CORPORATE PRESENTATION

Transcription

1 Oi s Network Operating Center Rio de Janeiro - Brazil CORPORATE PRESENTATION June 2015

2 IMPORTANT NOTICE This release contains forward-looking statements, according to the U.S. Private Securities Litigation Reform Act of Statements that are not historical facts, including statements about perspectives and expectations, are forward-looking statements. The words "anticipates", "believes", "estimates", "expects", "forecasts", "intends", "plans", and similar terms, when related to the Company or its management, indicate forward-looking statements. These statements reflect the current view of management and are subject to various risks and uncertainties. These statements are based on various assumptions and factors, including general economic, market, industry, and operational factors. Any changes to these assumptions or factors may lead to practical results different from current expectations. Excessive reliance should not be placed on those statements. Forward-looking statements relate only to the date they are made, and the Company is not obligated to update them as new information or future developments arise. Oi S.A. 1

3 Oi s Strategic Priorities DEVELOPING OI S INFRASTRUCTURE TO RESTORE EBITDA GROWTH, REDUCE OI S DEBT and RETURN TO POSITIVE FCF Confirming guidance for 2015 Returning to positive FCF Routine Brazilian EBITDA R$ bn 1. Efficient CAPEX and better network OCF improvement R$ bn 2. More constructive regulatory and institutional relationships 3. EBITDA growth 4. Asset sales and refinancing Oi S.A. 2

4 Summary ROADSHOW MAIN TOPICS Unique infrastructure Robust and nationwide infrastructure Structural market changes to benefit Oi Operational turnaround EBITDA and OCF on track to deliver 2015 guidance*: Routine EBITDA R$ bn Routine EBITDA CAPEX improvement R$ bn Corporate governance and regulation Rio Forte exchange executed Alternative structure on process of regulatory approval Announcement of Oi s new Board TAC: projects filled with ANATEL Complete the sale of PT Portugal Balance sheet: refinancing and reducing debt Negotiate financial covenant waivers Other asset disposals Reassessing debt structure * Guidance for Brazilian operations. Oi S.A. 3

5 UNIQUE INFRASTRUCTURE Oi S.A. 4

6 Oi s Infrastructure NATIONWIDE OPTICAL AND IP BACKBONE LEVERAGING CAPACITY INCREASE, NETWORK AVAILABILITY AND MULTIPLE PLAY STRATEGY Backbone improvement True convergent player National presence in more than 5k municipalities 330k km of fiber 2.1k municipalities through fiber 70% of population Expansion of Oi s national backbone Better use of optical network - 100G Only operator with nationwide fixed broadband footprint 75% of the population covered SP Oi & Competitors Only Oi 34% 44%* 22% Strategy of fiber SWAP Average fiber growth of 5k km / year Improved network resiliency from 19 to 24 states with 3 ways of transport # of states +26% Current EoY 2015 Improving profitability of the existing copper network ADSL2+: ~50% of customer with more than 10Mbps VDSL: ~13% of customer with more than 20Mbps > 30% of xdsl accesses available BB customers 50% >10Mbps 13% >20Mbps Modernization of IP network Single Edge - IP access (Residential, Mobility and B2B) Current Future -47% 153% Equipments Municipalities Multiproduct through national distribution of HDTV DTH Broader distribution of HD channels and regional HD content Monetizing Oi s copper infrastructure # of HD regional channels Competitors Oi +105% * 3% population with fixed line only Oi S.A. 5

7 Oi s Infrastructure OI S WIRELESS NETWORK QUALITY SIMILAR TO PEERS; improving rapidly: INCREASING MOBILE DATA TRAFFIC, IMPROVING ANATEL S QUALITY METRICS Mobile voice and data traffic Consistent improvement in ANATEL s general and quality complaints QoE Only Voice With Data General Complaints Var. Aug/14 x Jul/12 30% Quality Complaints Var. Aug/14 x Jul/12 26% +86% 3G/4G +132% 1% -24% -25% -23% -21% Player A Player B Player C Player A -41% Player B Player C 2G -41% +43% Proactive migration of customers from 2G to 3G Higher number of 2G customers using data % Jun/13 SMP9 3G Data Drop Dec/13 Jun/14 A B C Feb/15 % Jun/13 SMP8 3G Data Access Dec/13 Jun/14 B C A Feb/15 Source: ANATEL Oi S.A. 6

