Telefonica Brasil S.a. · BMFBOVESPA:VIVT3

Telefonica Brasil — Merger or Acquisition (August 2014)

9 slides from Telefonica Brasil's merger presentation, Aug 29, 2014

  1. Slide 1: Disclaimer

    Disclaimer This document contains statements that constitute forward looking statements about Telefonica Brasil S.A. (going forward, “the Company” or Telefonica Brasil or VIVO) including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and

  2. Slide 2: Post Capital Raise and Pre Transaction Structure

    Post Capital Raise and B Pre Transaction Structure B contrib nton siiemen 100% Enlarged Tele! Optional: TI/TEF Bra: Share Swap Telefonica Vivendi 8.3% of TI ordinary shares Enlarged Telefor Brasil

  3. Slide 3: Leading Integrated Telco Operator in Brazil

    @ Leading Integrated Telco Operator in Brazil Total accesses - 10 2014 (000’s) VIVO/GVT: #4 96,576 93,856 74,689 VIVO: #2 7,639 5,480 GVT: #5 1 1 1 el 1 sine eye | 1 Tekfinica | vivo @ GVT Net revenues - 2013 (€mm) r MIVO/GVT: #1 1,709 VIVO: #1 GVT: #6 GVT VIVO/G' 707 vivo: #1 GVT: #6 GT i 1 1 ae 21

  4. Slide 4: 1. Considers retail and corporate segments; Considers América Móvil Brazil only; Considers Oi standalone

    Source: Company filings, Anatel and Teleco; Converted to € using average 2013 R$/ € FX rate 1. Considers retail and corporate segments; Considers América Móvil Brazil only; Considers Oi standalone

  5. Slide 5: Network

    Network Telefonica Brasil to leverage GVT’s extensive metro fiber network to significantly improve its mobile backhaul outside of Sao Paulo (material increase in sites connected via fiber) Telefonica Brasil and GVT to consolidate and jointly plan their backbone to reduce present/future overlap and 3

  6. Slide 6: NPV at least €4.7bn

    • NPV at least € 4.7bn: „ Net savings from year one „ Run-rate operating and revenue synergies at least € 450 MM from year 2020; c70% of run rate by 2017

  7. Slide 7: 1. Defined as OIBDA-Capex

    Source: Broker consensus, not adjusted for differences in accounting policies 1. Defined as OIBDA-Capex 2. 2015 post includes run rate synergies

  8. Slide 8: Key Milestones

    Key Milestones Expected Timeline 28 August 2014 Nov 2014 Mid 2015 Signing of Exclusivity Signing of Definitive 1 [elefénica Brasil EGM] Agreement. Agreements I ' 1 ' ' < 1 > ' ' 1 ‘Sep/Oct 2014 H2 2014 I Mid 2015 Mid 2015 ' French workers’ ‘council review Exclusivity Period Telefénica Brasil EGM Reg

  9. Slide 9: Signature

    SIGNATURE 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. TELEFÔNICA BRASIL S.A. Date: August 29, 2014 By: /s/ Luis Carlos da Costa Plaster Name: Luis Carlos da C

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