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NII Holdings IncNII Holdings, Inc.Q3 2015Q3 2015Earnings Presentationg

November 5, 2015

Use of Non-GAAP Financial Measures

This presentation includes certain financial information that is calculated and presented on the basis of methodologies that areThis presentation includes certain financial information that is calculated and presented on the basis of methodologies that arenot in accordance with U.S. Generally Accepted Accounting Principles, or GAAP. Management, as well as certain investors,use these non-GAAP financial measures to evaluate NII Holdings’ current and future financial performance. The non-GAAPfinancial measures included in this presentation do not replace the presentation of NII Holdings’ GAAP financial results. Thesemeasurements provide supplemental information to assist investors in analyzing NII Holdings’ financial position and results ofoperations. NII Holdings has chosen to provide this information to investors to enable them to perform meaningfulcomparisons of past, present and future operating results and as a means to emphasize the results of core on-goingoperations. Reconciliations of the non-GAAP financial measures provided in this presentation to the most directly comparableGAAP measures can be found in the appendix of this presentation and on NII Holdings’ Investor Relations link, at nii.com.

Information regarding Q3 Financial StatementsNextel Argentina. On September 11, 2015, subsidiaries of NII Holdings sold 49% of their equity interests in Nextel Argentinaand a call option for the remaining 51% of the equity interests for approximately $178 million. In connection with thistransaction, Nextel Argentina has been presented in NII Holdings' financial statement as discontinued operations and thispresentation excludes the results of Nextel Argentina for all periods presented.Reorganization Accounting. In accordance with the requirements of reorganization accounting, NII Holdings adopted theprovisions of fresh start accounting as of June 30, 2015 and became a new entity for financial reporting purposes. All reportedresults for the periods through and including June 30, 2015 reflect the "Predecessor Company” and the results for the thirdquarter of 2015 reflect the “Successor Company”.

2

Safe harbor statement under the Private Securities Litigation Reform Act of 1995

This presentation includes “forward-looking statements” within the meaning of the securities laws. That is, they are not historical facts but future estimates and projections reflecting managements’ judgment based on currently available information. Forward looking statements involve risks and uncertainties that could cause actual results to differ materially from those suggested by the statements we make today. Forward looking statements should be taken in the context of the risks and uncertainties that are described in NII Holdings' Quarterly Report on Form 10-Q for the quarter ended September 30th, 2015, as well as in other reports filed from time to time by NII Holdings with the Securities and Exchange Commission.

3

Contents

Earnings Overview

Subscriber Overview

44NII Holdings, Inc. Results Q3'15

Q3'15 Earnings Overview

We experienced continued momentum in our 3G business and reported improving operational results which led to an improvement in Adjusted OIBDA loss compared to second quarter of 2015, despite the challenging macroeconomic environment.

Revenue increased in local currency but declined on a U.S. dollar basis as a result of weaker local currency exchange rates.

Adjusted OIBDA loss improved from the second quarter of 2015 primarily due to a reduction in operating expenses and non-recurring charges in the prior quarter related to bad debt expense and a reserve for an operational tax adjustment.

We ended the quarter with $448 million of cash and investments and $221 million of cash held in escrow from the sale of Nextel Mexico and Nextel Peru. Assuming the return of cash held in escrow, we expect these sources of liquidity to be sufficient to fund our business plan for the next two years..

Our new management team in Brazil is implementing a new operating plan to allow Nextel Brazil to be a viable competitor and operate within our means.

5

Consolidated Q3’15 Results

$m Q3'15 Q2'15 % ChangeB/(W)

Q3'15% Rev

Operating Revenue 285 320 (11%) 100%

Cost of Revenue 140 191 27% 49%

General and administrative expenses 124 167 26% 44%

Selling and marketing expenses 44 57 22% 16%

Consolidated Adjusted OIBDA Loss (25) (95) 74% (9%)

Service ARPU 18 20 (12%) nm

CCPU 18 22 19% nm

CPGA 104 207 50% nm

nm = Not Meaningful

Keypoints

Financial results reflect a further weakening of local currency exchange rates

Progress in cost reduction across all expense line items, which resulted in significant improvement in Consolidated Adjusted OIBDA loss

6

Consolidated Adjusted OIBDA2Q15 t 3Q15 Adj t d OIBDA R ili ti

2Q15 Adjusted OIBDA

Non-recurring Items

Operating Revenue Cost of Revenue SG&A

3Q15 Adjusted OIBDA

2Q15 to 3Q15 Adjusted OIBDA Reconciliation(in millions $)

60 (39)

28 (25)

OIBDA Items Revenue Cost of Revenue SG&A OIBDA

60 (39)

21

(95)

Keypoints

$60M in net non-recurring items related to a reserve for an operational tax adjustment and a change in bad debt methodology in 2Q15.

