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Vivo Participações
       1Q06 Consolidated Results



    May, 4 2006




1
Highlights

    Development                          • Quality : 95.6% Anatel’s goals achieved;
                                         • Network and Handsets authentication in progress;
                                         • Reduction in PDD.



    Leadership                           • Leadership in cellular telephony in Brazil with 33.7% Market Share*;
                                         • More than 30 million clients;
                                         • More than 8 thousands points of sale (exclusive or not).



    Capex                                • Consolidation / Rationalization of IT/IS;
                                         • Coverage;
                                         • Customer Care to Corporate Segment.


                                         • Digital Coverage in all cities where Vivo operates;
    Technology
                                         • More than 79% of covered cities have 1xRTT;
                                         • Percentage of Population served with 1xRTT = 86%.


                                         • EBITDA of R$717.1 millions on 1Q06;
    Finance
                                         • Positive Operating Cash Flow of R$ 435.8 millions.



                                         • Corporate Restructuring successfully implemented;
    Corporate Governance
                                         • Second Stage proposed for incorporation of subsidiaries.



     * 43.5% in it’s authorized areas.
2
Client Base Evolution
                                   +11.8% YoY




                                                         Growth Percentage
              + 11.8%
                                                                 + 13.1%


    26,958                30,138
              + 8.5%      5,761          Post                     + 6.1%
    5,308


              + 12.6%
                                                      1Q05                   1Q06
                          24,377
    21,650
                                                     Corporate Client   Private Client


                                                •Loyalty and Retention
                                                •Focus on value clients
    1Q05                  1Q06

             Pre   Post




3
Leadership in Distribution & Coverage
                          Only Operator in 3G : 18 Cities with EV-DO



              Channels of distribution

                                                              86% Pop with 1xRTT
                                                              1,780 Cities with 1xRTT
      8,175
                    7,113                            2,237
      325                            6,287
                    116
                                    92
                                                                      1,752
                                                                                        1,627
    3,290
                  2,935
                                  2,200



    4,560         4,062           3,995




    Vivo           C1             C2                  Vivo             C1                C2

     Retail   Third Party     Own Stores                         Cities Covered




4
Innovation & Technology

          • Improves capacity of voice and data                  Handsets Models
1XRTT       transmission.


                                                                           7 EV-DO Models


                                                          75%
                                                                       50% with Digital Camera
          • 3G Access Technology ;
          • Data Transmission of speed 2.4 Mb/sec;
EV-DO
          • High End Activations: + 25% EV-DO;
                                                                                   25%
          • More than 80 thousand clients.


                                                      High + Mid End             Low End


          • High Speed Internet Access;
Plack &   • More than 12 options of internet access
  PDA       cards and PDA’s;
          • Enables automated solutions to banks,
            service sector and industries.                             TREO 650 Model




 5
1Q06 Main Marketing Actions

    Vivo bom de papo                                    Fale mais por menos


                                                                      Customer talks to 30 million
              Features two packages with                              persons in Brazil for R$0.30
              high minute content at                                  per minute
              promotional prices




        Recarga em dobro



                                           Features the recharge
                                           value in double to local
                                           calls




6
Loyalty and Retention
                                                 Focus on Mid and High Range Clients
                                      LOYALTY                                                                    RETENTION
    Changes for
    Segmented




                                                                               Segmented
                       Incentive to retain Pre-paid client through discounts
     Pre-Paid




                                                                                  Offer
                       in the exchange for a new handset keeping the                               Special offers to retain clients.

                       number
      Program of




                       Points are added and can be used when handset is
        Points




                                                                               Migration
                                                                               Pre-Post
                       exchanged. Balance of points is sent by SMS.                                Inform to pre-paid clients the advantages of
                                                                                                   being a Post-Paid.
        Overlay CDMA




                       Incentive to change TDMA handsets for CDMA




                                                                                Upgrade of Plans
                       based on points.




                                                                                 and Packages
                                                                                                      Adequate plan to profile maximizing value-for-
                                                                                                      money to client and increase customer
                                                                                                      satisfaction
      Globalmoto
      Direct mail




                       Enables mid and high range clients to acquire the
                       Globalmoto handset at differentiated prices.



