Telefônica Brasil S.A. (NYSE:VIV) Q3 2021 Earnings Conference Call October 28, 2021 9:00 AM ET Company Participants João Pedro Carneiro - IR Director Christian Gebara - Chief Executive Officer David Melcon - Chief Financial Officer and Investor Relations Officer Conference Call Participants Andre Salles - UBS Marcelo Santos - JPMorgan Freddie Mendes - Bank of America Carlos Sequeira - BTG Pactual Alejandro Gallostra - BBVA Operator Good morning, ladies and gentlemen. At this time, we would like to welcome e ...

Financial Performance - Telefônica Brasil S A 的净利润增长了 20 9%[4] - 经常性 EBITDA 在 2021 年第二季度达到 42 亿雷亚尔，同比增长 3 0%，EBITDA 利润率为 39 7%[6] - 核心收入同比增长 8 2%，占 Vivo 总业务的 89%[8] - 自由现金流在上半年总计 41 亿雷亚尔，自由现金流收益率为 12%[72] Revenue Growth - 总收入增长 3 2%，核心收入同比增长 8 2%，光纤收入同比增长 49 7%[6] - 移动服务收入同比增长 3 1%，其中后付费增长 2 2%，预付费增长 8 0%[6] - 核心业务收入同比增长 8 2%，其中 FTTx 增长 16 4%，数据和 ICT 增长 5 6%[10] Customer Base and Mobile Leadership - 移动用户总数为 9700 万，其中后付费用户为 4700 万[6] - 移动客户群同比增长 8 8%[23] - Vivo 继续巩固其在移动领域的领导地位，市场份额为 33 0%[20] Fiber Expansion - 光纤连接家庭数量达到 400 万户，同比增长 41 3%，第二季度净增 30 万户[6] - FTTH 收入增长 47 6%[32] - FiBrasil 计划到 2024 年覆盖约 550 万户家庭[40] Digital Initiatives - 数字渠道的加速使用正在支持收入增长和净增[53] - Meu Vivo 的用户数为 1900 万[52]

Telefônica Brasil S.A. (NYSE:VIV) Q2 2021 Earnings Conference Call July 28, 2021 9:00 AM ET Company Participants Christian Gebara – Chief Executive Officer David Melcon – Chief Financial Officer and Investor Relations Officer Luis Plaster – Investor Relations, Director Conference Call Participants Leonardo Olmos – UBS Vitor Tomita – Goldman Sachs Marcelo Santos – JPMorgan Fred Mendes – Bank of America Operator Good morning, ladies and gentlemen. At this time we would like to welcome everyone to the Telefoni ...

Financial Performance - Core revenues grew by 4.7% YoY, leading to total revenue growth of 0.2% in 1Q21[6, 10] - Recurring EBITDA reached R$4.5 billion in 1Q21, a 0.5% YoY increase[6] - Free Cash Flow after Leases was R$2.2 billion in 1Q21, up 3.7% YoY[6] - Shareholder remuneration declared YTD21 was R$700 million, resulting in a 7.9% dividend yield in LTM[6] - Net income was R$942 million in 1Q21[47] Customer Base and Revenue Streams - Mobile postpaid accesses reached 46 million, with 1.1 million net additions, the highest since 2017[6] - FTTH homes connected totaled 3.7 million, a 41% YoY increase, with a record of 368 thousand net additions[6] - FTTH revenues in 1Q21 were R$1.0 billion, a 61.2% YoY increase[6] - Core businesses represent almost 90% of revenues[8] Strategic Initiatives and Investments - Capex increased by 18.0% YoY, with 83% dedicated to growth and transformation, particularly in FTTH[44] - Vivo is expanding its digital ecosystem through partnerships and launching platforms like e-Health and Vivo Pay[35, 37] - FiBrasil, a neutral fiber network, aims to accelerate fiber deployment and expand to over 5 million FTTH homes passed in 4 years[34]

Telefônica Brasil S.A. (NYSE:VIV) Q1 2021 Earnings Conference Call May 12, 2021 9:00 AM ET Company Participants Luis Plaster - Investor Relations Director Christian Gebara - Chief Executive Officer David Melcon - Chief Financial Officer and Investor Relations Officer Conference Call Participants Marcelo Santos - JPMorgan Cristian Faria - Bradesco BBI Victor Gomez - Banco UBS Carlos Sequeira - BTG Pactual Operator Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to the Tele ...

