4. Mobile Business is GDP-plus phenomenon
Brazilian real GDP growth Mobile Serv. Revenue growth
R$ Billion
+1.9% +11.0%
+2.7% +12.7%
+7.5%
+9.6% 68,8
+9.1% 62,0
-0.3%
50,2
55,0 Mobile will
46,0
continue to
take great part
of growth
2008 2009 2010 2011 2012* 2008 2009 2010 2011 2012*
*Market Expectations as of August, 03rd(Focus BC) *Expected (ML Matrix)
Demographic Global Mobile Markets Global Mobile Markets
improvements Annual Service Revenues 2011 Subscribers 2011
2003 2008 2014 173 986
Mln of people 108 894
C lass 82 332
A/B 13 20 31 4o
246*
37 4o
C 66 93 113 126
31
D 47 46 40 114
28
E 49 30 16 92
27 77
Above From R$1,115 From R$768 From zero
R$4,808 to R$4,808 to R$1,115 to R$768 23 US$ Bln 64 Mln Subs
Source: BofA ML Global Wireless Matrix 2Q12; Teleco; IBGE * Including Nextel 4
5. Continuous Reshaping of the Brazilian TLC Market
Market Transformation
R$ Billion
106 117 126 134
Mobile over
Fixed (44%) (40%) Fixed”:
(56%) (48%)
towards 60/40
split
(52%) (56%) (60%)
Mobile (44%)
2009 2011 2014 2016
Force Fixed- Mobile Internet
Mobile competitive vs
substitution <2 Mbps wireline
(voice) BB accesses
Voice is Good (Push the FMS) Internet for All
R$ Billion R$ Billion
96 52
82
Fixed 51 24
29
Fixed 28
53 10
Mobile 45
Mobile 8
2
2009 2016 2009 2016
5
6. FMS Secular Trend Remains on Play
Fixed to Mobile Substitution… …impacting Fixed Incumbents … benefiting Mobile Segment
Fixed Tariff Premium over Mobile Lines in Service Lines
ARPM (R$/min) (D% yoy) (D% yoy)
Mobile 3Q11 +18.0%
-4.9% 3Q11
40% mobile
discount -4.5% 4Q11
4Q11 +18.6%
-4.0% 1Q12 1Q12 +18.6%
Fixed
-3.4% 2Q12 2Q12 +17.6%
2006 2007 2008 2009 2010 2011 2012
Fixed Revenue Mobile Revenue
Mobile Outgoing price (% YoY) -23% -14% (D% yoy) (D% yoy)
-7.0% 3Q11 3Q11 +11.5%
Leading Traffic to a Sharp Increase
-8.0% 4Q11 4Q11 +12.4%
(Bln Minutes)
22.6 23.8 -7.6% 1Q12 1Q12 +14.5%
20.1 21.8
17.5 18.4
-8.5% 2Q12 2Q12 +7.9%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Integrated EBITDA Mobile EBITDA**
(D% yoy) (D% yoy)
Leadership in LD Market Share
(% Minutes) -6.2% 3Q11 3Q11
Category 4 +11.7%
88.2%
66.5% -5.9% +9.6%
53.3% 49.8% 48.5% 48.3% 49.7% 4Q11 Category 3
4Q11
6.7% 45.8% -0.6% 1Q12 1Q12
Category 2 +12.7%
28.3% 42.0% 47.8% 47.7% 48.1%
jun/09 jun/10 jun/10 dec/10 jun/11 dec/11 mar/12 -10.0% 2Q12 Category 1
2Q12 +6.0%
TIM Incumbents* -7,0%
* Telemar, Brasil Telecom, Telesp e Embratel. Source: Companies results and Teleco. **Represented by TIM 6
10. Q2 Financials Highlight
R$ mln
Guidance
2Q12 2Q11 Var. % YoY 1H12 Var. % YoY
>10%
Total Revenue (reported) 4,547 4,252 +7.0% 9,016 +12.6%
P Confirmed
Total Revenue (MTR adjusted) 4,668 +9.8% 9,180 +14.7%
>10%
EBITDA (reported) 1,214 1,145 +6.0% 2,383 +9.2%
P Confirmed
EBITDA (MTR adjusted) 1,262 +10.2% 2,453 +12.4%
~R$3 bln
CAPEX 1,057 724 +45.9% 1,600 +56.4% P Confirmed
(+R$0.5 Mln licenses)
Anticipation
focused on
Network
Leadership in Prepaid segment MTR cut (-R$121mln rev; -R$48 mln
Main Fastest data growth (+40%YoY) and Quarter EBITDA)
smartphone at 35.2% of total base Macro-economic and competitive
Achievements Impact environment
