Earnings Release • May 13, 2021
Earnings Release
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PHAROL, SGPS S.A. hereby informs on the 2021 first quarter results disclosed by Oi, S.A., as detailed in the company's document attached hereto.
This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and the applicable Brazilian regulations. Statements that are not historical facts, including statements regarding the beliefs and expectations of Oi S.A. – under Judicial Reorganization ("Oi" or "Company"), business strategies, future synergies, cost savings, future costs and future liquidity are forward-looking statements.
The words "anticipates", "intends", "believes", "estimates", "expects", "forecasts", "plans," "aims" and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. There is no guarantee that the expected events, tendencies or expected results will actually occur. Such statements reflect the current views of the Company's management and are subject to a number of risks and uncertainties. These statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, corporate approvals, operational factors and other factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. All forward-looking statements attributable to the Company or its affiliates, or persons acting on their behalf, are expressly qualified in their entirety by the cautionary statements set forth in this notice. Undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made.
Except as required under the Brazilian and U.S. federal securities laws and the rules and regulations of the CVM, the SEC or other regulatory authorities in other applicable jurisdictions, the Company and its affiliates do not have any intention or obligation to update, revise or disclose any changes to any of the forward-looking statements herein in order to reflect current or future events or their developments, changes in assumptions or changes in other factors affecting the forward-looking statements herein. You are advised, however, to consult any further disclosures the Company makes on related subjects in reports and communications that the Company files with the CVM and the SEC.
We continue to accelerate the massive Fiber expansion …
Fiber expansion has been driving the residential turnaround leading to YoY stabilization for the first time in several years.
Oi Solutions has focused on IT solutions, and with the launch of TAHTO, seeks to provide digital relationship solutions for the B2B market. CLOUD CYBER SECURITY MANAGED SERVICES
Consent obtained from 2025 bondholders to implement funding alternatives :
With its national presence expanding rapidly, Oi Fiber has already become the customers favorite in 55 municipalities¹, 14 of which are state capitals.
| to 6p.p. | In the municipalities with Oi Fiber (128 in Q1), in one year, Oi decreased the distance to the leader from 11p.p. |
The current coverage of Oi's Fiber Network exceeds the limits of the São Paulo Capital. |
|
|---|---|---|---|
| Broadband Market Share - | % | ||
| 35.2 | 33.5 | 33.1 | |
| 23.8 | 24.5 | 26.7 | FTTH INFRASTRUCTURE READY - 5.2 THOUSAND |
| 19.1 | 22.5 | 21.7 | KM OF NETWORK |
| 18.4 | 16.1 | 15.1 | HP's in strategic locations, following the success model of other country regions, taking |
| 2.2 | 2.3 | 2.6 | advantage of the network and expanding backbone capillarity |
| 1Q20 | 3Q20 | 1Q21 | Plan of 400k HPs covered in 2021, and potential of 2M for 2022 |
| Oi | Player 3 | Covering the capital and other cities in São | |
| Player 1 Player 2 |
Regional Players | Paulo | |
| Delivering pure fiber to the customer's house through FTTH technology |
|||
| 5 5 5 |
The current coverage of Oi's Fiber Network exceeds the limits of the São Paulo Capital.
SOURCE: ANATEL SCM base with Dec/20 | ¹Only cities with more than 500 Oi Fiber accesses.
IT portfolio continues to grow, with Cloud, Security and Managed Services, seccuring new revenue streams
Managed Services & Security
Oi's MarketPlace, expanding services and solutions to B2C, including expanded ecosystem and carefully curated content
Logistics and Services solution for any business demand all over the country
| Free Digital Wallet focused on B2C, through Whatsapp, |
|
|---|---|
| accelerated by Oi's | |
| customers base | |
Service platform for B2C needs of installation, technical support and repair assistance
6
In preparation for ITS new strategic and operational model, oi will start presenting its revenues in separate views: Continued and Discontinued (UPIS), core and legacy.
1 – Copper Voice and Copper Broadband | 2 – UPI Mobile Assets, UPI Infra Co, UPI Towers, UPI Data Centers and UPI TV Co | 3 – Revenues related to Oi Internet (VAS), Paggo and Serede (third party)
B2B: Corporate revenues impacted by the pandemic, especially with governments and new contracts. SME presents revenue stabilization with fiber. Wholesale Core Revenue is now at Infra Co.
1 – Copper Voice and Copper Broadband
POSTPAID SHARE OF NET ADDS 1Q21 ², %
In 1Q21 the company tied up the lead on postpaid share of net adds, taking advantage of its robust backhaul to offer an innovative unlimited plan
PREPAID REVENUES, R\$ Million
Economic lockdowns to contain the second wave of COVID, along with the end of the government aid and seasonality affected the pre paid dynamics
Company launching Drastic Cost Out 2.0 initiative, to achieve an additional \$1B of annualized savings through the end of 2021. Renewed focus on:
11
Funding activities through asset sales and tight cash control allowed the company to fund its fiber expansion plan, despite cash payments to RJ creditors and slightly higher Capex investments
Four new Solar Energy Plants generating 2,413 MWh and providing energy to 5000 Oi towers
We migrated in the Q1 21, another 34 units to the Free Market. By the end of 2022, we will complete the entire transformation of the energy matrix.
Publication of Oi's Sustainability Report 2020 at the end of May 2021 with a new materiality research
We keep our Reverse Logistic program reconditioning 55 thousand units of FTTH equipment in the Q1 21
Continued professional qualification and training, beware of mental health and health monitoring in the COVID front
Affirmative actions in gender inclusion, definition of goals and KPIs
With Oi Futuro we keep structuring digital actions to amplify our impact in education, social innovation and culture programs focusing in inclusion and diversity
Structuring of the Governance, Risks and Compliance Executive Board
Another important step with the beginning of an GOVERNANCE ESG Commission being structured
Acceptance by 99% of our employees of the new code of ethics and conduct. For Q2 21 we aim to achieve 100%.
New Risk Management Policy approved by the Board of Directors
The company successfully obtained the consent to implement the funding funding CHALLENGE In summary, To build the new Oi, the company has been overcoming different TYPES of execution challenges, AND IS ON TRACK TO A SUCCESSFUL
The success of the accelerated fiber deployment led the residential revenues to reach breakeven in 1Q21, confirming the turnaround.
B2B has been impacted by the economic crisis, but IT strategy is being implemented with new products available, and the segment is rapidly transforming its revenue profile.
The company is working on a drastic cost-cutting program, which is also associated with the completion of the M&A processes.
TRANSFORMATION
The company gathered its creditors for an amendment to the RJ Plan, managing to approve the changes that provided for asset sales, funding alternatives and debt settlement at discount.
The company has already concluded the sale of Towers and Data Centers, executed the judicial competitive process and signed the SPA for Mobile Asset UPI and granted the right to top to BTG in the Infra Co process.
