3. HIGHLIGHTS
R$ billion
4Q08 4Q07* ∆%
Net Service Revenue 3.8
38 3.0
30 27%
Expenses (2.9) (2.5) 16%
Ebitda 1.4 0.9 56%
Ebitda Margin 32.7% 26.5% 6.2 p.p.
Ebit 0.6 0.2 237%
Net Results** - R$ million
N tR lt ** 215.5
215 5 26.2
26 2 722%
*Excluding Telemig. **Calculated in accordance with the Brazilian Corporate Law.
4. HIGHLIGHTS
R$ billion
2008* 2007** ∆%
Net Service Revenue 13.8
13 8 11.1
11 1 25%
Expenses (10.9) (9.4) 17%
Ebitda 4.5 3.1 45%
Ebitda Margin 29.2% 24.9% 4.3 p.p.
Ebit 1.4 0.6 131%
Net Results*** - R$ million
N tR lt *** 389.7
389 7 (99.8)
(99 8) n.a.
*Excluding Telemig’s 1Q08. **Excluding Telemig ***Calculated in accordance with the Brazilian Corporate Law.
5. RECOGNITION
‘UOL/DataFolha’
Top of Mind Internet
Seleções Reader's Digest/IBOPE
Sector’s Most Reliable Brand
‘Info Exame’ Magazine
Best Broadband
Teleco
Largest Coverage in 3rd Generation
‘Consumidor Moderno’ and ‘Pro teste Magazine
Consumidor Moderno Pro teste’
Best Tariffs
‘O Globo’ newspaper and IBRC
Best Call Center in telecom sector’s
12. NET SERVICE
REVENUE + 14.7%
R$ million
14,170
12,350
+ 14.2%
+ 4.0%
3,644 3,789
3,317
*Combined with Telemig.
13. DATA AND VAS
REVENUE
R$ million
+ 38.1%
Data + VAS Revenue
10% of Net Service Revenue 1,439
38% YoY Growth
1,042
+ 20.8%
+ 4.1%
364 379
314
*Combined with Telemig.
14. OPERATING COSTS**
Operating costs under
strict control with focus on
R$ million
revenue growth
*Combined with Telemig. **Excluding depreciation.
15. EBITDA AND MARGIN
R$ million
4,868
BALANCE BETWEEN SALES
AND PROFITABILITY
3,546
,
Revenue YoY 15%
Costs YoY 6%
EBITDA YoY
Y Y 37%
1,324 1,396
979
*Combined with Telemig.
16. CASH FLOW AND EBIT
R$ million
CASH FLOW EBIT
1,497.0
2008
2007*
(533.4)
*Combined with Telemig.
17. NET RESULTS*
R$ million
Earnings per Share:
R$ 1.096
2007
4Q07 3Q08 4Q08 2008
*Brazilian Corporate Law.
18. FINANCIAL RESULTS,
,
GROSS DEBT AND NET DEBT
R$ million
FINANCIAL RESULTS GROSS DEBT** NET DEBT**
+76.3% +153.8%
4Q07* 3Q08 4Q08 +33.6%
+36.8%
5,302.1
8,003.1
8 003 1
3,968.5
5,849.8
(102.9) 57% 4,539.3
55% 2,088.9
68% 62%
55%
45%
(192.1) 43% 38%
32% 45%
(282.8)
*Combined with Telemig. **Includes the financing of 3G licenses .
19. CAPEX
R$ million
4,015.6
MAIN
INVETMENT 2,212.3
PROJECTS
1,195.7 1,319.8
Increase GSM network
I k 868.4
capacity and quality
Increase WCDMA
coverage
4Q07* 3Q08 4Q08 2007* 2008
Beginning of operations Network 848.2 620.6 978.4 1,380.9 1,988.7
Technology 149.4 96.0 109.8 308.4 292.6
in the Northeast region
g Licenses 50.4
50 4 - 74.8
74 8 50.4
50 4 1,197.7
1 197 7
Others 147.7 151.8 156.8 472.6 536.6
* Excluding the licenses, adjusted to the present value, in the amount of R$1,197.7 million.
*Combined with Telemig.
20. WE BELIEVE THAT IN THE
NETWORK SOCIETY PEOPLE
LIVE BETTER AND CAN DO MORE
MORE...
... we are 45 million connected people through
VIVO community and, once connected, we can
change the world we live.
21. DISCLAIMER
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
performance.
Our actual results may differ materially from those contained in such
forward-looking statements, due to a variety of factors, including
f d l ki t t t d t i t ff t i l di
Brazilian political and economic factors, the development of
competitive technologies, access to the capital required to achieve
those results, and the emergence of strong competition in the
markets in which we operate
operate.