Slide 1: Telecomunicações de São Paulo S/A - Telesp Annual Results 2009
TELECOMUNICACOES DE SAO PAULO S/A - TELESP ANNUAL RESULTS - 2009 Telefonica
Slide 2: Contents
BOARD OF DIRECTORS’ MESSAGE HIGHUGHTS OPERATING REVENUES OPERATING EXPENSES FINANCIALDATA ADDITIONAL NOTES CAPITAL MARKET DIVIDENDS AND INTEREST ON OWN CAPITAL INCOME STATEMENT BALANCE SHEET STATEMENT OF CASH FLOW OPERATING DATA TARIFFS SHAREHOLDING STRUCTURE AND CAPITAL STRUCTURE COMPOSITION
Slide 3: Prices and Investor Relations Contacts
PRICES ON FEBRUARY 11, 2010 INVESTOR RELATIONS CONTACTS: (ON~TLPP3 - R$ 36.50 Norair Ferreira do Carmo PN~TLPP4 ~ R$ 40.60 ‘Maria Tereza Ali Pelicano David ADR - TSP- US$ 22.12 Carolina Fernandes Pontes Mada ‘Market Cap ~ R§ 19,862.1 milion Cristina Marini Teles Luciana Nori de Souza (55.11) 3549-72
Slide 4: Highlights: Net Operating Revenues, EBITDA and Capex
The Net Operating Revenues in 2009 was R$15,795.8 million, presenting a decrease of 1.1% when compared to the R$15,979.0 million registered in 2008. The main reductions were in local service, fixed-to-mobile and monthly fee revenues, partially offset by the increase of broadband, pay TV and infrastr
Slide 5: Investment Evolution
INVESTMENT EVOLUTION (RS Millon) iiiliiil 2008 3008 ©4008 ©1009-2009 3009 Tradional Business /Muintenance mNewSenices /Broadband
Slide 6: Operating Revenues Changes Explained
The changes are explained as follows: Monthly Subscription Fee: reached R$5,226.2 million in 2009, a decrease of 1.6% when compared to the R$5,312.9 million in 2008. This drop is mainly related to the decrease of average lines in service and to the increase of the alternative plan base of fixed line
Slide 7: Operating Expenses Variations
The variations are explained by the following items: Personnel expenses: reached R$700.7 million in 2009, a decrease of 6.4% when compared to the R$748.8 million in 2008. This variation is explained by organizational restructuring programs occurred in 2008 which increase the comparison base. Supplie
Slide 8: Loans and Financing
LOANS AND FINANCING Presa cain cane MI pes Seiten tater cain ts | cotsaasn | sep2nio | astoane Ale sai ni ay polars ss tre | _untnaous sci |_|
Slide 9: Consolidated Schedule of Long-Term Obligations
CONSOLIDATED SCHEDULE OF LONG-TERM OBLIGATIONS. (nthezond ofr) Year ‘Amount 201 y 398108 2012 397.898 2013 397,570 2014 395,081 A partirde 2015 163,679 Total [2752402
Slide 10: Debt Ratio and Derivatives
(*) The ratio was calculated over the EBITDA composed by the sum of the four previous quarters. Derivatives: all Company’s financial derivative contracts aim the protection of exchange risk and fluctuations of interest rates related to financial debt, in accordance to the corporate policy of risk ma
Slide 11: CDI Net Exposure and Financial Result
The CDI net exposure (R$1,568.3 million) doesn’t reflect the total exposure to domestic interest rate, once the Company has, as a “natural hedge”, short term financial investments based on CDI variation (R$2,266.9 million on December 31, 2009). Financial Result: in 2009 reached -R$194.6 million, imp
Slide 12: Telesp's Stocks Performance
‘Telesp's Stocks Performance (Gase Don December 28,2007) 150 210 70 30+ Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug.09 Dec-09
Slide 13: Dividends and Interest on Own Capital
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Slide 14: Income Statement
INCOME STATEMENT Unaubited conclited fut fei Milion) (Gross Operating Revenues 2aass8 23,0208 06 5721959563 G3) Monthly subscription fee 52262 5.3129 (as) 22995 13490 G7) Installation charge wag 1183 (48) 297 203 473 Local service zaiss 2768/17) 38596557] (4027) Dip 33709 3.8088 15 988510036 (5) Fix
Slide 15: Balance Sheet
BALANCE SHEET United cncodetd fui tion) ASSETS ‘Curent azzets 70883 64916 86 Cash and cash equivalents 22770 a7ai0 308 Cash 303 20 (aa) Francia Investments 22669 7030 326 Net accounts receivable from customers 29313 3as28 (70) Supply and maintenance inventories oy 3644 62, Recoverabletaxes 23356 106
Slide 16: Statement of Cash Flow
STATEMENT OF CASH FLOW nuded contd Fue itor) ‘Cash and cach equivalents at beginning ofthe period a5 Net Income ofthe period (a) Non-cash expenses (revenues) (6) Depreciation and amortization co) Exchange variations on leans and financing na (Cain)oss on subsiciares na (Gain)ioss on asst sale m6) “A
Slide 17: Operating Data Notes
1/ With the introdution of Law# 11,638/07, the Capex showed a decrease due the change on PDTI's accounting. 2/ Includes ISDN clients. 3/ Includes TV clients via Satellite and MMDS. 4/ Includes intra-state and inter-state traffic (fixed-to-fixed and fixed-to-mobile). 5/ Includes Telefônica Sistema de
Slide 18: Tariffs Notes
Notes: a) Effective as of September 16, 2009, the maximum net tariffs of Local Services, through Anatel's Edict# 5,180 of September 11, 2009, had an readjustment of 0.98% throughout the sectors 31, 32 and 34, incorporating the productivity gain of 3.9%, according to the foreseen rules in the Concess
Slide 19: Shareholding Structure
‘SHAREHOLDING STRUCTURE Telefénica, SA “Teleféniea internacional SA SP Telecomunicarbes Participacies Ltda de Sto Paulo S/A-TELES
Slide 20: Disclaimer
DISCLAIMER This document contains statements that constitute forward-looking statements in its general meaning and within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this document and include statements regarding the intent, b