1. TIM Brasil - Meeting with Investors
TIM Brasil
September, 2012 - Meeting with Investors
January, 2013

2. Knowing TIM Better
Shareholders Structure TIM: A Huge Brazilian Company
 Presence in Brazil since 1998
TIM Brasil Serv. e Part. S.A. Minoritários  Unique Telco company listed on the Novo Mercado:
ON: 67% (1.611.969.946) ON: 33% (805.662.701)
.100% Tag Along and equal dividend rights
. One single class of shares
. Independent Board members
TIM Participações S.A. . A more strict disclosure policy
100% 100%  ~ 11,000 direct employees
 + 21,000 indirect jobs
TIM Celular S.A. Intelig
 +400,000 Points of Sales (Top-up and SIM cards)
 + 130 own stores
 > 70 million costumers. The 2nd player.
 11 Customer Care Centers with 14,000 consultants
Highest level of  ~ 11,500 antennas in 3,300 cities, covering +94% urban
Requirement of
protection for
Corporate population
Governance
minority
Demand for
transparency and shareholders  Exclusive attendance of 391 municipalities and 1.64
Legal disclosures million customers
Requirements
 Payment of R$7.3 billion in taxes and contributions in
2011
 Investment: Approx. R$3 billion in 2012 (from 2009 to
Brazilian Law “Nível” 1 “Nível” 2
2014, TIM expects to invest R$20.5 billion)
“Lei das S.A”
2

3. Strategy
3+

4. Macro-Economic Fundamentals Remain Solid
Families Income is increasing continually
Brazilian families consumption is growing every year
Average Real Salary (R$)
Families consumption on Brazilian GDP demand side - %YoY growth
8 2,000
6.9
1,900
7 6.1
5.7 1,800
6 5.2
4.8 1,700
5 4.4 4.1 4.3
1,600
4 3.0 1,500
3 1,400
2 1,300
Lowest
1 1,200
Growth 1,100
-
2006a 2007a 2008a 2009a 2010a 2011a 2012e 2013e 2014e 1,000
Family Indebtness will probably drop Unemployment rate is reaching a low record constantly
% debt service/families income Unemployment Rate(%)
30 13.0 12.4
12.0 11.5
25 22.4
19.1 19.2 20.3 19.5 20 20.2 11.0
17.8 9.9 10.0
20 10.0 9.3
Peak 9.0 8.1
15 7.9
8.0
10 6.7
7.0 6.0
6.0 5.5
5 4.8
5.0 4.2
- 4.0
3.0
Source: Credit Suisse, BaCen and IBGE 4

5. Mobile Business in Brazil is driving sector growth
A huge market…. …with demographic bonus … and still low Voice and Data usage
Serv.Rev. US$ Bln; Mln subs; 2011 Mln of people MoU (minutes); Data as a % of Serv. Rev.; 2011
173 2002 2009 2014 Minutes of Use %Data Serv. Rev.
Service 108 898
Revenue 82 Class
37 A/B 14.5 20 29.1
- 50.00 100.00
4o 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00
55%
C 67.5 95 118 452 38%
986 339 31%
D 46.1 44.5 32.1 19%
Subscriber 894 116
Base E 46.6 28.9 16.8
332
4o Above From US$891 From US$558 From zero
246 US$3.843 to US$3.843 to US$891 to US$558
- 200.00 400.00 600.00 800.00 1,000.00 1,200.00
Brazil: GDP vs. Telecom Revenues Growth ARPM Fixed vs. Mobile
% Growth YoY R$
Mobile
25%
20%
15%
10% TIM
5% Mobile Market 50% mobile
0% GDP**
discount
Fixed
-5%
-10% Wireline
Market* 2006 2007 2008 2009 2010 2011 2012
-15%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
**BaCen estimates for 3Q12
Source: Company estimates; BofA ML Global Wireless Matrix 3Q12; Teleco; IBGE; Bloomberg; Credit Suisse * Wireline Market is composed by incumbents only 5

6. Mobile Segment to Support Universalization
Customers Growth - Telecom Market Transformation
(Mln customers) Total Revenues- R$ Bln
+114% 258.9
242.2
202.9
174.0 106 117 126 134
150.6
Mobile 121.0
+11% (40%)
(44%)
Fixed (48%)
39.4 41.2 41.5 42.0 43.0 43.7
Fixed (56%)
2007 2008 2009 2010 2011 3Q12 (60%)
(56%)
Mobile Mobile
64% 79% 90% 105% 124% 132% (52%)
Penetration (44%)
Customers Growth – Broadband 2009 2011 2014 2016
(Mln customers)
50.8
+3,658%
33.2
Mobile
16.3 18.6
11.4
14.6 +86% Mobile Segment as the Growth Driver and
10.0
Fixed Sector Universalization
4.1 13.8
1.4
2008 2009 2010 2011 3Q12
6

