Telefonica Sa · BME:TEF
Telefonica Sa — Telefonica S A — Morgan Stanley European TMT Conference 2004
15 slides from Telefonica Sa's conference presentation, Dec 14, 2004
Slide 1: Santiago Fernandez Valbuena, CFO of Telefonica Group
Santiago Fernandez Valbuena CFO of Telefonica Group a wiad Fe November 18", 2004 Barcelona (Spain) Morgan Stanley Telefénica, S.A, Visit our website Investor Relations @ Www.telefonica.es Anves tors
Slide 2: Disclaimer
TV EUROPEAN TMT CONFERENCE Dis claimer This presentation contains statements that constitute forward looking statements in its general meaning and within the meaning of the Private Securities Litigation Reform Act of 1995, These statements appear in a number of places in this document and include st
Slide 3: Telefónica offers a unique combination of growth, efficiency and shareholder value focus
Telefénica offers a unique combination of growth, efficiency and shareholder value focus among incumbents = Wireline Spain: Broadband expansion » Wireline Latam: Positive Net Adds, Broadband, revenue expansion » Wireless: Marketleader, high growth, new markets FFficieny > = EBITDA margins among best
Slide 4: Telefonica: leading top line expansion among incumbents through customer growth
Telefonica: leading top line expansion among incumbents through customer growth ONSOLIDATED GROUP ‘ept 04/5 ept 03 operatin revenues growth fe] IMorgaii Stanley} NV EUROPEAN TMT | 7.63% | Ken CONFERENCE Telefonica Group Managed Cus tomer Growth (milions) 114.94 12.87 101.82 88.93 Septos Septos — Ser
Slide 5: TdE is the benchmark in Europe in terms of growth
TdE is the benchmark in Europe in terms of growth... DOMESTIC WIRELINE Managed Customer Growth operating revenue 0.74 0.14 19.49 TV EUROPEAN TMT CONFERENCE _growth 18.89 | Septos ADSL OtherLIS Septos Telefonica de Es pafia Revenue contribution : BB vs traditi 1 (*) Seamer) “atuona 1 Tralonal Senvces
Slide 6: Combining strong operating performance with a profitable growth profile
combining strong operating performance with a profitable growth profile ADSL Connections Estimated Group broadband market share Thousands) 430.0% IMorgaiStanley TV EUROPEAN TMT 144.4 2,157.8 2,660.5 186.9. 196-4 CONFERENCE Total its Netadas Total 08 Foe 7008 3008 Dees 3008 Sepoe More than 1.4 millio
Slide 7: Telefónica Latinoamérica: a wireline growing at a high single digit
Telefénica Latinoamérica(*): a wireline growing at a high single digit Revenues ‘Managed Customer Growth (€ in ilions) (rilions) tank » aft bi _—P BBP 026.0 ose 925 = (2239 ase Morgastaniey IveurowesnemaT 2. oe CONFERENCE ETT sapios ASL Other Septos (eonstant terms*] Helped by solid figuras at Teles
Slide 8: Leveraging on our efforts to expand ADSL growth
leveraging on our efforts to expand ADSL growth T. LatAm ADSL Connections =| (thousands) . 4,232.7 853.3 655.2 IMorgaiiStantey | aoag (222 TV EUROPEAN TMT CONFERENCE Septor _Maros—_—Septo3. Marat Septos: TELESP: TASA: ADSL Net Adds (Thousonds) ADSL Net Adds (Thousands) t 110,052 231,207 ase? Soot 45
Slide 9: Client growth: Telefónica Móviles leading revenues and managed customer base
$ clients growth... TEM OPERATING Telefénica Moviles is leading revenues and TEM! managed cus tomer base 30/0904 REVENUE GROWTH (Sept milion DP 256.4 EY => = Morgan Stanley = TEMstandalone 904 Telefonica fom 2008 for repr Telefonica, 5A 7g purposes amare alice” 2 Goa figures exeluse tne impact ofthe
Slide 10: Through intensive commercial efforts
through intensive commercial efforts TME SPAIN vivo (BRAZIL) TM MEXICO aMo4N03 change elo49mD3 change oN4M03 change +132% +70% +31% 67% +55% IMorgastanley| Gross Teal commercial Gross Total commerce Gross Teal commercial a ate tir al additions costs additions costs additions costs CONFERENCE Impacti
Slide 11: Despite strong commercial activity, we manage to increase efficiency
” | Morgaiistanley TV EUROPEAN TMT CONFERENCE Telefonica Des pite strong commercial activity, we manage to increase efficiency... TEF Group EBITDA margin 44.7% 44.7% 48.6% 43.6% 43.9% 2008 2008 2008 7008 om Based on strong efficiencies in wireline TdE Group EBITDA margin (*) T. LatAm EBITDA margin (
Slide 12: Consolidated OpCF (EBITDA-Capex) breakdown
Consolidated OpCF (E BITDA-Capé x) breakdown p QD 2:00 IMorgaitStanley TV EUROPEAN TMT CONFERENCE Group Cellar T lam Oth Total Group Group oe nual growth rate LatAm OpCF (*) Generation (Ein Wins} 1016.7 Mi ..and cash-flow generation at the group level, with LatAm as a solid contributor Strong effici
Slide 13: One of the most attractive shareholder remuneration programs in the industry
We have one of the most attractive shareholder remuneration programs in the industry Cash Yield (div.ebuybacks) 2.88% 5.92% ey | TV EUROPEAN TMT CONFERENCE 2004 Buyback Vield 2004-Cash Yield (*) = DIVIDENDS: MINIMUM OF 0,4 EUROS /PER SHARE DURING THE PERIOD 04-06 = BUY-BACKS: MINIMUM OF EUR 4BN UNTI
Slide 14: Conclusions
Conclusions «= A solid revenue profile across the Group, that ranks at the top of the sector, © Built through the balanced contribution of our three key business lines, namely Telefonica de Espafia, Telefonica Latinoamérica and Telefonica Moviles, i EULOUEANT A «= Which are sustaining revenue perfor
Slide 15: 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: December 14 th , 2004 By: /s/ Antonio Alonso Ureba Name: Antonio Alonso Ureba Ti
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