Slide 1: Telecomunicações de São Paulo S/A - TELESP Quarterly Results 2010
TELECOMUNICACOES DE SAO PAULO S/A - TELESP QUARTERLY RESULTS - 2010
Slide 2: Prices on July 27, 2010
PRICES ON JULY 27, 2010 ON – TLPP3 – R$ 34.99 PN – TLPP4 – R$ 37.10 ADR – TSP – US$ 21.15 Market Cap – R$ 18,425.19 million Telecomunicações de São Paulo S/A – TELESP (BM&FBOVESPA: TLPP3 and TLPP4, NYSE: TSP), releases today its consolidated results for the second quarter of 2010, presented in accor
Slide 3: Broadband and lines in service highlights
Broadband - offered under the brands “Speedy” and “Ajato”, already surpassed the number of 3 million clients with a net addition in 2Q10 of 173 thousand clients, thus overcoming a historical landmark of net additions registered in 1Q10. This evolution reflects the customer’s confidence on the Compan
Slide 4: Net operating revenues and EBITDA recovery trend
The Net Operating Revenues continues presenting a recovery trend when compared to previous quarters. In the second quarter of 2010, the net operating revenues present a slight drop of 1.0% in relation to the same period of the previous year and in the semester comparison it is observed a decrease of
Slide 5: Fixed Telephony
Fixed Telephony Local: reached R$2,543.7 million in 2Q10, a decrease of 5.8% in relation to the 2Q09, in comparison with a drop of 6.8% in the 1Q10 x 1Q09 basis. This effect is mainly related to the rise in the installation fee and local service revenue due to the positive net additions of 64 thousa
Slide 6: Operating expenses: interconnection, personnel, outsourcing
Interconnection expenses: in 2Q10 totaled R$1,081.7 million, remaining stable in comparison with the 2Q09. Such effect is explained by the reduction of fixed-to-mobile (VCs), practically offset by a higher mobile incoming traffic with the “15” use (selection code of the operator) and by the VUM adju
Slide 7: Loans and Financing
LOANS AND FINANCING (ithacond free) Consldated Cumenay AMULET Duta Shera ongierm, ‘Tl Loans in local currency NDES Loan URTIP TIL 43.73% ——_Until2035, 394205 3,515,098 2,809,305 NDES Loan URTIP TP +2.73% Until 2035, 22210 82,060 103270 Loansin foreign currency Mediocrédito uss 273% Until 2024 5732 2
Slide 8: Consolidated Schedule of Long-Term Obligations
CONSOLIDATED SCHEDULE OF LONG-TERM OBLIGATIONS: (inthoword feos) Year Amount 2012 206,674 2012 413,144 2013 412,838 2014 410,189 From 2015 169,910
Slide 9: Derivatives
Derivatives: all Company’s financial derivative contracts aim the protection of exchange risk resulting from assets and liabilities in foreign currency, in accordance to the corporate policy of risk management. Following this, variations on risk factors result in an inverse effect intended to protec
Slide 10: Financial Result
Financial Result: Until the period ended on June 30, 2010, the financial result reached -R$75.0 million, improving R$7.9 million or 9.5% when compared to the same period of 2009 mainly due to better results with derivative operations. In relation to the same quarter of the previous year, the result
Slide 11: Telesp's Stocks Performance
Teles p's Stocks Performance (Base 100 on June 30, 2008) 150 a0 Juno oct os Febo9 sun-09 oct og Feb-10 Jun-10
Slide 12: Recently deliberated dividends
The dividends deliberated recently are described in the following table: nepoastnitends anon anew ass 2 = ei we me | Re as aera aa Iatononncainl signee seems meso ane = Inarston un Capal g/30120 sipononp sone yao thio msi Nemiperst _stmaas Co tee es Shits sutane siasiano aon - 278 ine Dividends: (3/
Slide 13: Income Statement
INCOME STATEMENT (Gross Operating Revenues Fixed Telephony Local sevice 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 provisi
Slide 14: Balance Sheet
BALANCE SHEET asserts Current assets (Cash and cash 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 15: Statement of Cash Flow
‘STATEMENT OF CASH FLOW (Cash and cath equivalents at beginning of the period [Net income of the period 'Non-cash expenses (revenues) Depreciation and amortization Dividends and interest on awn capital prescribed Exchange variations on loans ang financing Results of equity accounting (Gain}/oss on a
Slide 16: Notes on tariff readjustments
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 a 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 Concessi
Slide 17: Shareholding Structure
‘SHAREHOLDING STRUCTURE Telefénica, SA ‘Telefonica Internacional SA ‘Sp Telecomunicacdes Fartiipacées da owner
Slide 18: 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