Telefnica Brasil SA: Presentation regarding the acquisition of Oi’s mobile assets
WARNING
This presentation may contain forward-looking statements concerning the prospects and objectives for capturing synergies, growth in the subscriber base, the distribution of the various services to be offered and their respective results
Our actual results may differ materially from those contained in such forward-looking information. statements to researchdue to various factors, including political and economic factors, the development of competitive technologies, access to the capital necessary to achieve these results and the emergence of strong competition in the markets in which we operate
The sole purpose of these statements is to indicate how we intend to expand our business and therefore should not be considered as guarantees of the future
performance
Value creation through the acquisition of key assets, reinforcing leadership in mobile customers, spectrum and overall experience
Assets acquired
Billion reais
Spectrum
43MHz
Acquisition cost (excluding net cash) + Earnout
5.4
Acquisition cost
5.3
in 1800MHz, 2100MHz and 900MHz frequencies, with national coverage
Closing (90%)²
4.9
Withheld (10%) to be paid in 120 days
0.5
Mobile customer base
Access 12.5 min
Cash²
(0.1)
37% postpaid and 63% prepaid
Earnout³ – 12 months
0.1
Sites
Additional contracts
0.3
2,700 websites¹
Transition Service Agreement4 0.1
Strengthen the capacity and capillarity of our network
Data transmission contract5 (VAN) 0.2
1 – Total rental liability of R$1.4 billion NPV (unaudited figure). Half of the sites to be offered for sale in order to comply with wwith the antitrust appeal (CADE). 2 – Cash of R$0.1 billion held by SPE Garliava at the closing date. 3 – Additional value to be paid, subject to the achievement of certain operational parameters. 4 – Network, IT and client services will be provided by Oi for a period of 12 months. 5 – Data Transmission Contract with Oi for a period of 10 years.
Mobile consolidation reaffirms Vivo as Latin America the largest clientele, strengthen our position throughout Brazil
Vivo Mobile Market Position by State
market leader
+5 states
Leadership in 17 States, that represent 66% of Brazil’s GDP and 67% of the population²
-
1 – Considering Vivo’s mobile access base of 84.6 million according to February 2022 figures from ANATEL and customer base sourced from Oi12.5 million.
-
2 – GDP and population Source: IBGE 2019.
New customers will benefit from Vivo’s second-to-none network, offers and customer service
Customers originating from Oi Mobile will benefit from the following advantages
1 – Vivo stores + resellers. 2 – ANATEL 2021 Satisfaction and Perceived Quality Survey.
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