2. Agenda
• 2003 Main strategies
• Market performance
High quality client base
Gross additions and churn
Retention and net additions
• GSM launch
• 4Q03 Financial overview
Net revenues
ARPU performance
MOU
SAC
EBITDA
Net income
Tele Nordeste Celular
TND – 2003 Results Page 2
3. 2003 Main strategies
• GSM launch
• Development of new services
– Focusing on the corporate segment
• Qualitative acquisition based on customer value
– Outgoing traffic boost
• Loyalty and retention
– Churn reduction
• Optimization of cost and expenses
• Strict control of bad debt
Tele Nordeste Celular
TND – 2003 Results Page 3
4. High quality client base
Total lines
(in thousands) Consistent growth due to the offers of
∆%
new services
12.8%
2,172
1,926
64.0% 67.5% 1,467
1,232
36.0% 32.5%
694 705
2002 2003
Postpaid
Prepaid
Tele Nordeste Celular
TND – 2003 Results Page 4
6. Boost of the Net additions
Net additions
(in thousands) User profiling as key for
∆% User profiling as key for
acquisition and retention
46.8 acquisition and retention
168.1 246.7
∆%
241.2 259.4 235.6
21.1 72.0
63.4 72.0 11.1
(42.3)
(91.3)
4Q02 4Q03 2002 2003
Postpaid
Prepaid
Tele Nordeste Celular
TND – 2003 Results Page 6
7. All operating companies using GSM
More than 41% of the
Ensure the right option according to client mobility
Ensure the right option according to client mobility population covered
profile
profile
Expanding GSM coverage
Expanding GSM coverage
Client options ⇒ novelty, handset, data, MMS, SMS
Client options ⇒ novelty, handset, data, MMS, SMS
Mobility Profile Technology Option
Local
(ex: only capital)
TDMA and GSM
Regional
(ex: capital and inner cities)
TDMA
National
TDMA and GSM
(ex: only capital)
National and Regional TDMA
Tele Nordeste Celular
TND – 2003 Results Page 7
8. Net revenues performance
Consistently increasing service revenue
Consistently increasing service revenue
Net revenues
(in millions R$) ∆%
8.5 999.5
921.5
904.9
∆% 871.1
4.7
251.3 263.1
237.0 244.4
50.4 94.5
14.3 18.7
4Q02 4Q03 2002 2003
Handset
Services
Tele Nordeste Celular
TND – 2003 Results Page 8
9. ARPU Performance
Stable when compared to
Stable when compared to
client base growth
client base growth
(Growth with profitability)
(Growth with profitability)
ARPU ARPU
(in R$) (in R$)
38.8
37.0 37.2 37.2 40.0
37.5
1Q03 2Q03 3Q03 4Q03 2002 2003
Tele Nordeste Celular
TND – 2003 Results Page 9
10. MOU (in Minutes)
••Outgoing traffic growth thanks to the high value
Outgoing traffic growth thanks to the high value
customer acquisition policy
customer acquisition policy
••Income usage suffered due to fixed lines
Income usage suffered due to fixed lines
blocking calls to our network
blocking calls to our network
113 108 113
104 105 108 107
4Q02 1Q03 2Q03 3Q03 4Q03
2002 2003
Incoming
Outgoing
Tele Nordeste Celular
TND – 2003 Results Page 10
11. Qualitative acquisition based on customer value
SAC SAC decreased due to the gross adds
SAC decreased due to the gross adds
(in R$) increase, but also due to our distribution
increase, but also due to our distribution
channel's strategy
channel's strategy
110
84 91
82
4Q02 4Q03 2002 2003
Tele Nordeste Celular
TND – 2003 Results Page 11
12. EBITDA performance
Affected by the OPEX due to the
Affected by the OPEX due to the
implementation of the GSM network
EBITDA implementation of the GSM network
(Millions R$)
427.7
408.9 124.1
101.5
92.8 90.3
46.4%
40.9% 47,2%
121.8 124.1 43.3%37.2%
37.2% 35.8%
35.8%
48.5% 47.2%
1Q03 2Q03 3Q03 4Q03
4Q02 4Q03 2002 2003
Tele Nordeste Celular
TND – 2003 Results Page 12
13. Growth in Net Income
Net income increased 75% compared to 2002
Net income increased 75% compared to 2002
due to our policy to growth with profitability
due to our policy to growth with profitability
Net Income
(Millions R$)
∆%
75.0
207,5
118,6
2002 2003
Tele Nordeste Celular
TND – 2003 Results Page 13