8 Structural Changes - Mobile Market STRUCTURAL CHANGE IN THE BRAZILIAN WIRELESS MARKET WILL INCREASINGLY HELP OI Declining MTRs erode the on-net scale advantage of large operators MTR Brazil E (R$ Cents) Market Share (MS) impacted by MTR reduction in Europe¹ MS growth MTR 10% 0,14 8% 0,12 6% 4% 0,10 2% 0,08 0% -2% 0,06-4% 0,04-6% -8% 0,02-10% 0, smallest MS players (LHS) 2 biggest MS players (LHS) Average MTR (RHS) Source: European companies websites ¹ the analysis refers to the French, German and Spanish mobility market, comparing the 2 smallest and the 2 biggest market share players. Oi S.A. 7

9 Structural Changes - Wireline Market COMPETITION FOOTPRINT REDUCING PACE OF EXPANSION AND OI IS TAKING ADVANTAGE Correlation (85%) Indexed Oi s wireline losses to stabilize while broadband penetration tend to increase where Oi is well-positioned. Fixed Broadband YoY growth. Brazil except São Paulo state* 5% 4% 6% 5% 14% 2% Pop: 89 mn -1% -3% -5% -3% -4% 50% Pop: 68 mn Mar/14 Jun/14 Sep/14 Dec/14 Feb/ Footprint wireline national competitors (239 cities) Oi s wireline base ,721 cities Zone with national competitors Zone without national competitors Penetration * Oi offers fixed broadband services in its concessionary regions I and II, which does not include the state of São Paulo. Oi S.A. 8

10 OPERATIONAL TURNAROUND Oi S.A. 9

11 Financial Highlights CONSISTENT IMPROVEMENT IN EBITDA, COST REDUCTION & OCF; ON TRACK TO DELIVER 2015 GUIDANCE Financial highlights R$ million q.o.q 1Q y.o.y 4Q y.o.y 3Q y.o.y Brazil Total Net Revenues 6,841 7, % 6, % -2.0% -5.1% Residential 2,491 2, % 2, % -5.1% -4.4% Personal Mobility Customer 1 2,259 1,799 2,433 1, % -0.5% 2,166 1, % +8.8% +1.9% +4.1% -6.4% -2.0% Corporate/SMEs 2,021 2, % 2, % -1.5% -3.1% Routine OPEX 4,912 5, % 5, % +3.2% +0.6% Routine EBITDA 1,928 1, % 1, % -15.5% -20.0% Routine EBITDA Margin 28.2% 23.9% +4.3pp 24.9% +3.3pp -3.8pp -4.3pp Capex 984 1, % 1, % -30.3% -7.1% Routine EBITDA Capex % % +30.8% -66.6% Consolidated Reported EBITDA 2,011 3, % 3, % -12.5% -1.9% 1 - Includes subscriptions, outgoing calls, mobile long distance, roaming, data and value added. Oi S.A. 10

12 Operational Highlights FOCUS ON IMPROVING PROFITABILITY OF THE EXISTING CUSTOMER BASE Operational highlights Thousand RGUs q.o.q 1Q y.o.y 4Q y.o.y 3Q y.o.y Total - Brazil 73,577 74, % 74, % +0.0% +0.2% Residential Fixed Line Broadband Pay TV Residential ARPU 17,148 10,703 5,213 1, ,463 10,957 5,259 1, % -2.3% -0.9% -1.2% +3.1% 17,661 11,556 5, % -7.4% -1.2% +48.8% +5.4% -2.1% -6.8% +0.0% +50.5% +1.8% -5.1% -8.0% -1.8% +13.6% +3.8% Personal Mobility 47,940 48, % 48, % +1.5% +3.5% Prepaid 40,824 41, % 41, % +0.7% +3.2% Postpaid 7,116 7, % 6, % +6.4% +4.9% Corporate/SMEs 7,836 7, % 8, % -4.0% -6.3% Fixed Line 4,754 4, % 5, % -5.5% -6.0% Broadband % % -2.0% -0.1% Mobile 2,470 2, % 2, % -1.3% -8.3% Public Telephones % % -0.4% -0.6% * Considers total mobile revenues (Personal Mobility + Corporate/SMEs), but excludes interconnection revenues. Oi S.A. 11

