Telefonica Sa · BME:TEF
Telefonica Sa — Telefonica S A — Third Telefónica Investor Conference 2003
14 slides from Telefonica Sa's conference presentation, Oct 14, 2003
Slide 1: Closing Remarks - Third Investor Conference
César Alierta Executive Chairman and CEO Telefonica, S.A. Closing Remarks THIRD INVESTOR CONFERENCE | MapRip 2 OO 3 Felefontca
Slide 2: Enhancing cash returns through growth and transformation
Enhancing cash returns through growth and transformation Closing Remarks October 10, 2003
Slide 3: Telefonica has anticipated the sector trends and taken required steps
In the recent past, Telefonica has anticipated the sector trends and taken the steps required for the new environment The Telco sector’s To-Do List Extend growth potential in wireless Firm decisions taken to transform traditional wireline Leveraging on mass-market DSL opportunity Divesting non-core
Slide 4: Committed to generating growing free cash flows and improved returns
Telefonica, S.A. Looking forward, we are committed to generating growing free cash flows and improved returns on capital for our shareholders Our commitment towards our shareholders Our management focus Growing cash flow generation and a B improved ROCE i P’ Drive top line Move ahead in oy th compan
Slide 5: We will make sure that top-line growth happens
Telefonica, S.A. We will make sure that top-line growth happens .. leveraging on five Management for growth will focus key assets and capabilities on three key levers... r . The most experienced in Spain & -Drive the BROADBAND opportunity | LatAm: Leadership in Spanish and Portuguese markets Unique
Slide 6: Taking ongoing transformation further to stimulate growth
Telefonica, S.A. And we will take our ongoing transformation further to stimulate growth Commercial Leaner, oriented company more efficient business model Households = Transition towards most Corporations & Individuals Less capital intensity commercially oriented Government through CapEx organisatio
Slide 7: Current market dynamics may offer complementary opportunities
In addition, current market dynamics may offer us opportunities to complement our core businesses * Core business only * Manageable geographies The principles * Complementary with existing operations een * Reasonable price / upside balance ° No greenfield operations ° Not affecting our solvency prof
Slide 8: Execution managed according to consistent, well-defined principles
Telefonica, S.A. Our execution on these fronts will be managed according to consistent, well-defined principles One integrated telecom Group A Consistent Transparent, elie te and reliable accountable Committed to cna management to implementing eed under a shareholders our vision for be common and th
Slide 9: Expected 7-10% consolidated top-line organic growth 2002-06
Lines in Service (m) 44.9 % Broadband 3.1% Customers (m) 43.9 er) * Including CANTV and Cable Magicoin Peru As a result, we expect to deliver 7-10% consolidated top-line organic growth 2002-06 ... stomer Base b Revenues Revenues én GD 2003 guidance CAGR** 7-10% 28,411 2002 2003E 2006E * Constant exc
Slide 10: 20-23% EBIT growth with full impact to bottom line
«. 20-23% EBIT growth with full impact to bottom line ... EBITDA ee QD 222 prisurce @® 2 e:isue EBIT margin * Constant exchange rates as of 2002 * Constant exchange rates as of 2002
Slide 11: Steady increase of free cash flow and return on capital
... and, finally, delivering a steady increase of free cash flow generation and return on capital Free Cash Flow* Return on Capital Employed** €m 7.4% we Double-Digit ROCE * FCF EBITDA-CapEx-Net financial expenses-Calls on * Return on Capital Employed: EBIT x (1- effective tax Cash-Cash taxes-minori
Slide 12: One step forward in commitment to shareholder remuneration
Telefonica, S.A. We are moving one step forward in our commitment to shareholder remuneration... supported by our increasing confidence in our Free Cash Flow generation TOTAL 03-06 >27 billion € * TO FULLY 1. SHAREHOLDER REMUNERATION DELIVER ON OUR FIRM 2. SOLVENCY PROTECTION FOR A COMMITMENTS | “SI
Slide 13: In summary, execution of growth and transformation
In summary, execution of growth and transformation... to offer a unique combination in the Telco industry STRONG ORGANIC GROWTH POTENCIAL Sustainable STRONG AND LONG-TERM SHAREHOLDER REMUNERATION FREE cash flow >11.4 bn Euros 03-06, more than 21% current market cap yield generation dividend of 3.8%
Slide 14: Signatures
SIGNATURES 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. Telefónica, S.A. Date: October 13 th , 2003 By: /s/ Antonio Alonso Ureba Name: Antonio Alonso Ureba Tit
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