TIM S.A. (TIMS3) Earnings Call Transcript & Summary

[Interpreted] Good afternoon. Welcome to TIM Talks Experience 2022. I would like to also share with you who are all here in this stage. It is a very special moment to me. This is where I started my career coming back to this house, which once is mine. My first internship was at TIM Brasil in 2002 -- 2002, 20 years ago, a lot of memories. I see some friendly faces -- those of you who are watching us. So right at the start, it is very good to be here. Let's keep going. This is our opening event and the program of TIM Talks 2022 has actions, which will go until the end of November, but I will not be stalling you out because afterwards, we're going to be having more details. So let's start. What a beautiful view do we have here, the modern art museum of Rio, one of the most beautiful postcards of the city, incredible architecture. And it's also one of the most important cultural institutions of Brazil. It is a special day. We are connected with over 10,000 people throughout TIM and the whole society, which can see the event on the website or YouTube TIM Brasil. We have people that are gathered here in the most important headquarters in 11 cities watching us. And how good it is to have so many people here, 300 people sitting here. We're going back to our face-to-face events, the energy of everyone, thus giving us their support. In the previous years, TIM Talks, we had development that is never ending. We connect everything that matters. We imagine possibilities. We imagine the future. Today, we're going to be talking about a future that is already a reality. We want to be talking about transforming connections. This is the model of TIM Talks 2022. And we're going to be talking about our intentions or propositions, things that change people's lives, that change businesses and they generate positive impact in the society. This is why we brought an important team of guests who are going to be sharing their initiatives and making it happen for the role of companies in the generation of social impact. Let's see what's coming ahead. We'll have the CEO of TIM Brasil, Alberto Griselli; Maria Antonietta who's a VP of People, Structures and Organization. At TIM, we'll have an inspiring key note speech of the Washington Commanders National Football League, Jason Wright; and also a panel with Alberto Griselli, CEO of [indiscernible], Rachel Maia, which is a counselor of company's founding of Capacity Institute and a member of the Consulting Council of Unisel Brasil; and, [indiscernible] Social Activists and Executive coordinator of Vina Web, a Business at Social Technology. We're going to end with a show that's going to keep you off your feet. Those of you who are online watching us, stay tuned. Are you all prepared? Yes. So let's go together, connections transformed. To start this beautiful time today, I'm going to invite on stage the President of TIM Brasil, Alberto Griselli.

