Telefonica Sa · BME:TEF

Telefonica Sa — Investor Day (October 2003)

14 slides from Telefonica Sa's investor day presentation, Oct 10, 2003

  1. Slide 1: Closing Remarks - César Alierta

    César Alierta Executive Chairman and CEO Telefónica, S.A. Closing Remarks

  2. Slide 2: Enhancing cash returns through growth and transformation

    Telefónica, S.A. Enhancing cash returns through growth and transformation Closing Remarks October 10, 2003 1

  3. Slide 3: Telefónica has anticipated the sector trends and taken the steps required

    Telefónica, S.A. In the recent past, Telefónica has anticipated the sector trends and taken the steps required for the new environment The Telco sector’s To-Do List EU telco Telefónica peers Extend growth potential in wireless 99 ? Firm decisions taken to transform traditional wireline 99 ? Leveragi

  4. Slide 4: Committed to growing free cash flows and improved returns on capital

    Telefónica, S.A. Looking forward, we are committed to generating growing free cash flows and improved returns on capital for our shareholders Our commitment Our towards our management focus shareholders A B Growing cash flow generation and improved ROCE Move ahead in Drive top line + growth company

  5. Slide 5: We will make sure that top-line growth happens

    Telefónica, S.A. We will make sure that top-line growth happens Management for growth will focus …leveraging on five on three key levers… key assets and capabilities • The most experienced in Spain & LatAm: •Drive the BROADBAND opportunity Leadership in Spanish and Portuguese markets • Unique positi

  6. Slide 6: Taking our ongoing transformation further to stimulate growth

    Telefónica, S.A. And we will take our ongoing transformation further to stimulate growth Commercial Leaner, oriented company more efficient business model Households ƒ Transition towards most Corporations & Individuals ƒ Less capital intensity commercially oriented Government through CapEx organisat

  7. Slide 7: Market dynamics may offer opportunities to complement our core businesses

    Telefónica, S.A. In addition, current market dynamics may offer us opportunities to complement our core businesses • Core business only • Manageable geographies The principles • Complementary with existing operations that will govern our actions • Reasonable price / upside balance • No greenfield op

  8. Slide 8: Execution managed according to consistent, well-defined principles

    Telefónica, S.A. Our execution on these fronts will be managed according to consistent, well-defined principles One integrated telecom Group Consistent Transparent, Committed to and reliable accountable Committed to organic management to implementing growth in under a shareholders our vision for cor

  9. Slide 9: Expect 7-10% consolidated top-line organic growth 2002-06

    Telefónica, S.A. As a result, we expect to deliver 7-10% consolidated top-line organic growth 2002-06 … Customer Base Revenues 2002 2006E Revenues 2003 guidance €m Wireline Lines in Service (m) 44.9 > 45 M CAGR** 7-10% % Broadband 3.1% 12-16% 28,411 Wireless 5-8% Customers (m) 43.9 > 65 M 2002 2003E

  10. Slide 10: 20-23% EBIT growth with full impact to bottom line

    Telefónica, S.A. … 20-23% EBIT growth with full impact to bottom line ... EBITDA EBIT 2003 guidance €m €m 2003 guidance CAGR* CAGR* 20-23% 9-12% 11,724 5,032 18-21% 6-9% 2002 2003E 2006E 2002 2003E 2006E EBIT margin 17.7% 28– 31% * Constant exchange rates as of 2002 * Constant exchange rates as of 2

  11. Slide 11: Steady increase of free cash flow generation and return on capital

    Telefónica, S.A. … and, finally, delivering a steady increase of free cash flow generation and return on capital Free Cash Flow* Return on Capital Employed** €m Double-Digit > 27,000 ROCE 4,546 7.4% 2002 Cumulative 2003-2006 2002 2005E Minimum dividend commitment of € 6 bn in 2004-2006 * FCF= EBITDA

  12. Slide 12: One step forward in our commitment to shareholder remuneration

    Telefónica, S.A. We are moving one step forward in our commitment to shareholder remuneration... supported by our increasing confidence in our Free Cash Flow generation TOTAL 03-06 >27 billion € * TO FULLY 1. SHAREHOLDER REMUNERATION from 7.4 to 11.4 DELIVER ON OUR FIRM 2. SOLVENCY PROTECTION FOR A

  13. Slide 13: In summary, execution of growth and transformation

    Telefónica, S.A. In summary, execution of growth and transformation… to offer a unique combination in the Telco industry STRONG ORGANIC GROWTH POTENCIAL Sustainable STRONG AND LONG-TERM SHAREHOLDER REMUNERATION FREE cash flow >11.4 bn Euros 03-06, more than 21% current market cap yield generation di

  14. Slide 14: Slide 14

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