September, 2008.
description
Transcript of September, 2008.
1
September, 2008.
Market
Institutional Presentation
Agenda
World Mobile Market
Brazilian Mobile Market
Market
Institutional Presentation
Agenda
World Mobile Market
Brazilian Mobile Market
4
Institutional Presentation
World Users Evolution - billion
Source:Teleco – June 08
Handsets
3.73.5
3.3
2.7
2.2
1.71.3
1.21.0
0.7
2000 2001 2002 2003 2004 2005 2006 2007 1Q08 2Q08
Institutional Presentation
Major Markets
Brazil is the 5th
largest mobile
market in the world
reaching 141mn
handsets in
September 08
1º 2º 3º 4º 5º 6ºChina India US Russia Brazil Indonesia
601
Source: Merril Lynch - Global Wireless Matrix 3Q08
283 263 173 141 116
6Source: Global Wireless Matrix. – 2Q08.
Mobile Penetration
Most telecom/media services still have excellent growth prospects in Brazil due to the low penetration: 69% in mobile as of June 2008.
Institutional Presentation
Market
Institutional Presentation
Agenda
World Mobile Market
Brazilian Mobile Market
8
Panorama
• Population*: 189.6 Million
• Homes*: 56.3 Million
• Area: 8,514,215 km²
• GDP**: R$ 2,778.0 Billion (US$ 1,621.3 Billion)
• GDP per capita**: R$ 14,478 (US$ 8,449)
Source: * Estimated IBGE ** International Monetary Fund, World Economic Outlook Database, estimated 2008.
Institutional Presentation
9
Launch of cell technology in the main Brazilian cities
1990 - 1993 2007
Introduction of third generation technology
2005 - 2008F
(in million of lines) + 200% in the
last 5 years
Brazil holds 5th place in the world mobile telecom ranking
1997
Opening of the Brazilian telecom market
Evolution of mobile telecom in BrazilInstitutional Presentation
10Source: Teleco and Anatel – 2Q08.
Mobile Market Evolution
+24%
118 Million
Institutional Presentation
+21%
+33%
+41%
+31%
+16%
+21%
+16%
11Source: Anatel – 3Q08.
Mobile Market EvolutionInstitutional Presentation
12Source: Teleco and Anatel – 2Q08.
TechnologiesInstitutional Presentation
Customers
Institutional Presentation
Agenda
Vivo’s History
Brazilian Market and Vivo
Vivo’s Customer Base
Vivo Escolha Plans
Vivo’s Operating and Financial Performance
Vivo Today
Customers
Institutional Presentation
Agenda
Vivo’s History
Brazilian Market and Vivo
Vivo’s Customer Base
Vivo Escolha Plans
Vivo’s Operating and Financial Performance
Vivo Today
Joint venture formation
Institutional Presentation
Vivo was launched in April/2003: joint venture by 7 cell phone carriers, leaders in their markets, constituting the largest cell phone carrier in Brazil.
+ =
16
2003 2004 2005 2006
CBF Sponsorship
Vivo Launch
Launch of innovative products and services
Vivo ao Vivo
Vivo Play 3G
Launch ofVivo Escolha Plans
CBF / World Cup
Brand trajectory
Institutional Presentation
17
2007 2008
Brand trajectory
Brand repositioning
Aggressive promotional pricing
National coverage
Launch of Digital TV
Institutional Presentation
18
The brand allies quality of service and vocation for innovation.
Source: Ipsos Asi BrandGraph tracking - mar/08
Currently, Vivo is Top of Mind in the category and is strongly associated with the following attributes:
• Most reliable brand
• Greatest coverage
• Best signal quality
• Most advanced technology
• Best mobile telecom option
Recognition
Institutional Presentation
19
“Most reliable brands in Brazil” (IBOPE / 2007)
“Most valuable brands” (Brand Finance / 2007)
For the 4th consecutive year Vivo is the most reliable brand in Brazil in the mobile telecom category.
Vivo is the most valuable brand in mobile telecom in Brazil with a total of R$ 2.25 billion.