[Interpreted] Hello, everyone. Good morning -- afternoon, everyone. It is a pleasure to be here, having as a master of sermons and employee of ours. Once TIM, always TIM. That's wonderful to have you here. So today, we are with such an important topic to your company, which is about connectivity, is about having a proposition, an intention. We're in a beautiful value center of culture, education, arts, which has everything to do with today's talk and has everything to do with our brand. After all, this is a democratic means. It is a diverse means, an inclusive means just as music, so it's part of our brand. We talk about technology, we talk about technology and everything that is around technology towards development to the society with a positive impact on people's lives. When I officially started at TIM as a CEO in 2019, I was the Chief Revenue Officer actually, and one of my first tasks was let's try and recrystallize the values of this company and the intention of the company. This was one of the first initiatives that I had. After this initiative was successful, what happened is that there was a new brand signature TIM imagine the possibility and together the choice of [ ISA, the Singer ] as the ambassador of TIM Brasil, that came together with the values of our brand. So the intention -- our intention -- the intention of our company, meaning the soul of what we do is what [indiscernible] is here, Jason, everyone is here, you will remember which is to evolve together with courage, to transform technology into freedom. So technology is the core into freedom, technology into freedom. These are connections that transform in the end of the day. So this technology into freedom is what we do every day in many of the activities of our company. This is what we have. Then we take connectivity to all municipalities of Brazil. We take our service there. We've seen in many occasions, the effect of the coverage of our service and people's lives that we didn't have before every day -- people have. But some people don't have it yet, but when they do get the emotion, the social inclusion, digital inclusion, as Paolo showed in a few previous meetings are really touching for the effect that they have. Now a few days, we are using 5G as a major player with being launched. Many people involved, we are covering democratically. Every city was going to be having 5G. A few capitals have 100% coverage in all neighborhoods. 5G, there was a neighborhood. There was a poorest of Sao Paulo. What's the name? Mario [indiscernible] I think it's the name. Now we do have right off the back 5G coverage at the ports neighborhood in Sao Paulo. So technology at the service of freedom and empowering our people. Availability of services, what we have, number one. Second of all is the availability of having digital services that we put on top of this coverage. Then what do we have? Entertainment, Netflix, up until Prime Video for free to all clients that are prepaid. We also had a nice initiative with much pioneering endeavor, which was to gather connectivity with credit. During the pandemic, it was a commercial success. Nowadays, we have 5% of the digital bank. So we have intention, we have business, we have results and outcomes. I'm going to go back to it. And most recently, we launched connectivity with education, meaning employability. And in many ways, we have a partnership with [indiscernible] that I'm going to be talking about that. We have positive women, [indiscernible] but availability of the service, as I said, value-added to our clients. And it's not just communication, it's time, also sponsorship. In the agenda, we believe we have value in sectors which are keen to us. Music, for instance, soon we're going to have Rock in Rio. Rock n Rio is the cherry on top because one of the largest musical events in the world with 5G. Well, anyways, but it's to an audience that can pay that ticket. At the end of last week, we had 2 days fully free at [indiscernible] with a full program. So we go from most exclusive event all the way to the democratization of music in several areas in Brazil, including Rio de Janeiro. We also have several other social initiatives that are -- that TIM institutes. The intention is to disclose science and technology for use and lately, the launching of Favela 5G, the 5G Slum. We're going to be talking a little more about that later on. So when we look at our intention, technology, to transform technology into freedom and empowering people, we do a lot already. Today, we are inviting in the talks for later on, but the key people that do that and that do of it, their own life mission. Meaning people whose mission in life is to have a positive impact in society. So those are people that are going to be discussing with us, debating their experiences and are going to add to our view in relation to our commitment. And then we will start a new journey, a new pathway to be defined to give more strength to this intention inside TIM. But I spoke a lot about 5G. Everyone's talking lot about 5G. 5G is a fad. Everyone talks about it. 5G, the 5 fingers of our hands. Each one has 1G. I spoke about this in 2 occasions. This is the third time I talk about it. Because in the end of the day, those are the guidance, the strategic guidance towards the next-generation team where the commitment with society is one of the most important elements. It is the soul, the intention of our business. I want to reread with you the 5 fingers in this context. Please put the 5 fingers up. The first finger is a thumb G, 5G. Scientific meaning is TIM Brasil, we are one of the major private companies in the country. We have 8 million clients. We have over 5,000 employees. We have over 250 spots of presence. We have the largest mobile coverage in the country. Anything that we can decide to do, we have -- will have a gigantic impact. Anything that we want to focus with a positive impact in the society will count on this strength of TIM Brasil. The second finger that is, which is the pointing finger is ambition, which is our intention is to leave a legacy to the Brazilian society. We spoke that the order -- the word of the day is protagonism. The second G is meaningly speaking many occasions that we want to be leaders, and this is the way forward. We are inviting leaders, inspiring people to complement our mission, to increase the size of our inspiration. So this is to the intention. The third topic is the third G, the middle finger is to generate value. So when we talk about value added, we talk about the generation of value to our clients and to the financial market. This is to generate value to the society being the tripod, clients, financial markets and society. What is the secret to not getting lost in the trade-off? Doing one thing good and other things bad. I believe a lot is to design strategies that have as an objective to reach the tripod. Meaning a business strategy that can address the client, the financial market, which is the outcome of the company and also the society. So I'm going to give an example looking at Maria Antonio, what is that we do? One of our values is respect, respect is translated into what? Respect for clients, respect for ourselves, to our colleagues, to the society in general. Respect is translated into every field of inclusion and diversity. So inclusion and diversity plans that we have today, as I see, are fully integrated in the company. So we have internal policies, commercial communication. We have the support for our sponsorship, the choice of our influencers, the choice of our MC today. So it's part of the company. It is a difference that we make, which is fully inside our company. So we are able to set up a strategy with social impact by reaching a factor, an X factor with a positive impact to the society. This would be the further -- the middle finger. The fourth G, the fourth element and finger, which would be the secret of it all, would be what we call want to -- end-to-end management. The ring finger is to put this impact on the ground. In other words, hands on, making it happen. End-to-end, putting this as the objective of the business with everyone around, supporting this objective. And last but not least, the pinky finger would be the criteria would be the secret. Your attention or attraction is to make something as being a possibility turned into a reality. Meaning everything we do every day by challenging our beliefs into pushing forward. This internal view -- then we have all stakeholders involved, which are going round and round, which come with us to be able to power up our actions. And at the end of the day, we have our clients that can be catalysts of our situation. So if we think today, we spoke internally like best supply, best service, best network, the client chooses us for that. The client also chooses us because they see in our brand a true commitment with a legacy to the Brazilian society. So this element, this is the difference that we make in our brand, which is why the client chooses us. It is involved, engaged with the process together with us. So 5 fingers, 5 access of our strategy. Each one of them is different, but all of them are needed to get to the next-generation view. We have a leverage in our hand, which is the 5G, which creates possibilities that we can imagine and implement as always being -- this is just the beginning, and then we can use the debate today and later on in the whole program, which we're going to prepare for the next weeks. Thank you all.

[Interpreted] Big [indiscernible] for big challenge, right? Thank you, Alberto. Come back in the next panel, our guests CEO would like to provide to talk about this wonderful experience TIM Talks 2022, our Vice President of People and Cultural and Organization of TIM Brazil, please come here, Maria Antonietta.