13 Brazil Revenues SERVICE REVENUES IMPROVED YOY AND QOQ ON THE BACK OF PREPAID RECHARGES AND BETTER MIX OF OFFERS IN THE RESIDENTIAL SEGMENT Personal Mobility % y.o.y Service Revenues Customer Revenues Net Revenues % y.o.y 2Q14 3Q14 Residential % y.o.y Q14 3Q Corporate / SMEs % y.o.y Q14 3Q Q14 3Q14 Oi S.A. 12

14 Personal Mobility (Brazil) IMPROVED DATA MIX AND FOCUS ON PREPAID CONTINUE TO DELIVER RESULTS IN MOBILE Price repositioning and a more strict base cleanup policy Improvement of offers with data packages Simplification of recharge portfolio Increase of smartphone penetration Personal Mobility Customer Revenues R$ million 1,654 1, % 1,646 1,808 1,799 Voice Data Recharges¹ % y.o.y % 28% 2Q14 Smartphone penetration % of total base 21pp 30% 3Q14 34% 38% Mobile ARPU (ex-mtr) 2 Indexed 11.3% 1Q13 2Q13 3Q13 4Q13 2Q14 3Q14 27% 49% ¹ Recharges include the prepaid portion of fixed+prepaid offers (OVT). ² Considers total mobile revenues (Personal Mobility + Corporate/SMEs), but excludes interconnection revenues. Oi S.A. 13

15 Residential (Brazil) THE PROFITABILITY OF OUR RESIDENTIAL CUSTOMER BASE IS IMPROVING IN ALL LINES RGUs Million Residential ARPU R$ 3.1% Fixed Broadband TV ARPU Indexed 1.0% 6.1% 6.5% Fixed Broadband TV Oi S.A. 14

16 Corporate / SMEs (Brazil) B2B FACING CHALLENGES IN THE MACROECONOMIC ENVIRONMENT OF BRAZIL BUT IMPROVING THE QUALITY OF ITS REVENUES Corporate: less voice services dependency Non-voice revenues % of Corporate revenues pp Non-traditional services Indexed. Revenues 20% Cloud ICT DC SMEs: increasing profitability Boosting Franchise Sales Channel Portfolio simplification End of handset subsidies Focus on profitability through data and SVA (Network Security, SmartCloud, Data Network Mgmt, etc) Growth on IT and other non-traditional services to reduce dependency on voice End of handset subsidies Upgrading customer services without the use of additional investments New post-sales structure Oi S.A. 15

17 Operating Costs and Expenses (Brazil) 2015 COST CUTTING PLAN DELIVERING RESULTS. HOWEVER FX, ENERGY AND INFLATION MAY PRESSURE NEXT QUARTERS. Routine operating costs and expenses R$ million Brazilian operations 5, , % ,912 MTR tariffs cut Lease back from assets sold Handset costs Personnel Interconnection (traffic) Third-party services Network maint. Marketing Rent & insurance Others Inflation in the period: +8.1% -4.8% 5, , ,912 MTR tariffs cut Lease back from assets sold Handset costs Personnel Interconnection (traffic) Third-party services Network maint. Marketing Rent & insurance Others Oi S.A. 16

18 Operational Turnaround 2015 Plan delivery based on 4 key pillars and rigorous focus on PROFITABILITY AND CASH Generation continuous generation of new initiatives strengthened operational controls & delivery weekly routines Reduce OPEX and Optimize CAPEX Increase operational productivity Prioritize IT spending Aggressively cut SG&A Prioritize/review spending decisions in weekly committees Improve Working Capital Review key contracts and payment terms Accelerate collections and early payment Optimize stock levels and waste/ redundancies (e.g. handsets) Improve customer profitability Explore price elasticity Simplify product offering Optimize channel mix and commercial costs Optimize HR Simplify organizational structure Reduce Extra Hours and on-call costs Capture synergies with Group Companies 131 initiatives have been fully implemented, in line with the overall 2015 plan Number of initiatives (cumulative) Fully implemented Under implementation % 55% Dec/14 Jan/15 Feb/15 Mar/15 Oi S.A. 17

