STRATEGIC PLAN TRIENNIUM 22-24 - CONFERENCE CALL - Mziq
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STRATEGIC PLAN
TRIENNIUM 22-24
July
2021
CONFERENCE CALL
WITH THE MARKETSTRATEGIC PLAN NEW OI - TRIENNIUM 22-24
IMPORTANT NOTICE
This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and
the applicable Brazilian regulations. Statements that are not historical facts, including statements regarding the beliefs and expectations of
Oi – under Judicial Reorganization (“Oi” or “Company”), business strategies, future synergies, cost savings, future costs and future liquidity
are forward-looking statements.
The words “will”, “may”, “should”, “could”, “anticipates”, “intends”, “believes”, “estimates”, “expects”, “forecasts", “plans,” “aims” and
similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. There is no
guarantee that the expected events, tendencies or expected results will actually occur. Such statements reflect the current views of the
Company’s management and are subject to a number of risks and uncertainties. These statements are based on many assumptions and
factors, including general economic and market conditions, industry conditions, corporate approvals, operational factors and other factors.
Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. All forward-looking
statements attributable to the Company or its affiliates, or persons acting on their behalf, are expressly qualified in their entirety by the
cautionary statements set forth in this notice. Undue reliance should not be placed on such statements. Forward-looking statements speak
only as of the date they are made.
Except as required under the Brazilian and U.S. federal securities laws and the rules and regulations of the CVM, the SEC or other regulatory
authorities in other applicable jurisdictions, the Company and its affiliates do not have any intention or obligation to update, revise or
disclose any changes to any of the forward-looking statements herein in order to reflect current or future events or their developments,
changes in assumptions or changes in other factors affecting the forward-looking statements herein. You are advised, however, to consult
any further disclosures the Company makes on related subjects in reports and communications that the Company files with the CVM and the
SEC.
JUL
21
1Transformation history
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
SINCE 2018, OI HAS BEEN PAVING THE WAY which
WILL TAKE IT BACK TO GROWTH
2016-2018 2019-2020 2020-2021
JR PLAN STRATEGIC NEW STRATEGIC MODEL AND
TRANSFORMATION PLAN AMENDMENT TO JRP
• Debt Restructuring • Focus on Core • Future Vision and Return to Growth
• Cash Protection • Legacy Optimization • Structural Separation
• New Governance • Assets Sale / M&A • UPIs Sales
• Capital Increase • Funding • Reconfiguration
• Operational Recovery • Simplification and Operational Efficiency
• Investment Resumption
JUL
21
2Transformation history
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
DELIVERING SOLID OPERATING RESULTS...
2.5 MM 313% 10.5 MM 152% 24%
Average
FTTH HCs CAGR HPs CAGR
(1Q/21) (1Q19 to 1Q21) (1Q21) (1Q19 to 1Q21) take-up
EXPANSION (1Q21)
77% 69% 75% less
consideration among preference among Oi rejected among Oi
Oi Fiber customers(1) Fiber customers(1) Fiber customers(1)
OI BRAND versus 34% of Broad Band versus 24% of Broad Band 4% versus 16% of Broad Band
customers in general customers in general customers in general
MARKET TRANSPARENCY, DELIVERING ON COMMITMENTS
CREDIBILITY
JUL Notes: (1) Data correspond to the growth in percentage of Oi's consideration and preference indexes in the Total of the study sample versus Total Oi Fiber Customers and a drop in the percentage of rejection of Oi
21 considering the difference of the Total of the study sample versus Total Oi Fiber Customers. Study with quantitative methodology carried out by Ipsos at the request of Oi Movel SA, with national coverage, from 04 to
18/01, 04 to 24/02 and 04 to 24/03. 2919 interviews were carried out in the total quarter (Jan to Mar 2021), with 960 interviews in January-21, 979 interviews in February-21 and 980 interviews in March-21, with a sampling
error margin of 3.16 percentage points (pp), 3.13 percentage points and 3.13 percentage points respectively. 3Transformation history
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
... AND RECOVERY OF BRAND PERCEPTION WITH
CUSTOMERS
I was surprised by a call from Oi to ask if I
Connection stability, speed and had any problems, as I had unplugged the
support. Should something fiber device for a few hours – amazing the
happen, service via website or proactive customer service!
