00:03 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 Pianalto, Treasury Manager of Liberty Latin America. Laura, please go ahead.

00:18 Good morning and welcome to Liberty Latin America's Full-Year 2021 Investor Call. At this time, all participants are in a listen-only mode. Today's formal 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. 00:44 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 forward-looking statements or information to reflect any change in its expectations or in the conditions on which any such statement or information is based. 01:25 In addition, on this call, we will 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 Investors section of our website. 01:39 I would now like to turn the call over to our CEO, Mr. Balan Nair.

01:45 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. 02:10 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.lla.com. 02:29 Starting on Slide 4 and our highlights for the year. We grew our fixed base by 269,000 RGUs in 2021, led by cable and wireless where we added over 100,000 RGUs, with strong contributions also coming from Puerto Rico, Panama and Costa Rica. In mobile, we had a record performance in both Q4 and the year, adding 493,000 subscribers in 2021 with a growing postpaid mix. Panama and Costa Rica reported the highest addition across both periods. 03:10 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 passed 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. 03:37 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 America Movil's Panama…

16:28 Thanks, Balan. I will start by running through our key metrics, focusing on Q4 performance. For starters, Q4 revenue increased by about $180 million year-over-year to $1.3 billion fueled by our acquisitions in Puerto Rico and Costa Rica. Our rebased growth rate was 6%, which was our second best quarter of the year. This growth was led by double-digit topline performances in Panama and Costa Rica, as well as a 7% rebased result from cable and wireless Caribbean & Networks. On a full-year basis, revenue was up 4% on a rebased basis to $4.8 billion. 17:07 In the upper right, we generated adjusted OIBDA of $470 million in Q4, reflecting rebased growth of 3%, an improvement from flat rebased growth in Q3. Our adjusted OIBDA margin in Q4 of 37% was adversely impacted by lower margin B2B and mobile equipment sales during the quarter, as well as about $10 million of integration expenses. Moving to the full year and consistent with revenue, our rebased growth was 4% on adjusted OIBDA of $1.8 billion. 17:40 Our P&E additions, in the bottom left, were $257 million in Q4 or 20% of revenue. This result brings our 2021 total to $856 million or 18% of revenue, and includes significant new build and upgrade activity, as Balan highlighted, and roughly $25 million of integration-related CapEx during the year. On the bottom right, we reported $51 million of adjusted free cash flow for Q4, bringing our full year to $200 million, a 35% increase over 2020. 18:15 Next to Slide 13. I wanted to make a few points about our quarterly performance and our expected phasing for 2022. Q4 2021 is the first full quarter including our mobile business in Costa Rica, acquired from Telefonica, which contributed $71 million of revenue and $17 million…

28:28 Of course. The question-and-answer will be conducted electronically [Operator Instructions] Our first question comes from the line of Michael Rollins from Citi. Michael, please go ahead.

29:20 Thanks, and good morning. A couple of questions if I could. First question, just on the numbers, can you break out the impact of the government contract in Panama and into the overall results for revenue and OIBDA? And how should we think about the contribution from that overtime? 29:41 And then just separately, curious if there's an update on the exploration of what to do with the subsea business, as well as any other components in the portfolio? Thanks.

29:58 Thanks, Michael. In Panama, on the government contracts and I'll ask my colleague, Guillermo to jump in here in a bit as well. These are actually extremely good revenues. There is a component of nonrecurring upfront and then a monthly recurring going forward. We don't break down the components of our B2B specific contracts and the value of the contract, but I'll tell you these are great contracts by the government of Panama, which post-COVID they're coming up with a lot more contracts and we are just gunning for all of them. And -- but we feel really good about the nonrecurring part, which we capture upfront and then the monthly recurring that happens up in the future. 30:42 Guillermo, do you want to jump in really quick before -- and then I'll answer the subsea question.

30:49 Yeah. Thank you, Balan. We are very happy about the performance of our B2B team in Panama. We have a strong team there, which have been -- we have been building for a long time. The relationship we have with -- not only with the government, but with other large corporations in Panama is really strong. And this is what is represented in the numbers and in the figures you saw on the fourth quarter. 31:14 Fourth-quarter is usually a strong quarter for us as many entities accelerate some of the project execution over the first quarter and we have become the preferred partner to be -- implement those projects in Panama. Performance has been really good, as I said. As pointed out by Balan, many of these projects had a nonrecurring component upfront, explained by equipment and the installation of equipment, but then another important component that is recurring revenue that we will enjoy over the next years actually in this kind of large project.

