VIVO - Apresentation of 2nd Quarter 2009 Results

2. RESULTS
2Q09
Vivo Participações S.A.
July 29, 2009
29

3. HIGHLIGHTS
R$ billion
2Q09 2Q08 Δ%
Net Service Revenue 3.6 3.4 7.1%
Expenses (2.7) (2.9) -7.2%
Ebitda 1.2 0.8 42.3%
Ebitda Margin 30.4% 22.2%
30 4% 22 2% 8.2 p.p.
82pp
Ebit 0.4 0.1 258.0%
Net Results* – R$ million 172.4 (63.9) n.d.
* Brazilian Corporate Law.

4. TELEMIG The operation was
approved at the General
Shareholders’ Meeting of
June 27th.
Next Steps
Jul 29 Beginning of the withdrawal right period;
Aug 28 Last day for exercising the withdrawal right;
Last da for trading Telemig Cel lar and Telemig Cel lar
day Celular Celular
Sep 04
Participações shares;
Sep 08 Beginning of the payments to the transaction dissidents;
Sep 08 Beginning of the shares trading under Vivo's ticker;

5. Operational Performance

6. COMMERCIAL
PERFORMANCE Nationwide market leader
Market Share: 29.3% in Brazil
thousand
GSM + WCDMA: 77% of our customer base
CUSTOMERS
+ 6,384
+ 1,178
RECHARGE POINTS
,
45,641 46,819
40,435
8.794 9.044 541
539
7.745
487
36.847 37.775
32.690
2Q08 1Q09 2Q09 2Q08 1Q09 2Q09
Pre Paid
Post Paid

7. SAC Blended
- 3.5%
- 14.4%
97
86 83
23%
25% 24%
28%
26%
36%
49% 49%
40%
2Q08 1Q09 2Q09
Major ffi i
M j efficiency i
in
Subsidy Comissions Advertising subscriber acquisition cost.

8. ARPU TREND
- 8.7%
- 2.6%
MAIN CAMPAIGNS
28.8
27.0 26.3
12,6
11,5 10,9
16,2 15,5 15,4
2Q08 1Q09 2Q09
Outgoing Incoming

9. MOU AND TRAFFIC TRENDS
MOU VOICE TRAFFIC
Million of minutes
- 14.9% - 0.5%
3.9% + 5.7%
94
77 80 11,080 11,022
10,427
10 427
32
27 3.727 3.787
28 3.835
62
49 53 7.353 6.592 7.235
2Q08 1Q09 2Q09 2Q08 1Q09 2Q09
Outgoing Outgoing
Incoming Incoming

10. Financial Performance

11. NET SERVICE Data + VAS Revenue
REVENUE 12.6% of Net Service Revenue
30% YoY growth
R$ million
+ 7.1%
- 1.1% DATA AND VAS REVENUE
3,670 + 29.9%
3,630
3,390 + 3.3%
1.668 1.679
1.526
1 526 1.518 457
1.447 1.463 443
352
232 225
176
443 457
352 190
123 165
66 41 31
53 46 42
2Q08 1Q09 2Q09 2Q08 1Q09 2Q09
Others Network Usage
g SMS + MMS Vivo Internet
Data and VAS Access and Usage Others

12. OPERATING
EXPENSES*
R$ million
888
Service Rendered 872
851
451
Goods Sold 613
604
899
Selling Expenses 764
909
General and 137
162
Administrative 176
214
H.R. 211
197
230
Fistel, Fust, Funtel 229
184
2Q09 1Q09 2Q08
* Excluding depreciation.

13. EBITDA AND MARGIN
R$ million
BALANCE BETWEEN SALES 29,9% 30.4%*
AND PROFITABILITY
Service Revenue YoY 7.1%
7 1%
Costs YoY 7.2% + 8.2 p.p.
Ebitda YoY 42.3% 22.2%
1.204 1.198
842
2Q08 1Q09 2Q09
EBITDA EBITDA Margin
* Including the extraordinary effect of ICMS reversion of R$47,5 million.

14. CASH FLOW
AND EBIT
R$ million
CASH FLOW EBIT
1.010,8
78,6 399,0
2Q08 375,9
1Q09 2Q09
105,0
(1,147.1)
2Q08 1Q09 2Q09

15. NET RESULTS
R$ million
172,4
123,5
2Q08
1Q09 2Q09
(63,9)

16. FINANCIAL RESULT,
,
GROSS DEBT AND NET DEBT
R$ million
FINANCIAL RESULT GROSS DEBT NET DEBT
+ 12.9%
+ 31.3%
- 15.6%
- 15.9%
2Q08 1Q09 2Q09
7,713.1
7 713 1
6,511.1
5,764.8 5.579,5
4.692,6
61% 3.574,3
(
(105,6)
, ) (110,4)
(110 4) 62% 72%
(149,1)
38% 39%
28%
2Q08 1Q09 2Q09 2Q08 1Q09 2Q09
Short Term Long Term

17. CAPEX
R$ million
% Capex/Net Revenue
1,558.6
1 558 6
41,1%
15,4%
13,5%
606.8
541.3
Investments in
capacity and
improvement of GSM
and WCDMA network
R$ million 2Q08 1Q09 2Q09
Network 251.3 375.9 406.4
Technology 44.2 53.7 73.1
Licenses
Li 1,122.9
1 122 9 - -
Others 140.2 111.7 127.3

19. DISCLOSURE
This presentation may contain forward-looking
statements concerning future prospects and objectives
regarding growth of the subscriber base, a breakdown of
the various services to be offered and their respective
results. The exclusive purpose of such statements is to
indicate how we intend to expand our business and they
should therefore not be regarded as guarantees of future
g g
performance.
Our actual results may differ materially from those
y y
contained in such forward-looking statements, due to a
variety of factors, including Brazilian political and
economic factors, the development of competitive
technologies,
technologies access to the capital required to achieve
those results, and the emergence of strong competition
in the markets in which we operate.