Meeting with Investors - February 2016

1. 1
TIM Brasil
Investor Relations
TIM Brasil
Company’s Presentation
February, 2016

2. 2
TIM Brasil
Investor Relations
TIM Brasil
Investor Relations
Visit our website and download our IR app:
www.tim.com.br/ir
Agenda
 About Us ......................................................................................3
 Market Overview and TIM Positioning ......................................7
 4Q15 & FY15 Results ……………..………………….…..…..…..….………..15
 Quality & Network Evolution ……..……..…….…………………....…….27
 Regulatory Update……….….….….………….………………………………...30
 Industrial Plan 2015-17 ..….….….…………………..……………….………33
 Appendix …….............................................................................41
TIM IR app
(English)
TIM RI app
(Portuguese)

3. 3
TIM Brasil
Investor Relations
TIM Brasil
Investor Relations
5%
27% 29%
35%
45% 48%
2010 2011 2012 2013 2014 2015
4.2 4.7 5.1 5.2 5.5 5.4
2010 2011 2012 2013 2014 2015
20.3
24.8
27.8 29.7 29.0
25.8
2010 2011 2012 2013 2014 2015
 66.2 million customers (26% Share)
 More than 458,000 points of sales
 184 own stores
 15 Customer Care Centers
(16k attendants)
 ~15,000 Antennas
 3,448 cities covered
 ~70,000 km of optical fiber network
 23,000 indirect jobs
 ~R$4.7 billion invested in FY2015
(ex-licenses)
 Presence in Brazil since 1998
 18th largest Private Company in Brazil*
 Approximately R$16 billion of Market Capitalization
TIM: A Solid Path
Growth Via
Acquisition
Gross Revenues
(R$ bln)
Data Penetration
(over customer base)
EBITDA
(R$ bln)
CAGR
+5%
Urban Population Covered:
82% in 3G and 59% in 4G
~13k employees
*Source: Exame Magazine - 2015
2nd in Market & Revenue Share
CAGR
+5%

4. 4
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsCorporate Social Responsibility
Joined UN Global
Compact in 2008
Member of ICO2
(Efficient Carbon Index)
for 6 consecutive years
ISO 14001 certified
since 2010, 1st
Brazilian telco
Sustainability
Member of ISE
(Sustainability Index) for
8 consecutive years
TIM Stands out in Sustainability
Founded in July, 2013
MISSION: We are committed to creating and strengthening resources and strategies for the democratization
of science and innovation that promote human development in Brazil, with mobile technology as one of the
main facilitators.
In public schools
 185,000 children and
6,300 professors
In museums and science and
technology centers
 More than 70,000 people
 R$2.5 million in funding
In public administration
 Participatory Urban
Caretaker
o 4 municipalities
 Cultural maps
o 7 municipalities and RS &
CE government
In the federal institutions of
professional and technological
education
 TIM Tec
o MOOC platform
 Partnership with 5 federal
institutes
Commitment with the 2014-16 Social
Investment Plan: R$45 million

5. 5
TIM Brasil
Investor Relations
TIM Brasil
Investor Relations
 Statutory Audit Committee:
• Report to Board of Directors
• Oversight Financial reporting
• Analyze anonymous complaints
 Compensation Board and Internal Control and Risk
Board operate indefinitely and act independently
 Whistleblower channel website:
www.tim.com.br/canal-denuncia
Corporate Governance
Brazilian Law
“Lei das S.A”
Legal
Requirements
Demand for
transparency
and disclosures
Highest level of
Corporate
Governance
Requirement of
protection for
minority
shareholders
Unique Telco company listed on the
Novo Mercado
Committees to Reinforce and
Guarantee Solid Corporate Governance
10 members
(3 independents)
3 members
(1 independent)
3 members
(3 independents)
3 members
5 members
(2 independents)
7 members
 Equal rights: vote, dividends and tag along
 Higher liquidity
• Single class of share (ordinary shares)
 Greater independence of Board of Directors (at least 30%)
 Strict disclosure policy

6. Market Overview and TIM Positioning

7. 7
TIM Brasil
Investor Relations
TIM Brasil
Investor Relations
The industry mobile revenue
represented 54% of the total industry
revenues in 9M15
Mobile Fixed Fixed BB Pay-TV Group
Customers 2015FY (000´s) 66,234 592 252 n.a. 67,079
Market share 2015FY 25.7% 1.4% 1.0% n.a. ---
Net Adds 12M (000´s) -9,486 190 99 n.a. -9,197
Net Revs 2015FY (R$ Mln) 14,723 660 15,384
ARPU 2015FY 16.7 n.a. n.a. n.a. ---
Mobile Fixed Fixed BB Pay-TV Group
Customers 2015FY (000´s) 73,268 14,868 7,396 1,788 97,320
Market share 2015FY 28.4% 34.1% 28.9% 9.4% ---
Net Adds 12M (000´s) -6,669 -331 347 136 -6,517
Net Revs 3Q15 (R$ Mln) 6,286 4,295 10,581
ARPU 3Q15 24.3 n.a. n.a. n.a. ---
Mobile Fixed Fixed BB Pay-TV Group
Customers 2015FY (000´s) 65,978 11,624 8,110 9,897 95,609
Market share 2015FY 25.6% 26.7% 31.7% 52.0% ---
Net Adds 12M (000´s) -5,129 -10 587 -274 -4,826
Net Revs 2015FY (R$ Mln) 10,803 24,352 35,155
ARPU 2015FY 13.0 n.a. n.a. n.a. ---
Mobile Fixed Fixed BB Pay-TV Group
Customers 2015FY (000´s) 48,061 15,105 6,372 1,169 70,707
Market share 2015FY 18,6% 34.7% 24.9% 6.1% ---
Net Adds 12M (000´s) -2,857 -1,324 -181 -134 -4,496
Net Revs 3Q15 (R$ Mln) 2,048 4,779 6,827
ARPU 3Q15 16.7 n.a. n.a. n.a. ---
TIM represents 24.4% of
the industry mobile revenue1
1 - Mobile revenue considers only the 5 major players. Oi numbers are adjusted
to include corporate mobile
Source: Anatel and players’ financial statements
Mobile Revenues Share
Nextel Oi Claro TIM Vivo
Brazilian Telcos X-Ray
30.1% 30.5% 31.7% 33.2% 36.5%
24.9% 25.6% 26.6% 26.5% 24.4%
19.1% 17.5% 17.7% 17.5% 17.6%
17.0% 18.3% 17.4% 16.6% 15.5%
8.9% 8.1% 6.6% 6.1% 5.9%
2011 2012 2013 2014 9M 2015

