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]

muda tudo. OIBR B3 LISTED N1 EARNINGS PRESENTATION simples. poder. fazer. Investor Relations | May 05, 2022 DISCLAIMER 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, cost savings, future costs and future liquidity are considered forward-looking statements. Words such as "will", "should", "would", "shall", "a ...

[Company Overview and Judicial Reorganization](index=3&type=section&id=Company%20Overview%20and%20Judicial%20Reorganization) [Company Data and Capital Breakdown](index=3&type=section&id=Company%20Data%20and%20Capital%20Breakdown) As of September 30, 2021, Oi S.A.'s capital structure consisted of approximately **5.95 billion** total shares, comprising **5.80 billion** common shares and **157.7 million** preferred shares, with about **1.84 million** shares held in treasury Capital Breakdown as of 09/30/2021 | Share Type | Paid-in Capital (thousands) | In Treasury (thousands) | | :--- | :--- | :--- | | Common shares | 5,796,478 | 30 | | Preferred shares | 157,727 | 1,812 | | **Total** | **5,954,205** | **1,842** | [Judicial Reorganization and Strategic Plan](index=28&type=section&id=Judicial%20Reorganization%20and%20Strategic%20Plan) Oi S.A. operates under a Judicial Reorganization Plan (JRP) initiated in 2016, with a 2020 amendment providing financial flexibility through asset sales and a strategic focus on fiber optics and digital solutions, with court supervision extended to March 31, 2022 - The company filed for judicial reorganization on June 20, 2016, with the plan approved and ratified in late 2017 and early 2018[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) - An amendment to the JRP was approved at a New General Creditors' Meeting on September 8, 2020, and ratified by the court on October 5, 2020, crucial for implementing the company's strategic transformation[52](index=52&type=chunk)[57](index=57&type=chunk) - The company's strategic plan focuses on expanding its fiber optics infrastructure, enabling high-speed connections for residential and business customers and supporting 5G technology[58](index=58&type=chunk)[59](index=59&type=chunk) - Court supervision of the Judicial Reorganization Proceeding was extended until March 31, 2022, to allow for the completion of asset sales (UPIs) as stipulated in the amended plan[60](index=60&type=chunk)[61](index=61&type=chunk) [Amendment to the JRP: Creditor Payments and Financing](index=33&type=section&id=Amendment%20to%20the%20JRP%3A%20Creditor%20Payments%20and%20Financing) The JRP amendment outlines specific payment mechanisms for various creditor classes, including prepayments funded by asset sales, and introduces new financing instruments like **BRL 2.5 billion** InfraCo Debentures and a **USD 880 million** Senior Notes issue to support operations and investments - The amended plan details payment proposals for labor, collateralized, regulatory, and unsecured creditors, including options for straight-line payments and prepayments funded by liquidity events like asset sales[64](index=64&type=chunk)[65](index=65&type=chunk)[72](index=72&type=chunk) - Regulatory claims with ANATEL are being settled under Law 13988, allowing for payment in **84 installments** with a **50% discount** on the principal[67](index=67&type=chunk) - New financing was secured through the issuance of **BRL 2.5 billion** in InfraCo Debentures to fund fiber network expansion and a **USD 880 million** Senior Notes issue by Oi Móvel for operational financing until its asset sale is complete[79](index=79&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) [Sale of UPIs and Corporate Restructuring](index=38&type=section&id=Sale%20of%20UPIs%20and%20Corporate%20Restructuring) As part of its restructuring, Oi agreed to sell a controlling stake (**57.9%**) in UPI InfraCo to Globenet for approximately **BRL 12.9 billion**, a transaction approved by