TIM Fiber started-up (Live TIM brand)
TIM Fiber start-up costs (~R$11 mln)
10
11. Effects on Q2: MTR and Macro Environment
MTR Macro Environment
Total Net Revenues P Macro economic scenario slowdown in 1H12 vs. 1H11 (i.e.:
P -R$121 mln impact on net
level of indebtedness; high commitment of income to debt
(R$ billion) service revenues and -
payment; GDP lower growth)
R$48 mln on EBITDA
4.7
+10%
0.1 GDP Quarterly Growth (YoY)
4,5%
4,2% 3,9%
3,3% 3,1%
P Still no elasticity coming on
4,0%
4.5 3,5%
4.3 +7% and traffic reshape to offset
3,0%
2,5%
2,1% 2,2%
MTR impact
2,0%
1,4%
1,5%
1,0%
0,8% 0,7%
2Q11 2Q12 0,5%
0,0%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12e 3Q12e 4Q12e 1Q13e
EBITDA
P FMS will lead to lower
(R$ billion) Handset Sale
dependency on MTR
Net Revenues Volume
1.3
+10% 83%
0.1 D YoY 143%
1.2 11%
1.1 +6%
-28%
2Q11 2Q12 2Q11 2Q12 2Q11 2Q12
P Short term competition aggressiveness
Revenues Costs
Drivers to softening these
Keeping the Innovative Macro scenario Intelig/ TIM Fiber EILD regulatory
impacts
approach improvement (leased lines swap) framework
2Q12 4Q12
11
Source: BCB, Bradesco Corretora and Company’s estimates
13. Growth Backed by Efficiency Approach
Customer Base Growth SAC and SAC/ARPU
(% YoY) (R$) P Continuous growth on pre-paid
26,8%
-210Bps 24,7%
+830Bps SAC/ 2.6 and acceleration on postpaid
18,5% ARPU
23,9%
Prepaid +860Bps 63 1.6
1.4
15,3%
+360Bps 35
P But with a rational approach:
Postpaid 11,7% SAC
(R$) 26
-44% -26% o significant subscriber
2Q10 2Q11 2Q12 2Q10 2Q11 2Q12 acquisition cost drop
o continuous bad debt
downward trend
Handset Subsidy Bad Debt Trend
(R$ million) (as % of Gross Revenues)
1.83% Sustainable business model
85 1.08%
Capitalized o Low bad debt
Subsidy 0.92%
o No subsidies
0 0
o Freedom to customers
2Q10 2Q11 2Q12 2Q10 2Q11 2Q12
13
14. Innovation Platform Generating Value
Pre Paid – Customer Base Post Paid – Customer Base
(000 lines) (000 lines)
Combining volume and
+25% 10,001 value throughout a complete
+24% 58,873 +15%
8,019
47,506 6,956 and unlimited platform of
+27%
37,469 services (local and LD calls,
SMS and data)
2Q10 2Q11 2Q12 2Q10 2Q11 2Q12
Volume of Top Up growth MOU and Post paid Churn Pre-paid consistent growth
(Mln recharges) (Minutes, % of lines)
Post-paid taking-up with
+3%
+24%
increasing traffic and lower
MOU
+18%
disconnections…
+42%
Churn
..even with no handset
-80Bps -50Bps
subsidy policy and no loyalty
2Q10 2Q11 2Q12 2Q10 2Q11 2Q12
14
15. Internet Take-Up Supported by Best Handset and Offering
Data Revenues Smart/Web phone Penetration
(% of Gross Mobile Service Revenues) (% smartphones/total CB (lines)
+490Bps
35.2%
18.7% 31.1%
18.1% 26.6%
16.7% 19.5%
15.7% 15.4%
12.6%
14.6%
13.8%
Value Added Services Revenues
(R$ billion) 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
% sold
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
1.03 48% 54% 71% 70% 77% 79%
+40%
0.73
SMS unique users growth Data users
(daily unique users) (monthly unique users)
18,907
2Q11 2Q12
+53%
~3X 12,391
2Q11 May 12
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
3G coverage
(% of urban
57% +1,100Bps 68%
pop.)
