Telefonica Brasil S.a. · BMFBOVESPA:VIVT3
Telefonica Brasil — Telesp Holding — Q1 2010 Earnings Presentation
15 slides from Telefonica Brasil's earnings presentation, May 13, 2010
Slide 1: Telecomunicações de São Paulo S/A - TELESP Quarterly Results 1Q10
TELECOMUNICACOES DE SAO PAULO S/A - TELESP QUARTERLY RESULTS - 1010 P NYSE
Slide 2: Earnings Release 1Q10 - Index
Earnings Release ~ 1010 ‘elecomunicacdes de Sao Paulo S/A~TELESP ‘Sao Paulo, May 12,2010 INDEX HIGHLIGHTS 1 OPERATING REVENUES, 3 OPERATING EXPENSES 5 FINANCIAL DATA 6 ADDITIONAL NOTES 9 CAPITAL MARKET ce DIVIDENDS AND INTEREST ON OWN CAPITAL 12 INCOME STATEMENT 3B BALANCE SHEET 4 STATEMENT OF CASH
Slide 3: Highlights: Lines in Service and Broadband
Lines in Service – implemented in the second semester of 2009, the new operational model of Telesp with focus on quality improvement continues reflecting advances in the services and in customer’s satisfaction. In this context, we highlight the net additions of lines in service, both in March and in
Slide 4: Net Operating Revenues and EBITDA recovery trend
The Net Operating Revenues already showed a recovery trend when compared to previous quarters. It was observed a decrease of 1.7% when comparing 1Q10 x 1Q09, a reduction of 1.5 p.p. in comparison with the variation registered in the 4Q09 x 4Q08 basis. Such effects are explained by the increase of th
Slide 5: Fixed Telephony
Fixed Telephony Local: reached R$2,492.5 million in 1Q10, a decrease of 6.8% when compared to the 1Q09. This drop is mainly related to the drop of traffic VC1 and to the reduction of fixed-to-fixed traffic, besides the 3.3% reduction in the number of lines in service. On the other hand, it was regis
Slide 6: Operating Expenses
Interconnection expenses: in 1Q10 totaled R$1,142.3 million, remaining stable in comparison with the 1Q09. When comparing with the 4Q09, it was registered an increase of 6.9% mainly explained by a higher mobile ingoing traffic with the “15” use (selection code of the operator), by the increase of in
Slide 7: Annual Interest / Loans and Debt
‘Annual Interest Consofidated Currency we DueDate Short-term Long-term Total Loans in local currency BNDES Loan URTIP —TiP+3.73% Until 2035 343a36 622,807 3.955;083 NDES Loan URTIP = THP+3.73% Until 2035 32,782 62,188 7as70 Debentures Rs col+oas% Sep 2010 521320 © 4511320 Loans in foreign currency M
Slide 8: Telesp's Stocks Performance
Telesp's Stocks Performance (@ase 100 on March 31,2008) 150 70 30 cee: jul-08: Nov-08 Ss Mar-09- jul-09: Nov-09 s Mar-10.
Slide 9: Proposed Dividends
The dividends deliberated recently are described in the following table: Proposed Didends stre0 stro. s)38/2009 aries s2/g0/2009 ‘920760 aasaer7 0278036 0732278 920760 oatz04s osse138
Slide 10: Income Statement
INCOME STATEMENT (Gross Operating Revenues Fixed Telephony Local service Domestic long distance International long distance Interconnection Data transmission PayTV Others Taxes (Net Operating Revenues (Operating Expenses Interconnection expenses Personnel expenses, Outsourcing expenses Bad Debt prov
Slide 11: Balance Sheet
BALANCE SHEET ASSETS ‘Current asets CCach and cach equivalents Cash Financial investments [Net accounts receivable from customers Supply and maintenance inventories Recoverable taxes Recoverable prepaid expenses Credit from associated companies Derivatives operations Other assets Non-Current Assets
Slide 12: Statement of Cash Flow
STATEMENT OF CASH FLOW Cash and cash equivalents at beginning ofthe period 22770 17410 308 nee ere 4030 483.4 (66) Non-cash expenses (revenues) 6763 7732 (25) Depreciation and amortization 5687 6508 (6) Exchange variations on loans and financing 07 7a) na Results of equity accounting (4s) 67) (203)
Slide 13: Tariffs
Notes: a) Effective as of September 16, 2009, the maximum net tariffs of Local Services, through Anatel's Edict# 5,180 of September 11, 2009, had an readjustment of 0.98% throughout the sectors 31, 32 and 34, incorporating the productivity gain of 3.9%, according to the foreseen rules in the Concess
Slide 14: Shareholding Structure
‘SHAREHOLDING STRUCTURE Telefonica, SA. Telefénica Internacional SA SSP Telecomunicscdes Participaées tda.
Slide 15: Disclaimer
DISCLAIMER This document 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 statements regarding the intent, b