RecognitionInstitutional Presentation
20
RecognitionInstitutional Presentation
Vivo holds higher
satisfaction levels
among users than
the market average.
Source: GFK Total Satisfaction Survey – 2S07
Ratings vary from 0 (extremely unsatisfied) to 10 (extremely satisfied).
Overall satisfaction
Market average Vivo
8.33
8.41
Customers
Institutional Presentation
Agenda
Vivo’s History
Brazilian Market and Vivo
Vivo’s Customer Base
Vivo Escolha Plans
Vivo’s Operating and Financial Performance
Vivo Today
22Source: Planning and Performance Department – September 2008.
Distribution
29%
12% -2%15%
29%
10%
Institutional Presentation
Customers
Institutional Presentation
Agenda
Vivo’s History
Brazilian Market and Vivo
Vivo’s Customer Base
Vivo Escolha Plans
Vivo’s Operating and Financial Performance
Vivo Today
24Source: Planning and Performance Department ;
Vivo’s Customer Base - Thousands
Institutional Presentation
25
Pre and Post paid plans - Millions
Institutional Presentation
Source: Planning and Performance Department;
Customers
Institutional Presentation
Agenda
Vivo’s History
Brazilian Market and Vivo
Vivo’s Customer Base
Vivo Escolha Plans
Vivo’s Operating and Financial Performance
Vivo Today
27
VivoEscolha
50
VivoEscolha
90
VivoEscolha
180
VivoEscolha
350
VivoEscolha
650
VivoEscolha
900
VivoCompleto
Plans FranchiseLocal
MinutesMobile + Fixed
SMS Included + Minutes on net
Long Distance
and Roaming
Free
+ SMS and Wap SMS + MMS +Wap
Favorite Vivo
Number
Free Bonuses
R$ 52.00 50 min - 5 min + 30 min -
90 min 50
180 min 50
350 min 100
650 min 100
900 min 100
1,400 min 100
R$ 83.00
R$ 129.00
R$ 193.00
R$ 288.00
R$ 354.00
R$ 525.00
50 min
50 min
150 min
150 min
300 min
300 min
300 min
15 min + 100 min
15 min + 100 min
15 min + 100 min
30 min + 200 min
30 min + 200 min
30 min + 200 min
50 + 50 + 500 KB
100 + 100 + 500 KB
100 + 100 + 500 KB
300 + 300 + 2 MB
300 + 300 + 2 MB
300 + 300 + 2 MB
300 + 300 + 2 MB
-
1,000 min
1,000 min
1,000 min
1,000 min
1,000 min
=
=
=
=
=
=
=
&
&
&
&
&
&
+
+
+
+
+
+
+
or
or
or
or
or
+
or
or
or
or
or
or
or
or
or
or
or
“Vivo Escolha” PlansInstitutional Presentation
Customers
Institutional Presentation
Agenda
Vivo’s History
Brazilian Market and Vivo
Vivo’s Customer Base
Vivo Escolha Plans
Vivo’s Operating and Financial Performance
Vivo Today
29
ARPU – R$
Institutional Presentation
30
SAC and Churn
Institutional Presentation
SAC
CHURN
31
Net Revenue – R$ million
Institutional Presentation
CAGR 03 - 07:
7.6%
32
EBITDA – R$ million
Institutional Presentation
*Including extraordinary effects of ICMS on Telemig of R$ 240 million.
33
Capex – R$ million
Institutional Presentation
34
Net Debt and Cash Flow – R$ million
Institutional Presentation
Customers
Institutional Presentation
Agenda
Vivo’s History
Brazilian Market and Vivo
Vivo’s Customer Base
Vivo Escolha Plans
Vivo’s Operating and Financial Performance
Vivo Today
36
Today
Institutional Presentation
Source: Anatel 3Q08 (Brazil) /Merril Lynch - Global Wireless Matrix 2Q08 (World)
In the Second Quarter 2008, the clients of Telemig Celular joined Vivo’s client base, becoming part of a company that is among the world’s 15 biggest mobile operators, with a community of 42.3 million customers.
Brazil World
1º 2º 3º 4º 5º 14º