15
16. Consistent EBITDA and Net Income Growth
EBITDA Evolution From EBITDA to Net Income
(R$ Mln) (R$ Mln)
1,214
Handsets Rev.: +55
COGS: -43 R$54 mln one
off event due to
mark to market
+240 +12 +27 -172 -664 hedge position
-38 1,214
1,145
550 -64
26.9% EBITDA Margin 26.7% -140 347
32.7% Service EBITDA Margin
32.2%
EBITDA Depreciation/ EBIT Net Taxes Net
EBITDA Services Handset Marketing Network Personnel EBITDA 2Q12 Amortization Financial and Income
2Q11 Revenues Margin and Sales and ITX G&A and 2Q12 Result Others 2Q12
others
expenses
ΔYoY +6.4% -14.4% -2.8% +15.1% +8.7% ΔYoY +6.0% +7.8% +3.9% +44.6% +3.2% -0.9%
16
17. Cash Position Analysis
Capex D Working Capital
(R$ Mln) (R$ Mln)
2Q11 2Q12 Var D WC: R$230 mln
YoY
Network 61% 67% 600 Bps
IT 22% 28% 600 Bps 147
Others 17% 5% -1,200 Bps
1.057
-82
724
+46%
436 -260
2Q10 2Q11 2Q12
2Q10 2Q11 2Q12
OFCF Net Debt
Including TIM Fiber
(R$ Mln) (R$ Mln) net debt = R$87 mln
DOFCF R$-34mln YoY
DEBITDA-CAPEX = -R$261mln 2,520
D WC R$230mln 2,278
D Other –R$3mln 1,998
339 305
230
2Q10 2Q11 2Q12
Net DEBT/
2Q10 2Q11 2Q12 EBITDA 0.68x 0.45x 0.47x
(trailing 12m)
17
18. Conclusions and 2H12 Outlook
• TIM managed to maintain its solid operational improvements amid
tough 1H12 (macro-economic and competitive scenario)
Conclusions
• Data services continued at a solid pace
• Leadership in market share of net addition for 8th consecutive
quarter is a clear signal how TIM’s offer is indeed the best value option
• Operational efficiency set the tone, with significant subscriber
acquisition cost (SAC) and bad debt reduction
• Focus on network development, quality improvement and
communication to defend post-paid segment and reverse the bad
perception from Anatel ban
Outlook
• Insist on FMS trend with an innovative approach
• Support data revenues growth through smartphone penetration and
network strengthening
• Launching TIM Fiber (Live TIM)
18
20. TIM is Not the Worst in Quality!
=> Network KPIs
SMP 5 – Originated Calls Completion SMP 7 – Drop Calls
(% of completed calls) (% of drop calls)
Player A TIM Player B Player C Player A TIM Player B Player C
Apr-11 Apr-12 Apr - 11 Apr - 12
=> Commitment on Quality Improvement
Anatel Ranking of Complains Procon Ranking of Complaints TIM Call Center Index of Complaints
(SMP Compl./ Lines in Service * 1000) (Compl. of Integrated System of Procon) (Points)
-30%
Player A TIM Player B Player C Player A TIM Player B Player C
Mar-11 Mar-12 Jun-11 Jun-12 2Q11 2Q12
Source: Anatel, Procon and Company 20
21. Capex Allocation 2012-2014
R$ Million 2012 2013 2014 2012-2014
Total Infrastructure - Capex 2,764 2,733 2,776 8,184
Licenses 473 473
Others - Capex 351 248 266 865
TOTAL Capex 3,498 2,981 3,042 9,521
In 2012, due to the injunction, TIM
redistributed its Capex, allocating R$451 Mln
for projects related to Quality Improvements.