7. FMS Secular Trend Remains on Play
Fixed to Mobile Substitution… …impacting Fixed Incumbents … benefiting Mobile Segment
Fixed Tariff Premium over Mobile Lines in Service
ARPM (R$/min) (Fixed - Residential, Mobile, D% yoy, D% yoy growth average)
Fixed +18% Mobile
(Residential) -6%
Mobile
50% mobile
discount
1Q11 3Q12 1Q11 3Q12
Fixed
Revenues
2006 2007 2008 2009 2010 2011 2012
(Fixed, Mobile, D% yoy, D% yoy growth average)
Leading Traffic to a Sharp Increase Fixed +9% Mobile
-7%
(Bln Minutes)
23.8 26.4
20.1 21.8 22.6
18.4
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 1Q11 3Q12 1Q11 3Q12
EBITDA
Leadership in LD Market Share (Integrated, Mobile as TIM, D% yoy, D% yoy growth average)
(% Minutes) Integrated Mobile
88.2% -5% +10%
66.5%
53.3% 49.8% 48.5% 48.3% 49.7%
6.7% 45.8% 47.8% 47.7% 48.1%
28.3% 42.0%
jun/09 jun/10 jun/10 dec/10 jun/11 dec/11 mar/12
1Q11 3Q12 1Q11 3Q12**
TIM Incumbents*
* Telemar, Brasil Telecom, Telesp e Embratel. Source: Companies results and Teleco. **TIM’s Organic EBITDA 7

8. 3Q12 in Few
8+

9. Main Highlights
Quarter’s Highlight
Total Net Revenues
(R$ Billion)
+11.0%
Revenue Growth  Solid data growth  MTR cut impact
+8.0%
19.1% (Revenues +35%  Provisioning of
8.0%
7.0% YoY) advertisement
4.7 13.7
4.4 12.4  Smart/webphone credit loss (R$16
sales pick-up mln)
1Q12 2Q12 3Q12
3Q11 3Q12 9M11 9M12  Sales resilience in  Provisioning for
spite of sales ban administrative
EBITDA procedures
 MOU at record established
(R$ Billion)
level of 139 between 2007/09
3.63 R$ 42mln
Organic EBITDA  Live TIM up and (R$26 mln)
1.24 R$ 42mln
+7.5% +8.6% Growth running  Intelig fixed
12.6%
6.0% 7.5%  Postpaid human at business
+3.8% 1.20 3.58 24% YoY growth performance
1.16 1.1
+7.3%
3.34
1Q12 2Q12 3Q12
3Q11 3Q12 9M11 9M12 Frost Abrasca
Sullivan Prize of Institutional
Best Value Investor
Practices Creation “Best IR Team”
Award
A tough quarter, but TIM is managing to recover
9

10. Reality Check: Recent Events Overshadowing Fundamentals
Sales Ban Drop Call Report Tax Issue Contingences
Impacts: Impacts: Event: Event:
 Reduction in gross  Damage on image  2006 corporate  Allegation of low
adds during the period restructuring (TIM provisioning for
Status: Nordeste + TIM
 Small economic contingencies
 Two independent Maxitel) was
impacts questioned by Federal Impacts:
consultants firms
 Damage on image concluded that the rate Tax Bureau in 2011  Damage on image
Status: of dropped calls on Impacts: Status:
3/8/12 showed no
 Ban lifted on 3rd of anomalies  Damage on image  No impact on financial
August Status:  Accrual based on
 Anatel is measuring the  Under discussion at internal and
evolution of the plan. administrative level of independent external
tax bureau. opinion expert,
following IFRS rules.
 There are precedents
Back to fundamentals
Customer Total Data Users Homes Passed
Base Traffic (unique) (households)
(users) (minutes)
Customer Total Data HP ready
Base Traffic Users to sell +17%
+28.3% +34% +2X
69.4 Mln 28.7 Bln 20 Mln 440k
Community FMS Internet for Tim Fiber
Sep11 Sep12 Sep11 Sep12 Sep11 Aug12 Sep11 Aug12
Expansion (Voice) everybody Fixed BB
10

11. Sales Growth Rebound
Gross Adds - Customer Base
(Weekly; ‘000 lines)
Back on track  Gross adds come back
 Prepaid resilient growth
Sales Ban Effect
 Postpaid acceleration on
S14 S16 S18 S20 S22 S24 S26 S28 S30 S32 S34 S36 S38 S40 human lines (ex-M2M)
Trendline
Sales Force Focus on Efficiency  Strong sales channel force
(Points of sale EoP) (R$; months)
SAC/
+12.6% 2.3
ARPU
Mass
QoQ
1.8  Efficient growth approach
~300k 55 1.7
Channel
36 34
+16.2%
QoQ SAC
Own
Stores 115 -34% -7%
3Q10 3Q11 3Q12
11

