Good morning, everyone, and welcome to our second quarter results conference call. As usual, we're going to be referencing some slides, which are available on our Web site. So if you would please turn to Slide 2 for our Safe Harbor disclosure. As usual, we will make some forward-looking statements and these involve risks and uncertainties and these risks could have a material impact on our results. On Slide 3, we define the non-IFRS metrics that we will be referring to throughout the presentation and you can find reconciliation tables in the back of our earnings release, as well as on our Web site. So with those legal disclaimers out of the way, let me turn the call over to our CEO Mauricio Ramos.

Thank you, Michel, and good morning, and good afternoon to everyone and thanks for joining us today. As you all know, we are living through very difficult and uncharted times and I hope that you and your loved ones are all staying healthy and safe. This is the most important message that I have been sharing with all of our Tigo employees, all 24,000 of them, as you can see at the top of Slide 5. And indeed, keeping our employees and our customers safe has been our top priority since day one. Over the last five years, as you know, we have been building a purpose-driven and a client-centric organization, one that is attracting a diverse and a talented workforce across multiple geography. And that is why I'm so very proud today to say that for a third consecutive year, we have been recognized as one of the Great Places to Work in Latin America. This is our highest ranking ever, and we're now the number one telco on that list. With that, it's quite obvious that this quarter has been the most challenging in our 30-year history, no doubt. The storm hit and it hit hard. But as you know, we reacted quickly and most importantly, very effectively because we now know that our response is indeed working and we'll show you why we think it is. As you know, we set out to sustain our market share leadership as part of our goals to face this pandemic, and we have achieved that and a little more than that in some key markets as we are picking up market share in some of those. We also promised to ourselves and to you to remain very focused on the long-term and to keep our course steady through the storm…

Thank you, Mauricio. And as Mauricio said, Q2 was a challenging quarter. But certainly toward the end of the quarter, we did see improvements in some of our KPIs, particularly prepaid, which started to show some signs of recovery and our subscription business stabilized. But B2B will take longer and we expect it may get worse before it gets better, especially for small business customers. So let's review the quarter starting on Slide 8. Q2 organic service revenue for the LatAm business was down 6.8% and for the record, reported revenue was down 6.4%, similar to organic revenue impact as other adverse FX movements by the inclusion of M&A. EBITDA was down 8.1% and that was basically on lower revenue and also due to a bad debt charge, which was roughly double our normal quarterly charge. We were able to offset some of this with cost reductions. Our EBITDA margin increased by 50 basis points to reach 40%. And importantly, our operating cash flow was $354 million were sustained in line with last year and we generated a very healthy margin of 26%. On Slide 9, this shows how COVID impacted the business along the lines that Mauricio just set out. The left-hand side of the slide, you can see that the countries with the greatest restrictions on mobility and that's Bolivia, Honduras and Panama. We also saw the biggest revenue impact. And on the right-hand side, you can see that the greatest impact was in the mobile business and more particularly in prepaid. Now on the positive side, Guatemala, Paraguay and Nicaragua proved more resilient and the home business has continued to post positive revenue growth. Slide 10, you can see this impact more clearly. Again, left-hand side, those three countries with the strictest lockdown accounted for nearly two-thirds…

Thank you, Tim. It's important for us to emphasize that Q2 was a tough quarter and we expect a challenging second half. But we've made it through the eye of the storm, we think, and now we need to continue to focus on the future. To continue with this analogy, our ship is not making water. We've remained on course and as a result of that, we remain very busy and very focused on building our networks and capabilities for our long-term journey, which remains very promising and one that we still have as are guiding north. So let's start with that very important basics on Slide 19. At a time when most of you are listening to this call, you're doing so from home and you're likely planning to work mostly from home for the next six or 12 months. But the reality in our market is that only about a third of the homes have access to a fixed internet connection at home. And many of these connections are at speeds of less than 10 megabits per second. This will need to grow and improve to support remote work, online schooling, video streaming and overall connectivity. This pandemic has made it very clear that having a reliable broadband connection at home and at the office has become a basic necessity everywhere and for everyone. Meeting that growing need is a question for us, making our networks available and for the markets to reach the affordability to buy those services. Now for the past few years, we have been building around a million homes per year and we have seen very strong customer take up. Last year, in 2019, we added more than 400,000 broadband subscribers to our network. And you can see on this slide that we are…

Bernard, if you can open up for questions, please?

