130225 - Apresentação 4Q12 - eng - SD [Somente leitura]
Transcript of 130225 - Apresentação 4Q12 - eng - SD [Somente leitura]
2Investor RelationsTelefônica Brasil S.A.
Highlights of the quarter
1 Expanding leadership in customer satisfaction index
Consistent performance of the business with recurrent EBITDA margin of 35.7% in the quarter
Sustaining leadership in post paid and high mobile revenue growth even with rational commercial policy
Stabilization of fixed revenue decline and solid quality standards
Dividend yield of 8% and payout of 96% of the profit in the year
2
3
4
5
4Investor Relations Telefônica Brasil S.A.
Quality standards in fixed and mobile remain solid, driving satisfaction and superior brand recognition
01
Higher satisfaction in fixed and mobile
CSI(Mobile)
CSI(Fixed)
sep/11 dec/11 mar/12 jun/12 sep/12 dec/12
Vivo Comp 1
6.92
7.40
* Ban on sales imposed by ANATEL for some of our competitors; ** Launch of the Vivo brand for fixed services; *** Folha de São Paulo.
sep/11 dec/11 mar/12 jun/12 sep/12 dec/12Vivo Comp 1 Comp 2 Comp 3
6.90
7.81
6.34
7.30
*
**
3223 20 18
Vivo Comp 1 Comp 2 Comp 3
Top of Mind (Brand Recall)***
Our brand image:
Best quality of signal
Best coverage
Best portfolio of handsets
Best customer care
Leader for the last 5 years
5Investor RelationsTelefônica Brasil S.A.
We accelerated the growth in data and post paid, which is enhancing our value generation
AccessesMillion
1 Includes fixed voice, fixed broadband and pay TV.2 Includes pre and postpaid customers.Source: Anatel.
01
1
6.4%
-2.2%86.9 91.9
71.6 76.8 76.1
15.3 15.1 15.0
4Q11 3Q12 4Q12
Mobile Fixed
YoY91.1
4.9%
-0.8%
Post paid Accesses and Mobile Data Users (Handsets and Data cards with data plans and packages / Million)
QoQ Post paid growth
16.6
17.2
18.0
18.8
1Q12 2Q12 3Q12 4Q12
Post paid
QoQ Data growth
2
3.3% 4.5%3.1% 4.7%
24.2%9.0%10.8%
More strict disconnection
policy
8.39.2
10.0
12.4
Data
6Investor RelationsTelefônica Brasil S.A.
Our selective approach in prepaid has led to efficient growth in recharges
Mobile AccessesMillion
Mobile Market Share%
01
Source: Anatel.
*
* Anatel data available since 2Q12.
55.4 58.9 57.3
16.1 18.0 18.8
4Q11 3Q12 4Q12
Prepaid Postpaid
3.4%
16.7%
YoY
6.4%
71.676.8 76.1
-0.9%29.5% 29.1%
36.6% 36.9%47.2%
4Q11 4Q12Blended Postpaid Data cards
Efficient Prepaid Growth
16%
3%
17%14%
4Q11 4Q12
∆% prepaid customers - YoY∆% of recharge - YoY
Selective commercial
strategyreduced
commercial efforts and produced a
more active customer
base
More strict disconnection
policy as of Oct,12(a reduction from
60 to 50 days without traffic)
+0.3 pp
Leadershipof + 18 pp
vs. the second place
7Investor RelationsTelefônica Brasil S.A.
Better mix of additions and efficiency in acquiring new clients significantly reduced payback per customer
ARPUR$
ARPU adjusting for MTR effectR$
01
-6.1%
6.6%
YoY
-2.8%7.9%
18.2 16.0 17.1
6.4 6.2 6.8
24.6 22.2 23.9
4Q11 3Q12 4Q12
Voice Data
4Q11 3Q12 4Q12
-0.8%7.2%
24.6 22.8 24.4
SACR$
-28.8%
YoY
% smartphones over total adds
59.7 42.5
42%
68%
4Q11 4Q12
PAYBACK (SAC/ARPU)Months
2.43 2.31 1.78
4Q11 3Q12 4Q12
-27%-23%
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Fixed broadband and voice maintain annual improvement. We are working to turn around the TV business
01
Voice and Fixed Broadband AccessesMillion
Evolution of Broadband accesses through FTTH
-3.1%
2.8%
4Q11 4Q12
2.2 x 50% of Fiber BB sales in the city of SP included IPTV since December. ARPU uplift of R$100 on average
11.0 10.7 10.6
3.6 3.8 3.7
0.7 0.6 0.6
4Q11 3Q12 4Q12
Fixed Voice Fixed Broadband Pay TV
-14.2%
YoY-0.7%
-2.2%
15.3 15.1 15.0
Fixed Voice disconnections
(97) (114)(57) (68)
1Q12 2Q12 3Q12 4Q12
9Investor RelationsTelefônica Brasil S.A.
