Telefonica Brasil S.a. · BMFBOVESPA:VIVT3
Telefonica Brasil — Q1 2024 Earnings Presentation
14 slides from Telefonica Brasil's earnings presentation, May 8, 2024
Slide 1: Results 1Q24
RESULTS 1Q24 May 7th, 2024 Telefônica Brasil S.A. Investor Relations
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: Strong operating performance leading to above-inflation growth in revenues, EBITDA and net income
Strong operating performance leading to above-inflation growth in revenues, EBITDA and net income Growth Profitability Sustainability 1Q24 Mobile Postpaid Accesses Total Revenue EBITDA Net Income² +6.6% 62.6 mn +6.5 % +6.8 % R$0.9 bn YoY 99.7mn Total Mobile YoY YoY +7.3% YoY Accesses (+1.6% YoY) Fib
Slide 4: Positive revenue momentum remains intact, supported by mobile and fiber revenues
Positive revenue momentum remains intact, supported by mobile and fiber revenues Total Revenues Mobile Service Revenues R$ million R$ million Postpaid² Prepaid +6.5% Double-digit growth in postpaid revenues, Handsets & +3.1% Electronics driven by positive Data, ICT & commercial +3.5% momentum and Di
Slide 5: Continued ARPU expansion combined with low churn is key to our leading mobile performance
Continued ARPU expansion combined with low churn is key to our leading mobile performance Mobile Accesses Hybrid to Pure Postpaid million Migration YoY % Increased Improved migration of monetization of customers from Prepaid customer base as hybrid to higher- -5.7% mix of postpaid value postpaid acc
Slide 6: Vivo Total continues to outperform, leading to an increase in take-up ratio and ARPU
Vivo Total continues to outperform, leading to an increase in take-up ratio and ARPU acceleration FTTH Homes Passed FTTH ARPU million R$ Fiber + Mobile¹ Vivo Total Customer Base million FTTH Homes Connected million \ Average B2C FTTH Speed Sold Mbps B2C FTTH Churn Comparison % In 1Q24, Vivo added 17
Slide 7: B2C revenues grew well above inflation, highlighting the new businesses
B2C revenues grew well above inflation, highlighting the new businesses, that increased over 30% YoY Total B2C Revenues¹ New Businesses R$ million R$ million B2C new businesses continue its rapid +33.5% growth, and already New represents 2.6% of Businesses C nsu er lectr nics total revenues Fin nci
Slide 8: B2B continues to accelerate, as digital services are increasingly more significant
B2B continues to accelerate, as digital services are increasingly more significant over total revenues Total B2B Revenues¹ Digital B2B R$ million R$ million Digital B2B continues to grow, Cybersecurity and already represents 31.5% i it l luti ns of total B2B Digital B2B +20.4% revenues (+3.3 p.p. T
Slide 9: Vivo is advancing in its ESG agenda, with recognition in Brazil and internationally
Vivo is advancing in its ESG agenda, with recognition in Brazil and internationally Environmental Governance Positions at Merco Companies - Brazil Vivo is among the leading companies in + 13 Since the launch of the climate transparency ISE B3 ranking, Vivo Vivo among the Top 20 companies Present at
Slide 10: Opex growing below revenues even as costs of operations accelerate
Opex growing below revenues even as costs of operations accelerate to cope with improved commercial trends Costs Cost of Services & Goods Sold R$ million ▪ Cost of Services evolution driven by ramp up of our Costs of 31%of costs customer base and sales of digital services in B2B and B2C ▪ Cost of Go
Slide 11: Robust commercial performance drove operating cash flow expansion with margin improvement
Robust commercial performance drove operating cash flow expansion with margin improvement Capex¹ Operating Cash Flow¹ R$ million R$ million, 1Q24 OpCF Margin¹ LTM % % of sales Capex efficiency remains a priority, as we are the only 5G operator in ll cities with > k inh bit nts c erin f Br zil’s ul t
Slide 12: Despite challenging comps, free cash flow generation remains solid and net income continues to expand
Despite challenging comps, free cash flow generation remains solid and net income continues to expand Net Income¹ Free Cash Flow³ R$ million R$ million YoY Free Cash Flow reduction due to seasonality and positive effects recognized in 1Q234 Net Debt² R$ million Mar-24 Net Debt including IFRS-16 Free
Slide 13: We are on track to meet the shareholder remuneration guidance
We are on track to meet the shareholder remuneration guidance, providing superior returns Shareholder Remuneration New share buyback program ▪ The program began on March 5th, 2024, and will end on March 4th, 2025 ▪ We intend to invest up to R$1 billion to buyback our shares within this program Outst
Slide 14: Investor Relations
For further information Investor Relations ri.telefonica.com.br/en ir.br@telefonica.com