Jun 25, 2015
Vivo Participações S/AJuly 30, 2008
HIGHLIGHTSR$ billion
Vivo Consolidated
2Q08 2Q07 ∆% 2Q08 2Q07 ∆%
Service Revenue 3.0 2.6 15% 3.4 3.0 14%
Expenses (2.6) (2.4) 10% (2.9) (2.6) 12%
Ebitda 0.8 0.6 26% 0.9 0.7 16%
Ebitda Margin 23.4% 21.0% 2.4 p.p. 23.2% 22.6% 0.6 p.p.
Ebit 0.1 0.03 338% 0.1 0.1 36%
AgendaOperating PerformanceFinancial Performance
Vivo Participações S/AJuly 30, 2008
Mais de 8.800 pontos de vendas
412 mil pontos de recarga
Canais de distribuição
COMMERCIALPERFORMANCE
Nationwide market leader
Share of postpaid net additions leader: 36.6%
Share of net additions leader: 28.9%
Market Share: 30.4% in Brazil
GSM: more than 55% of our customer base
+ 2,125
+ 6,649
27,31831,002 32,690
6,468
7,307 7,745
2Q07 1Q08 2Q08
Prepaid Postpaid
RECHARGE POINTS
Thousand
thousand
40,43538,309
33,786
340412
30
4259
428
2Q07 1Q08 2Q08
Vivo Telemig
32%370
454 487
SAC*
Grow by 36% YoYin the investments with focus on customer loyalty
56% 55%
49%
25% 26%
21% 25%
19%
24%
2Q07 1Q08 2Q08
Subsidy Comissions Advertising
- 2.3%
- 17.3%
104
88 86
* Blended SAC
ARPU AND MOU TRENDS
ARPU MOU
16.216.316.1
13.8 13.2 12.6
2Q07 1Q08 2Q08
Outgoing Incoming
29.9
- 2.4%
- 3.7%
41 44
62
35 33
32
2Q07 1Q08 2Q08
Outgoing Incoming
76 77
9429.5 28.8
+ 22.1%
+ 23.7%
Operating PerformanceFinancial Performance
Agenda
Vivo Participações S/AJuly 30, 2008
AgendaDesempenho OperacionalFinancial Performance
Vivo Participações S/AJuly 30, 2008
10% 9% 11%
40% 41%
43%
48% 50%
48%
2Q07 1Q08 2Q08
Others WAP + ZAP SMS
2,963
3,347 3,390
+ 1.3 %
+ 14.4 %
NET SERVICE REVENUE
R$ million
RECEITA DE DADOS
230
343 352
10.4% of net service revenue
52.7% YoY growth
Data and VAS Revenue
Data and VAS Revenue
+ 15.4 %
+ 1.0 %
- - - Excluding Telemig
Operating costs under
strict control with focus on revenue growth
OPERATING COSTS*R$ million
*Excluding depreciation
155
198
764
575
723
182
198
188
735
534
801
184
197
176
909
604
967
176
Fistel, Fust, Funtel
H.R.
General and
Administrative
Selling Expenses
Good Solds
Services Rendered
2Q07 1Q08 2Q08
R$ million
BALANCE BETWEEN SALES AND PROFITABILITY
Consolidated Vivo
Revenue YoY 14% 15%
Costs YoY 12% 10%
EBITDA YoY 16% 26%
EBITDA AND EBITDA MARGIN
634
961800
124
104
79
2Q07 1Q08* 2Q08
Vivo Telemig
21.0%
28.8%23.4%
36.6%29.7%
21.6%
* Excluding extraordinary effect of ICMS on Telemig of R$240 million
758
1,065
879
22.6%
28.9%
23.2%
Consolidated Margin
R$ million
CASH FLOW EBIT
CASH FLOW AND EBIT
297.7
140.1
32.0
3.8
46.4
73.5
2Q07 1Q08 2Q08
Vivo Telemig
* Excluding extraordinary effect of ICMS on Telemig of R$240 million
105.5
344.1*
143.9
(278,1)
(588,9)
8.5
2Q07 1Q08 2Q08
(65.0) (59.5)
256.2
2Q07 1Q08 2Q08
R$ million
NET RESULTS
68%
32%
57%
43%
55%
45%
FINANCIAL RESULT, GROSS DEBT AND NET DEBTR$ miillion
2Q07 1Q08 2Q08
Short Term Long Term
4,967.1
3,859.8
5,764.8 3,574.3
2,227.1
2,988.1
2Q07 1Q08 2Q08
+ 16.1%
+ 49.4%
+ 60.5%
+ 19.6%
GROSS DEBT NET DEBT
(100.2)
(54.0)
(116.1)
FINANCIAL RESULT
68%
32% 45%
55%62%
38%
2Q07 1Q08 2Q08
CAPEX
MAIN INVESTMENT PROJECTS
Increase in GSM NetworkCapacity and Quality
Payment of 3Glicenses
R$ million
1.122,9
304.8 138.4 200.3
44.2 53.4 42.6
140.2
106.8 87.8
2Q07 1Q08 2Q08Network TechnologyLicenses Others
% Capex/Net Revenue
360.5 268.8
1.558,6 *
7.3%10.7%
41.1%
DISCLAIMER
This presentation may contain forward-looking statements concerning future prospects and objectives regarding growth of the subscriber base, a breakdown of the various services to be offered and their respective results. The exclusive purpose of such statements is to indicate how we intend to expand our business and they should therefore not be regarded as guarantees of future performance.
Our actual results may differ materially from those contained in such forward-looking statements, due to a variety of factors, including Brazilian political and economic factors, thedevelopment of competitive technologies, access to the capital required to achieve those results, and the emergence of strong competition in the markets in which we operate.