Corporate segment is sustaining superior performance in mobile and fixed
Evolution of Corporate Accesses
01
4Q11 4Q12
+13%
ARPU 50% higher than the average of the market
Greater volume of adds in post paid and data plans
4Q11 4Q12
4Q11 4Q12
2.5 x
Fixed Voice accesses
4Q11 4Q12
Annual growth of 19% in fiber gross adds during the 4Q12
Fixed UBB accesses
Mobile accesses Penetration of data plans
ARPU strongly benefited by the increase of data penetration
+11pp
+10%
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Recurrent profitability of 36% in the quarter driving consistent results for the year
Negocios
R$ million 4Q12 ∆% YoY 2012 ∆% YoY
Net Operating Revenue 8,910.3 3.6% 33,931.4 2.3%
Total Net Operating Service Revenue 8,561.5 1.5% 32,970.1 2.3%
Wireless Service Revenue 5,474.4 7.4% 20,436.4 9.7%
Wireline Service Revenue 3,087.2 -7.6% 12,533.6 -7.7%
Net Handset Revenue 348.8 114.0% 961.4 0.7%
EBITDA 3,854.0 16.5% 12,705.4 5.6%
EBITDA Margin 43.3% +4.8 p.p. 37.4% +1.2 p.p.
Adjusted EBITDA 3,178.3 +8.6% 11,562.9 0,0%
Adjusted EBITDA Margin 35.7% +1.6 p.p. 34.1% -0.8 p.p.
Net Result 1,474.3 0.8% 4,452.2 -12.2%
01
11Investor RelationsTelefônica Brasil S.A.
We are the indisputable market leader in revenues and EBITDA share with strong operational and financial management
01
* Capex excluding licenses.** Cash flow after investing activities.
2.3% 4.7% 5.6%
47.0%
NetOperatingRevenue
EBITDA(-) Capex
EBITDA FCF
2012 - YoY growth
Share of Revenues - FY12
Share of EBITDA - FY12
31%23%
28%
17%
Vivo Comp 1 Comp 2 Comp 3
39%24% 22% 15%
Vivo Comp 1 Comp 2 Comp 3
* **37.4%
31.3% 23.6% 26.7%
EBITDA Margin
13Investor RelationsTelefônica Brasil S.A.
Mobile Net Service RevenueR$ Million
Mobile Service revenue growth remains healthy during the quarter and reached 9.7% in 2012 even with MTR reduction
In order to simplify the analysis the chart does not include ‘Other Revenues’.
Network UsageAccess and Usage Data and VAS
Mobile Net Service Revenue∆% QoQ
% Mobile Net Rev. / Total Revenue
QoQ growth excluding MTR impact
MTR impact
02
9.3%
-8.8%
17.3%
9,724 10,876
4,155 3,830
4,642 5,648
2011 2012
9.7%
20,43618,633
4,924 4,960 5,078 5,474
1Q12 2Q12 3Q12 4Q12
62.2%61.4% 63.1%
2.8% 2.1%-2.5%
65.4%
7.2%
YoY
11.8%
-7.8%
21.7%YoY
2,661 2,717 2,908
1,059 936 966
1,334 1,414 1,565
4Q11 3Q12 4Q12
5,097 5,0785,474
7.4%
7.8%
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Data and VAS revenue accounts for 29% of mobile net service revenue in the quarter. Internet revenues are growing 21.1% yoy in the 4Q12.
