1.
Vivo Participações
1Q06 Consolidated Results
May, 4 2006
1

2.
Highlights
Development • Quality : 95.6% Anatel’s goals achieved;
• Network and Handsets authentication in progress;
• Reduction in PDD.
Leadership • Leadership in cellular telephony in Brazil with 33.7% Market Share*;
• More than 30 million clients;
• More than 8 thousands points of sale (exclusive or not).
Capex • Consolidation / Rationalization of IT/IS;
• Coverage;
• Customer Care to Corporate Segment.
• Digital Coverage in all cities where Vivo operates;
Technology
• More than 79% of covered cities have 1xRTT;
• Percentage of Population served with 1xRTT = 86%.
• EBITDA of R$717.1 millions on 1Q06;
Finance
• Positive Operating Cash Flow of R$ 435.8 millions.
• Corporate Restructuring successfully implemented;
Corporate Governance
• Second Stage proposed for incorporation of subsidiaries.
* 43.5% in it’s authorized areas.
2

3.
Client Base Evolution
+11.8% YoY
Growth Percentage
+ 11.8%
+ 13.1%
26,958 30,138
+ 8.5% 5,761 Post + 6.1%
5,308
+ 12.6%
1Q05 1Q06
24,377
21,650
Corporate Client Private Client
•Loyalty and Retention
•Focus on value clients
1Q05 1Q06
Pre Post
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4.
Leadership in Distribution & Coverage
Only Operator in 3G : 18 Cities with EV-DO
Channels of distribution
86% Pop with 1xRTT
1,780 Cities with 1xRTT
8,175
7,113 2,237
325 6,287
116
92
1,752
1,627
3,290
2,935
2,200
4,560 4,062 3,995
Vivo C1 C2 Vivo C1 C2
Retail Third Party Own Stores Cities Covered
4

