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September, 2008.

Institutional Presentation Investor Relations. September, 2008. Institutional Presentation. Agenda. Market. World Mobile Market Brazilian Mobile Market. Institutional Presentation. Agenda. Market. World Mobile Market Brazilian Mobile Market. Institutional Presentation.

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September, 2008.

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  1. Institutional Presentation Investor Relations September, 2008.

  2. Institutional Presentation Agenda Market World Mobile Market Brazilian Mobile Market

  3. Institutional Presentation Agenda Market World Mobile Market Brazilian Mobile Market

  4. Institutional Presentation World Users Evolution - billion Handsets Source: Teleco – June 08

  5. InstitutionalPresentation Major Markets 601 283 263 173 141 116 Brazil is the 5th largest mobile market in the world reaching 141mn handsets in September 08 1º 2º 3º 4º 5º 6º Brazil China US India Russia Indonesia Source: Merril Lynch - Global Wireless Matrix 3Q08

  6. Institutional Presentation Mobile Penetration Most telecom/media services still have excellent growth prospects in Brazil due to the low penetration: 69% in mobile as of June 2008. Source: Global Wireless Matrix. – 2Q08.

  7. Institutional Presentation Agenda Market World Mobile Market Brazilian Mobile Market

  8. Institutional Presentation Panorama • Population*:189.6 Million • Homes*:56.3 Million • Area: 8,514,215 km² • GDP**:R$ 2,778.0 Billion • (US$ 1,621.3 Billion) • GDP per capita**:R$ 14,478 • (US$ 8,449) Source: * Estimated IBGE ** International Monetary Fund, World Economic Outlook Database, estimated 2008.

  9. Institutional Presentation Evolution of mobile telecom in Brazil Brazil holds 5th place in the world mobile telecom ranking (in million of lines) + 200% in the last 5 years 2007 2005 - 2008F 1990 - 1993 1997 Launch of cell technology in the main Brazilian cities Introduction of third generation technology Opening of the Brazilian telecom market

  10. Mobile Market Evolution Institutional Presentation +16% +21% +31% +16% 118 Million +41% +33% +21% +24% Source: Teleco and Anatel – 2Q08.

  11. Institutional Presentation Mobile Market Evolution Source: Anatel – 3Q08.

  12. Technologies Institutional Presentation Source: Teleco and Anatel – 2Q08.

  13. Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today Customers

  14. Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today Customers

  15. Institutional Presentation Joint venture formation Vivo was launched in April/2003: joint venture by 7 cell phone carriers,leaders in their markets, constituting the largest cell phone carrierin Brazil. + =

  16. Institutional Presentation Brand trajectory 2003 2004 2005 2006 CBF Sponsorship Vivo Launch Launch of innovative products and services Vivo ao Vivo Vivo Play 3G Launch of Vivo Escolha Plans CBF / World Cup

  17. Institutional Presentation Brand trajectory 2007 2008 Brand repositioning Aggressive promotional pricing National coverage Launch of Digital TV

  18. Institutional Presentation Recognition • Currently, Vivo is Top of Mind in the category and is strongly associated with the following attributes: • Most reliable brand • Greatest coverage • Best signal quality • Most advanced technology • Best mobile telecom option The brand allies quality of service and vocation for innovation. Source: Ipsos Asi BrandGraph tracking - mar/08

  19. Institutional Presentation Recognition “Most reliable brands in Brazil” (IBOPE / 2007) “Most valuable brands”(Brand Finance / 2007) For the 4th consecutive year Vivo is the most reliable brand in Brazil in the mobile telecom category. Vivo is the most valuable brand in mobile telecom in Brazil with a total of R$ 2.25 billion.

  20. Institutional Presentation Recognition Overall satisfaction Vivo holds higher satisfaction levels among users than the market average. 8.41 8.33 Market average Vivo Ratings vary from 0 (extremely unsatisfied) to 10 (extremely satisfied). Source: GFK Total Satisfaction Survey – 2S07

  21. Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today Customers

  22. Distribution Institutional Presentation 10% 15% -2% 12% 29% 29% Source: Planning and Performance Department – September 2008.

  23. Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today Customers

  24. Vivo’s Customer Base - Thousands Institutional Presentation Source: Planning and Performance Department ;

  25. Institutional Presentation Pre and Post paid plans - Millions Source: Planning and Performance Department;

  26. Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today Customers

  27. “Vivo Escolha” Plans Institutional Presentation Free Bonuses Long Distance and RoamingFree + SMS and Wap SMS + MMS +Wap Local Minutes Mobile + Fixed Favorite Vivo Number + Minutes on net SMS Included Franchise Plans Vivo Escolha 50 5 min + 30 min 50 + 50 + 500 KB = + - or or - R$ 52.00 50 min 50 min Vivo Escolha 90 15 min + 100 min 100 + 100 + 500 KB = & + or - or 50 R$ 83.00 90 min 50 min Vivo Escolha 180 15 min + 100 min = & 100 + 100 + 500 KB + or 180 min 1,000 min or or 50 R$ 129.00 150 min Vivo Escolha 350 15 min + 100 min = 300 + 300 + 2 MB & 350 min 100 1,000 min + or or or R$ 193.00 150 min Vivo Escolha 650 30 min + 200 min 300 + 300 + 2 MB = & 300 min + or 650 min 100 or or R$ 288.00 1,000 min Vivo Escolha 900 30 min + 200 min 300 + 300 + 2 MB = R$ 354.00 & 1,000 min + or 900 min 100 or or 300 min Vivo Completo 300 + 300 + 2 MB 1,000 min 30 min + 200 min = & + + 1,400 min 100 R$ 525.00 300 min

  28. Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today Customers

  29. ARPU – R$ Institutional Presentation

  30. Institutional Presentation SAC and Churn SAC CHURN

  31. Institutional Presentation Net Revenue – R$ million CAGR 03 - 07: 7.6%

  32. EBITDA – R$ million Institutional Presentation *Including extraordinary effects of ICMS on Telemig of R$ 240 million.

  33. Institutional Presentation Capex – R$ million

  34. Net Debt and Cash Flow – R$ million Institutional Presentation

  35. Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today Customers

  36. Institutional Presentation Today In the Second Quarter 2008, the clients of Telemig Celular joined Vivo’s client base, becoming part of a company that is among the world’s 15 biggest mobile operators, with a community of 42.3 million customers. 14º 5º 4º 3º 2º 1º Brazil World Source: Anatel 3Q08 (Brazil) /Merril Lynch - Global Wireless Matrix 2Q08 (World)

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