Meliá Hotels International, S.A.

Good morning and welcome to the Melia Hotels International 4th Quarter and Full Year 2020 Earnings Conference Call. All participants will be in the listen-only mode. After the presentation, anybody who is interested will have a chance to ask questions so we can resolve any additional doubts. Please note that this event is being recorded. I will now turn the call over to Stefan Baus, Head of Investor Relations. Please go ahead.

Thanks, Pep. Welcome to IMELEAN's first quarter and fall year 2020 earnings call. Before we begin, we would like to remind you that our discussion this morning will include forward-looking statements. As our results would differ from those indicated in the forward-looking statements, and forward-looking statements made today speak only to our expectations as of today. This morning, as usual, we have Gabriel Escarrer, our Vice President and Chief Executive Officer, Andre Gerondo, our Chief Operational Officer, Pilar Dols, our Chief Financial Officer, and Mark Olinos, our Chief Real Estate Officer. Gabriel Escarrer will provide an overview of the current operating environment. Andre will then review our fourth quarter onwards. Following their remarks, we will be happy to take your questions. In any case, the Investor Relations team will be available following this conference call to give you a chance to clarify any thinkers you might need. You can find our training series on our Investor Relations website at www.milliardhotelsinternational.com And now, I am pleased to turn the call over to Karina.

Thank you, Stefan, and good morning, everyone. We certainly appreciate you all joining us today, and I hope that you and all those close to you are safe. 2020 was unlike any other year. After the positive results achieved in 2019, in spite of certain difficulties in the Caribbean, the positive trends that continued in the first two months of the year were halted by the onset of the pandemic in March. Our reaction to the global collapse in demand was exemplary. Thirdly, we implemented a rigorous contingency plan to reinforce our resilience and protect our team, our customers, and our liquidity, while also supporting the social response to the pandemic. and at the same time reviewing our strategy to anticipate future trends and assess our strengths and prepare for the post-COVID business environment. As a result of these moves, we expect to recover from the pandemic as a stronger, higher-margin business that is even better positioned to deliver performance for our owners and for our shareholders. Despite significant losses, our 2020 results show how we have managed to mitigate the worst impact of the pandemic on our finances, our operations, and our people. Enhancing our strengths and maximizing our capacity to make the most of the strong recovery we are sure the property industry will see as soon as things get back to something approaching normal. something which we expect will happen soon. In this context, turning to results, for the fourth year and fourth quarter, consolidated revenues decreased by minus 70.7% compared to 2018, and for the fourth quarter itself, revenues fell by 76.2% compared to the same period last year. One of our greatest and most immediate concerns was cutting operation costs. We have been able to reduce €645 million during the pandemic period, excluding €21 million of asset internments. The reduction in costs compared to the same period of 2019 was minus 63.3%. This cut reduction has allowed us to compensate by 55% the drop in revenues suffered during this period. On a yearly basis, operating expenses decreased by 48.6%. And in the fourth quarter, savings amounted to 50.9% compared to the same period in the previous year. EVGA, excluding Capital Games, reached minus 130 million euros. Including the employment to asset value mentioned previously, this figure will be minus 151.5 million euros. The company has also negotiated and signed agreements with the owners of some LEED hotels with LEED agreements, reaching several types of agreements. moratoriums, waivers, etc. amounting 29 million euros. Considering that the company has chosen to not exercise the option to avail the practical experience, that's the option of considering some of these improvements in rentals as negative variable payments for the year, these have not had a positive impact on EBITDA for the year. Based on the evolution of the business, affected by the pandemic in the final quarter of the year and the opening months of 2021, the company deemed necessary to evaluate the provisions registered in the first half of the year, resulting in an additional deterioration of 5.7 million euros. and bringing the total employment for the year caused by the pandemic to €150 million. For all assets, the income statement therefore shows a negative impact of minus €80.3 million, of which €21 million is used to investment properties maintained at market value, the only ones affecting EBITDA. $41.5 million comes from the properties added most recently and $17.7 million comes from assets in companies valued by the equity method. Regarding the rights to use hotels, the hotels on the list agreements, The company has estimated a recoverable amount by determining the value based on an updated business plan for the period 2020-2030, resulting in an impairment of 70 million euros. It is important to emphasize that these impairments have an impact on our accounts but have no cash effect at all. We continue to rely on the strength of our asset portfolio in terms of its quality and underlying value. The net loss of the parent company reached minus 595.90 million euros, including the asset value in permits mentioned previously, which amounted to 150 million euros. On a financial level, Faced with the exceptional situation and difficulty in forecasting its duration, one of the company's top priorities has been to maintain enough liquidity to allow us to face the coming months with maximum confidence. To preserve our liquidity, we have focused on adjusting and controlling all costs, reducing the amount of capex scheduled for the year, cancelling dividend payments, Obtaining new financing and destroying debt maturity that would have become due during the year. We would also like to highlight that Melia does not have any debt with financial covenants. At the end of December, the liquidity situation amounts to 316 million euros. Additionally, I would like to highlight that all of the maturities due for the financial year 2021 have already been refinanced. It is also worth noting that our mortgage debt currently stands at less than €260 million, which represents an insignificant proportion of the value of the company's own properties. During the last quarter of the year, net debt increased by 178 million to 2,603 million at the end of December, impacted by the addition of a new Lynch Hotel, the inside Amsterdam. Over this same period, pre-IFRI 16, net financial debt increased by 130 million euros to 1,255 million. Monthly cash consumption in the last quarter was around 43 million. For the full year, the increase in net debt free IFRS 16 was 661 million, mainly impacted by the final payment of the pre-negotiated long lease of the Meliá White House. The Share Buy Back Program The Maintenance CapEx And the impact of COVID-19 on cash generation, mainly from the second quarter of the year onwards. To close this chapter, I would like to inform you that the company also continues to analyze other alternative means of reducing debt and increasing liquidity, as asset sales with the possibility of the long-term management back contract. I will now turn the call over to Andrei to talk about our operational performance during the fourth quarter and four wars. Andrei, please.