31:57 Thanks, Guillermo. On your second question on subsea, we are really happy with that asset. We really like the business, as I've indicated earlier on, extremely high-margin business, both on an EBITDA basis, on an operating free cash flow basis. And we surely believe that the SOTP and this is not fully reflected here. 32:19 Now as to your specific question on the strategic options that we've been looking at, we're not going to comment on that today, but we really like the business. Maybe in the next quarter or two quarters from now we'll probably shed some more light on it.

32:38 Thank you.

32:43 Our next question comes from the line of Diego Aragao from Goldman Sachs. Diego, please go ahead.

32:52 Yes. Thank you. Good morning, Balan and Chris. Thanks for taking my question. I guess the first one is for Chris. Your guidance for adjusted free cash flow in 2022 implied a 25% growth when compared to full-year 2021. So can you just help us reach the growth you were assuming [indiscernible] by region and also by business segment? That's the first question. Thank you.

33:22 Yeah. I mean I'll talk holistically about the free cash flow and some of the information we provided. First, obviously, we're focused on continuation of adjusted OIBDA growth, so that plays through. We gave guidance very similar -- the CapEx as a percentage of revenue, the 18%, similar to what it was in '21. We did give some color around our cash tax number. So a fairly significant increase during the course of '22 as compared to '21. As a business, we are focused on working capital and working capital efficiency and we continue to kind of focus on that to drive improvement on a year-over-year. So when you put the math components together, it translates into, call it, a $50 million increase on a year-over-year basis.

34:24 Thanks, Chris. That's helpful. And just my second question is related to Chile. I just would like to get your views on the recent developments in the country, particularly the growing number of pure site players going to that country. And also if you can just comment quickly on the timeline to get the required approvals for the JV [indiscernible] that would be great.

34:51 Sure. Thanks Diego. On the approval process, I’m here with my General Counsel John Winter as well. He has been working on that. We feel good that it's a second half of the year closing on this and I'll ask John to maybe jump in here in a second, but that's what we've publicly stated and we feel that’s still good. Clearly it's a highly competitive market as you pointed out, that's a lot of PE money coming. There is currently right now 7 fixed operators in Chile, of which we have one. 35:25 So we think consolidation that just makes absolute sense, there is some of our competitors have publicly stated that they want money to either exit the market or putting up their asset for sale. So I suspect after our announcement, there'll be more consolidation in the market and that's necessary there, but our joint venture with collateral America Movil I think will shake up the market, will bring a lot of investment into the country and you can clearly see from our JV we are bullish in Chile. We think it's going to come back, we think it's a strong market in the long term, and that's why we are continuing to be -- to have a presence there and to do this joint venture with Claro who is – who have a great mobile network, they have got a great six network and that combination I think will put up a good response to some of our competitors there. 36:21 John, you want to make maybe a comment on the closing.

36:24 Yeah. Sure Balan. Yes, as Balan said, we're still optimistic and confident about being able to close in the second half of the year. It was publicly stated by the F&E in Chile that they moved us to Phase II of the process, which we were expecting and it's pretty customary in Chile for transactions of this type. And we're working with our partner to respond to the F&E and we remain confident we'll be able to get that approved in the timeframe we outlined in September.

37:04 Thanks, John.

37:05 Thanks, Diego.

37:11 [Operator Instructions] Our next question comes from the line of Kevin Roe from Roe Equity Research. Kevin, please go ahead.

37:26 Thank you. Good morning. Balan I have sort of two high level questions. First on inflation. How in general are you addressing inflation with equipment cost, fiber, labor, energy? Are you leaning more into price increases to keep up with inflationary pressures? And secondly, on Chile. Balan if you could give us a sort of a real-time update on the new government? I often get questions on it in terms of regulatory trends or regulatory outlook. Any changes there or even a commentary on potential tax risk? Thank you.