12. Operation Remains Solid
Customer Base Total Market Share Growth
(Million lines) (% of total lines)
+1.7 +0.5 D YoY
+3.1 D%
+4.9 3Q 30.1% 30.2% 30.1% 29.7%
+3.7 67.2 68.9 69.4 29.5% 29.5% 29.5% 29.5% 29.8% 29.6% 29.7% Vivo
+2.7 64.1
59.2 9.7 10.0 10.3 +1.6 +19% 640 290
55.5 9.3
52.8 8.7 bps
26.5% 26.8%
26.9% bps
7.7 8.0
Post 25.4% 25.3% 25.5% 25.4% 25.4% 25.5% 26.0% 26.8%
57.6 58.9 59.1 +8.6 +17%
50.6 54.8
Paid 45.1 47.5 25.1% 25.1% 25.6% 25.3%
24.9% 24.6% 24.6% Claro
24.5% 24.5%
24.0%
Largest 23.7%
Prepaid 20.4% 20.1%
Base 19.5% 19.4% 19.7%
19.1% 18.8% 18.8%
1st in yearly 18.5% 18.7% 18.7%
Oi
growth for 9
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 consecutive
Net Adds (000) quarters
Post Paid 223 317 632 655 348 348 261 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Pre Paid 1,598 2,359 3,053 4,219 2,786 1,308 274 Source: Anatel
Handset Sales Market Share Postpaid Base Analysis (ex-M2M)
(% of handset revenues 1H12) (Million lines)
-280k in 3Q12 (M2M D% YoY
disconnection effect)
10.4 10.3 10.4 10.5
10.2 +15%
Operators 7%  Leading the handset market. 9.8 9.9 10.0
9.5 9.7
9.3 9.4
57% Total 9.1
26%
31%  Even being the only player with “No 9.0 9.2 9.3 +22%
postpaid 8.6 8.9
43%
Subsidies” approach. base
Open Market
37%
 Driving data usage growth Human
541k Net Adds in 3Q12
lines
postpaid
P1 TIM P3 P4
base May 12 Nov 12
Nov 11 Feb 11 Sep 12
Source: Company estimates Source: Anatel
12

13. Consumers Complains: Good position at Anatel and Procons
IDA – Index of Attendance (last reported by Anatel)
(Points)
98.55 99.15 99.40 100.00 99.90 98.65
98.10 97.40 97.90 97.70
96.95 96.75
95.20 95.05 94.50
93.70 94.00 98.00 94.00
93.95 97.00 96.70 TIM
91.05 95.30 95.10
90.85 90.30 93.80 89.85 91.00
92.65 87.90 92.80 88.10
91.35 86.35 86.55 86.65
88.80
88.30 89.35
87.20 86.40
85.80 86.20
84.80 85.00
83.90 83.30 84.85
74.84
77.25
jul/11 aug/11 sep/11 oct/11 nov/11 dec/11 jan/12 feb/12 mar/12 apr/12 may/12 jun/12 jul/12
Source: Anatel
Volume of claims at Consumer’s Protection Agency (Procon) Procon Demands
(# Quarterly claims) (% of total)
21,179
19,245 TIM
18,560
16,013 15%
13,696 24%
11,788 12,348
10,687 10,508 18%
9,664 9,592 9,344
8,601 8,811
8,740 7,693
7,591 8,229
7,112
7,376 TIM 43%
6,032 7,416
6,286 7,166 7,422
6,673 6,229 6,533
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Source: SINDEC data base. Represents 45% of total Procons (17/10/12) Source: SINDEC
P1 TIM P3 P4
13

14. Customer Sentiment
• Reinforcing position of
Preference and Rejection of customers transparency
Transparency • Offer w/ no Tricks
(%)
• Clear communication
Preference ∆ Pref x Rej
32 31
30 • Anatel plan on track
28 28 29 28 28
25
27
Player 1: 19 Quality • Network development
23 22
21 22 • Caring effectiveness
21
Rejection 14 Player 3: 2
Relevant • Unlimited
15 15 15 15 Player 4: -8 • Convenient
13
11 11 11 10 11 10
9 9 9 Innovation • Innovative
May Oct May Nov Jun Nov Jul Nov Jun Nov May Nov May Aug Source: Ipsos
06 06 07 07 08 08 09 09 10 10 11 11 12 12 Research
TIM Quality Portal
www.tim.com.br/qualidade
 Anatel Plan Disclosure
 Real coverage
 Monitoring: footprint
• Network Improvement
 New and planned
• Quality KPI’s antennas
• Network Incidents and Alerts  Wi-Fi hotspots
14