8. 8
TIM Brasil
Investor Relations
TIM Brasil
Investor Relations
26.6%
47.9%
18.2%
4.9%
2.3% 4.8
10.0
98.2
54.6
37.3
Household Income
Threshold (E)
Brazilian Mobile Market is Reaching Maturity
Population by Social Class & Income Profile
A
B1
C
D/E
B2
Note: New criteria from Abep adopted after 2014
Source: IPC Maps 2015; Exchange Rate: 4.00 BRL/USD
Total of
Individuals (E)
(MM)
Household
Distribution by
Social Class
R$15,000 (US$3,750)
R$3,536 (US$844)
R$1,064 (US$266)
R$7,996 (US$1,999)
Unique Users Penetration by Social Class
83% 85%
67%
78%
54%
72%
41%
65%
31%
56%
2009 2011 2013 2015
AB
C1
C2
D/E
Pop
>10yrs
48% 58% 65% 68% Brazil
Size
(Mln)
Total
(Mln)
174.5 205.2
40.8 52.2
34.3 47.4
33.4 50.9
30.9 54.6
e
Average Brazilian Household Income: R$2,794 (US$699)
Household Penetration per Income
Note: MW = minimum wage
Source: Teleco (PNAD 2014 - IBGE)
90.4%
98.8% 99.6%
32.9%
76.0%
85.7%
Up to 10 MW 10 to 20 MW More than 20 MW
Mobile
Fixed

9. 9
TIM Brasil
Investor Relations
TIM Brasil
Investor Relations
98
210
07 08 09 10 11 12 13 14 15e 16e 17e 18e
0.41 0.42 0.42 0.42 0.42
0.36 0.32
0.24
0.16
0.10 0.06 0.03 0.02
07 08 09 10 11 12 13 14 15e 16e 17e 18e 19e 64
602
14 15e 16e 17e 18e 19e
Community Era
MTR
Stabilization
Reality Check: Transition Phase
Market
conditions
require a new
STRATEGY
Industry Evolution Path
Multiple SIM cycle
Prepaid segment to
follow SIM card cycle
Data traffic booming
Data overcoming voice
revenues by 2016
Expansion
Consolidation
07 08 09 10 11 12 13 14 15 16 e 17e 18e 11 12 13 14 15e 16e 17e
Brazil Mobile
Traffic (PB)
Mln customers
82 min
07 08 09 10 11 12 13 14 15e16e
Voice slowdown
Avg Market
MOU(min)
Source: Internal estimates
and BofA ML Global Matrix
< 117 min
Data EraTransition
R$

10. 10
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsCommercial Strategy Evolution
o Volume Driven (market share)
o Base of Pyramid
o Offer Based on Community
o Handset leadership (focus on volume)
o Mass Channels
o Mobile + B2C
o Value Driven (value share)
o Big Middle of Pyramid + Value Clients
o Bundle of Voice + Data + Off-net
o Handset Support (focus on value)
o Value Channels
o Mobile + B2C + B2B + selective convergence
15 16 17 18 19
OLD
go2market
NEW
go2market
NEW
PORTFOLIO
MODEL
Voice + data
bundles
On-net + off-
net voice
Recurring
billing
Customer spending
concentration
Protection of
data value

11. 11
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsNew Offer Details on Pre and Control: Throw 2nd SIM Away
SIM card consolidation leveraging on off-net offering
“Fair value” on data offer
Coherent with customers current total spending
Only ONE SIM Card
100 min to all operators - Local & LD
150 MB of data
SMS to all operators
R$7.007 days
500 min to all operators - Local & LD
SMS to all operators
1GB of data
New Control PlanNew Prepaid Plan
R$50.00month
Higher value alternative at R$10 (300 MB) Additional price points at R$35 (500 MB)
and R$70 (1.5 GB)

12. 12
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsNew Offer Details on Postpaid: Tackling High Value Game
Freedom to use On & Off net calls
Best value for money postpaid offer in Brazil
1,000 min to all operators - Local & LD
SMS to all operators
R$99.00month
New Postpaid Plan
Preserving data value and monetization (rightsizing data price points)
Higher value alternatives at R$139 (4GB) and R$169 (6GB)
No roaming charges
2GB of data