Data and VAS RevenueR$ Million
InternetMessaging P2P Other
Mobile Internet Revenue
11.4%
21.1%
02
473 482 527
646 705 782
215 227 255
4Q11 3Q12 4Q12
YoY
18.6%
1,334
17.3%
10.6%
1,414 1,565
1,562 1,921
2,367 2,826
713
901
2011 2012
4,642
21.7%
5,648
23.0%
19.4%
YoY
26.4%15.8% 16.4%
21.1%
1.6%4.6%
10.9%
2Q12 3Q12 4Q12
YoY growth QoQ growth
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Our efforts to improve the fixed business can be noticed in the improving trends in fixed voice revenues
02
* Includes voice, accesses and network usage.
Wireline Net RevenueR$ Million
Data and Pay TVVoice* Others
-11.1%
-3.2%
2,031 1,841 1,805
1,070 1,031 1,036
238 251 246
4Q11 3Q12 4Q12
3.2%
YoY
-7.6%
-1.1%
3,3403,122 3,087
8,559 7,407
4,096 4,155
929 972
2011 2012
-13.5%
+1.4%
4.6%
YoY
-7.7%
13,58412,534
-17.0%-13.4% -12.7%
2Q12 3Q12 4Q12
Voice and Accesses Revenue∆% yoy
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Non recurrent events 4Q12 + R$675.7
Non recurrent events 4Q11 + R$380.1
02 Consolidated expenses remained controlled during the quarter with a rational commercial strategy and reducing G&A expenses
R$ Million
-4.5%+55.9%-19.4%+4.9%+30.4%-6.0%-5.1%YoY
5,292
5,262 5,100 5,100 5,227 5,234 5,056
5,056 30 162 128 76 69 178
4Q11 Personnel ServicesRendered
Goods Sold Selling Expenses G&A Other 4Q12
4Q12 YoYadjusted
+1.0%+190.4%-19.4%+4.9%+30.4%-6.0%-5.1%
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Sequential improvement in recurrent margin for the last 2 quarters, reaching 35.7% in 4Q12
Recurrent EBITDA EBITDA
02
R$ Million
Solid growth of EBITDA and EBITDA margin in the quarter, helped produce consistent business performance in the yearRecurrent MarginRecurrent EBITDA
R$ Million
2,783 2,731 2,871 3,178
33.5% 33.1%33.9%
35.7%
1Q12 2Q12 3Q12 4Q12
EBITDA MarginEBITDA
3,308 3,854
38.5%
43.3%
4Q11 4Q12
12,035
12,705
36.3%
37.4%
2011 2012
18Investor RelationsTelefônica Brasil S.A.
4Q12 EBIT reaches R$2.4 billion, 22% higher yoy
Net Result
Financial ResultEBIT
Net Income Build-up
02
R$ Million R$ Million
0.8%
1,985 2,417
4Q11 4Q12
+21.7%-94 -125
4Q11 4Q12
6,903
7,212
2011 2012
+4.5%
33.9%
-179-291
2011 2012
62.0%
1,462 1,474
546 115 32 388
4Q11 EBITDA D&A FinancialResult
Taxes 4Q12
210
4Q11 4Q12
1,462 1,474
IOC impact
635
2011 2012
5,0724,452
-12.2%
17.7% 0.3%
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Capex reached R$6.1 billion in 2012 in line with expectations for the year
Net Debt
Capex
02
R$ Million
R$ Million
6,1175,741
3,165
1,083 440
4Q11 3Q12 4Q12
-86.1%-59.4%
4,929 5,067
812 1,050
14.9% 14.9%
17.3% 18.0%
2011 2012
Licenses% Capex (-) Licenses / Net Operating Rev.% Capex / Net Operating Revenues
21Investor RelationsTelefônica Brasil S.A.
EducationServices.
In 2012 we achieved important goals in our strategic pillars
Unm
atch
ed q
ualit
y an
d cu
stom
er s
atis
fact
ion
1
2
3
4
5
To provide a unique and integrated VIVO experience to each customer
To strengthen our convergent infrastructure focusing on quality
To continue fostering profitable growth
To drive innovation and capture new opportunities
To transform our operational model
Rebranding of fixed
services
Spectrum aquisition
To 90% of population
New DataCenter . FTTH .
coupled.with IPTV
Academy .HealthCare.
Prepaid...Account..
MFS….
Unified visionof customer
#1 in . .Satisfaction.
ImprovingIDA
Convergence in Sales Channels
Evolution ofCustomer
Intelligence
VivoBox Unbeatable
BroadbandSpeeds..
New...roaming
Offer...
