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4Q17 Results

Stabilization of operations with cost efficiency, higher margins and operational improvements in 2017

In 2016 and 2017, the restructuring process on several fronts enabled the Company to stabilize its operation:

  • Management’s priorities were quality improvement, digital transformation, cost control, cash management and debt restructuring with the approval of the Judicial Reorganization. Important results on these fronts have been preparing Oi for a new investment cycle.

Initiatives designed to increase operational efficiency and improve customer experience resulted in consistently better quality and operational indicators.

  • Infrastructure upgrade, network capacity expansion and preventive actions designed to increase productivity and improve customer service quality, as well as service and process digitalization, created synergies for the Company.
  • As a result, Oi recorded an improvement in customer satisfaction in 2017, with continuous reductions in ANATEL (-23.0% y.o.y.) and Small Claims Court (JEC) (-46.3% y.o.y.) complaint indicators.

The intensification of the digital program enabled efficiency gains and a better customer experience, with process automation (robotization and artificial intelligence) and increased digitalization of sales and customer service (e-care, e-billing and e-commerce).

Cost reduction due to increased operational efficiency came to R$ 1.5 billion in 2017, while routine EBITDA totaled R$ 6.2 billion, 2.3% higher than the estimate in the Judicial Reorganization Plan.

Oi’s cash position closed 2017 at R$ 7.0 billion, in line with the Judicial Reorganization Plan’s Report, which projects a cash position of R$ 6.188 billion at the end of 2018.

The approval of the Judicial Reorganization Plan by a substantial majority will allow Oi to reduce its debt by over R$ 35 billion, enabling us to resume the investment cycle.

Structural fronts have stabilized the operations and the Company is now preparing to begin a new growth cycle through the acceleration of investments funded by the capital increase.

  • The additional CAPEX plan funded by the capital increase includes annual investments of R$ 7 billion for the coming years, with strategies for the mobile and fixed line network supporting our business transformation, growth and sustainability.

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(¹) This translation is still subject to the auditors review

(¹) This translation is still subject to the auditors review