13. 13
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsNew Positioning for a New Reality
Strategic Goals
Adjusting to Challenges
o Infrastructure as key
enabler to resume growth
o Recover innovation and
disruptive positioning (first
mover advantage)
o Defend voice & maintain
data acceleration to
rebound revenues
o Better data monetization
o Leverage on Opex efficiency
to sustain EBITDA and
expand margin
Situation Recap
o Mobile market reaching maturity
o Community effect slowdown
o SIM Card consolidation (massive
prepaid disconnection)
o MOU sharp reduction
o Voice revenues decline overcoming
data growth
o Getting near the final stage of MTR
relevant impact
Actions to Date
o Repositioning in Network
Quality
o Liberty Top
o 50MB/day allowance
Actions Moving Forward NOW!
o New Portfolio
R$7.00/week
R$50.00/month
R$99.00/month

14. 4Q15 & FY15 Results

15. TIM Brasil
Investor Relations
15
A Tough Scenario in 2015
GDP Growth Estimates for 2015
(%YoY)
Inflation Estimates for 2015
(%)
Cut investment program
Maintenance of appropriate
infrastructure investment
Stick to existing offers A completely new portfolio for all
segments
Conventional Course of Action
FX Rate Estimates for 2015
(R$/US$ at year end)
Market Deterioration TIM’s Approach
Defend value of community
business model
First mover on SIM
Card consolidation
with disruptive off-
net offers
Jan/15
-23 mln
Dec/15
Mobile Market Users
Cut costs across the board Structural yet selective efficiency
program
0.6%
-1.0%
-1.5%
-2.8%
-3.7%
Dec/14 Mar/15 Jun/15 Sep/15 Dec/15
6.5% 8.1%
9.0% 9.5%
10.7%
Dec/14 Mar/15 Jun/15 Sep/15 Dec/15
2.80 3.20 3.20
3.95 3.90
Dec/14 Mar/15 Jun/15 Sep/15 Dec/15
Source: BCB Focus Report; Anatel

16. TIM Brasil
Investor Relations
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5.54
5.40
2014 2015
2015 Highlights
Total Net Service Revenues
(R$bln; %YoY)
EBITDA
(R$bln; %YoY; ex-towers sale)
16.3
15.4
2014 2015
-2.6%
Despite a challenging
year...
…sustaining a long term
strategy…
Efficient approach
defended EBITDA
performance
Capex
(R$bln; %YoY; ex-license)
Capex intensity
bearing fruits
OPEX ex-COGS: -7% YoY
…and repositioning marketing
approach with focus on value
 SIM card consolidation
 Quality & Image
 Focus on 1st SIM
New
strategic
positioning
Eliminating dependency
from community effect
Focusing on the evolving “Big
Middle”
Source: IPC of 2015
Class
A
Classes
B + C
2%
27%
71%
-0.9
mln
-0.1
mln
Defending
EBITDA
4G
Coverage
Leadership
+19%
3.9
4.7-5.8%
Traditional
Innovative
2014 2015
+40%

17. TIM Brasil
Investor Relations
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Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
17% 21%
84%
-10.6 +1.1
79%
2014 Prepaid
Net Adds
Postpaid
Net Adds
2015
Old Portfolio New Portfolio
Customer Base Analysis
Prepaid
Postpaid
TIM’s Customer Base
(Million users)
76
66
Prepaid Disconnection Analysis
(Million users)
May-15 Jul-15 Sep-15 Nov-15
Defending position on 1st SIM users
(user base of 1st SIMs, estimated by usage profile)
• A better representation of Customer Base
• Prepaid Net Adds TIM -10.6mln (Market -28.4mln)
• Focus on efficiency and profitability
• Maintained leadership on prepaid share and regained #2 on
postpaid human*
“pay as you go”
Recurring
payment
New View of Voice Customer Base
(average users per period)
+19%
-15%
Jan-Oct/15 Nov-Dec/15
Organic Churn
Cleanup
2.7 1.1 1.0 1.0
-0.5
P1 TIM P3 P5 P4
Net adds Post
New Offer*Ex-M2M/Modems

18. TIM Brasil
Investor Relations
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Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
ARPU Outgoing
First Take on New Offers
R$7.00
7 days
R$50.00
month
R$99.00
month
Mobile Number Portability
(thousand users)
Total Postpaid (net port-in/out)
Traffic Indicators
(total base)
120 120
1Q15 2Q15 3Q15 4Q15
340
475
Bytes of
Use (MB)
Minutes
of Use
+2%
Prepaid Recharges
(mln users) ARPU Outgoing
+43%
Control Gross
Additions
(mln users)
Base New Offer
+46%
Postpaid Gross
Additions
(mln users)
Base New OfferBase New Offer
ARPU Outgoing
Estimated Actual
Voice traffic mix: cost impact
within expected range*
(mix of minutes for prepaid users)
Off-net
Fixed
On-net
9% 20%
+% Double
Digit
+% Double
Digit
+% Single
Digit
%Port-in/Gross Additions
New Portfolio
launch
*Illustrative

19. TIM Brasil
Investor Relations
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36%
45%
Jun/15 Jul/15 Aug/15 Sep/15 Oct/15 Nov/15 Dec/15
Data: Building the Path for Long Term Growth
Data Penetration on Base
(% of customer base)
3G & 4G Users
(mln users)
VAS Gross Revenues
(R$ mln)
70%
76%
73%
78%
37.5 37.5
2.0 7.1
Dec/14 Dec/15
3G+4G
% over Base
52% 67%
6.62
7.74
2014 2015
% Mobile Serv
Revenues
28% 35%
75.7
66.2
Others (2G,
M2M etc)
4G
3G
73%
85%
27%
15%
2014 2015
Innovative Revenues
(% of VAS Gross Revenues)
SMS
Innovative
+39%
Data connectivity
(YoY)
+17%
Postpaid
Control
Prepaid
x3.5 YoY
Mkt Share: 28%
+35%
(YoY)
Flat YoY
Mkt Share: 25%