Investor Relations | May 12, 2021
| Earnings Release | May 12, 2021 |
|---|---|
| Conference Call in English |
May 13, 2021 9:00 p.m. (Brasília) 8:00 a.m. (NY) / 1:00 p.m. (UK) Webcast: click here Telephone: US: +1 (844) 204 8942 / +55 (11) 3181-8565 Code: Oi Replay available until May 19, 2021: +55 (11) 2188-0400 Replay code: Oi |
| Conference Call in Portuguese SIMULTANEOU S TRANSLATION |
May 13, 2021 9:00 p.m. (Brasília) 8:00 a.m. (NY) / 1:00 p.m. (UK) Webcast: click here Telephone: +55 (11) 3181-8565 / +1 (844) 204 8942 Code: Oi Replay available until May 19, 2021: +55 (11) 2188-0400 Replay code: Oi |
This report presents the operating and financial performance of Oi S.A. – under Judicial Reorganization ("Oi S.A." or "Oi" or "Company") – and its subsidiaries for the first quarter of 2021.
| em R\$ milhões ou indicado de outra forma | 1T21 | 1T20 | 4T20 | A Ano | A Tri. |
|---|---|---|---|---|---|
| l0i S.A. Consolidado | |||||
| Receita Liquida Total | 4.453 | 4.749 | 4.777 | $-6.2%$ | $-6.8%$ |
| EBITDA de Rotina | 1.139 | 1.533 | 1.491 | $-25.7%$ | $-23.6%$ |
| Margem EBITDA de Rotina [%] | 25.6% | 32.3% | 31.2% | $-6.7 p.p.$ | $-5.6 p.p.$ |
| Lucro (Prejuízo) Líquido atribuído aos acionistas controladores | $-3.504$ | $-6.280$ | 1,798 | $-44.2%$ | n.m. |
| Divida Liquida | 25,172 | 18,131 | 21.797 | 38.8% | 15.5% |
| Caixa Disponível | 3.027 | 6,310 | 4.554 | $-52.0%$ | $-33.5%$ |
| CAPEX | 1,863 | 1.794 | 1.736 | 3.9% | 7.3% |
| BRASIL | |||||
|---|---|---|---|---|---|
| Receita Líquida Total | 4,395 | 4,700 | 4.720 | $-6.5%$ | $-6.9%$ |
| EBITDA de Rotina | 1.128 | 1,481 | 1,460 | $-23.8%$ | $-22.7%$ |
| Margem EBITDA de Rotina [%] | 25.7% | 31.5% | 30.9% | $-5.8 p.p.$ | $-5.3 p.p.$ |
| CAPEX | 1,859 | 1.781 | 1.729 | 4.4% | 7.5% |
| EBITDA de Rotina - CAPEX | $-731$ | $-299$ | $-269$ | 144.1% | 171.2% |
| Trimestre | Composição % | ||||||
|---|---|---|---|---|---|---|---|
| R\$ Milhões | 1T21 | 1T20 | 4T20 | A Ano | A Tri. | 1T21 | 1T20 |
| Receita Liquida Total Consolidada | 4,453 | 4,749 | 4.777 | $-6.2%$ | $-6.8%$ | 100% | 100% |
| Brasil | 4,395 | 4,700 | 4.720 | $-6.5%$ | $-6.9%$ | 98.7% | 99.0% |
| Nova Oi | 2.214 | 2.391 | 2.232 | $-7.4%$ | $-0.8%$ | 49.7% | 50.4% |
| Residencial | 1,311 | 1.310 | 1,310 | 0.0% | 0.0% | 29.4% | 27.6% |
| B 2 B | 880 | 1.055 | 902 | $-16.6%$ | $-2.4%$ | 19.8% | 22.2% |
| Outros servicos | 23 | 26 | 20 | $-12.3%$ | 15.6% | 0.5% | 0.6% |
| Operações Descontinuadas | 2,181 | 2,309 | 2,488 | $-5.5%$ | $-12.3%$ | 49.0% | 48.6% |
| Operações Internacionais | 59 | 49 | 58 | 20.0% | 1.4% | 1.3% | 1.0% |
| Unidades Geradoras de Receitas (UGRs) - Mil | 53,801 | 52,654 | 52,100 | 2.2% | 3.3% | 100% | 100% |
|---|---|---|---|---|---|---|---|
| Nova Oi | 14,091 | 14,668 | 14.254 | $-3.9%$ | $-1.1%$ | 26.2% | 27.9% |
| Residencial | 10,402 | 10.762 | 10.529 | $-3.3%$ | $-1.2%$ | 19.3% | 20.4% |
| B 2 B | 3,546 | 3,748 | 3,572 | $-5.4%$ | $-0.7%$ | 6.6% | 7.1% |
| Telefones Públicos | 144 | 159 | 153 | $-9.6%$ | $-6.4%$ | 0.3% | 0.3% |
| Operações Descontinuadas | 39,709 | 37,986 | 37,846 | 4.5% | 4.9% | 73.8% | 72.1% |
| Móvel | 38,564 | 36,665 | 36,651 | 5.2% | 5.2% | 71.7% | 69.6% |
| TV DTH | 1.146 | 1,321 | .194 | $-13.3%$ | $-4.1%$ | 2.1% | 2.5% |
Consolidated net revenues totaled R\$ 4,453 million in 1Q21 (-6.8% q.o.q. and -6.2% y.o.y.).
Net revenues from Brazilian operations ("Brazil") stood at R\$ 4,395 million in 1Q21 (-6.9% q.o.q. and -6.5% y.o.y.). Net revenues from international operations (Africa and East Timor) totaled R\$ 59 million, in line with 4Q20 and 20.0% higher than in 1Q20.
Total net revenues from continued operations in Brazil amounted to R\$ 2,214 million in 1Q21 (-7.4% y.o.y. and -0.8% q.o.q.). The restrictive measures caused by the worsening of the COVID-19 pandemic had an impact on 1Q21 operations, interrupting the sequence of the last two quarters in which the Company presented sequential revenue growth. This decline was more clearly seen in the B2B segment, mainly as a result of the second wave of the pandemic, which has had a strong impact on the economy and companies in general. Residential revenues remained flat compared to both 4Q20 and 1Q20, anchored by the strong growth rate of Fibra, reflecting Nova Oi's focus in this segment, replacing legacy copper services.
