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S&P World Latin Local
Equity Net Minority Enterprise Current Historic Equity Equity Equity Equity Debt
Companies: Value (1) Debt Interest Value D/V D/V (2) Beta (3) Beta (4) Beta (5) Beta (6) Beta (7)
America Movil 963,882 363,978 8,990 1,336,850 27.23% 17.73% 1.12 1.01 0.75 0.91 0.12
Embratel Participacoes S.A. 13,173 2,238 4,842 20,252 11.05% 25.18% 0.53 0.63 0.64 0.56 0.05
Empresa Nacional De Telecomunicaciones 2,356,959 385,754 0 2,742,713 14.06% 13.74% 0.83 0.80 0.81 0.77 0.07
NII Holdings 943 3,774 0 4,716 80.01% 41.68% 0.65 0.77 0.67 0.65 0.18
Oi SA 10,152 28,921 0 39,073 74.02% 32.48% 1.08 1.14 1.08 0.86 0.15
Telecom Argentina 24,167 (3,969) 200 20,398 -19.46% -13.91% 1.31 1.17 0.89 1.05 0.00
Telefonica Brasil 59,983 975 0 60,957 1.60% 3.28% 0.73 1.58 0.63 0.47 0.00
Telefonica Del Peru 7,833 2,213 0 10,045 22.03% 26.57% 0.38 0.35 0.24 0.49 0.17
TIM Participacoes S.A. 21,196 1,632 0 22,828 7.15% 6.78% 0.82 0.81 0.74 0.58 0.07
Source: All information except equity betas S&P CapitalIQ accessed 3/14/14.
(1) Stock prices as of 4/1/13, except NII Holdings, which was 4/5/13.
(2) Quarterly average over the past three years.
(3) Source: Bloomberg accessed 3/14/14. Raw three year monthly betas.
(4) Source: Bloomberg accessed 3/14/14. Raw three year monthly betas based on US dollar denominated returns.
(5) Source: Bloomberg accessed 3/14/14. Raw three year monthly betas based on US dollar denominated returns.
(6) Source: Bloomberg accessed 3/14/14. Raw three year monthly betas based on local currencies.
(7) Case writer estimates
Average 28.7% 15.5% 29.7% 12.5% 4.6% 14.2% 16.9% 29.1% 11.9% 9.5%
Median 13.0% 18.3% 30.1% 12.1% 3.0% 17.2% 19.2% 30.5% 10.9% 11.1%
D/V
D/V
US EMRP
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1,000
500
1,500
33.3%
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5.00%
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Historical Consolidated Income Statements for($000's)
Margins:
Service Revenue Growth 16.9% 14.2% -2.5%
Handset Revenue Growth 10.8% 7.2% -9.0%
Growth in Operating Revenue 16.3% 13.5% -3.0%
Gross Profit on Services 64.5% 66.5% 63.0%
Gross Profit on Handsets -109.2% -123.2% -191.0%
Total Gross Profit 47.8% 49.3% 41.3%
EBITDA Margin 7.1% 10.0% -4.1%
EBIT Margin -3.8% -0.2% -14.3%