21
22. National Plan: Fiber Network
National and Metropolitan Fiber Network
OTN: Expansion Plan (w/Swap, w/ AES)
LONG DISTANCE METRO TOTAL
2011 KM 21,364 KM 7,532 KM 28,896
2012 KM 27,973 KM 9,705 KM 37,678 Macapá
2013 KM 36,540 KM 10,666 KM 47,206 Boa Vista Belém
M São Luis
M
2014 KM 41,308 KM 11,656 KM 52,964 Fortaleza
M
2012-’14 M Tucuruí Natal
M
Building + Swap + AES Manaus M
Teresina M João Pessoa
KM 24,068 M
Recife
Petrolina
M Maceió
P. Velho
Palmas M
M
Aracaju
Rio Branco
M
Cuiabá M
Salvador
Brasília
M
Goiânia M
M
BHE
M
FTTS: Construction of 14 MAN (Metropolitan Rings) by YE2012 M
M
M M M Vitoria M
Campo Grande M Campos
Maringa M M
M
M
M M
M
Rio de Janeiro
M
São Paulo
M
M
M Curitiba
M
M
Florianópolis
M
M
Porto Alegre
22
23. Improvement Plan Outlook
=> Commitment on Network Development
# TRX # Data Channel Elements Km of Fiber
(„000) („000) („000 km)
741
271 53
241 47
205 517 38
181 33
157 29
328
250
+75% 139 4.3x +84%
2011 1H12 2H12 2013 2014 2011 1H12 2H12 2013 2014 2011 1H12 2H12 2013 2014
=> Commitment on Quality Improvement
SMP 5 – Call Completion SMP 7 – Drop Call SMP 9 – Drop of Data Connections
(% of cluster above target) (% of cluster above target) (% of cluster above target)
92% 96% 97% 100% 100%
87% 93% 98% 100% 100%
76% 82%
+400Bps
+1,600Bps +700Bps
1H12 2H12 2013 2014 1H12 2H12 2013 2014 1H12 2H12 2013 2014
23
25. What is TIM Fiber
AES: widespread network in SP and RJ (urban area) Network Scale-up
(Km)
5,316
A unique
RJ 50% Network
1,650 P Mission:
1,500
SP 50% Build the strongest network in Brazil
100% 91%
9%
P Rational:
AES Telefonica Oi-Telemar
Infrastructure 1) Increase of capacity and
in SP capillarity:
a. Backhauling: additional 5,300
km in top 2 cities
b. Most valuable asset to swap
with other operators
2) Network cost structure
transformation
a. Opex (leased lines)
Complementary Backbone Backhauling Access b. Capex avoidance (eg. FTTS)
Capillarities E 3) Prevent OPEX increase from
D
A A leased lines in the case other
C
operator buys the company
B
(AES prices are ~50% lower
than Telefonica)
TIM/Intelig Mobile
Fixed
AES
(last mile)
25
26. Brazilian Broadband Market: Low Performance
Incumbents Internet speed Distance: Performance vs average distance from the central
Share by speed Central distance
Market Share Speed Share
10% 14% <2MB
21% 20% > 2km
Altern. >12M
2-12M 65% 36% 80%
61%
2-5MB
3% 73%
45% 22% 80%
55%
75%
43%
31% < 2km
29% 20%
Incumbent 13% >5MB
<2M 4%
BR UK US Italy Brazil Developed
Countries
• Current incumbents’ base has low performance…
• ...situation should not change in the near term due to the high distance
between clients and the central through the existing cooper network
Fonte: BofA Merrill Lynch 2011 Global Wireline Matrix, Teleco, Nielsen and State of the Internet Q1 2012 (Akamai) 26
27. Marginal CAPEX required to connect customers
Investment per active household (R$)