[Interpreted] Good afternoon, everybody. How nice to see these people here, our colleagues, our guests, a big virtual greeting to everybody who's following us in Brazil or abroad. A nice talking with personal note, Stephanie said that she was coming back after 22 years. She began her career in TIM Brazil. I'm very touched. It's my fourth events since I got to Brazil, is the third open to community. I'm very touched with always the same way because it's always the same internally. Maria Antonietta, I came here last year, there were 10,000 people, nothing can go wrong. Imagine to some -- if I speak that Portuguese worth wrong. Imagine if the connection falls down, if everybody we invited nobody shows up, imagining all these disasters may happen. So I have always the same emotion. And that's why I feel touched, especially for 2 reasons. I told enormous responsibility of the success of this journey and the whole journey. And responsibility in offers something that can really add value to each one of you and to each one of this person, the people here and also because so much responsibility for our work because the work is all that we can see, everybody. But to organize this machine, we start working much, much before involving a lot of people of all the direct [indiscernible] team. So I like to be doing a big applause to all the colleagues that every year contribute to this wonderful TIM Talk. Okay. I'll start with the centers that -- of the closing of last year meeting. You all know that the TIM Talk hasn't goal to create element of open reflection, open to everybody on what impact of today that impacts the economic, social, cultural life of the country, and we talk about this. We cannot avoid talking about allocation. TIM Talk 2021, we spoke about future, something very important which I think of the future is, it has to do with our attitudes and the present, whether individual cost of a company that does today terminal will be doing in the future. So we -- now there's many things that were meant for the future are present now, but this also refers to our attitude, our behavior. That's why last year, we decided to choose one sentence, a symbolic phrase that will synthesize what means the future in education. And I chose a phrase of culture and education is our passport to the future, the loans to the people who today are getting ready to face it. However, access to technology is not everything. When we talk about the future, imagining that a digital future, a technological future. Note down, the first thing -- first thought is I must offer through technology, I must offer democratization of knowledge. This is a powerful thing. Imagine technology that allows something extremely powerful, which is education. To place infrastructure and to enable technology does not mean directly making a correlation between the evolution in the country and the society of a single person. To stimulate this challenge, I brought some data I'd like to share with you from our VP of Strategy. The data says that Brazil is on the most connected countries in the world. We all know this, that's a huge percentage to show you. 81% of Brazilian people use Internet, and Brazil is the third place in the world in time of using Internet per day and the second place in the world ranking of lasting in the Internet. Our level of digitalization is very high and Brazil has a very high level of digital -- the average Brazilian has a high level of digitalization. Our -- the daily used by banks and health is very high. We can say that Brazil is digitalized, digitalized count. However, when we work to see the level of digital alphabetization, Brazil is only in the 36th place in the global ranking of digital inclusion. So this is a percent that does not match the previous one. When we talk about the culture and education, we need to work with these 2 indexes because like we're going to give a powerful car -- you choose the car you like. I choose a car. Hey, let's deliver this car to a child, a beautiful child. And Ferrari, it has gas, okay. But if you don't teach the child or whoever to drive the Ferrari or to use the potential of the powerful machine is still not working for the digital inclusion. You're working for -- to enable something important, which is the availability of infrastructure, which is very important. It's a possibility to reach any neighborhood, any place in the world with your infrastructure allows -- one important thing, allows each one of us, whatever race, whatever social level, whether economic level has the power of the part of the world through what? Through the knowledge. So the true challenge is how to follow this evolution. This evolution means that improves the position of us. In this case, to the companies, in this case, we're talking about the role of a company like ours and how can we offer the size of infrastructure, also a follow-up of the cultural evolution, a solid one. This means the question and the thought of TIM Talks this year to use technology to maximize the knowledge of the people. And this comprehends also when we talk about digital technology, we talk about tech knowledge, we think about capacitation. So when we face a change of this kind, we need to know which are the limits and of the individual and collective potential. Why education is a powerful weapon? Because like any weapon, you must know what are the triggers and limits and the potential to know whether if we ask for it, which are our behavior in the social networks and ask whether when we imagine an enlarged infrastructure in places with low human development, are we asking if the people are really being included on how to use technology and help maximize technology and how to learn in a social network. For this reason, the climate, the humor of TIM '22 will have a focus of every panel, how to potentialize in every aspect, technology and culture evolution. This year, we'll have, like in previous years, a very rich panel. And we decided to keep that multidisciplinary mode because we believe they're putting together different points of view, academic versus professional. This is in itself an added value. However, in order to offer the possibility to everybody, to all panels, we decided to distribute every talk instead of 1 month in 3 months. And -- so starting from next week, every panel, every month, we'll have 2 talks, and we'll see which are the panels -- this year's panel. The TIM Talk experience for 2022 in September 15 with our Vice President, Renato Cluchini, Business and Innovation, which as external guests deliver a panel about the impact and opportunity in our system of startup and innovation, facing the challenges we have in the investment market. So the focus will be between innovation and startups. Next, with our CTO, Leonardo Capdeville, that will lead a very interesting panel, a virtual versus real and how technology will impact the business models. In October, we'll be opened by a panel that I will lead. And we invited some people from the academic world and of the business world to talk about the evolution of the work model from a different point of view, based on the people, look, what are the social goals for triggers that can limit evolution of the way of work or to drive it further? In October, we shall have another panel, lead by a lot of people, our Vice President and Director of the Institution, Mario Girasole and Our Vice President of Business, Bruno Gentil, a very interesting panel because we put together the construct of energy, by several points of view. And depending with external guests, we'll touch issues like environment and the economy focused on the energy in a very bright, wide aspect from a point of view sustainable sources of energy then going through circular economy and human aspects involved in this context. In November, we'll have a panel of Fabrizio Bozzetto with his external guests will talk about the evolution of the business models and the impact on the claim discussing the importance of clients in the journey and in the market region. And we'll close the journey of '22. Our CFO, Camille Faria will talk about the definition of our digital strategies. In closing, so our journey 2022 with a focus on strategy and values. So the whole program, as usual, will be shared in our YouTube channel, and you'll be able to follow [indiscernible]. Those of you who know me well that I'd like to close with the sentence that synthetized the year's event. And this phrase, I was in doubt what sentence to choose, so I chose those of our Brazilian [indiscernible] and that synthetizes very well, the aim of TIM Talk's 2022. Education does not transform the world, education changes people, and people change the world.

