26th Apr 2005 17:59
Telefonica SA26 April 2005 ANTONIO J. ALONSO UREBA Director, General Secretary and Secretary to the Board of Directors TELEFONICA, S.A. Telefonica S.A., as provided in article 82 of the Spanish Stock Market Act (Leydel Mercado de Valores), hereby reports the following SIGNIFICANT EVENT During the Fourth Investor Conference that is being hosted in Barcelona on April25th and 26th, the company communicates the expected consolidated performance ofthe Telefonica Group for the period 2004-2008, based on key financialindicators. These financial projections are as follows: TELEFONICA GROUP 2004 Reported under IFRS (Euros CAGR (*) 2004-2008 in Million) (%) Revenues 30,270.7 +7%/+11% Operating Income Before D&A 12,129.6 +8%/+12% Operating Income 6,463.0 +13%/+19% CAPEX 3,771.9 +3%/+7% (*)CAGR stands for Compounded Annual Growth Rate. Furthermore, Telefonica announces it expects to generate a free cash- flow ofmore than 36 billion euros during the period 2005-2008. As proof of the company's commitment to shareholder remuneration, Telefonica communicates its decisionto execute a renewed and extended 6 billion euros share buyback program until2007. This 6 billion euros includes the pending execution of the 2003-2006Program. The execution schedule of these share buy-backs will be conditioned to both thepace of cash-flow generation and to the share price level, all subject to anyapplicable limitations established by law, regulation and by the Company'sBylaws. In terms of guidance calculation, Operating Income before D&A and OperatingIncome exclude other exceptional revenues/expenses not foreseeable in 2005-2008.These exceptionals amounted to -303.5 MM• in 2004 and are therefore alsoexcluded, meaning a calculation base for guidance of 12,433.1 MM• for OperatingIncome before D&A and 6,766.5 MM• for Operating Income, respectively. PersonnelRestructuring and Real Estate Programs are included as operating revenues/expenses. All projections refer to local currency, that is assuming constant exchangerates as of 2004, and exclude changes in consolidation, other than BellSouthassets in Argentina & Chile acquired by Telefonica Moviles in 2005, and Atriumacquired by Telefonica Latinoamerica. Cesky Telecom is incorporated into theconsolidated accounts in the second half 2005. Madrid, April 26th, 2005 This document contains statements that constitute forward looking statements ofthe Company or its management, including statements regarding the intent, beliefor current expectations of the customer base, estimates regarding future growthin the different business lines and the global business, market share, financialresults and other aspects of the activity and situation relating to the Company. Such forward looking statements are not guarantees of future performance andinvolve risks and uncertainties and actual results may differ materially fromthose in the forward looking statements as a result of various factors. Analysts and investors are cautioned not to place undue reliance on thoseforward looking statements which speak only as of the date of thiscommunication. Telefonica undertakes no obligation to release publicly theresults of any revisions to these forward looking statements which may be madeto reflect events and circumstances after the date of this communicationincluding without limitation changes in Telefonica's business or acquisitionstrategy or to reflect the occurrence of unanticipated events. Analysts andinvestors are encouraged to consult the Company's prospectus as well as periodicfilings made with the relevant financial regulatory authorities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TDE.L