Telefonica Brasil S.a. · BMFBOVESPA:VIVT3
Telefonica Brasil — Q1 2022 Earnings Presentation
15 slides from Telefonica Brasil's earnings presentation, May 11, 2022
Slide 1: Results 1Q22
RESULTS 1Q22 May 11th, 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: Closing of the acquisition of Oi Móvel to create value
Closing of the acquisition of Oi Móvel to create value through the incorporation of key assets, reinforcing Vivo’s leadership in Mobile Acquired assets Spectrum with Nationwide 43MHz coverage Mobile Customer Base 37% in postpaid and 12.5 mn accesses 63% in prepaid In March 2022, Vivo’s portion of Oi
Slide 4: Vivo hit the historic mark of 100 million accesses in 1Q22
Vivo hit the historic mark of 100 million accesses in 1Q22, posting 4.6% growth in Total Revenues and generating R$2.5 billion in Free Cash Flow mn mn + % + % Mobile Postpaid Fiber Total Revenue Fixed Service Accesses Homes Connected Growth Revenue Growth Largest customer base in Vivo’s history +1.1
Slide 5: Total Revenue acceleration, driven by Core Revenues
Total Revenue acceleration, driven by Core Revenues, led to Vivo’s highest quarterly YoY growth in recent history Total Revenues Total Revenues YoY growth R$ million, % of Total Revs % Highest YoY growth in the last 7 years, with strong results in both Mobile and Fixed Core Mobile Core Revenues YoY
Slide 6: Core Revenues prosper due to solid Mobile evolution and Fiber
Core Revenues prosper due to solid Mobile evolution and outstanding performance in Fiber and Digital B2B Mobile Revenues Fixed Core Revenues R$ million R$ million ▪ Strong volume of net ▪ Market rationality ▪ FTTH continues to ▪ Data, ICT & Digital additions both in supporting healthy price outperfo
Slide 7: Positive figures in postpaid and fiber
Positive figures in postpaid and fiber attesting Vivo’s position as the Telco with the best quality and value proposition Mobile Operating Figures Fixed Operating Figures Mobile Customer Base¹ FTTH² Homes Passed million million +4.4% +4.2 195mbps avg. speed³ +71mbps YoY c. 25% of postpaid net adds c
Slide 8: Digital B2B revenues continue to thrive
Digital B2B revenues, that already represent 5% of our top-line, continue to thrive, as demand remains heated Digital B2B Revenues Cloud Revenues LTM YoY Growth R$ billion 5% of Total Revenues % (+1.7 p.p. YoY) Cloud continues its high double-digit growth, +41% with the reselling of third-party plat
Slide 9: Creation of Vivo Ventures extending B2C Digital Ecosystem
Creation of Vivo Ventures extending our B2C Digital Ecosystem, that was also enhanced by a new Vivo Play Portfolio and repositioning of Terra Portal Vivo Ventures Vivo’s Corporate Venture Capital fund New packs offering Live TV on top of video on demand content directly on Smart TVs, Mobile and web
Slide 10: Vivo's ESG initiatives are keystones of our purpose and strategy
Vivo’s ESG initiatives are keystones of our purpose and strategy and will continue to evolve throughout 2022 Environmental Governance and Diversity # of Power Plants Board of Directors¹ with 4 women >57 as of April 26th, 2022, representing 33% of the board 23 operating Green Power Plants of the >80
Slide 11: Transition into a hub for digital services changes the cost base
Vivo’s transition into a hub for digital services continues to change the cost base, that was pressured by inflation in 1Q22 Total Costs vs. Inflation LTM¹: Cost of Services and Goods Sold R$ million +11.3% ▪ Cost of Services up +7.8% YoY impacted by product licensing, as revenues of B2C and B2B dig
Slide 12: Improved mix of investments with focus on Fiber and 5G
Improved mix of investments with focus on Fiber and 5G deployment, while Operating Cash Flow generation remain solid Capex¹ Operating Cash Flow¹ 1Q22 R$ million R$ million -3.3% % of OpCF¹ Margin % sales ▪ 82% of Capex dedicated to growth and transformation ▪ Fiber continues to be the main investmen
Slide 13: Double-digit Free Cash Flow growth despite net income decrease
Double-digit Free Cash Flow growth, even with net income decrease led by higher D&A and financial expenses Net Income 1Q22 Free Cash Flow¹ 1Q22 R$ million R$ million Net income affected by growing D&A, as we started to Positive operating performance and efficient financial amortize 5G frequencies, a
Slide 14: Sound net cash position, despite increased Gross Debt
Sound net cash position, despite increased Gross Debt with the auction of 5G spectrum held on 4Q21, allowing us to continue with our Share Buybacks Gross Debt Shareholder Remuneration R$ million Dividends + IOC² +54% LTM Mar-22: Gross/Share R$3.74 R$6.3 bn Div. Yield³ 7.6% Payout³ 113% Mar-21 Mar-22
Slide 15: 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 15