[Interpreted] So it becomes clear to me how TIM evolved from a telecom company to a company of technology locations and focus on people. So, everybody, we waited to see this. I'll do a little break of 20 minutes. But I draw, it's not yet, there are a couple of breaks. We'll be back in 10 minutes, okay? Thank you. [Break]

[Interpreted] Well, so talking about your intention about generating and promoting actions that impact people in, we have a special guest who's going to be bringing a bit of this trajectory and how their projects have generated impact. Our guest is from the U.S. I will now start speaking English, so I can talk to him. But relax, because those of you who need translation, we have simultaneous translation into Portuguese. And those of you who are virtually talking to us, translation will happen automatically like the Oscars. So let's go. Those of you who are here, just click on Channel 1, and you will be getting translation simultaneously. Everyone's ready. Let's roll. I'm going to invite our guest. He is a former partner at McKinsey & Company, Co-Founder of the Black Economic Institute Research Entity that analyzes the racial wealth gap and the prominent voice in public discussion regarding racial equity in Corporate America. He is the President of the Washington Commanders in NFL, the first black team president in the history of the NFL and currently is the youngest team President in the league. Directly from the United States, welcome to the TIM Talk's experience stage, Jason rights.

Thank you. And thank you very much. Certainly, it's my pleasure to be here. I'm excited to be here with you all because I see what you're doing today as something that can change the industry in the long run while building a great business for you as well. My name is Jason. I'm the President of the Washington Commanders, formerly the Washington Redskins. I've been the President here for 2 years. And as noted, I was the first black team President in the NFL's history, but it was significant to me because I also played in the NFL for 7 years as a running back from 2004 to 2011 before I went to business school and then became a partner at McKinsey. And so for me, being able to be in this role as a first and to advocate and create an organization that supports our players all around as people is something that's been important and groundbreaking. But while all that is great, and I can talk about some of the wonderful things that we have done for our players, allowing them to get engaged specifically to help laws pass around aspects of civic reform in our area, I could talk about that all day. But I do have a business to run, just like you all have a business to run. And while we should be good citizens of the corporate community, we should focus on social impact, we should all be focusing on racial equity because it's the right thing to do. We should also be focused on it because it's the prudent business thing to do. And so when I took over this organization, it was in a bit of a crisis. We had very low organizational health and culture and years' worth of accusations of sexual harassment and other issues in the organization. We are also in a decline from a business standpoint. We had a declining season ticket member base, declining sponsorship revenue, and we need to turn around the business. We also needed a new name. Our old name was considered a racial slur by many in the native and indigenous community in the United States. And we also need to find a new home for ourselves. Our stadium is out of its life cycle in 2027. And so we need to build and construct a new stadium. No shortage of things for me to do here, but that's why I took it on. And much like you all, I like taking on big and complex problems. But in order to do this, I knew that I needed to build a diverse team. I needed to have people that had different backgrounds and different ideas, different professional experiences, people who grew up in different areas of the country and the world to be on my team so that we had a great debate and great problem solving within our organization because the problems we were facing were challenging and very real. I also needed demographic diversity. Our leadership team is now 40% women, 50% people of color. And that background diversity has made us smarter. It's made us look more like our fans and our customers, and it's allowed us to have a great business transformation. Our organizational health in 1 year's time went from bottom quartile, very low performing to above the median and in the top quartile for the media and entertainment industry. And that is a great milestone for our team to have accomplished in a short amount of time. But we did that by turning around the organization and putting new leaders in place, not being able -- not being afraid to say goodbye to people that didn't share our values and to promote and reward people that did. It also allowed us to have a great business turnaround. We are leading the NFL in growth of our season ticket member base in the sale of our premium suites. And even as our organization faced a lot of tough headlines in the press, we grew our sponsorship base by about 30% year-over-year, and we're going to hit our highest revenue since 2005. It is a major milestone for an organization that was struggling. And it is not in spite of diversity that we were able to do that, it's because of diversity that we were able to do that. And that's the way that I know diversity is going to stick within my organization and in the NFL. And while we're going to be able to continue to do good for people who typically don't get opportunities to be enrolled like mine. Because when something is connected to the business, when diversity, when what is right, when social impact also helps you make money, not only will it be lasted, it doesn't depend on me in my view, it doesn't depend on you in your view, it's benefiting the bottom line, so it will continue going forward. But also, it encourages others to do the same. When I was put into the role, I was the first Black team President in the NFL's 100 year history. In 2 years' time, there are now 4 of us. The Baltimore Ravens, the Las Vegas Raiders and as of 2 weeks ago, the Denver Broncos. And it's not just because it's now the cool thing to do to hire back people -- it's because a team took a chance, chose to hire differently. And me and my team have shown that diversity is good for business and good for the bottom line. And so we will continue to see other teams make different decisions in the future because of our success. And so that's my encouragement to you. No matter what your role is in the organization, no matter who your clients and customers are, no matter where you're sitting, you have the opportunity to craft your team differently, you have the opportunity to be comprehensive in the hiring process. So you're seeing all sorts of talent. And then when you have people in the organization, you can be professionalized and inclusive and make sure that you are making sure everybody has a chance to succeed and that you're problem-solving processes, your decision-making processes are those that allow everybody to participate. Not just to make people feel good. I don't actually hear that much. It's about getting to the better conclusion. It's about getting to the better answer. And that's going to build your business. And then if you are running your team well and you're having success, other people are going to copy that. And the next thing you know, you have the good work you're doing multiplied across your organization, multiplied across your customers and clients and multiplied across the country in the business sector. And so I am excited for you all today. I know you have a great panel after this. That's much better than me talking at you. I hope to come down there soon and spend time with you all in the future because I do love a nice trip to Brazil. But we do have a wonderful time. Know that you have an ally here in the United States. We should be your favorite American football team. So I'm counting on that now that The Commanders are your favorite team. Pull for us this year and I will talk to you soon.