3Q14 Earnings Release Table 3 – Net Revenues and RGUs of the Residential segment (Continued Operations)
| 1021 | 1020 | 4020 | YoY | QoQ | |
|---|---|---|---|---|---|
| Residential | |||||
| Net Revenues [R\$ million] | 1,311 | 1,310 | 1,310 | 0.0% | 0.0% |
| Fiber | 560 | 194 | 480 | 189.1% | 16.6% |
| Copper | 750 | 1.116 | 830 | $-32.8%$ | $-9.6%$ |
| Copper Voice | 509 | 708 | 549 | $-28.1%$ | $-7.3%$ |
| Copper Broadband | 241 | 408 | 280 | $-40.9%$ | $-14.1%$ |
| Revenue Generating Units [RGU] - ['000] | 10.402 | 10.762 | 10,529 | $-3.3%$ | $-1.2%$ |
| Fiber | 4.663 | 1.704 | 3.965 | 173.6% | 17.6% |
| Fixed Broadband | 2,299 | 845 | 1.954 | 172.2% | 17.6% |
| Fixed Line in Service | 2.272 | 792 | 1.923 | 186.9% | 18.1% |
| IPTV | 92 | 67 | 88 | 36.3% | 4.1% |
| Copper | 5.739 | 9,058 | 6,563 | $-36.6%$ | $-12.6%$ |
| Fixed Line in Service | 3,870 | 5,887 | 4.425 | $-34.3%$ | $-12.5%$ |
| Fixed Broadband | 1,869 | 3,171 | 2,139 | $-41.1%$ | $-12.6%$ |
| FTTH - Homes Connected [HC's] | 2.339 | 889 | 1.996 | 163.1% | 17.2% |
Net revenues from continued operations in the Residential segment totaled R\$ 1,311 million in 1Q21. Compared to 1Q20, after a long period of successive declines, the company reached stability, moving towards confirming the segment's turnaround soon as a result of the successful execution of the strategy of strong expansion of Fiber services. Compared to the previous quarter, 1Q21 revenue was also stable, with Fiber revenues once again offsetting the decline in copper revenues (fixed voice and broadband). Fiber revenues grew R\$ 80 million in 1Q21, while copper revenues dropped by the same amount. Fiber revenues accounted for 42.7% of total Residential revenues.
Oi closed 1Q21 with 10,402 thousand RGUs in the Residential segment (-3.3% y.o.y. and -1.2% q.o.q.). Fiber RGUs showed substantial growth (+173.6% y.o.y. and +17.6% q.o.q.).
The Company continued to record strong growth in FTTH network and accesses in 1Q21, closing the quarter with 10.5 million homes passed with fiber (HPs), having added 1.4 million HPs to its base in the last three months, averaging over 482 thousand HPs per month in 1Q21.
In addition to base and revenue growth, the Company has shown a significant increase in take-up rate. In 1Q21, FTTH net adds came to 367 thousand customers (343 thousand of which in the Residential segment), averaging 122 thousand new customers per month. Oi closed 1Q21 with around 2.5 million Homes Connected (HCs) to fiber (2.3 million of which in the Residential segment) and a take-up rate of 23.5%, higher than the target set out in the 2019 strategic plan for the end of 2021.
The Company continues to constantly monitor the evolution of fiber investments and continues to expand its installation, support, sales and marketing initiatives. The results can be seen in the take-up rates by HP cohort. Vintages with more than one year of installation already reach 25% take up. The 2019 harvests reached an
3Q14 Earnings Release average occupancy rate of 31.4% at the end of 1Q21, with the harvest of June this year reaching 34.7%. The 2020 harvests continue to show a rapid evolution in the occupancy rate and have already reached 21.8% of average occupancy at the end of 1Q21. The most recent harvests continue to show an improvement in results due to the learning curve and a greater granularity in the analysis of viable HPs.
The Company constantly monitors the progress of investments in fiber and has continued to expand its installation, support, sales and marketing initiatives. The results can be seen in the take-up rates by HP cohort. The cohorts with more than one year of installation already reach 25% take-up rate. The cohorts from 2019 reached an average take-up rate of 31.4% at the end of 1Q21, with the June cohorts from this year reaching 34.7%. The take-up rate of the cohorts from 2020 continues to increase rapidly, reaching 21.8% of average take-up rate at the end of 1Q21. The results of the more recent cohorts tend to improve as the learning curve progresses, also supported by a more granular analysis of viable HP.
Fiber ARPU was R\$ 87 in 1Q21, up 2.4% over R\$ 85 in 4Q20. The sales strategy continued to obtain impressive results: Fiber already accounted for 55.2% of all residential Broadband customers in 1Q21, up from approximately 47.7% in 4Q20 and 21% in 1Q20.
Fiber revenues reached R\$ 592 million in 1Q21, of which R\$ 560 million from residential customers and R\$ 32 million from companies (B2B). Fiver revenues grew 188.9% year on year, with an increase of 189.1% in the residential base and 186.2% in the B2B base. Compared to 4Q20, Fiber revenues grew R\$ 86 million, or 16.9%, with an increase of R\$ 80 million, or 16.6%, in the residential base.
Fiber revenues in 1Q21 already represent 42.7% of the total residential revenues, compared to 14.8% of the total in 1Q20, driving the turnaround of residential revenues. As a result, Fiber has already reversed the structural downward trend in residential revenue (due to legacy services) and the segment is now on track to start presenting sustainable annual growth.
The exploration of FTTH opportunities is already a reality, and the Company joined the São Paulo state market this quarter. The Company has 5.2 thousand kilometers of fiber network in the state, and the investment plan intends to reach 400 thousand HPs in 2021 and 2.0 million HPs in 2022.
Oi closed 1Q21 with 3,870 thousand copper fixed voice customers in the Residential segment (-34.3% y.o.y. and -12.5% q.o.q.). Oi ended 1Q21 with 1,869 thousand copper broadband RGUs (-41.1% y.o.y. and -12.6% q.o.q.).
Demand for copper services continued to decline, as these services have been replaced by mobile services and more advanced technologies in residential services, with lower latency and greater reliability, such as Fiber broadband.
In addition to the decline in demand for legacy products, the Company continues to reduce its commercial focus on these services and accelerating the replacement of copper with fiber. Commercial and financial efforts are geared toward accelerating the FTTH project, maximizing value creation for the Company.