5.
Innovation & Technology
• Improves capacity of voice and data Handsets Models
1XRTT transmission.
7 EV-DO Models
75%
50% with Digital Camera
• 3G Access Technology ;
• Data Transmission of speed 2.4 Mb/sec;
EV-DO
• High End Activations: + 25% EV-DO;
25%
• More than 80 thousand clients.
High + Mid End Low End
• High Speed Internet Access;
Plack & • More than 12 options of internet access
PDA cards and PDA’s;
• Enables automated solutions to banks,
service sector and industries. TREO 650 Model
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6.
1Q06 Main Marketing Actions
Vivo bom de papo Fale mais por menos
Customer talks to 30 million
Features two packages with persons in Brazil for R$0.30
high minute content at per minute
promotional prices
Recarga em dobro
Features the recharge
value in double to local
calls
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7.
Loyalty and Retention
Focus on Mid and High Range Clients
LOYALTY RETENTION
Changes for
Segmented
Segmented
Incentive to retain Pre-paid client through discounts
Pre-Paid
Offer
in the exchange for a new handset keeping the Special offers to retain clients.
number
Program of
Points are added and can be used when handset is
Points
Migration
Pre-Post
exchanged. Balance of points is sent by SMS. Inform to pre-paid clients the advantages of
being a Post-Paid.
Overlay CDMA
Incentive to change TDMA handsets for CDMA
Upgrade of Plans
based on points.
and Packages
Adequate plan to profile maximizing value-for-
money to client and increase customer
satisfaction
Globalmoto
Direct mail
Enables mid and high range clients to acquire the
Globalmoto handset at differentiated prices.
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8.
Net Revenue
R$ million
+ 0.6%
2,987
2,577 2,594
1,373
1,130 1,206 • Right Planning
• Campaigns to incentive the
intra network usage;
1,018
1,053 930 • Data transmission ;
140 • Internet access cards; PDA’s
126 143 and SMS.
268 456 315
1Q05 4Q05 1Q06
Handset Other Service
Network Usage Monthly Subscription
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9.
Data Revenue Evolution
R$ million
Data Net Revenue Data Net Rev./Service Net Rev.
1Q06
+22%
4Q05 +21%
7.1%
0.8 pp
6.3%
5.8% 0.5 pp
1Q05
1Q05 4Q05 1Q06
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10.
Data: Services Breakdown
Incentive to the Use of Higher Value Added Services
Increase in WAP & ZAP
1Q05 1Q06
29% 41%
13% 16% 19% 22%
71% 59%
WAP SMS ZAP + others WAP SMS ZAP + others
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11.
ARPU Blended
1Q05 vs. 1Q06 1Q06 vs. 4Q05
-11.8% -12.4%
28.8 29.0
25.4
( 0 .9 ) 11.6
13.3 ( 1.5 )
( 1.9 ) ( 2 .7 )
10.4
15.5 17.3
15.0
Inbound
Outgoing
1Q05 1- Client B ase 2 - Real A RP U 1Q06 2 - Real A RP U 1- Client B ase 4Q05
Gro wth, M ix and Variatio n Variatio n Gro wth, M ix and
B usiness Days B usiness Days
Outgoing 15.5 (0.2) (0.4) 15.0 (1.9) (0.4) 17.3
Inbound 13.3 (1.3) (1.5) 10.4 (0.7) (0.5) 11.6
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12.
ARPU Post-Paid
1Q05 vs. 1Q06 1Q06 vs. 4Q05
-3.1% -12.6%
85.5
77.1
74.7
( 0 ,9 ) 23.7
( 2 ,0 )
24.9 ( 0 ,4 ) 21.5 ( 9 ,9 )
61.8
52.2 53.2
Inbound
Outgoing
1Q05 1- Client B ase 2 - Real A RP U 1Q06 2 - Real A RP U 1- Client B ase 4Q05
Gro wth, M ix and Variatio n Variatio n Gro wth, M ix and
B usiness Days B usiness Days
Outgoing 52.2 (0.1) 1.1 53.2 (8.2) (0.4) 61.8
Inbound 24.9 (1.9) (1.5) 21.5 (1.7) (0.5) 23.7
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13.
MOU Blended
1Q05 vs. 1Q06 1Q06 vs. 4Q05
-17.5% - 8.9%
81.9
74.1
( 4 .6 ) 67.5
44.6 ( 2 .7 )
( 9 .7 ) ( 3 .9 )
40.0
36.5
37.3
31.0
34.2
Inbound
Outgoing
1Q05 1- Client B ase 2 - Real M OU 1Q06 2 - Real M OU 1- Client B ase 4Q05
Gro wth, M ix and Variatio n Variatio n Gro wth, M ix and
B usiness Days B usiness Days
Outgoing 37.3 (0.5) (5.7) 31.0 (2.0) (1.1) 34.2
Inbound 44.6 (4.1) (4.0) 36.5 (1.9) (1.6) 40.0
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14.
MOU Post-Paid
1Q05 vs. 1Q06 1Q06 vs. 4Q05
+0.4% -5.4%
210.7
198.6 199.4
7 .1
( 4 .5 ) 80.1
( 6 .9 )
( 6 .4 ) 76.0
80.5
130.6
123.4
118.2
Inbound
Outgoing
1Q05 1- Client B ase 2 - Real M OU 1Q06 2 - Real M OU 1- Client B ase 4Q05
Gro wth, M ix and Variatio n Variatio n Gro wth, M ix and
B usiness Days B usiness Days
Outgoing 118.2 (0.4) 5.6 123.4 (4.5) (2.7) 130.6
Inbound 80.5 (6.0) 1.5 76.0 (2.4) (1.8) 80.1
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15.
SAC*
Strategy focused on Retention and Acquisition of Value Clients
-11.3% -7.4%
141
125 135
1Q05 1Q06 4Q05
*SAC Blended
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16.
Operating Costs*
Costs Grow with competitive activity
R$ million
Cost of 376
services 434
rendered 445
153
Personnel 156
165
412 1Q05
Cost of
433 1Q06
handsets
626
4Q05
564
Selling
728
expenses
951
General & 122
administrative 129
expenses 181
*Depreciation is not included.
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17.
PDD Reduction
Operating and Control Initiatives
R$ million
260.8
Structure and Process Initiatives :
Authentication of third party Analog
and
TDMA network;
161.0
- 38.3% Interception of calls posted by Vivo
clients in roaming;
88.4 “Credit Scoring”;
“Customer screening”;
“Management of Consumption”.
1Q05 4Q05 1Q06
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18.
EBITDA and EBITDA Margin
R$ million
EBITDA EBIT
27.6%
37.9%
21.8%
977.7
650.1 717.1
446.3
125.5
59.6
1Q05 4Q05 1Q06 1Q05 4Q05 1Q06
EBITDA EBITDA Margin
EBIT
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19.
Gross Debt, Net Debt and Gearing
Improvement in Gearing. Short Term Debt is Covered.
Gross Debt (R$ million) Net Debt (R$ million)
5,652.8
5,482.6
69% 60%
4,464.4
4,156.3
40%
31%
4Q05 1Q06 4Q05 1Q06
Short Term Long Term
Gearing
R$ million 8,594 8,416
4,156 4,464
0.48 0.53
Net Debt 4Q05 1Q06
Shareholder's Equity
4Q05 1Q06
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20.
Net Financial Result
Reduction in Financial Expenses
R$ million
(221.7) (232.4)
(186.3)
- 16.0% - 19.8%
1Q05 1Q06 4Q05
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21.
Capex
Main Investments :
Network Quality/Capacity;
Coverage Expansion – CDMA 1XRTT and EV-DO;
Centralized systems and platforms;
Corporate segment: handsets and technology.
Total Capex % Capex/Net Revenues
878.1
118.6
29%
216.2
535.3
84.0 21%
66.6
281.3 11%
543.3
103.3
384.7
85.9
92.1
1Q05 4Q05 1Q06
1Q05 4Q05 1Q06
Network Technology Others
21