15. Internet Continuous Take-Up: Handset + Offer
Products Net Revenues Smart/Web phone Penetration
(R$ Million) (% over total base of lines)
622 39.0%
+28% 35.2%
485 31.1%
26.6%
19.5%
15.4%
12.6%
VAS Gross Revenues
(R$ Billion; % of Gross Mobile Services Revenues)
3Q11 3Q12
% sales of 72%
71% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
web/smart 1.12
+35%
phones
0.83
SMS unique users growth Data users
(Daily unique users) (Million monthly unique users)
~20
+34%
3Q11 3Q12 ~15
+3X 15.7% 19.4%
+ 370 bps
3Q11 3Q12
3G
coverage
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 (% of urban 59% 69%
pop.)
15

16. Consistent EBITDA and Net Income Growth
EBITDA Evolution
(R$ Million)
16 mln of provision on advertising credit
+7.5% 26 mln of provision on Anatel administrative procedures
established between 2007/09
+45 +73 -155
+214 -89
1,244 -42 1,202
1,157
26.3%
26.5% EBITDA Margin 25.5%
32.0%
32.7% Service EBITDA Margin 31.0%
EBITDA Services Handset Marketing Network Pers./G&A Adj. EBITDA Non- Rep. EBITDA
3Q11 Revenues Margin and Sales and ITX and others 3Q12 recurring 3Q12
ΔYoY +5.5% -39.6% -7.2% +13.0% +21.9% +3.8%
From EBITDA to Net Income
(R$ Million)
1,202 16 + 26 = 42.1 mln – provisions
9.1 mln – monetary adjustments for the
administrative procedures
-657
545 -29
-198
369
318
EBITDA Depreciation/ EBIT Net Financial Taxes and Net Income Adj. Net
3Q12 Amortization Result Others 3Q12 Income 3Q12
ΔYoY +3.8% +1.9% +6.3% -52.9% +47% +0.4% +16.6%
16

17. Analysis on Efficiency & Cash Position
Handset Capitalized Subsidy Bad Debt Trend Leased Lines, Traffic and ITX Costs
(R$ Million) (as % of Gross Revenues) (Compound Growth Rate - Quarterly)
Efficiency Approach
Remains
Traffic
1.34%
64 1.14%
0.95%
6.4% Leased
Lines costs
1.2%
ITX costs
0 0 0.6% (ex-SMS)
3Q10 3Q11 3Q12 3Q10 3Q11 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12
Capex OFCF Net Debt
(R$ Million) (R$ Million) (R$ Million – EBITDA trailing 12m)
% for Infrastructure
Improving Cash
DOFCF R$144mln YoY
91% 92% DEBITDA-CAPEX= R$126mln
Generation
77% DWC R$17mln
2,079
853 +21% 827 1,458 1,550
772 684
604
526
3Q10 3Q11 3Q12 3Q10 3Q11 3Q12 3Q10 3Q11 3Q12
OFCF/ Net DEBT/
16.4% 15.6% 17.5% 0.5x 0.3x 0.3x
Net Rev. EBITDA
17

18. TIM Fiber Update
18+

19. Live TIM: Up & Running
MSANs Homes Passed
Ready to Sell
Optical Backbone 440k
Network 2
network 220k
Construction 1
3 2Q12 3Q12
Buildings authorized Building’s connected MSANs installed
5,700 7,101 2,100 3,026 214 405
2Q12 3Q12 2Q12 3Q12 2Q12 3Q12
Market Demand Quality of Service
(Units) (Mbps)
Download
Upload 35 37
20 21
Market Average 1.8 0.4
Demand and Speed
Quality of Market Live TIM Live TIM
Service Average (nominal) (delivered)
Blogger Richardmax: “Live Tim, so far, is the
only one to fulfill its promises, moreover above
Website the promises, because the 35Mb hired tests
120.5k
Registration are always above 37, and uploads are always
spiking 20. “
Specialist Blogger @ http://richardmax.rmax.com.br/
19

20. Live TIM: Speeding-Up with the New Offer
New Offer: Shaking the Broadband Market
Sales
(Average weekly sales)
After
Before Promo
Promo
~5X
Sep/12 Oct/12
Business Model Proving Itself
Coverage Capex
MSANs per Home Passed
Network Roll Out
~R$2k
(‘000 Households)
Optical Total Capex
Network ~R$80 ~590
per Sub Addressable
TIM ~R$5k Market
Int. Bench.*
Fiber (Homes passed)
~6X
Installation Capex ~R$700
per Sub >100
~R$800 TIM Int. Bench.*
Fiber
~R$300
May/12 Dec/12
TIM Int. Bench.*
*International Benchmarking
Fiber 20