Operating revenue and expense variations mostly explained by weakening exchange rates

7

Brazil Q3’15 Results in Local Currency

R$m Q3'15 Q2'15 % ChangeB/(W)

Q3'15% Rev

Operating Revenue 1,001 984 2% 100%

Cost of Revenue 495 588 16% 49%

General and administrative expenses 391 465 16% 39%

Selling and marketing expenses 153 173 12% 15%

Brazil Adjusted OIBDA Loss (37) (243) 85% (4%)

Service ARPU 62 62 0% nm

CCPU 60 65 8% nm

CPGA 362 635 43% nm

nm = Not Meaningful

Keypoints

Local currency results demonstrate an improving business highlighted by an increase in operating revenue

Adjusted OIBDA Loss showed improvement in local currency terms as a result of our initiatives to improve our cost structure as well as one time charges incurred during Q2’15

8

to improve our cost structure as well as one time charges incurred during Q2 15

Q3'15 Brazil Operating Revenue in Local CurrencyO ti R d S i ARPU

zil 3

G

Operating Revenue and Service ARPU(Operating Revenue in millions R$)

1,099M 333M405M

471M535M

575M

Bra

z

1,085M

, 333M

R$69 R$74

R$70 R$66 R$66

1,036M

984M

1,001M

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15

751M

zil i

DE

N

984MR$69 R$68

R$66

R$62 R$62

694M

565M

449M 426M

R$69 R$66

Bra

zQ3'14 Q4'14 Q1'15 Q2'15 Q3'15

Operating Revenue Service ARPU

R$66 R$62

R$58 R$58

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15

9

Segment Earnings TrendB il S t E i T dBrazil Segment Earnings Trend(in millions $)

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15

Operating Revenue 476 432 363 320 285

Cost of Revenue 260 265 186 191 141

General and administrative expenses 154 155 125 151 111

Selling and marketing expenses 61 62 49 56 44

Brazil Segment Earnings (Loss) 1 (50) 4 (79) (11)

HQ Segment Earnings Trend*(in millions $)

Brazil Segment Earnings (Loss) 1 (50) 4 (79) (11)

Q3'14** Q4'14 Q1'15 Q2'15 Q3'15

Operating Revenue (0) 0 0 0 0

Cost of Revenue (0) (0) (0) (0) (0)


*Includes the impact of intercompany eliminations and discontinued operations


Selling and marketing expenses 1 0 (0) 0 0

HQ Segment Earnings (Loss) (22) (13) (22) (16) (14)

10

p f p y p**Excludes the impact of $9M related to chapter 11 professional fees

Q3’15 Liquidity

520M

(168M) 159M (25M) (18M) (20M)

520M448M

* Restructuring advisers and Cash Collateral are non‐recurring items** Cash balances include $423M of cash and cash equivalents and $97M in short‐term investments. Excludes $152M of cash held in Nextel Argentina*** Nextel Argentina sale proceeds exclude $19mm received in October of which $6mm was placed in escrow

3Q15 Beg. Cash and Investments**

FCF Proceeds from saleof Nextel Argentina

Debt Repayments Interest Expense ‐Net

FX TranslationLoss

3Q15 End. Cash and

Investments***

11

*** Nextel Argentina sale proceeds exclude $19mm received in October, of which $6mm was placed in escrow

Strategic PrioritiesM i t i i d/ h i li idit hil ti i t l t iti t i dditi l

Cash burn was impacted by non-recurring items during the quarter (restructuring fees, cash used to f b d ) b t t t i h b i th f t th h t d ti

Maintaining and/or enhancing our liquidity while continuing to explore opportunities to raise additional capital.

secure performance bonds) but we expect to improve cash burn in the future through cost reductions and maximizing existing capital investment. We expect cash burn in Q4 to be less than $100 million.