Sure, sir. [Operator instructions] Your first question comes from the line of Johanna Ahlqvist from SEB. Please ask your question.

A few questions from me. The first one relates to -- it seems like sort of the main uncertainty going forward is the B2B business. So I'm just wondering sort of how you plan going forward. Do you expect sort of the B2B to get worse however the mobile sort of consumer business to improve or continue to improve? I read some statement that you stated that July was even slightly better or started better than June. And is that sort of the trend that you're seeing ahead for this year? And then, the second question relates to the bad debt. You've taken some in this quarter. I'm just wondering how you look upon bad debt ahead. Is this sort of the level what we saw in this quarter? Is that what we should expect also for second half? And then, last question for you, Tim, on taxes and financial net, what we should expect for the full year and the indication would be? Great. Thank you.

Thank you, Johanna, for joining us today and for your questions. Why don't we go backwards? Tim, you deal with bad debt and tax and then I'll talk a little bit about B2B afterwards.

Yeah. Sure. Okay. So taxes were a little bit up this quarter. But if you just look at them over the half, they were more or less in line on a P&L basis. We did do a restructuring in Paraguay, which would give rise to a slightly higher withholding tax this year compared to last year, but it will give us lower withholding tax going forward. So we haven't made any real changes to our tax kind of estimates for the full year maybe with the withholding tax in Paraguay, we'll add another $10 million to $20 million to that. So we'll be talking kind of high 200s to kind of early 300s, pretty much in line. On the bad debt, Johanna, it was very concentrated actually. It was very concentrated in Bolivia and El Salvador where we didn't have lifeline products and we didn't have the ability to disconnect people. We have very large levels of non-payment. Now we have seen that rectifying our collection levels now are pretty much in line with where they were pre-COVID, so that is comforting. I think the way that IFRS 9 works will be a little bit of a lag effect. But on an underlying basis, I think Q2 is the worst of it for the bad debt charge that we've had to incur. Mauricio, do you want to do the B2B?

Sure. So great question, Johanna, because indeed this is one of the areas that has received the less visibility from what I've seen. And you're right in the sense that this is B2B. This is one of the reasons why we want to remain cautiously optimistic about the future. And I'll give you some color as to why we say that. It is one of the reasons that we want to be cautious because we want to see what the impact of the recession and the lockdowns, in particular, has been on the different segments of the B2B. So let's take it by segment to give you a little bit of color. Let's start with the small offices and the small medium enterprises. Those have suffered the most as we expected from day one. I think in the last call, I said, one of my biggest concerns indeed is what's going to happen to the small businesses and the SOHOs, if the lockdowns continue for a long period of time directly correlated to the lockdowns because they're not having customers walk into their stores. Now I'm optimistic that when the lockdowns continue to resolve gradually because they're not sustainable in end markets, these small businesses and these small offices will come back to require broadband connectivity. And this is a two-sided coin here. We don't know today the impact of the economic downturn on those small businesses. It's still to be determined, and that's the cautious part of the equation. The optimistic part of the equation is that every single one of those in order to come back is going to require sustained and enhanced connectivity now more than ever. So they're going to demand connectivity. Now our approach to those has been two-fold. One, we put in place these…

Your next question comes from the line of Stefan Gauffin from DNB. Please ask your question.

So first of all, the $100 million in cost savings, you had $66 million this quarter. How do you expect this to develop in the coming quarters? And then, just to confirm, you still have some sort of -- end of Q2, you still had some 250,000 home subscribers and 500,000 mobile subscribers on lifeline services. How do you expect this to develop in Q3? And then related to that, how much did lifeline services impact revenue in Q2 in home and mobile revenue? If you can quantify that that would be really helpful.

Tim, do you want to take the cost? And I think we'll need to jointly tackle the second question to discuss some big picture and some financials in it, but I'm sure we can manage. So let's start with number one.