Metropolitan Street Internal
Installation Modem
Network Equipment Network
Aerial
~500
network
+ ~250 + ~125 + ~200 + ~125 ~2400
Underground
~1,700
nertwork
~500
• AES Acquisition: • Power Node • Installation. using • Not Necessary: • VDSL Modem:
fully exploiting (MSAN) + premises existing building already existing cost efficient
existing fiber access: high infrastructure connection solutions with
network with high flexibility. time to (jumper. DDF) belonging to high standardized
capillarity (5,500 market and costs the building products
Km in SP/RJ). “i.e. efficiency
drop instead of (standardized
last mile” solution)
27
28. TIM Fiber: Accessing value creation perspective
R$1.1 Bln R$0.4 Bln
Savings in Transport CAPEX and OPEX Corporate Segment Acceleration
• Sites directly connected with fiber: • SP and RJ metropolitan areas represent 35% of the
- Reducing leased lines OPEX national corporate market
- Avoiding future CAPEX and OPEX • Intelig with ~4% of SME market share
• Increasing sites capacity for speeds 4G like • Capillary access network allows quick installation
and fast growth
+ TIM Fiber
+ TIM Fiber
Total
R$4.8 Bln
R$0.8 Bln R$2.5 Bln
Mobile Data Acceleration Launch of the Residential Broadband
• Higher speeds in mobile access • Market in strong growth. with potential to grow ~R$
• High transport capacity. eliminating bottlenecks 2 Bln over the next 4-5 years
• Possibility to accelerate FMS also through modems • Residential market underserved by incumbents.
which present low performance due to old copper
networks
+ TIM Fiber TIM Fiber
28
29. Network and Marketing Highlights
MSANs
Homes
Optical Passed Ready
network Backbone to Sell
Network 2
Construction 1
220k
3
Buildings authorized Building’s accessed MSANs installed
5,700 2,100 214
Market Demand Quality of Service
(Units) (Mbps)
35
Download 1,8
Website
63k Speed
Registration
Market Market Average Live TIM
Demand and
Quality of 20
Service 0,4
Upload
Activation 1k Speed
Market Average Live TIM
29
30. Offering: Live TIM
TIM Fiber vs. Peers
Speed 35 Mbps 50 Mbps 1 Mbps 30 Mbps 15 Mbps 35 Mbps 50 Mbps 10 Mbps 20 Mbps
R$ 84.70 Don’t Offer R$162.80 R$362.80 R$129.90 R$179.90
Naked R$89.90 R$119.90 (R$ 29.80 w/ R$119.11 (R$ 79.90 w/ (R$ 99.90 w/ (R$299.90 w/ (R$59.90 w/ (R$99.90 w/
Price fixed) fixed) fixed) fixed) TV) TV)
-25%
Unlimited Fixed 10k min local + 25
Unlimited Unlimited Fixed on-net local + LD min mobile + 25 LD Unlimited local + LD
Fixed (+ R$39.90) (+ R$54.90) (+ 69.90) (+ R$68.90) (+49.90)
R$129.80 R$159.80 R$84.70 R$174.01 R$149.80 R$168.80 R$368.80 R$179.80 R$229.80
Bundle
(BB + Fixed) -25% -13% -23% -56%
Suspended
Bundle R$179.70 R$209.70 R$144.60 R$199.70 R$218.70 R$428.70 R$184.70 R$224.70
Sales
(+ Basic TV) -7%
Discount: TIM Fiber 35Mbps vs others
Discount: TIM Fiber 50Mbps vs. others
30
32. 2012-14 Drivers of Growth
CAGR 11-14
3 Ways of Growth Revenue Growth