22.
Net Result
R$ million
1Q05 4Q05 1Q06
42
(179)
(263)
22

23.
Corporate Structure
Present Proposed
BRASILCEL, NV Mercado BRASILCEL, NV Mercado
62.35% 37.65% 62.35% 37.65%
VIVO PARTICIPAÇÕES S.A. VIVO PARTICIPAÇÕES S.A.
100% 100%
GLOBAL
Global
Telergipe
Celular
Telebahia
Celular
Telerj
Celular
Telest
Celular
Celular
CRT
Telecom
Telesp
Celular
Tele Centro Oeste
Celular
TELECOM S.A.
Celular
100%
Norte
Telems Telegoias Telemat Teleron Teleacre TCO IP
Brasil
Celular Celular Celular Celular Celular Celular
Telecom
23

24.
Anatel Standards
Leadership in Meeting Quality Goals
First Ranked Network Quality
Best
Performance
VIVO C4 C3 C1 C2 VIVO C4 C3 C2 C1
National Ranking among SMP Controlling Competitive Edge
Companies
SMP Anatel Standards # 2, 3, 5, 6, 7 and 12
(All Indicators)
Source: ANATEL (March/2006)
24

25.
Anatel Standards
Reduction in Non-Compliance
15.0%
14.0%
12.1%
9.3%
3.8%
Mar-05 Jun-05 Sep-05 Dec-05 Mar-06
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26.
VIVO Social Responsibility
Museu da Língua Portuguesa - Estação da Luz - Dedicated to all
languages that have influence on the Portuguese language spoken in Brazil. A
project sponsored by Vivo Institute since 2002;
Second “Caravana do Esporte”, a project sponsored by Vivo
Institute. 18 less developed cities will be visited;
ACTIONS Inaugurated the “centro esportivo da comunidade Novo Glicério”
an NGO Glicerio initiative sponsored by Instituto Vivo;
Inaugurated a “Brinquedoteca” (space with toys for kids to spend
leisure time) at the pediatrics section of the Santa casa do Pará,
sponsored by the Instituto Vivo.
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27.
Final Remarks
Focus on Value Clients Coverage
100% Digital
Contract base growth; 100% Digital;
Increase in Corporate client base; EV-DO in 18 Municipalities;
1xRTT in more than 79% of the Municipalities;
More than 12 models of ZAP and PDA’s.
EV-DO – 3G speed of up to 2,4 Mb/sec.
Corporate Restructuring System Platforms
Stronger Structure; Reduction of PDD in the quarter;
Advantage of Synergies; Compliance to Anatel Standards;
Simplicity; Authentication networks and handsets in
progress .
Integrated Platforms.
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28.
Safe Harbor Clause
Forward Looking Statements
• This presentation contains statements that constitute forward looking
statements in its general meaning and within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements appear in a number
of places in this document and include statements regarding the intent, belief
or current expectations of the customer base, estimates regarding future
growth in the different business lines, market share, financial results and other
aspects of the activity and situation relating to the Company. The forward
looking statements in this document can be identified, in some instances, by
the use of words such as "expects", "anticipates", "intends", "believes", and
similar language or the negative thereof or by forward-looking nature of
discussions of strategy, plans or intentions. Such forward-looking statements
are not guarantees of future performance and involve risks and uncertainties
and actual results may differ materially from those in the forward looking
statements as a result of various factors.
•Analysts and investors are cautioned not to place undue reliance on those
forward looking statements which speak only as of the date of this
presentation.
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