Yes. Okay. And Stefan, kind of -- just because we put the target out there, it doesn't mean to say we're just going to sort of set up shop when we hit it. I mean a lot of the actions we took in at the start of Q2, the end of Q1 were immediate actions in the business, some were easy to come through like advertising and some of them fell through naturally like commissions and things like that. So we were genuinely pleased by the cost reaction of the business to this. I don't want to reset targets every quarter. I think that we have a good target. We have a very good focus on costs at the moment. And yes, I think we will continue to be very, very focused on it for the rest of this year, but I don't want to reset expectations on those cost savings. The lifeline, it's kind of hard for us to sort of isolate the impact there. I mean clearly, what happens with a lifeline customer is that they become a non-paying customer, so they go out of our revenue. They fall out of our subscriber numbers, but we've maintained a network connection with them because we think a lot of them are basically facing the same challenges as everyone else is about not being able to get out, not being able to work or pay bills. And then a lot of them will come back. In fact, many of them have already bounced back. It was probably about, 60%, 70% of them have kind of bounced back. Yes. I'm not sure I want to speculate how many of the remaining ones will bounce back. But our team are very optimistic that a lot of those customers want the product that we supply. And in terms of revenue impact, I think all you can really do is compare the growth rates we had in mobile and in home kind of last quarter to this quarter. Home, last quarter, we did about 6% growth and we did about 2% this quarter. So that probably -- it's not all lifeline clearly but there's a big impact there. And on the mobile side, we were down about 10% this time around. Can't exactly remember where we were last quarter, but a bigger impact for us in mobile has been in home. Mauricio, do you want to speak to anything else?

No. Let me add a little bit to that. I think that was perfect. Thank you. And Stefan, that's really an important question and I think something that we believe we got right. As I said, in Q1, been through situations like this before and we very quickly reacted in the marketplace with this lifeline product. And it's been the right call for a number of reasons. Number one, it has allowed us to keep up to our social responsibility in the marketplace. I can, with a straight face, say that we have left no customer unconnected because we put in place this lifeline product. Now from a business point of view, we've kept the connection on. So that has allowed us to preserve market share and take away at a moment in time, commercial activity that would have been detrimental to facing our social responsibility, but also keeping our target for the year focused on cash flow. It has also allowed us to preserve the relationship with the client, which is very important because as you can imagine, as we reconnect these clients, we will save on the reconnection costs. We won't incur in reinstallation and then a reconnection cost and there won't be a significant subscriber acquisition cost, so this is definitely the smart thing to do. And from an accounting point of view, if you will, and I'm going to address the customer relation part of that because I think Tim addressed the more accounting part of that, it allows us to not have a contention relationship with the client because largely, we're not billing them for this. It only took us longer in Bolivia, but everywhere else and in El Salvador. Everywhere else, we were able to put this lifeline product early on. Bolivia and El…

Your next one comes from the line of Marcelo Santos from JPMorgan. Please ask your question.

I have two. The first question would be about potential disposals that you could make to help to further reduce leverage. Maybe would it make sense to dispose data centers? Or do you have tower assets that could be interesting? So some light on that direction will be interesting. And the second question is broadly about Tigo Money. So I guess we are seeing now the limitation that not having a digital account now, not having a bank account has on people. Can you discuss a little bit broader how maybe this might turn into an opportunity for Tigo Money, what you are doing in that front? What are your ambitions for that product? Thank you very much.

Sure. On the first one, on the potential disposals, you've seen it, Marcelo. Again, thank you for picking up recent coverage and doing it so diligently, and it's good to have you here asking questions now, good ones by that. You've seen us over the last five years as a management team, the active reallocators of capital from Africa to Latin America from tower positions that we thought were better used that capital in a different manner. So without keeping my hand with any specific mention here, you can expect us to be actively reviewing each one of the topics that you mentioned. Towers, data centers, infrastructure and we continue to actively review our options in Africa. And you've seen us do something just about every quarter. We did HTA and Jumia last quarter. So without tipping my hand one way or the other, we remain very, very active allocators of capital and we'll do that. And then, we'll do it with an eye on -- because things are different now, reducing net debt as we've done in the last couple of quarters. Now with regards to Tigo Money, I quite honestly hesitated a little bit on how much we should give it relevance today because what we've done is we've worked on it quietly and diligently to build a real meaningful platform. To give you an idea of what we have here, we have somewhere around 4 million subscribers in Latin America, pretty active subscribers. And they've increased their activity with us significantly in Q2. Governments are now realizing that we have a platform that allows them to distribute money, particularly in Paraguay, what we've totally used in Central America. And that's important because it's helping us do one of the key things for this payment platform to work, which is to put more money into the system. And now governments are realizing that this is a great platform to put money into the system. Great platform to do so that. And we're also seeing a number of retailers be open to the notion that this can be a platform for us to grow with them and therefore, enhance the number of uses that customers will have when they use Tigo money. So it's slowly growing from a cash in, cash out, peer-to-peer and it's enhancing the ecosystem. And that's what should expect us to do. I'm not going to sell you here a lot of stuff on how this is going to change overnight, but we are slowly building. First, a peer-to-peer platform with a lot of customer use and growing customer base and increasing uses for that, we're going to focus on that first. And then, what mobile financial services and fintech can do. There's many layers that can be built upon that but we're going to walk our talk first and go at it in steady increments.

