Pursuant to Rule 13a-16 or 15d-16 of the
22640-102 Rio de Janeiro, RJ, Brazil
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
TELECOM ITALIA ANALYST & INVESTOR BRIEFING
2007 Results & Strategic Guidelines
TIM BRASIL
MARIO CESAR ARAUJO
 |
|
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Agenda
-
2007 results highlights
-
The Brazilian market context
-
2008-10 Plan overview
- Targets for 2008-10
|
1 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Highlights 2007
TIM Brasil is positioned as leader in value in the Brazilian mobile market, by means of its:
- National presence
- Innovation in terms of Marketing and Technology
- Strong brand
In 2007, main results achieved were:
- Leadership in service revenues share (since 2006)
- Best value customer mix (postpaid segment) and ARPU above market average
- Top of Mind (four times in the last 5 years) and best preference index
- Positive Net Cash Flow and positive Net Income
- All 2007 targets achieved
In 2007, TIM Brasil decided to change through:
- Fixed line license acquisition: entrance in fixed and internet market
- Launch of a new business model targeting Low ARPU
- 3G License acquisition
|
2 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Footprint of the major players 2007ye
|
3 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Leadership with profitability
BR GAAP
* Figure adjusted considering Bill & Keep elimination starting 01/01/06
**Restated local currency
|
4 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Achievement of all 2007 Targets
| BR GAAP | 2007 Actual | 2007 Targets | ||||
| Customers Portfolio | 31,3 | ~29 | a | |||
| (Mln SIM) | ||||||
| M/S TIM Brasil on SIM | 25.8% | ~26% | a | |||
| Revenues Growth - Organic* | 14.6% | >10% | a | |||
| EBITDA margin - Organic | 23.1% | >23% | a | |||
| Capex (Bln R$) | 1.9 | >2** | a | |||
| Op. Free Cash Flow | 761.7 | Break Even | a | |||
| (mln R$) | 2007 | |||||
* Figure adjusted considering Bill & Keep elimination starting 01/01/06
** Includes 3G and Wi-Max acquisitions
|
5 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Agenda
-
2007 results highlights
-
The Brazilian market context
-
2008-10 Plan overview
-
Targets for 2008-10
|
6 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Political and Economic Scenario
- PAC –investments approx. R$ 500 bln to R$ 900 bln between 2007 –2010.
- Lower interest rates producing a record bank lending, powering consumer spending
- Positive Trade Balance since 2001
- In January „08, Brazil became a net foreign creditor for the first time in history.
Source: Brazilian Central Bank, Abinee, BNDES
|
7 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Regulatory framework
|
8 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Competitive Scenario
Challenges ahead
| • | TIM will no longer be the only national player | |||
| • | A 4th operator will start in São Paulo, 35% of Brazilian GDP | |||
| • | Mergers & Acquisitions will continue in 2008 | |||
| • | Oi and Brasil Telecom | |||
| • | Telemig acquisition by VIVO and Amazonia by Oi. | |||
| • | Number portability | |||
| • | New mobile operator rules (SMP) | |||
| • | Launch of 3G | |||
| • | Handset subsidy | |||
|
9 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Market Evolution
Source: Internal estimate
* Service revenues
|
10 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Mobile residual market in lower classes and broadband penetration
Source: IBGE (PNAD, 2006), CGI 2006, Consumer Market Sizing Research
|
11 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Agenda
-
2007 results highlights
-
The Brazilian market context
-
2008-10 Plan overview
-
Targets for 2008-10
|
12 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
In 2008 TIM will continue to execute on the following strategy
|
13 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
3G: Wireless Broadband
- The PC market* in Brazil will grow +21.3% in 2008 reaching 12.9 mln units, of which 88.3% Desktops and 21.7% Laptops
- Brazil has the highest usage of internet per home user, 23 hours and 04 minutes per month **
- As of Sept 2007 Brazilian dial up internet home users totaled 7.1 mln
* IBOPE/Netratings –November 2007
** IDC 2007
|
14 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
Agenda
-
2007 results highlights
-
The Brazilian market context
-
2008-10 Plan overview
-
Targets for 2008-10
|
15 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
TIM Brasil targets
| BR GAAP | 2007 Actual | 2008 Targets | 2010 Targets | |||
| Customer Portfolio (Mln SIM) | 31.3 | ~37 | ~43 | |||
| Mkt Share on SIM | 25.8% | ~26% | stable | |||
| Revenues Growth - Organic | 14.6%* | > 12% | ~8% | |||
| (CAGR- 10) 07 | ||||||
| EBITDA margin - Organic | 23.1% | > 23% | ~ 29% | |||
| CAPEX (Bln R$) | 1.9 | ~3.6** | ~ 7.2 | |||
| (Cum.-10) 08 | ||||||
* Growth considering Bill & Keep elimination starting 01/01/06
Revenues growth reported: 22.7%
** Including 3G licenses (R$1.3 Bln)
|
16 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
- Back Up
|
17 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
CAPEX evolution breakdown
BR GAAP, Bln Reais
|
18 |
| TELECOM ITALIA ANALYST & INVESTOR BRIEFING 2007 Results & Strategic Guidelines |
MARIO CESAR ARAUJO |
TIM BRASIL
3G Licenses
| • | Brazil's telecoms regulator Anatel, during the 2.100MHz 3G Auction, raised a total of 5.3 bln Reais (US$2.9 bln), representing an 86.7% premium over the bid base prices | |
| • | TIM Brasil acquired 10+10 MHz for all areas, but for: | |
| • | Area III e IV, São Paulo Metropolitan area and North Region: TIM acquired 15+15 MHz | |
| • | Area VII, Cities of Minas Gerais State that are considered part of “TrianguloMineiro”: Despite not having acquired 2.100MHz license in this small area, TIM will be able to provide 3G services based on the current 850 MHz license | |
|
19 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TIM PARTICIPAÇÕES S.A. | |||
| Date: March 07, 2008 | By: | /s/ Gianandrea Castelli Rivolta | |
| Name: Gianandrea Castelli Rivolta | |||
| Title: Chief Financial Officer and Investor Relations Officer | |||
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will a ctually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.