R esul ts 4Q20 Telefônica Brasil S.A. Investor Relations F e b r u a r y 2 4 t h , 2 0 2 1 Telefonica vivo DISCLAIMER This presentation may contain forward-looking statements concerning future prospects and objectives regarding growth of the subscriber base, a breakdown of the various services to be offered and their respective results The exclusive purpose of such statements is to indicate how we intend to expand our business and they should therefore not be regarded as guarantees of future performance fi ...

Financial Performance - Capital expenditures totaled R$7.9 billion, R$8.8 billion, and R$8.2 billion for the years ended December 31, 2020, 2019, and 2018, respectively, primarily for network expansion [615]. - Net cash provided by operations was R$19.3 billion, R$17.7 billion, and R$11.9 billion in 2020, 2019, and 2018, respectively [619]. - The company proposed an additional dividend of R$1.5 billion for the fiscal year ended December 31, 2020, subject to shareholder approval [620]. - Total contractual obligations as of December 31, 2020, amounted to R$14.2 billion, including loans, financing, and leases [639]. - Long-term debt, including loans, financing, leases, and debentures, totaled R$9.6 billion as of December 31, 2020 [641]. Research and Development - R&D investments in development and innovation were R$27.4 million in 2020, down from R$50.3 million in 2019 and R$62.1 million in 2018 [628]. - The company aims to extend its 4.5G, 5G, and FTTH footprints to enhance its connectivity platform in Brazil [634]. Market Position - The company serves 95 million access points in fixed and mobile business, maintaining its leadership in the Brazilian telecommunications market [636]. - Brazil's macroeconomic outlook for 2021 is positive, with expectations for recovery from COVID-19 impacts and significant political and economic reforms [635]. Corporate Governance - Christian Mauad Gebara, the CEO, has held various leadership roles within the Telefónica Group since 2006, indicating extensive experience in the telecommunications sector [646]. - Eduardo Navarro de Carvalho, the Chairman, has been with Telefónica S.A. since February 2020, previously serving as CEO and in other strategic roles, showcasing a strong background in corporate governance [647]. - The Board of Executive Officers is responsible for day-to-day management and consists of 3 to 15 members, appointed for a term of three years, ensuring structured leadership [662]. - The company has a diverse board with members holding degrees in engineering, law, and public administration, reflecting a broad range of expertise [660]. - The company emphasizes sustainability and quality through dedicated committees, indicating a strategic focus on these areas in its operations [650]. - The board includes members with significant experience in international markets, enhancing the company's global strategic positioning [649]. - The company has a strong emphasis on education and innovation, with board members involved in various educational initiatives and institutions [660]. - There are no family relationships among the directors, ensuring an independent governance structure [661]. - The board's composition includes professionals with extensive experience in telecommunications, finance, and corporate strategy, which is critical for informed decision-making [655]. - The company has a commitment to corporate governance, with specific committees focused on nominations, compensation, and sustainability, indicating a structured approach to management [652]. - The board of directors typically meets quarterly and can call special meetings as needed, with decisions made by majority vote [668]. - The board is responsible for approving financial statements, management reports, and the distribution of interim dividends, among other duties [671]. - The Control and Audit Committee, established in December 2002, meets four times a year and oversees the company's financial statements and internal controls [679]. - The company’s Nominations, Compensation and Corporate Governance Committee consists of three to five directors and meets at least twice a year [684]. - The statutory Fiscal Board is required by Brazilian Corporate Law and consists of three to five active members, providing oversight on financial statements and management proposals [674]. - The company’s executive officers have extensive experience in the telecommunications industry, with the Chief Financial Officer having over 20 years of global experience [665]. - The company has a structured approach to corporate governance, including the establishment of various committees to oversee different aspects of operations [677]. - The board of directors has the authority to approve investments and obligations exceeding R$250 million that are not included in the budget [671]. - The company has a clear policy for the appointment and oversight of independent auditors, ensuring compliance and quality of services [682]. Employee Relations - As of December 31, 2020, the company had 32,759 employees, with 38.5% in production and operations, 35.8% in sales, 18.2% in customer care, and 7.2% in support [689]. - Approximately 13% of the company's employees are union members, represented by unions across all 26 states and the Federal District [693]. - The company has never experienced a work stoppage for a significant period that materially affected operations, indicating good workforce relations [694]. Shareholder Information - As of December 31, 2020, Telefónica S.A. owned 29.77% of the company's common shares, with effective control over 73.58% of outstanding shares [709]. - The company is transforming into a "Digital Telco," leveraging its strong mobile, fixed, and broadband networks to capture new revenue growth [711]. - The Performance Share Plan (PSP) allows executives to receive shares based on performance metrics, with a total duration of five years divided into three cycles [700]. - The Global Employee Share Plan (GESP) enables employees to invest in shares, with compensation stocks delivered based on their investment [705]. - As of December 31, 2020, there were 1,688,174,171 common shares outstanding, with 148,936,960 ADSs representing 8.8% of outstanding common shares [712]. - The company has established defined contribution pension plans, with 32% of employees participating in private retirement plans [698]. Expenses and Provisions - In 2020, the company incurred expenses totaling R$423 million related to the Brand Fee contract for the assignment of brand rights [716]. - The company reported R$314 million in expenses for IP transit services and international transmission infrastructure in 2020 [717]. - Expenses for international transmission infrastructure and connection services amounted to R$88 million in 2020 [718]. - The company recorded R$69 million in expenses related to the sale of infrastructure assets and sharing contracts in 2020 [719]. - Total expenses for international transmission infrastructure and connection services reached R$102 million in 2020 [720]. - The company incurred R$80 million in expenses for software licenses, maintenance, and support services in 2020 [721]. - Expenses related to digital business under the Cost Sharing Agreement totaled R$142 million in 2020 [722]. - A contract with CyberCo Brasil resulted in R$15 million in expenses, while the company recorded a gain of R$39 million from the acquisition and disposition of CyberCo Brasil [723]. Legal and Regulatory Matters - Total consolidated provisions for federal administrative and judicial proceedings amounted to R$622.2 million as of December 31, 2020 [729]. - The total consolidated amount under dispute for various state administrative and judicial proceedings was R$17,447 million as of December 31, 2020 [737]. - The company recorded a variation of R$983.1 million in contingencies classified with a possible risk of loss due to new lawsuits filed and risk reassessment [754]. - Approximately R$870.1 million has been provisioned for civil claims where the risk of loss is deemed probable [757]. - The company is involved in regulatory and antitrust litigation with amounts classified as a possible risk of loss totaling R$5.6 billion, with provisions of R$1.2 billion recorded [762]. - A class action related to the HealthCare Plan for Retired Employees (PAMA) is currently in the appeal phase, with the amount involved being indeterminate [764]. - The fine imposed by ANATEL, which is being appealed, amounts to approximately R$211 million, currently totaling about R$516 million with updates and accrued interest [766]. - The company is required to distribute at least 25% of adjusted net income as mandatory dividends each fiscal year [767]. - The company has recorded provisions totaling R$240.8 million for civil proceedings related to consumer claims as of December 31, 2020 [758]. - The company is a party to public civil actions regarding outsourcing legality, awaiting the publication of a decision that may impact residual lawsuits [756]. - The company must comply with Brazilian Corporate Law regarding the allocation of net profits and the maintenance of a legal reserve [771]. - The company is involved in various lawsuits challenging the expiration of prepaid plan minutes, with conflicting court decisions on the matter [761]. Dividends - Dividends and interest on shareholders' equity declared based on Telefônica Brasil's 2020 net profit totaled R$3,830 million, with an additional R$1,588 million proposed for approval at the 2021 General Shareholders Meeting [806]. - The company has historically distributed dividends based on 50% of net income before taxes and interest on shareholders' equity, or 50% of retained earnings and profit reserves [781]. - The board of directors approved a payment of interest on shareholders' equity totaling R$2,800 million on September 5, 2018, which was paid on August 20, 2019 [793]. - The total amount of dividends distributed to common and preferred shares in 2019 was R$2,469 million, based on the closing balance sheet on December 31, 2018 [795]. - The company paid R$1,287 million in dividends on December 13, 2016, based on the closing balance sheet on December 31, 2015 [784]. - The payment of interest on shareholders' equity is subject to Brazilian withholding tax at a rate of 15%, or 25% for shareholders in tax havens [779]. - The conversion of all preferred shares into common shares was completed on November 23, 2020, following approval at the Extraordinary General Meeting [804]. - The company declared and paid dividends and/or interest on shareholders' equity as required by Brazilian Corporate Law and its bylaws [779]. - The board of directors approved a payment of interest on shareholders' equity totaling R$400 million on November 16, 2020, to be paid on July 13, 2021 [804]. - The company’s dividends in 2020 were affected by the devaluation of the Brazilian currency before conversion into U.S. dollars [778].

