Results 1Q10

1Q10 1Q09* ∆ % Total Net Revenue 4,233.2 4,040.4 4.8% Net Service Revenue 3,929.5 3,712.9 5.8% Expenses (2,959.5) (2,813.5) 5.2% EBITDA 1,273.7 1,226.9 3.8% EBITDA Margin 30.1% 30.4% -0.3 p.p. EBIT 402.4 431.7 -6.8% Net Income 191.9 133.0 44.3% Cash Flow (58.2) 10.7 n.a. EBITDA excluding IFRS (CPCs) 1,283.8 1,203.9 6.6% EBITDA Margin exc. IFRS (CPCs) 30.6% 29.9% +0.7 p.p.

Highlights R$ million

* The 2009 numbers were reclassified, when applicable, according to the adoption of new accounting practices in Brazil (CPCs).

Agenda

Operating Performance

Financial Performance

7.5% 19.5%

QoQ YoY

Quality and Coverage

0 

70%

80%

90%

100%

2007 2008 2009 Jan/10 Feb/10

Player 1 Player 2

Player 3

Quality Goals reached by Operators - PGMQ

Vivo reached 594 municipalities covered with 3G technology in March/10 increasing the advantage in relation to its competitors.

0 

Source: Teleco.

399

579 594

1Q09 4Q09 1Q10

3G Coverage

RECHARGE VOLUME R$ Million

Efectiveness of our offers

1Q09 1Q10mar/09 mar/101Q10

28.4%

* Excludes Control plans and Data Cards customers.

+ 10.4% + 9.1 p.p.

CUSTOMERS RECHARGING

% of pre paid customer base

‘VIVO VOCÊ’ CUSTOMERS

% of pure* corporate post paid customer base

* Includes internet usage by handset (WAP) and internet usage by Smartphones and Datacards (ZAP).

Lines that access Internet million

1Q09 4Q09 1Q10

8.9

12.8 12.4

-3.1% +39.3%

0 

0%

10%

20%

30%

40%

50%

Player 1

Player 2 Player 3

Broad Band Market Share

Source: Anatel and Vivo’s internal analysis.

SAC Blended*

6.7% -30.8%

QoQ YoY

22.8% -55.5%

ARPU Trend

- 1,1%

-10.8% -13.9%

QoQ YoY

-6.9% -5.7%

MOU and Traffic Trends

-7.4% -10.7%

QoQ YoY

-1.1% 85.7%

Agenda

Operating Performance Financial Performance

Net Service Revenue R$ million

Data and VAS Revenue R$ million

20.2% 119.8%

QoQ YoY

-5.1% 16.3%

0.0% -9.8%

0 0 0 

0 0 0 

* Excluding Depreciation.

R$ million

Operating Expenses*

763 884 846

1Q09 4Q09 1Q10

Service Rendered Goods Sold Selling Expenses

+10.8% -4.3%

612 489 433

1Q09 4Q09 1Q10

-29.2% -11.4%

210

237

244

1Q09 4Q09 1Q10

+15.8%

General and Administrative

H. R. Fistel, Fust, Funtel

205 268 267

1Q09 4Q09 1Q10

161 160 154

1Q09 4Q09 1Q10

-4.6%

+3.0% -3.8%

1Q09 4Q09 1Q10

+19.1% +3.0%

+30.3% -0.3%

1,015 1,046 878

EBITDA and Margin R$ million

QoQ YoY

-9.1% 3.8% 1.227 1.401 1.274

1Q09 4Q09 1Q10

30,4% 31,7%

30,1%

EBITDA EBITDA Margin

Cash Flow and EBIT

0 

Cash Flow

R$ million

0 

EBIT

431,7

570,5

402,4

1Q09 4Q09 1Q10(58.2)

10.7

687.4

1Q10

4Q09 1Q09

0 

Net Results R$ million

133,0

217,2 191,9

1Q09 4Q09 1Q10

+ 44.3%

- 11.6%

0 0  0 

Financial Resuls, Gross Debt and Net Debt R$ million

(164.8)

1Q09 1Q10 4Q09

(142.4)

(58.3)

FINANCIAL RESULT

1Q09 4Q09 1Q10

5,613.8

3,825.2 3,937.6

+2.9%

-29.9%

GROSS DEBT NET DEBT

39% 19% 25%

61%

81% 75%

1Q09 4Q09 1Q10

7,713.1

5,124.5 4,803.2

-37.7%

-6.3%

CAPEX

0 

Disclosure

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.

Our actual results may differ materially from those contained in such forward-looking statements, due to a variety of factors, including Brazilian political and economic factors, the development of competitive technologies, access to the capital required to achieve those results, and the emergence of strong competition in the markets in which we operate.