In fact, non-diverse organizations will fail to exist in the future, but in the near future. As a Lesbian Founder, as a Female Founder of start-ups, I have seen many, many people coming to me after I came out, and I only did it after I sold my fintech to a big bank in Brazil. And only then I could see the importance to have a safe environment in the company where you spend most of your life at, right? Thanks again, Jason. I'm going to have a 30-minute break and we will be back at the panel, Alberto and guests. Thank you. [Break]

[Interpreted] So we were back to our TIM Talks to 2022. May I remind you everybody that we're broadcasting live from the Rio with this opening event with a big theme to think about the role of companies from generation of value and impact upon society. So we've got one of the most expected moments and panel with Alberto and its guests. Alberto, please. Please come to the floor. And now one of the most influenced CEOs in Brazil, he became an adviser to company's consultant to universes and alter of the book by way until China #1, she's adviser to different companies. And on the course of allocating in Brazil is always in her radar. She is a founder of the and Member of the Council of UNICEF Brazil and also she's still doing mentoring with groups of women support them to rise on the magazine and the global newspaper. Our next guest is Rachel Maia, please welcome. And we bring journey involving publishing books, talks in schools and be considered by the World Economic Forum one of the Brazilian young people can change the world as part of Global and also in the listed 4 businesses, one of 30 most influence people in Brazil, let's welcome Eduardo Lyra, Founder of NGO. Most Welcome, Eduardo. Social activists, active as social projects in the Brazil slums, and making dialogue between the public service companies and billers. She's just a coordinator of final business wealth technology and social impact for young people in slums that takes care of young people in 24 states of Brazil, which has already graduated thousands of young people. We let us welcome [indiscernible] Gomez, better known as Cris Dos Prazeres. You are welcome, Cris. So first of all, I'd like to know a little bit. I know some of the history of most of you, but so that everybody be on the same page, I'd like each one of you to tell a bit of your story, please you start.

[Interpreted] Good afternoon. Congratulations, team. And I think everybody present, I heard wonderful things here and around you, Gomez. My name is Cris Dos Prazeres. And I'm very happy to be a women on impacting technology at this moment where we're fulfilling our normal role. It's nice that we are able to fulfill it.

[Interpreted] Hi, everybody. I'm Rachel, I'm 32, 33 years -- 52 years old and the member of Maria Antonietta. Yes, I'm adviser, but lately, I'm adviser to hassle the life of this planet to do with things a little wider. And so I'm very, very happy of having the previous call with Alberto to understand, yes, this is a space to be with much pleasure, to have this talk. That's how we share women within or with such company. It's a honor for me to be sitting next to them. And Edu, who's a friend who a long time friend. Sometimes ignores me, it's not so bad. We are together in our journey, one supports the other. And so now I hope to be closer to TIM, and hope to be a TIM client. I truly hope -- we must support those who are -- who share with us the calls, we believe on next to me is the Edu, the next Edu means that TIM supports the goals I support the collective, one for all.

[Interpreted] Edu, it looks like you can go away with the presentation. Go ahead, please.

[Interpreted] Good afternoon. I'm so happy to be here with Cris. My congratulations and thank you, Rachel. She's a great friend that does everything I always ask her, her capacity. And I had the happiness of having dinner with Griselli. I was a very hard week. Griselli, what's the size of your goal? So we begin to talk so much to be -- I was touched. So I meant to have a dinner to put together 5 million. And I said, okay, I'm going to double my goal. And last night, we did a dinner in Sao Paulo. We broke all records. We put -- we managed to handle BRL 20 million. So I'm connecting with him to get inspiration for you of a large company that dreams big to do something even bigger in the Brazilian slums. Thank you.

[Interpreted] Very good. So as Alberto said the role of the large companies, large cooperations, one of the biggest corporations in Brazil. Our role is to drive any initiative of impact. And you dedicate your lives in such initiatives, I like -- Edu, please start talking about your NGO generation hogs, how, Geronimo coins is in your view today and for the future.

[Interpreted] I found the Geronimo coins 11 years ago in this quarry in my house, I was born in a slump in the Shack of -- my father went into the crime world. He was arrested. All the banks they tried to rob were all friends from my dinner. My father was arrested for bank robbery and all the banks who tried to rob, they were sponsoring my marriage. So that was a, oldest in bank robbery. What changed my life is that I had a great mother, who told me every day, my son, it doesn't matter where you come from, what matters is what you're going to believe in your future and she pushed me forward. And the result is that I found that [indiscernible] began in one slum and nowadays, we reached -- we're present in 6,000 slums Brazil, covering over 42% of the -- all the slums there is in Brazil. So Geronimo coins grew in the pandemic alone, we fed more than 5 million people. It's like if we had fed a whole city compete city during the year. We mobilized over BRL 100 million to do this act, but our vision is to feed poverty, our mission, why do we exist? Why do dedicate our lives is to transfer the poverty of a slum in a museum piece before Elon Musk colonizasmart..

[Interpreted] Rachel. It's a long career and a successful one. Rachel, I'd like you tell a bit about your journey. How does your initiatives relate with your aims at the moment. Nowadays, now that you are 20 million better than myself. Your actions are wonderful.

