At&T Latin America — Investor Presentation (January 2001)
24 slides from At&T Latin America's investor presentation, Jan 18, 2001
Slide 1: Patricio Northland, Chairman and CEO
Patricio Northland Chairman and CEO SA Latin America
Slide 2: Safe Harbor Statement
3 ; Safe Harbor Statement The following presentation includes “forward-looking statements” which are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. The statements involve known and unknown risks
Slide 3: Agenda
Detainees Agenda Market opportunity Business strategy 3Q00 financial and operating highlights
Slide 4: Our mission
Our mission "To be the leading next generation facilities based provider of integrated high-bandwidth communications services to businesses in key Latin American markets"
Slide 5: Who is AT&T Latin America?
3 Who is AT&T Latin America? Public Float Ate Other Partners 34% economic 58% economic B% economic (a) 5% voting 94% voting 1% voting Latin America 100 % % % (b) 100 % AT&T. AT&T Le = AT&T Argentina Brazil Chile Colombia Peru (a) Local partners include an affiliate of Promon in Brazil and farmer Key
Slide 6: Board of Directors
Patricio Northland John Petrillo John Haigh Edward Dwyer Timothy Murray Gary Weis Gary Ames David Kleinman Jorge Montoya Board of Directors CEO, AT&T Latin America EVP, Corporate Strategy & Business Development, AT&T President, AT&T International Ventures Treasurer, AT&T. SVP, Business Operations, A
Slide 7: Our business model
ATsT Latin America Our business model Suppliers / = Distributors ae ee oe Linking Branches Business Customers on Wired Buildings www: Internet. © Voice DLDALD Voice IP - Local Worldwide Bundled Services e secured “Golden Plug” Cir Ed Connectivity eGe \ooneert- AGNS,. Ene \. Remote £D : )IE; Corporat
Slide 8: Our customer base
3 Our customer base ® Almost 2,900 data and Internet customers, up over 100% YoY @ More than 25,000 voice customers @ 470 MNC accounts already on the network, up over 100% YTD. ® 20 out of the 50 top US/European-based MNCs are AT&T Latin America's customers today
Slide 9: Agenda: Business strategy
2 Company overview Business strategy 3Q00 financial and operating highlights
Slide 10: Competition and regulatory evolution
Competition and regulatory evolution Stage | Stage Il The future... Today @covermert enopoly Danan @ Uberazation * ATTL estimates that business users represent approximately 60% of Latin America’s total telecam market * Incumbent operators are unable to compete effectively due to inadequate legacy s
Slide 11: Market potential
e-Business Services Data/Internet Network Services Local Voice LD Voice Total Market = Argentina, Brazil, Chile, Colombia, Peru Source: Yankee Group, Pyramid Research, ATTL estimates Market potential Current 2007E 00-07E Market Market CAGR Size Size Growth $0.3Bn $3.7 Bn 43.0% $4.1Bn $10.7 Bn 14.6%
Slide 12: Agenda
Detainees Agenda Company overview Market opportunity 3Q00 financial and operating highlights 12
Slide 13: Business strategy & strengths
Business strategy & strengths Leverage AT&T sponsorship Focus on business customers in major Latin American metropolitan areas Pursue rapid growth through our own network construction and leased facilities as well as selective strategic acquisitions and alliances @ Offer a broad portfolio of advance
Slide 14: Operating in major Latam countries
Operating in major Latam countries © Recently operating upon full market liberalization in Nov 2000 © Datafinternet market to grow 22% CAGR* until 2007 Launched operations on December 1998 728 Datafinternet customers as of 3Q00 © Data/VAS market already liberalized. © Switched voice market deregulat
Slide 15: Our network strategy
Our network strategy + Leverage multi-service packet network with voice as integrated add-on service + Accelerate build-out to maintain first mover advantage + Selectively build Latin America’s most attractive business districts + Take advantage of price erosion to expand long haul capacity + Rapidl
Slide 16: Customer-focused organization
Customer-focused organization Sell Implement Retain Global AccountsiMINC's Reps © Customer Care Managers Business Markets Reps + Technical Support Mars Presale Technical Managers Vertical Industry Specialists, > eD Objectives: + Maximize customer loyalty and market expansion + Utlize technology to I
Slide 17: Agenda
Company overview Market opportunity Business model and strategy
Slide 18: Pro Forma Income Statement
Pro Forma Income Statement AT&T Latin America Corp. Condensed Corsclidated Pra Forma Statements of Operations Highlights (Unaustad and Praiinary) (in thousands oF US dolars) Nine Months Ended September 30, ‘Three Months Ended September 30, zo00 1999 2000 1999 Voice services $ 24318 § vee § 9197 $ 55
Slide 19: AT&T Latin America Corp. Pro Forma Balance Sheet
AT&T Latin America Corp. Condensed Consolidated Balance Sheets. Pro Forma Balance Sheet (Unaudited) (In thousands of US dollars) 9/30/00 Total current assets $ 72,924 Property, plant and equipment, net 235,745 Goodwill and other intangible assets, net 860,932 Total assets 1,169,601 Total current lia
Slide 20: As of September 30, 2000: Selected operating statistics
As of September 30, 2000 Metropolitan ute Klometers Domestic route kiometers Total rout kilometers Total ber tilameters Buildings connected Ports activated Dedicated data and internet customers Employees Selected operating statistics Argentina _Brazil___Ghile Colombia _Pem __Gomporate __Tolal 18 588
Slide 21: Capital Expenditures by Quarter
3 US$ millions $48 $00 $35 Capital Expenditures by Quarter 100 2c00 coo Corporate mPeru Colombia GChile @Brazil Argentina 24
Slide 22: Conclusions
Conclusions Focus on the fastest growing telecom industry segment First mover advantage Next generation end-to-end network Internal growth and selective acquisitions Integrated portfolio of data-centric services Focus on customer care system AT&T relationship Experienced and entrepreneurial manageme
Slide 23: Contacts
Contacts AT&T Latin.A Investor Relations Nancy Anderson (305) 459-6424 www.attla.com
Slide 24: Patricio Northland, Chairman and CEO
Patricio Northland Chairman and CEO SA Latin America
AT&T Latin America — Investor Presentation (January 2001) on 6ix