Telefonica Brasil S.a. · BMFBOVESPA:VIVT3
Telefonica Brasil — Q4 2023 Earnings Presentation
14 slides from Telefonica Brasil's earnings presentation, Feb 21, 2024
Slide 1: Results 4Q23
RESULTS 4Q23 February 20th, 2024 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: Sound operational performance leads to enhanced profitability and attractive shareholder remuneration
Sound operational performance leads to enhanced profitability and attractive shareholder remuneration Operating Growth Profitability Sustainability +9.9% YoY +5.3% YoY +8.7% YoY 42.5% EBITDA +11.8% YoY 113 million Total Accesses growth of Core Revenues R$ Margin (+1.1 p.p. YoY) R$ 15.6% of Total Rev
Slide 4: Total Revenues continue to grow significantly above inflation
Total Revenues continue to grow Total Revenues R$ million, % of Total Revenues significantly above inflation Mobile Revenues +6.9% R$ million +8.4% Handsets & +5.8% Electronics -2.1% Double-digit MSR Mobile growth in 2023 Prepaid Service explained by strong Mobile Revenues commercial activity +8.7%
Slide 5: Highest ARPU and lowest churn in the last years are evidence of Vivo's unrivaled mobile quality
Highest ARPU and lowest churn in the last 4 years are evidence of Vivo’s unrivaled mobile quality Mobile Accesses million . 31% Largest mobile base of the market, reaching almost Prepaid 100 million -5.2% accesses, out of As of December 2023, Vivo of our pure postpaid² which 62% are customers have 5
Slide 6: Strong momentum in fiber expansion enhanced by fast deployment and convergent portfolio
Strong momentum in fiber expansion enhanced by fast deployment and convergent portfolio FTTH Homes Passed FTTH ARPU Growth million YoY % Vivo Fibra is present in 443 cities across Brazil (+34 YoY) FTTH ARPU continues its positive trend as top-notch customer experience leads to improved pricing power
Slide 7: Digital B2B Revenues continue to gain traction and grow at an accelerated pace
Digital B2B Revenues continue to Digital B2B Revenues R$ million gain traction and grow at an accelerated pace Digital B2B/Total Revenue % . . . . Vivo joined forces to launch its Open Gateway initiative in Brazil, that aims to transform communication networks into intuitive and programmable platfor
Slide 8: Revenues from B2C digital solutions continue to consistently expand on all fronts
Revenues from B2C digital solutions continue to consistently expand on all fronts Financial Services¹ Video + Music OTTs Consumer Electronics³ Revenue Revenue Revenue R$ million R$ million R$ million \\\\\ \\\\\ 0.8% of total revenues 1.1% of total revenues 0.7% of total revenues Vivo Money grew its
Slide 9: Vivo reaffirms its position as a global leader in ESG, consistently excelling in all dimensions
Vivo reaffirms its position as a global leader in ESG, consistently excelling in all dimensions Awards and Recognitions Environmental tCO2e (Scope 1 and 2) Vivo ranked # in B ’s Sustainability Index (ISE) being recognized as the most sustainable company in Vivo reaches the 1st Brazil across all sect
Slide 10: Accelerated revenue growth leads to an increase in costs, with operating efficiencies improving EBITDA margin
Accelerated revenue growth leads to an increase in costs, with operating efficiencies improving EBITDA margin Costs R$ million Cost of Services & Goods Sold +4.8% • Cost of Services grew due to the increase of B2C and B2B digital +2.6% 34% of costs solutions revenues, and the overall ramp up of our
Slide 11: Robust operating cash flow margin, due to reduced CapEx intensity and solid EBITDA growth
Robust operating cash flow margin, due to reduced CapEx intensity and solid EBITDA growth Capex¹ Operating Cash Flow¹ R$ million R$ million, 2023 (9.530) 9.752 OpCF Margin¹ % % of sales We successfully delivered on the guidance of investing less than R$9 billion in 2023 1 — Ex-spectrum licenses and
Slide 12: Double-digit net income growth in 2023, combined with strong free cash flow expansion
Double-digit net income growth in 2023, combined with strong free cash flow expansion Net Income1 Free Cash Flow³ R$ million R$ million Net Debt² R$ million Dec-23 Net Debt Free Cash Flow Yield⁴ (including IFRS-16) R$ 14.2bn 9.2% Free Cash Flow/Sales 0.7x 2023 EBITDA 15.6% 1 — Considers the net inco
Slide 13: Shareholder remuneration remains solid and the recent guidance for 2024-26 reinforces our commitment
Share Shareholder remuneration remains Shareholder Remuneration¹ R$ million Buybac solid and the recent guidance for IoC 2024-26 reinforces our commitment ividends Share buyback program and cancellation of shares ✓ In December 2023, we cancelled 11.0m common shares² acquired during the year (0.7% of
Slide 14: Investor Relations
For further information: Investor Relations ri.telefonica.com.br/en ir.br@telefonica.com 14