20. TIM Brasil
Investor Relations
20
Fixed Business Performance
130
232
4Q14 1Q15 2Q15 3Q15 4Q15
Live TIM Base
(thd of clients)
Fixed Net Revenues
Performance
(R$ mln; %YoY)
579
660
x2 +5%
Fixed Revenues
2014
Residential
Services
Corporate
Services
Fixed Revenues
2015
+14.1%
Live TIM - Market Share of Net Adds
(SP and RJ >34Mbps)
+10%
ARPU YoY
TIM Fixo: Fixed Voice Service
(w/ wireless technology)
Corporate Sales
(%YoY)
2014 2015
43.9%
50.2%
6.8%
14.7%
48.0%
34.1%
0.5% 0.5%
4Q14 4Q15
Live TIM
P3
P1
P4
1%
34%
2014 2015
Share of
Net Adds
Mkt Share 0.9% 1.4%
+25%
+78%

21. TIM Brasil
Investor Relations
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P3
8%
P2
30.2%
TIM
46.9%
P1
14.5%
19,498
17,139
0% -40%
-45%
+14%
24%
30%
38%
76%
70%
62%
2013 2014 2015 2016
13.2 13.2
2.5
1.5
2014 2015
Reducing MTR Impact
(Revenues from MTR; R$ mln)
Financials: Changing Revenue Pattern Continues
-12.1%
Total Net Revenues Breakdown
(R$ mln; %YoY)
2014 2015Mobile
Business
Generated
FixedIncoming Handsets
Data Transformation
(% over net service revenues)
Mobile Service Net Rev.
(R$ bln; %YoY)
Voice
Data
~800
~300
Thousands
1Q12
Resilient “Business Generated”
amid a tough year
…in spite of a difficult macro and
competitive environment;
…change in handset business strategy
led to a sizable reduction of product
sales without negatively impacting on
margin.
4Q15
>20% <8%
15.7
14.7
Flat: 0%
~R$1Bln
% of service revenues
incoming
outgoing
ARPU and data
users growth
Market Share of Smartphones
(among operators in 2015)

22. TIM Brasil
Investor Relations
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Financials: Structural Efficiency Program
Opex Performance (ex-COGS and towers sale)
(% YoY)
Efficiency Across the Board
(% YoY; Δ R$mln YoY)
-44%
-11%
-9%
-7%
-6%
8%
1%
Selling & Marketing
Bad Debt
G&A
ITX & Network
COGS
Personnel Expenses
Others
2013
2014 2015 4Q13 4Q14 4Q15
2014FY: R$13,960
2015FY: R$11,744
-16%
Annual View Quarter View
3 year Efficiency Plan Update
Jan/15 Dec/17
R$ 1 bln
Dec/15
2%
-7% -7%
-2%
-8%
-4%
-7%
Ex-
COGS
~ 35%
10.6 9.9
Opex 2014 Growth Inflation Regulatory
(ITX)
Efficiency Plan Opex 2015
Opex Evolution (ex-COGS and towers sale)
(R$bln; % YoY)
Recurring
-7%

23. TIM Brasil
Investor Relations
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1,546
2,071
2014 2015
5,538 5,395
1,211
28%
31%
2014 2015
2014 2015
Financials: Margin Expansion
EBITDA & Margin
(R$ mln; % YoY)
Reducing MTR Impact
(EBITDA from MTR; R$ mln)
1Q12 4Q15
>25% <10%
Net Income
(R$ mln; %YoY)
0.86EPS 0.64
First Margin Gain due to
Business Reshape
(%)
Business
anchored
by a solid
balance sheet
~300
~150
Net Debt
(R$ bln) 1.7
1.3
0.23x 0.32x
Net Debt/
EBITDA
R$468.6mln
Dividends
Proposal
% of EBITDA
Service Margin 35% 36%
-2.6%
Towers
Sale
Margin
ex-towers
sale
+34%
R$839 mln
of Towers
Sale
80%
84%
2014 2015
Recurring:
-20% YoY

24. TIM Brasil
Investor Relations
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On human*
postpaid base
New
Portfolio
Conclusion & Perspectives
Maintaining the focus on
business development
“Perfect storm” scenario in 2015
 Economy deterioration
 MTR cut impact
 Voice to Data migration
Strong fundamentals and focus on the long term
helped to reduce impacts
Continuous adaptation to new
market conditions
 Pay as you go
 Voice centric
 Market share
 Community
 Recurring
 Data centric
 Revenue Share
 CB management
From…
...to:
48%
Data Users
(% over base)
(+2.6 pp YoY)
31.5%
EBITDA Margin
(in FY2015)
(+3 pp YoY)
+35%
Innovative Rev
(in FY2015)
YoY
68%
Smartphones
(% over base)
(+18 pp YoY)
#1
4G Coverage
>70,000
Fiber Network(Km)
2016…
2016-2018
Industrial plan
Update
Infrastructure
evolution Efficiency
plan on
track
#1
On prepaid base
#2
*Total postpaid ex of M2M / modems

25. TIM Brasil
Investor Relations
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BNDES
55%
Leasing¹
17%
BEI
15%
Others
15%
-152.0
-421.0
1,274
1,733
2012 2013 2014 2015
12.23%
14.33%
2011 2012 2013 2014 2015
Net financial position details - Cash & Debt Evolution
Short
term debt
 Better Profile: Less Short Term Debt
Debt by Lender in 4Q15
(% of gross debt; post hedge)
Debt Position
(R$ mln; % of total debt in short term)
Cash Position
(R$ mln)
5,233
 Comfortable liquidity margin
18%21%21% 27%
 Higher cash yield and debt cost due to CDI increase in the period
 Bigger gap between cash yield and debt cost due to smaller cost of
new loans
Δ: 120 bps
Cash Yield vs. Debt Cost
(% per year)
Net Financial Position
(R$ mln)
Δ: 114 bpsCash yield
Debt cost
Net debt/
EBITDA 12M
0.23x-0.08x-0.03x 0.32x
4G: -477
Towers: +1,254
Net effect: -777
¹ Leasing from Tower Sale + LT Amazonas
4,431
5,288 5,233
6,700
2012 2013 2014 2015
4,279
4,867
6,507
8,432
2012 2013 2014 2015

