VIVO - Apresentation of 3rd Quarter 2009 Results

RESULTS3Q09

Vivo Participações S.A.November 05 2009November 05, 2009

HIGHLIGHTSR$ billion

3Q083Q09

Net Service Revenue 3.63.8

Δ %

4.0%

Expenses

Ebitda

Ebitda Margin

(2.7)

1.3

32 5%

(2.7)

1.4

34 4%

-2.6%

6.0%

1 9 p pEbitda Margin

Ebit

Net Income – R$ million

32.5%

0.6

133.9

34.4%

0.6

340.0

1.9 p.p.

8.9%

153.9%

Cash Flow – R$ million (216.2)620.3 n.a.

QUALITY INDICATORS

100

Customer Care Performance Index - IDA Vivo obtained the

maximum grade in

70

80

90

100

Player 1Player 2

l

maximum grade in

the Customer Care

Performance Index in

50

60Player 3

the last three months.

Quality Goals reached by Operators - PGMQ

90%

100%Player 1Player 2

Q y y p Q

80%

90%

Player 3

70%2007 2008 1Q09 2Q09 3Q09

Source: Teleco/Anatel.

Operating Performance

COMMERCIAL PERFORMANCECOMMERCIAL PERFORMANCE

+ 6,570

Nationwide market leader

GSM + WCDMA: 80.7% of our customer base

CUSTOMERS - thousand

48,84746,819

+ 2,028

MARKET SHARE - %QoQ YoY

8.1159.044 9.26742,277

30,5%31,2% 31,4%

MARKET SHARE - %2.5% 14.2%

34.162 37.775 39.58030,0%

29,3% 29,4%4.8% 15.9%

3Q08 2Q09 3Q09 3Q08 2Q09 3Q09

Pre paidPost paid

Post paidBlended

SAC BlendedSAC Blended

R$

- 7.2%

+ 1.3%

R$

24% 76 77

83

31% 36% 38%

23% 24%

23%

46% 40% 39%

Maintenance of rationality in 3Q08 2Q09 3Q09

Subsidy Comissions Advertising

Maintenance of rationality in

the customers acquisition.

ARPU TREND

+ 0.4%

- 10.2% R$

MAIN CAMPAIGNS26.4

29.426.3

13,010,9 11,0

16,4 15,4 15,4

3Q08 2Q09 3Q09

Outgoing IncomingOutgoing Incoming

MOU AND TRAFFIC TRENDS

MOU VOICE TRAFFIC

11.3%

0.0%

+ 16.1 %

+ 16.1% Million of minutes

8980

8911,023 11,022

12,800 QoQ YoY

3227

284.003 3.787

3.983 5.2% -0.5%

57 53 617.020 7.235

8.817 21.9% 25.6%

3Q08 2Q09 3Q09

OutgoingIncoming

3Q08 2Q09 3Q09

OutgoingIncomingIncoming Incoming

Financial Performance

Desempenho FinanceiroDesempenho Financeiro

NET SERVICE REVENUER$ million$

+ 4.0%

+ 4.4%

+ 4.0%

1.5691 463 1.531

1.654 1.679 1.710

3,644 3,630 3,789

1.463 .

Access and Usage

QoQ YoY

1.8 % 3.4 %

57 31 37

364457 511 Network Usage

Data and VAS

Others

11.7 % 40.1 %

4.7 % -2.4 %

3Q08 2Q09 3Q09

Others 20.1% -34.9 %

DATA AND VAS Data + VAS Revenue

REVENUE 13.5% of Net Service Revenue

40% YoY growth

76% YoY growth in Vivo Internet

Data + VAS Revenue

76% YoY growth in Vivo Internet

REVENUE – R$ millionINTERNET UNIQUE

USERS* - million

511+ 11.7%

+ 40.1%

9.1+ 11%

+ 41%

225237365

457 QoQ YoY

5 % 31 % 6.5

8.2

134 190 236

181

24 % 76 %

49 42 38

3Q08 2Q09 3Q09

Vivo InternetSMS + MMS

-11 % -22 %

3Q08 2Q09 3Q09

* Includes internet usage by handset (WAP)

Othersand internet usage by Smartphones and Datacards (ZAP).