R$ billion
17.1
Total 13.8 14.5
Double digit
Revenue growth
15.3 Fixed
12.8 13.6
0.8
0.6 0.7
Services
Revenues 12.2 12.9 14.5 Mobile
90 25% VAS
200 mou
mln lines Incidence
2009 2010 2011 2012 2013 2014
Community Expansion FMS (Voice) Internet for All
Mobile Customer Base FMS – Voice (MOU) Internet for All (Mobile Data)
Million of lines Minutes of usage per line Data as % of Service Revenue
250
~200 ~25%
200
90
129
116
150
14%
64 11% 12%
83 Double digit Double digit
51
100
41 Double digit growth growth
growth 50
Outgoing Voice Revenues Data Revenues
0
2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014
32
33. Network Continuous Evolution
Network roadmap 2G (TRX Installed) 3G roll out
000 TRX Pop %
2G Managing the growth
271 >80%
Speed up the toll out in
3G 157
HSPA mode 64%
>10,000 hot spots by
WiFi
YE2012
2011 2014 2011 2014
FTTS Deployment in Top 42 cities
FTTS Fiber Network
FTTH ~1 Mln households by 2015
% of total traffic 000 km
Efficiency >50,000 km in fiber optic
50% 53.0
42 Cities 24.1
TIM Fiber
TIM Fiber: a “no Capex intensive” 14 Cities 28.9
approach to offer Residential Ultra BB in
2012 2014 2011 Swap + 2014
SP/RJ built out
33
34. Take-aways on main TIM Brasil trends
Revenues (New vs Old Plan)
R$ Billion
MTR glide path (-20% real term) as of feb‟12
New impacts approx. 250 bp in Revenues and
EBITDA
Old
Revenues Growth resulting from further CB, voice MOU
17.1
and internet browsing
14.5 For 2012, revenues growth at >10% YoY (vs.
15.5 R$17.1Bln in 2011)
14.5
1yr in advance
Network synergies from AES Integration
2010 2011 2012 2013 2014
Continuous efficiency in Go2Market (no
subsidy, SAC/bad debt)
Ebitda Absorbing MTR cut and TIM Fiber start-up
Organic Capex For 2012, Ebitda growth at >10% YoY (vs.
R$4.6Bln in 2011)
% of Revenues; R$ billion
19,6
20 17,5
Expanding 2G capacity and 3G coverage
15
Accelerate FTTS in Top 42 Cities and Wi-fi
10 offloading
3.0 3.0 3.0 3.0 Capex Tim Fiber start-up
nds
2.8
CAPEX CAPEX flat at 3 bln/year; R$9bn in 3 Years
excluding 4G spectrum license (R$ 382.2 mln)
2010 2011 2012 2013 2014
34
35. Offering (1/2): Prepaid & “Controle”
INFINITY Pré: prepaid plan
Base tariff: R$ 0.25/call (TIM to TIM local
and LD)
INFINITY Mais: R$ 0.50/call (TIM to fixed)
INFINITY Web (data): R$ 0.50/day
(unlimited usage)
INFINITY Torpedo (sms): R$ 0.50/day
(unlimited texting)
Liberty Controle: monthly fee R$ 27 (R$10 to
No membership fee use as wanted)
No minimum recharge required
Base tariff: unlimited local and LD calls TIM to
TIM
INFINITY Mais: R$ 0.50/call (TIM to fixed)
INFINITY WEB MODEM: Daily
internet for smartphones‟ heavy users INFINITY Web (data): R$ 0.50/day (unlimited
(>10MB/day), tablets and dongles in a usage)
prepaid concept.
INFINITY Torpedo (sms): R$ 0.50/day
Base tariff: R$ 1.99 per day (unlimited texting)
Speed Cap: 80MB per day, after cap
speed is limited to 50 Kbps.
