Alejandro ContrerasSynergies

São PauloMarch 15th 2016

INVESTOR DAY

2015 SYNERGIES

Key milestones

• Start of cross-sell in all markets andall segments (fixed, mobile, enterprise)

• Preparation for brands’ unification

• Rightsizing

• Start of field operations’ insourcing in São Paulo

• Start of last mile circuits migration, mobilesites backhaul, and backbone routes sharing

• Start of complex projects to transform the fixed business in São Paulo, develop quad-play offers and unify fiscal entities

• Leveraging of scale in negotiations with suppliers

• Integration of internal communications(e-mail, intranet, etc.)

Delivery and results according to plan

May-Sep15 (R$ M)

4Q15 (R$ M)

Total (R$ M)

Revenues 8 24 32

Opex -32 100 68

OIBDA -24 124 100

Capex -34 -65 -99

OpCF(OIBDA-Capex)

-58 59 1

Opex & CapexAvoidance

130 505 635

Financial results

Positive NegativeImpact in cash flow

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CROSS-SELL EVOLUTIONChannels being leveraged for Cross-Sell (up to Feb.)

MobileCross-Sell

FixedCross-Sell

Vivo Stores

Direct mail (inbound)

Telemarketing (outbound)

Online

Vivo Stores selling GVT products

8

45

156

191

Jun/15 Sep/15 Dec/15 Feb/16

3

9

17

Jun Sep Jan

Mobile Cross-Sell (000s accesses, accum.)

Fixed Cross-Sell (000s accesses, accum.)

17

26

Jun Sep Jan

Contracts B2B (accum.)

126

514

1,241

Jul Sep Jan

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Plan Actual

Date Apr/16¹ Sep/15

FTEs 2,318¹ 2,297

35%

17%

48%Backoffice

Sales & Mkt

Operations

1. Plan assumed two waves: Sept. 2015 (32% of

FTEs; 39% of cost) and Apr. 2016 (the remainder)

RIGHTSIZINGFTE MIX

BY AREA

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199

33

166

OriginalBudget

Real

Capex Avoidance

Capex Employed

FTTS Capex 2015 (R$ MM)

FTTS 2015 (accum. sites)

CAPEX AVOIDANCE: BACKBONE AND BACKHAULBackbone Routes

83275 358

561

811979

Jul Aug Sep Oct Nov Dec

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Vivo

GVT

Route 1: Campinas x LondrinaBenefit: Rent reduction

Route 3: Belo Horizonte x VitóriaBenefit: Capacity Increase

Route 2: Brasília x CampinasBenefit: Quality improvement by redundancy

R$ 337MM

R$ 24MM

CapexAvoidance

OpexAvoidance

SynergyFiber Extension

17K Km

CAPEX AVOIDANCEFiber SP

20 cities with network synergies

Capex Avoidance (2015): R$ 103MM100% GVT

70% GVT

20% GVT

Araraquara

Guarulhos

Campinas

Ribeirão Preto

Indaiatuba

JundiaíVárzea Paulista

Piracicaba

SorocabaVotorantim

Osasco

São Bernardo do CampoSanto AndréMauáMogi das CruzesSuzanoSantosSão Vicente

1

32

1

2

3

GVT

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Baurú

ON TOP OF ONGOING INTEGRATION ACTIVITIES, KEY TRANSFORMATIONAL MILESTONES ARE EXPECTED FOR 2016

1- Non-exhaustive.

Key additional milestones for 20161

• Launch of integrated national 3P portfolio - 2Q

• Use of GVT’s IT systems forfixed customers in São Paulo

• Comprehensive brand unification (stores, media, online channels, field force, etc.) –2Q

• 4P offers – rollout from 2Q (cross-benefits) to 4Q (fully integrated combos)

• Pay TV sales with integrated portfolio and under unified DTH and VOD platform – 3Q

• New customers – 2Q

• Customer base – start migration in 3Q

• Use of GVT’s IT systems for Soho and Small Business in São Paulo – Q3

• Integration of portfolio for Soho and Small Businesses – Q3

Consumer Market (B2C) Enterprise Market (B2B) Operations

• Unification of ERP and fiscal entities (CNPJs) – 2Q

• Implementation of new segmented model for customer care, with insourcing for high-end customers–rollout from 2Q to 4Q

• Expand field operations’ insourcing to high-end customers as well as back-office insourcing in São Paulo – 3Q

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DISCLAIMER

These presentations 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

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.

For a better understanding, we are presenting pro forma numbers combining Telefônica

Brasil and GVT results for all financial and operational indicators for every period as of

January, 2014.