Telefonica Sa · BME:TEF
Telefonica Sa — Telefonica S A — Investor Presentation (October 2009)
20 slides from Telefonica Sa's investor presentation, Oct 9, 2009
Slide 1: Telefonica Europe: Continued outperformance from a broader business
w Telefonica Europe Continued outperformance from a broader business Matthew Key Chairman and Chief Executive Officer 9 October 2009 Telefonica
Slide 2: Disclaimer
Disclaimer ‘i reertaion conse statements tht conse frward okng statements abot the Company, within the general meaning ofthe term and win the meaning of ppb seus law ncn frac projectons and estimates and ther underyingstsumptons statements regarding pans. cbetves and expectations. These statements a
Slide 3: Content
Content Gane ane prowtue a bouts get yon’) SOK Fi Feehinica
Slide 4: In a fast changing environment we continue to outperform
In a fast changing environment we continue to outperform through the consistent driving of efficiencies and investing in the customer Telefénica Europe share of net adds! Mobile service revenue growth 2 years CAGR ending Jun-09 ote Telefénica Europe mobile service revenue market share’ ca call ‘elef
Slide 5: The context
The context EE) © Growth in internet-related revenues and new businesses ‘© Operators will deepen their relationship with customers as they manage customer lifetime value €@ Internet access across platforms becomes mass market as customers move their lives online © A patchwork of networks and device
Slide 6: To succeed we will need to deliver...
To succeed we will need to deliver... cial sucess tor Tay sore Erpezn er ‘© Excelling at our traditional business through customer experience leadership imternet a key growth engine ‘© Enabling customers to access the Internet however, whenever, and wherever they want (© Extending customer relations
Slide 7: Excelling at our traditional business through customer experience leadership
Excelling at our traditional business through customer =3 experience leadership Customer experience leadership is the key to This is critical to us and even more so to our traditional success... how will we deliver? business: growing in a mature market Differentiate - Simplify the business model Inc
Slide 8: Extending customer relationships into new areas where we can leverage our communications capabilities
Extending customer relationships into new areas where we 953 can leverage our communications capabilities Each country starts in a different place © Earning the right to enter new areas through customer experience leadership ‘© New areas will drive loyalty in the core business, provide new revenue a
Slide 9: Enabling our customers to access the Internet however, whenever and wherever they want
Enabling our customers to access the Internet however, whenever and wherever they want in a period of strong growth Access to the best devices: SSS (© “Home of Smartphones 2ooe zou a) © Enabling big scren via dongles and embedded SIMs rllors e (© Mass market smartphones < €150 Neep © Seamless connec
Slide 10: Two real examples of leveraging technology and our customer relationship in the UK
Two real examples of leveraging technology and our i J customer relationship in the UK llc itlahaci @ Leveraging customer insight for customer and @ Clear role for us between the customer and business partner benefits financial transactions using technology and © Now a reality ~ three examples: cust
Slide 11: Embracing customer behavioural changes to deliver to their needs and drive efficiency (1/2)
Embracing customer behavioural changes to deliver to their needs and drive efficiency (1/2) ‘© Efficiency improvement driven by a simpler business, networks 8 IT © UK and Germany making the greatest impact in the improvement Share of online transactions! Online at the core: sales, customer service,
Slide 12: Embracing customer behavioural changes to deliver to their needs and drive efficiency (2/2)
Embracing customer behavioural changes to deliver to their pz» needs and drive efficiency (2/2) Non-commercial OpEx’ per access Increased efficiency in areas that do not bitte provide differentiation: decreases streamlining non commercial OpEx tobe able to focus.on areas that customer value the most
Slide 13: Telefónica O2 UK: Customer centricity & consistency at the heart of our success
Telefénica O2 UK: Customer centricity & consistency at the heart of our success iPhone important but not a dominant Customer Satisfaction Index: factor in last two years performance Breakdown of contract net adds growth Hio7/109 iPhone Mae. Customer experience ‘Simplicity ona erceereeenetaecaas Fi F
Slide 14: Telefonica O2 UK: Focus on outperformance
Telefonica O2 UK Focus on outperformance ‘Contract churn evolution \rease our market —S FY 2008 FY 2008 Gy © More loyal customer leadership in chut ‘© Customer insight led approach 1 Balanced portfolio Fv20nE ‘© Exploit market consolidation: 1 The outcome is a positive for. 02 UK ‘© We will watch cl
Slide 15: Telefonica O2 Germany: Challenger position to increase market share
Telefonica O2 Germany Challenger position to increase market share Clear market challenger (e.g.0,0 no contract duration, no fixed fee, simple pricing and bill cap) ina market where most ofthe {1058 adds are churners (proportion of market gross adds driven by churns expected to grow from 75% in 2008
Slide 16: Telefónica O2 Germany: Strategic approach tailored to each segment of the mobile market
Telefénica O2 Germany ) Strategic approach tailored to each segment of the mobile market Total mobile! 02 Germany revenue market share 2008 (© Extend success of O10 based on customer insights segments by pushing established jing on new partnerships and unique service propositions © Broad channel app
Slide 17: Telefónica O2 Czech Republic
Telefénica O2 Czech Republic FBB market share of net adds Integrated operator = unique proposition ‘© Disproportionate impact of downturn on the business due to the weight of corporate and public sectorin the revenue mix ‘© Mobile contract: Neon proposition (flat rate tariffs for F&M), #1 in the las
Slide 18: A portfolio approach to growth
A portfolio approach to growth Contribution to Telefénica Europe OIBDA growth 2008-20726! ‘Access & Voice? 1 han ve and odrame Sew Bsn eek neem Monn me ag MOEN x Felefinica
Slide 19: In summary
In summary ‘© We have demonstrated clear outperformance driven by modus operandi: investing in the customer and driving efficiency © Broadening the business: Less reliance on the UK Less reliance on voice and text @ Ata country level: UK: Continued market outperformance in share of core and ‘extendi
Slide 20: 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