21. Network & Quality
21+

22. The Mobile Operator which Invests the Most
Capex
(R$ Bln)
6
20.3% 19.6%
5.5 17.6% 17.3%
% Net Rev.
5
4.60
4.5
4
3.54 1.60
3.5
0.87
Acquisitions
3
2.5
2
1.5
2.67 2.83 3.00
2.37
Infrastructure Capex
Organic 1
2012-2014 (Anatel Plan):
0.5
0
2009 2010 2011 9M12
TIM: R$8.2 billion
Claro: R$6.3 billion
Focus on Infrastructure Vivo: R$6.2 billion
(% of Organic Capex)
Oi: R$5.5 billion
Commercial 6%
and Others 12% Total Capex: R$26.2
19%
33% billion
88% 94%
81%
Infrastructure 67%
2009 2010 2011 9M12
Source: Anatel and TIM 22

23. Mobile Operator with Robust Fixed Infrastructure
Backhaul Backbone
Wi-Fi na Rocinha
Metro Network (FTTS – focus on the Long Distance Network:
Confederation Cup and 2014 World
Cup):
2011 21,364 KM 2013 36,540 KM
 Construction of 42 metropolitan rings
by YE2014 2012 27,973 KM 2014 41,308 KM
Wi-Fi Project: Wi-Fi em Paraisópolis
Optical Fiber at Amazonas, Pará
Airports; and Amapá, through the LT
Amazonas
Communities
Macapá
Stadiums Boa Vista Belém
M São Luis
Parks / Leisure Areas M
Fortaleza
M
M Tucuruí Natal
Manaus M M
Teresina João Pessoa
3G
M
M
Recife
4G MMaceió
P. Velho Petrolina
Palmas M
Rio Branco
M
Aracaju
2G Cuiabá M
Brasília
M
Salvador
M
Goiânia M
M
BHE
M
M
M
M M M Vitoria M
Campo Grande M Campos
Maringa M M
M
M
M M
M
Rio de Janeiro
M
São Paulo
M
M
M Curitiba
M
Metropolitan M
Florianópolis
M
Optical Ring M
Porto Alegre
23

24. Business Outlook
24+

25. Conclusions & Outlook
Quality Improvement “Commitment with Anatel”
Voice Capacity Data Capacity FTTS (Fiber to the Site)
(‘000 TRXs) (‘000 channel elements) (‘000 Km Fiber)
95% 115% 96%
Done in Done in Done in
328
205 3Q12 3Q12 3Q12
157 +136% 29 38
+30% 139
+31%
2011 3Q12 2012 2011 3Q12 2012 2011 3Q12 2012
Business Fundamentals Remain Solid
Customer Base Growth MOU (FMS on Play) Data Revenues Accelerating TIM Fiber Network Roll-Out
(Millions) (Minutes) (R$ Billion; % Gross Mob. Serv. Rev.) (‘000 Households)
19% ~590
16%
13%
139 1.1
69.4 130 0.8
59.2 0.6
46.9 123 ~6X
Addressable
>100 Market
(Homes passed)
3Q10 3Q11 3Q12 3Q10 3Q11 3Q12 3Q10 3Q11 3Q12 May/12 Dec/12
Innovative approach 2012 guidance Better regulatory Tax easing
Outlook unchanged commitment environment policy
25

26. Appendix
26+

27. Regulatory Update
PGMC
• Access to fixed operators networks: • MTR (VU-M) billing system:
Unbundling of copper networks (Backbone, Backhaul and Last Mile at Full billing between PMS* players (i.e. TIM, Claro, Oi and Vivo).
regulated prices (wholesale vs. retail prices cross check). Partial bill and keep between non-PMS players (Nextel, CTBC and
No unbundling of fiber networks: exclusive use of fiber networks Sercomtel) and PMS players was defined as follows:
(including dark fiber) for 9 consecutive years (Regulatory Grace Period). 2013/2014: 80/20
2015: 60/40
• Infrastructure sharing: 2016: Full Billing
Sharing of the passive infrastructure (duct, conduits and towers).
• MTR cut path:
• National Roaming: 2013: 9.5% (~R$ 0.33/min.)
Charged at the lowest tariff in the market for non-PMS players (Nextel, 2014: 25% (~R$ 0.25/min.)
CTBC and Sercomtel). 2015: 33% (~R$ 0.17/min.)
2016: Cost Model
4G QUALITY
• 2.5 GHz: • Improvement Plan:
Contract is signed, 10% paid in 4Q12, 90% to be paid in 2Q13 Focus on the improvement of customer care and network.
(License value: R$ 382 mln).
Suppliers are defined: Huawei, Nokia-Siemens and Ericsson. • Anatel quarterly assessment:
Based on follow-up monthly meetings
• Future of 700 MHz Auction :
Ongoing discussion among Anatel, mobile carriers and • Indication of the integrality of the new quality rules
broadcasters on digital dividend. New broadband indicators start to be informed of November/ 2012.
*PMS as Significant Market Power. A player which has the power to influence a specific market. 27