Next question comes from the line of Peter Kurt from ABG. Please ask your question.

Question related to Colombia, please. Tim touched upon it earlier, particularly on the comments on the year-on-year EBITDA profit. There seems to be some puts and takes in Colombia this year versus last year. And I was just interested if you could give us a better feel for how you see that going forward. I'm thinking we have lower commercial activity, lower taxes, et cetera. Could you give us any further clarity on how we should interpret which helped you improve margin in Colombia, which is sort of higher than the savings you've spoken about? And how should we think about Colombia going forward? Thank you.

Tim, perhaps if you take the first part and then I'll jump in towards the end with a longer view on how things have expanded.

Yes. Okay. So yes, I mean the performance has been good in Colombia, actually, over the last four quarters or so where they've really got the grips now with the cost structure, I think. And okay, there was some noise in there because of prior year adjustments. But even excluding that, I think we're about 3% up, excluding the one-offs, which in this environment and compared to everywhere else, business is really a testament to the team on that. I mean, of course, there was some benefits from kind of holidays on tax and things like that. But I think that would be not reflecting the job the team has done to sort of say that it was things like that. I think there is a good fundamental kind of cost structure now emerging into Colombia. And I think once we get the revenue line going in the direction we want to get it going, it really is going to be the business that we thought it could be.

So adding to that, Peter, we're pleased with the way Colombia is progressing. We actually like the position we are in Colombia today from where we were just six months ago. Over the last five years, deployed a ton of fiber cable and successfully so. So that's giving us a substantial fixed fiber cable business to support our mobile business. We have sold for a handicap that quite frankly held us back for the last 15 years. It's not a small thing to have had to operate with low frequency spectrum against the rest of the competitors. And we're now the largest holder of 700 megahertz spectrum in Colombia. And as you've seen it, we're deploying it fast and quick and without hesitation because we know already that it's expanding indoor coverage and it's going to give us enhanced geographic coverage. Think of our mobile network now into the future as one that will finally, finally, and if we continue this pace quickly, match that of Claro in the country. That's a major difference from where we were before. That's our ambition. We have a network that really allows us to compete head-to-head with Claro. And we are ramping up our commercial distribution platforms in Colombia because we're ready to now think of ourselves as a true challenger with our kit in the toolbox to do just that.

Next question comes from the line of Soomit Datta from New Street Research. Please ask your question.

Just two or three questions for me, please. First of all, just on leverage. Tim, I just wondered, I think you reported a 3.24x at the end of H1. And could you maybe give us if there is one on, a, maybe where you would be more comfortable on what the kind of target might be? And what sort of run rate we could think about for that leverage going forward, I'd appreciate it. There's more uncertainty than normal, but anything you could add there would be helpful, please. And then, secondly, I guess more of a strategic question just on the residential cable business. Typically around the world and I think you kind of mentioned this as well, but at the moment significant demand for kind of home broadband. It feels a little bit like you're shifting more towards wireless at the moment in terms of investment rather than cable. I appreciate there's an affordability issue there. But at the same time, it could be argued you should really sort of put the foot down on the accelerator, pass as many homes as you could now, given the very good returns and the low cost involved with that. So -- and another way of [inaudible] is just sort of wonder why are some kind of in your universe kind of adding residential broadband subscribers, some of them are losing quite a lot. I'm just sort of interested if you could try and pull all of it together, that might be a bit long winded. And then, I did [inaudible] on Colombia. I just wondered here, are you seeing anything on the brand from one [inaudible]. And also, is there any prospect of winning back the wholesale revenues in the near term and bolstering the wireless revenues for you? Thank you.