26. Quality and Network Evolution

27. TIM Brasil
Investor Relations
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A Year of Infrastructure: TIM 4G Leadership
24 45
411
2013 2014 2015
Cities Covered (4G)2
(# of cities)
Urban Population Covered (4G)
(% of urban population)
27%
36%
59%
2013 2014 2015
+32pp
CAPEX per Technology
(R$ mln)
2014 2015
4G
2G
3G
Number of Sites (4G)
(in thousand)
+133% YoY
-22% YoY
+6% YoY
+387
cities
1.9 3.7
7.7
2013 2014 2015
+4k
4G
Refarming 1,800
Mhz
~65% connected
with fiber (1)
13.3
15.0
12.5
Despite the FX headwinds, TIM managed
to expand infrastructure above target with
the same Capex plan
Total Pop. Covered2:
TIM: 52%
P1: 47%
P3: 48%
P4: 46%
(1) Fiber and other high capacity backhaul (2) Source: Teleco / ANATEL
(+32% YoY)
(+22% YoY) Fiber Backhaul
Fiber Backbone
>70,000 km Total
Optical Fiber Network
P1: 193
P3: 164
P4: 83
>70% of Data traffic
Carried by high capacity backhaul

28. TIM Brasil
Investor Relations
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Quality Improvements
SpeedTest in 2G/3G Network
(By Ookla)¹
1,488
3,586
4Q14 4Q15
538
1,014
4Q14 4Q15
(1) Quarterly average; generated from TIM’s analysis over Ookla Speedtest results. 4Q15 until November, last data available (2) Last data available;
Source: Anatel. (3) Total per economic group. Source: SENACON/MJ and Anatel. Broadband customer base as of Nov/15 (last data available).
206
142
4Q14 4Q15
Throughput Downlink
(Kbps)
Throughput Uplink
(Kbps)
Latency
(ms)
Number of states within Anatel’s performance Targets (%)²
2015 Consumer Complaints
(Demands at Consumer’s Protection Agency -
Procon per 1,000 customers)³
100% 100%
Dec-14 Oct-15
85%
100%
96%
Dec-14 Oct-15
3G
4G
100% 100%
Dec-14 Oct-15
3G
4G
Drop Voice and
Accessibility
Data Accessibility
3G/4G
Data Drop
3G/4G
2.8
2.1
1.7
1.1
P4 P3 P1 TIM

29. Regulatory Update

30. 30
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsSpectrum – Caps and Distribution
25
25
0
24
19
0
9
16
25
25
0
25
10
5
5
5
5
5
2
5
5
5
2
5
5
5
5
5
5
5
5
5
20
20
30
45
21
21
26
39
40
40
29
20
25
25
25
40
21
21
42
36
30
30
20
20
22
30
25
22
23
30
27
20
20
20
30
30
30
30
20
20
20
40
40
20
20
40
40
20
20
40
40
20
20
40
40
20
20
40
40
20
0
20
20
20
0
20
20
20
0
20
20
20
0
20
20
20
0
20
20
20
0 20 40 60 80 100 120 140
Northeast
South
North
Southeast
Midwest
135
138
69
110
140
140
75
140
113
88
70
110
137
135
140
115
76
1160
137
140
1,800 MHz
900 MHz
850 MHz
2,500 MHz
2,100 MHz
0
0
0
0
0
700 MHz
6
25
15
Band 850 MHz 900 MHz 1.800 MHz 2.100 MHz 2.500 MHz 700 MHz
Regulated Spectrum Cap
(FDD Applications)
(12.5+12.5)
MHz
(2.5+2.5)
MHz
(25+25)
MHz
(15+15)
MHz
(30+30)
MHz
(20+20)
MHz
Global Cap of 80 MHz < Σ of Sub-Caps Specific Caps
Current cap
20
11
Brazil average weighted
by 10 areas of SMC

31. 31
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsMain Regulatory Topics for 2016
1Q16
February March
New regulatory
framework
• Minister of
Communications
closed on Jan 15th
the Public
consultation.
Net Neutrality
• Minister of Justice
launched a new
Public Consultation
on Jan 27th.
Digital TV
• New Analog TV
Switch Off Schedule
Approval
• Approval of EAD’s
2nd Payment 1-year
postponement to
1/31/2017.
Auction
• Resuming Auction of
remaining 1,800,
1,900 and 2,500
MHz spectrum, with
local blocks.
Digital TV
• Feb 15th targeted as
due date to Rio
Verde’s Analog
Switch Off.
Condecine
• The Justice granted
preliminary
suspension
Condecine tax for
companies affiliated
SinditeleBrasil.
January
4Q15
November DecemberOctober
Condecine
• 28.5% increase
according to Law
13,202/2015.
New regulatory
framework
• Minister of
Communications
Public Consultation
on telecom
services model.
Auction
• Auction of remaining
1,800, 1,900 and 2,500
MHz spectrum.
Infrastructure Sharing
Agreements
(regulatory/antitrust
approval)
• 4G (TIM-Oi-Vivo)
• Indoor Sharing (TIM-Oi-
Vivo-Claro)
• RAN Sharing in rural
areas (TIM-Vivo).
New regulatory
framework
• First report to be
presented by
Minister of
Communications.