19 Operational Turnaround INITIATIVES OF THE PLAN ALREADY DELIVERING RESULTS Reduce OPEX and Optimize CAPEX Improve Working Capital Renegotiation of call center costs R$/min Fleet reduction Number of vehicles Reduce mobile commission costs R$ commission / ARPU Optimize stock management Main actions Renegotiation of main contracts % Number of contracts 0% -7% +2% -13% -2% -14% Outsourcing of the management and logistics of handsets 69% 31% 100% Reduction of inventories losses Already negotiated To be negotiated Total Improve customer profitability Broad band Improvement of new entry ARPU ARPU, R$ Focus on products with higher value Weight of low-end packages, % +17% -19% Optimize HR Reduction of overtime and on call Overtime / on call, R$ +13% -37% Reduction of travel and taxi costs Travel costs /taxi, R$ -19% -56% +15% -41% Pay TV * New TV offer launched in 2Q14. Oi S.A. 18

20 EBITDA and OCF (EBITDA CAPEX) IMPROVEMENTS IN EBITDA AND OCF ON TRACK TO DELIVER 2015 GUIDANCE Proforma EBITDA 1 R$ million Brazil Other Proforma CAPEX R$ million Brazil Other 1,827 1,754 1,698 1,836 2, % 1,274 1,427 1,208 1, % 1,470 1,431 1,108 1,056 1, Q14 3Q14 1,710 1,640 1,573 1,689 1,928 Proforma EBITDA 1 minus CAPEX R$ million Brazil Other 2Q14 3Q % 944 2Q14 3Q14 1 Routine Oi S.A. 19

21 Investments CONTRACT RENEGOTIATION, INFRASTRUCTURE OPTIMIZATION, SWAP AND RAN SHARING IMPROVING EFFICIENCY ON CAPITAL ALLOCATION Contractual renegotiations of mobile Core and Access Traffic cost -32% -32% Improved capacity of 3G data network 3G data 2G data +72% Enhancing sharing opportunities 4G Ran Sharing with TIM R$ -45% MoU Mbyte R$ (MM) Expansion of Oi s national backbone R$ / Mbps (TX) Modernization of IP network R$ / Mbps (IP) Strategy of fiber swap R$ / km 2014/2017 (Only Oi) 2014/2017 (RAN Sharing) Potential improvement of 2G/3G coverage through network sharing agreement with TIM Municipalities -40% -25% -83% 2G +28% 3G +56% R$ Former Agreement Current Agreement Former Agreement Current Agreement Own built Swap Current Future Current Future Oi S.A. 20

22 CORPORATE GOVERNANCE AND REGULATION Oi S.A. 21

23 Corporate Governance MAJOR IMPROVEMENT IN CORPORATE GOVERNANCE: ONE SHARE / ONE VOTE, NEW BOARD & BY-LAWS, SHARE REMUNERATION FOR MANAGEMENT Execution of the Exchange of Rio Forte Commercial Papers ANATEL approval on alternative structure Extraordinary Shareholder Meeting to approve the alternative structure CorpCo share registration at SEC Pending approval from SEC to the 2013 PT SGPS 20F generated a need to explore alternative structures Oi s Board of Directors approved alternative structure: Voluntary conversion from preferred to common shares Changes on Oi s By-Laws to incorporate the Novo Mercado requirements Announcement of Oi s new Board New long-term remuneration based on Oi shares to main executives 30-day period for conversion of preferred to common shares Oct Oi S.A. 22

24 Regulation Oi IS ENTERING A NEW CYCLE OF COMPLIANCE AND VALUE CREATION THROUGH TAC 1 Vicious cycle Virtuous cycle 2. Poor quality & performance 3. Customer dissatisfaction & refunds 1. Low investment 1. Conduct adjustment/ in structural quality improvement projects, more OPEX 4. Reduced 2. Potential complaints & reduction of associated existing and legal costs new fines and liabilities 4. ANATEL fines & regulatory liabilities 3. More structural investment / lower OPEX 1 TAC = Term of Adjustment of Conduct Oi S.A. 23

25 Regulation TAC is based on three pillars with different objectives and implementation schedules Concept Lead time Examples of Projects Adjustment of conduct Correction of conduct that originated fines involved in TAC 4 years after signing TAC CRM Click (WFM) Atimo (Asset control system) TAC Indemnity Reimburse customers for outages and customer claims 6 months after signing TAC Reimbursing with fixed voice services Additional projects Additional investments to conduct obligations to reduce fines 4 years after signing TAC (10 years in case of discount of the basic plan signature) Discount of basic plan Oi S.A. 24