Plans:3G Plus /
Smartphone 3G Plus
Backbone/Backhaul Partnerships
Tower..Sharing
Selfcare App. IntegratedWorkingFacilities
Virtual...Channel/
CustomerManagement
03
22Investor RelationsTelefônica Brasil S.A.
Pillar 1: We plan to advance even further to make a unique and integrated Vivo
Different brands
Customer known by service / device
Separate channels with different processes
Complex IT infrastructure with different systems and processes for fixed and mobile services
Separated Billing and Call centers
Fixed + Mobile Cross Selling
Only one brand for all services
Single vision of customers with multiple devices and services
Integrated channels
Convergent IT infrastructure
Convergent Customer Care and Billing
Fixed + Mobile Bundling
2011 GOAL
03
23Investor RelationsTelefônica Brasil S.A.
Pillar 2: We are further strengthening our convergent infrastructure by focusing on quality
Negocios
Expansion of fiber footprint
Improving speeds in copper, cable and fiber
Mobile internet in 3G Plus and 4G
Enable backbone to handle data traffic growth
Increase infrastructure sharing
Having the best network with investment and sharing
Transform the applications to a vision focused on the customer (Convergent CRM and Online Company)
Consolidate IT Commodities through the Data CenterConsolidation
Capture efficiency opportunities with the simplification of applications map
Efficient and dynamic IT infrastructure
03
24Investor RelationsTelefônica Brasil S.A.
Pillar 3: We continue fostering profitable growth
Keep Momentum in Mobile Protect Value in Fixed Services Consolidate Leadership in Corporate
• Focus on broadband growth in 3G Plus and 4G
• Leverage on our competitive advantages in quality, brand and network to gain share in higher revenue segments
• Bet on prepaid growth and convergence
• Grow smartphones for all segments (post and prepaid)
• Increase fixed + mobile convergence to improve ARPUs and loyalty
• Grow in innovative services and products (PTT, M2M, Vivo Cloud, “Perto de você”)
• Expand IT services to promote loyalty and revenue increase
• Unlock new opportunities with new data center
03
• Improve speeds in broadband and corporate data services
• Grow FTTH footprint and adoption for premium customers with unbeatable speeds and the best IPTV offer
• Focus on Bundling and cross selling to promote loyalty with fixed customers
• Implement a tactical plan to turn around TV business
25Investor RelationsTelefônica Brasil S.A.
Pillar 4: We are driving innovation and capturing new opportunities
03
DifferentiatedServices Offers Recent
Developments
eHealth Acquistion of Aximed by TDigital
Financial
New co branded credit cards with Bradesco and Santander
M2M Growth of 108% yoy
Security
Education
Exploring the great potential of Digital Services in Brazil
26Investor RelationsTelefônica Brasil S.A.
Pillar 5: We are transforming our operational model03
Optimizing customer management• Self-care • Own stores productivity• Stringent disconnection policy
Driving network efficiency• Tower sharing• Backbone and backhaul sharing
partnerships• Continuous analysis of other network models
Enhancing IT infrastructure• Private cloud• Unified data center• Unified billing infrastructure
Reinforcing a culture of excellence• Culture and quality-centric• Innovation driven• Agile
Billing
• # Online Account
Virtual
• Volume ofCustomer Carevia SMS
• Adoption to “Meu Vivo”(Selfcare app)
+ 5x
+3x
+2x
Sales Channels
• Most complete and convergent online store in the industry
• New recharges channel via Facebookand Paypal
Jan/12 Dec/12
Jan/12 Dec/12
Jan/12 Dec/12
Leveraging on our virtual channels Improving our operacional efficiency
27Investor RelationsTelefônica Brasil S.A.
In Conclusion03
Quality is and will continue to be the driving force behind our strategy, with leadership in mobile and fiber as our objectives
Our results for 4Q12 and 2012 confirm we are headed in the right direction…
Leadership in satisfaction
Gaining space in higher revenue segments
Stronger profitability
High dividend return to shareholders
Unifying vision on customers
Having the best network and convergent IT infrastructure
Growing with profitability in all customer segments
Expanding digital services
Increasing efficiency trough transformation of our operational model
… and we plan on evolving strongly in our strategic pillars in 2013
28Investor RelationsTelefônica Brasil S.A.
Disclaimer03
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 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.