Slide 1: Rights Issue Presentation
Rights Issue Presentation 26 March 2015 Investor Relations Telefónica, Investor Relations S.A. Telefónica, S.A.
Slide 2: Disclaimer
Disclaimer Telefónica, S.A. (together with its consolidated subsidiaries, “Telefónica” or the “Company”) has filed a registration statement (including a prospectus), and expects to file later today a prospectus supplement, for the offering to which this presentation relates. Before you invest, you s
Slide 3: Offering summary
Offering summary • Share capital increase with preemptive subscription rights for existing shareholders • Public offering in Spain and Argentina and SEC registered offering in the US Offering structure • Listing of the new shares on the Barcelona, Bilbao, Madrid and Valencia Stock Exchanges and quot
Slide 4: GVT Transaction summary
GVT Transaction summary GVT Transaction Acquisition of 100% of GVT for a total implied consideration of Telefónica intends to subscribe at least its proportionate €7.45bn, through a combination of cash and a stake in share of Telefónica Brasil capital increase (approx. €3.4bn) Telefónica Brasil
Slide 5: GVT acquisition: The perfect fit
GVT acquisition: The perfect fit • #1 mobile operator in Brazil ► #1 ultra broadband (“UBB”) operator Leadership in Brazil • Fiber network throughout Brazil • Leadership in São Paulo • Majority of UBB clients outside of São • Best mobile network Paolo Infrastructure • Leader on 3G and 4G coverage •
Slide 6: Creating the Leader in the Brazilian Telecom & Pay TV market
Creating the Leader in the Brazilian Telecom & Pay TV market Significant Drivers of Growth and Profitability Leading Customer Satisfaction and 4 4-Play Readiness Brand Awareness Solid 3-Play Substantial Upside position 3 5 from Synergies 2 6 Leading Financial Nationwide Performance footprint and Sha
Slide 7: Key investment highlights
Key investment highlights 1 Ongoing Transformation Driving Continued Growth and Efficiency 2 Positioned for growth acceleration 3 Committed to financial discipline Investor Relations 6 Telefónica, S.A.
Slide 8: Ongoing Transformation Driving Growth and Efficiency
1 Ongoing Transformation Driving Growth and Efficiency 2012-14 2015-16E TRANSFORMING THE BUSINESS IN ORDER TO… …RETURN TO SUSTAINABLE PROFITABLE GROWTH • Investing to set the foundation for growth • Accelerate growth • Monetising data opportunity • Monetise booming data reality • Growing digital rev
Slide 9: Positioned for growth acceleration
2 Positioned for growth acceleration 1 • Strong macroeconomic outlook Returning to growth in Spain • Positive market trends: appetite for higher value services and market rationalisation • Key differentiation assets /infrastructure (fiber, Pay TV, LTE) 2 • Higher data adoption (LTE across markets; p
Slide 10: Committed to financial discipline
3 Committed to financial discipline Robust Balance Sheet • Financial flexibility recovered • Ratings stabilisation • Capital increase • Balance sheet de-risked (Venezuela FX adjusted) Growing cash dividend: 2015 2016 (1) • €0.35/sh. voluntary scrip (Q4 15) • €0.75/sh. Cash • €0.40/sh. Cash (Q2 16) •
Slide 11: Timetable for Key ongoing Transactions
Timetable for Key ongoing Transactions Expected Timeline 28 August 14 22 December 14 25 March 15 Q2 15 Signing of Exclusivity Anatel Approval of CADE Approval of Closing of GVT Agreement for GVT GVT Transaction GVT Transaction Transaction Transaction GVT May 15 Expected 19 September 14 Completion of
Slide 12: For further information: Investor Relations
For further information: Investor Relations Tel. +34 91 482 87 00 ir@telefonica.com www.telefonica.com/investors