3Q14 Earnings Release Table 4 – Net Revenues and RGUs of the B2B segment (Continued Operations)
| 1021 | 1020 | 4020 | YoY | QoQ | |
|---|---|---|---|---|---|
| B2B | |||||
| Net Revenues [R\$ million] | 880 | 1.055 | 902 | $-16.6%$ | $-2.4%$ |
| Corporate | 588 | 695 | 593 | $-15.5%$ | $-1.0%$ |
| ıτ | 89 | 108 | 76 | $-17.7%$ | 16.4% |
| Data | 289 | 348 | 305 | $-17.1%$ | $-5.4%$ |
| Other | 210 | 239 | 212 | $-12.2%$ | $-0.8%$ |
| Small Enterprises | 204 | 221 | 204 | $-7.6%$ | 0.3% |
| Fiber | 31 | 11 | 26 | 183.8% | 22.5% |
| Other | 173 | 210 | 178 | $-17.7%$ | $-2.9%$ |
| Wholesale Legacy | 88 | 138 | 105 | $-36.3%$ | $-15.9%$ |
| Revenue Generating Units [RGU] - ['000] | 3.546 | 3.748 | 3.572 | $-5.4%$ | $-0.7%$ |
| Fiber | 230 | 93 | 187 | 146.3% | 23.3% |
| Copper Voice | 3.010 | 3.236 | 3.053 | $-7.0%$ | $-1.4%$ |
| Copper Broadband | 306 | 419 | 333 | $-27.0%$ | $-8.0%$ |
Net revenues from continued operations in the B2B segment totaled R\$ 880 million in 1Q21 (-16.6% y.o.y. and - 2.4% q.o.q.).
The Company closed 1Q21 with 3,546 thousand RGUs in the segment, declining 5.4% from 1Q20 and in line with 4Q20.
With the launch of the new brand Oi Soluções for the Corporate segment in December 2019, Oi positioned itself as an integrator and a provider of digital solutions for Telecommunications and IT (Information Technology) with customized and consulting services, offering a comprehensive portfolio of ICT (Information and Communication Technology) solutions.
Corporate segment revenues have been greatly impacted by the worsening economic scenario in the country, as a result of the restrictions imposed by the COVID-19 pandemic. In 1Q21, this deterioration in revenue was accentuated by the second wave of COVID-19. Corporate Data and Copper revenues are linked to long-term contracts, and for those contracts that expired during this quarter, some companies and governments have requested price reductions, or even the cancellation of services provided. The IT revenues, which are the company's focus for the segment's turnaround, were also impacted because it is natural that customers are waiting for a recovery in the economy to return to invest in telecom projects.
IT revenues from continued operations totaled R\$ 89 million (+16.7% q.o.q. and -17.7% y.o.y.). Data revenues totaled R\$ 289 million in the quarter (-5.4% q.o.q. and -17.1% y.o.y.). Legacy copper revenues (R\$210 million) continued to drop, falling 0.9% from 4Q20 and 12.3% from 1Q20. Net revenues from continued operations in the Corporate segment totaled R\$ 588 million in 1Q21 (-1.0% q.o.q. and -15.5% y.o.y.).
3Q14 Earnings Release For the Small Enterprises segment, the Company has been adopting the same strategy used in the B2C segment, given their market similarities. In 3Q20, it launched the Oi Seu Negócio product, focused on fiber as the network solution for small enterprises. Oi continues to market regional offerings and intensify its sales initiatives together with the FTTH offer. Revenues totaled R\$ 204 million in 1Q21, in line with the previous quarter and down 7.6% from 1Q20, as they were still very exposed to revenues from legacy services (84.6% of the total for this group).
After approval of the Judicial Reorganization Plan in 3Q20, the Wholesale segment is already in the transition phase of the structural separation process. As result, part of its revenue that will be integrate in Infra Co in the future has been allocated to the discontinued operations results. Net revenues from continued operations in the Wholesale segment, which refers to revenues from copper infrastructure that will remain at Nova Oi, totaled R\$ 88 million in 1Q21 (-36.3% y.o.y. and -15.9% q.o.q.). The year-on-year decline of R\$ 58.5 million (-53.6%) in the EILD (industrial exploration of dedicated lines) line was due to the recognition of R\$ 43.5 million in revenues from the agreement with TIM for the Ran Sharing of 300 sites, combined with the decline related to the migration of customers to speeds faster than those regulated by ANATEL.
Since the last quarter of 2020, the Company started to disclose the UPIs provided in the Amendment to the JRP as discontinued operations, as they represent assets available for sale. Accordingly, in the previous sections, in terms of revenue, we sought to provide more details about the continued portion of the revenue that continues in the Company (Nova Oi). However, in order to facilitate the analysis of the market, in this section we are providing as supplementary information an overview of the Personal Mobility segment, which has now been included in the total revenue from discontinued operations.
Net revenue from Personal Mobility totaled R \$ 1,540 million in 1Q21, (-6.3% y.o.y. and -7.8% q.o.q.). This decline occurred mainly in prepaid, strongly impacted by government measures to contain the second wave of COVID-19, by the end of government financial assistance, in addition to seasonal impacts that affected the dynamics of this segment.
In postpaid, the Company was the market share leader in new additions in the quarter, with a 35% share, increasing its customer base to 11,918 thousand, an annual growth of 21.8%. Postpaid revenue showed a slight decrease of 1.1% in the annual comparison and 2.0% in relation to 4Q20.
Customer revenue (which excludes interconnection and handsets) from the Personal Mobility segment totaled R\$ 1,468 million in 1Q21 (-6.1% y.o.y. and -7.1% q.o.q.).
In 1Q21, revenue from network usage totaled R\$ 60 million (+4.6% y.o.y. and -6.1% q.o.q.).
Oi closed 1Q21 with 35,421 thousand UGRs in Personal Mobility, an increase of 4.3% from 1Q20 or 1,475 thousand net additions, of which 2,135 thousand were postpaid additions and 660 disconnections in prepaid. The number of additions increased 5.6% from 4Q20, with an increase of 2.3% in the prepaid segment and an increase of 12.8% in the postpaid segment.
3Q14 Earnings Release Oi's mobile customer base (Personal Mobility + B2B) totaled 38,564 thousand RGUs, 3,143 thousand of which in the B2B segment.
| Table 5 – Breakdown of Routine Operating Costs and Expenses | ||
|---|---|---|
| ------------------------------------------------------------- | -- | -- |
| R\$ million | 1021 | 1020 | 4020 | YoY | QoQ |
|---|---|---|---|---|---|
| Routine Operating Costs and Expenses | |||||
| Brazil | 3.266 | 3.218 | 3.260 | 1.5% | 0.2% |
| Personnel | 580 | 597 | 679 | $-2.9%$ | $-14.6%$ |
| Interconnection | 96 | 111 | 120 | $-13.3%$ | $-20.1%$ |
| Third-Party Services | 1,326 | 1,414 | 1,356 | $-6.2%$ | $-2.2%$ |
| Network Maintenance Service | 206 | 234 | 220 | $-12.2%$ | $-6.4%$ |
| Handset Costs/Other [COGS] | 17 | 21 | 37 | $-19.4%$ | $-54.8%$ |
| Marketing | 102 | 70 | 122 | 44.5% | $-16.7%$ |
| Rent and Insurance | 647 | 581 | 589 | 11.4% | 10.0% |
| Provision for Contingencies | 48 | 25 | 12 | 93.6% | 304.7% |
| Provision for Bad Debt | 70 | 139 | 62 | $-49.2%$ | 14.4% |
| Taxes and Other Expenses [Revenues] | 174 | 27 | 64 | 538.5% | 173.4% |
| International Operations | 48 | -3 | 26 | $-1975.8%$ | 82.7% |
| Routine OPEX | 3.314 | 3.216 | 3.286 | 3.1% | 0.9% |
Consolidated routine opex, including international operations, totaled R\$ 3,314 million in 1Q21, virtually in line with 4Q20 and 3.1% higher than in 1Q20.