Our plan is to operate within our means while remaining competitive in the marketplace.p p g p p Refocus on high ARPU customers and implement various cost reduction strategies to lower CCPU and bring it in line

with ARPU for improved profitability Cost reductions in Brazil include workforce reductions and rationalization of distribution channels Continue utilizing our Bring Your Own Device (BYOD) strategy to keep CPGA at manageable levels

We will continue to leverage the profitability of our iDEN network. Lower fixed costs and high margin contribution customers are accretive to adjusted OIBDA.

We are taking steps to further streamline the expenses incurred at our corporate headquarters byWe are taking steps to further streamline the expenses incurred at our corporate headquarters by shifting costs and associated responsibilities to Nextel Brazil.

Significant actions to address our strategic priorities are already underway which should position our company to compete effectively in the long run.

12

p p y p y g

Contents

Earnings Overview

Subscriber Overview

1313NII Holdings, Inc. Results Q3'15

B il G Add b T h l

Brazil Gross Add Overview

Keypoints

● Total gross adds continue to457K

480K 489K

Brazil Gross Adds by Technology(CPGA in R$)

● Total gross adds continue to increase despite challenging economic environment

● Value proposition is resonating in the marketplace as

377K

417K

K

403K 42

5K

458K

in the marketplace as demonstrated by continued growth in 3G gross adds

● iDEN gross adds continue to d li d h i

262K

341K

R$749 decline as we de-emphasize that platform

● CPGA is improving due to a higher rate of customers

d ti b i

15K

R$569

R$749

R$472

R$635

R$362

adopting our bring your own device (BYOD) strategy

1

76K

54K

55K

30K

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15

Total 3G iDEN CPGATotal 3G iDEN CPGA

14

Brazil Churn Overview

3.8%

3 6%

3.8%

4.0%

3.3%

3.5%

3.2%3.2%

3.5%

3.2%

3.4%

3.6%

2.7%

3.0%

3.1%3.2%

3.0%

2.8%

3.0%

3G Churn relatively stable

2 2%

2.3%

2 2%

2.4%

2.6% throughout 2015 iDEN churn continues to

trend higher

2.2%2.2%

2.0%

2.2%

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15

Total 3G iDEN

15

Brazil Net Adds OverviewB il N t Add b T h l

242K

241K

227K

231K

Keypoints

● Despite challenging economic

Brazil Net Adds by Technology

88K65K

51K 43K

185K

● Despite challenging economic conditions in the market 3G net adds continue to be stable

● iDEN customer losses continue to accelerate Using targeted27K

97K

)

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15

to accelerate. Using targeted retention approach which focuses on keeping only the best customers

R d f hi h ARPU(9

(176

K)

(190

K)

(184

K)

(204

K)

● Renewed focus on high ARPU customers will have an impact on subscriber growth in remainder of 2015 and 2016

Total 3G iDEN

16

Brazil Subscriber OverviewIn thousands (except churn) Q3'15 Q2'15 Q3'14 % Change % ChangeIn thousands (except churn) Q3 15 Q2 15 Q3 14 B/(W) vs Q2'15 B/(W) vs Q3'143G

Gross Adds 458 425 262 8% 75%

Churn 3.2% 3.1% 2.2% (7bps) (99bps)

Net Adds 231 227 185 2% 25%

Migrations from iDEN 116 59 98 95% 18%

Ending Subscribers 2,605 2,258 1,334 15% 95%

iDEN

Gross Adds 30 55 115 (45%) (74%)

Churn 3.8% 3.5% 2.3% (38bps) (151bps)

Net Adds (204) (184) (97) (11%) (109%)( ) ( ) ( ) ( ) ( )

Migrations from 3G (116) (59) (98) (95%) (18%)

Ending Subscribers 1,858 2,177 2,942 (15%) (37%)

Total

Gross Adds 488 480 377 2% 29%

Churn 3.5% 3.3% 2.3% (19bps) (119bps)

Net Adds 27 43 88 (37%) (69%)

Ending Subscribers 4 463 4 435 4 276 1% 4%

17

Ending Subscribers 4,463 4,435 4,276 1% 4%

Postpaid Market Share

Rio de Janeiro (Metro) Sao Paulo (Metro)

