Financial Data and Key Metrics Changes - Revenue reached almost EUR 9 billion in the quarter, growing 1.5% organically [14] - EBITDA was nearly EUR 3 billion, up 1.2% [14] - Free cash flow turned positive to EUR 5 million in the second quarter, an improvement of EUR 718 million versus Q1 [14] - Net financial debt decreased 5.5% year on year to EUR 27.6 billion as of June [15] - Earnings per share from continued operations amounted to EUR 0.07 in the second quarter [15] Business Line Data and Key Metrics Changes - In Spain, the company achieved its best Q2 net adds since Q3 2018, with a convergence churn rate of 0.8%, the lowest in over 11 years [23][24] - Brazil saw a 6% increase in contract accesses and a 42% increase in revenue from cloud services [30] - Telefonica Deutschland reported a decline in EBITDA by 6% year on year, primarily due to the migration of the one on one customer base [34] Market Data and Key Metrics Changes - Spain and Brazil together represent 70% of group EBITDA, showing improving trends this quarter [15] - The UK market remained competitive, with Virgin Media O2 focusing on customer loyalty and protecting value [36] - In Germany, the mobile service revenue declined year on year, reflecting the impact of the one on one customer migration [34] Company Strategy and Development Direction - The company is focused on customer-centric strategies, operational excellence, and creating value under strict financial discipline [8] - Strategic choices are aimed at strengthening the competitive position in the European telecom industry [8] - The company is concentrating resources in select markets where it has competitive advantages, as evidenced by the sales of operations in Argentina, Peru, and other Latin American countries [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation at Telefonica, which is expected to create value for shareholders [8] - The company reiterated its full-year 2025 guidance across metrics, expecting revenue and EBITDA to continue growing [17] - Management acknowledged the variable macro environment but emphasized the focus on managing controllable factors [8] Other Important Information - The completion of the copper shutdown in Spain marks a significant milestone, freeing up resources for other endeavors [10] - The company aims to achieve a simplified organization that can move faster and compete more effectively [13] - Telefonica has been recognized for its sustainability efforts, being named the second most sustainable company in the world by Time Magazine [46] Q&A Session Summary Question: Expectations for growth in Spain and the UK - Management aims for revenue growth in Spain to exceed 2024 levels, driven by improved customer experience and B2B momentum [53] - In the UK, management acknowledged the competitive market and emphasized ongoing efforts to manage retention and prevent churn [68] Question: Strategic review and balance sheet considerations - Management stated that leverage is relevant but not strategically limiting, emphasizing the importance of maintaining investment-grade ratings [79] - The company is looking to take calculated risks to achieve larger economies of scale [81] Question: Cybersecurity and technology investments - Management highlighted the changing conditions in the cybersecurity market driven by European political will and defense investments [65] - The company is exploring opportunities in technology but does not see a need for significant CapEx in cybersecurity at this time [106] Question: Updates on fiber path stake sale and infrastructure ownership - The fiber path sale process is ongoing and not part of the strategic review [106] - Management believes that owning core infrastructure is essential for operational efficiency and service offerings [115]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **credit market**, particularly the dynamics of high yield (HY) and investment grade (IG) sectors, as well as the broader economic implications affecting these markets [2][10][20]. Core Insights and Arguments 1. **Low Volatility Environment**: The S&P 500 has not moved more than 1% for 22 consecutive days, with 30-day realized volatility at just 9%, indicating a calm market which is typical for July [2][13]. 2. **Market Differentiation**: Despite tight spreads near 20-year lows, there is significant differentiation in credit markets, with penalties for poor business performance. This suggests that the market is not at peak euphoria [5][21]. 3. **Potential Catalysts for Change**: Weak US data on August 1 and an uptick in CPI on August 12 could serve as catalysts for credit market shifts. A hawkish Federal Open Market Committee (FOMC) meeting could also impact market sentiment [4][10][23]. 4. **Technical Factors**: Technicals are expected to remain positive as supply slows, with strong flows into credit markets. Financial deregulation in the US and Europe is anticipated to encourage investor risk-taking [20][21]. 5. **Fundamental Changes**: The credit market has shown resilience to macroeconomic conditions, but a forecast for slower growth and rising inflation in the second half of 2025 could alter this dynamic [21][23]. Important but Overlooked Content 1. **Portfolio Trading Surge**: Portfolio trading volumes surged in the first half of 2025, with high yield trades growing at a faster pace than investment grade, indicating strong market activity [6][45]. 2. **Sector-Specific Insights**: Feedback on Warner Bros Discovery (WBD) and changes in views on Clear Channel Outdoor (CCO) were discussed, highlighting sector-specific dynamics that could influence credit ratings and investor sentiment [7][53][56]. 3. **Default Rates and Performance Tiering**: Default rates have stabilized but are increasingly concentrated among distressed cohorts, with a notable bifurcation in performance across different credit ratings [49][50]. 4. **Sentiment Indicators**: Current sentiment measures indicate more confidence than normal, although not extreme, suggesting a cautious optimism in the market [31][41]. Conclusion The credit market is currently characterized by low volatility and tight spreads, but significant differentiation exists among issuers. Upcoming economic data releases and potential shifts in fundamentals could impact market dynamics. Investors are advised to remain vigilant and consider sector-specific insights when making investment decisions.

