3Q07 ResultsVivo Participações S/ANovember 5, 2007

1público copyright©vivo2007

,

Highlightsg g

Acquisition of Telemig and Amazônia Celularq g

Purchase of 1.9 GHz frequency

Elimination of structural problems

Implantation of the “Vivo para o Cliente” program

Net revenues up by 15% YoY and 7.5% QoQ

EBITDA climbs 31% QoQ and 16% YoY

Net Income of R$ 4 million

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Survey reveals: Vivo is the best consumer option!

The Brazilian Consumer Rights Association (PRO TESTE) undertakes an annual survey of currently available mobile plans. In the 2007 edition of the “Mobile Tariffs” report, Vivo was the leading highlight. The Brazilian Consumer

Rights Association – PRO

Source: Gazeta Mercantil – Oct 15

Rights Association – PRO TESTE - declares Vivo

to be the best choice for consumers!

“...Vivo offers to its users cheaper plans than other mobile operators.”

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AgendaVivo Participações 3Q07 Results

ge da

Operating PerformanceFinancial PerformanceFinal Remarks

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Customer base

Share of net additions: 26.4% - market leader in its operational area and nationwideMarket share: 36.8% in its operational areaGSM/EDGE: 77% of total activationsVivo Escolha: 63% of individual postpaid baseCh R t 2 2% i th t + 9 0%Churn Rate: 2.2% in the quarter + 9.0%

+ 3.6%

28,726 30,240 31,320

8,020 points of sale347,000 recharge points

Distribution Channels

, g pNew recharge partners:Redecard and Hypercard

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3Q06 2Q07 3Q07

Products and services

Residential Phones

• fixed-line phone using wireless network• fixed-line tariffs• simplicity and mobility

Vivo Flash

• wireless residential broadband internet access - desktopaccess des top

New Partnerships

• Yahoo!• SonyBMG• Terra - Sonora

• Dual-delivery: receiving music acquired through cell phone also in the

Bl kB C

acquired through cell-phone also in the computer

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BlackBerry Curve

SAC* GSM:GSM:more competitive prices

capture of higher value clients increase in postpaid additions

=

115

+ 9.5%+ 7.5%

= 87% growth in high and medium-value

postpaid additions in the 3Q07

105 107115

21%24%

19% 24% 24%

56% 51% 57%

21% 25%

3Q06 2Q07 3Q07Subsidy Commission AdvertisingSubsidy Commission Advertising

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*Blended SAC

ARPU and MOU trends

ARPU

+ 7.3%

+ 3.0%

MOU

- 1.3%

3.0%

77777830.829.928.7

+ 10.5% +7.7%

13.4 13.7 13.9 39 35 35

15.3 16.2 16.9

3Q06 2Q07 3Q07

39 42 42

3Q06 2Q07 3Q073Q06 2Q07 3Q07

Outgoing Inbound

3Q06 2Q07 3Q07

Outgoing Inbound

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Loyalty and retention

Actions Results

Reward Program

Customer recapture

Restructuring of plans

22% growth in sign-in rate

6,500 customers “recaptured”

More than 100 000 restructuringsRestructuring of plans

Recovery of suspended customers

Alteration of recharge mix

More than 100,000 restructurings

6,000 suspended customers “recovered”Recharge revenue: R$994 million, 25% g

Recharge incentives up YoY

Loyalty and retention effortsLoyalty and retention efforts focused on high- and medium-

value customers

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AgendaVivo Participações 3Q07 Results

ge da

Operating PerformanceFinancial PerformanceFinal Remarks

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Net service revenueR$ million

+ 15.3%

Data and VAS Revenue

8 3% of net service revenue2,468

2,8462,648

+ 7.5%

8.3% of net service revenue

34% YoY growth

1,1501,187

1,252

1 260 1,373

151 201 221

1,1671,260 ,

3Q06 2Q07 3Q07Network usageSubscriptions and usageOther services

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Operating costs*p gR$ million

Operating costs under strict control despite fiercelycontrol despite fiercely

competitive environment113

162

729

159

Selling

General andAdministrative

512

697

549

728

585Cost of Goods Sold

Expenses

512

165151

151H.R.

141140

659

144Fistel, Fust, Funtel

543640

659Cost of ServicesRendered

3Q06 2Q07 3Q07

12*Excluding depreciation

Q Q Q

Ebitda and Ebitda margingBalance between sales and

profitabilityprofitability=

Revenue 7.5% QoQCosts 1 2% QoQCosts 1.2% QoQEBITDA 31.4% QoQ

21 0%25.7%25.3%

R$ million21.0%

833.3715.6

634.2

3Q06 2Q07 3Q07

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EBITDA Margin

Cash flow and net resultR$ million

Cash Flow * Net Result961.8

112 8

4.4

527.5

-112.8

-196.9340.7

444.6

3Q06 3Q072Q073Q06 3Q072Q07

137.6

9M079M06

* EBITDA – CAPEX + change in working capital

3Q06 3Q072Q073Q06 3Q072Q07 9M079M06

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Financial result, gross debt and net debtR$ million

Gross Debt Net Debt

4,147.6

- 29%

- 11%

- 14%

- 9%

Gross Debt Net Debt

2,957.7

3,336.33,705.7

4,699.6

68% 55%67%

4,038.4

68%67%

55%

32% 45%33%

3Q06 2Q07 3Q07Short Term Long Term

3Q06 2Q07 3Q07

32% 33%45%

Financial Result

2Q07

3Q07

124.4

113.8

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3Q06 201.6

CAPEX16%

R$ million

11%11%444.8

369.2337.3

135.1

107.146.3 48.1

100.7114.4

202.6 190.3 206.7

3Q06 2Q07 3Q07

% Capex/Net Revenue

3Q06 2Q07 3Q07Network Technology Others

Main Investments

Adaptation to the Number Portability projectNew Customer Service System and Front Office

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Increasing GSM Network Capacity and QualityTotal GSM capex : 90% already utilized

AgendaVivo Participações 3Q07 Results

ge da

Operating PerformanceFinancial PerformanceFinal Remarks

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Final Remarks

Vivo wins the Reliable Brands prizeVivo wins the Reliable Brands prize .

Most valuable brand in cellular phone in Brazil :R$2.25 billion

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Disclaimer

• This presentation may contain forward looking statements concerning future

Disclaimer

• This presentation may contain forward-looking statements concerning future prospects and objectives regarding growth of the subscriber base, a breakdown of the various services to be offered and their respective results. The exclusive purpose of such statements is to indicate how we intend to expand our businesspurpose of such statements is to indicate how we intend to expand our business and they should therefore not be regarded as guarantees of future performance.

• Our actual results may differ materially from those contained in such forward-looking statements, due to a variety of factors, including Brazilian political and economic factors, the development of competitive technologies, access to the capital required to achieve those results, and the emergence of strong competition in the markets in which we operate.

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