7
Net Revenue
    R$ million

                         + 0.6%


                         2,987

      2,577                                     2,594

                         1,373
      1,130                                      1,206   • Right Planning

                                                         • Campaigns to incentive the
                                                         intra network usage;
                         1,018
      1,053                                       930    • Data transmission ;

                          140                            • Internet access cards; PDA’s
      126                                         143    and SMS.
      268                 456                     315

     1Q05                4Q05                    1Q06



         Handset                 Other Service
         Network Usage           Monthly Subscription




8
Data Revenue Evolution
       R$ million




         Data Net Revenue           Data Net Rev./Service Net Rev.




1Q06
                                                    +22%


4Q05                        +21%
                                                                     7.1%
                                                            0.8 pp
                                                    6.3%
                                    5.8%   0.5 pp
1Q05
                                    1Q05            4Q05             1Q06




9
Data: Services Breakdown
           Incentive to the Use of Higher Value Added Services
                              Increase in WAP & ZAP



                 1Q05                                             1Q06
                 29%                                                41%




           13%         16%                                  19%           22%




             71%                                                  59%


     WAP   SMS     ZAP + others                       WAP    SMS        ZAP + others




10
ARPU Blended
                        1Q05 vs. 1Q06                                                   1Q06 vs. 4Q05
                                   -11.8%                                                    -12.4%


           28.8                                                                                              29.0

                                                              25.4
                                                                                             ( 0 .9 )        11.6
           13.3          ( 1.5 )
                                                 ( 1.9 )                  ( 2 .7 )
                                                              10.4




           15.5                                                                                             17.3
                                                              15.0


                        Inbound

                        Outgoing


            1Q05     1- Client B ase        2 - Real A RP U   1Q06    2 - Real A RP U    1- Client B ase    4Q05
                    Gro wth, M ix and           Variatio n                Variatio n    Gro wth, M ix and
                    B usiness Days                                                      B usiness Days




Outgoing     15.5        (0.2)                        (0.4)    15.0          (1.9)                (0.4)        17.3
Inbound      13.3        (1.3)                        (1.5)    10.4          (0.7)                (0.5)        11.6


11
ARPU Post-Paid
                      1Q05 vs. 1Q06                                                     1Q06 vs. 4Q05
                               -3.1%                                                      -12.6%



                                                                                                             85.5

           77.1
                                                            74.7
                                                                                              ( 0 ,9 )       23.7

                          ( 2 ,0 )
           24.9                               ( 0 ,4 )      21.5          ( 9 ,9 )




                                                                                                             61.8
           52.2                                             53.2


                      Inbound

                      Outgoing

           1Q05       1- Client B ase     2 - Real A RP U   1Q06      2 - Real A RP U     1- Client B ase    4Q05
                     Gro wth, M ix and        Variatio n                  Variatio n     Gro wth, M ix and
                     B usiness Days                                                      B usiness Days




Outgoing      52.2           (0.1)                 1.1         53.2           (8.2)             (0.4)           61.8
Inbound       24.9           (1.9)                (1.5)        21.5           (1.7)             (0.5)           23.7


12
MOU Blended
                   1Q05 vs. 1Q06                                           1Q06 vs. 4Q05
                           -17.5%                                                 - 8.9%


           81.9

                                                                                                          74.1

                       ( 4 .6 )                         67.5
           44.6                                                                            ( 2 .7 )
                                         ( 9 .7 )                    ( 3 .9 )
                                                                                                         40.0
                                                       36.5




           37.3
                                                       31.0
                                                                                                         34.2
                   Inbound

                    Outgoing

           1Q05    1- Client B ase    2 - Real M OU     1Q06      2 - Real M OU       1- Client B ase    4Q05
                  Gro wth, M ix and      Variatio n                  Variatio n      Gro wth, M ix and
                  B usiness Days                                                     B usiness Days




Outgoing   37.3         (0.5)                 (5.7)       31.0           (2.0)                  (1.1)       34.2
Inbound    44.6          (4.1)                 (4.0)       36.5           (1.9)                  (1.6)      40.0