[Interpreted] Well, I'm 28 years now, 28 years of leadership. I became very young. I started with G14, but also I sat in the seat of leadership, having La Brazil. My English was the book is on the table. And so I decided to get the money and invest in myself. We spent 1.5 years in Canada. I went to Vancouver Island and the Pacific Coast, Canada. And when I came back, I keep looking for global companies, so it could put to practice what I learned. So for me, it was very important no matter the weight of the stereotypes in our region, not only in Brazil, but in the whole Latin America, but still I didn't want to matter too much having the doors closed. So after 3 or 4 months, I managed to do a -- I managed to join a pharmaceutical company called Novax, I managed to go through the depths. So I stayed some 5 years there. I was CFO, first as Controller and then CFO of the business unit of contact lenses. And that was very important for me because it was my first MBA in Brazil, my project was called Capacita mails with my journey of education. Education is power. Knowledge is power. But in that moment, no matter how much knowledge I have, the market still demanded too much and by the university, it was not a first class university. So in order to climb up for new positions, it was made clear to me, you have to -- you have to go to first-class university. So my first MBA in the [indiscernible] so I decided to leave the company and climb new horizons. So I stayed 9 months in Boston. I did my second Harvard Business School. I came back to Brazil. I took up the President -- I was the CEO of differently, the [indiscernible] different had to handle knowledge. People didn't have this knowledge, externally in Brazil was important. Tiffany was still the underdog. So I put Tiffany in the position that it comfort in the world since '18 something. And Tiffany, I did my third MBA in the USB. And from that moment onwards. I did my third MBA in the USB. And from that moment onwards, I understood nobody could question my curriculum is the matter of academic laurels, that was very challenging because my skills did not go beyond myself. No matter how important there were opportunities were not for me. So I still had a small child. I was following this process. I went on back to Brazil. I took the -- I was Head of Pandora I did the expansion of the brand, was another brand that was not known in Brazil. I did the expansion. I launched e-commerce of this company. It was very challenging because it's a Danish company. And the Danish company did not understand I was going to sell rings by e-commerce in the jewelry shops. We were pioneers and nowhere in the world was e-commerce for a selling jewelry. I was -- i did a 3D showcase. It was very successful. And then I did 1 more perfection for Executive President. I left Pandora and took up the President of I stayed 3 years when I began the I was already Head of the Council of UNICEF in Brazil. I was Head of the Board of UNICEF in Brazil. That was very funny because I was 2 years as a President of the Board of the UNICEF and some people who are present here remember that and so on. So excellent presence we had that moment on how to work with philanthropy and very power portfolio. So we launched 1 million opportunities this programming existence. Now, I think you folks who work with UNICEF this way. And I decided to struggle for Boards. I was called for interview. I was interviewed by hundreds of investors when I took up the Board of Vale. Vale is a very important Brazilian mining company. It's -- the Board is 2 men and a secret. And the second is myself. So this year, we began a big achievement. So the next assembly of the Board, another 2 women will join. So I'm very happy that I put a black woman in the Fiscal Council. These are stores that we can consider in a country that has 52% of women and 38% of the people are CEOs and 40% of women president. So we add to 4.6% of women, who are presidents of Board, who are not inheritors. And so we looked at the plurality. There was 0.4%. That was my person, myself. I was a CEO for a global company. I know how many are they now, 0, because I'm not any longer in a global company. So in this moment, a country that's 56% of black people and black has 0 women sitting in leadership. seats. So as an adviser, I decided to and strategically to know whether I manage it, I managed that. And then we changed certain figures. I'm also a consultant at the stock exchange. I help them to format this public hearing. And then I carry on my role as adviser I want to see many women. I want to see many of the for the plurality that I champion, I want to see much more black people sitting in that public that I see here in this public sitting in the leadership. We cannot fear the challenges to say that the company opens to learn with pleasure how to bring more variety. And here's the transformation. It's so simple to say that often I'm invited to leave the place but is part of the process. Thank you very much.

[Interpreted] It's very good, Rachel. The challenge about the Board's and since in Boards people have the pen on their hands. I have been talking about this on the environment side frequently at the ESG. And much of what we achieved in our place, but much still to be done. So we ask who is going to leave that seat for us to take that place. It's a big question but becomes a majority, not necessarily majority. We're not a minority, but we're minored so this is talk for more than minutes.

[Interpreted] Perhaps, we don't have to leave that chair. Perhaps, the innovation will bring new areas of opportunity. If this is a thing so we're not -- we won't be able to go forward, this well fear. It's not a human or else, yes. When I talk -- when I tell you that no, there's 38 per 62. So there are more men than women. But I sit in that seat as a President of woman was as a woman a man who put me there. So I count on talent as well. I count on the people say, "Look, the same seat is for you, all you for the man or for woman whoever. And I see this diversity that first was -- earlier was a factor of exclusion. We have the way to be dealt with must be the same opportunity. Otherwise, so I'm gathering a society, which is totally on the opportunity. What we have to do is responsibility of to generate diversity because the value -- everybody has its own.