32. Industrial Plan 2016-18

33. 33
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsBrazil 2016-18: Meeting the Challenges
1.8% 2.7%
0.1%
-3.5% -3.8%
0.0%
1.7%
2012 2013 2014 2015E 2016E 2017E 2018E
5.8% 5.9% 6.4%
10.7%
7.0%
5.4% 5.0%
2012 2013 2014 2015 2016E 2017E 2018E
2.04 2.34 2.66
3.90 4.25 4.30 4.31
2012 2013 2014 2015 2016E 2017E 2018E
Source: latest IMF estimates for GDP; Internal Estimates for Exchange Rates forecast, Inflation, MTR Value, SIM/user and market revenues trend
Protecting results in a tougher
Macroeconomic Scenario…
…and adapting fast to capture opportunities
in a reshaped industry context
0.34 0.30
0.23
0.16
0.10 0.06 0.03 0.02
2012 2013 2014 2015 2016 2017 2018 2019
1.65
1.72
1.81
1.89
2.03 2.00 1.96 1.94
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
2018e
2.7 10.5
24.2
39.733.8
45.7
37.5
25.1
36.5
56.2
61.7 64.8
0
10
20
30
40
50
60
70
2007 2011 2015e
Voice
Data
Real GDP Growth
(% YoY)
Inflation Rate
(% YoY)
Exchange Rate
(R$/USD)
MTR Glide Path
(R$/min)
SIM / Unique User
Mobile Market Revenues
(R$ bln)

34. 34
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsHighlights of the 2016-18 Plan
Telecom industry
transformation
from Voice to Data
Market maturity and
user behavior change
impacting Customer
Base and Positioning
Challenging
Macroeconomic Scenario
Infrastructure requirements
evolving with Data and 4G
Context Changes Key Strategic Priorities
Reset positioning: Network Quality / Offer Innovation /
Customer Experience
Protect value of Prepaid base: From Market Share to
Revenue Share
Increase share of Mid/High Value customers: focus on
higher value
Stabilize Corporate Business: accelerate Top /Enterprise
and turnaround SMB
Sustain Network Investment with prioritized approach
and focus on 4G
Focus on Efficiency: as a structural element
I
II
III
IV
V
VI

35. 35
TIM Brasil
Investor Relations
TIM Brasil
Investor Relations
Market Dynamics Leading to Slower Growth in Customer Base
with Better Quality and ARPU
Changing customer profile: increasing value
61.1 63.2
52.7
12.3 12.5 13.6
2013 2014 2015 2016e 2017e 2018e
Customer Base
(mln users)
Prepaid
Postpaid
Recurring/
Bundles
22.4% >40%
66.2 >60
Total ARPU
(R$/month)
18.6 17.7 16.7
2013 2014 2015 2016e 2017e 2018e
Data (%) 24% 30% 37% 46% 54% 61%
Focus on recurring clients, decoupling method
of payment and value
Smaller Prepaid base, but higher ARPU
and better quality profile
Controle as key source of value generation,
as users concentrate spending on TIM
Postpaid stabilization and growth as a result
of new offers and business turnaround
Constant revenue share growth during
plan period
Mobile Service
Revenues Share
(%)
~23%
2015e 2016e 2017e 2018e

36. 36
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsEnlarging our Data Opportunity
BOU (MB) 164 234 306 394
4G Total Population Coverage1
52%48%47%46%
5%
TIMP1P3P4P5
27% 36%
59%
2013 2014 2015
Urban population
3G & 4G Users Evolution
17%
33%
52%
67%
4G
3G
% 3G+4G
user/base
12.3
23.6
37.5 37.50.0
0.4
2.0
7.1
2012 2013 2014 2015
x3.5 YoY
Mkt Share
28% (#2)
Flat YoY
Mkt Share
25% (#2)
4G coverage leadership
Data adoption drives change of revenue profile
49%
55% 59% 63%
68%
45% 45% 43% 43%
48%
2014 1Q15 2Q15 3Q15 4Q15 2016e 2017e 2018e
% Smartphone/Base
% Data Users/Base
26%
42%
50%
74%
58%
50%
2012 2013 2014 2015 2016e 2017e 2018e
Voice
Data2
Data Penetration
(on TIM Brasil’s User base)
Data Penetration
(on TIM Brasil’s Generated Revenues)
1 Coverage calculated by Teleco website (www.teleco.com.br) 2 Data = Data connectivity, Content, Other VAS, SMS
+32pp

37. 37
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsCapex Cycle: Accelerating 3G and 4G Data Coverage
3.9
4.7
2014 2015 2016e 2017e 2018e
After the 2015-16 cycle, Capex
intensity* to gradually decline
4G coverage to overtake 3G
*Excluding Spectrum
• Fast transition from
3G to 4G: better
quality and more
efficient
• FTTS to support 4G
reaching >80% of total
traffic
Urban Population Covered
Capex per Technology
>14 bln
<14 bln
2014
2015
2016e
2017e
2018e
4G 3G 2G
• Leadership in 4G
Coverage and match 3G
coverage in 2 years
• Competitive 3G
coverage in all states
• Refarming of 1.8 GHz
as a short-term
competitive advantage
Number of Sites
(000)
36%
59%
79% 82%
~90%
2014 2015 2016e 2017e 2018e
4G
3G
Capex Plan
(R$)
4G
Total
Sites
12.5 13.3
15.0
16.4
17.7
19.5
2013 2014 2015 2016e 2017e 2018e
Other