13
MOU Post-Paid
                     1Q05 vs. 1Q06                                              1Q06 vs. 4Q05
                             +0.4%                                             -5.4%



                                                                                                     210.7
           198.6                                       199.4
                                          7 .1

                                                                                       ( 4 .5 )       80.1
                                                                  ( 6 .9 )
                        ( 6 .4 )                       76.0
           80.5




                                                                                                     130.6
                                                       123.4
           118.2


                    Inbound

                     Outgoing

            1Q05    1- Client B ase    2 - Real M OU    1Q06   2 - Real M OU      1- Client B ase     4Q05
                   Gro wth, M ix and      Variatio n              Variatio n     Gro wth, M ix and
                   B usiness Days                                                B usiness Days


Outgoing   118.2       (0.4)                5.6        123.4       (4.5)               (2.7)          130.6
Inbound     80.5       (6.0)                1.5         76.0       (2.4)               (1.8)           80.1



14
SAC*
           Strategy focused on Retention and Acquisition of Value Clients




                              -11.3%            -7.4%




                    141
                                        125                  135




                    1Q05                1Q06                 4Q05



     *SAC Blended


15
Operating Costs*
                                     Costs Grow with competitive activity

     R$ million


                     Cost of                      376
                   services                             434
                   rendered                             445

                                          153
                  Personnel               156
                                           165

                                                   412                                1Q05
                     Cost of
                                                    433                               1Q06
                   handsets
                                                                    626
                                                                                      4Q05
                                                              564
                    Selling
                                                                          728
                  expenses
                                                                                951


                 General &               122
              administrative             129
                expenses                   181




        *Depreciation is not included.

16
PDD Reduction
                          Operating and Control Initiatives

     R$ million




                  260.8
                                                    Structure and Process Initiatives :

                                                    Authentication of third party Analog
                                                  and
                                                   TDMA network;
                                     161.0
                           - 38.3%                  Interception of calls posted by Vivo
                                                    clients in roaming;

     88.4                                           “Credit Scoring”;

                                                    “Customer screening”;

                                                    “Management of Consumption”.



     1Q05         4Q05               1Q06




17
EBITDA and EBITDA Margin
     R$ million



                       EBITDA                                    EBIT




                                                 27.6%
      37.9%

                         21.8%




      977.7

                         650.1                   717.1
                                                         446.3

                                                                               125.5
                                                                        59.6


     1Q05                4Q05                    1Q06    1Q05           4Q05   1Q06


              EBITDA             EBITDA Margin
                                                                    EBIT




18
Gross Debt, Net Debt and Gearing
                       Improvement in Gearing.                    Short Term Debt is Covered.


                        Gross Debt (R$ million)                                  Net Debt (R$ million)
                    5,652.8
                                              5,482.6


                     69%                         60%

                                                                                                     4,464.4
                                                                                  4,156.3
                                                 40%
                     31%

                    4Q05                       1Q06                               4Q05               1Q06

                         Short Term   Long Term

                                                        Gearing
     R$ million                               8,594             8,416




                                      4,156             4,464
                                                                                 0.48         0.53

         Net Debt                                                                4Q05         1Q06
         Shareholder's Equity




                                          4Q05             1Q06
19
Net Financial Result
                      Reduction in Financial Expenses
     R$ million




                  (221.7)                                 (232.4)

                                      (186.3)




                            - 16.0%             - 19.8%




                  1Q05                1Q06                4Q05




20
Capex

                                              Main Investments :
                                 Network Quality/Capacity;
                                 Coverage Expansion – CDMA 1XRTT and EV-DO;
                                 Centralized systems and platforms;
                                 Corporate segment: handsets and technology.


                       Total Capex                                 % Capex/Net Revenues


                         878.1
                         118.6

                                                                               29%
                         216.2
     535.3
     84.0                                                   21%
     66.6
                                          281.3                                           11%
                         543.3
                                          103.3
     384.7
                                          85.9
                                          92.1

     1Q05                4Q05            1Q06
                                                           1Q05                4Q05       1Q06
             Network    Technology   Others




21
Net Result
     R$ million



                   1Q05      4Q05        1Q06


                  42



                                       (179)



                            (263)




22
Corporate Structure

                                            Present                                                                                                   Proposed

              BRASILCEL, NV                                                  Mercado                                                  BRASILCEL, NV              Mercado
                        62.35%                                                37.65%                                                     62.35%                  37.65%




                             VIVO PARTICIPAÇÕES S.A.                                                                                        VIVO PARTICIPAÇÕES S.A.