28. Historical Data: Financials (R$ Thousand)
Description 3Q10 3Q11 4Q11 1Q12 2Q12 3Q12 3Q12 %YoY
Net Revenues 3,676,781 4,371,388 4,710,566 4,468,319 4,547,332 4,722,425 8.0%
Net Revenues on Services 3,418,253 3,886,617 4,259,425 4,015,418 3,984,174 4,100,249 5.5%
Net Revenues on Products 258,528 484,771 451,141 452,900 563,158 622,176 28.3%
Operating Expenses (2,641,685) (3,213,950) (3,393,208) (3,299,651) (3,332,903) (3,520,489) 9.5%
Personnel expenses (139,797) (158,351) (164,652) (175,997) (186,441) (170,138) 7.4%
Selling & marketing expenses (935,324) (1,010,953) (1,079,699) (1,017,959) (922,302) (938,184) -7.2%
Network & interconnection (1,075,302) (1,197,827) (1,280,617) (1,298,885) (1,309,694) (1,353,194) 13.0%
General & administrative (122,653) (110,262) (133,745) (131,808) (126,310) (152,854) 38.6%
Cost Of Goods Sold (274,594) (597,708) (544,674) (533,460) (631,464) (690,398) 15.5%
Bad Debt (69,397) (60,825) (62,451) (56,640) (62,050) (80,009) 31.5%
Other operational revenues (expenses) (24,618) (78,024) (127,370) (84,902) (94,641) (135,713) 73.9%
EBITDA 1,035,096 1,157,438 1,317,358 1,168,652 1,214,403 1,201,936 3.8%
EBITDA Margin 28.2% 26.5% 28.0% 26.2% 26.7% 25.5% 96 Bps
Adjusted EBITDA 1,035,096 1,157,438 1,317,358 1,168,652 1,214,403 1,244,066 7.5%
Adjusted EBITDA Margin 28.2% 26.5% 28.0% 26.2% 26.7% 26.3% 99 Bps
Depreciation & amortization (755,545) (644,560) (641,920) (656,629) (664,233) (656,887) 1.9%
EBIT 279,551 512,878 675,438 512,024 550,171 545,048 6.3%
Net Financial Results (58,840) (61,450) (100,817) (42,178) (63,588) (28,930) -52.9%
Income before taxes 220,711 451,429 574,621 469,845 486,583 516,118 14.3%
Income tax and social contribution (74,188) (134,796) (173,463) (193,407) (139,796) (198,088) 47.0%
Net Income 146,523 316,632 401,158 276,439 346,787 318,030 0.4%
Adjusted Net Income 146,523 316,632 401,158 276,439 346,787 369,285 16.6%
Description 2010 2011 YTD 2012
Net Revenues 14,457,450 17,085,976 13,738,075
Net Revenues on Services 13,571,626 15,353,228 12,099,841
Net Revenues on Products 885,824 1,732,748 1,638,234
Operating Expenses (10,263,854) (12,427,669) (10,153,043)
Personnel expenses (586,722) (632,828) (532,576)
Selling & marketing expenses (3,483,164) (3,933,753) (2,878,445)
Network & interconnection (4,227,042) (4,722,261) (3,961,773)
General & administrative (484,609) (502,640) (410,972)
Cost Of Goods Sold (1,026,091) (2,062,552) (1,855,321)
Bad Debt (310,498) (231,529) (198,699)
Other operational revenues (expenses) (145,728) (342,105) (315,256)
EBITDA 4,193,596 4,657,881 3,584,992
EBITDA Margin 29.0% 27.3% 26.1%
Adjusted EBITDA 4,193,596 4,658,307 3,627,122
Adjusted EBITDA Margin 29.0% 27.3% 26.4%
Depreciation & amortization (2,993,461) (2,590,865) (1,977,749)
EBIT 1,200,135 2,067,442 1,607,243
Net Financial Results (245,457) (238,857) (134,696)
Income before taxes 954,678 1,828,584 1,472,547
Income tax and social contribution 1,257,038 (547,357) (531,290)
Net Income 2,211,716 1,281,228 941,257
Adjusted Net Income 776,716 1,281,228 992,512 28