Financial Data and Key Metrics Changes - The company reported a resilient EBITDA totaling BRL 17.8 billion, with an EBITDA margin increasing by 0.2 percentage points year-over-year to 41.3% [9][10] - Free cash flow reached a record high of BRL 9.6 billion, growing 12.6% year-over-year [10][44] - Shareholder remuneration proposed for the year is BRL 5.4 billion, with a payout ratio of 113.6% and a dividend yield of 7%, significantly higher than local interest rates [10][43] Business Line Data and Key Metrics Changes - Mobile segment added four million customers, achieving a historic market share of 33.6% [9][16] - FTTH revenues increased by 52.9% year-over-year in Q4, with a total of 15.7 million homes passed, an increase of 4.7 million from the previous year [9][22] - Postpaid revenues grew 4.9% quarter-over-quarter, while prepaid revenues increased by 4.3% [11] Market Data and Key Metrics Changes - The company maintained a strong position in the mobile market, with postpaid churn reduced by 0.53 percentage points year-over-year, reaching the lowest level in five years [16] - The fixed business segment grew 9.1% year-over-year, with FTTx revenues up 13.8% [17][18] Company Strategy and Development Direction - The company is focusing on digital transformation and enhancing its core business in high-speed connectivity, which represents 88% of total revenues [13][14] - Plans to launch an independent neutral fiber network, aiming to reach at least 24 million homes passed by the end of 2024 [22][23] - The acquisition of Oi's mobile assets is expected to consolidate market leadership and generate synergies [28][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the acceleration of Brazil's digital transformation due to the pandemic, which has increased demand for connectivity services [8] - The company remains optimistic about future growth, particularly in the FTTH segment and digital services [9][20] Other Important Information - The company has made significant investments in ESG initiatives, including a BRL 59.4 million investment in education and a commitment to sustainability [45][46] - The digital marketplace, launched in July 2020, saw a 6.7x increase in gross merchandise value quarter-over-quarter [25] Q&A Session Summary Question: FTTH ARPU and Customer Acquisition - Management indicated that most net additions are from new customers rather than upgrades from existing clients, and there is room to increase ARPU above BRL 90 through higher-speed offerings and bundled content [51][52] Question: Mobile Net Additions Strategy - The company noted a recovery in postpaid net additions due to the reopening of the economy and improved customer experience, with innovative offerings driving customer acquisition [58][60] Question: Digital Initiatives and Vivo Money - Management explained that Vivo Money is currently available to a segmented customer base and is focused on providing digital loans, with plans for further expansion into financial services [68][70] Question: FTTH Pricing Strategy - The company is focused on maintaining growth in FTTH while exploring aggressive pricing strategies and leveraging partnerships with OTT providers [78][82] Question: Oi Acquisition and CapEx - Management confirmed that no additional CapEx is planned for the current year related to the Oi acquisition, as it will be absorbed within existing projects [89]

