Slide 1: Results 2Q11
Results 2Q11 Telecomunicagées de Sao Paulo S.A. aie “Tay, Vivo Participagées S.A. Sao Paulo, July 27, 2011.
Slide 2: Disclaimer
Disclaimer For comparative purposes, the 1Q11, 2Q10, 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 presentati
Slide 3: Index
01 02 03 Index Operating Performance Financial Performance Perspectives
Slide 4: Operating Performance
O1 Operating Performance
Slide 5: Telefonica of Brazil reaches excellent balance between growth and profitability
Telefonica of Brazil reaches, in its mobile and fixed operations, excellent balance between growth and profitability in the period. Increased leadership in the postpaid 36.1% mobile segment, specially in the of postpaid data business market share* 415.1% yoy in the mobile segment Growth acceleration
Slide 6: Mobile Accesses and ARPU
...where the improvement in the mix and increasing levels of service usage generated ARPU growth in the annual comparison.
Slide 7: Mobile Accesses ARPU
Mobile Accesses ARPU R$ Million 414.4% ( > ‘ +0.4% (13.2% al 920% | 56.0 ea keel 25.0 24.6 25.1 43.3 44.2 5.4%) 5g ea “TD El | 2a10 4ait 2ait 2a10 4att zai =Prepaid © Postpaid "Voice = Data Growth of Mobile Broadband: +49% Mobile Market Share % 42.5% 35.5% 36.1% i 29.5% i] 2Q10 2Q11 =Blended | Postp
Slide 8: Fixed voice customer base more stable
Fixed voice customer base more stable with increasing participation of duos and trios customers. Accesses of Fixed Voice and Broadband Pay TV Accesses Million ‘Million | 42.6% 445.5% 10.3% = 0% 143 14.6 14.6 T 16.8% - a UI O 2010 1ait 2011 2010 1011 2att uFixed Accesses Fixed Broadband * Considers 1
Slide 9: Ebitda margin increase and record profitability in the quarter
The commercial performance combined with the integration of operations reflects in the increase of the Ebitda margin and record profitability in the quarter. R$ million 2Qi1 2Q10 A% Net Operating Revenues 8,231.3 7,712.8 6.7% Wireless Service Revenue 4,753.0 4,129.8 15.1% Eliminations (Revenues Inte
Slide 10: Financial Performance
Q2 Financial Performance
Slide 11: Wireline Net Revenue
Wireline Net Revenue* R$ million
Slide 12: Wireline Net Revenue breakdown
48.1% — 3,966 2a10 1011 2att 3.2% voice Data {@ Others 20.0% [Network Usage lll Pay TV Hi voice Bi pata I Others i Network Usage I Pay TV * Without Intercompanies eliminations. " Felefiniea | vivo
Slide 13: Consolidated Operating Expenses
Consolidated Operating Expenses R$ million (80) 4 (56) (5,169) (64) 4 = = — (4,906) a 2Q10 Personnel Services Goods Selling G&A Others 2Q11 Rendered Sold Expenses eof 2 Teletinia | vivo
Slide 14: Consolidated EBIT, Financial Result and Net Result
Consolidated EBIT, Financial Result and Net Result R$ million
Slide 15: EBIT, Net Result and Financial Result
EBIT Net Result -+30.0% = 1,129 884 2Q10 1011 2011 Financial Result [| [| | | 2Q10 1011 2Q11 = 2Q10 1Q11 2Q11 U rr | (33) vestor Relations 14 Telofinica | vivo Teleféneca of Brack
Slide 16: Consolidated Debt
Consolidated Debt R$ million
Slide 17: Gross Debt Net Debt
Gross Debt Net Debt
Slide 18: Debt maturity and Moody's rating
— ye —a Wi Short-term [Long-term Telesp obtained in July 2011 Baa‘ Global rating by Mo ws eerste" . = 16 Telefinica | vivo
Slide 19: Perspectives
03 Perspectives
Slide 20: Brazil offers great opportunities for growth, especially outside of Sao Paulo
Brazil offers great opportunities for growth, especially outside of Sao Paulo... Evolution of Social Classes Regional Economic Growth (2010-2015) Brazil Real rate of average annual growth - GDP. Northeast j Increase of middle class in +30MM habitants 2003 Source: Bradesco Study, Telefonica Analysis
Slide 21: Increase in Broadband Penetration
Source: Global Wireless Matrix 1Q11 – BofA Merryll Lynch Source: Target; LatinPanel * Users LatinPanel from 7 to 60 years Increase in Broadband Penetration Services expansion outside São Paulo
Slide 22: Computer with internet penetration
74% 69% 65% 2007 2008 2009 ‘Computer withintemet m\ithoutcomouter Source: Telefénica of Brazil internal study Ls (REGIE) = 103% 61% BB 38% 22% a % Source: Telefonica do Brasil - Internal study investor Relations 19 Telekéneea of Brack Telofinica | viv
Slide 23: Telefonica of Brazil is in a unique position to capture these opportunities
Telefonica of Brazil is in an unique position to capture these opportunities... ...With assets that give us an unique Combining the best infrastructure... positioning in the market Municipalities with Spectral Capacity It: = Most valuable brand in the Telecom sector*: R$ 7.6 billion; vivo vivo vivo
Slide 24: Even greater synergies: operating synergies target update
.., Which makes us think of even greater synergies... (Update of operating synergies target in 16%) OPERATING SYNERGIES NPV (R$ in billion) * 1.5/1.8 |_| Revenues Commercial OpEx CapEx _ Integration Operating Financialand Total Costs Synergies Other non- synergies Costs & G&A Network & IT operating
Slide 25: Synergies captured through new projects
.., that are already being captured through new projects... Absolute leadership i = thecorporate segment Leadership inthe and SMEs in SP en Sales of integrated solutions and cross selling 100% of bonus to long distance a Ensuring availability of systems a Reduction of opex with leased circuits Inves
Slide 26: Acceleration of Innovation projects
.., and by the acceleration of Innovation projects, mainly through Telefonica Group. Torpedo Message Ring Back Tone Security ‘Soletrando’ 2.0 MM users in 6 months 20 thousand users in the 1** week 240 thousand users in 30d Financial Services Mega Promo SMS vivo DIRETO Co Branded Cards 850M 3.7K user
Slide 27: Five strategic lines
We are positioned for this opportunity based on the five strategic lines .. Connected: total coverage and massification of broadband/TV Unique: team, channel, network, brand, ... Innovator: hotbed of new services (ex: vertical) going beyond the core business Committed: Vivo as reference commercial b
Slide 28: Supported by an integrated working model
.., and supported by an integrated working model New company (Vivo + Telesp) Innovation Individual Companies & Market Market New Businesses} IT/ Network/ HR/ Maximize existing strengths, ensuring the advancement and business growth and capture of synergies capturing growth and customer Structure pre
Slide 29: Summarizing
i} Summarizing : Telefonica of Brazil, through the assets of Vivo and Telesp, positions itself uniquely in the Brazilian telecommunications market... ..., the growth and profitability demonstrated in the results of this quarter reflect the consistency of our operations... ..., which added to the rap
Slide 30: 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. TELESP HOLDING COMPANY Date: July 27, 2011 By: /s/ Carlos Raimar Schoeninger Name: Carlos Raimar Schoeni