26 Regulation TAC PLAN SCHEDULE Proposal deadline Binding Commitment 3/Mar/14 Beginning of TAC negotiations with Anatel 1/Oct/14 Extension of the delivery period of TAC plans 20-Mar a 29-Apr Presentation of TAC proposals to Anatel s technical area Nov/15 TAC signature forecast Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Send proposals to Anatel 29/Apr/15 Follow up with Anatel s technical area Oi S.A. 25

27 Contingencies ALL OF OI S LIABILITIES ARE FULLY DISCLOSED IN FINANCIAL STATEMENTS; CONTINGENCIES ARE OVER-HEDGED BY JUDICIAL DEPOSITS Contingencies provisioned (probable risk of loss) R$ million. 5,135 Judicial deposits R$ million. 13,723 3,450 9,126 1, ,069 2,528 Labor Tax Civil Total Labor Tax Civil Total Contingencies possible (reduced risk of loss) R$ million. 21,435 1,154 23,748 Contingencies with ANATEL Some disputes with ANATEL, which are not under contingencies, will be addressed in ANATEL s TAC1 regulation. 1,160 Labor Tax Civil Total Oi filed the TAC proposals to ANATEL on April 29, TAC = Term of Adjustment of Conduct Oi S.A. 26

28 BALANCE SHEET: REFINANCING AND REDUCING DEBT Oi S.A. 27

29 Balance Sheet STRENGTHENING THE BALANCE SHEET Realize asset value Sale of PT Portugal Africatel available for sale Real estate monetization Reduce financial expenses Potential utilization of post-sale liquidity to reduce financial expenses TAC 1 projects filed with ANATEL Build new relationship with the regulator aiming to reduce current and potential new liabilities through TAC 1 TAC = Term of Adjustment of Conduct Oi S.A. 28

30 Net Debt Variation IMPROVEMENT IN OCF OFFSET BY MACROECONOMIC ENVIRONMENT. NET DEBT HAS RISEN BUT WE ARE COMMITTED TO REDUCE CASH BURN NEAR TERM AND RETURN TO POSITIVE FCF MEDIUM TERM. Change in Net debt R$ million 32,557 30,563 2,011 1, million vs +240 million () , ,080 Net Debt Net debt variation compared to Routine EBITDA Capex WC Judicial deposits + taxes Others Fistel Tax on (maintenance) intragroup dividends Financial results Net Debt Oi S.A. 29

31 Sale of PT Portugal SALE OF PT AND WAIVER FROM DEBENTURE HOLDERS CREATING ROOM FOR FOCUSING ON DELIVERING THE OPERATIONAL TURNAROUND IN 2015 Sale of PT Portugal Approval of covenant waivers Assessment of best usage for sale proceeds Oi receives the proceeds of the transaction from Altice of EUR 7.4 bn, including earnout of EUR 500 mn, debt and usual adjustments; Transaction will significantly increase liquidity Cash inflow will neutralize FX exposure risk Deleverage by payment of Debt takes time; Possibility of using part of the proceeds in the consolidation in Brazil. Corporate approvals in Portugal and Brazil have been concluded European antitrust commission approved transaction on April 20, 2015 Financial closing expected by 2Q15 Covenant waiver approved for 12-month period by debenture holders: 6x after cash-in from PT sale proceeds 4.5x before cash-in Oi S.A. 30

32 Pro-forma Indebtedness Post-sale CONCLUSION OF PT SALE SIGNIFICANTLY IMPROVES OI S FINANCIAL FLEXIBILITY Pro-forma liquidity R$ million Pro-forma gross debt amortization schedule R$ million 33,063 Average debt maturity: 3.8 years 54,771-22,295 19,640 6,602 6,704 15,540 32,477 10,377 2,654 Cash Oi+PT 2,071 BNDES/BNB 200 Revol. in R$ 5,965 Revol. in USD/EUR 1,497 1,036 ECAs in Commercial Cash in USD/EUR papers from PT sale (est.) Liquidity position 6, , onwards Gross debt Oi s foreign currency debt almost fully hedged Cash 1 Net debt PT debt to be hedged with cash in euros est. = estimated 1 Cash balance of Oi+PT as of Mar 31, 2015 plus the estimated cash in from PT sale. Oi S.A. 31