VivoClaro

26,3%

29,8% 29,7%32,9%

20 8%

44,6%

Vivo42,4%

NextelTim

Oi14,2%

11 9%

15,2%

20,8%

16,2%

18,7%

26,1%

Claro23,7%

Tim16,7%

2013 2014 A 15

Tim11,9%

1,7% 1,9%

Oi

7,1%Nextel

2014

8,4%

A 152013

8,5%

2013 2014 Aug-15 2014 Aug-152013

18

Non-GAAPReconciliations

NII Holdings, Inc. Reconciliations of Non-GAAP Financial Measures for 2015

The tables below include financial information prepared in accordance with accounting principles generally accepted in the United States, or GAAP, as well as other financial measures referred to as non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP.

a. Consolidated

Predecessor

Company Successor Company

F h Th F h Th, , p p

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. These reconciliations include “forward-looking statements” within the meaning of the securities laws. The statements regarding the business and economic outlook, future performance and forward-looking guidance, as well as other statements that are not historical facts, are forward-looking statements. Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, the Company’s ability to meet its business plans, customer growth and retention, pricing, network usage, operating costs, the timing of various events, the economic and regulatory environment and the foreign currency exchange rates that will prevail during 2015. Future performance cannot be assured and actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include the risks and uncertainties relating to: the impact of liquidity constraints, the impact of more intense competitive conditions and changes in economic conditions in the markets we serve, the performance of the Company’s networks, the Company’s ability to provide

i th t t t d th bilit f th C t ti i th C ’ bilit t t it

For the ThreeMonths Ended


June 30,

2015 September 30,

2015 (US$)Digital service and other revenues ................ $ 303,222 $ 266,487Less: other revenues...................................... (34,280) (31,473) Total subscriber revenues.............................. $ 268,942 $ 235,014 ARPU calculated with subscriber revenues .. $ 20 $ 18

services that customers want or need, the ability of the Company to continue as a going concern, the Company’s ability to execute itsbusiness plan, and the additional risks and uncertainties that are described in NII Holdings' Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2015, as well as in other reports filed from time to time by NII Holdings with the Securities and Exchange Commission. The tables below speak only as of their date, and NII Holdings disclaims any duty to update the information herein.

(1) Consolidated operating income before depreciation and amortization, or OIBDA, represents operating income before depreciation and amortization expense. Consolidated adjusted operating income before depreciation and amortization, or adjusted OIBDA, represents consolidated operating income before depreciation expense, amortization expense, material non-cash asset impairments, severance costs associated with publicly announced restructuring plans and other material non-recurring or unusual charges. Consolidated adjusted OIBDA margin represents adjusted OIBDA divided by total operating revenues and consolidated OIBDA margin represents OIBDA divided by total operating revenues. Consolidated OIBDA, consolidated adjusted OIBDA, consolidated OIBDA margin and consolidated adjusted OIBDA margin are not measurements under accounting principles generally accepted in the United States, may not be similar to consolidated OIBDA, consolidated adjusted OIBDA, consolidated OIBDA margin and consolidated adjusted OIBDA

i f th i d h ld b id d i dditi t b t t b tit t f th i f ti t i d i

b. Nextel Brazil

ARPU calculated with digital service and other revenues ............................................. $ 23 $ 20

Predecessor Company

Successor Company

For the Three Months Ended

For the Three Months Endedmargin measures of other companies and should be considered in addition to, but not as substitutes for, the information contained in our

statements of operations. We believe that consolidated OIBDA, consolidated adjusted OIBDA, consolidated OIBDA margin and consolidated adjusted OIBDA margin provide useful information to investors because they are indicators of our operating performance, especially in a capital intensive industry such as ours, since they exclude items that are not directly attributable to ongoing business operations. Consolidated OIBDA, consolidated adjusted OIBDA, consolidated OIBDA margin and consolidated adjusted OIBDA margin can be reconciled to our consolidated statements of operations as follows (in thousands, except for margins):

Predecessor Company

Successor Company



June 30, September 30,2015 2015

Months Ended Months Ended

June 30,

2015 September 30,

2015 (US$)Digital service and other revenues ................ $ 303,174 $ 266,441 Less: other revenues...................................... (34,309) (31,487) Total subscriber revenues.............................. $ 268,865 $ 234,954 ARPU calculated with subscriber revenues .. $ 20 $ 18

l l d i h di i l i d 2015 2015 (US$)Consolidated operating loss ............................... $ (198,073) $ (77,652)Consolidated depreciation .................................. 60,702 36,353Consolidated amortization.................................. 13,006 11,946Consolidated operating loss before depreciation and amortization .........................

