Telefonica Sa · BME:TEF

Telefonica Sa — Q1 2001 Earnings Presentation

22 slides from Telefonica Sa's earnings presentation, May 2001

  1. Slide 1: January - March 2001 Results

    January - March 2001 Results This presentation is being broadcast live on the internet

  2. Slide 2: Financial Highlights

    FINANCIAL HIGHLIGHTS January-March 2001 Euros in millions Total % Change % Change Group 1Q01/1Q00 1Q00/1Q99 Operating Revenues 7,603.3 17.9% 22.3% Reported EBITDA 3,128.2 10.9% 3.5% Reported EBITDA 3,238.2 12.4% 5.7% excluding Terra contribution Reported Operating Income 1,355.6 14.5% (5.3%) Reporte

  3. Slide 3: Financial Highlights by Business Lines

    FINANCIAL HIGHLIGHTS BY BUSINESS LINES Euros in Mill. REVENUES EBITDA Business Lines Jan-Mar 01 % Annual Change Jan-Mar 01 % Annual Change T. de España 2,588.7 4.4 % 1,255.7 6.4% T. Móviles 1,939.5 17.4 % 751.2 28.6% T. Latam 2,594.7 12.9 % 1,291.5 11.0% T. Data 406.4 55.2 % 7.2 (68.2%) Terra - Lyco

  4. Slide 4: Operating Highlights

    OPERATING HIGHLIGHTS Managed Absol.chg %Change Thousands March-01 Mar01/Mar00 Mar01/Mar00 Lines in service 40,536 3,827 10.4% Cellular customers 25,343 7,947 45.7% Pay TV customers 1,025 191 23.0% Total Connections 66,905 11,965 21.8%  Proportionate fixed and mobile clients grew at rates close to 5

  5. Slide 5: Proactive Management of Regulation

    PROACTIVE MANAGEMENT OF REGULATION • TELEFONICA DE ESPAÑA: tariff rebalancing issue solved • Increase in monthly fee • Other measures 12,62 Euros 11,67 Settlement of 2003 price cap: CPI-4% 11,07 11,07 10,47 10,47 Old New Commercial flexibility on discount schemes and price changes 2001 2002 2003 •

  6. Slide 6: Telefónica de España: Operating Drivers

    TELEFONICA DE ESPAÑA : OPERATING DRIVERS Parent Company Jan.-March 01/00 Selected Operating Data Jan.-March.01 %Change Total eq. lines in service (mill.) 20.5 5.1% Total traffic (mill. min.) 33,737 39.0% Internet Traffic 8,910 89.5% Minutes/line/day 20.8 36.5% Provincial effective price(Euro/100) 6.

  7. Slide 7: Telefónica de España Group: Revenues, Margins & Cost Structure

    TELEFONICA DE ESPAÑA GROUP: REVENUES, MARGINS & COST STRUCTURE GROUP Jan.-March.01/00 Euros in millions Jan.-March 01 %Change Operating Revenues 2,588,7 4.4% Operating Expenses before interc. 948.7 -6.0% Operating Expenses 1,355.6 -0.9% EBITDA 1,255.7 6.4% Parent Company Jan.-March 01/00 Operating E

  8. Slide 8: Telefónica de España Group: Cumulative Revenue and EBITDA Growth Evolution

    TELEFONICA DE ESPAÑA GROUP: CUMULATIVE REVENUE AND EBITDA GROWTH EVOLUTION Expected annual evolution at Telefónica de España Peak CUM. YoY REVENUE CHANGE (%) 1Q01/1Q00 CUM. YoY EBITDA 2001/2000 (e) CHANGE (%) 2001 (e) 1Q00/1Q99 2000/1999 2001 WILL EVOLVE ACCORDING TO ESTIMATES • Impact of last liber

  9. Slide 9: Fixed Telephony in Latam

    FIXED TELEPHONY IN LATAM MANAGED LINES IN SERVICE (Mar. 01) 20.026 28% 16% 5% 6% 11.195 EBITDA M ARGIN (%) (1) 0% 64% 4.392 2.726 1.713 55% 53% 50% 50% 51% 42% 42% CTC TASA TDP T elesp Total Lines in service (000) YoY growth EFFICIENCY (LIS/EMPLOYEE) 841 CTC T ASA (2 ) T DP T ELESP 611 551 Jan.-Mar.

