Core Points - Telefônica Brasil S.A. filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission on February 27, 2025 [1] - The 2024 Annual Report is accessible on both the SEC's website and the Company's website [1] - Shareholders can request a hard copy of the complete audited financial statements free of charge [1]

Financial Performance - Net cash provided by operations was R$19.9 billion in 2024, compared to R$18.8 billion in 2023 and R$18.9 billion in 2022 [702]. - The company distributed dividends and interest on shareholders' equity of R$3.1 billion in 2024, down from R$3.4 billion in 2023 and R$5.1 billion in 2022 [701]. - Total long-term debt, including loans, financing, leases, and debentures, is R$12,728.5 million as of December 31, 2024 [693]. - Total contractual obligations as of December 31, 2024, amount to R$21,573.3 million, with R$6,480.0 million due in less than 1 year [690]. Capital Expenditures and Investments - Capital expenditures for the year ended December 31, 2024, totaled R$9.2 billion, primarily for network expansion [698]. - Investments in research and development for 2024 were R$25.8 million, a decrease from R$57.9 million in 2023 [713]. - The company expects to meet 2025 capital requirements primarily from cash generated from operations [702]. Brand and Market Position - The "Vivo" brand was valued at R$3 billion in 2024, ranking tenth among the most valuable brands in Brazil [716]. Strategic Focus and Innovation - The company is focusing on expanding its product offerings in health care, fintech, and connected home services [712]. - Vivo plans to invest in digital services and innovative value propositions across various sectors, including education, healthcare, and smart homes, to enhance customer relationships and increase revenue per user [720]. - In the B2B segment, digitization efforts are prioritized, driving demand for connectivity services and creating opportunities in Cloud, Cybersecurity, IoT, and Big Data, with Vivo launching the Open Gateway initiative [721]. - Customer experience differentiation will be enhanced through generative AI, with Vivo committed to providing engaging experiences via the Vivo App [722]. - Vivo aims to become a Net Zero company by 2035, five years ahead of schedule, aligning with the United Nations' Sustainable Development Goals and fostering innovation in a diverse environment [724]. - The company's strategic pillars focus on Growth, Profitability, and Sustainability, guided by Telefonica Group's key drivers to advance digitalization [725]. Market Trends - The demand for ultra-broadband connectivity is expected to increase, particularly driven by fiber in small cities, amidst a more mature fiber market leading to increased competitiveness and potential consolidation [718]. - Brazil's main operators have launched 5G in all state capitals and major cities, achieving 5G coverage for half of Brazil's population, with Vivo focusing on expanding its 5G coverage and ensuring 4G and 4.5G availability [719]. Accounting Estimates - Critical accounting estimates are reviewed annually, impacting the financial statements based on management's judgment and expectations of future events [726]. - Significant estimates and judgments in financial statement preparation include trade accounts receivable, income taxes, and intangible assets [727].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of February, 2025 Commission File Number: 001-14475 TELEFÔNICA BRASIL S.A. (Exact name of registrant as specified in its charter) TELEFONICA BRAZIL S.A. (Translation of registrant's name into English) Av. Eng° Luís Carlos Berrini, 1376 - 28º andar São Paulo, S.P. Federative Republic of Brazil (Address of pr ...

Telefônica Brasil S.A. (NYSE:VIV) Q4 2024 Earnings Conference Call February 26, 2025 9:00 AM ET Company Participants Joao Pedro Soares Carneiro - Director, Investor Relations Christian Gebara - Chief Executive Officer David Melcon - Chief Financial Officer & Investor Relations Officer Conference Call Participants Leonardo Olmos - UBS Camila Koga - Bradesco BBI Bernardo Guttmann - XP Felipe Cheng - Santander Marcelo Santos - JPMorgan Vitor Tomita - Goldman Sachs Lucca Brendim - Bank of America Phani Kanumur ...

Core Viewpoint - Telefônica Brasil reported strong operating performance in Q4 2024, leading to significant growth in net income and free cash flow generation [2][3][4]. Financial Performance - Net Operating Revenue reached R$14,581 million in Q4 2024, a 7.7% increase from R$13,535 million in Q4 2023 [2]. - Net Income for 2024 was R$5,548 million, reflecting a 10.3% year-over-year growth [6]. - Earnings per Share (EPS) increased to R$3.38, up 11.3% from R$3.03 in 2023 [2]. Revenue Breakdown - Mobile Services revenue grew by 7.0% YoY to R$9,201 million, driven by a 9.1% increase in postpaid revenue [2][3]. - Fixed revenue increased by 8.0% YoY, with FTTH revenue rising by 12.4% and Corporate Data, ICT, and Digital Services by 21.1% [4]. - Total Subscribers reached 116,050 thousand, a 2.7% increase from the previous year [2]. Cost and Profitability - Total Costs amounted to R$8,383 million, a 7.7% increase YoY [2]. - EBITDA for Q4 2024 was R$6,199 million, with a margin of 42.5%, unchanged from Q4 2023 [2][4]. - Free Cash Flow surged by 82.4% YoY to R$1,080 million [2]. Capital Expenditure and Investments - CAPEX for 2024 totaled R$9,166 million, a 2.3% increase YoY, representing 16.4% of revenues [5]. - Investments focused on enhancing the 5G network, which now covers 61.3% of the Brazilian population [5]. Shareholder Remuneration - The company distributed R$5,845 million to shareholders in 2024, a 22.1% increase from R$4,786 million in 2023, achieving a payout ratio of 105.3% [6][7]. - Telefônica Brasil commits to distributing at least 100% of net income for the fiscal years 2025 and 2026 [7].

