TIM Day in London. November, 12,2014

Transcription

1 TIM Day in Lndn Nvember, 12,2014

2 TIM s Psitin A SOLID HISTORY OF GROWTH Custmer Base EP (mln custmers) CAGR +16% Grss Revenues (R$ bln) CAGR +12% EBITDA (R$ bln) CAGR +10% Prepaid Leader Smartphne Sales Leader Lng Distance Leader 2 nd in Market Share Overall

3 Challenge in vice grwth in 2009 High Grwth Mbile Penetratin (% ver ppulatin) 53% Surce: Anatel and IBGE Fear t use MOU in 2008 (minutes) 64% 79% 90% DATA THE NEW GROWTH WAVE PCs, Ntebks, Feature Phnes 11% 4%...was similar t the challenge in data grwth nw Handset Sales Share 52% 12% Smartphne Tablet Surce: IDC Data Penetratin (% f data ver ttal revenues in ) % 48% 42% 34% 27% 27% 23% Surce: Glbal Matrix Lw Usage Gal: increase vice usage Incming calls nly device Challenge: deliver the best experience in mbile internet Still a lt f phnes withut data access Wi-Fi nly devices 3

4 INFRASTRUCTURE (R)EVOLUTION Mbile Bradband Update Cities Cvered with MBB prject 81 2Q14 36% 32% Technlgy 2G Infrastructure Investment Mix (as % f capex) 50% YY 12% Innvative Cverage Expansin Small cells in gas statins: agreement with a twer cmpany t install mre than 150 small cells inside Ttem BiSite: sustainable cverage, bringing harmny between envirnment and technlgy 1Q % 30% 3G + 4G 50% +38 p.p. 88% Befre After % f urban ppulatin cvered 9M13 9M14 Imprving Quality and 4G Services (e.g.: SP) Investing Efficiently 900 Mhz rllut accrding t plan (abve 600 sites using the new frequency) Vice Access # Antennas Expanding backhauling 99.0% 97.95% Reductin in drpped call rates and better verall perfrmance 98.36% Higher average thrughput rates Imprvement in indr cverage Increase in data and vice traffics 97.53% Surce: ANATEL app Big Data analysis fr capex allcatin Antenna level return analyses (IRR and payback) 4

5 Adding Value Thrugh Innvatin DRIVEN BY INNOVATION WEEKLY SERVICE PACKAGE Vice + Data + SMS R$ 7 per week SECURITY SERVICES Ensures safety f custmer s devices and infrmatin INTERNET SHARING PLANS Up t 4 devices N additinal charges NEW M2M PLANS New data packages launched fr M2M services TIM Prtect NEW APP FOR LANGUAGE COURSES Games and quizzes help students develping English skills blah COMMUNICATION APP Integrated cmmunicatin (VOIP, IM, SMS) App First ad campaign NEW MUSIC PLATFORM Partnership TIM and Deezer (tp glbal streaming platfrm) Mre than 35 millin music available fr dwnlad Maintaining leadership psitin in the mbile music industry in Brazil PREPAID MOBILE ACCOUNT/ MONEY Partnership: TIM, Mastercard and Caixa Ecnômica Federal Fcus n unbanked ppulatin ( >50% f prepaid base) Data Adptin Smartphne Penetratin Over Custmer Base (%; YY) 25% +20 p.p. 44% Smartphnes Share ver New Sales (%; YY) 67% +10 p.p. 77% New Data Wrld Cntent & Others Web 1,500 Mix f Data Grss Revenues (R$ mln; %YY) 1,578 1, % +72% +80% +29% +33% +39% Data Users (mln users; % YY) % 32 43% f data users ver ttal base SMS %YY grwth 1Q14 2Q14 +20% +22% +23% % ver ttal grss mbile service revenues 25% 27% 29% 5

6 Cre Business Evlutin Mbile Service Net Revenues (% YY) BUSINESS FUNDAMENTALS EBITDA (R$ mln; %YY) 1, % 1,332 Business Generated Business Received (Lcal + LD + VAS + Others) (Incming Vice + SMS) +5% -34% Operating margin imprvement EBITDA Margin (% YY) 24.6% +2.8 p.p. 27.4% Efficient Cst Cntrl 8.8% 2.3% Ttal cst (Δ% YY) 1,007 Net Incme Evlutin (R$ mln; % YY) % YY +7.9% 1, % -7.2% -8.1% 4Q13 1Q14 2Q14 3Q % 348 Intercnnectin Cst (Δ% YY) Bad Debt/Sales (% ver grss revenues) ~0.7% ~0.8% Leased Lines Cst (Δ% YY) 2Q 1Q % +21.6% % stable -1.8% 9M M

7 LIVE TIM: EXECUTING ON OPPORTUNITY Accelerating Operatinal Perfrmance with Supprt f Quality Experience Addressable Husehlds (000 HH) Custmer Base (000 users) Netflix Bradband Ranking (average streaming speed representatin) +55% 1, x Grss Adds (000 users) ARPU (R$; YY%) % % Average Speed f New Sales (mbps) 38.2 Live TIM Net Adds Share (% f SP and RJ market additins) New Line Payback (mnths) % 16% 31% 21-38% 13 Surce: Cmpany Aug/13 Surce: Anatel Aug/14 Surce: Cmpany 7

8 Q3 Cnclusins: A gd balance between bjectives CONCLUSION Strategic Operatinal Financial 32 mln 32% YY 44% +19 p.p. YY MBB in 81 cities EBITDA +6.4% YY Data Users (mln users) Smartphnes (ver ttal base) Business Generated OPEX Cntrl Prepaid leadership Net Incme +11% YY +5% YY R$1.3 billin +49% YY Infrastructure grwth Data + VAS (ex-sms) Quality Perspectives: Mving the plan frward Evlving revenue prfile VOICE SMS MTR DATA DIGITAL SERVICES Renewed Missin/ Purpse/Values T cnnect and take care f every custmer, s everyne can d mre New 3-year plan Data and digital services leadership Infrastructure Custmer base value Custmer experience One TIM initiative TIM Prtagnist Industry leadership Lng term cmmitment 4G license 700MHz Twer sale supprting investment plan 8