Telefonica Brasil S.A.

Good morning ladies and gentlemen and welcome to Vivo's fourth quarter 2024 earnings call. This conference is being recorded and the replay will be available at the company's website at ri.telefonica.com.br. The presentation will also be available for download. This call is also available in Portuguese. To access, you can press the globe icon located on the lower right side of your Zoom screen and then choose to enter the Portuguese room. After that, select Mute Original Audio. Para acessar nossa conferência em português, clique no ícone do globo localizado no canto inferior direito de sua tela Zoom e selecione a opção Portuguese Room. Ao acessar a nova sala, certifique-se de silenciar o áudio original. We would like to inform you that our attendees will only be listening to the conference call during the presentation, and then we will start the Q&A section when further instructions will be provided. Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects, operational and financial projections and goals are the beliefs and assumptions of Vivo's Executive Board and the current information available to the company. These statements may involve risks and uncertainties as they relate to future events and therefore depends on circumstances that may or may not occur. Investors should be aware of events related to the macroeconomic scenario, the industry and other factors that could cause results to differ maturely from those expressed in respective forward-looking statements. Present at this conference, we have Mr. Christian Jabara, CEO of the company, Mr. David Malcolm, CFO and Investor Relations Officer, and Mr. João Pedro Soares Carneiro, IR Director. Now, I'll turn the conference over to Mr. João Pedro Soares Carneiro, Investor Relations Director of Vivo. Mr. Carneiro, you may begin your conference.

Good morning, everyone, and welcome to Vivo's fourth quarter and full year 2024 earnings call. Christian Gibada, our CEO, will walk us through Vivo's performance in connectivity and digital services, as well as present our ESG accomplishments for the year. Then, David Melcon, our CFO, will give more details on cost and CapEx control, free cash flow generation, shareholder remuneration, and lastly, an update on our fixed voice migration process. With that, let me turn the call over to Christian.