phone is very good
4Q20 1Q21
The guy who went to install was super professional. He described all my
contracted services. Impeccable service quality. Anything I asked he would
answer and that's it. He didn't need to ask anyone. He knew what he was
talking about. We felt confident with the technician, who was well prepared,
with solid answers.
1Q21
JUL
21 Source: Ipsos Institute: Quarterly Survey: Fiber Retail Acquisition Tracking, real testimonials from Oi Fiber customers
4Transformation history
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
The divestment and funding/refinancing programs have
made it possible to finance Oi's transformation with a
strong focus on fiber
DIVESTMENT PROGRAM
2020 Unitel – R$ 4.2Bn
2020/2021 Real Estate – R$ 0.3Bn
2021 UPI Towers – R$ 1.1Bi
R$ 34.6
2021 UPI Data Centers – R$ 0.3Bn
2021/2022 UPI Mobile – R$ 15.8Bn
BN CAPEX FOR THE LAST 5 YEARS
R$ Million
2021/2022 UPI Infra Co – R$ 12.9Bn R$ 31.5 Bn 7,813
In progress UPI TV Co 7,265
6,078
5,629
FUNDING/REFINANCING PROGRAM
4,759
2019 Capital Increase – R$ 4.0Bn
2020 Oi Mobile Debentures – R$ 2.5Bn 2016 2017 2018 2019 2020
2020/2021 PIS/COFINS
Credits – R$ 3.1Bn R$ 14.1
2021 Infra Co Convertible BN 65%
Debentures – R$ 2.5Bn % Fiber 39%
15%
2021 Mobile Bridge Loan¹ – R$ 2.0Bn
JUL
In progress DIP refinancing
21
(1) Disbursement not yet made. Depending on the fulfillment of conditions precedent 5what lies ahead
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
And now we enter the FINAL phase of our
transformation
• Future vision
PHASE 3: 2020-2021 • Sale of UPIs and Structural Separation
NEW STRATEGIC MODEL AND
• Reconfiguration
AMENDMENT TO JRP
PHASE
4 CLIENT CENTRIC
2022-2024
SIMPLE
NEW OI
MUCH MORE THAN CONNECTIVITY
1 2 3 4
ORGANIZATIONAL
CORE BUSINESS
TRANSFORMATION AND CONCESSION INFRA CO
ACCELERATION AND NEW
COST STRUCTURE RESOLUTION DEVELOPMENT
REVENUE SOURCES
READJUSTMENT
COMPLETION OF STRUCTURING M&A OPERATIONS
JUL
21
6what will be the new OI
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
OI Group after M&A operations
New
Oi
• B2C and SME customers
Fiber, Copper, TV, Digital Services ASSET LIGHT,
CONNECTIVITY AND
• Clients B2B (Oi Soluções)
DIGITAL SERVICES
Connectivity and IT solutions
PLATFORM,
• Infrastructure customer CENTRIC
Digital, IPTV, DTH, Copper
42% (1) 100% 100%
Fiber Field Operations Contact Center
Infra co Infrastructure
NEUTRAL NETWORK WITH ACCELERATED National physical presence in Customer relationship and service
AND SUSTAINABLE INVESTMENT technical and logisticAL services platform
• FTTH Network, Equipment, Operation and • Installation and maintenance of networks • Customer service on voice, text,
Wholesale Commercial Activities and equipment at customers' homes applications and chat platforms
