Telefonica Sa · BME:TEF
Telefonica Sa — Telefonica S A — Investor Presentation (October 2009)
33 slides from Telefonica Sa's investor presentation, Oct 9, 2009
Slide 1: Telefónica Latinoamérica: Focus to keep growing
Telefonica Latinoamérica Focus to keep growing José Maria Alvarez-Pallete Chairman and Chief Executive Officer ‘9.October 2009 Telefonica
Slide 2: Disclaimer
Disclaimer ‘Ts resentation consis statements that conse ferward aking statements abot the Company. within the general meaning of he term and within he meaning pliable securis laws ning nancial projections ad estimates an thee statements repping These -atemers appear 3 numberof plats a ths document s
Slide 3: Content
Content coun count) ory Fi Feehinica
Slide 4: Our story: years track record
Our story: 3 years track record ar niacees Jun-09 \ Jun-06 Jun-09- ci 08 H109 { +m%revenuegrowth ) [ -€15bnopce —) | a imme 112,000 children in Pronifio. ~ 63% Investment Grade* Se genie Fi Pelefinica 3
Slide 5: Macroeconomic strength
Macroeconomic strength 370% latam GDP “investment grade” GDP growth Constant prices T.Latam & Top7 ‘cadence thst t semerging from a short recession and may return ‘to growth as early as next yes FY 2008 £72005 #72006 FY2007 FY2008 FY2009E FY 20108 FYIO1E © Less dependence of the US | | Indicators ar
Slide 6: Solid and improving social structure
Solid and improving social structure Huge potential for consumption 25% GDP growth in the last four years Population ilo inhabitants ‘© Unemployment reduced from 11% to 75% since 2002 © > 50m people have left poverty since 2000 © Stable unemployment rate © Strength of middle class. realned © Better
Slide 7: lient b
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Slide 8: Content
Content county oY of untty, A ays Fi Felefinica
Slide 9: Growth & efficiency
Growth & efficiency Merman revenues! FY 2012E? vs. FY 2008 + € 23-31 bn Le 73% es Focus on revenue market share High OpCF generation 72008 rrione Fv2008 rraont “Je Felefinica
Slide 10: T. Latam: specific business projects and regional vision
T. Latam: specific business projects and regional vision i=) Fully capturing revenue growth potential e Customer centric organization (2) T.Latam’s growth driven by mobile @© was: the next key wave of growth @ Fixed evolving towards a BB company Transforma- tion to keep growing efficiently ‘Mobile:
Slide 11: Customer centric organization: Focus on quality
ea Customer centric organization: Focus on quality J ‘© Consistent delivery: Customer journey will Gedwod ccs sae drive CIB. CSI Improvement {COPC? methodology inal call centers @ CR! focus and improvement ‘Billing claims reduction r | (© Best customer experience: as) heal ‘@ Unique experience in al
Slide 12: T. Latam's growth driven by mobile
e T. Latam’s growth driven by mobile ‘Mobile penetration* © Capture growth through penetration & 130-140 additional accesses: market share ~65% mobile voice accesses? @ Increase points of contact (on-line, traditional distribution channel capillarity call centers .) @ Handset renewal and consolidati
Slide 13: MBB: the next key wave of growth
e MBB: the next key wave of growth J ( >100% mobile penetration’ Dec-12E What is the potential of mobile broadband a Gartner in Latam? BS eae © Segmented offer focused on services and not only speed or technological issues €@ Value proposal adapted to our market position and local assets (© MBB asa
Slide 14: Fixed evolving towards a BB company
e Fixed evolving towards a BB company © Reinforce our competitiveness due to the pressure ofthe cable focusing on bundling, quality, customer care, and differential DSL features (uplink download): ‘Evolving fixed copper network to support speed upgrades and place selective FO ‘improve ARPU: new serv
Slide 15: Mobile: balance commercial model and maximize efficiency
@ Mobile: balance commercial model and maximize efficiency t=) ‘Mobile commercial OpEx + COGS' © Selective reduction of subsidy levels, subsidy “0” in perrevenues all prepay adds © Increase of sim-only to reduce commercial costs © Distribution channel reoriented to up-seling, new services and retent
Slide 16: Fixed: focus on operative model
e Fixed: focus on operative model © Portfolio simplification & customer centric integrated attention @ Reinforce service providers alliances and review contract model and management practices (© Back office commercial services: Lean process. © Sales process: checkaall income customer orders to ‘guar
Slide 17: Optimize use of resources on the network management
Optimize use of resources on the network i=” management Network+ € tncrease network quality & performance: Ne acer (9 User and service differentiation by introducing ok End-to-End Qos mechanisms and generating new revenve streams {Protection of eitical networks implementing very demanding design and
Slide 18: Maximize the value of integration & regionalization
