Telefonica Brasil S.a. · BMFBOVESPA:VIVT3
Telefonica Brasil — Q2 2022 Earnings Presentation
13 slides from Telefonica Brasil's earnings presentation, Jul 27, 2022
Slide 1: Results 2Q22
RESULTS 2Q22 July 27th, 2022 Telefônica Brasil S.A. Investor Relations 1
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: Accesses, revenues and free cash flow growing double-digit
Accesses, revenues and free cash flow growing double-digit, boosted by strong operating performance and incorporation of Oi Mobile's assets mn mn + % + % Mobile Postpaid Fiber Total Revenue Mobile Service Accesses Homes Connected Growth Revenue Growth 114 million Total Accesses +17.7% YoY Revenues G
Slide 4: Total Revenues acceleration, attesting solid operating execution
Total Revenues acceleration, attesting solid operating execution of Core Revs and Vivo’s top position in value proposition Total Revenues Total Revenues YoY growth R$ million, % of Total Revs % +7.6% ex-Oi Second quarter in a row with the highest YoY growth in >5 years, with positive trends both in
Slide 5: Core Businesses boosted by superior mobile performance and resilient fixed demand
Core Businesses boosted by superior mobile performance and resilient fixed demand Mobile Revenues Fixed Core Revenues R$ million R$ million Mobile Serv. Rev +9.4% ex-Oi ▪ Postpaid net adds ex-Oi ▪ …leading to high MSR ▪ FTTH reaches R$ 4.9 billion ▪ Data, ICT & Digital (+1.4 million) confirms growth
Slide 6: Vivo's unique capability of being a mobile + fiber player
Vivo's unique capability of being a mobile + fiber player driving second-to-none operating performance Mobile Operating Figures Fixed Operating Figures Mobile Customer Base FTTH2 Homes Passed million million +4.4% Ex-Oi: +1.4 mm postpaid net adds 354 cities Oi’s accesses profile are being evaluated
Slide 7: Digital B2B revenues maintain fast-paced growth, B2C initiatives evolve
Digital B2B revenues maintain a fast-paced growth, while B2C ecosystem initiatives continue to evolve Digital B2B Revenues B2C initiatives R$ billion 5% of Total Revenues Personal, 100% digital loan service with competitive rates continues to thrive, reaching >R$80 million in credit conceded Credit
Slide 8: Vivo issues first debenture linked to ESG commitments
Vivo issues its first debenture linked to ESG commitments based on its new Sustainability-Linked Financing framework Sustainability-linked Debenture Sustainability-Linked Financing Framework Funding of R$3.5 billion associated with ESG goals to be accomplished by 2027¹ Launch of framework to present
Slide 9: Cost structure moves with expansion in handset and digital services
As Vivo expands its reach in the handset and digital services markets, the cost structure moves accordingly, while also being affected by inflation Costs¹ vs. Inflation LTM²: Cost of Services and Goods Sold R$ million +11.9% ▪ Cost of Services up +16.0% YoY due to higher expenses related to digital
Slide 10: Acceleration of Fiber and 5G deployment while expanding Operating Cash Flow
Acceleration of Fiber and 5G deployment to maintain our leadership in cutting-edge technologies, while expanding Operating Cash Flow Capex¹ Operating Cash Flow¹ R$ million R$ million, 6M22 % of OpCF¹ Margin sales % 4.5G coverage² % of total 1st 1st 2nd population place place place leader 1 — ex-lice
Slide 11: Net Income affected by capital structure and one-offs; Free Cash Flow grows
Net Income affected by improvement of capital structure and one-offs, while Free Cash Flow generation grows double-digit Net Income Free Cash Flow² ▪ Increased debt levels, R$ million R$ million which improve our capital structure, coupled with higher average interest rates, negatively affected net
Slide 12: Shareholder remuneration remains solid, enhanced by share buybacks
Shareholder remuneration remains very solid, being further enhanced by share buybacks Shareholder Remuneration 6M22 Buybacks LTM R$ million Shares bought back in 3Q and Dividends + IOC¹ R$3.1 bn 4Q21 were part of the 14 million shares cancelled in Feb-22 + Share Buybacks R$0.3 bn Total R$3.4 bn % of
Slide 13: Investor Relations
For further information: Investor Relations w w w. t e l e f o n i c a . c o m . b r / i r i r. b r @ t e l e f o n i c a . c o m 13