38. 38
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsGrowing Support from Cost Efficiency
Efficiency DriversImpact/Complexity
-
Optimization /
Control
Strategic
Sourcing
Organization/
Rightsizing and
Efficiency
Process
Improvement
Business Model
Changes
2015-17 Efficiency Plan + Network Efficiencies
Jan/15
> R$1 bln
Dec/15
~ 35%
Dec/17
1. Zero Leased Lines
Project
2. Rental & Power
3. In/Outsourcing and HR
projects
4. Sales & Marketing
initiatives
5. Process rationalization
& automation
6. Zero Based Budget
7. Strict disconnection
policy
Improving EBITDA Margin and FCF
26.1%
28.4%
31.5%
2013 2104 2015 2016e 2017e 2018e
EBITDA Margin
(% over Net Revenues)
• Cost efficiencies defend EBITDA
performance
• Long term margin expansion as
revenues mix turns to data
• FCF will improve as pressures on
EBITDA and Capex reduce+

39. 39
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsGuidance Summary
Targets reaffirm commitment to long term value creation for all shareholders
KPIs Targets
> R$1 bln in savings between 2015-17Opex
Margin expansion for every year between 2016-18EBITDA Margin
< R$14 bln between 2016-18Capex*
Data as main revenue component from 2016, focus on Revenue ShareService Revenues
*Excluding Spectrum

40. Appendix

41. 41
TIM Brasil
Investor Relations
TIM Brasil
Investor Relations
79%
58%
75% 82% 72%
21%
42%
25% 18% 28%
TIM Vivo Claro Oi Industry
Prepaid Postpaid
Mobile Base Analysis
Source: Anatel
3G 4G
Market Share Mobile Customer Base
(in 2015)
Nextel Oi Claro TIM Vivo
26.9%
25.7%
24.9%
25.6%
29.1%
28.4%
18.8% 18.6%
17.0%
19.0%
21.0%
23.0%
25.0%
27.0%
29.0%
2012 2013 2014 2015
Market Share
per Technology
25.8%
24.1%23.4%
25.1%
41.3%
31.9%
8.9%
17.0%
2012 2013 2014 2015
44.0%
40.6%
32.2%
28.1%
11.3% 12.5%
12.5% 16.6%
2013 2014 2015

42. 42
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsMobile Number Portability in Details
Source: Company
Port-in
(thds lines)
10
20
30
40
50
60
70
Jan/15 Feb/15 Mar/15 Apr/15 May/15 Jun/15 Jul/15 Aug/15 Sep/15 Oct/15 Nov/15 Dec/15
Jan/15 Feb/15 Mar/15 Apr/15 May/15 Jun/15 Jul/15 Aug/15 Sep/15 Oct/15 Nov/15 Dec/15
TIM’s Net of Port-in/out for Postpaid
(thds lines)

43. 43
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsBrazil’s Specifics
Source: Teleco (TIC Households, 2014)
Household Penetration Users per Age Group
Brazil Facts
 8.5% of Brazilian above 15
years are illiterate
 30 mln people still live in
the rural areas
 5.8% of the cities accounts
for 75% of GDP
 Brazil is in the 7th
position in terms of GDP
Source: PNAD – 2014 (IBGE)
94.5% 97.1%
67.7%
91.1%
88.1%
72.1%
20.2%
42.1%
45.4%
37.1%
2007 2008 2009 2010 2011 2012 2013 2014
 Average brazilian age:
32 years
 13 mln brazilian between
30 and 60 years
TV
Mobile
Phone
Radio
Computer
w/ internet
Fixed
Phone
Mobile
Phone
Internet
82%
64%74%
15%
10-15 yrs 16-24 yrs 25-34 yrs 35-44 yrs 45-59 yrs 60 yrs or
more

44. 44
TIM Brasil
Investor Relations
TIM Brasil
Investor Relations
• A longer then expected
process of fiscal adjustments
and a greater level of
uncertainties in politics
continues to trim economic
activity
• Government and market
consensus have postponed a
resume in GDP growth to
2017
• Considering interest rates
(SELIC) and FX at current
levels, government base case
suggests inflation should
being to converge to target in
2017
Source: IBGE and Central Bank Inflation report (as of Feb/15) for Government Estimates
GDP Forecast
(% YoY growth)
Inflation Forecast
(IPCA: 12 months)
Interest Rate Forecast
(% Selic Target p.y. - year end)
FX Rate Forecast
(R$/U$ - end of period)
Macro Scenario Outlook
Market Consensus
Government Estimates
(3.6)
(1.9)
1.0
2.8
0.2
(3.5) (3.2
0.6
2013a 2014a 2015e 2016e 2017e
10.8
6.5
4.8
6.2 6.3 9.0
7.6
6.0
2013a 2014a 2015e 2016e 2017e
14.25 14.25
10.00
11.75
14.25
14.25
12.50
2013a 2014a 2015a 2016e 2017e
3.9 3.9
2.4
2.7
4.0
4.4 4.4
2013a 2014a 2015a 2016e 2017e

45. 45
TIM Brasil
Investor Relations
TIM Brasil
Investor Relations
Tax Burden Composition
(% Gross Revenues)
Cofins PIS/ PASEP ICMS Fistel Fust/
FUNTEL
TotalTotalFust/
FUNTEL
PIS/
PASEP
ICMSCofins Fistel
3% ~1%
28%
~5% 1.5% ~39%
Taxation represents almost 40%
of companies gross revenues
Source: players Balance Sheet
2 Considers TIM, Telefonica, Oi and AMX
45.7
46.0
2012 2013
Tax Burden
Telecom Industry Tax Payments2
(R$ bln)
Tax Burden over Net Revenues
(over mobile phone services - voice)
Source Teleco study of July 2014