[Interpreted] I'm Gomez, my name as activist is Cris Dos Prazeres. I'm from the Northeast. I was born in a beach I came to Rio de Janeiro at 14. At 16, I begin to notice myself more than people seeing me because they'll ever see me. So -- then, I began my activist, my feminism. And my personal turmoil -- like when I look at this public, I told Marina, where are the black people? Where are the black women? I'm looking for my trial. But we will -- at some point, we will find a much more mixed public on this moment here. So our platform of actors -- I began actually, at my age of 16, I look at the women health on -- health prevention health and education because I do not have that, neither in my childhood or in my teenage. So I was early teenager. I thought I can meet the society that it's very close, everybody is invited to go including the people are working as And we begin to build tools from inside. So what said because I never arrived. So we began to think on several methodologies and technologies that there is inside the -- most of the Brazil is a collective many technologies -- many tools for this technology to evolve that population. So they found me in a newspaper story, and they invited me to get to know technologies that connect everybody, right? So I understand nothing about it, but I want that because my CEO, they told me something very important. Technology is a much driver opportunities, how to create a tool? And there is a tool of final ending. So we're able to plan to build capacity, generate income to all this people in Brazil. So not only build themselves, especially have a life story that must be upset and also to enter the system that deny them. So as a big driver of education, a big business of social tech that builds capacity, qualifies, generalize jobs and income from Brazil. Our foundation has students in 23 states in Brazil. We have -- we aimed a 100% online. But that made us leave the and we learned that technology can unite us and how -- right from the beginning, we had the an important tool for digital integration, not only for gender equality because we still have -- we can learn anything in that space. But nowadays, we have over 5,000 young people empowered and they all go to YouTube. And I find myself that both my chief person and also I don't understand much about technology. I'm not a designer, not a programmer. What we teach is, I have Poison Girls coming from different slums in different places in Brazil who are doing computer programming for big companies. So in these 5 years, we have a despiteful journey. And our studio is on the web is a way to come here and see if you can well join us. Let's see the black people of the slums they have talent, and they can learn language and master this language and do it with quality, to run with quality your company. So take them. Let's hack the system, let's enter the technology companies and show that the Brazilian youth has power, all they need is opportunity to see themselves as a power. And our portfolio is very subtle because we come from a generation that's not learn -- does not use to learn and to research. So here is my [indiscernible], it is my coordinator with my team. She is 22 years old [indiscernible] is when we inspired from a young person to young person, everything is easier to believe in the capacity that many people do not give importance to. So that's the moment of creating this new normal. We need to take off the blind from our eyes and see the opportunities and ask, what do you want? That's what we ask. Not everybody goes to technology, but always will find themselves in the market that exists with millions of opportunities with open vacancies with no skilled labor, and we have to look at this youth. I'm a great champion youth, because in my youth, very few believed on me. So I can only think of all women like you and like you and many others have inspired me. In a moment, I was feeling alone. I found inspiration in other women.

[Interpreted] Alberto, after all of this, I hand over to you.

[Interpreted] Well, after all of this, I have the most conventional resume than everyone here around me. I have a do beside me as a mission of life. Gerando, which is to be doing work out in those slums. It is a big objective. It's wonderful, incredible. On my other side, 0.4%, the exception of the exception. And Cris, I am surrounded by people, I can say a bit because this is happening. People who make it happen, who do make a difference, in the beginning, I spoke about the mission of life, the mission of their lives. On our end as a great corporation of Brazil, we have here our commitment with several of the initiatives to improve people's lives. And the advantage is that we may impact a lot of people in our company as well. We, in education, want to center because education generates jobs. We want to have several initiatives. For instance, in [indiscernible] which is one of the most compliant education institutions in Brazil, they have a paid course under graduation course, also they have the free course. It is a module of the paid course. We started this initiative 12 months ago, and we have 200,000 courses already registered. So it's quite a figure. It's quite an impact. We have TIM Institute, which intention is to bring education as an endeavor. We have 700,000 people. These numbers are huge. So the idea in the panel is to be able to invite you and to actually give you another step ahead because by ourselves, we won't go anywhere. So here, the experience that you bring the potentiality of adding and enriching what we're doing will make it even more efficacious. So this is why together in a partnership, which is that Favela 5G. so you put technology available and you give them opportunity for people in the slums to be doing things. It's just an opportunity after all, but you have build, and you need to build an ecosystem around to turn opportunity into real life. And I think it's what we're going to be focusing on the next few months because technology is an enabler, enabler. It's an end, but there's context that makes people to stay to keep on studying, preparing. It happens. It's the context of those studying. It's much more complicated and challenging. But the idea is to bring the experience of people that are as inspiring as you all is to launch this debate is to promote awareness in the same lines, like diversity, education and to try and take this and translate this into our company. We can then enlarge efforts, we can make it even more tangible to our clients at the end of the day in Brazil. So it's a great honor really to have you 3 with us today because I think the first step of a journey that is very interesting that we'll be able to work together. So diversity, for instance, we did have a talk with Jason a bit before. Diversity to diversify is something that makes much more sense. When it leads to an impact in the actual business diversity, the plural view. A plural view of people enriches the debate, enriches the business itself, but it is a means for a company to be diverse because in the end of the day, we have better outcomes. This is also part of our social initiatives. In other words, if we can, for instance, take Favela 5G, which is not a social project, it's a business project with a business outcome, which will have a positive impact in the social area. This is when we can do this without having to do any trade-offs. And therefore, the impact can be much greater when compared to when objectives are not aligned. The idea the first project that we launched is to make this a social project, but with trade objectives so to speak. Do you want to say anything?

[Interpreted] No. I will have Edu speak before because I will have Edu speak first. It's a project with you. And then if you allow me, I would like to add a comment on the actual time to invest in diversity because many times you get confused with the immediate outcome, the medium and long run results, but please, Edu, go ahead.