Routine opex from Brazilian operations amounted to R\$ 3,266 million in 1Q21, in line with 4Q20 and 1.5% higher than in 1Q20.
As part of its transformation strategic plan, Oi continues to work on fronts related to cost reductions, simplification of operations, efficiency and digital transformation, preparing the Company to be lighter, more agile and focused on the customer's experience after this operational transition phase.
All of these initiatives were reflected in cost efficiency in the main lines that impact the Company's operation, such as Third Party Services and Network Maintenance Services, for example. On the other hand, this reduction was offset by cost increases related to efforts to commercial expansion, especially Fiber and Postpaid, in addition to seasonal inflation and FX variations on rental contracts, particularly infrastructure.
3Q14 Earnings Release Personnel expenses totaled R\$ 580 million in 1Q21 (-2.9% y.o.y. and -14.6% q.o.q.). The sequential increase was mainly due to a decline in the provision for variable compensation linked to the achievement of operational, financial and quality goals, which were more concentrated in the second half of the year in 2020.
Interconnection costs in Brazilian operations amounted to R\$ 96 million in 4Q20 (-13.3% y.o.y. and -20.1% q.o.q.). The sequential decline was mainly due to payment agreements with other operators in 4Q20, while the year-on-year reduction was driven by lower international roaming costs, in addition to the aforementioned reasons.
Costs and expenses related to third-party services in Brazilian operations totaled R\$ 1,326 million in 1Q21 (-6.2% y.o.y. and -2.2% q.o.q.). The Company remains focused on cost reduction initiatives through automation and digitalization, with a direct impact on the Customer Relations and Billing lines, as well as energy efficiency initiatives through the renewable energy matrix. In addition, contract renegotiations conducted at the beginning of the year contributed to reducing these costs and expenses both year on year and quarter and quarter.
Network maintenance service costs and expenses totaled R\$ 206 million in 1Q21 (-12.2% y.o.y. and -6.4% q.o.q.). This reduction in network maintenance service costs and expenses was the result of our continuous efforts to increase efficiency in field operations and digitize processes and customer service. Contractual renegotiations with some suppliers at the beginning of 2021 also played an important role in reducing plant maintenance costs.
Handset costs in Brazilian operations totaled R\$ 17 million in 1Q21 (-19.4% y.o.y. and -54.8% q.o.q.). The decline was mainly due to a reduction in sales volume of handsets.
Marketing expenses stood at R\$ 102 million in 1Q21, increasing 44.5% year on year, mainly due to the Fiber campaigns, and dropping 16.7% quarter on quarter, mostly driven by the BlackFriday Fiber/Postpaid campaign in 4Q20.
Rent and insurance expenses in Brazilian operations stood at R\$ 647 million in 1Q21 (+11.4% y.o.y. and +10.0% q.o.q.). This upturn was chiefly due to a contractual increase in tower and equipment rental fees. In addition to the aforementioned reasons, the increased rental capacity of EILD and FX variation on Globenet expenses also had a negative impact on rent expenses this quarter.
3Q14 Earnings Release The provision for contingencies in Brazilian operations came to R\$ 48 million in 1Q21 (+93.6% y.o.y. and +304.7% q.o.q.). The increase was mainly due to an upturn in the number of new lawsuits, especially in tax sphere.
The provision for bad debt totaled R\$ 70 million in 1Q21 (-49.2% y.o.y. and +14.4% q.o.q.). The year-on-year drop was concentrated in the retail segment, due to an improvement in collection efforts and a constant decline in delinquency across all products, thanks to continuous improvements in sales and credit analysis processes. The quarter-on-quarter was mainly due to seasonal trends, since delinquency tends to increase at the end of the year.
Taxes and other expenses totaled R\$ 174 million in 1Q21, increasing 538.5% over 1Q20 and 173.4% over 4Q20. Part of this decline was due to the higher provision of Fistel activation fee, due to the expansion of the mobile customer base.
| 1021 | 1020 | 4020 | YoY | QoQ | |
|---|---|---|---|---|---|
| 0i S.A. | |||||
| Routine EBITDA [R\$ million] | 1.139 | 1.533 | 1.491 | $-25.7%$ | $-23.6%$ |
| Brazil | 1.128 | 1.481 | 1.460 | $-23.8%$ | $-22.7%$ |
| International Operations | 11 | 52 | 32 | 78.7% | 65.5% |
| Routine EBITDA Margin [%] | 25.6% | 32.3% | 31.2% | $-6.7 p.p.$ | $-5.6 p.p.$ |
| Brazil | 25.7% | 31.5% | 30.9% | $-5.8 p.p.$ | $-5.3 p.p.$ |
| International Operations | 18.7% | 105.2% | 54.9% | $-86.5 p.p.$ | $-36.2 p.p.$ |
| Non-routine Items [R\$ million] | 1.231 | 367 | 175 | n.m. | n.m. |
| EBITDA [R\$ million] | 2.370 | 1,899 | 1.666 | 24.8% | 42.3% |
| Brazil | 2,359 | 1,566 | 1.634 | 50.6% | 44.4% |
| International Operations | 11 | 333 | 32 | $-96.7%$ | $-65.5%$ |
| EBITDA Margin [%] | 53.2% | 40.0% | 34.9% | 13.2 p.p. | 18.3 p.p. |
Consolidated routine EBITDA totaled R\$ 1,139 million in 1Q21 (-25.7% y.o.y. and -23.6% q.o.q.). This decline is explained almost entirely by the reduction in revenue, mainly as a result of the second wave of the pandemic, especially in the prepaid mobile segment, which is part of the revenues from discontinued operations, and in the Corporate segment.
Routine EBITDA from Brazilian operations amounted to R\$ 1,128 million in 1Q21 (-23.8% y.o.y. and -22.7% q.o.q.). The routine EBITDA margin from Brazilian operations was 25.7%, dropping 5.8 p.p. from 1Q21 and 5.3 p.p. from 4Q20.
Routine EBITDA from international operations (Africa and East Timor) came to R\$ 11 million in 1Q21, versus R\$ 52 million in 1Q20 and R\$ 32 million in 4Q20.
In 1Q21, non-routine items mainly referred to: (i) a gain of R\$ 1,028 million from the sale of the Tower UPI; (ii) a gain of R\$ 246 million from the sale of the Data Center UPI; (iii) a gain of R\$ 20 million from the sale of properties.
| Table 7 – Capex | |||
|---|---|---|---|
(1) Includes Fiber + Wholesale.