46. 46
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsFistel in Details – Customer Base Dynamics
TFF is calculated over the number of lines on 31/Dec plus the block of credit generated by negative
net adds in the TFI mechanic. It is due by 31/Mar of every year. For TFF an operator pays 50% of a
TFI (R$13,412) per line.
Maintenance
Fee (TFF)
TFI is paid over every net addition and it is due every month. In case of negative net additions the
operator holds a credit that never expires against Anatel and can be used for future positive net
adds (balance account for TFI credits). For TFI an operator pays R$26,83 per line.
Installation
Fee (TFI)
Fistel was created by Law 5070/66, and subsequently amended by the General Telecom Law. It is a fund that is intended
to cover the costs incurred by the Federal Government in exercising oversight of telecommunications, and to fund the
development of new tools and techniques for the exercise of surveillance. Fistel is composed of two fees: TFI (Taxa de
Fiscalização de Instalação – Installation fee) and TFF (Taxa de Fiscalização de Funcionamento – Maintenance Fee). The
fees are paid over the number of telecommunication stations (active lines1, BTS, etc) installed and in operation.
50
56
501 1 1 1 1 1 -1 -1 -1 -1 -1 -1
BOP jan feb mar apr may jun 1H jul aug sep oct nov dec EOP
50
44
50-1 -1 -1 -1 -1 -1 1 1 1 1 1 1
BOP jan feb mar apr may jun 1H jul aug sep oct nov dec EOP
50 50 50-1 1 -1 1 -1 1 -1 1 -1 1 -1 1
BOP jan feb mar apr may jun 1H jul aug sep oct nov dec EOP
50 50 501 -1 1 -1 1 -1 1 -1 1 -1 1 -1
BOP jan feb mar apr may jun 1H jul aug sep oct nov dec EOP
Net adds 12M = 0
Credit = 6mln lines
TFF base= 50 + 6 = 56 mln
Net adds 12M = 0
Credit = 0 mln lines
TFF base= 50 + 0 = 50 mln
Net adds 12M = 0
Credit = 1 mln lines
TFF base= 50 + 1 = 51 mln
Net adds 12M = 0
Credit = 0 mln lines
TFF base= 50 + 0 = 50 mln
EXAMPLE1
EXAMPLE2
EXAMPLE3
EXAMPLE4
1M2M lines have a separate recording
2R$13,41 is the sum of TFF + CFRP + Condecine

47. 47
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsBalance Sheet Analysis
Short term
TIM’s Debt Composition
Price/Book Value
Source: Bloomberg
2015
2014
2013
Long Term
Price/Earnings
Accounts Receivable Turnover (days)
Payable Turnover (days)
TIM
VIVO
OIBR
Market Average
ROE (Net Income/Shrd. Equity) ROA (NOPAT/Total Assets)ROIC (NOPAT/Invested Capital)
1Q 2Q 3Q 4Q
149 158 181
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
43
41
43
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
1.9
1.01.2
1.0
0.5
0.1
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
19.0
13.3
4.0
13.6
12.2
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
13.4% 11.9%
7.9%8.7%
8.5%10.7%
8.4%
2013 2014 2015
10.7%
10.3%
7.6%
8.5%
11.2%
9.9%
6.6%
2013 2014 2015
7.4% 6.7%
4.9%5.6% 5.6%
5.3% 4.6%
2013 2014 2015

48. 48
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsQuarterly Historical Data

49. 49
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsAnnual Historical Data

50. 50
TIM Brasil
Investor Relations
TIM Brasil
Investor RelationsHistorical Data: Operational

51. 51
TIM Brasil
Investor Relations
TIM Brasil
Investor Relations
Stock Performance (base 100)*
*Last price as of 01/31/2016
Source: Bloomberg
Structure and Stock Performance
Shareholders Structure
Treasury Shares: 795,888 (0.03%)
Total Shares: 2,421,032,479
30
55
80
105
130
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16
Ibovespa
-13.9%
TSU
-64.2%
TIMP3
-46.2%

52. 52
TIM Brasil
Investor Relations
TIM Brasil
Investor Relations
Investor Relations Team
Avenida das Américas, 3434 - Bloco 01
6° andar – Barra da Tijuca
22640-102 Rio de Janeiro, RJ
E-mail: ri@timbrasil.com.br
Rogério Tostes
E-mail: rtostes@timbrasil.com.br
Phone: +55 21 4109-3742
Vicente Ferreira
E-mail: vdferreira@timbrasil.com.br
Phone: +55 21 4109-3360
Leonardo Wanderley
E-mail: lwanderley@timbrasil.com.br
Phone: +55 21 4109-4017
Rodrigo Godoy
E-mail: rcgodoy@timbrasil.com.br
Phone: +55 21 4109-3446
Luiza Chaves
E-mail: luchaves@timbrasil.com.br
Phone: +55 21 4109-3751
Visit our Website
www.tim.com.br/ir
Statements in this presentation, as well as oral
statements made by the management of TIM
Participações S.A. (the “Company”, or “TIM”), that are
not historical fact constitute “forward looking
statements” that involve factors that could cause the
actual results of the Company to differ materially from
historical results or from any results expressed or
implied by such forward looking statements. The
Company cautions users of this presentation not to
place undue reliance on forward looking statements,
which may be based on assumptions and anticipated
events that do not materialize.
Safe Harbor and IR Contacts
Safe Harbor Statements

53. 53
TIM Brasil
Investor Relations