                                                      100%                                                                                               100%




                                                                                                                                                    GLOBAL
                                                       Global
Telergipe
 Celular
            Telebahia
             Celular
                        Telerj
                        Celular
                                  Telest
                                  Celular
                                            Celular
                                             CRT
                                                      Telecom
                                                                    Telesp
                                                                    Celular
                                                                                        Tele Centro Oeste
                                                                                              Celular
                                                                                                                                                  TELECOM S.A.
                                                       Celular

                                                                                                 100%




                                                                                                                   Norte
                                                      Telems     Telegoias    Telemat       Teleron    Teleacre             TCO IP
                                                                                                                   Brasil
                                                      Celular     Celular     Celular       Celular     Celular             Celular
                                                                                                                  Telecom




 23
Anatel Standards
                                   Leadership in Meeting Quality Goals



                        First Ranked                                          Network Quality
                                                     Best
                                                 Performance




     VIVO        C4          C3        C1   C2                 VIVO      C4        C3        C2        C1


     National Ranking among SMP Controlling                                 Competitive Edge
                   Companies
                                                                SMP Anatel Standards # 2, 3, 5, 6, 7 and 12
                    (All Indicators)




     Source: ANATEL (March/2006)



24
Anatel Standards
              Reduction in Non-Compliance




     15.0%
               14.0%

                          12.1%



                                     9.3%




                                              3.8%




     Mar-05    Jun-05    Sep-05     Dec-05   Mar-06




25
VIVO Social Responsibility



             Museu da Língua Portuguesa - Estação da Luz - Dedicated to all
           languages that have influence on the Portuguese language spoken in Brazil. A
           project sponsored by Vivo Institute since 2002;


             Second “Caravana do Esporte”, a project sponsored by Vivo
           Institute. 18 less developed cities will be visited;


ACTIONS      Inaugurated the “centro esportivo da comunidade Novo Glicério”
           an NGO Glicerio initiative sponsored by Instituto Vivo;


               Inaugurated a “Brinquedoteca” (space with toys for kids to spend
           leisure time) at the pediatrics section of the Santa casa do Pará,
           sponsored by the Instituto Vivo.




26
Final Remarks



            Focus on Value Clients                           Coverage
                                                             100% Digital
     Contract base growth;                   100% Digital;

     Increase in Corporate client base;      EV-DO in 18 Municipalities;

                                             1xRTT in more than 79% of the Municipalities;
     More than 12 models of ZAP and PDA’s.
                                             EV-DO – 3G speed of up to 2,4 Mb/sec.



          Corporate Restructuring                      System Platforms

     Stronger Structure;                     Reduction of PDD in the quarter;

     Advantage of Synergies;                 Compliance to Anatel Standards;

     Simplicity;                             Authentication networks and handsets in
                                             progress .
     Integrated Platforms.




27
Safe Harbor Clause
                  Forward Looking Statements
     • This presentation contains statements that constitute forward looking
     statements in its general meaning and within the meaning of the Private
     Securities Litigation Reform Act of 1995. These statements appear in a number
     of places in this document and include statements regarding the intent, belief
     or current expectations of the customer base, estimates regarding future
     growth in the different business lines, market share, financial results and other
     aspects of the 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 forward-looking nature of
     discussions of strategy, plans or intentions. Such forward-looking statements
     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.
     •Analysts and investors are cautioned not to place undue reliance on those
     forward looking statements which speak only as of the date of this
     presentation.




