, we recovered strongly in 21 after the impacts of COVID-19 and associated mobility restrictions. Jamaica, the segment's largest market, led CNW in mobile growth. What we are excited about is our SMC plans working and drove 40,000 postpaid ads, our strongest performance in recent years. Then into Puerto Rico, where we acquired mobile operations in October 20. While our overall base remained relatively stable during 21, there was a notable shift in mix as we added 39,000 postpaid subscribers. Cross-selling activities should further drive postpaid ads. Moving to the right of the slide in Costa Rica, this is now our largest mobile operation in terms of subscribers and another recently acquired business. As the graph shows, the operation delivered significant additions in the four and a half months under our ownership. Post-paid subscribers represented about one-third of the total ads. On the bottom left of the slide, we present Panama's mobile subscriber This was the country where our customers experienced the most severe mobility restrictions during 2020, and we saw a significant rebound in 2021 as market conditions improved. Panama delivered the most ads across the group in the year, including record post-paid ads. In aggregate, we added close to half a million mobile subscribers in the year, including 137,000 post-paid subscribers. As we drive fixed mobile conversions across our markets, we are focused on increasing our post-pay subscription-based revenue. Next, to slide seven, and our B2B operations. In the bar chart on the left of the slide, we present our fourth quarter and four-year B2B performance with 15% and 4% rebates growth respectively. B2B is back. Following 2020, when economies were challenged, projects were put on hold. Panama and Jamaica in particular saw activity recovery, and this was accentuated in Q4 as projects returned to the marketplace in what is seasonally our strongest quarter for B2B. In the center of the slide, we provide an overview of where B2B revenue generated across the group, including our subsea operations. CNW Caribbean and Networks is our largest contributor, generating close to two-thirds of our $1.4 billion in B2B revenue annually. Panama is then the next largest operation with 18% of the pie, and Liberty Puerto Rico is now a much larger B2B business, following our acquisition with 16% of group B2B revenue. On the right of the slide, we wanted to provide some more color for our networks and LATAM business. This comprises our subsidy operations and attacker B2B operations in Latin America. These businesses, on a combined basis, represent over $400 million of annual revenue on a gross basis, as our reported figures exclude intercompany capacity sales of over $70 million in 2021. In terms of the split shown, Most of the revenue is driven by subsidy. However, there is also a diverse and fast-growing B2B business here, with Colombia representing our largest market. At this time, we are not providing any additional information as it pertains to any plans with the asset. Importantly, as evident on this slide, this business continues to charge ahead. We firmly believe this business is underappreciated with attractive characteristics. It is underpinned by U.S. dollar revenue, has strong cash flow conversion, and an adjusted OEBITDA margin of above 50% and relatively low CapEx requirements. And we have plenty of capacity given advances in technology. We continue to work on how best to optimize this unique asset. Moving to slide eight and an overview of our networks. Starting on the left with our fixed footprint by technology. The key takeaway here is that we have a strong position. 90% of homes were passed with high-speed technology at the end of 21. In the center of the slide, we show our investment activity and how it has evolved over the past years. We have built consistently, even through COVID, adding nearly 2 million homes in the four-year period. We see our network as core to the company's long-term success and will continue to invest with approximately 600,000 new homes built or upgraded expected in 2022. The other point to highlight here is our increase in FTTH technology, such that it's now used in virtually every case. Finally, on the right side of the slide, we show the significant growth in high-speed mobile service capabilities. We now have LTE coverage virtually everywhere that we operate. We also have 5G services in Puerto Rico and U.S. Virgin Islands, where approximately 95% of the population is served by a 5G-capable network. Turning to slide nine. and an inorganic strategy which we believe will drive significant free cash flow growth for the group. On the left of the slide, we show our completed and pending transactions since 2018. In terms of completed transactions, we have consistently focused on opportunities that solve for product gaps or improve existing offering, generate clear synergies, and create scale to strengthen our market position and propositions Most importantly, we look for opportunities to drive meaningful free cash flow growth. Sometimes these are smaller but very creative moves, such as the acquisition of broadband VI in the US Virgin Islands, which we closed in December last year. This will be the platform for us to build out a fixed connectivity business in the US VI, which we plan to integrate with our mobile operations to create a leading converged operator. For our pending deals, we remain very excited about the prospects for both and expect to complete the Panama acquisition in the first half and our Chile JV in the second half of this year. On the right of the slide, we wanted to provide an update on integration activity in Puerto Rico and Costa Rica. These are exciting and accretive deals. Across both transactions, we expect to deliver somewhere in the region of $90 million of synergies once integration activity is completed. This will coincide with the end of our TSA agreements with AT&T and Telefonica towards the back end of 2023. So we will have a whole year of benefits in 2024 and progressively more through this year and next. Our 2022 milestones include testing our new IT stack and establishing our mobile core by the end of the year in 434. in consolidating our brand and retail networks, as well as designing a new OSS BSS in Costa Rica. Finally, to slide 10, and our strategic focus areas as we look to 2022 and medium-term shareholder value creation. The priorities are split across three pillars. First, network and IT. As mentioned, this will include expanding and upgrading our fixed and mobile networks for our customers. Our transformation will involve some of the integration activity as well as establishing new IT stack to support our business operations. Second, our commercial approach. We aim to drive fixed mobile convergence to bring better value for our customers while creating more predictability in our cash flow. Product development includes delivering a great in-home Wi-Fi experience, set-top box solutions, eSIM, 5G, FinTech, and B2B products. This will improve service and reduce costs. Through increased use of digital channels, we will improve our customer journey, reducing friction in buying our products, increase efficiency of our search engine optimization, search engine marketing, and social networks marketing. This will increase sales and reduce channel costs for the future. Additionally, we remain focused on using technology and better tooling to reduce change, which is a significant cost for all operators in our industry. Third and finally, capital allocation. As I highlighted on the price line, we intend to drive inorganic growth through the acquisitions we have already completed, as well as those we are looking to close. Successful integration of the business we acquire is vital, both drive synergies and to optimize top-line performance. So this is a key focus for us in Puerto Rico and Costa Rica in 2022. And we have been active with our share buyback, announcing yesterday our new $200 million increase to the plan. With that, I'll pass you over to Chris Noyes, our Chief Financial Officer, who will talk you through our financial performance before we take your questions. Chris?