(124,365) (29,353)

Asset impairment charges .................................. 25,293 4,036Restructuring charges ......................................... 4,203 679 Consolidated adjusted operating loss before

depreciation and amortization ......................... $ (94.869) $ (24,638)Consolidated adjusted operating loss before

depreciation and amortization margin .............. (30)% (9)%Consolidated operating loss before

ARPU calculated with digital service and other revenues ............................................. $ 23 $ 20

Predecessor Company

Successor Company



June 30,

2015 September 30,

2015 (BR R$)Digital service and other revenues ................ R$ 931 198 R$ 938 417Consolidated operating loss before

depreciation and amortization margin .............. (39)% (10)% Consolidated operating loss margin ................... (62)% (27)%

(2) Average monthly revenue per subscriber unit in service, or ARPU, is an industry term that measures service revenues, which we refer to as subscriber revenues, per period from our customers divided by the weighted average number of subscriber units in commercial service during that period. ARPU is not a measurement under accounting principles generally accepted in the United States, may not be similar to ARPU measures of other companies and should be considered in addition, but not as a substitute for, the information contained in our statements of operations. We believe that ARPU provides useful information concerning the appeal of our rate plans and service offerings and our performance in attracting and retaining high value customers. Other revenue includes revenues for such

Digital service and other revenues ................ R$ 931,198 R$ 938,417Less: other revenues...................................... (105,411) (110,865)Total subscriber revenues.............................. R$ 825,787 R$ 827,552 ARPU calculated with subscriber revenues .. R$ 62 R$ 62 ARPU calculated with digital service and other revenues ............................................. R$ 70 R$ 71

(3) Cost per gross add, or CPGA, is an industry term that is calculated by dividing our selling, marketing and handset and accessory subsidy costs, excluding costs unrelated to initial customer acquisition, by our new subscribers during the period, or gross adds. CPGA is not a measurement under accounting principles generally accepted in the United States, may not be similar to CPGA measures of other companies and should be considered in addition, but not as a substitute for, the information contained in our statements of operations. We believe CPGA is a measure of the relative cost of customer acquisition. CPGA can be calculated and reconciled to our consolidated statements of operations as follows (in thousands, except CPGA):

Predecessor Company Successor Company

F h Th F h Th F h Th F h Th F h Th

a. Consolidated

Predecessor Company

Successor Company



June 30,

2015September 30,

2015






September 30, 2014

December 31, 2014

March 31, 2015

June 30, 2015

September 30, 2015

(BR R$)Handset and accessory revenues ......................... R$ 92,244 R$ 72,120 R$ 65,186 R$ 52,537 R$ 62,867Uninsured handset replacement revenue ............. (6,694) (3,178) (1,226) (274) (258)Handset and accessory revenues, net .................. 85,550 68,942 63,960 52,263 62,609Less: cost of handsets and accessories ................ 198,482 264,314 160,014 201,298 100,636 Handset subsidy costs ..................................... 112,932 195,372 96,054 149,035 38,027

Selling and marketing ......................................... 139,677 158,863 140,636 173,256 152,815Costs per statement of operations ........................ 252,609 354,235 236,690 322,291 190,842Less: costs unrelated to initial customer

(US$)Handset and accessory revenues ....................... $ 17,081 $ 18,166Uninsured handset replacement revenue ........... (89) (75)Handset and accessory revenues, net................. 16,992 18,091Less: cost of handsets and accessories .............. 65,367 28,307 Handset subsidy costs ................................... 48,375 10,216Selling and marketing ....................................... 56,582 44,305Costs per statement of operations ...................... 104,957 54,521Less: costs unrelated to initial customer acquisition ....................................................... (5,767) (3,818) Customer acquisition costs ............................ $ 99,190 $ 50,703