• Backbone, Backhaul and ducts • Logistics Operation • Services for Oi and third parties, through
• Wholesale and FTTH contracts in neutral • Over 3.300 Municipalities Oi Soluções
network logic • + 23 thousand Employees • + 12 thousand Employees
JUL
21 Notes: (1) Participation after Globenet merger
7what will be the new OI
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
THE VISION and MISSION OF New OI
vision New mission
BE the LEADER IN DIGITAL
Oi
SOLUTIONS AND FIBER OPTIC
CONNECTIONS which IMPROVE THE CREATE NEW FUTUREs by enabling
life OF PEOPLE AND COMPANIES the DIGITAL LIFE FOR everyone
ACROSS THE COUNTRY
LONG-TERM UNMATCHED MASSIVE SALES
+ 50MM RGUs ACCESS TO THE
RELATIONSHIPS AND BRAND CAPILLARITY IN FORCE AND
13(1) MM CUSTOMER’S
RECURRING AWARENESS TERMS OF PHYSICAL SPECIALIZED
RESIDENTIAL HOMES
REVENUES PRESENCE TECHNICAL TEAM
JUL
21 Notes: (1) Of these, 1.2MM of SME RGUs
8what will be the new OI
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
NEW Oi: REINFORCING OUR STRATEGY
AND EXECUTION
SIMPLICITY AND
CLIENT CENTRIC DIVERSIFIED REVENUE
OPERATIONAL EFFICIENCY
Simplicity leading to full focus on Leveraging Oi's scale and assets to
Reorganized company, simpler, lighter
customer service – for offers and develop and capture new revenue in
and more efficient
operations multiple areas
LIGHT and AGILE company, DIGITAL FIRST and OMNICHANNEL Enhancement of NEW
focused on the future, asset light support B2C BUSINESSES
Development of NEW
SIMPLE offers that MAKE SENSE in DATA DRIVEN & ANALYTICS in all VERTICALS leveraged by Oi's
the customer's life approaches competitive differentials
COST REDUCTION and Accelerated Time-to-Market Oi Soluções: ORCHESTRATOR
SIMPLIFICATION through legacy with MODULAR PORTFOLIO OF ITC and IT SOLUTIONS
reduction and structural separation
JUL
21
91. core business acceleration
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
On fiber, results and high nps show the possibility to
increase revenue per hc
OI FIBER RAMP UP OI FIBER LEADERSHIP AND VALUE CAPTURE
Oi Fiber Market Share ¹(100% = Fiber) – 1Q/21
2.5 MM 313% 10.5 MM 152%
HCs (1Q/21) CAGR HPs (1Q/21) CAGR 92 %
(1Q/19 to 1Q/21) (1/Q19 to 1Q/21) BOA Oi Fiber NPS is 25%
VISTA
higher than the global
benchmark
In the municipalities where OI operates with FTTH, OI
has been gaining market share in the UBB² market 36%
Manaus 61% 70%
BELÉM SÃO LUIZ
Room to start
and fighting for net adds leadership with the ISPs capturing more value
per Fiber customer
78% 46%
Mkt Share UBB² (128 Municipalities3) 79
RIO
%
PORTO
VELHO PALMAS 44%
SALVADOR
BRANCO
39%
Oi Oper.1 Oper.2 ISPs BRASÍLIA
62.7 Gap Oi vs Oper. 1 28%
GOIÂNIA 40%
Oi Fiber Leadership 43% BELO
HORIZONTE Oi FIBER IN SP
CAMPO
52 Cities GRANDE Start of operation in 2021
58.1 bps 36.6 13 State Capitals
24.8
46%
13.4 bps RIO DE
JANEIRO
23.2
16.7
10.5 12.1
4.6