29. Historical Data: Financials (US$ Thousand)
Description 3Q10 3Q11 4Q11 1Q12 2Q12 3Q12 3Q12 %YoY
Net Revenues 2,101,289 2,672,520 2,615,277 2,524,263 2,315,258 2,327,699 -12.9%
Net Revenues on Services 1,953,540 2,376,148 2,364,807 2,268,409 2,028,529 2,021,026 -14.9%
Net Revenues on Products 147,749 296,373 250,470 255,855 286,730 306,673 3.5%
Operating Expenses (1,509,729) (1,964,901) (1,883,888) (1,864,054) (1,696,936) (1,735,261) -11.7%
Personnel expenses (79,895) (96,811) (91,414) (99,425) (94,926) (83,862) -13.4%
Selling & marketing expenses (534,540) (618,063) (599,442) (575,070) (469,587) (462,434) -25.2%
Network & interconnection (614,538) (732,311) (710,991) (733,772) (666,826) (666,994) -8.9%
General & administrative (70,096) (67,411) (74,255) (74,462) (64,310) (75,342) 11.8%
Cost Of Goods Sold (156,931) (365,419) (302,399) (301,365) (321,508) (340,299) -6.9%
Bad Debt (39,661) (37,186) (34,672) (31,997) (31,593) (39,437) 6.1%
Other operational revenues (expenses) (14,069) (47,701) (70,715) (47,963) (48,186) (66,893) 40.2%
EBITDA 591,560 707,619 731,389 660,201 618,309 592,438 -16.3%
EBITDA Margin 28.2% 26.5% 28.0% 26.2% 26.7% 25.5% 96 Bps
Adjusted EBITDA 591,560 707,619 731,389 660,201 618,309 613,204 -13.3%
Adjusted EBITDA Margin 28.2% 26.5% 28.0% 26.2% 26.7% 26.3% 99 Bps
Depreciation & amortization (431,796) (394,062) (356,390) (370,946) (338,192) (323,782) -17.8%
EBIT 159,764 313,557 374,999 289,255 280,118 268,656 -14.3%
Net Financial Results (33,627) (37,568) (55,973) (23,828) (32,375) (14,260) -62.0%
Income before taxes 126,137 275,988 319,026 265,427 247,742 254,396 -7.8%
Income tax and social contribution (42,399) (82,410) (96,305) (109,260) (71,177) (97,638) 18.5%
Net Income 83,738 193,579 222,721 156,167 176,566 156,758 -19.0%
Adjusted Net Income 83,738 193,579 222,721 156,167 176,566 182,022 -6.0%
Description 2010 2011 YTD 2012
Net Revenues 8,231,230 10,201,868 7,167,221
Net Revenues on Services 7,724,407 9,163,550 6,317,964
Net Revenues on Products 506,823 1,038,317 849,257
Operating Expenses (5,842,070) (7,422,671) (5,296,251)
Personnel expenses (333,456) (378,222) (278,212)
Selling & marketing expenses (1,982,451) (2,348,218) (1,507,091)
Network & interconnection (2,404,499) (2,819,498) (2,067,592)
General & administrative (275,650) (300,371) (214,114)
Cost Of Goods Sold (587,945) (1,235,395) (963,172)
Bad Debt (175,766) (138,555) (103,026)
Other operational revenues (expenses) (82,302) (202,411) (163,043)
EBITDA 2,389,160 2,778,941 1,870,948
EBITDA Margin 29.0% 27.2% 26.1%
Adjusted EBITDA 2,389,160 2,778,941 1,891,714
Adjusted EBITDA Margin 29.0% 27.2% 26.4%
Depreciation & amortization (1,700,012) (1,549,236) (1,032,919)
EBIT 689,148 1,229,961 838,029
Net Financial Results (139,353) (140,652) (70,463)
Income before taxes 549,795 1,089,309 767,566
Income tax and social contribution 745,372 (325,734) (278,075)
Net Income 1,295,167 763,575 489,491
Adjusted Net Income 449,352 763,575 514,755 29

