Telefonica Sa · BME:TEF
Telefonica Sa — Telefonica S A — Investor Presentation (October 2009)
24 slides from Telefonica Sa's investor presentation, Oct 9, 2009
Slide 1: Telefónica España: Leadership as the base for the future
Telefénica Espaiia Leadership as the base for the future Guillermo Ansaldo 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 Fi Felefinica
Slide 4: Strong cash delivery despite a challenging environment
Strong cash delivery despite a challenging environment... Weharp macroeconomic TWiti’a consistent cash deterioration along 2009... delivery Gor (yoy) Gor-oz0s oper Roling months (Ein bilfons) 180 a8 eee a Sal Q407 Q108 Q208 Q308 Q408 QI09 Q2r0o Wedvets coumanysidica (Heya) | [ G07 Q1Os Gros —Qs0B QH
Slide 5: While preparing for the economic recovery
.. while preparing for the economic recovery EE} Retail fixed broadband market share’ (%) Mobile accesses market share? (%) >56% 5% 45% 44% Defend customer base Deca7e sundae DeeO7E un 096 (© “Best value for money broadband provider 2009" Consolidate leadership in ‘© “Best telecom customer care in p
Slide 6: Market is expected to start recovering by 2011
Market is expected to start recovering by 2011 >) and structural ‘opportunities Inthe market @ Voice usage recovery, particularly on mobile, in all segments @ Additional upside from penetration of fixed broadband and Pay TV @ Reduction of fixed accesses loss New opportunities and challenges ahead ‘©
Slide 7: Very well positioned within a rational competitive environment
Very well positioned within a rational competitive EE} environment ket share evolution (%)* Unparalleled ‘© Competitive positi mpetitive position mantained in starting point: the downturn 40% Noble sustained ede ‘© Revenue market share above 54%? 20% ma Deco? un-08 ec 8 tun 09 Telefonica Espaiia mob
Slide 8: We expect a more balanced regulation fostering new services and commercial flexibility
We expect a more balanced regulation fostering new EI services and commercial flexibility Areas already defined Key issues ahead © Mobile Termination Rates (4 € c by October 2011) © Spectrum: Integrated operator: ess impact than pure mobile. Net MTRs revenues / total Telefénica Espafia © Digital div
Slide 9: Content
Content Fi Feehinica
Slide 10: Our focus on customer and innovation is based on three key levers
Our focus on customer and innovation is based on three key levers © Channels integration Fixed + Mobile +IT converged portfolio © Full operational integration Teverage Movistar REBRANDING “tin. Customer © Brand repositioning during 2010 focused on ‘ech ‘customer satisfaction ‘SIMPLER and ADAPTED off
Slide 11: We will consolidate our leadership in the mobile market
We will consolidate our leadership in the mobile market... 953 @ Best-in-class handsets portfolio © Foster SIM-only offerings to capture the low cost market Sustaining market POEL MM © Lead the strong growth in M2M ]o Focuson“custmer valu" (s."pure acess share”) © Traffic hit by recession to recover
Slide 12: ...and reduce fixed line losses with a more valuable offer
.. and reduce fixed line losses with a more valuable offer Segmented bundled offer and customer development 2P&3P Retail fixed ‘accesses evolution rnillions VAS bundles:‘more services for the same price! : iste e ‘total asf pa cetouty ae bundles
Slide 13: We will continue leading and exploiting the fixed broadband growth
We will continue leading and exploiting the fixed broadband growth... Retail fixed BB accesses growth pesnonth millions \Value for the customer © The most complete portfolio of VAS for different segments © Exploit and develop our current VDSL coverage © Selective FO deployment as a flagship with pre
Slide 14: While capturing the mobile broadband opportunity
..While capturing the mobile broadband opportunity, = leveraging our distinctive capabilities (© Leverage FBB customer base market share to lead mos Foster Big Screen @ In the residential market only 5% of the current CC MBG customers substitute the F2B: road portfolio (prices) to diferent customers
Slide 15: We will develop new growth opportunities
We will develop new growth opportunities Futura Imagenio “entry level” Pay TV offer development (© Improving our content offer: both in standard yn and high definition © Leverage distinctive IPTV functionalities € Increase our market sharein desktop management 1c soltions and new CT TCLGMME © Secome
Slide 16: In summary, we will sustain market leadership while diversifying our revenue mix
In summary, we will sustain market leadership while significantly diversifying our revenue mix ocus on customer satisfaction will allow us to sustain our competitive leadership Broadband, Applications and others © Reinvent our traditional core yemeyy business Voice’ © Capture the broadband explosion
Slide 17: Content
Content
Slide 18: We have a track record on tight management of OpEx & CapEx
We have a track record on tight management of = OpEx & CapEx... We are a reference in efficiency We have a leaner OpEx structure. Telefonica Espa Personnel cost /OpEx? © We have been the first to “do our homework” ‘and restructure ourselves © ~30% reduction in Telefénica Espafia workforce tn FY2004
Slide 19: ...and new projects bringing more efficiency for the coming years
.. and new projects bringing more efficiency for the coming years (© Activity reduction through: 1 Provisioning and customer care automation Efficiency in © Integration of wireline and wireless networks operations 1@ Remote management of CPEs* © Outsourcing optimization: devote own resources in high
Slide 20: We will continue transforming our network to enable growth
We will continue transforming our network to enable growth... j=» © Deployment focused on capturing the opportunity: © Coverage increase (© Capacity & speed increase where required v © Maximize copper capabilities Dec-08 Dec 2E (© Progressive fiber deployment: acquiring experience to be prepared for
Slide 21: ...and to remain best in class in efficiency
..and to remain best in class in efficiency ‘More OpEX efficiency to foster 2008 Domestic business © Successful track record (OpEx + Capex)/ Revenue © New projects on track to generate new 87% efficiencies in all processes and areas 69% Tilefinica ~~ Capex savings will enable more’ transformation ©
Slide 22: Content
Content cus OO nd ison a Soe
Slide 23: In summary: Our leadership is the base for the future
In summary: Our leadership is the base for the future = © Market recovery start by 2011 and new opportunities ahead @ Rationality of competitive environment © Stable regulatory environment © QA, mitrand in customer satisfaction Our goal: Telefonica © Outstanding low levels of churn Espafia in © Mult
Slide 24: 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