1Q19 1Q20 1Q21
JUL
21 Source: ANATEL Base of May/21 || Oi Comptroller || Notes: (1) Large operators were considered individually and small operators were consolidated (according to ANATEL classification) || (2) Considered speed above 34 Mbps (3): Municipalities with Oi Fiber
operation
101. CORE BUSINESS ACCELERATION
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
B2C+SME: plan maintains expansion of hcs and arpu expansion
through the sale of higher speeds and new services up-selling
MAIN NUMBERS – FTTH B2C + MAIN VALUE GENERATION LEVERS
SMALL ENTERPRISES A. New UX (new IT stack )
Fiber Broadband – 2021 to 2024 “hard bundles” HYPER Lego (Plug-inS)
(MN) SIMPLIFICATION
Oi Total
Oi Total Play
Residencial
4.5 MM Oi place IPTV
~8.1 32% Oi Total
Conectado
Oi Total Solução
Completa
Shortest time to market
Less space to make ott
VOIP
FibEr
Oi Play
~3.5 CAGR mistakes
(Previous) (Present/Future)
2021E 2022 2023 2024
24% 24% 25% 26% TakeUp1 (%)
B. Sale of higher speeds and new services leveraging the HC ARPU
C. Transformation in the business model through greater digitization and analytics
FTTH² Revenue Evolution – 2021 to 2024
(MN) D. Building an ecosystem of partners to offer dedicated services to Retail and
+6,300 MM with focused offers for the SME segments:
~9,300 • Digital Marketing (eg.: Aceleraí)
46% • Online Sales (eg.: OiList)
~3,000
CAGR • Security
2021E 2022 2023 2024 • Oi Expert
JUL
• Vertical Solutions
Note: (1) Calculated with accesses from all BUs (2) Comprises Fixed, BB and TV
21 Source: Oi Controllership, Anatel.
111. CORE BUSINESS ACCELERATION
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
In B2B, Oi soluções offsets the reduction in legacy voice and
connectivity revenues with the growth of it solutions, with
the potential to be one of the major players in the segment
TRANSFORMATION OF OI'S B2B BUSINESS...
ACTION PILLARS
1 NEW OI SOLUÇÕES
POSITIONING 2 BENCHMARKING WITH
CUSTOMERS AND 3 REVIEW OF THE ICT PORTFOLIO
AND INTERNAL CAPACITIES
…..ANCHORED ON IT GROWTH
PARTNERS WITHIN OI SOLUTIONS
CONNECTIVITY “ORCHESTRATOR” OF ICT IT Revenue (R$ Million)
CONNECTIVITY ++
PROVIDER SOLUTIONS / DIGITAL
•
•
Data
Voice
•
•
Vcpe
Mpls
•
•
IoT
Cloud
•
•
Connectivity + IT + Digital + Security
AI / Big Data / Cloud / Private Networks
21%
• PBX • Wan • MEC • Management and Operation Services CAGR
• Sd-wan • Security • Platforms
~1,250
• Specialized vertical solutions
CONTEXT ~700
ACCELERATED IT Revenue (R$ Billion)
GROWTH OF
THE IT MARKET1 25.3 2022 2023 2024 2025
21.3
15.8 17.8
IT Revenue
/ Total B2B 26% 47%
2017 2018 2019 2020
JUL
21 Source: (1) B2B and IDC Intelligence
121. New Revenue Sources Beyond Connectivity
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
oi IS ALREADY DEVELOPING NEW REVENUE streams BASED
ON ITS UNIQUE ASSETS AND SCALE...
