investor relationsri.oi.com.br/oi/web/arquivos/oi_apr_resultados_1q12_eng.pdf · conference call...
TRANSCRIPT
Investor Relations
Conference Call May 2012
1Q12
Performance EBITDA Pro forma
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EBITDA and EBITDA margin both registered growth in relation to the previous quarter and the same period in 2011
1Q11 1Q12
2,012 29.6%
1,985 28.6%
4Q11 1Q12
2,012 29.6%
1,838 26.4%
Performance EBITDA Pro Forma
Result arises mainly from the combination of 3 factors, aligned with the company’s long-term strategy
4,789 thousand
(-6.5 % vs. 4Q11)
70,826 thousand
(+1.6 % vs. 4Q11)
GROWTH OF RGU’s
REDUCTION OF COSTS AND EXPENSES
AGGRESSIVE COMMERCIAL
ACTIVITY
2
Fixed Line RGU’s Net Disconnections
(Thousands)
Growth of RGU’s ResidenTial
Slowdown in the contraction of fixed
telephony base...
... contribute to base stability, reversing the
historic downward trend
Fixed Broadband RGU’s Net Additions
(Thousands)
Pay TV RGU’s (Thousands)
Residential RGU’s (Thousands)
...and Pay TV growth...
...with acceleration of broadband...
341 351
396
1Q11 4Q11 1Q12
158 154
202
1Q11 4Q11 1Q12
236 231
205
1Q11 4Q11 1Q12
3
+ + =
1Q11 4Q11 1Q12
18,266
17,810 17,850
Acceleration of post-paid growth...
...with the focus on higher profitability of the pre-paid
base...
Sustainable growth of mobile customer base
Total ARPU – R$21.3 Total RGUs (Thousands)
1Q11 4Q11 1Q12
39,294
43,263 44,106
285
144
(493)
1Q11 4Q11 1Q12
• Only player in the 1Q12 with a YoY ARPU growth (+3%)
• 2nd highest ARPU of the market
• Consistent Evolution:
• Distance from the highest ARPU
12% 9%
5%
1Q11 4Q11 1Q12
Growth of RGU’s Personal Mobility
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Post-paid + Controle
Net Additions (Thousands)
+ =
• Growth of own stores and
franchises
• Change in commissioning system
for dealers
• Greater presence in the large
national retail stores, increasing
from 34% to 56%
• Incorporation of the multibrand
distributor model in the sales
operation
Residences by number of product 1Q12
Number of residences with more than
1 product on the total base increased
130 bps, reaching 6,238 thousand
52.1% 47.9% 1 product
> 1 product
Channels Convergence
Growth of RGU’s Channels / Convergence
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2,178 2,242 2,385
514 523 535
4,998 5,083 5,192
1Q11 4Q11 1Q12
Mobile Broadband Fixed
• Data grows 12% vs. 1Q11 and 5% vs. 4Q11
• Mobility grows 45% vs. 1Q11 and 9% vs. 4Q11
• Modernization of network and resumption of sale of internet access boosted results
• Strengthening of sellers headcount
7,690 7,848 8,112
Continuity of the growth pace
Corporate
• Investment in training the teams and new regional offices
• Increasing door-to-door sales team to 4,000 employees
SME REVENUE GENERATING UNITS (RGU’s) Thousands
Growth of RGU’s SME/ Corporate
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Aggressive Commercial activity
• Convergent offering of unlimited fixed and mobile pre-paid services (unlimited calls from ‘Oi Fixo’ and ‘Oi Cartão’ for just R$ 29.90 per month)
• ‘Oi Internet Total’: access anywhere via fixed and 3G network and wi-fi. Already represents 10% of high speed broadband sales;
• ‘Oi TV Mais Package’, with 44 paid channels for R$ 29.90/month. Most appealing entry-level package of the market
• ‘Oi Smartphone’ plans: Integrated and unlimited voice, internet, SMS and Oi WiFi services, and aggressive discounts for smartphones
• Subsidized mini-modem for new ‘Oi Velox 3G’ clients
• Unlimited calls to any Oi and local ‘Oi Fixo’ for 30 days for just R$14.90
New offerings and plans for residential and mobility clients leverage quarterly sales
Residential Mobility
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2,746 2,536 2,429
1,867 2,150 2,106
2,127 2,112 2,111
193 159 155
1Q11 4Q11 1Q12
Residential Mobility SME / Corporate Others
6,933 6,958 6,802
Performance in line with Oi’s long-term strategic plan, considering that growth recovery begins with an improvement in operating indicators
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Net Revenue Pro Forma r$ million
• Spike in costs and expenses in 4Q11 due to the initial phase of the execution of strategic plan, some of which are non recurring
• Greater commercial intensification that usually takes place in the year end also influenced in the quarterly comparison
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4.948
5.120
4.789
(6)
55 38 27
172 46
(12) (37)
48
1Q11 4Q11 Interconnection
Personnel Materials HandsetCosts/Other
Third-PartyServices
Marketing Rent andInsurance
Provision forBad Debts
OtherOperating
Exp.