Thanks, Soomit. Let me quickly deal with the leverage question and then pass it on to Mauricio. We've been --

Are you sure you don't want to go the other way around, Tim?

You want to do the leverage question?

All right. Go on. Sorry.

All right. Yes, but I'll say it on a public line. Yes. Leverage, we finished the quarter at 3.24. I mean that is on an IFRS 16 basis on a kind of maybe like cash base 3.07. And when we set out our target of 2x, it was on that cash basis. So we're still kind of north of where that is, but I think you've seen that we've made some good sort of inroads into our debt this quarter and we're very, very focused on it. So no real change in the targets. Soomit, I'd ask you to just be aware that we set our targets out on a pre-IFRS 16 basis, so that's about a 20-basis-point delta between the two. And we're relatively comfortable where we are at the present time.

Yes. So on the residential cable, Soomit and thank you for that question because it allows us to clarify something that indeed could have been potentially misunderstood, quite frankly. Big picture, totally completely great believers in residential broadband and the power of strong, robust fixed networks, not as a business case in and of itself. And then you've seen the results in the U.S., they speak for themselves. But also because, in our particular case, they underpin our mobile business, so absolutely completely fully, fully committed to residential cable as a strategic part of our story and you've seen us do that adamantly in the past, and we'll continue to do that into the future. Now the reason you see us and correctly so you perceive that this particular moment in time, we are more focused on the mobile networks is simply a matter of the things that we have to do right now. And that's because we bought the spectrum in Colombia and we bought the spectrum in El Salvador and they're game changers in both markets. I mean you may have not picked this up, but El Salvador is on the upswing. We're having the first moment of positive gains in mobile in El Salvador and that's on the back of deploying the AWS spectrum quite quickly. And I've already talked about Colombia. So just because we bought the spectrum, we can't just leave that capital there. If you buy the spectrum, you got to build the networks. And the same is true with the modernization in Nicaragua and Panama. Those are networks that if we modernize, we're going to reap the benefits of the synergies and the efficiencies or better modernize networks that have paybacks because they're more efficient in terms of energy and in terms of…

Next one comes from the line of Lena Österberg from Carnegie. Please ask your question. Lena Österberg: I have three of them, actually. If you were to estimate, roughly how much of the ARPU decline that you're seeing now do you think is temporary and related to mobility restrictions? And how much do you think is related to lower affordability and therefore, could stock -- stay a bit going forward as well, even after the restrictions are lifted? And then, I was also interested in exactly sort of how does your lifeline products work. How long can customers stay on this type of product? And how do you sort of -- do they contact you when they want to get back on to the normal plan or do you contact them? How does that work when they sort of sign back up again? And then, sorry to come back to this again about the cost reductions, but maybe to ask second question in a bit of a different manner. So you had $66 million of savings in the quarter. But what was the run rate that you ended the quarter with and entered Q3 with? Thank you.

All right. Tim, I hope you got your calculator out because there's a lot of math involved there. Lena Österberg: I always have it ready.

I know, Lena, [inaudible] on product afterwards.

I think the answer to your question predominantly, Lena, is FX. I don't think it's affordability at this stage. I mean it's a very complicated question because, for instance, on the prepaid side, what we have seen is fewer top-ups, but they're actually topping up more, but not really enough to compensate from what we had on a prior basis that's affected that. I think on the home side, I think that's mainly FX. We've had some -- and we certainly will see some benefit into the next couple of quarters of installation fees that we're charging in markets that will actually give us a little bit of a boost. Having said that, we're clearly not putting any price rises through at the present time and I think and without prejudging the rest of the year, I think it could be tough to look at price rises this year, which will give us an automatic attrition in ARPUs as we get more people coming in on to the entry level. So there'll be some impact from that. So I do think it's a mismatch of stuff. I'm not sure you can draw any real conclusions from ARPU. I think I made the run rate on costs. A lot of the cost adjustments we made were immediate. I mean there were -- the ERC bit was adjusting variable compensation, for example. The sales and marketing was adjusting, advertising adjusting kind of low levels of activity, adjusting commissions. So kind of this -- I think we're able to -- we put our foot on the brake on non-essential spend pretty quickly. So I don't think it's one of these linear things. This sort of takes time to build up, and you'll see a similar growth next year. As I said to Stefan, we've said $100 million. I mean we're not going to just stop at that but I don't want to be committing to increase it. I think we've done a good job so far. And we've got to balance that with seeing where we make investments, where we see pockets of demand sort of shining through for kind of growth in the revenue line. So I think [inaudible] Mauricio.