PORTFOLIO AND ECOSYSTEM BUILDOUT STRATEGIC ASSETS
EXTENDED CUSTOMER BASE
Digital Content
Content OI PLAY
Platform
Home
+ 50MN RGU + 17MN + 40MN
13MN(1) Residential customers customers
630K client companies in B2B
Wallet
CAPABILITIES
Marketplace
Healthcare
CAPILLARITY 4.8 Thousand(2) +5.4 Thousand
Municipalities Municipalities
Cloud, Security
OI and Managed
Services
Education CUSTOMERS ACCESS TO THE
Technical and CUSTOMERS' 15.7 Thousand 57 Thousand
Logistics Services HOME Field Technicians Postmen
Technical Assistance
Service (remote or on-
site)) LARGE LOCAL
Financial Energy +1.3 +1.7
SALES FORCE
Services 3.7 Thousand Thousand Thousand
partners(3) Stores Stores
JUL
21 Notes: : (1) Of these, 1.2MM of SME RGUs (2): 3.3 thousand Municipalities served by SEREDE (3) Door to door partners
131. New Revenue Sources Beyond Connectivity
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
... CONNECTING PARTNERS AND CUSTOMERS THROUGH A
multi-sided STRATEGY THAT BRINGS DIGITAL TO PHYSICAL
PORTFOLIO AND ECOSYSTEM BUILDOUT
PARTNERS/
Digital Content SELLERS
Content OI PLAY
Platform
Home
CHANNELS
Wallet
PHYSICAL
FIGITAL
Marketplace
Healthcare
PAYMENT
Cloud, Security
OI and Managed
Services
Education CUSTOMERS FIGITAL
Technical and
Logistics Services DIGITAL
ANALYTICS
Technical Assistance
Service (remote or on-
site))
Financial Energy CUSTOMERS
Services
INNOVATION
JUL
21 Notes: : (1) Of these, 1.2MM of SME RGUs (2): 3.3 thousand Municipalities served by SEREDE (3) Door to door partners
141. New Revenue Sources Beyond Connectivity
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
Initial OBJECTIVE CALLS FOR between BRL 1.0 and 1.5 billion of
incremental revenue by 2024
EXAMPLES OF
DIVERSIFICATION EXAMPLES MARKET SIZE 2020
CUSTOMER VALUE
Structural Year of % of New CUSTOMERS
Separation Diversification Revenues (1) Recurring Revenue
- 2010 43% Digital Home(2) Content(2)
Client A – R$ 199.70 / month
2018 2007 39% Oi Fiber 400 Mbps R$ 149.90 / Mth
- 2007 39% OI PLAY R$ 29.90 / Mth
BUSINESS VERTICALS
2002 2006 38% R$ 4Bn R$ 7Bn R$ 19.90 / Mth
2018 Retail Credit Card(5)
2015 36% Logistic(3) Client B – R$ 699.80 at month X
- Online(4) & Insurance(6)
2008 35% Oi Fiber 1Gbps R$ 499.90 / Mth
-
2015 32% Headphone R$ 199.90
-
2005 31% R$ 23Bn R$ 126Bn R$ 49Bn
2005
(2)
Client C – R$ 239.80 at month Y
- 2016 22% Gaming(2) Telemedicine
Devices Smart Home R$ 199.90
- 2015 21%
Telemedicine Health R$ 39.90 / Mth
2015 2016 20%
13% R$ 4Bn R$ 3Bn
- 2008
Oi 2024 revenue
- 2015 7% R$ 1.0-1.5Bn
JUL
SELLERS target
Notes: (1) Safaricom, AT&T, Singtel, BT, Telstra, Deustche Telekom, O2 and Orange data refer to the period 2018-2020; Docomo and Verizon are for the period 2017-2019; TDC, SK Telecom and Jio refer to the period 2018-2019 (2) Statista
21 data (3) Data extrapolated from IBGE (Post Office and Delivery); (4) Neotrust data; (5) Abecs Data (6) SUSEP Life and Home Insurance Data
152. ORGANIZATIONAL TRANSFORMATION
what will be the new OI
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
To unlock this value, New oi will reorganize itself
FOR EXECUTION
STRUCTURING CAPABILITIES
CUSTOMER ECOSYSTEM
VALUE GENERATION EXPERIENCE PARTNERS AND
(CX/UX) SELLERS
Transition and
B2C and SME Management of the
Legacy Base
(Copper / DTH and Mobile)
+ CHANNELS
e-Commerce, stores,
DIGITAL
ANALYTICS
PAP, Telesales, Oi Place, Big Data, Automation,
O2O, Partners Pods, Prototyping
Innovation,
Oi Solutions incubation, new
revenue streams CUSTOMER FILD TEAMS
SERVICE Local technical
Tahto + Oi Place + presence, logistics
Joice + APPs Oi + WA Serede
JUL
21
162. Cost Structure Readjustment
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
With the change of model, Oi started a cost reduction program
