TELEFÔNICA BRASIL S.A. CORPORATE PRESENTATION
Accelerating core revenues and expansion of digital ecosystem
May 2021
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
Due to factors like the Brazilian political and economic activities, the development of competitive technologies, accessibility to capital to achieve those results, and the rise of strong competition in markets in which we operate; our results may differ from those found in theforward-lookingstatements
The exclusive purpose of such statements is to indicate how we intend to expand our business. Therefore, they should not be regarded as guarantees of future performance
2
VIVO IS THE TELCO MARKET LEADER IN BRAZIL AND HAS THE BEST ASSETS TO CAPTURE GROWTH OPPORTUNITIES AND GENERATE HIGHER RETURNS
▪Launch of campaign'United against hunger' | |||||||||
▪1stBrazilian company of the sector with ISO 26000 | |||||||||
▪ | 1stSolar Power Plant of the Northern Region inaugurated | ||||||||
ESG | |||||||||
▪ | Vivo considered as the company with the best reputation of the sector | ||||||||
▪Improvement offiber take up and mobile services evolution | ||
Growth | ▪ | New revenue streamsin digital services and IoT |
▪ | 5G auction and modernization of regulatory framework | |
Opportunities | ||
Continuous evolution on ESG
to deliver on our purpose: 'Digitalize to Bring Closer'
Acceleration of fiber
deployment and
improvement in mobile
Evolution of Core
Businesses
- Core Businesses already represent c. 90%of Total Revenues
- Fiber deployment continues at full speed
- Multiple initiatives across the digital spacewithVida V ine-health,Vivo Pay andVivo Money in financial services, and partnerships withDotz andCDF
Total Revenues back to growth
with positive outlook in
Mobile, Fixed, and
Digital Services
Efficiency and
Returns
- Acceleration of revenueschangingcost-basemix
- Digitalization and simplification initiativesreducing cost of operations
- Robust Shareholder RemunerationwithR$700 million already distributed in IOC in 2021¹ andShare Buyback Program
Strong FCF and Shareholder
Remuneration
3 | 1- until April 2021 |
VIVO'S ESG INITIATIVES ARE AN IMPLICIT COMPONENT OF OUR PURPOSE, "DIGITALIZE TO BRING CLOSER",AND WILL CONTINUE TO EVOLVE IN 2021
Launch of the Campaign
'United against hunger'
in partnership with the NGO Gerando Falcões,and support of the Movimento Panela Cheia, with Fundação Telefônica
Vivo donating two food kits for each
one that is donated.
1stBrazilian company of the
sector withISO 26000 certificate
withSocial Responsibility guidelines that
reinforce our responsible performance, from employees to suppliers and society as a whole
1stSolar Power Plant of the
Company in the Northern Region
in Marabá-PA, generating
up to 2.190 MWh per year, destined to serve 632 of Vivo's consumption units
100%
Renewable
Energy
Vivo: best reputation in the
sector
jumping 13 positions in
Merco's national scale
(vs. 2019)
More information about our ESG initiatives is available in our 2020 Sustainability Report, available at our Investor Relations website
4
POSITIVE EVOLUTION OF THE REGULATORY FRAMEWORK AND ECONOMIC RECOVERY WILL ENABLE VIVO TO UNLOCK SIGNIFICANT VALUE
5G spectrum auction
Likely to focus oncoverage obligations
Expected to take place in 2H21
5G DSS already launchedin 8 major Brazilian cities
Law 13.879 brings a positive outlook to the sector's regulation
Focused on the possibility of transitioning from fixed voice
concessionaires to an authorization framework
Companies will be able to significantly reduce their legacy expenditures and focus investments on modern, future- proof solutions
Allows for theautomatic renewal of spectrum
Brazilian economic outlook
- Recovery of economic activityto be sustained by the vaccination process, Government's financial aid, and strong global growth
- Normalization ofinterest ratesdue to higher inflation, but still at relatively low levels
- Economic reforms are underwayto address fiscal risks
20A | 21E | 22E | 23E | |
GDP Growth % | -4.1% | +3.5% | +2.4% | +2.5% |
CPI%, EoP | 4.5% | 5.2% | 3.6% | 3.3% |
FXR$/US$ EoP | 5.2 | 5.3 | 5.4 | 5.2 |
5 | 5 |
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Telefônica Brasil SA published this content on 27 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2021 14:05:01 UTC.
