3Q23 earnings presentation OTFIBR Is a game change ask our disclaimer | --- | --- | |------------------------------|-------| | | | | | | | | | | | | | This presentation only | | | | | | includes information for the | | | | | | Brazilian operations. | | | | | This presentation contains forward-looking statements as defined in applicable Brazilian regulations. Statements that are not historical facts, including statements regarding the beliefs and expectations of Oi, business strategies, future synergies, cos ...

Oi S.A. (OTC:OIBZQ) Q3 2023 Earnings Conference Call November 9, 2023 9:00 AM ET Company Participants Rodrigo Abreu - CEO Cristiane Barretto - CFO Luis Plaster - IR Director Conference Call Participants Leonardo Olmos - UBS Operator Good morning, ladies and gentlemen, and thank you for joining Oi S.A.'s Conference Call for the Third Quarter of 2023. The event will be held in English with simultaneous translation into Portuguese. Please be informed that this conference is being recorded and it will be availa ...

Oi S.A. (OTC:OIBZQ) Q2 2023 Earnings Call Transcript August 11, 2023 10:00 AM ET Company Participants Rodrigo Abreu - Chief Executive Officer Cristiane Barretto - Chief Financial Officer Luis Plaster - Investor Relations Director Conference Call Participants Operator Good morning, ladies and gentlemen, and thank you for joining Oi S.A.'s Conference Call for the Second Quarter of 2023. The event will be held in English with simultaneous translation into Portuguese. Please be informed that this video conferen ...

Oi S.A. (OTC:OIBZQ) Q1 2023 Earnings Conference Call June 15, 2023 10:00 AM ET Company Participants Rodrigo Abreu - Chief Executive Officer Cristiane Barretto - Chief Financial Officer Luis Plaster - Investor Relations Director Conference Call Participants Lucas Chaves - UBS BB Operator Good morning, ladies and gentlemen, and thank you for joining Oi S.A.'s Conference Call for the First Quarter of 2023. The event will be held in English with simultaneous translation into Portuguese. Please be informed that ...

OIBR B3 LISTED N1 1Q23 earnings presentation disclaimer | --- | --- | |--------------------------------------------|--------------| | | | | | | | Operating results include | Mobile | | | | | until Mar-22 and V.tal | | | | until May22. | | | | | This presentation only includes | | | information for the Brazilian operations. | | This presentation contains forward-looking statements as defined in applicable Brazilian regulations. Statements that are not historical facts, including statements regarding the beli ...

Financial Data and Key Metrics Changes - The company reported a net loss of over R$17 billion in Q4 2022, primarily due to a major accounting adjustment related to the impairment of legacy assets, with no cash impact [7][8] - Total revenues grew by 5.6% year-over-year, with fiber revenues increasing by 25.5% and B2B revenues by 3.5% [13][14] - Operating expenses (OpEx) decreased by 25% year-over-year, while capital expenditures (CapEx) saw a significant reduction of 73% [15][31] Business Line Data and Key Metrics Changes - The New Oi's core operating metrics showed solid results, with fiber revenues representing 46% of total revenues and growing at 26% year-over-year [20][21] - Legacy operations continued to decline, with a 30% drop in revenues, but this was offset by strong growth in fiber and B2B segments [21][22] - The company achieved a reduction in recurring personnel costs by 16.2% year-over-year, following a significant headcount reduction [30] Market Data and Key Metrics Changes - Oi maintained a market share of approximately 31% in cities where Oi Fibra operates, despite a competitive environment [23] - The average revenue per user (ARPU) for fiber services increased by 6%, contributing to the profitability of Oi Fibra [24] Company Strategy and Development Direction - The company is focused on transitioning to a new operating model, emphasizing fiber and B2B businesses while winding down legacy costs [11][12] - Oi is engaged in negotiations with Anatel regarding the migration from a concession to an authorization model, which is critical for future operations [9][80] - The judicial recovery plan aims to reduce indebtedness and ensure liquidity while addressing legacy business challenges [45][90] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant challenges ahead, including debt reduction, resolving legacy issues, and improving operational efficiency [88][90] - The company expects to see improvements in cash flow and operational performance as it continues to implement its recovery plan [95] Other Important Information - The company received recognition for its fiber service quality, ranking as the best fiber connection in Brazil according to customer preference scores [27] - Oi is committed to ESG goals, achieving significant milestones in recycling and employee development [84][86] Q&A Session Summary Question: What are the drivers behind the evolution of CapEx and ONT costs? - The company highlighted three main drivers: technological evolution leading to lower ONT prices, increased use of refurbished equipment, and improved installation techniques [98][100][104] Question: What are the main concerns of individual shareholders? - The company addressed various concerns raised by individual shareholders, focusing on transparency and communication regarding financial performance and strategic direction [107][108]