with the objective of delivering additional savings of MORE
THAN BRL 1B annually
IN 2019, WE ANNOUNCED A MAJOR COST REDUCTION MORE THAN BRL 1B OF ADDITIONAL SAVINGS
DCO 2.0
PROGRAM (DCO 1.0) DELIVERING BEYOND THE BRL 1B WE (ANNUALIZED) IN NEW COST CUTTING PROGRAM
HAD INITIALLY PROJECTED
Acceleration of existing Redesign and strengthening
2020 (R$ MM) initiatives (eg copper of Spending Governance
Third Party decommissioning)
Main Levers Services
530
Digitalization
Rent & Operation of unprofitable Readjustment of the support
Energy efficiency 221 regions via partnerships areas of New Oi and Infra Co
Insurance
Digital Channels
Marketing 142 Increased inventory turnover Simplification of the portfolio,
Process Simplification and rework / equipment digitization of services and
Plant 124
reuse process automation
Contract renegotiation Maintenance
Portfolio Simplification Switch-off of legacy IT Optimization, closing and
BDP 94 platforms sale of stores, buildings,
Operational efficiency central offices and DCs
Legacy reduction Personnel 75
Sales quality ~ R$350M(1) ~ R$320M(1) ~ R$150M(1) ~ R$400M(1)
Others 10 SALES, MARKETING & BUSINESS IT - SYSTEMS NETWORK &
Collection actions
CUSTOMER CARE ORGANIZATION AND PROCESSES OPERATIONS
JUL Reorganization Total Savings 1,176 AND SUPPORT
21 (1): Estimated annualized values
172. Cost Structure Readjustment
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
The reduction program associated with the M&As aims to
transform the company's cost structure in order to make the new
oi much lighter, agile and sustainable
After M&A closing From now till after After sharp growth phase of
100% M&As transition FTTH
Intercompany activated with UPI sales
Legacy
~25%
~67%
~17% Cost growth associated
with revenue growth
86% • Mobile network ~7%
management and
operation ~8%
~3%
~40%
• Infrastructure/ • Optical Fiber ~60%
transmission Management and • Cost of content
contracts Operation with • Cost referring to UPIs
(Towers, physical
programmers
~28%
• Wholesale sold, but outside the
space, capacity)
commercial negotiations scope. • FTTH base growth
• Management and cost
operation Operation of the • Structure simplification
14% DTH network ~12%
• Efficiency gains ~7%
2021 cost base Mobile UPI Infra Co UPI TV Co Cost structure Growth cost New cost New cost
Perimeter Perimeter Perimeter adjustment base 2021 base 2024
JUL optimizations
21
183. Concession RESOLUTION
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
Model migration and arbitration are two critical elements to
reduce THE IMPACT OF REDUCING LEGACY REVENUE
THE BA;ANCE OF TOTAL REVENUES AND COSTS AND FUTURE SUSTAINABILITY OF STFC IS A
PRECEDENT CONDITION FOR MIGRATION FROM THE PUBLIC TO THE PRIVATE REGIME
MIGRATION FROM CONCESSION TO AUTHORIZATION SHOULD ARBITRATION PROCESS MAY GENERATE POSITIVE
SIGNIFICANTLY REDUCE STFC CASH AND OPEX CONSUMPTION IMPACT OF SEVERAL R$ BILLION
SUSTAINABILITY
OUTDATED
OBLIGATIONS Financial economic
Unsustainability
balance
Compensation for the
OBLIGATIONS CABLE AND PGMU balance use of assets in the
OF PUBLIC EQUIPMENT provision of services
COST REDUCTION FROM OTHER STFC
TELEPHONES THEFT
OBLIGATION WAIVERS
~ R$130M ~ R$200M
2h 21 2h 22 / 1Q 23 Jul/21 4Q 22 / 1Q 23
Definition of Migration Conclusion of Admission Term1 Conclusion of
JUL Model - Anatel Expectation Expectation
21
(1): waiting for signature 194. DEVELOPMENT OF INFRA CO
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
With the new controlling partner, Infra Co will have
financial capacity to maintain the strong fiber expansion
EBITDA² INFRA CO
R$ Billion
5.4
CAPITAL STRUCTURE
49%
CAGR Structure Structure 90 days
at Closing Post Closing
1.1 BTG 51.0% 57.9%
Additional Primary +