No membership fee
35
36. Offering (2/2): Postpaid
LIBERTY WEB: postpaid unlimited
data plans for Smartphones, Tablets
and Dongles
LIBERTY WEB Smart:
R$ 29.9/month (speed cap 300 MB)
TIM LIBERTY: postpaid plan with monthly fees from R$39 to R$269
depending on the package of minutes for other operators (50 to 800 LIBERTY WEB Light:
min) R$ 35.0/month (speed cap 500 MB)
Base tariff: unlimited local and LD calls TIM to TIM LIBERTY WEB Tablet:
R$ 49.9/month (speed cap 800 MB)
LIBERTY Torpedo (sms): R$ 9.90/month (unlimited texting) LIBERTY WEB Modem:
R$ 69.9/month (speed cap 3GB + Dongle*)
LIBERTY Viagem (national roaming): R$ 9.90/month (unlimited usage
for incoming calls when roaming) LIBERTY WEB Modem Plus:
R$ 109.9/month (speed cap 5GB + Dongle*)
LIBERTY Rádios (TIM-radio): R$ 9.90/month (unlimited local and LD
calls to radios) *12 x R$8.90 – no fine appliance nor contract
LIBERTY PASSPORT VOZ (Americas
BEFORE: LIBERTY PASSPORT: Voice and data and Europe) - R$29.9/day: unlimited
Roaming Offer: (US$/min) postpaid offers for international incoming calls and 50 minutes of outgoing
Americas : roaming in a daily charge concept calls (local roaming calls and calls to TIM
Outgoing: Local – 1.99 / Home – 3.99
fixed and mobile numbers in Brazil)
Incoming: 2.69
Data – R$ 33.0/MB LIBERTY PASSPORT WEB (Americas) -
Rest of World: R$29.9/day: unlimited data / Europe -
Outgoing: Local - 2.39 / Home – 4.99 R$39.9/day
Incoming: 2.39 More than 50 countries among 5
Data – R$ 33.0/MB continents are eligible to the offers 36
37. Historical Data: Financials (R$ Thousand)
Description 2Q10 2Q11 3Q11 4Q11 1Q12 2Q12 2Q12 %YoY
Net Revenues 3,558,982 4,251,758 4,371,388 4,710,566 4,468,319 4,547,332 7.0%
Net Revenues on Services 3,349,985 3,743,998 3,886,617 4,259,425 4,015,418 3,984,174 6.4%
Net Revenues on Products 208,997 507,760 484,771 451,141 452,900 563,158 10.9%
Operating Expenses (2,548,906) (3,106,497) (3,214,681) (3,393,790) (3,299,666) (3,332,928) 7.3%
Personnel expenses (147,520) (156,381) (158,351) (164,652) (175,997) (186,441) 19.2%
Selling & marketing expenses (854,498) (946,894) (1,010,953) (1,079,699) (1,015,274) (920,101) -2.8%
Network & interconnection (1,044,935) (1,140,126) (1,198,558) (1,281,199) (1,301,199) (1,311,753) 15.1%
General & administrative (125,981) (134,326) (110,262) (133,745) (132,180) (126,452) -5.9%
Cost Of Goods Sold (231,867) (587,588) (597,708) (544,674) (533,460) (631,464) 7.5%
Bad Debt (90,458) (66,274) (60,825) (62,451) (56,640) (62,050) -6.4%
Other operational revenues (expenses) (53,647) (74,909) (78,024) (127,370) (84,917) (94,667) 26.4%
EBITDA 1,010,076 1,145,262 1,156,707 1,316,776 1,168,652 1,214,403 6.0%
EBITDA Margin 28.4% 26.9% 26.5% 28.0% 26.2% 26.7% -23 Bps
Depreciation & amortization (771,445) (615,889) (643,829) (641,338) (656,629) (664,233) 7.8%
EBIT 238,631 529,373 512,878 675,438 512,024 550,171 3.9%
Net Financial Results (58,911) (43,974) (61,450) (100,817) (42,178) (63,588) 44.6%
Income before taxes 179,720 485,398 451,429 574,621 469,845 486,583 0.2%
Income tax and social contribution (53,757) (135,417) (134,796) (173,463) (193,407) (139,796) 3.2%
Net Income 125,964 349,981 316,632 401,158 276,439 346,787 -0.9%
Description 2010 2011 YTD 2012
Net Revenues 14,457,450 17,085,976 9,015,650
Net Revenues on Services 13,571,626 15,353,228 7,999,593
Net Revenues on Products 885,824 1,732,748 1,016,058
Operating Expenses (10,263,854) (12,429,883) (6,632,595)