Core Viewpoint - Hainan Telecom is playing a crucial role in the digital infrastructure of Hainan Free Trade Port, with significant investments in data centers and computing power to support the secure and orderly flow of data across various industries [2][4]. Group 1: Infrastructure Development - The China Telecom Hainan (Haikou) International Information Park is planned to cover approximately 390 acres, with a final capacity of about 41,000 racks, currently having completed phase 1 with 6,000 racks [2][3]. - Hainan Telecom has built a large-scale computing power cluster, including the Haikou and Sanya International Information Parks, establishing a "North-South dual-core" data center network [4][5]. Group 2: Service Capabilities - The data center provides comprehensive intelligent information services for various sectors, including government, transportation, education, and healthcare, enhancing digital transformation across industries [3][5]. - Hainan Telecom has established a data product supermarket, the first of its kind in the country, which has attracted over 2,000 market participants and achieved a data transaction scale exceeding 1.2 billion [5]. Group 3: Technological Resilience - The data center demonstrated its resilience during extreme weather conditions, maintaining uninterrupted operations despite power and water outages caused by Typhoon "Mojia" [3]. - Advanced monitoring and maintenance systems are in place to ensure optimal operating conditions for computing equipment, including real-time temperature and humidity adjustments [3]. Group 4: Connectivity and Expansion - Hainan Telecom has built 11,700 5G base stations, achieving continuous coverage in urban and rural areas, with a 100% optical network access rate in administrative villages [4]. - The company is enhancing international connectivity with new submarine cables linking to Southeast Asia, facilitating cross-border data flow and international business expansion [4].

Core Viewpoint - Orange, a major telecommunications provider, reported a cyberattack on its information systems, leading to service disruptions and an ongoing investigation into the incident [1][2]. Group 1: Cyberattack Details - The cyberattack was detected on July 25, prompting the company to isolate affected services to minimize impact [1]. - Disruptions were noted in some platforms, affecting business customers and public sector services primarily in France [1]. - The company stated that there is no evidence of internal or customer data being exfiltrated [1]. Group 2: Customer and Regulatory Response - Orange is actively engaging and informing affected customers about the situation [2]. - A complaint has been filed with relevant authorities, adhering to GDPR requirements for notifying local data protection authorities within three days of a suspected data breach [2]. - The company serves 291 million customers across 26 countries and employs 127,000 staff [2].

Investors should also recognize that DTEGY has a P/B ratio of 1.8. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.48. DTEGY's P/B has been as high as 1.88 and as low as 1.30, with a median of 1.56, over the past year. Value investors will likely look at more than just these metrics, but the above data helps show that Deutsche Telekom is lik ...