Financial Data and Key Metrics Changes - The new Oi's revenues grew by 10% year-over-year, with core revenues representing 70% of total revenues [9][29] - Consolidated revenues reached R$ 2.7 billion, with a decline in legacy revenue of R$ 900 million, a decrease of 28% year-over-year [27] - A significant reduction in gross financial debt was achieved, with a 60% reduction since the start of judicial recovery and a 35% reduction since Q1 2022 [13] Business Line Data and Key Metrics Changes - Oi Fibra, the core component for future growth, now represents close to 43% of revenues, with FTTH accesses growing by 36% year-over-year and homes connected increasing by 21% year-over-year [15][16] - Oi Solutions, representing about 30% of revenues, grew by 40% year-over-year, with ICT sales accelerating by 55% year-over-year [17][39] - Legacy services account for 19% of revenues and are in decline, but the company is addressing challenges through regulatory engagement [21][22] Market Data and Key Metrics Changes - Oi has achieved a market share of over 60% in the broadband consumer market, leading in 11 states and being the second-largest in most others [36][37] - The fiber revenue reached over R$ 4 billion in annualized revenue, demonstrating sustained growth above 30% [31] Company Strategy and Development Direction - The company is transitioning to a new operational model focused on fiber and ICT services, aiming to streamline operations and reduce costs [5][7] - A proposed reverse stock split of 50:1 is intended to improve liquidity and align share prices with market practices [75][78] - Oi is investing in digital platforms and new revenue areas, including Oi Energy and Oi Place marketplace [42][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by legacy operations but expresses confidence in the growth potential of the new Oi [85][89] - The company expects EBITDA margins to improve significantly in the long term, targeting over 20% as legacy impacts are minimized [96][100] Other Important Information - The company is engaged in disputes regarding mobile sale price adjustments, with ongoing arbitration processes [62][66] - Oi has hired Moelis & Company to optimize its capital structure and assist in discussions with creditors [60] Q&A Session Summary Question: What should be expected for EBITDA margins going forward? - Management indicated that while there was a reduction in EBITDA margins due to the transition to a new model, they expect margins to improve to 14% in 2024 and over 20% in the long term [92][96] Question: Can you provide details on the mobile sale disputes? - Management highlighted that the buyers' claims included material errors and that Oi has strong grounds to dispute these claims, with intentions to resolve them amicably or through arbitration if necessary [93][102] Question: What is the outlook for legacy operating free cash flow losses? - Management noted that legacy cash flow losses could be higher than the estimated R$ 100 million due to fixed costs associated with legacy operations [108][114] Question: What is the expected CapEx for 2023? - Management confirmed that CapEx is expected to be around R$ 1.2 billion for 2023, with plans to reduce it further in the long term [109][115] Question: Where is V.tal being booked in the financials? - Management clarified that V.tal's financials are not consolidated but represent a significant value stake for the company [110]

OIBR B3 LISTED N1 3Q22 earnings presentation November 10, 2022 disclaimer | --- | --- | |-------|-----------------------------------------------| | | | | | | | | | | | Operating results include Mobile until Mar-22 | | | and V.tal until May-22. | | | | | | includes information for the | This presentation contains forward-looking statements as defined in applicable Brazilian regulations. Statements that are not historical facts, including statements regarding the beliefs and expectations of Oi, business strat ...

