Slide 1: Telefônica Brasil
Telefnica Brasil lef , 02.16.2012
Slide 2: Disclaimer
Disclaimer For comparative purposes, the 4Q10, YTD 2011 and 2010 figures were prepared on a combined basis. Thus, the quarterly and annual variations presented may differ from those reported in the financial statement filed with CVM through the form Quarterly Information — ITR. This presentation may
Slide 3: Agenda
Agenda Operating Performance. F Financial Performance. sf Strategic Review. _Tikeforica vivo
Slide 4: Operating Performance
O1 Operating Performance
Slide 5: We are already seeing positive results from our new offers
Fr We are already seeing positive results from our new offers Vivo Smartphone Tlimitado Vivo Sempre internet Fibra Otica Investor Relations Telefonica Brasil S.A Vivo Vocé Ilimitado " 17,3%: —_ oon 160% 16% 132% 16.3% * acceleration in acquisition 12.2% : of prepaid customers = + increase of recharg
Slide 6: Accelerated growth in total accesses mainly driven by the mobile business
We continue to see accelerated growth in total accesses mainly driven by the mobile business "Mobile Postpaid ‘mFixed Broadband mFixed Voice 3Q11 =Mobile » Fixed Investor Relations Telefonica Brasil S.A. Keefinioa | vivo
Slide 7: Telefónica Brazil increased its leadership in the data and postpaid segments
Telefénica Brazil increased its leadership in the data and postpaid segments 4a "Blended = Postpaid Broadband 4att "Prepaid » Postpaid 1011 2011 sant 4Q10 3Q11 411 Total ——Data =Voice = Data Investor Relations ca Velefinica | vivo Telefonica Brasil S.A.
Slide 8: Increased penetration of broadband, especially in FTTH, is helping to protect our voice customer base
Increased penetration of broadband, especially in FTTH, is helping to protect our voice customer base H 9M1t * Monthly average © Jato 2a10 3Q10 4q10 1011 2011 3Q11 4Q11 i 4Q10 311 4att “Considers 150 thousand TVA customers consolidated on June 2011, Investor Relations Telefonica Brasil S.A.
Slide 9: Our successful commercial strategy drove revenue acceleration
Our successful commercial strategy drove revenue acceleration contributing to build a strong set of financial results in the quarter R$ million 4Q11 2011 Net Operating Revenue 8,600.1 4.5% 33,171.5 4% Total Net Operating Service Revenue 8,437.1 6.3% 32,217.3 6.3% Wireless Service Revenue 5,108.4 14.
Slide 10: Financial Performance
02 Financial Performance
Slide 11: 4Q11 Mobile net revenue annual growth accelerated to 14.1%
4Q11 Mobile net revenue annual growth accelerated to 14.1% driven by the new campaigns and improved data usage sovnapeerna yoy i : : 18,644 141% 16,557 : er 3.279 ced ; 10,3% 115%) 2.440) 8,984 9,724 L i 4Q10 3a 4ant 2010 2011 2011 -3Q11 AQ HM Access and Usage _ ill Network Usage Data and VAS WE « D
Slide 12: Increase in customers with data plans and SMS usage led to strong growth of Data revenue
Increase in customers with data plans and SMS usage led to strong growth of Data revenue in the quarter and in the year 1 Messaging P2P Bt Internet Others Investor Relations e123 Yedonia_| vivo Telefonica Brasil S.A.
Slide 13: Wireline net revenue in 4Q11 remained almost flat
Wireline net revenue in 4Q11 remained almost flat due to reduction of fixed voice traffic compensated by growth in data 4Q10 3a 4aii 2010 2011 i Voice* ‘@ Data and Pay TV Others Investor Relations Telefonica Brasil S.A.
Slide 14: In 2011 the consolidated expenses increased by 4.8%
In 2011 the consolidated expenses increased by 4.8% keeping structural costs under control and contributing to the Company’s profitable growth panne i YoY 5.0% 5.0% 1.0% TAY 7.8% 35.3% 48% (438) (76) 105 (21,137) 18 (20,160) _(108) (473) 18 2010 Personnel Services Goods Sold Selling G&A Others —.201
Slide 15: 2011 EBITDA reaches R$12 billion and net result increases to R$5 billion
2011 EBITDA reaches R$12 billion and net result increases 18.2%, to R$5 billion R$ Million 37.7% r 38.5% 359% 36.3% 4010 ea 4ait 2010 2011 = 12,035 ast 12 3,108 2995 308 [: (41) W D (179) (143) 4Q10 3Q11 4a 2010 2011 @ EBITDA — EBITDA Margin H : (454) 6616 6,903 2,073 1,985 1,429 4010 [| 4aii 2010 2
Slide 16: Capex in line with the year guidance and strong cash flow generation
Capex in line with the year guidance and strong cash flow generation RS Million 78 15.3%" a 410 311 4a 15.2 2,072 —_ ae “= Short Term = Long Term li a [| it 4Q10 i 4Q11 2010 2011 1 Licenses acquisition == % Capex*/Net Operating Revenue Investor Relations Telefonica Brasil S.A
Slide 17: Strategic Review
03 Strategic Review
Slide 18: Our goal is to maintain our position as the leader and best provider of telecom services in Brazil
Fr Our goal is to maintain our position as the leader and best provider of telecom services in Brazil 1. Continue to grow voice and data business with profitability 2. Constantly innovate and capture new business opportunities 3. Continue to strengthen our competitive advantage in quality and covera
Slide 19: Better income distribution is offering large opportunities for Telefónica Brazil
Better income distribution is offering large opportunities for Telef6nica Brazil. Breziten Secel Population % esses) 2009 ©2014 1.1BGE Investor Relations Telefonica Brasil S.A. Fr Continue to grow voice and data business with profitability We have an unique and complete portfolio to address these op
Slide 20: Constantly innovate and capture new business opportunities
B Constantly innovate and capture new business opportunities We will continue rebalancing .. by reinforcing new ... leveraging our our business... sources of revenues... capabilities with partnerships New businesses revenues Example: = Mobile pgoce:| On ry 4 Rich customer = Financial insight Service
Slide 21: Continue to strengthen our competitive advantage in quality and coverage
Continue to strengthen our competitive advantage in quality and coverage Focus on quality and superior Keep on extending coverage and customer experience technology advantages Vivo. 96.8 TIM 94.0 iti IDA Biri iS . >2,5K cities Mobile covered ——— with 3G jan/10 jan/11__ oct/11 a 2010 2011 Future DSL
Slide 22: Maximize operational synergies and become a fully integrated company
Maximize operational synergies and become a fully integrated company = Establish VIVO as the commercial brand for all the services in 1H2012 = Integrate culture and have a unified management = Rationalize and integrate IT, customer care, channels and customer intelligence = Enable and deliver operat
Slide 23: Signature
SIGNATURE 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. TELEFÔNICA BRASIL S.A. Date: February 16, 2012 By: /s/ Carlos Raimar Schoeninger Name: Carlos Raimar Sch