The Company's consolidated capex, including international operations, totaled R\$ 1,863 million in 1Q21 (+3.9% y.o.y. and +6.9% q.o.q.). Capex in Brazilian operations amounted to R\$ 1,859 million in 1Q21 (+4.4% y.o.y. and +7.5%% q.o.q.).
A breakdown of investments by product continues to underline Oi's focus on its transformation plan in order to massify the FTTH network in the country, bringing high-speed broadband to the customers' homes. Investments in Fiber totaled R\$ 1,326 million in 1Q21 (+23.6% y.o.y. and +15.3% q.o.q.). It should be noted that the focus on Fiber investments in the last quarters has already shown results above expectations, being directly responsible for the accelerated operational turnaround process that we are seeing in the residential segment.
| R\$ million | 1021 | 1020 | 4020 | YoY | QoQ |
|---|---|---|---|---|---|
| 01 S.A. | |||||
| Routine EBITDA | 1,139 | 1,533 | 1.491 | $-25.7%$ | $-23.6%$ |
| Capex | 1,863 | 1.794 | 1,736 | 3.9% | 7.3% |
| Routine Operational Cash Flow [EBITDA - Capex] |
$-724$ | $-261$ | $-245$ | 177.2% | 195.7% |
| R\$ million | 1021 | 1020 | 4020 | YoY | QoQ |
|---|---|---|---|---|---|
| 0i S.A. | |||||
| Routine EBITDA | 1,128 | 1.481 | 1.460 | $-23.8%$ | $-22.7%$ |
| Capex | 1,859 | 1,781 | 1,729 | 4.4% | 7.5% |
| Routine Operational Cash Flow [EBITDA - Capex) |
$-731$ | $-299$ | $-269$ | 144.1% | 171.2% |
Consolidated routine operational cash flow (routine EBITDA minus capex) was negative R\$ 724 million in 1Q21, while routine operational cash flow from Brazilian operations was negative R\$ 731 million. This result is on schedule and reflects the continuity of the FTTH expansion project, which requires heavy investments to ensure the implementation of the Company's transformation plan.
| R\$ Milhões | 1T21 | 1T20 | 4T20 | A Ano | A Tri. |
|---|---|---|---|---|---|
| Depreciação e Amortização | |||||
| Total | 1,881 | 1.711 | 1.762 | 9.9% | 6.8% |
Depreciation and amortization expenses totaled R\$ 1,881 million in 1Q21 (+9.9% y.o.y. and +6.8% q.o.q.).
3Q14 Earnings Release Table 11 – Financial Result (Oi S.A. Consolidated)
| R\$ million | 1021 | 1020 | 4020 |
|---|---|---|---|
| Oi S.A. Consolidated | |||
| Net Interest (on fin. investments and loans and financing) | $-564$ | -492 | -473 |
| Amortization of fair value adjustment | $-476$ | $-578$ | $-113$ |
| Net FX Result (on fin. investments and loans and financing) | $-1,375$ | $-2.657$ | 1,173 |
| Other Financial Income / Expenses | $-1,530$ | $-2.749$ | $-2,161$ |
| Net Financial Income [Expenses] | $-3.945$ | $-6.476$ | $-1,574$ |
Oi S.A. recorded a consolidated net financial expense of R\$ 3,945 million in 1Q21, versus a net financial expense of R\$ 1,574 million in 4Q20 and R\$ 6,476 million in 1Q20.
In 1Q21, the increase in financial expenses was mainly due to the negative impact of the depreciation of the real in 1Q21, versus the appreciation of the real in 4Q20. The "Net FX Result" line was a financial expense in the quarter, due to the 9.6% depreciation of the real against the U.S. dollar in 1Q21, versus a 7.9% appreciation in the previous quarter. The "Amortization of Fair Value Adjustment" line was also impacted by the currency depreciation in the quarter. Meanwhile, the "Net Interest" item rose due to higher interest accrued on debt in foreign currency, as a result of the increased depreciation of the real, and lower financial income from cash invested in local banks compared to the previous quarter. On the other hand, the "Other Financial Income/Expenses" line showed a decrease in expenses, due to lower monetary restatement of contingencies, combined with a decline in the recognition of present value adjustment of suppliers, offsetting the negative impact of the FX variation on onerous liabilities (contracts for data transmission via submarine cables and satellites) in the quarter.
In the year-on-year comparison, on the other hand, the consolidated net financial expense decreased, due to the 28.9% depreciation of the real against the US dollar in 1Q20 (vs. depreciation of 9.6% in 1Q21), which led to higher financial expenses under "Net FX Result" and "Amortization of Fair Value Adjustment". The "Other Financial Income/Expenses" line also showed a decrease in financial expenses in 1Q21, mainly due to the lower impact of FX variation on onerous liabilities, totaling R\$ 685 million in 1Q21 (vs. R\$ 1,670 million in 1Q20). Finally, the "Net Interest" line increased over 4Q20, mostly due to higher interest accrued on debt in foreign currency, in addition to lower financial income on cash investments, as in the sequential comparison.
3Q14 Earnings Release Table 12 – Net Earnings (Loss) (Oi S.A. Consolidated)
| R\$ million | 1021 | 1020 | 4020 | YoY | QoQ |
|---|---|---|---|---|---|
| Net Earnings [Loss] | |||||
| Earnings before interest and taxes (EBIT) | 489 | 188 | $-96$ | n.m. | n.m. |
| Financial Results | $-3.945$ | $-6.476$ | $-1.574$ | n.m. | 150.5% |
| Income Tax and Social Contribution | $-53$ | 34 | 3.468 | n.m. | n.m. |
| Net Income [Loss] from Continuing Operations | $-3.508$ | $-6.254$ | 1.798 | $-43.9%$ | $-295.1%$ |
| Consolidated Net Income [Loss] | $-3.508$ | $-6.254$ | 1.798 | $-43.9%$ | $-295.1%$ |
| attributable to owners of the Company | $-3.504$ | $-6.280$ | 1.798 | $-44.2%$ | $-294.9%$ |
| attributable to non-controlling interests | $-4$ | 26 | 0 | n.m. | $-1217.9%$ |
The Company's operating earnings (loss) before the financial result and taxes (EBIT) came to earnings of R\$ 489 million in 1Q21, versus earnings of R\$ 188 million in 1Q20 and a loss of R\$ 96 million in 4Q20. The Company recorded a net financial expense of R\$ 3,945 million and an expense of R\$ 53 million in the Income Tax and Social Contribution line, resulting in a consolidated net loss of R\$ 3,508 million.