28

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VIVO - Apresentation of 1st Quarter 2006 Results

  • 1. Vivo Participações 1Q06 Consolidated Results May, 4 2006 1
  • 2. Highlights Development • Quality : 95.6% Anatel’s goals achieved; • Network and Handsets authentication in progress; • Reduction in PDD. Leadership • Leadership in cellular telephony in Brazil with 33.7% Market Share*; • More than 30 million clients; • More than 8 thousands points of sale (exclusive or not). Capex • Consolidation / Rationalization of IT/IS; • Coverage; • Customer Care to Corporate Segment. • Digital Coverage in all cities where Vivo operates; Technology • More than 79% of covered cities have 1xRTT; • Percentage of Population served with 1xRTT = 86%. • EBITDA of R$717.1 millions on 1Q06; Finance • Positive Operating Cash Flow of R$ 435.8 millions. • Corporate Restructuring successfully implemented; Corporate Governance • Second Stage proposed for incorporation of subsidiaries. * 43.5% in it’s authorized areas. 2
  • 3. Client Base Evolution +11.8% YoY Growth Percentage + 11.8% + 13.1% 26,958 30,138 + 8.5% 5,761 Post + 6.1% 5,308 + 12.6% 1Q05 1Q06 24,377 21,650 Corporate Client Private Client •Loyalty and Retention •Focus on value clients 1Q05 1Q06 Pre Post 3
  • 4. Leadership in Distribution & Coverage Only Operator in 3G : 18 Cities with EV-DO Channels of distribution 86% Pop with 1xRTT 1,780 Cities with 1xRTT 8,175 7,113 2,237 325 6,287 116 92 1,752 1,627 3,290 2,935 2,200 4,560 4,062 3,995 Vivo C1 C2 Vivo C1 C2 Retail Third Party Own Stores Cities Covered 4
  • 5. Innovation & Technology • Improves capacity of voice and data Handsets Models 1XRTT transmission. 7 EV-DO Models 75% 50% with Digital Camera • 3G Access Technology ; • Data Transmission of speed 2.4 Mb/sec; EV-DO • High End Activations: + 25% EV-DO; 25% • More than 80 thousand clients. High + Mid End Low End • High Speed Internet Access; Plack & • More than 12 options of internet access PDA cards and PDA’s; • Enables automated solutions to banks, service sector and industries. TREO 650 Model 5
  • 6. 1Q06 Main Marketing Actions Vivo bom de papo Fale mais por menos Customer talks to 30 million Features two packages with persons in Brazil for R$0.30 high minute content at per minute promotional prices Recarga em dobro Features the recharge value in double to local calls 6
  • 7. Loyalty and Retention Focus on Mid and High Range Clients LOYALTY RETENTION Changes for Segmented Segmented Incentive to retain Pre-paid client through discounts Pre-Paid Offer in the exchange for a new handset keeping the Special offers to retain clients. number Program of Points are added and can be used when handset is Points Migration Pre-Post exchanged. Balance of points is sent by SMS. Inform to pre-paid clients the advantages of being a Post-Paid. Overlay CDMA Incentive to change TDMA handsets for CDMA Upgrade of Plans based on points. and Packages Adequate plan to profile maximizing value-for- money to client and increase customer satisfaction Globalmoto Direct mail Enables mid and high range clients to acquire the Globalmoto handset at differentiated prices. 7
  • 8. Net Revenue R$ million + 0.6% 2,987 2,577 2,594 1,373 1,130 1,206 • Right Planning • Campaigns to incentive the intra network usage; 1,018 1,053 930 • Data transmission ; 140 • Internet access cards; PDA’s 126 143 and SMS. 268 456 315 1Q05 4Q05 1Q06 Handset Other Service Network Usage Monthly Subscription 8