[Interpreted] When I met Griselli, I was introduced to him through [indiscernible] I was looking at the world moving around the 5G. And my reflection on all of it was that one of the things that we believe a lot in Gerando Falcões is that we have to deliver the best to those people who are poor. When I went to Medellín in Colombia, it was the most violent city in the world, the Kali, cartel Pablo Escobar, everyone had a go-to-bed a curfew at 6:00 p.m. So they were able to put Medellín as one of the most innovative cities, even more than New York City and Tel Aviv. What called my attention is that the same quality of what we were delivering in downtown Medellín was the same quality of the Favela, the slums, meaning an escalator, a cable car, the Justice, the school, gas, basic water supply. Much of the concept of equity has to do with actually delivering more to those who are most in need. So what's the quality? You have 10 cookies, 5 kids. You give 2 cookies per each child, then it out. Equities to give more to the child that is more hungry or hungrier and 3 to those who are more need. So I was asking myself, how will 5G reach for those who have money, those who can buy an actual smartphone which is enabled to have a 5G technology. Why? Then I was in a negotiation with another company that was very much halted. When I met Ziro introduced me to Griselli and I told them about this dream my head. I said Griselli, the slums of Brazil are the major start-ups of Brazil. The landing mark these wonderful ladies here. So the Brazilian Favela, the slums have to be seen as a rocket base for launching new technologies out in the world. When the slums loans don't work, it's because the state has not put their hands on delivering the services they have too. So what I told to Griselli is that we need to be a first runner up. We have to have the first 5G slum in Brazil to position Brazil as a country who's capable of sorting out the issues. So yes, we sat down, signed an agreement and the [indiscernible] name was not my team [indiscernible] and they spoke to me so much, and they made an assembly, and there's a new name of the slum. Now it's called [indiscernible] because the mission is here we are not there. And in there, we have a project, which is a 3D project with dignity and development. We combine public qualities and social technologies to unleash value to break down the cycle of poverty. Just to give you some piece of information. Unemployment was 70% when we began the project against 12.5% of Brazil, the unemployment rate at the time. 8 months after is having from 70% went down to 19% unemployment. This year, we're going to have the first full employment slum in Brazil. So what I'm trying to do with my team is to create a prototype solution for the slum with up to 500 houses, meaning 80% of all slums in Brazil and trying to escalate this, asking a federal government for money to put their hands in their pockets in the city hall, in the government to do what's right to be done. Poverty and inequality are a shame. You can get on or like a gladiator to fight dignity for something to get it, there needs to be opportunity. And when we don't build the opportunities in that quality anywhere will affect everyone citizenship, including here in this room. So I think it's a matter of honor for us to be able to build this model. And I would like to close by saying that I see the slum as a great platform that we need to digitize it, we need to connect the APIs of this platform called slum with the business APIs of Brazil to generate income to generalize the economy, to build opportunities. The GDP of the slums is larger than the GDP of Paraguay. There are more slums in Brazil than people who live in [indiscernible] public policies don't touch them. We've always waited for a top-down change. It never came, and we were frustrated as society. So what if we ask civil society wanted to build these changes. Bottom up as an example that we're giving here at TIM of starting first, putting 5G in the slums. I think this can be a trend to Brazil.

[Interpreted] I believe the role of the company is exactly to guarantee that technology will not be just the tool of inequality. On the contrary, it will make people more closer together and with more opportunities. So please tell us how can a company like TIM to generate that?

[Interpreted] It's not just technology, for instance. Now we've just talked about the concept of taking 5G there, but it's not just to be that concept the project itself. There are many months ahead. But the point is 5G, okay, starting point, technology is up and so on and after with the ecosystem, with the partners we have, and then we will do like several activities of the call center. After the pandemic, the whole concept of a hotline, a call center, is completely different. We have 1,800 employees who work from home, working remotely, granting them a lot of flexibility and they're working at home, and they talk to our clients from home. Nothing prevents the 5G slum project to put given the availability of the technology to put opportunities to have a job there because it's not just to do with technology, but to create conditions that technology promotes the development of the slums like in the case here with [indiscernible]. So in there, we have to put this opportunity at the table. As I just said, we have a partnership with [indiscernible] which is to make education. It's free, okay? Free of charge. It's free to the clients. Any range, anything that you do and play. And this is something that we can bring from there can set up an innovation center? Yes, we can contribute with an innovation center because we are avid consumers. We generate innovation. In other words, technology is the first step. But we will take together with us with the set of opportunities that can go beyond banking services. I was talking to the digital bank in the morning. We need to give different access to credit because we have payments, we have credit assessment. So we can have somebody who are -- who's there and with their bank account, we see history of payment in our services of gas, credit access. If we create a virtuous cycle, that may contribute to the dream of overcoming poverty. But there are a lot of tools that we need to be taking there other than technology. So I think the full solution, which was together pieces to add value.

[Interpreted] Technologies and many data, lots of credibility that TIM as a brand has, and it's curious because you were mentioning something Cris that called my attention, which is to do with the talent repository. We have data saying that we will need labor, will be in shortage of labor in technology, and it won't be, I believe, people or university degree first-line people. The labor shortage will be from the communities, from the Favela, the slums Sabella. I want to hear you, Cris about these initiatives that you lead? What is your vision of technology of companies such as TIM?

[Interpreted] Wow, it's a big deal. When we talk about a new generation about new digital opportunities, people that are consuming hours and hours in social media that we, in fact, are having a process of guiding them through so that the time they dedicate to using technology needs to be quality time -- quality connection time, quality knowledge time. We know that you will not overcome poverty without knowledge. So looking at the impact after the pandemic, we knew that, but now we've gone deeper because we don't do technology with soul. What we do it with intention, not just thinking about the importance of a network to act and sheltered the use, but also to generate resources that are different mentally and especially having to do with education. There's a lack of labor, but it's not just any labor that they want. We know that these people are people that we want and we can indeed represent them, and they have to say, yes, I want that. As we do today on Vina Web, we can not only train them, but to work with the issues that are far away from what the society is seeing out here. So a technology class, where we teach them how to breathe, to meditate, how to deal with issues with challenges and how to look instead of being reactive, being seen work, working as leaders, understanding all the soft skills that the companies want from the staff. We're not just teaching code language, but we are preparing 1 more person in IT. It's not that, but we are preparing a citizen to the world. I think that education knowledge is the key of transformation. I invite you. You know I'm not because you know at all, but I invite all of you, the rest of you that are here listening and seeing us of reflecting ponder. How much we need to invest in education in this liquid world of technology? Time is now, future is here. We need to invest more and more in this area.