CADE and pending ANATEL's consent, while also completing the upstream merger of Telemar, absorbing **BRL 6.16 billion** in net assets - Oi agreed to sell a controlling stake in UPI InfraCo to Globenet for **BRL 12.92 billion**, with Oi retaining the remaining **42.1%** of the capital stock[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - The partial sale of UPI InfraCo received final and unappealable approval from the Brazilian antitrust authority (CADE) in November 2021, with ANATEL's consent still pending[93](index=93&type=chunk)[94](index=94&type=chunk) Summary of Net Assets from Telemar Merger (May 3, 2021) | Item | Amount (BRL thousands) | | :--- | :--- | | Total Assets Acquired | 29,935,202 | | Total Liabilities Assumed | (23,773,185) | | **Merged Net Assets** | **6,162,017** | [Individual Financial Statements](index=4&type=section&id=Individual%20Financial%20Statements) [Individual Balance Sheets](index=4&type=section&id=Individual%20Balance%20Sheets) As of September 30, 2021, individual total assets increased to **BRL 55.3 billion** from **BRL 38.5 billion** at year-end 2020, driven by held-for-sale assets and property, plant, and equipment, while total liabilities rose to **BRL 54.3 billion** from **BRL 30.8 billion**, and shareholders' equity decreased to **BRL 1.06 billion** from **BRL 7.75 billion** Individual Balance Sheet Highlights (BRL thousands) | Account | 09/30/2021 | 12/31/2020 | | :--- | :--- | :--- | | **Total Assets** | **55,329,866** | **38,525,202** | | Current Assets | 15,332,497 | 6,017,124 | | Non-current Assets | 39,997,369 | 32,508,078 | | **Total Liabilities** | **54,268,057** | **30,773,710** | | Current Liabilities | 6,704,680 | 3,044,306 | | Non-current Liabilities | 47,563,377 | 27,729,404 | | **Shareholders' Equity** | **1,061,809** | **7,751,492** | - Held-for-sale assets increased dramatically from **BRL 100.6 million** to **BRL 4.84 billion**, reflecting the company's ongoing divestment plan[4](index=4&type=chunk) - Non-current borrowings and financing nearly doubled, increasing from **BRL 12.9 billion** to **BRL 22.1 billion**[6](index=6&type=chunk) [Individual Statements of Profit or Loss](index=8&type=section&id=Individual%20Statements%20of%20Profit%20or%20Loss) For the nine months ended September 30, 2021, the company reported a net loss of **BRL 6.71 billion**, a significant improvement from the **BRL 12.33 billion** net loss in the prior-year period, with net operating revenue growing to **BRL 4.72 billion** from **BRL 2.52 billion**, and basic and diluted EPS at a loss of **BRL 1.13** Individual Profit or Loss Summary (YTD - BRL thousands) | Line Item | YTD 09/30/2021 | YTD 09/30/2020 | | :--- | :--- | :--- | | Net operating revenue | 4,724,165 | 2,521,231 | | Gross profit | 716,443 | 506,252 | | Profit (loss) before financial income (expenses) | (4,157,235) | (8,870,455) | | **Profit/loss for the period** | **(6,711,199)** | **(12,327,833)** | Individual Earnings Per Share (YTD - BRL per share) | Share Type | YTD 09/30/2021 | YTD 09/30/2020 | | :--- | :--- | :--- | | Common shares (ON) | (1.13) | (2.07) | | Preferred shares (PN) | (1.13) | (2.07) | [Individual Statements of Cash Flows](index=10&type=section&id=Individual%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2021, net cash used in operating activities was **BRL 110.0 million**, a substantial improvement, while net cash used in investing activities was **BRL 1.48 billion**, a reversal from the prior year, and financing activities provided **BRL 430.3 million**, resulting in a **BRL 1.17 billion** decrease in cash and cash equivalents Individual Cash Flow Summary (YTD - BRL thousands) | Activity | YTD 09/30/2021 | YTD 09/30/2020 | | :--- | :--- | :--- | | Net cash from operating activities | (109,964) | (717,588) | | Net cash from investing activities | (1,484,374) | 2,328,865 | | Net cash from financing activities | 430,304 | (246,930) | | **Increase (decrease) in cash** | **(1,167,380)** | **1,550,046** | - The significant positive cash flow from investing activities in 2020 was primarily due to **BRL 3.66 billion** received from a capital reduction in subsidiary PT Participações, which did not recur in 2021[10](index=10&type=chunk) - Financing activities in 2021 were positively impacted by **BRL 725.1 million** in cash acquired through a merger, offsetting lease and tax refinancing payments[11](index=11&type=chunk) [Consolidated Financial Statements](index=15&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=15&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2021, consolidated total assets slightly increased to **BRL 75.5 billion** from **BRL 73.8 billion** at year-end 2020, with **BRL 34.4 billion** classified as held-for-sale, while total liabilities rose to **BRL 74.4 billion** from **BRL 66.1 billion**, and shareholders' equity sharply decreased to **BRL 1.08 billion** from **BRL 7.77 billion** Consolidated Balance Sheet Highlights (BRL thousands) | Account | 09/30/2021 | 12/31/2020 | | :--- | :--- | :--- | | **Total Assets** | **75,529,348** | **73,839,787** | | Held-for-sale assets | 34,413,026 | 20,771,942 | | Property, plant and equipment | 16,508,439 | 24,135,058 | | **Total Liabilities** | **74,450,232** | **66,069,877** | | Borrowings and financing | 31,339,944 | 26,343,734 | | **Shareholders' Equity** | **1,079,116** | **7,769,910** | - The reclassification of assets to 'held-for-sale' increased by **BRL 13.6 billion**, reflecting the progress of the company's divestment plan for its mobile, infrastructure, and TV units[15](index=15&type=chunk) - Total borrowings and financing increased by **BRL 5.0 billion**, primarily in non-current foreign currency debt[17](index=17&type=chunk) [Consolidated Statements of Profit or Loss](index=19&type=section&id=Consolidated%20Statements%20of%20Profit%20or%20Loss) For the nine months ended September 30, 2021, the consolidated net loss was **BRL 6.71 billion**, an improvement from the **BRL 12.33 billion** loss in the prior-year period, despite a slight decrease in net operating revenue to **BRL 6.72 billion** from **BRL 7.03 billion**, with a **BRL 536 million** profit from discontinued operations offsetting a **BRL 7.25 billion** loss from continuing operations Consolidated Profit or Loss Summary (YTD - BRL thousands) | Line Item | YTD 09/30/2021 | YTD 09/30/2020 | | :--- | :--- | :--- | | Net operating revenue | 6,716,892 | 7,027,560 | | Gross profit | 1,479,360 | 2,018,457 | | Profit (loss) from continuing operations | (7,249,923) | (11,851,652) | | Profit (loss) from discontinued operations | 536,096 | (475,076) | | **Consolidated profit/loss for the period** | **(6,713,827)** | **(12,326,728)** | Consolidated Earnings Per Share (YTD - BRL per share) | Share Type | YTD 09/30/2021 | YTD 09/30/2020 | | :--- | :--- | :--- | | Common shares (ON) | (1.13) | (2.07) | | Preferred shares (PN) | (1.13) | (2.07) | [Consolidated Statements of Cash Flows](index=22&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2021, net cash used in operating activities was **BRL 1.63 billion**, a significant shift from the **BRL 3.54 billion** generated in the prior year, while net cash used in investing activities increased to **BRL 3.58 billion**, and financing activities provided a substantial **BRL 4.16 billion**, resulting in a **BRL 1.09 billion** decrease in cash and cash equivalents Consolidated Cash Flow Summary (YTD - BRL thousands) | Activity | YTD 09/30/2021 | YTD 09/30/2020 | | :--- | :--- | :--- | | Net cash from operating activities | (1,631,817) | 3,539,622 | | Net cash from investing activities | (3,576,281) | (1,548,142) | | Net cash from financing activities | 4,163,879 | 1,184,677 | | **Increase (decrease) in cash** | **(1,087,757)** | **3,381,165** | - Financing activities were driven by **BRL 6.41 billion** in new borrowings, net of costs, which was partially offset by **BRL 3.51 billion** in repayments[23](index=23&type=chunk) - Investing activities included **BRL 2.30 billion** for purchases of tangible and intangible assets and **BRL 2.49 billion** in cash flows used by discontinued operations[22](index=22&type=chunk)[23](index=23&type=chunk) [Notes to the Financial Statements](index=41&type=section&id=Notes%20to%20the%20Financial%20Statements) [Note 3. Financial Instruments and Risk Analysis](index=46&type=section&id=Note%203.