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NII Holdings, Inc. Expanding on a foundation of success January - PDF document

NII Holdings, Inc NII Holdings, Inc. Expanding on a foundation of success January 2007 Use of Non-GAAP Financial Measures In addition to U.S. GAAP results, this presentation includes certain financial information that is calculated and


  1. NII Holdings, Inc NII Holdings, Inc. Expanding on a foundation of success January 2007 Use of Non-GAAP Financial Measures In addition to U.S. GAAP results, this presentation includes certain financial information that is calculated and presented on the basis of methodologies other than in accordance with U.S. GAAP. Management, as well as certain investors, use these non- GAAP financial measures to evaluate NII Holdings’ current and future financial performance. The non-GAAP financial measures included in this presentation do not replace the presentation of NII Holdings’ U.S. GAAP financial results. These measurements provide supplemental information to assist investors in analyzing NII Holdings’ financial position and results of operations. NII Holdings has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations. Reconciliations of the non- GAAP financial measures provided in this presentation to the most directly comparable U.S. GAAP measures can be found on NII Holdings’ Investor Relations link, at nii.com. 2 January 2007, www.nii.com 1

  2. NII Holdings, Inc “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995 Certain matters discussed in the following presentation contain forward-looking statements that deal with potential future circumstances and developments. The discussion of such matters is qualified by the inherent risks and uncertainties surrounding future expectations generally, and such discussion also may materially differ from NII Holdings’ actual future experience involving any one or more such matters. NII Holdings has attempted to identify, in context, certain of the factors that it currently believes may cause actual future experiences and results to differ from NII Holdings’ current expectations including macroeconomic and competitive conditions and those outlined in NII Holdings’ reports filed with the Securities and Exchange Commission. 3 Overview Latin American Concentration with a Global Reach Principal operations in major business centers and related transportation corridors of Mexico, Brazil, Argentina and Peru Mexico � 296 million licensed pops Covered pops: 57MM (1) � 157 million covered pops (1) � Currently operate in the five largest Brazil Covered pops: 62MM (1) cities in Latin America � Mexico City (22MM pops) � São Paulo (20MM pops) � Rio de Janeiro (12MM pops) � Buenos Aires (13MM pops) � Lima (8MM pops) � International Direct Connect Peru Covered pops: 17MM � Expanding footprint in Mexico and Brazil � iDEN roaming throughout most of the Western Hemisphere Argentina � 114 GSM roaming agreements in 64 Covered pops: 21MM countries 1. Pop figures reflected for year-end 2006 4 January 2007, www.nii.com 2

  3. NII Holdings, Inc Significant Growth Potential with Attractive Competitive Dynamics Low Wireless Penetration Attractive Competitive Dynamics 100% � Fewer competitors 88% � Rational competition 72% 71% 75% � Competitive pricing 49% � Growing wireless market 50% � Improving economies 25% 0% Latin Japan United Western America States Europe Significant Differentiation Robust Network � Business & corporate customer � Minimal technology pressure segment � Solid spectrum position � Differentiated product offering � Scaleable capacity � Unmatched customer service 5 NII Holdings Investment Summary Strong Market Strong Market Solid Execution Solid Execution Bright future Bright future Position Position � Disciplined focus on � Industry leading � Well established – profitable growth operating metrics poised for growth � Differentiated product � Best in class customer � Accelerated expansion and service service � Increasing addressable � Post-paid focus – most � Solid management team; market valuable customers proven operators with � IDC opportunity compensation tied to � Solid network � Deliver strong subscriber success concentrated in major and cash flow growth business centers � Healthy capital structure Foundation for Disciplined Growth Foundation for Disciplined Growth 6 January 2007, www.nii.com 3

  4. NII Holdings, Inc NII Target Market NII Network Coverage NII Addressable Market (a) Total covered pops: 157MM Current Market: 37MM Peru Peru 17MM 3MM Argentina Argentina 5MM 21MM Mexico 57MM Business/Corporate /Post-paid targeting Mexico Brazil 17MM Brazil 12MM 62MM Service Commerce Construction Manufacturing High Use Individuals 3.2MM NII Subscribers = 9% penetration Transportation/Comm. Other (a) Based on internal company forecasts & other external sources. Network coverage is reflected for year-end 2006 and addressable market segment defined as business accounts and post-paid users within expanded footprint as of year-end 2006. 7 Key City Launches for 2006 Primary Cities /Areas POPs Mexico Merida Culiacan Tampico- Madero Hermosillo 10MM Chihuahua Cancun Mazatlan Puerto Vallarta Brazil Satellite Cities Greater Porto Alegre 6MM Sao Jose do Rio Preto Peru & Arequipa Argentina 3MM Cuzco Cordoba 19MM 8 January 2007, www.nii.com 4

