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Telefonica S.A. Investor Presentation 2011

Apr 13, 2011

1889_rns_2011-04-13_bbdabac7-2c93-49eb-9cde-9c647054af5b.pdf

Investor Presentation

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terra

TERRA

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Investor

Conference

London, 13 - 14 April 2011

FERNANDO MADEIRA

CEO


Disclaimer

This presentation contains statements that constitute forward-looking statements about the Company, within the general meaning of the term and within the meaning of applicable securities laws, including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations. These statements appear in a number of places in this document and include statements regarding our intent, belief or current expectations regarding our customer base, estimates regarding future growth in our different business lines and our global business, market share, financial results and other aspects of our activity and situation relating to the Company. The forward-looking statements in this document can be identified, in some instances, by the use of words such as "expects", "anticipates", "intends", "believes", and similar language or the negative thereof or by the forward-looking nature of discussions of strategy, plans or intentions.

Such forward-looking statements, by their nature, are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements as a result of various factors. These risks and uncertainties include those discussed or identified in the documents filed by Telefónica with the relevant Securities Markets Regulators, and in particular, with the Spanish Securities Market Regulator.

Except as required by applicable law, Telefónica undertakes no obligation to release publicly the results of any revisions to these forward looking statements which may be made to reflect events and circumstances after the date of this presentations, including, without limitation, changes in Telefónica's business or acquisition strategy or to reflect the occurrence of unanticipated events.

Neither this presentation nor any of the information contained herein constitutes an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, or any advice or recommendation with respect to such securities.

Finally, be advised that this document may contain summarized information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information, including if it is necessary, any fuller disclosure document published by Telefónica. Furthermore, Telefónica may present financial information herein that is not prepared in accordance with IFRS. This non-GAAP financial information should be considered in addition to, but not as a substitute for, financial information prepared in accordance with IFRS. Telefónica has included such non-GAAP financial information because Telefónica's management uses such financial information as part of its internal reporting and planning process and to evaluate Telefónica's performance. Accordingly, Telefónica believes that investors may find such information useful. However, such non-GAAP financial information is not prepared in accordance with IFRS or any other generally accepted accounting principles, and such non-GAAP financial information, as defined and calculated by us, may be different from similarly-titled financial information used by other companies. Investors are cautioned not to place undue reliance on such non-GAAP financial information.


220 MILLION

INTERNET USERS IN LATAM


DIGITAL LATINO

96%
ACCESS INTERNET DAILY

86%
MORE THAN ONCE A DAY


ONLINE ACTIVITY - BRAZIL

BRAZILIANS SURF

41

HOURS MONTHLY

86 %

ACCESS

SOCIAL NETWORKS

82%

WATCH

VIDEO ONLINE

60 %

ACCESS TERRA

5h20

DOING SOCIAL ACTIVITY

11h35

WATCHING AND LISTENING

VIDEO/MUSIC

7h07

READING NEWS


DIGITAL LATINO TRENDS

  1. SOCIAL
  2. LIVE
  3. VIDEO
  4. MUSIC

67% EXPRESS OPINION
59% TAKE CARE ABOUT SOMEONELSE'S OPINION
86% ARE ACTIVE SOCIAL NETWORKS USERS

FOLLOW LIVE ANY SINGLE EVENT
MULTISCREEN, ANYTIME, ANYWHERE
LIVE VIDEO IS A KILLER CONTENT ON INTERNET

CLASS A/B: 96% WATCH VIDEOS ONLINE, 87% OFFLINE
15-30 YRS: 31% WATCH TV SERIES ONLINE, 27% OFFLINE

2ND REASON TO HAVE A HOME COMPUTER (INTERNET IS 1ST)
DIGITAL IS THE FIRST INCOME REVENUE FOR MUSIC INDUSTRY IN BRAZIL


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TERRA IS THE LEADING DIGITAL MEDIA COMPANY IN LATIN AMERICA

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70 MILLION
PEOPLE ACCESS TERRA MONTHLY


1 Google
2 msn
3 Yahoo!
5 facebook.
6 YouTube
10
15

23 CNN
24 G
25 S
30 BBC

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TERRA IS THE 31ST MOST VISITED SITE IN THE WORLD


STRATEGIC FRAMEWORK

BRANDS

CONTENT

PEOPLE

SOCIAL

SCREENS


SCREENS

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TABLETS

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HOME APPLIANCES

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DOOH

CONNECTED TV AND BLURAY

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COMPUTERS

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MOBILE PHONES

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DASHBOARDS


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12 MILLION

EYEBALLS IN LATAM

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6 MILLION LISTENERS IN LATAM


terra tv

video store

BETA

busque por título, ator, atriz ou diretor

BUSCAR

Olá, Pedro | Minha Conta | Sair

Comprar créditos | Créditos: R$ 271,80

0

ALUGUEL E COMPRA

VÍDEO CLUBE

MEUS VÍDEOS

Trailers | Como Funciona | Ajuda

Filmes | Séries | Shows

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Manipuladores

Matriz

Aluguel | Compra

Toy Story 3

Aluguel | Compra

Harry Potter e a

Ordem da Fênix

Aluguel | Compra

Sex and the City 2

Aluguel | Compra

Conheça e aprenda

como utilizar o

Terra TV

Video Store


sonora

busque por artista, álbum ou música...

BUSCAR

exemplos: Ivete Sangalo Cassiane Alexandre Pires Eyshila Bee Gees

ENTRAR | novo usuário? | registre-se grátis

nome de usuário: | senha:

nome de usuário | ENVIAR

☐ salvar senha | lembrar senha | ajuda

INÍCIO ACERVO → RANKING → AGORA → RÁDIOS → GERAR PLAYLIST RÁPIDA

conheça o sonora FAÇA UM TOUR

CONHEÇA OS PLANOS →

Destaques

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GUADALAJARA 2011 | LONDRES 2012

OFFICIAL BROADCASTER
100 MILLION PEOPLE
13 LIVE HD CHANNELS
LIVE ON SMARTPHONES AND TABLETS

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terra

CANAL OFICIAL


ADDING VALUE TO TELEFÓNICA

TERRA TV

  • Gives to Telefónica access to state of art OTT multiplatform
  • Technology and content expertise leverage Telefónica know how
  • Unique video content offering

SONORA

  • Unique offering to Telefónica’s broadband customers
  • Expansion to Telefónica’s smartphone clients increase loyalty and conversion
  • 500,000 Telefónica’s clients on the program

CONTENT

  • Terra offers huge catalog of premium content for mobile
  • 2 million Movistar clients impacted daily by Terra content
  • 7 million pieces of content per day are delivered for Telefónica clients

INNOVATION

  • Online Advertising Leadership
  • Anticipating internet trends
  • Internet brand awareness

STRATEGY TO GROW

  1. ANYWHERE
  2. INSTANTLY
  3. FREMIUM

ALL PRODUCTS AND CONTENTS MUST BE AVAILABLE IN ANY SCREEN, DEVICE AND O.S.

LIVE EVENTS
PUSH CONTENT FOR MOBILES
EVERYTHING ON THE CLOUD

FREE CONTENT – ADVERTISING
PREMIUM CONTENT – SUBSCRIPTION