%20Financial%20Instruments%20and%20Risk%20Analysis) The company faces market (foreign exchange, interest rate), credit, and liquidity risks, with **61.4%** of its debt in foreign currency, mitigated by natural hedges and derivatives, while floating-rate debt exposes it to interest rate fluctuations, and liquidity is managed through continuous monitoring and new financing like the **BRL 2.5 billion** InfraCo debentures and **USD 880 million** Senior Bond - The company's borrowings and financing exposed to foreign exchange risk represent approximately **61.4%** of the total[136](index=136&type=chunk) - A sensitivity analysis shows that a **25% depreciation** of the Brazilian real would result in a consolidated loss of **BRL 4.4 billion** from foreign exchange exposure, after considering hedges[146](index=146&type=chunk) - Approximately **32.3%** of the company's debt is subject to floating interest rates, with the most material exposure being to the CDI rate[150](index=150&type=chunk) - Liquidity was strengthened in 2021 with the issuance of **BRL 2.5 billion** in InfraCo debentures and a **USD 880 million** Senior Bond by Oi Móvel to fund CAPEX and operations[161](index=161&type=chunk)[162](index=162&type=chunk) [Note 19. Borrowings and Financing](index=82&type=section&id=Note%2019.%20Borrowings%20and%20Financing) As of September 30, 2021, total consolidated borrowings and financing reached **BRL 31.3 billion**, up from **BRL 26.3 billion** at year-end 2020, comprising Senior Notes (**BRL 14.1 billion**), debentures, and financial institution loans, with a significant portion in foreign currencies, and BNDES financing covenants temporarily suspended Consolidated Borrowings and Financing by Type (BRL thousands) | Type | 09/30/2021 | 12/31/2020 | | :--- | :--- | :--- | | Senior Notes | 14,060,359 | 9,000,226 | | Debentures (Public & Private) | 9,482,604 | 10,851,658 | | Financial Institutions & Other | 22,576,047 | 21,666,937 | | **Subtotal** | **46,119,010** | **41,518,821** | | Less: Debt Discount & Costs | (14,779,066) | (15,175,087) | | **Total** | **31,339,944** | **26,343,734** | - In July 2021, Oi Móvel issued **USD 880 million** in Senior Notes due 2026 and **BRL 2.0 billion** in debentures due 2022 to strengthen cash and repay existing debt[243](index=243&type=chunk)[244](index=244&type=chunk) - Financial ratio covenants in the BNDES financing agreement are temporarily stayed until at least the financial settlement of the UPI Mobile Assets sale or May 30, 2022, whichever comes first[251](index=251&type=chunk) [Note 24. Provisions and Contingent Liabilities](index=89&type=section&id=Note%2024.%20Provisions%20and%20Contingent%20Liabilities) As of September 30, 2021, the company held consolidated provisions totaling **BRL 5.33 billion** for labor, tax, and civil claims, with civil claims (including ANATEL) being the largest at **BRL 2.80 billion**, and also identified **BRL 31.3 billion** in contingent liabilities with a possible unfavorable outcome, primarily tax-related (**BRL 28.6 billion**) Consolidated Provisions by Type (BRL thousands) | Type | 09/30/2021 | 12/31/2020 | | :--- | :--- | :--- | | Labor | 1,413,052 | 1,796,620 | | Tax | 1,114,031 | 1,225,417 | | Civil | 2,800,165 | 2,788,426 | | **Total Provisions** | **5,327,248** | **5,810,463** | Consolidated Contingent Liabilities (Possible Loss) (BRL thousands) | Type | 09/30/2021 | 12/31/2020 | | :--- | :--- | :--- | | Labor | 223,646 | 299,178 | | Tax | 28,643,988 | 28,419,340 | | Civil | 2,439,513 | 2,464,987 | | **Total Contingencies** | **31,307,147** | **31,183,505** | [Note 30. Held-for-Sale Assets and Discontinued Operations](index=109&type=section&id=Note%2030.