30. Historical Data: Operational
Description 3Q10 3Q11 4Q11 1Q12 2Q12 3Q12 3Q12 %YoY
Brazilian Wireless Subscriber Base (000`s) 191,472 227,352 242,232 250,826 256,131 258,861 13.9%
Estimated Total Penetration 99.0% 116.5% 123.87% 128.00% 130.44% 131.56% 15 Bps
Municipalities Served (GSM) 3,200 3,259 3,294 3,305 3,312 3,320 1.9%
Market Share 24.52% 26.04% 26.46% 26.80% 26.89% 26.81% 3.0%
Total Lines (000's) 46,947 59,210 64,083 67,217 68,874 69,408 17.2%
Pre-paid Lines (000's) 39,711 50,559 54,778 57,564 58,873 59,146 17.0%
Post-paid Lines (000's) 7,236 8,651 9,305 9,653 10,001 10,262 18.6%
Gross Additions (000's) 7,463 10,186 11,836 9,880 9,814 8,727 -14.3%
Net Additions (000's) 2,522 3,685 4,873 3,134 1,656 534 -85.5%
Churn 11.1% 11.6% 11.7% 10.5% 12.1% 11.9% 0.3 bps
Total ARPU 23.5 21.2 21.9 19.1 18.3 18.9 -10.8%
Total MOU 123 130 131 126 127 139 6.5%
SAC 55 36 28 32 26 32 -11.1%
Handsets Sold (000's) 2,125 3,164 2,847 2,284 2,511 2,512 -20.6%
CAPEX (R$ Mln) 526 852 1,150 543 1,057 772 -9.5%
CAPEX (US$ Mln) 301 521 639 307 538 380 -27.0%
Employees 9,081 10,248 10,562 10,761 10,948 11,333 10.6%
30

31. 2012-14 Drivers of Growth
CAGR 11-14
3 Ways of Growth Revenue Growth
R$ billion
17.1
Total 13.8 14.5
Double digit
Revenue growth
15.3 Fixed
12.8 13.6
0.8
0.6 0.7
Services
Revenues 12.2 12.9 14.5 Mobile
90 25% VAS
200 mou
mln lines Incidence
2009 2010 2011 2012 2013 2014
Community Expansion FMS (Voice) Internet for All
Mobile Customer Base FMS – Voice (MOU) Internet for All (Mobile Data)
Million of lines Minutes of usage per line Data as % of Service Revenue
250
~200 ~25%
200
90
129
116
150
14%
64 83 12%
100
Double digit 11% Double digit
51 Double digit growth growth
41 growth 50
Outgoing Voice Revenues Data Revenues
0
2009 2010 2011 2012 2013 2014
2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014
31

32. Network Continuous Evolution
Network roadmap 2G (TRX Installed) 3G roll out
000 TRX Pop %
2G Managing the growth
271 >80%
Speed up the toll out in
3G 157
HSPA mode 64%
WiFi >10,000 hot spots
2011 2014 2011 2014
FTTS Deployment in Top 42 cities
FTTS Fiber Network
FTTH ~1 Mln households by 2015
% of total traffic 000 km
Efficiency >50,000 km in fiber optic
50% 53.0
42 Cities 24.1
TIM Fiber
TIM Fiber: a “no Capex intensive” 14 Cities 28.9
approach to offer Residential Ultra BB in
2012 2014 2011 Swap + 2014
SP/RJ built out
32

33. Take-aways on main TIM Brasil trends
Revenues (New vs Old Plan)
R$ Billion
MTR glide path (-20% real term) as of feb’12
New impacts approx. 250 bp in Revenues and
EBITDA
Old
Revenues Growth resulting from further CB, voice MOU
17.1
and internet browsing
14.5 For 2012, revenues growth at >10% YoY (vs.
15.5 R$17.1Bln in 2011)
14.5
1yr in advance
Network synergies from AES Integration
2010 2011 2012 2013 2014
Continuous efficiency in Go2Market (no
subsidy, SAC/bad debt)
Ebitda Absorbing MTR cut and TIM Fiber start-up
Organic Capex For 2012, Ebitda growth at >10% YoY (vs.
R$4.6Bln in 2011)
% of Revenues; R$ billion
19.6
20 17.5
 Expanding 2G capacity and 3G coverage
15
 Accelerate FTTS in Top 42 Cities and Wi-fi
10 offloading
3.0 3.0 3.0 3.0 Capex  Tim Fiber start-up
nds
2.8
CAPEX  CAPEX flat at 3 bln/year; R$9bn in 3 Years
excluding 4G spectrum license (R$ 382.2 mln)
2010 2011 2012 2013 2014
33

34. Taxation Over Telecom in Brazil
Tax Composition
Telecom Tax Aliquots in Brazil
% of Gross Revenues % of Net Revenues
30%-40%
In 2011, TIM paid R$7.3 25%-35%
bln of taxes, fees and 1.5%
contributions (~43% of
total net revenues) LatAm Average
20%
Mexico
15%
0.65%
3% Nicaragua
Cofins PIS/ ICMS Fust/ Total 15% Venezuela
PASEP FUNTEL 14%
Colombia
20%
Tax Relief - 1º Step: M2M Fistel and Smartphones (MP 563/2012) Ecuador
27%
Tax reduction Reduction in the Increase of Peru Brazil
price to Penetration 19% 40%
consumer Bolivia
13%
Chile
Social 19%
Impacts
Argentina
Possibility of Better 25%
higher Quality
investment in
network Paraguay
10%
Economic
Impact
Source: UIT, Deloitte and Acel
34