OPERATING EXPENSES*R$ million

Service Rendered Goods Sold Selling ExpensesService Rendered Goods Sold Selling Expenses

-26.0%+2.8%

+9.3%

+ 0.9%

+ 4.9%- 5.0%

835 888 913 615 451 455 814 899 854

3Q08 2Q09 3Q09 3Q08 2Q09 3Q09 3Q08 2Q09 3Q09

General and Ad i i t ti

H.R. Fistel, Fust, FuntelAdministrative

+10.6%

- 5.9% - 4.1%+ 5.6% + 1.3%

+20.1%

161 137 151

3Q08 2Q09 3Q09

195 214 206

3Q08 2Q09 3Q09

194 230 233

3Q08 2Q09 3Q09

* Excluding Depreciation.

3Q08 2Q09 3Q09 3Q08 2Q09 3Q09 3Q08 2Q09 3Q09

$

EBITDA AND MARGINR$ million

BALANCE BETWEEN SALES AND PROFITABILITY

32,5%

34,4%

Service Revenue YoY 4 0%30,4%

Service Revenue YoY 4.0%

Costs YoY 2.6%

Ebitda YoY 6.0% QoQ YoY

1.324 1.198 1.404 17.2% 6.0%

3Q08 2Q09 3Q09

EBITDA EBITDA Margin

CASH FLOW AND EBITR$ million

EBIT

CASH FLOW EBIT

557,4 607,2

1.010,8

620 3 375,9

620,3

3Q08

2Q09 3Q09

3Q08 2Q09 3Q09(216,2)

NET RESULTSR$ million

340,0

133,9 172,4

3Q08 2Q09 3Q09Q Q Q

FINANCIAL RESULT, ,GROSS DEBT AND NET DEBTR$ million

FINANCIAL RESULT NET DEBTGROSS DEBTFINANCIAL RESULT NET DEBTGROSS DEBT

- 20.6% - 11.7%

- 10.3% + 6.0%

55%

(90 8)

3Q08 2Q09 3Q09

3.968,5 4.692,6 4.207,0

59% 72%

5,849.86,511.1

5,167.3

(192,1)

(110,4) (90,8)

41% 28% 32%

59% 72%68%

3Q08 2Q09 3Q093Q08 2Q09 3Q09

Short Term Long Term

CAPEX% Capex/Net Revenue

R$ milhões

21,3%

15,4%15,4%13,4%

606 8

868.4

621

548.7

606.8

Investments in i d 406

333

96 73 105152 127 111

capacity and improvement of GSM and WCDMA network

3Q08 2Q09 3Q09

Network Technology Others

RESSALVAS QUANTO A CONSIDERAÇÕES FUTURASCONSIDERAÇÕES FUTURAS

Algumas informações apresentam nossa visão de futuro e perspectivas ou objetivos, tais como o crescimento da base de assinantes, a distribuição dos vários serviços a serem oferecidos e os resultados provenientes dos serem oferecidos e os resultados provenientes dos mesmos. Essas informações estão sendo disponibilizadas com o exclusivo intuito de elucidar como pretendemos expandir nossos negócios, portanto elas não têm o p g pobjetivo de propiciar projeções para o alcance de tais objetivos

Muitos fatores podem distorcer nossos resultados reaispcomparativamente aos objetivos que foram apresentados, incluindo fatores políticos e econômicos brasileiros, o desenvolvimento de tecnologias competitivas, o acesso ao capital necessário para o alcance dos objetivos e o ao capital necessário para o alcance dos objetivos e o surgimento de forte competição nos mercados em que estamos presentes