Personnel expenses (586,722) (632,828) (362,438)
Selling & marketing expenses (3,483,164) (3,933,753) (1,935,375)
Network & interconnection (4,227,042) (4,724,475) (2,612,952)
General & administrative (484,609) (502,640) (258,632)
Cost Of Goods Sold (1,026,091) (2,062,552) (1,164,924)
Bad Debt (310,498) (231,529) (118,690)
Other operational revenues (expenses) (145,728) (342,105) (179,584)
EBITDA 4,193,596 4,656,093 2,383,056
EBITDA Margin 29.0% 27.3% 26.4%
Depreciation & amortization (2,993,461) (2,588,651) (1,320,861)
EBIT 1,200,135 2,067,442 1,062,194
Net Financial Results (245,457) (238,857) (105,766)
Income before taxes 954,678 1,828,584 956,429
Income tax and social contribution 1,257,038 (547,357) (333,202)
Net Income 2,211,716 1,281,228 623,226 37
38. Historical Data: Financials (US$ Thousand)
Description 2Q10 2Q11 3Q11 4Q11 1Q12 2Q12 2Q12 %YoY
Net Revenues 1,985,297 2,663,600 2,672,520 2,615,277 2,524,263 2,315,258 -13.1%
Net Revenues on Services 1,868,713 2,345,503 2,376,148 2,364,807 2,268,409 2,028,529 -13.5%
Net Revenues on Products 116,584 318,097 296,373 250,470 255,855 286,730 -9.9%
Operating Expenses (1,421,849) (1,946,128) (1,965,349) (1,884,211) (1,864,063) (1,696,949) -12.8%
Personnel expenses (82,291) (97,968) (96,811) (91,414) (99,425) (94,926) -3.1%
Selling & marketing expenses (476,662) (593,201) (618,063) (599,442) (573,553) (468,466) -21.0%
Network & interconnection (582,893) (714,255) (732,758) (711,314) (735,079) (667,874) -6.5%
General & administrative (70,275) (84,151) (67,411) (74,255) (74,672) (64,383) -23.5%
Cost Of Goods Sold (129,342) (368,106) (365,419) (302,399) (301,365) (321,508) -12.7%
Bad Debt (50,460) (41,519) (37,186) (34,672) (31,997) (31,593) -23.9%
Other operational revenues (expenses) (29,926) (46,928) (47,701) (70,715) (47,972) (48,199) 2.7%
EBITDA 563,448 717,472 707,172 731,066 660,201 618,309 -13.8%
EBITDA Margin 28.4% 26.9% 26.5% 28.0% 26.2% 26.7% -23 Bps
Depreciation & amortization (430,333) (385,836) (393,615) (356,067) (370,946) (338,192) -12.3%
EBIT 133,115 331,636 313,557 374,999 289,255 280,118 -15.5%
Net Financial Results (32,862) (27,549) (37,568) (55,973) (23,828) (32,375) 17.5%
Income before taxes 100,253 304,087 275,988 319,026 265,427 247,742 -18.5%
Income tax and social contribution (29,987) (84,835) (82,410) (96,305) (109,260) (71,177) -16.1%
Net Income 70,266 219,253 193,579 222,721 156,167 176,566 -19.5%
Description 2010 2011 YTD 2012
Net Revenues 8,231,230 10,201,868 4,839,522
Net Revenues on Services 7,724,407 9,163,550 4,296,937
Net Revenues on Products 506,823 1,038,317 542,584
Operating Expenses (5,842,070) (7,423,994) (3,561,012)
Personnel expenses (333,456) (378,222) (194,351)
Selling & marketing expenses (1,982,451) (2,348,218) (1,042,020)
Network & interconnection (2,404,499) (2,820,821) (1,402,954)
General & administrative (275,650) (300,371) (139,054)
Cost Of Goods Sold (587,945) (1,235,395) (622,872)
Bad Debt (175,766) (138,555) (63,590)
Other operational revenues (expenses) (82,302) (202,411) (96,171)
EBITDA 2,389,160 2,777,874 1,278,510
EBITDA Margin 29.0% 27.2% 26.4%
Depreciation & amortization (1,700,012) (1,547,913) (709,137)
EBIT 689,148 1,229,961 569,372
Net Financial Results (139,353) (140,652) (56,203)
Income before taxes 549,795 1,089,309 513,169
Income tax and social contribution 745,372 (325,734) (180,437)
Net Income 1,295,167 763,575 332,733 38