  • 9. Data Revenue Evolution R$ million Data Net Revenue Data Net Rev./Service Net Rev. 1Q06 +22% 4Q05 +21% 7.1% 0.8 pp 6.3% 5.8% 0.5 pp 1Q05 1Q05 4Q05 1Q06 9
  • 10. Data: Services Breakdown Incentive to the Use of Higher Value Added Services Increase in WAP & ZAP 1Q05 1Q06 29% 41% 13% 16% 19% 22% 71% 59% WAP SMS ZAP + others WAP SMS ZAP + others 10
  • 11. ARPU Blended 1Q05 vs. 1Q06 1Q06 vs. 4Q05 -11.8% -12.4% 28.8 29.0 25.4 ( 0 .9 ) 11.6 13.3 ( 1.5 ) ( 1.9 ) ( 2 .7 ) 10.4 15.5 17.3 15.0 Inbound Outgoing 1Q05 1- Client B ase 2 - Real A RP U 1Q06 2 - Real A RP U 1- Client B ase 4Q05 Gro wth, M ix and Variatio n Variatio n Gro wth, M ix and B usiness Days B usiness Days Outgoing 15.5 (0.2) (0.4) 15.0 (1.9) (0.4) 17.3 Inbound 13.3 (1.3) (1.5) 10.4 (0.7) (0.5) 11.6 11
  • 12. ARPU Post-Paid 1Q05 vs. 1Q06 1Q06 vs. 4Q05 -3.1% -12.6% 85.5 77.1 74.7 ( 0 ,9 ) 23.7 ( 2 ,0 ) 24.9 ( 0 ,4 ) 21.5 ( 9 ,9 ) 61.8 52.2 53.2 Inbound Outgoing 1Q05 1- Client B ase 2 - Real A RP U 1Q06 2 - Real A RP U 1- Client B ase 4Q05 Gro wth, M ix and Variatio n Variatio n Gro wth, M ix and B usiness Days B usiness Days Outgoing 52.2 (0.1) 1.1 53.2 (8.2) (0.4) 61.8 Inbound 24.9 (1.9) (1.5) 21.5 (1.7) (0.5) 23.7 12
  • 13. MOU Blended 1Q05 vs. 1Q06 1Q06 vs. 4Q05 -17.5% - 8.9% 81.9 74.1 ( 4 .6 ) 67.5 44.6 ( 2 .7 ) ( 9 .7 ) ( 3 .9 ) 40.0 36.5 37.3 31.0 34.2 Inbound Outgoing 1Q05 1- Client B ase 2 - Real M OU 1Q06 2 - Real M OU 1- Client B ase 4Q05 Gro wth, M ix and Variatio n Variatio n Gro wth, M ix and B usiness Days B usiness Days Outgoing 37.3 (0.5) (5.7) 31.0 (2.0) (1.1) 34.2 Inbound 44.6 (4.1) (4.0) 36.5 (1.9) (1.6) 40.0 13
  • 14. MOU Post-Paid 1Q05 vs. 1Q06 1Q06 vs. 4Q05 +0.4% -5.4% 210.7 198.6 199.4 7 .1 ( 4 .5 ) 80.1 ( 6 .9 ) ( 6 .4 ) 76.0 80.5 130.6 123.4 118.2 Inbound Outgoing 1Q05 1- Client B ase 2 - Real M OU 1Q06 2 - Real M OU 1- Client B ase 4Q05 Gro wth, M ix and Variatio n Variatio n Gro wth, M ix and B usiness Days B usiness Days Outgoing 118.2 (0.4) 5.6 123.4 (4.5) (2.7) 130.6 Inbound 80.5 (6.0) 1.5 76.0 (2.4) (1.8) 80.1 14
  • 15. SAC* Strategy focused on Retention and Acquisition of Value Clients -11.3% -7.4% 141 125 135 1Q05 1Q06 4Q05 *SAC Blended 15
  • 16. Operating Costs* Costs Grow with competitive activity R$ million Cost of 376 services 434 rendered 445 153 Personnel 156 165 412 1Q05 Cost of 433 1Q06 handsets 626 4Q05 564 Selling 728 expenses 951 General & 122 administrative 129 expenses 181 *Depreciation is not included. 16
  • 17. PDD Reduction Operating and Control Initiatives R$ million 260.8 Structure and Process Initiatives : Authentication of third party Analog and TDMA network; 161.0 - 38.3% Interception of calls posted by Vivo clients in roaming; 88.4 “Credit Scoring”; “Customer screening”; “Management of Consumption”. 1Q05 4Q05 1Q06 17
  • 18. EBITDA and EBITDA Margin R$ million EBITDA EBIT 27.6% 37.9% 21.8% 977.7 650.1 717.1 446.3 125.5 59.6 1Q05 4Q05 1Q06 1Q05 4Q05 1Q06 EBITDA EBITDA Margin EBIT 18
  • 19. Gross Debt, Net Debt and Gearing Improvement in Gearing. Short Term Debt is Covered. Gross Debt (R$ million) Net Debt (R$ million) 5,652.8 5,482.6 69% 60% 4,464.4 4,156.3 40% 31% 4Q05 1Q06 4Q05 1Q06 Short Term Long Term Gearing R$ million 8,594 8,416 4,156 4,464 0.48 0.53 Net Debt 4Q05 1Q06 Shareholder's Equity 4Q05 1Q06 19