(4) Cash cost per handset/unit, or CCPU, represents the sum of cost of service, general and administrative expenses and customer retention and other costs divided by average handsets in service during the period and divided by the number of months in the period. CCPU is not a measurement under accounting principles generally accepted in the United States, may not be similar to CCPU measures of other companies and should not be considered in addition to, but not as a substitute for, the information contained in our statements of operations. We believe CCPU is a measure of the recurring costs we incur on a monthly basis to provide service to our subscribers. C lid d CCPU b il d lid d f i f ll (i h d CCPU)

Less: costs unrelated to initial customer acquisition......................................................... (37,967) (41,492) (20,979) (17,665) (14,004) Customer acquisition costs .............................. R$ 214,642 R$ 312,743 R$ 215,711 R$ 304,626 R$ 176,838

Cost per Gross Add ........................................... R$ 569 R$ 749 R$ 472 R$ 635 R$ 362

b. Nextel Brazil

Cost per Gross Add ......................................... $ 207 $ 104

Predecessor Company

Successor Company



June 30,

2015 September 30,

2015

Consolidated CCPU can be reconciled to our consolidated statements of operations as follows (in thousands, except CCPU):

a. Consolidated

Predecessor Company

Successor Company



June 30,

2015 September 30,

2015

(US$)Handset and accessory revenues ......................... $ 17,081 $ 18,166Uninsured handset replacement revenue ............. (89) (75)Handset and accessory revenues, net................... 16,992 18,091Less: cost of handsets and accessories ................ 65,367 28,307 Handset subsidy costs ..................................... 48,375 10,216Selling and marketing ......................................... 56,461 44,209Costs per statement of operations ........................ 104,836 54,425Less: costs unrelated to initial customer acquisition ......................................................... (5,767) (3,818) Customer acquisition costs .............................. $ 99,069 $ 50,607 C t G Add $ 207 $ 104

(US$)Selling, general and administrative expenses....... $ 223,821 $ 168,804Less: selling and marketing expenses .................. (56,582) (44,305) General and administrative expenses ............... 167,239 124,499Cost of Service..................................................... 126,137 112,179Customer retention costs and other...................... 5,767 3,818Total..................................................................... $ 299,143 $ 240,496 Cash Cost per Unit............................................. $ 22 $ 18

Cost per Gross Add ........................................... $ 207 $ 104

. Brazil

Predecessor Company

Successor Company

Three Months Ended September 30,

Predecessor Company Successor Company

3Q 2014 to 3Q



June 30,

2015 September 30,

2015 (US$)Selling, general and administrative expenses ...... $ 207,631 $ 154,914Less: selling and marketing expenses .................. (56,461) (44,209) General and administrative expenses .............. 151,170 110,705Cost of Service .................................................... 126,165 112,193Customer retention costs and other ..................... 5,767 3,818Total $ 283 102 $ 226 716

3Q 2014 Actual

3Q 2014 Adjustment

(1)

3Q 2014 Normalized

(1) 3Q 2015 Actual

2015Actual

Growth Rate (2)

3Q 2014 to 3Q 2015 Normalized Growth Rate (3)

(dollars in thousands)

Consolidated:

Operating revenues $476,264 $(170,424) $305,840 $284,652 (40)% (7)% Adjusted operating income before depreciation and amortization (20,837) (328) (21,165) (24,638) (18)% (16)%

Nextel Brazil:

Total .................................................................... $ 283,102 $ 226,716 Cash Cost per Unit ............................................ $ 21 $ 17

Predecessor Company

Successor Company



June 30, 2015

September 30, 2015

Operating revenues $476,382 $(170,424) $305,958 $284,606 (40)% (7)%

Segment earnings 919 (31,566) (30,647) (10,808) NM (65)%

Nine Months Ended September 30,

Predecessor Company

Combined Predecessor

and Successor Company

2015 2015 (BR R$)Selling, general and administrative expenses ...... R$ 638,661 R$ 543,760Less: selling and marketing expenses .................. (173,256) (152,815) General and administrative expenses .............. 465,405 390,945Cost of Service .................................................... 386,913 394,242Customer retention costs and other ..................... 17,665 14,004Total .................................................................... R$ 869,983 R$ 799,191 Cash Cost per Unit ............................................ R$ 65 R$ 60