Financial Data and Key Metrics Changes - The company reported a significant reduction in net debt, reaching R$ 16 billion, representing a 60% decrease in gross financial debt since the beginning of judicial reorganization [59][60]. - Routine operating expenses (OpEx) decreased by over 23% year-over-year, with a real gain of about 35% after adjusting for inflation [50][53]. - EBITDA margin for the quarter was approximately 14%, reflecting the transition to a new business model [15]. Business Line Data and Key Metrics Changes - Core revenues showed a slight increase of 1% year-over-year, with the new Oi core revenues growing over 32% [13][19]. - Fiber revenues grew almost 40% year-over-year, with a notable increase in net adds towards the end of the quarter [21][22]. - Oi Solucoes core revenues increased by 4.5% year-over-year, driven by strong ICT growth, which saw over 30% growth [34][35]. Market Data and Key Metrics Changes - The company's market share in FTTH increased from 30% in Q2 last year to 34% in Q2 this year [26]. - Average Revenue Per User (ARPU) reached close to R$ 90, supported by upselling broadband speeds [24]. - The competitive environment for fiber services remains challenging, but the company is gaining market share in areas where it operates [25]. Company Strategy and Development Direction - The company is focused on executing its transformation plan, with a strong emphasis on core business operations and reducing legacy costs [4][5]. - There is an ongoing strategy to extract value from all possible assets, including the divestment of DTH and the sale of fixed towers [41][42]. - The company aims to evolve into a customer-centric service provider, enhancing customer experience and operational efficiency [29][30]. Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of regulatory developments, particularly regarding migration and arbitration, which are critical for the sustainability of the legacy business [62][66]. - The company expects to see positive impacts from regulatory changes in the next 18 to 24 months [11][62]. - Management acknowledged the challenges posed by legacy operations but remains optimistic about the growth potential of the new Oi core [36][72]. Other Important Information - The company has completed significant asset sales, contributing approximately R$ 5 billion to cash flow during Q2 [55]. - The transition to a new business model is expected to stabilize in the coming quarters, with a focus on operational metrics [17][71]. - The company has launched several ESG initiatives, including environmental management systems and social programs aimed at improving workplace diversity [67][70]. Q&A Session Summary Question: Disclosure of R$ 388 million EBITDA and leaseback agreement details - Management confirmed that the disclosed EBITDA includes partial costs related to V.tal and that details on leaseback costs will be available after the competitive process concludes [80][81]. Question: Cash work from working capital and short-term EBITDA margins - Management explained that cash consumption was impacted by aligning payments post-M&A and indicated that guidance on margins will be provided during the upcoming Investor Day [87][88]. Question: Future acquisitions of small FTTH providers - Management acknowledged the potential for acquiring small FTTH providers but emphasized that organic growth remains the primary focus [92][93]. Question: Reflection of recent renegotiation numbers in the balance sheet - Management confirmed that the recent renegotiation numbers are included in the balance sheet [95].

Financial Data and Key Metrics Changes - The consolidated routine EBITDA totaled BRL1.2 billion in Q1 2022, representing an 18.1% reduction compared to Q4 2021 but an improvement of 8.1% year-over-year [33] - Routine OpEx increased by 4.4% over the last quarter but reduced by 3.2% year-over-year, indicating a real reduction of 18.5% when considering inflation [32][34] - The EBITDA margin increased by 2.2 percentage points year-over-year, primarily due to cost discipline [33] Business Line Data and Key Metrics Changes - The fiber business continued to grow, albeit with a slight deceleration as internal processes were adjusted for better customer acquisition management [14][15] - The B2B segment saw stable revenues, with ICT services growing at a double-digit rate of 24%, while core telecom revenues remained stable [22] - The fixed telephony business focused on sustainability, disconnecting 1,300 unsustainable central offices in the quarter [9] Market Data and Key Metrics Changes - Oi has covered more than 50% of Brazil's GDP and 42% of the population, leading in fiber access in 17 states with over 30% market share in areas served [17][18] - The residential business showed a slight revenue decline of 1.8% in Q1 2022, but there are expectations for a return to growth [80] Company Strategy and Development Direction - The company is focusing on a transformation plan that emphasizes fiber business and divestment of non-core assets, including the successful sale of V.tal [5][6] - Oi aims to enhance customer experience through digital transformation and improved analytics, targeting a more efficient operational model [11][12] - The company is also expanding its renewable energy investments, aiming for 80% of energy from renewable sources by the end of the year [46] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future growth trajectory post-V.tal transaction, expecting to accelerate fiber connection growth with reduced cash consumption [27][52] - The competitive environment in the FTTH market remains challenging, but management believes that recent changes will allow for more rational competition [76] Other Important Information - The company ended the quarter with a consolidated cash position of almost BRL2 billion, a reduction of 39% compared to Q4 2021 [40] - The company has made significant progress in its cost reduction program, achieving 94% of its annualized cost reduction target of BRL1 billion [38] Q&A Session Summary Question: Confirmation of Oi's final stake on EBITDA and expectations for net financial expenses - Management confirmed that the target EBITDA stake is 34.7% with no expected adjustments in the near term [56] - Net financial expenses for 2023 are expected to be around BRL1 billion annually, depending on debt prepayment and exchange rates [57] Question: Operational margins and profitability outlook - Management aims for EBITDA margins above 20% in the long run, with expectations of 15% to 20% during the ramp-up phase [60] Question: CapEx expectations and debt repayment - CapEx in Q1 is indicative of future quarters, with a focus on fiber rollout and reduced cash needs due to the new operational model [63] - Discussions regarding the repayment of banks and ECA debt are ongoing, with more information expected in the coming months [62] Question: Update on the sale of pay-TV operations and cash payments - The sale of TV assets to Sky is in final discussions, with expectations that cash inflow will offset satellite costs [67][75] Question: Impact of transitioning from concession to authorization on EBITDA margins - Transitioning is expected to improve EBITDA margins, with potential increases to the 20%-25% range [71] Question: Fiber business growth expectations and market conditions - Management anticipates a return to growth in the fiber business, with adjustments already leading to reduced churn and improved sales [80]