| R\$ Million | Mar/21 | Mar/20 | Dec/20 | % Gross Debt |
|---|---|---|---|---|
| Debt | ||||
| Short Term | 4.180 | 179 | 432 | 14.8% |
| Long Term | 24,020 | 24.262 | 25,919 | 85.2% |
| Total Debt | 28,199 | 24,441 | 26,351 | 100.0% |
| Local Currency Exposure | 9.673 | 8,905 | 9,488 | 34.3% |
| Foreign Currency Exposure | 18,534 | 15,536 | 16,856 | 65.7% |
| Swaps | $-7$ | 0 | 7 | 0.0% |
| [-] Cash | $-3.027$ | $-6.310$ | $-4.554$ | $-10.7%$ |
| $[=]$ Net Debt | 25,172 | 18,131 | 21.797 | 89.3% |
Oi S.A. ended with consolidated gross debt of R\$ 28,199 million in 1Q21, R\$ 1,848 million, or 7.0%, more than in the previous quarter. Compared to 1Q20, debt increased 15.4%, or R\$ 3,758 million. The quarter-on-quarter and year-on-year increases were mainly due to the 9.6% depreciation of the real against the dollar in both periods. There were also the usual effects of interest accrual and amortization of the present value adjustment, which have contributed to increasing debt with every passing quarter. It is worth noting that the Company amortized R\$ 607 million in debt (mainly interest) in 1Q21, partially offsetting the increase in debt in the quarter.
3Q14 Earnings Release At the end of 1Q21, debt in foreign currency represented 65.7% of fair value debt. The consolidated average debt duration was 9 years in 1Q21. The Company closed 1Q21 with a consolidated cash position of R\$ 3,027 million, a decrease of 33.5% from 4Q20 and 52.0% from 1Q20. As a result, net debt totaled R\$ 25,172 million in 1Q21, 15.5% higher than in 4Q20. The reduction in the cash position was mainly due to continued high Capex, in addition to the payment of non-recurring obligations, including half-yearly interest on the Qualified Bond, in line with the Judicial Reorganization Plan, as well as the beginning of payment of monthly interest on the Private Debenture issued by Oi Móvel in January 2020. It is worth noting that we received almost all the proceeds from the sale of non-core assets, especially the Tower and Data Center UPIs, in the total amount of R\$1.1 billion in the period.
| RS Million | |||
|---|---|---|---|
| Gross Debt Breakdown - 1021 | Face Value | Fair Value Adjustment |
Fair Value |
| BNDES | 4.332 | 4,332 | |
| Local Banks | 9.404 | [4.084] | 5.321 |
| ECAs | 9.719 | [5,365] | 4.354 |
| Qualified Bonds | 9,590 | [826] | 8.764 |
| Facility "Non Qualified" | 550 | [161] | 389 |
| General Offering | 6.367 | [5,320] | 1.048 |
| Private Debenture [Bridge Loan] | 4.024 | 4,024 | |
| Other | [30] | [30] | |
| Total Gross Debt | 43,955 | [15, 756] | 28,199 |
Table 15 – Cash Position (Brazilian Operations)
| 4020 Cash Position | 4.554 |
|---|---|
| Routine EBITDA | 1.128 |
| IFRS16 | $-467$ |
| Capex | $-1.859$ |
| Working capital | $-364$ |
| Judicial Deposits + Taxes | 56 |
| Financial operations | $-220$ |
| Payments to Creditors JR | $-937$ |
| Non Core | 1.137 |
| 1021 Cash Position | 3.027 |
3Q14 Earnings Release Table 16 – Income Statement (Oi S.A. Consolidated)
| R\$ million | 1021 | 1020 | 4020 |
|---|---|---|---|
| Net Operating Revenues | 4.453 | 4.749 | 4.777 |
| Operating Costs and Expenses | $-2.083$ | $-2.849$ | $-3.111$ |
| Personnel | $-592$ | $-609$ | $-691$ |
| Interconnection | $-97$ | $-112$ | $-121$ |
| Third-Party Services | $-1.341$ | $-1.429$ | $-1.371$ |
| Network Maintenance Service | $-206$ | $-235$ | $-220$ |
| Handset Costs/Other [COGS] | $-19$ | $-23$ | $-41$ |
| Marketing | $-102$ | $-71$ | $-123$ |
| Rent and Insurance | $-651$ | $-584$ | $-592$ |
| Provision for Contingencies | $-48$ | $-22$ | $-12$ |
| Provision for Bad Debt | $-71$ | $-139$ | $-62$ |
| Taxes and Other Revenues [Expenses] | 1.044 | 374 | 121 |
| EBITDA | 2,370 | 1,899 | 1,666 |
| Margin % | 53.2% | 40.0% | 34.9% |
| Depreciation and Amortization | $-1.881$ | $-1.711$ | $-1.762$ |
| EBIT | 489 | 188 | -96 |
| Financial Expenses | $-5.213$ | $-9.861$ | $-925$ |
| Financial Income | 1.269 | 3,385 | $-650$ |
| Net Earnings [Loss] Before Tax and Social Contribution | $-3,455$ | $-6,288$ | $-1,670$ |
| Income Tax and Social Contribution | $-53$ | 34 | 3.468 |
| Consolidated Net Earnings [Loss] | $-3,508$ | $-6,254$ | 1,798 |
| 3Q14 Earnings Release | ||
|---|---|---|
| TOTAL LIABILITIES | 72.245 | 73,840 | 73,947 |
|---|---|---|---|
| Current | 16.674 | 12,050 | 11.523 |
| Suppliers | 4.895 | 4.543 | 4.952 |
| Leases | 1.716 | 1.689 | 1.612 |
| Loans and Financing | 4.187 | 426 | 179 |
| Credit Assignment - Sistel | 197 | 197 | 0 |
| Financial Instruments | $\overline{7}$ | 0 | O |
| Payroll and Related Accruals | 939 | 951 | 815 |
| Provisions | 823 | 782 | 529 |
| Payable Taxes | 55 | 21 | 65 |
| Other Taxes | 1.815 | 1,407 | 1.434 |
| Dividends Payable | 21 | 18 | 6 |
| Liabilities associated to held-for-sale assets | 35 | 42 | 162 |
| Authorizations and Concessions Payable | 102 | 88 | 80 |
| Other Accounts Payable | 1.883 | 1,886 | 1,689 |
| Non-Current Liabilities | 51.294 | 54,020 | 50,826 |
| Suppliers | 3.769 | 5.021 | 3.167 |
| Leases | 6.940 | 6,929 | 7.189 |
| Loans and Financing | 24.020 | 25,919 | 24.262 |
| Credit Assignment - Sistel | 131 | 180 | 0 |
| Payable and Deferred Taxes | 48 | 0 | 0 |
| Other Taxes | 1.320 | 1,328 | 1.221 |
| Contingency Provisions | 5.021 | 5.092 | 4,870 |
| Pension Fund Provision | 728 | 702 | 652 |
| Other Accounts Payable | 9.317 | 8,849 | 9.466 |
| Shareholders' Equity | 4.276 | 7.770 | 11,598 |
3Q14 Earnings Release For accounting purposes, the UPIs set forth in the Amendment to the Judicial Reorganization Plan (Mobile Asset UPI, InfraCo UPI, TVCo UPI and Data Center UPI) were classified as discontinued operations, as they represent assets available for sale. Accordingly, following accounting rules, the Financial Statements presented in the ITR refer only to the Company's continued operations.