2021 2022 2023 2024 2025 Globenet Contribution
Oi 49.0% 42.1%
According to market benchmarks, Infra Co can be traded at
multiples greater than 10x EBITDA
EV/EBITDA (1) 20.0
16.7
8.3
Fiber Infra COs
7.6 8.0
Possible IPO as a future alternative
8-12x
(Average) Chorus CETIN TIM Italy (Elliott Altice SFR Altice Portugal
(estimated) estimated) FTTH FTTH
Multiples advertised in transactions (including acquisition premium)
~R$ 22 Bn ~R$ 9 Bn³
Potential EV Infra Co (10 * (EBITDA(2) 2025) * ~40% stake Oi)
Assuming a multiple of 10x, the
potential Infra Co EV appreciation EV Infra Co for New Oi Oi’s Current Mkt Cap
~R$ 54 Bn is greater than 2x current EV
(10 * (EBITDA(2) 2025)
JUL
21 Notes: (1) Barclays, Commerzbank, JP Morgan, Deutsche Bank, Factiva, GlobalData, Elliott, CETIN and Accenture Analytics; (2) Ebitda 2025 estimated in the EY report (3): amounts referring to 07/12/21
204. DEVELOPMENT OF INFRA CO
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
Infra co FTTH expansion model / oi allows efficient,
competitive and future proof growth
Unique physical presence: CURRENT TOTAL COST PER HP ENSURES TECHNICAL SUPERIORITY
• Field force with over 20.000 AND GROWTH CAPACITY, WITH LOWER TCO COMPARED TO OTHER
technicians
MARKET ALTERNATIVES
• Presence in over 3.000
municipalities
270
140
Largest fiber network in Brazil: Current HP unitary cost
HP unitary comparable to ISPs
• ~400 thousand km of optic fiber cost
• Metropolitan network in over
2,000 cities • Top quality, redundant
• Smaller fiber segments,
TX and OLTs
less subject to failure
• Lower expansion costs
and service interruption
for new clients
Architecture focused on
quality and efficiency:
• High reliability, availability and
• Underground primary
performance
• XGSPON OLTs network
• Network topology prepared to • Clients house supervision • Addition of new CDOEs
future growth and a lower TCO • Lower operational costs without future network
JUL duplication
21
21what lies ahead
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
IN short, To build the New Oi, the company has been
overcoming different types of execution challenges
RJ CHALLENGE M&A CHALLENGE FUNDING CHALLENGE OPERATIONAL CHALLENGE
• New governance • Towers and Data Centers • Consent to implement • Continue to expand fiber connectivity
concluded the financial alternatives core business
• JR Plan amendment
provided for in the
approved with vast • Mobile and Infra Co • Accelerate new revenue streams both
amendment to the JR
majority and in execution executed on schedule on B2B and B2C leveraging extensive
Plan
customer base and existing assets
• JR exit estimated for 1H22 • TV Co in progress
• Infra Co Bridge raised
after conclusion of M&A • Drastically reduce costs to make them
• Structural Separation in
operations • Mobile Bridge signed aligned with the new company size
progress
• Bonds refinancing in • Address Concession sustainability
preparation
• Ensure Infra Co success
JUL
21
22Evolution of main indicators
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
NEW Oi: evolution of MAIN
operational INDICATORS ¹
GUIDANCE ON KEY INDICATORS
R$ 14,8bn - R$ 15,5bn NET • HC CAGR of ~31% between 21-24 possibly reaching ~8MM in 2024
New Oi REVENUE
2024 • Average revenue CAGR² per HC of ~11% between 21-24, possibly reaching
~R$94/month
• Oi Solutions revenues stable at ~R$ 2.6Bn, with IT revenues possibly growing
its share to ~40% in 2024
EBITDA
R$ 1,9bn - R$ 2,3bn • Legacy revenues can reduce to ~R$0.5Bn in 2024
New Oi • New revenues possibly reaching ~R$1.5Bn in 2024
2024
• EBITDA margin of the new business could reach ~20% by the end of 2024
(~18% for the full year) and continuing the growth trend with expected
stabilization at ~25%.