  5. NII Holdings, Inc 2006 Market Expansion Opportunity YE 2005 2006 E Mexico Mexico POPs 47MM 57MM GDP 70% 78% Brazil Brazil POPs 56MM 62MM GDP 48% 52% 9 NII Competitive Positioning Targeted Customer Base � Business / Corporate/ Post Paid � Medium to high usage Best Customer � Lowest price to high use customers � Solution selling � Excellent credit quality Integrated Communications Solution � National and International Direct Connect � Digital cellular service Best Product � Horizontal & vertical data applications � Market proven product � PTT industry leader Superior Customer Service � Customer segmentation programs � Customer intimacy model Best Service � High quality customer support systems � Exceptional customer care NII Customer Value Proposition NII Customer Value Proposition “Best Value “ Best Value” ” 10 January 2007, www.nii.com 5

  6. NII Holdings, Inc High Value Customers -Industry Leading Operating Metrics (a) ARPU vs. Competitors OIBDA per Subscriber $90 $18 $17 $78 $80 $16 $70 $14 $58 $60 $12 $50 $10 (US$) (US$) $40 $8 $6 $30 $6 $20 $4 $13 $12 $2 $10 $2 $0 $0 (a) (a, b) (b) NIHD NIHD AMX TEM NIHD AMX TEM Mexico Consol. (a) Based on Company reports for the second quarter of 2006. (b) Based on Latin American results only. 11 Operations Overview January 2007, www.nii.com 6

  7. NII Holdings, Inc Trailing 12 Months: NII Operating Profile Ending Subscribers – 3,188k Revenue – $2,211MM Peru Peru 10% 6% Mexico Mexico Argentina 57% 45% Argentina 19% 14% Brazil 23% Brazil 26% OIBDA - $691MM Total Capex – $567MM Peru Peru 7% 4% Mexico Mexico 70% 50% Argentina Argentina 13% 9% Brazil 13% Brazil 34% 13 National Coverage By Mid-2007 Tecate Tecate Tijuana Tijuana NATIONAL FOOTPRINT NATIONAL FOOTPRINT Mexicali Mexicali Rosarito Rosarito Ensenada Ensenada Nogales Nogales Cd. Ju Cd . Juá árez rez Magdalena Magdalena de Quino de Quino Hermosillo Hermosillo Chihuahua Chihuahua Cuahutemoc Cuahutemoc Guaymas Guaymas Nuevo Laredo Nuevo Laredo Delicias Delicias Cd Cd. . Obregon Obregon Navojoa Navojoa Saltillo Saltillo Reynosa Torreó ón n Reynosa Torre Los Mochis Los Mochis Gomez Palacio Gomez Palacio Matamoros Matamoros Culiacan Culiacan Allende Allende Monterrey Monterrey Durang Durang Montemorelos Montemorelos Linares Linares o o Mazatlan Mazatlan Victoria Victoria Zacatecas Zacatecas Aguascalientes Aguascalientes Tampico/Madero Tampico/Madero Cancun Cancun San Luis Potosí San Luis Potos í Tepic Tepic Irapuato / Salamanca Irapuato / Salamanca Merida Guanajuato Guanajuato Merida Leó ón n Le Celaya Celaya Tulum Tulum Quer Queré étaro taro Guadalajara Guadalajara Xel- Xel -Ha Ha Vallarta Vallarta Cozumel Cozumel Pachuca Campeche Campeche Sayula Sayula Pachuca Cd Cd. Guzman . Guzman Xalapa Xalapa Colima Colima Puebla Puebla Veracruz Veracruz Manzanillo Manzanillo Cd Cd. del Carmen . del Carmen Coatzacoalcos Coatzacoalcos Chilpancingo Chilpancingo Villahermosa Villahermosa Acapulco Oaxaca Oaxaca Acapulco Tuxtla Gutierrez Tuxtla Gutierrez 14 January 2007, www.nii.com 7

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