Telefonica Sa · BME:TEF
Telefonica Sa — Telefonica S A — Investor Day (October 2009)
28 slides from Telefonica Sa's investor day presentation, Oct 9, 2009
Slide 1: Transformation for delivering sustainable growth
Transformation for delivering sustainable growth Julio Linares Chief Operating Officer 9 October 2009 Telefonica
Slide 2: Disclaimer
Disclaimer ‘Ts resentation consis statements that conse ferward aking statements abot the Company. within the general meaning of he term and within he meaning pliable securis laws ning nancial projections ad estimates an thee statements repping These -atemers appear 3 numberof plats a ths document s
Slide 3: Content
Content Fi Feehinica
Slide 4: Customers will use communications more and more
Customers will use communications more and more ‘Customer demand drivers © Everybody and everything connected © Social networking ser Generated Content © Huge increase in digital content @ Hundred thousands of applications © eWorld: e-Health, e-Learning, e-Finance services, e-Travel © MaMé:smart met
Slide 5: New pricing schemes are viewed as a significant opportunity
New pricing schemes are viewed as a significant opportunity Enhanced offering ‘Value"driven bundles © Consumer: Communication (IM’, VoIP, e-mail), TV,File & content sharing, Home device @ More revenue per customer ‘management, Transactional services... Pate aikinass (ess churn) (© Enterprise: Virtua
Slide 6: Our markets still offer significant growth potential
Our markets still offer significant growth potential Strong customer demand drivers ica markets revenue’ Telefénica Total markets Telefénica 7 ‘Mature markets Telefénica 7 Emerging markets
Slide 7: Content
Content be, Fi Feehinica
Slide 8: Our strategy enables growth potential to be captured
Our strategy enables growth potential to be captured Emotional relationships VN ) Emotional Transactional ‘engagement| relationships Connectivity Service @ © © @ CEC mC mC) Apps. &NB' MBB FBB Traditional Fi Feehinica 7
Slide 9: Customer focus and consistency
(@ Customer focus and consistency ‘Cistomer journey ‘Our targets © cst leaders across footprint by 2072 © Outperforming the industry in market share by customers and revenue © Incumbents: 2pep. @ Non incumbents? Emotional engagement | @ Improved churn:
Slide 10: Development of applications and new business
@ Development of applications and new business ‘Mobile applications: FY 201ZE Global Te branded and rd party services (Open Me Rana) baal a Gonna Wr cae on ‘VoIP ...), communities, transactions and % ‘entertainment (mstore), deploying new monetization a Apps. & New business revenue’ models (advertis
Slide 11: MBB accesses
‘MBB accesses! mili plicit, convenience) and facilitating Internet access: (© Differentiate positioning across footprint (complementary to F88 vs.substitutive) {© Lead the small screen opportunity by supporting mobile applications and selectively exploiting exclusvities and attractive prices (c€150)
Slide 12: DSL upgrade and selective FO deployment
@ DSL upgrade and selective FO deployment Dsi: © Drive leadership through an increasingly segmented offer: © Entry level to expand broadband markets in low coverage areas and into low income segments (© Standard offer with speed adjusted to demand and ‘competitive dynamic 1 Premium offer at high spe
Slide 13: Retail accesses
Retall accesses! millions Bundlese Access & volce revenues Einbillons @ Defense and growth of traditional business Fixed Voice: Bundle access with fixed and mobile voice to retain fixed voice only ‘customers and increase fixed line value through BB adoption © Prepay BB model to defend access in low
Slide 14: Revenue growth will be based on broadband and mobile
Revenue growth will be based on broadband and mobile ) Traffic Brabytes
Slide 15: Content
Content Fi Telefonica
Slide 16: Profitable growth requires a new operating model
Profitable growth requires a new operating model Large developer, ‘community: ‘One development, Global applications Bandwidth Mobility Smart SIM. . Intelligent ‘loud services:Xaas! network: ICT Solutions © Identity Telepresence management © Content customization End to End Secur End to End QoS Fi Ve
Slide 17: Profitable growth requires a new operating model
Profitable growth requires a new operating model Network: Processes: Ye Filenica
Slide 18: Profitable growth requires a new operating model
Profitable growth requires a new operating model Customer | Operational | Commercial | | activity activity | TT ey Network SS )>
Slide 19: One Multi-access network to enable growth and efficiency
@ One Multi-access network to enable growth and efficiency pz» Efficient Capex management: FY'20IZE \inimize investment in copper plant @ Migrate to wireless for unprofitable COs? @ Contain 2G investment, as main areas are already covered Network & operation CapEx per access © Improve integrated acc
Slide 20: IT strategy as a key transformation enabler
@) IT strategy as a key transformation enabler © 6 Datacenters in mid to long term (from 70) ‘Common technical architecture and management process © One Global workplace Single personal computer, mal service, corporate network TT Capex 8 OpEx per access © Single architecture framework and foundation
Slide 21: Online at the core to increase agility and efficiency
Online at the core to increase agility and efficiency in our relationship with stakeholders ‘© Enhanced customer experience: Share of online transactions’ ‘© Move customer-facing activities online: marketing, sales, «e-Care, and e-Biling supported by one account approach ‘© Upgrade capabilities to i
Slide 22: Operational excellence will release resources for growth
@ Operational excellence will release resources for growth @ Maximize process automation: © Zero-touch copper: mini time ize provisioning and reduce delivery Non-commercial OpEx' per access © Customer selfservice:se-nstallation and self-care © Efficient delivery: increase quality by end-to-end traci
Slide 23: Commercial efficiency tailored to local market conditions
@ Commercial efficiency tailored to local market conditions @ New dynamics on subsidies: (Acquisition costs focused on high value customers @ Take advantage of increasing SIM only adoption 1@ Reduce retention costs through higher F&M integration and <> shifting marketing focus to service attractiven
Slide 24: Our management model maximizes the benefits of our scale and strategic alliances
Our management model maximizes the benefits of our scale and strategic alliances Multifocal integrated management Partnerships and iridustrial alliances Synergies from Strategic Alliances with other @ Customers operators O Factories fo =~ ems TELECOM os EA TELECom Pine @ >650 million combined © Proc
Slide 25: Transformation is key for our superior margin and efficiency
Transformation is key for our superior margin and efficiency yay O1BDA? S&S cana’ Einbilions ‘OpEx' per access ce ie JQ orscrenremnass™ Fy Plena ry
Slide 26: Content
Content Seal nIpIONN os
Slide 27: Our strategy delivers ambitious commitments for the coming years
Our strategy delivers ambitious commitments for the coming years Bs > J @ Emotional engagement (@) ‘Apps. & New Business aM vm @ Traditional CAGR 08-12 E — (B) ontine @ core es E> @) Operational excellence ® Commercial efficiency pcr? E> a Felina
Slide 28: 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