33 Indebtedness Pro-forma gross debt amortization schedule R$ million 6,971 8,578 10,377 6,602 6,704 9, , , onwards Gross debt composition due on Capital market debt (bonds) due on Bonds Debentures Bilateral Capex Financing Others 0.7% 15.2% 11.1% 18.0% 55.0% Maturity Currency Amount (MM) Coupon Mid YTM Mid Price EUR % 2.34% EUR % 3.66% BRL 1, % 16.67% EUR % 3.52% EUR % 3.97% EUR % 3.70% Oi S.A. 32

34 Market Conditions RECENT EURO DENOMINATED ISSUES Issue Date Issuer Volume (EUR MM) Coupon Maturity Credit Rating (Moody s/s&p) LatAm High Yield May 2015 February 2015 Votorantim Group % Cemex % July 2022 March 2023 Baa3 / - - / B+ April 2015 Abengoa Finance % April 2020 B2 / B Europe High Yield April 2015 April 2015 Novalis SAS % Gas Natural Fenosa April 2022 Ba2 / BB % PNC9 Ba1 / BB+ April 2015 EDP Finance % April 2025 Baa3 / BB+ LatAm IG February 2015 April 2015 Mexico 1, % Pertroleos Mexicanos 1, % March 2045 April 2027 A3 / BBB+ A3 / BBB+ Source: Santander Oi S.A. 33

35 Summary WRAP-UP: ROADSHOW MAIN TOPICS Unique infrastructure Robust and nationwide infrastructure Structural market changes to benefit Oi Operational turnaround EBITDA and OCF on track to deliver 2015 guidance*: Routine EBITDA R$ bn Routine EBITDA CAPEX improvement R$ bn Corporate governance and regulation Rio Forte exchange executed Alternative structure on process of regulatory approval Announcement of Oi s new Board TAC: projects filled with ANATEL Complete the sale of PT Portugal Balance sheet: refinancing and reducing debt Negotiate financial covenant waivers Other asset disposals Reassessing debt structure * Guidance for Brazilian operations. Oi S.A. 34

36 BACKUP Oi S.A. 35

37 Brazil DESPITE SHORT-TERM INSTABILITY, BRAZIL HAS A STRONG MARKET AND LOW TELCO PENETRATION. FX DEPRECIATION GENERATING OPPORTUNITIES. Market indices GDP Growth % 7.5 Volatile institutional and economic environment, together with fiscal adjustments, leading to short-term instability Continental dimensions with 202 mn pop. 7 th largest global economy and 1 st in LatAm Relatively low telecom penetration FX depreciation generating opportunities for investments e IPCA (inflation) % Selic % Exchange rate (BRL / USD) R$ Mar/15 closed at R$ 3.21 highest rate of last 12 years e e 1.5 Dec/09 Dec/10 Dec/11 Dec/12 Dec/13 Dec/14 Source: Central Bank, IBGE, World Bank, Economatica Oi S.A. 36

38 Brazil BRAZIL OFFERS OPPORTUNITIES FOR THE TELECOM MARKET A, B and C income classes households million Broadband % households Current low penetration with potential future growth +4pp Pay TV % households +5pp ,2% E Mobile Data* % population +35pp USA Mobile voice % population +5pp 2016E Portugal Argentina Portugal Argentina 165 USA E E USA E Portugal Argentina Portugal Argentina USA *Include WCDMA, HSPA, LTE, TD-SCDMA, CDMA2000 EV-Do and WiMax mobile calls. Source: Yankee Global; OVUM; ANATEL / TELECO; Tendências; Telegeography. Oi S.A. 37

39 Corporate Breakdown Shareholder structure Oi S.A. Common shares % ex-treasury Preferred shares % ex-treasury TOTAL % ex-treasury Portugal Telecom 57,145, % 77,155, % 134,301, % Caravelas FIA 17,136, % 35,917, % 53,053, % Ontario Teachers 8,645, % 33,353, % 41,998, % BNDES 12,249, % 26,531, % 38,780, % Telemar Participações 29,054, % 1,828, % 30,883, % Bratel Brasil 3,636, % 21,566, % 25,203, % Previ 3,582, % 4,126, % 7,709, % AG Telecom Part ,970, % 6,970, % LF Tel - - 6,970, % 6,970, % Petros 785, % 1,647, % 2,433, % Others 98,059, % 254,098, % 352,157, % TOTAL (ex-treasury) 230,295, % 470,166, % 700,461, % Treasury 55,859, ,150, ,010,490 TOTAL 286,155, ,316, ,472,010 Oi S.A. 38

40 CORPORATE PRESENTATION june 2015