Financial Data and Key Metrics Changes - Vivo achieved total revenue of BRL 14.6 billion in Q2 2025, representing a 7.1% year-over-year increase, significantly outpacing inflation during the period [7][8] - EBITDA grew 8.8% year-over-year, reaching a margin of 40.5%, reflecting disciplined cost management and operational efficiency [7][20] - Operating cash flow reached BRL 7.3 billion, up 12.5% year-over-year, with a free cash flow yield close to 8% [7][23] Business Line Data and Key Metrics Changes - The mobile segment saw a 7% year-over-year growth in postpaid customers, now comprising 67% of the total mobile customer base [6] - Fiber connections expanded by 12.6% year-over-year, reaching 7.4 million accesses, driven by the Vivo Total conversion plan [6][11] - New businesses represented 11.2% of total revenues, a 1.7 percentage point increase year-over-year, with OTT subscriptions growing 34.5% [9][13] Market Data and Key Metrics Changes - The B2B segment recorded a 13.3% year-over-year growth, with digital B2B services growing 31.3% [14] - The company reported a strong performance in mobile services, with postpaid revenues increasing by double digits [46] Company Strategy and Development Direction - Vivo's strategy focuses on high-value offerings and service convergence, with a strong emphasis on customer experience and innovation [10][12] - The company is exploring M&A opportunities to enhance its network and service offerings, particularly in fiber [32][78] - Vivo aims to maintain its leadership in sustainability, being recognized for its ESG initiatives [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong financial results despite macroeconomic challenges [3][6] - The company anticipates continued growth in both mobile and fiber segments, with a focus on reducing churn and enhancing customer loyalty [94] Other Important Information - Vivo has already paid BRL 5 billion to shareholders in 2025, reaffirming its commitment to distribute at least 100% of net income [24] - The company completed a reverse stock split followed by a forward stock split, which significantly increased average daily trading volumes [24] Q&A Session Summary Question: What can we expect regarding leases and the FiBrazil integration? - Management indicated that lease payments have stabilized, with a focus on optimizing costs and capturing synergies from the FiBrazil acquisition, which is pending regulatory approval [27][30][35] Question: How is the fiber to the home ARPU evolving? - The reduction in ARPU is attributed to the growth of the Vivo Total customer base, which, while diluting ARPU, has positively impacted churn rates [40][42] Question: What is the competitive landscape in mobile? - The mobile market remains competitive, but Vivo's strategy focuses on upselling and maintaining low churn rates, with postpaid revenues showing strong growth [46][48] Question: Can you comment on financial expenses and OpEx? - Financial expenses were impacted by seasonal effects, but net income continues to grow year-over-year. OpEx increases were primarily due to personnel costs and G&A expenses, which are expected to remain controlled [52][58][60] Question: How is the migration from copper to fiber progressing? - The migration is set to accelerate, with significant cash effects expected from the sale of copper and real estate assets in the coming quarters [66][70] Question: What are the plans for increasing cross-selling? - Vivo is focusing on upselling digital services and enhancing customer engagement through its app, with significant growth opportunities identified in both B2C and B2B segments [85][89]

RESULTS 2Q25 Telefônica Brasil S.A. Investor Relations July 28th, 2025 | VIVT | V | | --- | --- | | | 115 | | B3 LISTED | N | ***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. This presentation may contain forward -looking statements concerning prospects and objectives regarding the capture of synergies, growth of the subscriber base, a breakdown of the various services to be offered and their respective results Our actual resul ...