Thank you, João. Good morning, everyone, and thank you for joining us today. I'm very pleased to present the results for 2024. We finished the quarter and the full year with an excellent performance, driven by our best-in-class products and services that allow us to continue to increase the lifetime value of our customers. We've churned at historical lows. We reached 66.5 million postpaid access in 2024, with a growth of 7.6%, reinforcing our capacity for strong mobile performance in 2025. In fiber, the number of homes connected grew 12.7% this quarter, totaling 7 million access. In total, Vivo reached the largest customer base in our history, with over 116 million access. Total revenues increased by 7.7% in the fourth quarter, with mobile still being the main driver, growing 7%, while fixed revenues grew 8%, the best performance that we have ever registered for this segment. Our top line expansion was fully reflected through 2EBITDA that increased by 7.8% year over year. We invested R$9.2 billion in 2024, decreasing our capital intensity and with that registered R$13.7 billion in operating cash flow, growing 11% year over year, representing almost 25% of our total revenues. In 2024, we paid over 5.8 billion to our shareholders, as remuneration grew by an impressive 22% year-over-year, that was equivalent to 105% of the net income generated in the period, thus meeting our guidance that we hereby reinforce for the next couple of years. On slide four, we show how our performance has been positively impacted by the shift that has been occurring in our revenue mix, with emphasis on postpaid, fiber, and B2B digital services. The mobile segment ended the year representing 65% of our total revenues and still benefiting from our ever-improving customer base. with strong prepaid to postpaid migration figures. As such, postpaid revenues grew 9.1% in the fourth quarter, representing 84% of our total mobile service revenues. In addition to that, fixed revenues grew 8%, the highest annual growth ever, driven not only by the double-digit growth of 12.4% in FTTH, but also by the 21.1% expansion of data, ICT, and digital services, as the take-up of digital solutions by our B2B customers accelerates. I would also like to highlight the replicable market position of our digital ecosystem. Our new businesses, combining B2B and B2C services, now represent more than 10% of our total revenues. With our one-stop shopping position, we're moving further and further from being just a connectivity provider while enhancing the overall lifetime value of our customers. On the next slide, we highlight our main mobile trends. Our mobile base grew 3.3% year-over-year, reaching over 102 million access. Postpaid has been the main driver, with a high single digital growth of 7.6%, reaching over 66 million users. In fact, the number of postpaid quarterly net additions, including M2M and Dungos, was once again very high, nearing 900,000. We are not only attracting more customers, but also increasingly retaining the existing one, being able to maintain postpaid churn below the 1% per month level for another year. This feat, coupled with expanding Orpus, provides a very robust combination to deliver strong results in any scenario. As such, our leadership remains intact, supported by our inspiring brand, a best-in-class infrastructure, a broad, unique portfolio, and powerful channels. Now moving to slide 6, where we can see more about our fiber operation. We reached our 2024 goal of delivering 29 million home paths with FTTH, which grew 11.2% year-over-year, while our homes connected expanded 12.7%, reaching 7 million connections. We have been accelerating the number of quarterly net additions, registering 220,000 new ads in Q4 2024, 20% higher than the expansion C in the same period of 2023. At the same time, we reached our lowest FTTH churn level ever, at 1.49% per month, powered mainly by Vivo Total's superior value proposition. By the end of 2024, 2.4 million FTTH access had Vivo Total, up 85% year-over-year, with revenues from those plans growing more than 90% versus 2023. With a significant portion of new fiber saves in our stores being convergent, we foresee fiber's performance improving even further going forward. We continue to see multiple opportunities to generate considerable returns by investing in fiber. Thus, going forward, we will maintain a selective expansion of our footprint while we step up the penetration of connections over our network. On slide 7, we show you more details on the B2C revenues. We closed the year with 57.2 million individuals as Vivo customers, over a quarter of Brazil's population. On average, our customers are generating a monthly net revenue of 62.3 reais, a number that has an evident improvement trend going forward as we are being successful in capturing additional share of wallet and increasing lifetime value, which translates into customer adherence to the Vivos brand. B2C represents 76% of Vivo's top line and grew 7.2% in 2024, with our steady telco expansion combined with a 23.7% growth in new businesses. Here, I would like to highlight the strong performance seen in the sale of video and music OTTs, with revenue already surpassing R$ 700 million a year, growing close to 30%. We reached 3 million OTT subscriptions by year-end, boosted by our proprietary video platform, VivoPlay, with access soaring 84% in the period. Also, mindful of how important digital safety is to all Brazilians, we recently launched Vivo Modo Seguro, a platform including services as smartphone insurance, blocking off spam calls and tips of how to identify frauds and scams. With Modo Seguro, we want to ensure that our customers not only have the best connection, but also secure experience in the digital environment. On the B2B side, our revenue growth was even higher, up 8.5% year over year in 2024, led by the outstanding performance of digital B2B that expanded over 20% in the same period. Among the vast number of digital B2B solutions that we provide to our clients, the main driver of this year's results were cloud solutions with revenues getting close to 2 billion reais, up 32.6% year over year. This derives from our broad portfolio of providers as well, services of hyperscale such as Microsoft, Amazon, and most recently Google, benefited by the acquisition of IPNet, the main integrator of Google solutions in Brazil. The company was consolidated in the results in October 2024, contributing with 64 million reais of revenues in the quarter. This showcases not only our ability to pick the right companies to join our ecosystem, but also strength Vivos as a key cloud solution provider in the B2B market. Moving on to our ESG actions on slide 9. First, I would like to announce that we joined the Dow Jones Best-in-Class World Index, which is considered the most important sustainability index in the world. We are the only Brazilian telco in the list, being leaders in the Americas and having the sixth best telco sector performance globally. reaching a score of 88 points in S&P Global Corporate Sustainability Assets. In our recycling program, Vivo Recicle, we achieved a new record of 37 tons collected, three times more than last year's amount. The social site Fundação Telefônica Vivo that completed 25 years of activity in Brazil invested 50 million reais in 2024 and was able to benefit 2 million people across the country. Also, in vivo, half of the internship and training programs positions were allocated to black talent, which reinforces our diversity pillar and stresses its importance of the company's growth. With that, I will pass the word to Davi, who will comment on our financial performance. Thank you.