YTD 2014

Actual

YTD 2014 Adjustment

(1)

YTD 2014 Normalized

(1) YTD 2015

Actual

YTD 2014 to YTD

2015 Actual Growth Rate (2)

YTD 2014 to YTD 2015

Normalized Growth Rate

(3)

(dollars in thousands)

Consolidated:

Operating revenues $1,416,949 $(390,416) $1,026,533 $968,363 (32)% (6)% Adjusted operating income before depreciation and amortization (171,879) 23,266 (148,613) (137,854) (20)% (7)%

(5) The following table shows the impact of changes in foreign currency exchange rates on certain financial measures for the three and ninemonths ended September 30, 2014 compared to the three- and combined nine-months ended September 30, 2015 by (i) adjusting the relevant measures for the three and nine months ended September 30, 2014 to levels that would have resulted if the average foreigncurrency exchange rates for the three and nine months ended September 30, 2014 were the same as the average foreign currency exchange rates that were in effect for the three- and combined nine-months ended September 30, 2015; and (ii) comparing the actual and adjusted financial measures for the three and nine months ended September 30, 2014 to the similar financial measures for the three- and nine-months ended September 30, 2015 to show the percentage change in those measures before and after taking those adjustments intoaccount. The amounts reflected in the following table for operating income before depreciation and amortization on a consolidated basisand segment earnings for Nextel Brazil, before the adjustments for changes in foreign currency exchange rates, are based on the

Nextel Brazil:

Operating revenues $1,416,979 $(390,118) $1,026,861 $968,217 (32)% (6)%

Segment earnings (84,377) (62,503) (146,880) (86,042) 2% (41)%

(1) The "3Q 2014 Normalized" and "YTD 2014 Normalized" amounts reflect the impact of applying the average foreign currency exchange rates for the three- and combined nine-months ended September 30, 2015 to the operating revenues earned in foreign currencies and to the other components of each of the actual financial measures shown above for the three and nine months ended September 30, 2014, other than certain components of those measures consisting of U.S. dollar-based operating expenses, which were not adjusted. The amounts included under the columns "3Q 2014 Adjustment" and "YTD 2014 Adjustment" reflect the amount determined by subtracting the "3Q 2014 Normalized" and "YTD 2014 Normalized" amounts calculated as described in the preceding sentence from the "3Q 2014 Actual" and "YTD 2014 Actual" amounts and reflect the impact of the year-over-year change in the average foreign currency exchange rates on each of the financial measures for the three- and combined nine-months g g j g g y g

calculations contained elsewhere in these non-GAAP reconciliations for the three- and combined nine-months ended September 30, 2015 and the three and nine months ended September 30, 2014. The average foreign currency exchange rates for each of the relevantcurrencies during each of the three- and combined nine-months ended September 30, 2015 and the three and nine months ended September 30, 2014 are included in the notes to the table below. The information reflected in the following table is not a measurementunder accounting principles generally accepted in the United States and should be considered in addition to, but not as a substitute for,the information contained in our statements of operations. We believe that these calculations provide useful information concerning our relative performance for the three- and combined nine-months ended September 30, 2015 compared to the three and nine months ended September 30, 2014 by removing the impact of the significant difference in the average foreign currency exchange rates in effect forthose periods.

ended September 30, 2015. The average foreign currency exchange rates for each of the relevant currencies during the three- and nine-months ended September 30, 2015 and the three and nine months ended September 30, 2014 for purposes of these calculations were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2015 2014 2015 2014

Brazilian real 3.55 2.88 3.16 2.29

(2) The percentage amounts in these columns reflect the growth rates for each of the financial measures comparing the amounts in the "3Q2015 Actual" and "YTD 2015 Actual" columns with those in the "3Q 2014 Actual" and "YTD 2014 Actual" columns.

(3) The percentage amounts in these columns reflect the growth rates for each of the financial measures comparing the amounts in the "3Q 2015 Actual" and "YTD 2015 Actual" columns with those in the "3Q 2014 Normalized" and "YTD 2014 Normalized" columns.

nii holdings incnii holdings, inc. q3 2015q3 2015 earnings ... · q3 2015q3 2015 earnings...

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