Core Insights - Orange Group reported solid first-half results for 2025, with an EBITDAaL growth of 3.8% and an increase in organic cash flow by 7.7%, prompting an upgrade of the EBITDAaL growth target for the year [2][3][6] Financial Performance - Revenues for the first half of 2025 reached €19,853 million, a slight increase of 0.3% compared to the previous year [2][58] - EBITDAaL for the first half was €5,675 million, reflecting a growth of 3.8% [2][58] - Consolidated net income excluding the GEPP provision was €1,167 million, while including the provision, the net income was -€105 million [9][10] - eCAPEX for the first half was €3,023 million, up 4.1% year-on-year [11][58] - Free cash flow from telecom activities was €1,086 million, down 13.5% year-on-year due to license payment phasing [13][58] Regional Performance - France's revenues decreased by 2.2% to €8,569 million, with retail services stable [16][27] - Africa & Middle East segment saw a revenue increase of 12.8% to €4,140 million, marking the tenth consecutive half of double-digit growth [16][31] - European revenues remained stable at €3,495 million, with retail services growing by 1.2% [16][36] Operational Highlights - The mobile customer base reached 261.6 million globally, with a 6.4% increase, while fixed broadband accesses grew by 4.4% [7][36] - Orange maintained its leadership in mobile network quality in France for the 14th consecutive time [29] - The launch of a new division in Orange Business dedicated to defense and security aims to capitalize on opportunities in the sovereignty sector [5][42] Strategic Initiatives - Orange's sustainability efforts included issuing a €750 million sustainable bond and exceeding its 2025 target for reducing greenhouse gas emissions by 41% [19][20] - The company is focused on digital inclusion, having provided free digital training to 2.9 million beneficiaries since 2021 [21] Future Outlook - The full-year guidance for EBITDAaL growth has been raised to above 3% [6][17] - The company aims to achieve organic cash flow from telecom activities of at least €3.6 billion by the end of 2025 [17]

Core Viewpoint - Telefônica Brasil reported strong operating performance in 2Q25, leading to significant growth in revenue, EBITDA, and net income [1]. Financial Performance - Net Operating Revenue reached R$14,645 million, a 7.1% increase from R$13,679 million in 2Q24 [2]. - EBITDA grew by 8.8% YoY to R$5,933 million, with an EBITDA margin of 40.5%, up 0.6 percentage points from the previous year [4][6]. - Net Income attributed to Telefônica Brasil was R$1,344 million, reflecting a 10.0% increase compared to R$1,222 million in 2Q24 [6]. Revenue Breakdown - Mobile Services revenue increased by 7.3% YoY to R$9,555 million, driven by a 10.6% growth in postpaid services and a 5.1% increase in mobile ARPU, reaching R$31.1 [2][3]. - Fixed revenue rose by 8.0% YoY, supported by FTTH growth of 10.4% and Corporate Data, ICT, and Digital Services revenue growth of 20.7% [4]. Subscriber Growth - Total subscribers increased by 1.3% YoY, reaching 116,190 thousand, with postpaid customer base growing by 7.0% YoY to 68.5 million accesses [2][3]. Capital Expenditure - Capex for 2Q25 totaled R$2,439 million, a 4.2% increase YoY, representing 16.7% of revenues, reflecting a decrease in Capex intensity [5]. Cash Flow and Shareholder Returns - Operating Cash Flow was R$3,494 million, up 12.2% YoY, with a margin of 23.9% [6]. - The total remuneration paid to shareholders reached R$5,233 million, with commitments to distribute at least 100% of net income for fiscal years 2024 to 2026 [7].

Financing Overview - IDB Invest and Bladex are providing a financing package of up to $205 million to Telemóvil El Salvador, S.A. de C.V. (Tigo) for the expansion of its broadband network and mobile infrastructure [1][7] - The financing package includes a $150 million loan, with $75 million from each IDB Invest and Bladex, a $30 million Revolving Credit Facility (RCF), and a $25 million Digital Account Receivables Discount Facility, all aimed at enhancing Tigo's services [2] Project Objectives - The project aims to improve productivity, digital inclusion, and economic resilience by expanding and upgrading network infrastructure in response to expected surges in data traffic [3] - Enhanced broadband services are intended to unlock access to digital education, telehealth, and e-commerce opportunities for underserved populations [3] Company Profiles - IDB Invest is a multilateral development bank focused on promoting economic development in Latin America and the Caribbean through private sector financing, managing a portfolio of $21 billion [4] - Bladex, founded in 1979, promotes trade finance and economic integration in Latin America and the Caribbean, providing financial solutions to institutions and corporations in the region [5] - Tigo, a subsidiary of Millicom, has been a leader in El Salvador's digital evolution since 1992, offering high-speed internet, mobile services, and promoting financial inclusion through Tigo Money [6]