1Q12
-6.5%
Personnel Marketing Third Party Services
Reduction of Pro forma Costs and Expenses r$ million
Net Income – Oi S.A. Consolidated
Net income as the basis for payment of dividends. Oi S.A. now includes all of
shareholders of the group
93
141
346
1Q11 4Q11 1Q12
Following the approval of the ownership
restructuring on 02/27/2012, TNL, Coari and the
shareholders of TMAR were incorporated by Oi S.A.,
TNL and Coari became extinct and TMAR became a
wholly-owned subsidiary of Oi S.A.. As a result, the
figures in this report represent Oi S.A. (the remaining
company, and the new name of Brasil Telecom S.A.)
at the end of March 2012, when it had taken over
only one month of TMAR, Coari and TNL (from
02/28/2012 to 03/31/2012). However, for a better
understanding of the business, we present the
consolidated pro-forma results equivalent to the old
TNL figures, with the exception of Net Income, as if
the takeover had taken place on January 1st, 2012.
Net Income r$ million
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Debt Pro forma
* 12 months pro forma
Gross Debt R$ million
Quarterly increase due to the payment of Fistel and Capex
disbursement
22,531
25,140
28,866
5,872 4,579
3,979
1Q11 4Q11 1Q12
Long Term Short Term
28,404 29,719
32,845
Net Debt R$ million
1Q11 4Q11 1Q12
Average maturity of debt Years
3,8
4,5
5,0
1Q11 4Q11 1Q12
17,472 16,326
Balanced debt profile, with average term and cost of 5 years and 101.5% of CDI, respectively, and post-hedge foreign exchange exposure of 0.7%
14,390
Net Debt / EBITDA*
1.9x 2.0x 1.5x
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(74,2%)
(76,3%)
(73,7%)
( ) = % of Total Capex
Pro forma capex totaled R$1,091 million, up 31.6% on 1Q11, in line with the capex guidance announced to the market (R$6 billion in 2012)
611
1,626
809
50
136
99 168
370
183
1Q11 4Q11 1Q12
network IT services Others
829
2,132
1,091
(73.7%)
(76.3%)
(74.2%)
Capex Pro forma r$ million
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2
1
2 2 1
2012E 2013E 2014E 2015E
2012-2015: TOTAL AMOUNT OF R$ 8 BI
R$2 Bln already paid in May/12
Guidance & Dividend Policies
PARAMETERS 2012 2015
Revenue Generating Units (RGU) - million
74.9 106.8
Residential 19.8 25.7
Personal Mobility 45.8 67.8
Business/Corporate 9.3 13.3
Net Revenue - R$ billion 28.9 38.6
EBITDA – R$ billion 8.8 12.8
Capex – R$ billion 6.0 6.0
Net Debt – R$ billion 24.9 28.4
Guidance Dividend Policy (R$ billion)
• Net Debt /EBITDA: 3.0x
• Net debt includes payment of dividends of the fiscal year
• EBITDA registered in the year prior to the year of dividend payment
Covenants
Thanks to these results, the company reaffirms its confidence and reiterates the guidance
and dividend policies announced at the Investors Day
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INVESTOR RELATIONS
IR Contacts
Bayard Gontijo
55 21 3131-2972 [email protected]
Marcelo Ferreira
55 21 3131-1314 [email protected]
Patricia Frajhof
55 21 3131-1315 [email protected]
Matheus Guimarães
55 21 3131-2871 [email protected]
Michelle Costa
55 21 3131-2918 [email protected]
Leonardo Mantuano
55 21 3131-1316 [email protected]
Address: R. Humberto de Campos, 425 – 7º andar Leblon Rio de Janeiro - RJ
Visit our website: www.oi.com.br/ir
Twitter: www.twitter.com/oi_investors
This presentation contains forward-looking
statements. Statements that are not historical
facts, including statements about our beliefs
and expectations, are forward-looking
statements and involve inherent risks and
uncertainties. These statements are based on
current plans, estimates and projections, and
therefore you should not place undue reliance
on them. Forward-looking statements speak
only as of the date they are made, and we
undertake no obligation to update publicly any
of them in light of new information or future
events.
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