  10. Slide 10: Telesp: Working for Brazil 2002

    TELESP: WORKING FOR BRAZIL 2002  Main objective for 2001: achieving regulatory requirements established for 2003 ahead of schedule  Already completed with the review of the quality of the waiting list LINES INSTALLED (‘000) WAITING LIST (‘000) LINES IN SERVICE (‘000) +223.9% -37.5% +27.9% 2,457 11

  11. Slide 11: T.Móviles: Highlights

    T.MOVILES: HIGHLIGHTS TOTAL CUSTOMERS (‘000) Managed % Growth Weighted (*) T.MOVILES ESPAÑA 14,246 38.9% 13,192 LATAM & MOROCCO 11,097 55.5% 5,941 others not managed - - 126 TOTAL 25,344 45.7% 19,134 (*) Weighted customers for the economic interest held by Telefónica Group in each company REVENUES (

  12. Slide 12: T. Móviles España: Managing Growth

    T. MOVILES ESPAÑA: MANAGING GROWTH Active customers (´000) Short Messages (‘000) +39% 14,246 1 ,2 77 10,260 +215% 65% P r e p a id 64% C o n tr a c t 4 05 36% 35% 1Q 00 1Q 01 1 Q 00 1 Q 01 1Q01 1Q00 Annual change Market share 55.9% 58.6% -2.7 p.p. Net Adds market share 51.2% 48.3% 2.9 p.p. Estimated

  13. Slide 13: Mobile Telephony in Latam: Profitable Growth

    MOBILE TELEPHONY IN LATAM: PROFITABLE GROWTH BRAZIL Tele Sudeste C. Celular CRT Tele Leste C. Customers (‘000) 2,601.6 1,542.9 714.4 Annual change 30% 46% 25% Market share 63% 72% 62% EBITDA margin 46.2% 44.6% 43.8% Annual change 10.0 p.p. 9.5 p.p. 19.9 p.p. ARGENTINA, CHILE AND PERU Unifon Startel

  14. Slide 14: Data & Emergia Businesses

    DATA & EMERGIA BUSINESSES Telefónica Data • Telefónica has completed the acquisition of 55.2% MediaWays, which is included on a Euros Mill. 4 0 6 ,4 proforma basis since January 1st for Q1 01. 2 6 1 ,8 • All the segregated Latin-American companies are included in the proforma figures. • New TIC in L

  15. Slide 15: Telefónica Media

    TELEFÓNICA MEDIA January-March 2001 (Euros Mill.) REVENUES EBITDA ENDEMOL 198.6 37.5 ATCO 39.4 (5.6) ONDA CERO 16.0 (3.2) OTHERS 29.7 (18.2) TOTAL 283.7 10.5  Vía Digital: 674,000 susbcribers, 34.7% growth over March 2000  Antena 3, highest ratio of Market share/Audience share (1.35) in Spain  On

  16. Slide 16: Terra-Lycos

    TERRA-LYCOS (Euros Mill.) 1Q01 4Q00 1Q00 %1Q01/1Q00 REVENUES (*) 178 188 111 60% Others 1Q01 Access Spain 4% REVENUE MIX 31% Latam 40% US Media 56% 69% (Euros Mill.) 1Q01 4Q00 3Q00 %1Q01/3Q00 EBITDA margin (*) -43% -54% -71% +28 p.p. 23% average daily page views growth during the last quarter More

  17. Slide 17: TPI-Páginas Amarillas España

    TPI-PAGINAS AMARILLAS ESPAÑA Yellow pages revenues (Euros MM) (*) Internet revenues (Euros MM) 7.5% 119.4% 2 .8 9 .6 1 0 .3 1 .3 J an-M ar 00 J an-M ar 01 J an-M ar 00 J an-M ar 01 Talking pages revenues (Euros MM) Operating Highlights 48.1% 0 .8 Thousands 1Q01 %Change 0 .5 Nº visits 5,391 177.7% Pa

  18. Slide 18: Net Financial Expenses

    NET FINANCIAL EXPENSES (*) Euros in millions Mar01 Mar00 % Change Debt financial expense (594.1) (437.6) 35.8% Other financial expense (13.9) (7.8) 79.4% Financial Income 280.5 105.4 166.3% Net interest (340.0) (327.5) (3.7%) Financial provisions and net forex (160.2) (38.8) 312.4% Net financial res

  19. Slide 19: Currency Risk Management

    CURRENCY RISK MANAGEMENT  Natural hedges, corporate restructurings ASSETS  Operating companies debt restructuring  Efficient internal financing circuit FINANCIAL DEBT  Hedges  Short term impact, recovery of economic growth in medium term OPERATING FLOWS  Management of the environment: rational

  20. Slide 20: Conclusions: Progressing on Management Priorities

    CONCLUSIONS: PROGRESSING ON MANAGEMENT PRIORITIES  CONTINUE IMPROVING RESULTS IN CONSOLIDATED BUSINESSES  Substantial growth on wireline and wireless operating figures  Increased contribution to profitability  T.Latam main contributor to EBITDA in absolute terms  T.Móviles main contributor to E

  21. Slide 21: Forward-looking statements disclaimer

    This presentation to analysts contains statements that constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current e

  22. Slide 22: Telefónica

Telefónica — Q1 2001 Earnings Presentation on 6ix