Yes. On the lifeline product [inaudible] product, Lena, very good that we can provide you a little bit of visibility on this. Think of this as temporary and very smart dynamic tiering or alternatively, as we're providing a premium that then we can't sell subscribers into. You can think of it that way. And the reason I mentioned it like this is because we've created an important gap between the normal product and the lifeline product. And creating that gap allows us then to have a very good success rate in bringing back those customers to the normal ongoing product from that lifeline product, while at the same time, we continue to keep them connected. And with that in mind, then the second part of your question is for how long will this stay on? The reality is this will be dynamic because in some markets, we put it ourselves. In some markets, we have negotiated it with the government. And it will be dynamic as the pandemic evolves. The important thing is it's in place, and we're having a really good success rate in bringing people back up to their normal products, again, think of it as dynamic temporary tiering or a premium that we up sell. And the last -- the third part of your question, I think you know the answer to, we do it very proactively, very, very proactively. And one of the smart things about this is we've kept the connection to do this. The boxes are in the household and the subscribers have are mobile, the postpaid service. So we have a dialogue with them and one that, as I said, is not terminated by bad debt. It doesn't require a renegotiation and as a result of that, we're having the success rates that we've mentioned before.

Thank you. Your last question comes from the line of [Bill Miller from My Capital] [ph]. Please ask your question.

My question has really been answered more than ever, but I hope everybody on your staff in the local countries has remained healthy. And have you had a lot of problems with the health of your workers in those countries?

Thank you, Bill. That is a fantastic question. We did the right thing. And I'm proud to say, we set out very early on, we tell everyone in our Tigo team that this was a moment in which we had to give our very best. We had to both protect ourselves, but we had to protect ourselves so that we could keep our customers connected. And giving that sense of purpose to the teams that have to go out on the streets to maintain service and to keep connections going and to make sure that people had connectivity throughout the pandemic was coupled with all the right, say, protocols, all the PP&E. But the most important thing is, it had a sense of purpose to our teams. And meanwhile, those that we could keep safer at home because they did not have to go out and keep connectivity, we were able to make for them available the opportunity to work remotely. And as a result of that, we have a team that is more purpose-driven than ever that has reacted so very positively to this and it's more engaged than ever. We have not had significant amounts of cases that differ from what the rest of the population is facing in our countries. We have had cases, Bill. They are in line with what our countries are seeing. We are providing all the support and all the protection we can to all of those. And we continue to remain and I say this without hesitation, an agent of positive change. All our stores carry out the best protocols. All our teams have all the protective equipment and we are being there the best we possibly can to do both things, protect our employees, protect our customers and continue to provide service. And the last point I'll make is kudos to the team for listening to the calls. Our service has been up and running 24/7 every single day without a glitch. So Bill, I'm going to take the opportunity to thank everyone on the Tigo team who's listening to them because they deserve a big, big thank you. All right.

All right. With that, I just want to wrap up and thank all of you for joining us today. I think you get the key messages we're holding and hopefully, picking up a little bit of market share. Our integration is on track and the synergies are slightly up despite the economic downturn. We are being successful in protecting operating cash flow. We're sticking to that $1.4 million number that we've given you and we're directing the business to make sure we hit that number. We remain very disciplined in our capital allocation. You've seen that quite clearly and focused on reducing net debt. And there's a change in our focus there that I think is consistent with the time we're living. And despite that, we continue to build for the future. And thank you for your questions, Soomit and others because we're building network where we bought spectrum and we're modernizing networks where we bought assets and that's what we need to do. And we're building our digital capability because we believe that broadband residential and mobile is the name of the game going forward. And so we're building this more robust, higher speed, more reliable networks and that remain the core strategies. And then we aim to couple and I hope you've seen this, this state-of-the-art robust networks with a pretty strong digital strategy. So if we have the networks, we have the commercial distribution, we have the spectrum and we have the digital platforms, then we're going to be right on the sweet spot of digital adoption and broadband adoption in our markets. It is as simple as that. And thank you for listening in.