Cantv Overview. Presentation to the Investor Community. February, 2006

Transcription

1 Cantv Overview Presentation to the Investor Community February,

2 Compañía Anónima Nacional Teléfonos de Venezuela (CANTV) The leading telecommunications services provider in Venezuela and the country s only integrated telecommunications company Our Vision: To be the preferred provider of integrated telecommunications services in Venezuela and to fully satisfy our customers' specific needs, following strict ethical and performance standards VNT Mobile Broadband Switched access lines LISTED NYSE 2, (44%) 305 (13%) 1, (13%) 1,140 1, % 3,162 (52%) (43%) (35%) % 9.8% Strong performance in a market that offers profitable growth opportunities Investor Relations Contact: Gregorio Tomassi, CFA +58 (212) invest@cantv.com.ve Year-over-Year variance ( ) % of total revenues 54.2% Fixed line segment 14.4% 2 Gcia. Corporativa de Planificación Estratégica 16 de Febrero de 2007

3 Safe Harbor Statement This document contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in such forward-looking statements. Factors which may cause actual results to differ materially from those discussed herein include the impact on Cantv s business that may result from the Government s planned nationalization of Cantv, economic considerations that could affect demand for telecommunications services and the ability of the Company to make collections, inflation, regulatory factors, exchange controls and occurrences in currency markets, competition, labor relations, legal proceedings and the risk factors set forth in the Company s various filings with the Securities and Exchange Commission, including its most recently filed Annual Report on Form 20-F. The Company undertakes no obligation to revise these forward-looking statements to reflect events or circumstances after the date hereof, and claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of Gcia. Corporativa de Planificación Estratégica 16 de Febrero de 2007

4 Agenda Review of strategy, operative indicators and financial Country Strategy Fixed Line Service (excluding broadband) Mobile Service Broadband Service Financial Legal and organizational structure Ownership and governance 4

5 Venezuela snapshot Basic indicators (2005) Total GDP Nominal (US$ billion) Real growth (3 years CAGR) Per capita (US$) Others Population (million) CPI inflation (YE) Currency FX (Bs./US$) Country sovereign debt rating (Jun. 2006) Fitch BB- Moody s Standard & Poors Oil relevance - domestic and global Oil is important for the Venezuela s economy 2005 oil indicators Oil exports (US$ billion) % of total exports % of total fiscal revenues % of total GDP % 5, % Bolίvares (Bs.) 2,150 B2 48,1 87% 48% 16% B Political structure and economic regime Form of Government Next Presidential election Foreign exchange regime Monetary regime Capital mobility Communication industry (2005) Communication GDP Nominal (US$ billion) Real growth (3 years CAGR)...and places the country among the world largest oil players 2005 crude oil indicators Reserves Production Exports Millions b/d ,01 1,56 Democratic, Presidentialist December, 2012 Controlled Prices and interest rates under control Subject to the FX regime rules % Global ranking % of global total 7.0% 4.3% 3.7% Sources: Central Bank of Venezuela, Ministry of Energy and Petroleum, OPEC, 1999 Constitution, Executive decrees, Fitch, Moody s, Standard & Poors 5

6 6 Latam. comparisons 2006 Nominal GDP (US$ billion) GDP per capita (%) Venezuela Brazil Mexico Argentina Colombia Chile Peru Ecuador Venezuela Mexico Chile Argentina Brazil Peru Colombia Ecuador GDP Growth (%) CPI Var. % (Average) Venezuela Argentina Peru Chile Colombia Ecuador Mexico Brazil Venezuela Argentina Peru Chile Colombia Ecuador Mexico Brazil 6,099 7,594 8,570 5,745 5,177 3,151 2,763 3, Sources: IMF (World Economic Outlook, September 2006).

7 Strategy To To become become # 1 in in mobility mobility Communications for everyone in anytime, anywhere, whatever their needs Build Build value value on on broadband broadband leadership leadership Socially responsible corporation Capture Capture emerging emerging mass mass markets markets Stimulate Stimulate traditional traditional businesses businesses Excel Excel operational operational efficiency efficiency and and customer customer satisfaction satisfaction 7

8 Fixed Line Service (excluding broadband) Fixed lines penetration Cantv Fixed lines in service % of population 25% 20% 15% 10% Thousands Argentina Chile Brazil Mexico Venezuela 2,884 3,098 3,448 4,118 5% E Source: Pyramid Research ( ) BMI Research ( ) Fixed Lines Market Share As of December % = M lines Source: CONATEL Movistar 19.8% Others 1.1% CANTV 79.1% G* * Marks the middle range of guidance Lines in service increased 11.3% on YoY expanding our customer base to over 3.4 million Our fixed-wireless telephony and prepaid plans are key growth drivers Higher number of lines and traffic are offsetting impact of tariff freeze 8