To facilitate the analysis of the evolution of the Company's results, in line with the information usually disclosed in previous years, the table below presents a restatement of the consolidated information, which comprises the sum of the results from continued and discontinued operations. For comparison purposes, this Press Release uses the consolidated information in its analysis. For more information, please refer to note 30 of the ITR.
It is worth noting that the result of continued operations considers the businesses that will be sold not to be part of the result of the operations on the reporting dates, as it segregates the result of the UPIs that will be sold, and should not be used as an approximation of the Company's results after the completion of the sale of the UPIs, since this statement is an accounting document and does not consider all the changes that will happen in the Company's operation and business during its ongoing transformation process.
| R\$ million | 1021 | |||
|---|---|---|---|---|
| Consolidated | Discontinued Operations |
Continued Operations |
||
| Net Operating Revenues | 4.453 | 2.215 | 2.238 | |
| Operating Costs and Expenses | $-2.083$ | $-1.160$ | $-923$ | |
| Personnel | $-592$ | $-148$ | $-444$ | |
| Interconnection | $-97$ | $-64$ | $-33$ | |
| Third-Party Services | $-1.341$ | $-643$ | $-697$ | |
| Network Maintenance Service | $-206$ | $-110$ | $-96$ | |
| Handset Costs/Other [COGS] | $-19$ | $-17$ | $-3$ | |
| Marketing | $-102$ | $-13$ | $-89$ | |
| Rent and Insurance | $-651$ | $-283$ | $-368$ | |
| Provision for Contingencies | $-48$ | 0 | $-48$ | |
| Provision for Bad Debt | $-71$ | $-41$ | $-30$ | |
| Taxes and Other Revenues [Expenses] | 1.044 | 158 | 886 | |
| EBITDA | 2.370 | 1.055 | 1.315 | |
| Margin % | 53.2% | 47.6% | 58.8% | |
| Depreciation and Amortization | $-1.881$ | $-709$ | $-1.172$ | |
| EBIT | 489 | 346 | 143 | |
| Financial Income | 1.269 | 6 | 1.263 | |
| Financial Expenses | $-5.213$ | $-378$ | $-4.835$ | |
| Net Earnings [Loss] Before Tax and Social Contribution | $-3.455$ | $-26$ | $-3.429$ | |
| Income Tax and Social Contribution | $-53$ | $-44$ | -9 | |
| Consolidated Net Earnings [Loss] | $-3.508$ | $-70$ | $-3.438$ |
3Q14 Earnings Release On April 12, 2021, Oi published a Material Fact announcing to its shareholders and the market in general that, in the context of the negotiations between the Company, on one side, and Globenet, BTG Pactual Economia Real Fundo de Investimento em Participações Multiestratégia and other investment funds managed or controlled by companies belonging to the BTG Group, on the other side, Oi accepted, on this date, the revised binding proposal submitted jointly by the Proponents for the acquisition of a portion of the interest held by the Company in Brasil Telecom Comunicação Multimídia S.A., the isolated production unit which owns the Company's fiber optic infrastructure assets, pursuant to Clause 5.3.9.4 of the Amendment to the Judicial Reorganization Plan, ratified by the 7th Corporate Court of the Judicial District of the Capital City of the State of Rio de Janeiro. (click here)
3Q14 Earnings Release CVM INSTRUCTION 358, ART. 12: Direct or indirect controlling shareholders and shareholders who elect members of the Board of Directors or the Fiscal Council, and any other individual or legal entity, or group of persons, acting as a group or representing the same interests, that attains a direct or indirect interest representing five percent (5%) or more of a type or class of shares of the capital of a publicly held company, must notify the Securities and Exchange Commission (CVM) and the Company of the fact, in accordance with the above article.
Oi recommends that its shareholders comply with the terms of article 12 of CVM Instruction 358, but it takes no responsibility for the disclosure or otherwise of acquisitions or disposals by third parties of interests corresponding to 5% or more of any type or class of its shares, or of rights over those shares or other securities that it has issued.
| Ações do Capital Social |
Em Tesouraria | Em circulação 1 | |
|---|---|---|---|
| Ordinárias | 5.796.477.760 | 30.595 | 5.796.444.654 |
| Preferenciais | 157.727.241 | 1.811.755 | 155.915.481 |
| Total | 5.954.205.001 | 1.842.350 | 5.952.360.135 |
Shareholding position as of 3/31/2021.
(1) The outstanding shares do not consider treasury shares of the shares held by the Board of Directors and by the Executive Board.
The main tables in this Earnings Release will be available in Excel format in the "Financial Information/Quarterly Reports" section of the Company's website ( www.oi.com.br/ri).
Definitions of the terms used in the Earnings Release are available in the Glossary section of the Company's website: https://www.oi.com.br/ri/conteudo\_pt.asp?idioma=0&conta=28&tipo=44320.
Rio de Janeiro, May 12, 2021. This report includes consolidated financial and operating information for Oi S.A. - Under Judicial Reorganization ("Oi S.A." or "Oi" or "Company") and its direct and indirect subsidiaries as of March 31, 2020. In compliance with CVM instructions, the information is presented in accordance with International Financial Reporting Standards (IFRS). Due to the seasonality of the telecom sector in its quarterly results, the Company will focus on comparing its financial results with the same period of the previous year.
This report contains projections and/or estimates of future events. The projections contained herein were compiled with due care, taking into account the current situation, based on work in progress and the corresponding estimates. The use of terms such as "projects", "estimates", "anticipates", "expects", "plans", "hopes" and so on is intended to indicate possible trends and forward-looking statements, which, clearly, involve uncertainty and risk, so that future results may differ from current expectations. These statements are based on various assumptions and factors, including general economic, market, industry conditions, and operational factors. Any changes to these assumptions or factors may lead to practical results that differ from current expectations. Excessive reliance should not be placed on these statements.
Forward-looking statements relate only to the date on which they are made, and the Company is not obliged to update them as new information or future developments arise. Oi takes no responsibility for transactions carried out or investment decisions taken on the basis of these projections or estimates. The financial information contained herein is unaudited and may therefore differ from the final results.
Marcelo Ferreira +55 (21) 3131-1314 [email protected] Bruno Nader +55 (21) 3131-1629 [email protected]
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