%20Held-for-Sale%20Assets%20and%20Discontinued%20Operations) The company classified its UPI Mobile Assets, UPI InfraCo, UPI TVCo, and international operations as held-for-sale, totaling **BRL 34.4 billion** in assets and **BRL 13.9 billion** in associated liabilities as of September 30, 2021, with these discontinued operations generating a **BRL 536.1 million** profit for the first nine months of 2021, a significant turnaround from a **BRL 475.1 million** loss in the prior-year period Consolidated Held-for-Sale Assets and Liabilities (BRL thousands) | Category | 09/30/2021 | 12/31/2020 | | :--- | :--- | :--- | | Assets from Sale of UPIs | 34,277,735 | 20,625,007 | | Assets from International Operations | 83,106 | 99,633 | | **Total Held-for-Sale Assets** | **34,413,026** | **20,771,942** | | Liabilities from Sale of UPIs | 13,907,712 | 9,152,947 | | Liabilities from International Operations | 30,091 | 42,429 | | **Total Associated Liabilities** | **13,937,803** | **9,195,376** | Profit (Loss) from Discontinued Operations (YTD - BRL thousands) | Line Item | YTD 09/30/2021 | YTD 09/30/2020 | | :--- | :--- | :--- | | Pretax profit (loss) | 1,425,697 | (474,401) | | Income tax and social contribution | (889,601) | (675) | | **Profit (loss) for the period** | **536,096** | **(475,076)** | [Note 31. Other Information](index=117&type=section&id=Note%2031.%20Other%20Information) The company is cooperating with an investigation related to "Operation: Mapa da Mina," though an internal review found no illegalities, and maintained operational continuity during COVID-19 with remote work and safety protocols, while also detailing the complex corporate restructuring to form UPI InfraCo through capital increases and partial spin-offs - An independent internal investigation related to "Operation: Mapa da Mina" did not identify any indications of illegalities committed by the company[337](index=337&type=chunk) - The company maintained operational continuity during the COVID-19 pandemic by implementing remote work for **~71%** of its workforce and safety protocols for essential field technicians, with no material deviations in operations or results recorded[339](index=339&type=chunk)[340](index=340&type=chunk)[344](index=344&type=chunk) - The formation of UPI InfraCo involved a series of complex corporate restructuring steps, including multiple capital increases and partial spin-offs of the subsidiary BrT Multimídia throughout 2020 and 2021[345](index=345&type=chunk)[346](index=346&type=chunk)[351](index=351&type=chunk)

Oi S.A. (OTC:OIBRQ) Q3 2021 Earnings Conference Call November 11, 2021 10:00 AM ET Company Participants Rodrigo Abreu – Chief Executive Officer Marcelo Ferreira – Director-Investor Relations Conference Call Participants Victor Ricciuti – UBS Carlos Eduardo – BTG Pactual Operator Good afternoon, ladies and gentlemen, and thanks for waiting. Welcome to OiÂ's video conference to discuss 2021 Third Quarter Results. The event to take place in English with simultaneous translation into Portuguese. Please be infor ...

Oi S.A. – under Judicial Reorganization and Subsidiaries Financial Statements for the Quarters Ended June 30, 2021 Interim Financial Information (ITR) - June 30, 2021 - OI S.A. – under Judicial Reorganization Version: 1 Contents | Company Data | | | --- | --- | | Capital Breakdown | 1 | | Individual Financial Statements | | | Balance Sheets, Assets | 2 | | Balance Sheets, Liabilities and Equity | 4 | | Statements of Profit or Loss | 6 | | Statements of Comprehensive Income | 7 | | Statements of Cash Flows | ...