9 Mobile Service Mobile lines penetration % of population 80% Chile Cantv Mobile (Movilnet) subscribers Thousands 70% 60% 50% 40% 30% 20% 10% E Mobile Subscribers Market Share Argentina Venezuela Brazil Mexico Source: Pyramid Research ( ) BMI Research ( ) 9,228 7,918 5,188 3, G* * Marks the middle range of guidance As of December % = M subs Digitel (GSM) 15.3% Source: CONATEL Movistar (CDMA) 42.5% Movilnet (CDMA) 42.1% Mobile revenue increased 52.6% YoY in Dec 06 YTD, continuing as our main growth driver Net adds in 4Q06 of more than 1,154k take subscriber base nearly 8.0 million 4Q06 compared to 4Q05 total usage grew 68.2% and ARPU increased 3.4% driven by higher APRU in all segments 9

10 Broadband Service Broadband subscribers % of population 7% 6% 5% 4% 3% 2% 1% 0% E Broadband Market Share As of December % = k Subs Others 13.0% CANTV 87.0% Chile Argentina Brazil Mexico Venezuela Source: Business Monitor Online Report 2006E: Estimated Source: CONATEL Cantv Broadband Subscribers Thousands G* * Marks the middle range of guidance ADSL (ABA) lines experienced strong increases over the last twelve quarters As of December 2006, ABA subscribers totaled 449 thousand lines Cantv increased its market share to 87% in 4Q06 from 83% 3Q06 ADSL and private circuits revenue increased 33.1% YoY in 4Q06 10

11 Financials In millions of US$ * and growth percentages referred to constant Bs. Revenue Growth (%) EBITDA Growth (%) Margin (%) Basis points incr. Free cash flow Growth (%) Cash Debt Net Cash , (4.6) 32 (400) (1,700) 513 (14.1) , (49.9) (21.5) (109) , , (0.9) (120) 2007G** 3,930 3, (100) (24) (2) Capex 279 Dividends G** 369 Debt / Equity * Translation of financial statements data to US$ has been performed, solely for the convenience of the reader, converting Bolivar amounts at the official exchange rate at the end of each period. ** 2007 Guidance. For the Capex refer to the middle range 11

12 Capital Expenditures % of total Capex 2006 % revenue** 2007G* Fixed Telephony Mobile Telephony Broadband Others % % Total Capex * Marks the middle range of guidance ** % of corresponding 2006 revenue Capex is increasing aligned with our growing business 2007 Guidance 12

13 Ownership and Governance Ownership Structure Board of Directors Class A Shareholders as of May 31, 2005 Verizon Shares (thousands) 196,401 % Stake 25.0% Appointed by: B C Telefónica Venezuela Holding Others Bandes* Employees and retirees 54, ,900 51, % 0.05% 6.6% 6.5%** CEO and 8 principal members 7 All shareholders D Verizon Others *** 28, , % 51.4% 787, % 1 1* Employees & Retirees Venezuelan Government * Represents the Venezuelan Government ** Neutral vote *** Around 90% in the form of ADS * Veto rights on certain decisions according to by-laws A diversified and supportive shareholder base 13

14 Legal Structure Private investor Corporation Legal Entities Cantv Telco, C.A. Telecomunicaciones Móviles Movilnet, C.A. Corporación Cantv, C.A. 100% 100% 100% 100% 80% Cantv.net, C.A. Cantv Finance, C.A. 20% Caveguías, C.A. Business Fixed, Internet, Broadband Wireless mobile Internet Broadband Circuit's Invest Broker Yellow Pages Directory business Status Operative Company Operative Company Established in 1990 Active Executive Directors Operative Company Established in 1995 Operational Consolidation with Cantv since de 2001 Operative Company 14

15 Organizational Structure of Cantv CANTV CHAIRMAN CAVEGUÍAS MOVILNET AUDIT COMMITTEE EXCUTIVE VICE CHAIRMAN INTERNAL AUDITING MANAGMENT FINANCE AND PLANNING HUMAN RESOURCES CORPORATE MARKETING REGULATORY AFFAIRS INTERNAL COMMUNICATIONS EXTERNAL COMMUNICATIONS INSTITUTIONAL RELATIONS LEGAL 15

16 Organizational Structure Executive Vice-presidency CHAIRMAN EXCUTIVE VICE CHAIRMAN SPECIAL PROJECTS COMMITTEE TECHNOLOGY AND OPERATION CANTV MASS MARKETS SERVICE CENTRE TELECOM OPERATORS CANTV ENTERPRISES & INST. REVENUE ASSURANCE 16

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