Financial Data and Key Metrics Changes - The company reported a net income of BRL 1.2 billion for the quarter, a 25% year-over-year increase [42] - Operating cash flow reached BRL 7.5 billion, with a margin of 23.5%, expanding by 3.4 percentage points year-over-year [13] - Free cash flow for the first nine months of 2020 grew 50% year-over-year to BRL 8.9 billion, surpassing the total for the entire year of 2019 [43] Business Line Data and Key Metrics Changes - Mobile service revenues decreased by 1% year-over-year but increased by 3.3% quarter-over-quarter [10][11] - Fiber revenues, including FTTH and IPTV, grew by 47.3% year-over-year and 14.5% quarter-over-quarter [11][23] - Postpaid customer base accounted for almost 60% of total mobile access, with 844,000 net additions in the quarter [9] Market Data and Key Metrics Changes - The overall mobile market share stood at 33.3%, the highest in 14 years, with a significant reduction in postpaid churn [20] - Prepaid revenues grew by 5.8%, driven by customer acquisition efforts [18] - FTTH net additions totaled 267,000, reaching 3.1 million homes connected, a 34% year-over-year increase [24] Company Strategy and Development Direction - The company is focused on digitalization and simplification initiatives to reduce costs and improve customer experience [12][35] - There is a strong emphasis on expanding the fiber footprint, with plans to reach 268 cities by the end of the year [31] - The company aims to maintain leadership in mobile and fixed services while exploring partnerships and potential M&A opportunities in the fiber market [100][102] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of revenue and customer demand as COVID-19 restrictions ease [91] - The company is confident in its ability to capture growth opportunities in the digital space and maintain strong cash flow generation [45] - Future CapEx is expected to decrease as the company shifts focus to growth technologies and network sharing agreements [82] Other Important Information - The company was recognized as one of the top 10 companies in the new S&P/B3 ESG Index, highlighting its commitment to sustainability [48] - A national campaign for recycling electronic waste was launched, along with the inauguration of a biogas power plant [49] Q&A Session Summary Question: Migration of concessions to authorizations and prepaid pricing - Management is optimistic about the migration process but acknowledges it is still early in the regulatory phase [58][60] - There are plans to increase prepaid prices, but the timing is uncertain due to competitive pressures [61][62] Question: Prepaid performance and legacy business deterioration - The strong prepaid growth is attributed to quality service and effective customer management [67] - Legacy services are declining due to strategic decisions to focus on FTTH and IPTV, with expectations of continued revenue decline in these areas [73] Question: CapEx trends and fiber market strategies - CapEx is expected to decrease as the company prioritizes growth technologies and network sharing [82] - The company is confident in its competitive position in the fiber market despite the presence of smaller players [85] Question: Outlook for Q4 and cost reduction strategies - Management anticipates a positive trend in Q4 due to improved economic conditions and customer demand [91] - There is still room for cost reductions through digital initiatives and operational efficiencies [93]

Telefonica Brasil SA (NYSE:VIV) Q2 2020 Earnings Conference Call July 29, 2020 9:00 AM ET Company Participants Luis Plaster - IR Director Christian Gebara - CEO & Director David Melcon - Chief Financial & IR Officer Conference Call Participants Maria Tereza Azevedo - Santander Marcelo Santos - JPMorgan Chase & Co. Rodrigo Villanueva - Bank of America Merrill Lynch Frederico Mendes - Bradesco BBI Tito Ferraz - Itaú Walter Piecyk - LightShed Partners Operator Good morning, ladies and gentlemen. At this time, ...