Telefônica Brasil S A : Corporate Presentation | Nov-20
11/09/2020 | 09:02am EST
Corporate Presentation
Telefônica Brasil S.A. Investor Relations
N o v e m b e r , 2 0 2 0
Vivo is the market leader in Brazil and has the best assets to capture growth opportunities and generate even higher returns
▪ Perspectives of economic recovery after Covid-19 shock
Outlook
▪ Regulatory framework modernization through Law 13.879
▪
Telecom Market: significant opportunities in fiber, mobile, and
digital services
▪ 60% of fixed revenues are composed of growing businesses
Growth
▪ Fiber deployment continues at full speed
▪
80% of MSR from postpaid customers, with leadership reaffirmed
▪ Multiple initiatives in the digital space
Resilient revenue base with
positive outlook for the
future
Efficiency and
Returns
Digitalization and simplificationdriving resilient EBITDA
Smart capex allocationimproving returns
Strong FCF generation, even with solid investments, supporting higher shareholder remuneration
Strong FCF and Net
Income evolution
▪One of the top 10 companies in the new S&P/B3 Brasil ESG Index
ESG
▪ Conversion of Preferred Shares into Common Shares underway¹
▪
Winner of UNESCO's Hamdan Prize for teacher effectiveness
▪Recognition of Vivo as one of 150 best places to work in 2020²
Consistent focus on ESG
1 - Unification of share classes approved by the Extraordinary Shareholder Meeting and Special General Meeting of Preferred Shareholder. 2 - According to Great Place to Work®
2
Economic recovery and positive evolution of the regulatory framework will enable Vivo
to unlock significant value
OUTLOOK
Key economic drivers
Economic activity recovers as a result of the flexibilization of isolation measures, along with the government's financial aid
Record low interest rates with inflation forecasts below target
Economic reforms are underwayto address fiscal risks
Outlook1 of economic recovery after Covid-19 shock
19A
20E
21E
22E
23E
GDP Growth %
1.1%
-4.8%
3.4%
2.5%
2.5%
CPI %, EoP
4.3%
3.0%
3.1%
3.5%
3.3%
Exch. rate R$/US$
4.0
5.4
5.2
4.9
4.9
Positive evolution of the sector's regulation
New law 13.879 will allowfixed voice concessionaires to migrate to an authorization framework, incentivizing investments in modern technologies
Companies will be able to significantly reduce their legacy spend andfocus their capital onup-to-date,future-proofsolutions
Law 13.879 is also important for the mobile business, as it permits theautomatic renewal of spectrum
The 5G spectrum auctionis likely to focus on coverage obligations and expected to take place by the end of 1H21
Telefônica Brasil SA published this content on 09 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2020 14:01:05 UTC