38:07 Sure. Hey, Kevin. Thanks. First one on inflation. Inflation, of course, is all over the map, everywhere. And if you look at our region specifically because of commodity prices, et cetera. We are seeing real inflationary effects in Chile, of course, certainly some of the island. It's going to be tempered in some of the locations where unemployment is still high because of lack of tourism. We see those headwinds in the Caribbean Islands right now. And we expect that to improve and when that does improve, inflation probably will start coming down as well. Based on strategy on that, we are not taking price increases. We are going to tackle inflation through cost-cutting. And the reason we do that is; one, this management team is focused and trained on driving value without taking price increases. This is a volume-driven growth business and it's a good practice for my management team as well, especially at all levels to run this business with discipline and not count on price increases to solve for some of the gaps in our cost structure. 39:16 And I think that's going to serve us really well in the long term. And it doesn't open up or at least it opens up a bigger gap between us and our competitors, we take price increases and I really like that strategy. On Chile specifically, the government, of course, it's a new government in place, we've been very pleased with the cabinet that he has formed. And it's a very moderate cabinet with a lot of technocratic in it and some we know very well as well. 39:47 And then to your question on taxes, that's a lot of noise out there, we will see how it plays out, but it's going to take a while for any changes to come about. Like I said in my earlier -- the previous question from Diego, we are bullish on Chile and certainly in the long-term prospects of Chile.

40:09 Super. Thank you, Balan.

40:18 [Operator Instructions] Our final question comes from Soomit Datta from New Street Research. Soomit, please proceed.

40:36 Hi, guys. Apologies, I joined the call late, so I'm going to ask a couple of questions, and hopefully that been asked if they have, again apologies, if you can maybe take them offline. Just on -- first of all on the buyback, I was just wondering how you're thinking about the pacing of that, is that going to be sort of you guys in the market, sort of all the time kind of regularly just sort of being part of the flow or are you going to be a little bit more selective about. How do we think about that maybe pacing over the next couple of years? I think you're going through to December 24. So a bit of a steer on that would be super interesting? That’s the first question. 41:19 Secondly, again, I don't know if this is has been sort of covered too much, but just on the subsea kind of strategic review. My understanding was that you were going to kind of -- would have been a year long – a year long process now, and we were under the market was going to what the conclusions of that or do we not have any conclusion from that process. That would be the second question. 41:46 And then just on Chile, please. I know we're waiting for the deal to close. And I also would like it's absolutely on track. Obviously the business is slipping a little bit in terms of broadband that before that point. And is there much you can do about that or is it a case of kind of waiting to close that deal and then obviously be in that kind of creates a position of strength to compete? Thanks very much. A - Balan Nair 42:15 Yeah. On…

44:52 Yeah, sure. Hi, Soomit. Just a couple of points. One, we have -- we will have purchased about $90 million of stock in less than 12 months. So, as you can see that from our pacing. Obviously, as Balan pointed out, we're opportunistic. So we tend to buy more as the stock price is lower. So you can see that based on our behavior over the last 3.5 quarters. And going forward, we'll just tend to balance the share price, the other opportunities for our free cash flow, M&A, our investments within the business. And we're focused on efficient capital allocation in terms of driving longer-term shareholder value and that will dictate the pacing. We could slow it down, we could speed it up, but net-net, we'll be opportunistic as we look out over the coming quarters.

45:47 Okay, great. Thank you

45:53 That will conclude today's question-and-answer session. I'd like to hand back to Balan Nair for any additional or closing remarks.

46:04 Thank you, operator. Well, firstly, as usual, I want to thank all of you for your support of our business. It's not been an easy last couple of years, but we remain quite optimistic about the future. I think in 2021 we put up some pretty good numbers, even notwithstanding some of the headwinds in Chile. And if you look at 2022, we see the momentum coming into the year. 46:28 Now clearly, we've already -- we are 2 months into the year and we've seen some really good stuff, some challenging parts of our business, but that's normal in a company like ours. And -- but we remain quite optimistic about the future. And let me end by saying once again, thank you so much for your support.

46:52 Ladies and gentlemen, this concludes Liberty Latin America's Full Year 2021 Investor Call. As a reminder, a replay of the call will be available in the Investor Relations section of Liberty Latin America's website at www.lla.com. There, you can also find a copy of today's presentation materials.