Core Insights - Telefônica Brasil, also known as Vivo, is recognized as a strong dividend payer, which is central to the company's investment thesis [1]. Company Overview - The company operates under the ticker symbol VIV on the NYSE and is considered a cash cow in terms of dividend payments [1]. Research Background - The analysis is conducted by a researcher and operations manager at DM Martins Research, with previous contributions to TheStreet and current writings for platforms like TipRanks and GuruFocus [1].

Group 1 - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, helping investors identify securities with high potential for market outperformance [2][3] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Sales, appealing to value investors [3] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings and cash flow [4] - The Momentum Score assists traders in capitalizing on price trends, utilizing factors like recent price changes and earnings estimate shifts [5] Group 3 - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and positive momentum, serving as a useful indicator alongside the Zacks Rank [6] - The Zacks Rank, a proprietary stock-rating model, uses earnings estimate revisions to simplify portfolio building for investors [7][10] Group 4 - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - To optimize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while being cautious with 3 ranked stocks [9][10] Group 5 - Telefonica Brasil S.A., the largest telecom operator in Brazil, holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating potential for value investors [11] - The company has seen an upward revision in earnings estimates for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.02 to $0.63 per share, and an average earnings surprise of 10% [12]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [3][4][5][6][7] Value Score - The Value Style Score focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [5] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings outlook changes, indicating optimal times to invest in high-momentum stocks [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and promising momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, outperforming the S&P 500 [8][9] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [11][12][13] Company Spotlight: Telefonica Brasil - Telefonica Brasil S.A., the largest telecom operator in Brazil by revenue, holds a Zacks Rank of 3 (Hold) and a VGM Score of A, with a Value Style Score of A due to a forward P/E ratio of 12.83 [14][15] - Recent upward revisions in earnings estimates for fiscal 2024 indicate a consensus estimate increase of $0.02 to $0.63 per share, with an average earnings surprise of 10% [15][16]

Financial Data and Key Metrics Changes - Total revenues increased by 7.1% year-over-year, primarily driven by mobile service revenues which grew by 8.8% [7][8] - EBITDA grew by 7.4% year-over-year, with an EBITDA margin of 42.4% [20][22] - Year-to-date net income reached a 10.4% year-over-year increase, totaling BRL6.8 billion [22][23] - Free cash flow generation reached BRL7.1 billion, resulting in a free cash flow yield of 8.4% over the last 12 months [22][23] Business Line Data and Key Metrics Changes - Postpaid customer base increased by 7.6%, with postpaid revenues growing by 10.4% [7][9] - Fiber homes connected with FTTH grew by 12.5%, reaching 6.7 million users [11][12] - B2C segment represented 77% of total revenues, growing by 7.5% year-over-year, while B2B segment grew by 6.5% [13][15] Market Data and Key Metrics Changes - Vivo's market share in 5G access increased to nearly 40%, with 13.8 million 5G users [10] - The company reached 28.3 million homes passed with FTTH, achieving 98% of its goal for the year [11] - The average monthly revenue per B2C customer was BRL61.5, reflecting a strong customer-centric approach [14] Company Strategy and Development Direction - The company aims to maintain its leadership position through a diversified portfolio of services and a focus on digital transformation [6][8] - Vivo Total, a convergent offer, is expected to reduce churn and enhance customer loyalty [12] - The company is committed to optimizing CapEx while continuing to grow revenues, particularly in digital services which now represent 10% of total revenues [21][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining revenue growth above inflation, driven by upselling and migration strategies [30][53] - The competitive landscape is acknowledged, with new entrants being viewed as additional competition rather than a threat [26] - Future CapEx will focus on increasing penetration in new areas while maintaining a strong cash position [40][41] Other Important Information - The company has engaged 87% of its suppliers in climate-related activities as part of its ESG initiatives [16] - Vivo was recognized as one of the top three best companies to work for in Brazil, highlighting its commitment to employee engagement and diversity [17] Q&A Session Summary Question: Competitive environment and pricing strategies - Management acknowledged the entry of new competitors but emphasized their strong market position and ability to offer differentiated services [26] Question: Lease expenses growth - Management explained that lease expenses showed volatility due to negotiations with tower companies, but overall cash flow remains strong [27] Question: Sustainability of mobile service revenue growth - Management confirmed that the growth in mobile service revenue is sustainable, driven by successful migration strategies and upselling [30] Question: CapEx outlook and EBITDA margin sustainability - Management indicated a focus on reducing capital intensity while maintaining strong EBITDA margins through operational efficiencies [33][34] Question: Migration from concession to authorization - Management provided an update on regulatory approvals and expressed confidence in optimizing costs post-migration [37] Question: B2B growth ambitions - Management highlighted significant growth potential in B2B digital services, with only 15% of B2B customers currently utilizing these services [44] Question: Prepaid segment dynamics - Management noted rational strategies in the prepaid segment, focusing on upselling and value-added services to enhance revenue [50]

Telefónica ***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC by TELEFÓNICA. RESULTS 3Q24 November 5 th, 2024 Telefônica Brasil S.A. Investor Relations VI > DISIN SE VIVT B3 LISTED ISEB3 ICO2B3 | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...