• EBITDA Margin of New Oi (including legacy) could reach ~16% by the end of
2024 (~14% for the full year).
17% - 19% 13% - 15% EBITDA
• Legacy costs expected to no longer burdening New Oi from 2026 onwards
New Business New Oi MARGIN
2024 2024 • CAPEX/Revenue starting at ~14%, possibly reaching ~7.8% in 2024 and
expected to stabilize at even lower levels from 2026 onwards
JUL
21 NOTE: (1) The guidances described herein represent the Company's expectations and projections, which were based on reasonable assumptions and are subject to variations due to
several factors, many of which are not and will not be under the Company's control. (2)B2C + small companies;
23Evolution of main indicators
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
NEW Oi: CAPITAL STRUCTURE
READJUSTEMENT
DEBT STRUCTURE (CURRENT1)
2024
BNDES Repayment
R$ 4.3 Bn R$ 4.0 Bn Cash sweep
~6,6 x
BNDES DIP Net Debt / EBITDA
Banks and ECAS
Oi Stand Alone
R$ 4.4 Bn R$ 8.8 Bn Infra Co Deb Settlement
ECA 2025 BONDS
Mobile Bridge Loan Sustainable Leverage
R$ 5.3 Bn R$ 1.4 Bn Settlement ~3,7 x
BANKS Target Level ->
OTHERS
Intermediary Scenario Net Debt / EBITDA
DIP Refinancing in Which Net Debt / Proforma ~40.0%
EBITDA > Net Debt
INFRA CO MOBILE DEVELOPMENT
JUL
21 NOTE: (1) Fair Value, 1Q21
24ESG agenda
STRATEGIC PLAN NEW OI - TRIENNIUM 22-24
new OI: CONTINUING TO EVOLVE in the
3
esg agenda objectives 17
HEALTH
AND WELL BEING 4
PARTNERSHIP QUALITY
Oi’s ESG objectives prioritize adherence to 12 of the 17 existing SGDs ¹,
FOR THE GOALS EDUCATON
aiming to be a reference at ESG MSCI rating
16 5
PEACE, JUSTICE GENDER
ENVIROMENTAL AND STRONG EQUALITY
INSTITUTIONS
100% renewable sources energy matrix (solar, biomass,
biogas, PCHs)
13 7
Recovery capacity growth and equipment reuse CLIMATE AFFORDABLE
ACTION AND CLEAN ENERGY
SOCIAL
12
RESPONSIBLE 8
Oi Futuro Institute: Social impact on Education, Innovation CONSUMPTION AND DECENT WORK
and Cultural programs, focusing on inclusion and diversity; PRODUCTION AND ECONOMIC
GROWTH
Internal programs of diversity and inclusion
11 9
SUSTAINABLE INDUSTRY,
GOVERNANCE CITIES AND 10 INNOVATION AND
COMMUNITIES REDUCED INFRASTRUCTURE
WOB (Women on Board) stamp obtained in 2021; Obtain Pro- INEQUALITIES
Ethics Stamp in 2023; Return to B3 index: ISE
JUL
21 Note: (1) The 17 Sustainable Development Goals (SDGs) were established by the United Nations (UN) in 2015 and comprise a global agenda for the
construction and implementation of public policies that aim to guide humanity until 2030
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