  • 20. Net Financial Result Reduction in Financial Expenses R$ million (221.7) (232.4) (186.3) - 16.0% - 19.8% 1Q05 1Q06 4Q05 20
  • 21. Capex Main Investments : Network Quality/Capacity; Coverage Expansion – CDMA 1XRTT and EV-DO; Centralized systems and platforms; Corporate segment: handsets and technology. Total Capex % Capex/Net Revenues 878.1 118.6 29% 216.2 535.3 84.0 21% 66.6 281.3 11% 543.3 103.3 384.7 85.9 92.1 1Q05 4Q05 1Q06 1Q05 4Q05 1Q06 Network Technology Others 21
  • 22. Net Result R$ million 1Q05 4Q05 1Q06 42 (179) (263) 22
  • 23. Corporate Structure Present Proposed BRASILCEL, NV Mercado BRASILCEL, NV Mercado 62.35% 37.65% 62.35% 37.65% VIVO PARTICIPAÇÕES S.A. VIVO PARTICIPAÇÕES S.A. 100% 100% GLOBAL Global Telergipe Celular Telebahia Celular Telerj Celular Telest Celular Celular CRT Telecom Telesp Celular Tele Centro Oeste Celular TELECOM S.A. Celular 100% Norte Telems Telegoias Telemat Teleron Teleacre TCO IP Brasil Celular Celular Celular Celular Celular Celular Telecom 23
  • 24. Anatel Standards Leadership in Meeting Quality Goals First Ranked Network Quality Best Performance VIVO C4 C3 C1 C2 VIVO C4 C3 C2 C1 National Ranking among SMP Controlling Competitive Edge Companies SMP Anatel Standards # 2, 3, 5, 6, 7 and 12 (All Indicators) Source: ANATEL (March/2006) 24
  • 25. Anatel Standards Reduction in Non-Compliance 15.0% 14.0% 12.1% 9.3% 3.8% Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 25
  • 26. VIVO Social Responsibility Museu da Língua Portuguesa - Estação da Luz - Dedicated to all languages that have influence on the Portuguese language spoken in Brazil. A project sponsored by Vivo Institute since 2002; Second “Caravana do Esporte”, a project sponsored by Vivo Institute. 18 less developed cities will be visited; ACTIONS Inaugurated the “centro esportivo da comunidade Novo Glicério” an NGO Glicerio initiative sponsored by Instituto Vivo; Inaugurated a “Brinquedoteca” (space with toys for kids to spend leisure time) at the pediatrics section of the Santa casa do Pará, sponsored by the Instituto Vivo. 26
  • 27. Final Remarks Focus on Value Clients Coverage 100% Digital Contract base growth; 100% Digital; Increase in Corporate client base; EV-DO in 18 Municipalities; 1xRTT in more than 79% of the Municipalities; More than 12 models of ZAP and PDA’s. EV-DO – 3G speed of up to 2,4 Mb/sec. Corporate Restructuring System Platforms Stronger Structure; Reduction of PDD in the quarter; Advantage of Synergies; Compliance to Anatel Standards; Simplicity; Authentication networks and handsets in progress . Integrated Platforms. 27
  • 28. Safe Harbor Clause Forward Looking Statements • This presentation contains statements that constitute forward looking statements in its general meaning and within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this document and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines, market share, financial results and other aspects of the 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 forward-looking nature of discussions of strategy, plans or intentions. Such forward-looking statements 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. •Analysts and investors are cautioned not to place undue reliance on those forward looking statements which speak only as of the date of this presentation. 28