Telefonica Brasil S.a. · BMFBOVESPA:VIVT3
Telefonica Brasil — Q2 2024 Earnings Presentation
14 slides from Telefonica Brasil's earnings presentation, Jul 30, 2024
Slide 1: Results 2Q24
RESULTS 2Q24 July 29th, 2024 Telefônica Brasil S.A. Investor Relations
Slide 2: Disclaimer
DISCLAIMER This presentation may contain forward-looking statements concerning prospects and objectives regarding the capture of synergies, growth of the subscriber base, a breakdown of the various services to be offered and their respective results Our actual results may differ materially from thos
Slide 3: Growth acceleration in all key lines while customer base reaches its highest level ever
Growth acceleration in all key lines while customer base reaches its highest level ever Growth Profitability Sustainability 2Q24 Mobile Postpaid Accesses Total Revenue EBITDA Net Income 1H24² +7.2% 64.0 mn +7.4 % +7.3 % R$2.1 bn YoY 100.9mn Total Mobile YoY YoY +8.2% YoY Accesses (+3.3% YoY) Fiber H
Slide 4: Total Revenues growing well above inflation, supported by strong MSR and FTTH performance
Total Revenues growing well above inflation, supported by strong MSR and FTTH performance Total Revenues Mobile Service Revenues R$ million R$ million Postpaid² Prepaid +7.4% MSR continues to Handsets & +9.9% grow significantly Electronics due to solid Data, ICT & +8.3% commercial and Digital Servic
Slide 5: Vivo's mobile leadership is underpinned by ARPU improvement and churn at historical lows
Vivo’s mobile leadershi is under inned by ARPU improvement and churn at historical lows Mobile Accesses Hybrid to Pure Postpaid million Migration Mobile base YoY % As customers reached more continuously look than 100 million for a higher quality Prepaid -2.9% accesses, with service and more postpaid
Slide 6: Improved fiber ARPU and net additions driven by the convergence proposal of Vivo Total
Improved fiber ARPU and net additions mainly driven by the unique convergence proposal of Vivo Total FTTH Homes Passed FTTH ARPU million R$ Fiber + Mobile¹ Vivo Total Customer Base million FTTH Homes Connected million \ FTTH Net Additions thousand Vivo Total Highlights: • Vivo Total’s churn is ~1 p.
Slide 7: B2C new businesses continue to gain traction and relevance
B2C new businesses continue to gain traction and relevance, contributing to a solid expansion of B2C revenues Total B2C Revenues¹ New Businesses R$ million R$ million +34.6% New B2C new Businesses ealth ellness businesses Consumer lectronics represent 2.8% of total revenues (+0.6 p.p. YoY), Financia
Slide 8: B2B Digital services revenues remain on the rise, driving sustainable Total B2B growth
B2B Digital services revenues remain on the rise, driving sustainable Total B2B growth Total B2B Revenues¹ Digital B2B R$ million R$ million Digital B2B represents 32.2% Cybersecurity of total B2B i ital olutions revenues (+3.2 p.p. Digital B2B +19.0% YoY), and 6.7% of oT essa in Vivo’s overall reve
Slide 9: ESG continues to play a key role in our strategy, with new corporate targets for 2035
ESG continues to play a key role in our strategy, and we recently disclosed new corporate targets for 2035 ESG Targets 2035 CLIMATE Governance CIRCULAR ECONOMY Social Reach net zero emissions Collect an additional 225 tons of electronic waste through the Vivo Recicle Program in the next 12 years 5-y
Slide 10: Opex driven by costs related to strong commercial activity and digital services growth
Opex driven by costs related to strong commercial activity, growth of digital services and handset revenues Costs Cost of Services & Goods Sold R$ million ▪ Cost of Services evolution was boosted by higher sales Costs of 30% of costs of digital services in B2B and B2C and customer base growth +5.8%
Slide 11: Strong operating performance and Capex efficiency further raises our OpCF Margin
Strong operating performance and Capex efficiency further raises our OpCF Margin Capex¹ Operating Cash Flow¹ R$ million R$ million, 1H24 OpCF Margin¹ LTM % % of sales Efficient Capex allocation drives key results for Vivo, as we are the leader in 4.5G coverage and already offer a high quality 5G exp
Slide 12: The profitability of our business continues to improve, with solid free cash flow generation
The profitability of our business continues to improve, with a solid free cash flow generation Net Income¹ Free Cash Flow³ R$ million R$ million +8.9% +7.3% +23.1% Net Debt² -24.0% R$ million Jun-24 Net Debt including IFRS-16 Free Cash Flow Yield4 (LTM) Free Cash Flow/Sales (LTM) R$11.3bn 10.6% 14.8
Slide 13: Superior shareholder remuneration reinforced by IoC deliberations and accelerated buybacks
Superior shareholder remuneration reinforced by recent IoC deliberations and accelerated buybacks Shareholder Remuneration mount T pe of a ment ate of a ment illion Share buyback program ▪ We already bought back R$447 million as of July Outstandin oC 26th, 2024, equivalent to 9.6 million common rd A
Slide 14: Investor Relations
For further information Investor Relations ri.telefonica.com.br/en ir.br@telefonica.com