e Maximize the value of integration & regionalization ‘Major projects {© Regional handsets and SIMs purchases (© Shared service platforms (SDP Huawei & Teefénica) © Mobile regional projects © Regional Revenue Assurance Model Unique assets and services © Regional dedicated organization to provide <if
Slide 19: Long term view for sustainable and profitable model
@ long term view for sustainable and profitable model Renegotiation of the mobile cense Campus Party™ © Customer culture program:> 40.000 participants © Share best practices (© Improve 3rd parties satisfaction who ‘work in contact with customers © Identify talent profiles (© Public image impacts the
Slide 20: Content
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Slide 21: Our strategy adapts to the reality of each market
Our strategy adapts to the reality of each market Venezuela ‘Market revenue growth in local . curren ‘Argentina (+ 336 |) som CAGR FYO8-12E Peru Mexico 5% Central America Flag equals to proportional 25% Revenue market share FY 2008 revenue market size Fi Velefonica ,,
Slide 22: Brazil — Telesp
Brazil —Telesp Provide the best broadband experience in the market Opportunities & Focus Key strategic actions {© Starting point: recent redesigning of processes to provide consistent delivery. First positive signs already (remarkable net adds high satisfaction of new clients and significant reducti
Slide 23: GVT: a value creation opportunity
GVT: a value creation opportunity D> Gir cove © Allows nationwide footprint: very limited overlap 30% (© Accelerates Telesp’s plan outside Sao Paulo : A © Allows extension of innovative offer to the broad Brazilian market ARCS TS Sao Paulo © Successful challenger with leading broadband offering © Fo
Slide 24: Brazil - VIVO
Brazil - VIVO Leading the growth in an innovative market Opportunities & Focus Key strategic actions {© Starting point: ‘91 in market share, MBB, brand recognition and customer satisfaction ‘© Growth: gain revenue and access market share over 3 axes: | Mobile penetration: Se populaton ‘© Capture pro
Slide 25: México
México Continuing our positive track record Opportunities & Focus Key strategic actions ‘@ Starting point: Mobile penetration ‘@ Strong customer satisfaction % population © Growth: gain revenue market sh ‘@ Capture mobile penetration ‘Relevant player in mobile data ‘6 ARPU expansion by improving cus
Slide 26: Venezuela
Venezuela i } Consolidating our unique position in the market Opportunities & Focus Key strategic actions @ Starting point: ‘@ Strong customer satisfaction, coverage and customer satisfaction Customer mix ‘@ Best in cass in brand recognition and customer value @ Growth: ‘@ARPU growth developing an i
Slide 27: Argentina
Argentina Taking advantage of our competitive position both in fixed and mobile Opportunities & Focus Key strategic actions Dec-08 DecRE (© Starting point: ‘@ Fixed: huge advance on transformation ‘@ Mobile: strong focus on ARPU (th revenue market share and MBB leader) (© Growth: ‘@ Improve mobile m
Slide 28: Colombia
Colombia [> } Working on capture a profitable growth Opportunities & Focus Key strategic actions © Market consolidation and regulatory issues (mobile ITX. & Comcel dominance) ‘© Starting point: integrated approach to the market © Key priorities Customer mix T.latam ‘@ Channel distribution optimizati
Slide 29: Chile
Chile Maximizing the value of growth and efficiency with an integrated view Opportunities & Focus Key strategic actions ‘@ Starting point: 1 #1 market postion, both in mobile and fixed, and leadership in quality eral @ Growth: exploring collaborative areas between fixed and mobile 2 ostoay ‘ Mobile
Slide 30: Peru
Peru = Capturing the huge potential of penetration Opportunities & Focus Key strategic actions @ Starting point: ‘@ Leverage on market position and unique assets (Fixed, Mobile & TV) to capture ‘growth maintaining revenue @ Growth: ‘@ Improve customer satisfaction asa key factor on loyalty and churn
Slide 31: Others
Others @ Starting point: @ Starting point: 1 Very competitive environment and ‘@ Market share: positive track record complex economic situation Growth: ie conte ‘@ Huge potential in penetration Cher CEU EE) © FBB speed & low penetration allows Guatemala MBB growth (@ Focus on retention and maintain
Slide 32: In summary
In summary: @ Latin America has consolidated a stable macroeconomic situation that will allow a recovery in 2010, sooner than advanced economies © The region continues to record growth in consumption, a key driver for remarkable growth in our industry © Telefonica Latinoamerica has delivered an outs
Slide 33: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Telefónica, S.A. Date: October 9 th , 2009 By: /s/ Santiago Fernández Valbuena Name: Santiago Fernández
Telefonica S A — Investor Presentation (October 2009) on 6ix