1. TIM Brasil - Meeting with Investors
TIM Brasil
September, 2012 - Meeting with Investors
March, 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  13th largest Private Company in Brazil (source: Exame
ON: 67% (1,611,969,946) ON: 33% (805,662,701) Magazine)
 Unique Telco company listed on the Novo Mercado:
TIM Participações S.A. .100% Tag Along and equal dividend rights
Market Cap . One single class of shares
(R$ Bln; CAGR)
. Independent Board members
+15%
. A more strict disclosure policy
22.3 19.8
17.7 16.9  +11,500 direct employees
11.5
 + 21,000 indirect jobs
 +400,000 Points of Sales (Top-up and SIM cards)
2008 2009 2010 2011 2012
 + 130 own stores
Corporate Governance
 > 70 million costumers. The 2nd player.
 11 Customer Care Centers with 14,000 consultants
Requirement of
Highest level of  ~ 11,500 antennas in 3,383 cities, covering +94% urban
Corporate
protection for
Governance population
Demand for minority
transparency and shareholders  Exclusive attendance of 391 municipalities and 1.64
disclosures
Legal million customers
Requirements
 Payment of R$8.1 billion in taxes and contributions in
2012
Brazilian Law “Nível” 1 “Nível” 2
 Investment: R$3.8 billion in 2012
“Lei das S.A”
2

3. 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 1,700
4.8
5 4.4 4.1 4.3 1,600
4 3.1 1,500
1,400
3
1,300
2 Lowest 1,200
1 Growth 1,100
- 1,000
2006a 2007a 2008a 2009a 2010a 2011a 2012a 2013e 2014e
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 21.9
19.1 19.2 20.3 19.5 20 20.2 11.0 9.9 10.0
20 17.8 10.0 9.3
9.0 7.9 8.1
15 Peak 8.0
6.7
10 7.0 6.0
6.0 5.5
4.8
5 5.0 4.2
4.0
-
3.0
Source: Credit Suisse, BaCen and IBGE 3

4. Strategy

5. Leveraging on Pure Mobile Competitive Advantage
Voice FMS: Mobile is more convenient than Fixed… Data Going Mobile: Internet has a great potential…
R$/minute, voice Mln Households;
Fixed BB by speed
% of connections
68 Mln
 Possess < 2 Mbps
38% 66%
Internet
connection
25.7 Mln
50% mobile
27% Other
discount 3.2 Mln
 Does NOT 28% 25% Lack of
Possess 62% 2.9 Mln Coverage
Internet
connection 41.9 Mln Intention
2006 2007 2008 2009 2010 2011 2012 48% Too
to buy
5.6 Mln Expensive
over next 12 months
Total Households Households which does
NOT possess
Voice FMS: …TIM, with no legacies, can only gain on the trend Data Going Mobile …Mobile has greater price efficiency
R$ billion, Net Revenue per Group (2012) Willingness to pay, % of households
Willingness to pay (% of Households)
Total 33.9 30.7 28.1 18.8 4.3 > R$ 250 1%
FMS R$ 250 2%
R$ 200 3% UBB
Fixed + Data Focus Live TIM
12.5 R$ 150 6%
+ Pay TV Approach
18.5 0.9 R$ 100 13%
19.0 R$ 80 20%
R$ 70 26%
Mobile 21.4 17.9 R$ 50 41%
12.2 9.1 R$ 40 50%
4.3 R$ 30 62%
R$ 20 68% Mobile
Vivo Claro Oi TIM GVT
R$ 10 73%
A pure mobile approach is the most suitable strategy to capture both opportunities
Source: Company estimates; CETIC dec’11;
5

6. Mobile Segment to Support Universalization
Customers Growth - Telecom Market Transformation
(Mln customers) Total Revenues- R$ Bln
261.8 CAGR ’12-’15
+116% 242.2
129 4%
202.9 124
174.0 116 28
22
150.6 104 (22%) 28%
14 (12%) (18%)
Mobile 121.0 • Mobile 6 (6%)
+12% Mobile: +7%
VAS
41.2 41.5 42.0 43.0 44.0 41 46 47 46
39.4 • Mobile 0%
(40%) (40%) (38%) (36%)
Fixed Voice
• Fixed 17 21
2007 2008 2009 2010 2011 2012 (16%) 23 25
Data* (18%) 7%
(19%) (19%)
Mobile 40 Fixed: -1%
35 32
Penetration
64% 79% 90% 105% 124% 133% • Fixed (38%) 30
-5%
(31%) (26%) (23%)
Voice
Customers Growth – Broadband
2009 2012 2014 2015
(Mln customers)
Market split between:
52.5
+38x Mobile 47 60 69 75
(45%) (52%) (56%) (58%)
33.2
57 56 55 55
Mobile Fixed (55%) (48%) (44%) (42%)
19.1
14.6 16.3
10.0 11.4 +90%
Fixed 4.1 13.8
1.4 Mobile Segment as the Growth Driver and
2008 2009 2010 2011 2012
Sector Universalization
6
*including Corporate/Wholesale

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$/min) (Fixed - Residential, Mobile, D% yoy, mln lines)
Fixed Mobile
(Residential) -6.8% +8.1%
Mobile -5.0% +19.4%
50% mobile 262
discount 22.1 242
20.6 19.6 203
2010 2011 2012 2010 2011 2012
Fixed
Revenues
2006 2007 2008 2009 2010 2011 2012
(Fixed, Mobile, D% yoy, R$ bln)
Leading Traffic to a Sharp Increase Fixed -6.3% Mobile
+7.7%
(Bln Minutes; Traffic Outgoing) -6.3%
+10.3%
21.8 22.6 23.7 26.4 29.1 36.0
20.1 33.7 56.2 60.6
31.6 51.0
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 2010 2011 2012 2010 2011 2012
Organic EBITDA
Leadership in LD Market Share (Integrated, Mobile as TIM, D% yoy, R$ bln)
(% Minutes) Integrated Mobile
88.2% -3.0%
66.5% +8.5%
53.3% 49.8% 48.5% 48.3% 49.7% -2.3%
+11.1%
6.7% 45.8% 47.8% 47.7% 48.1%
28.3% 42.0% 21.3 5.1
20.6 4.7
20.2 4.2
jun/09 jun/10 jun/10 dec/10 jun/11 dec/11 mar/12
TIM Incumbents* 2010 2011 2012
2010 2011 2012
* Telemar, Brasil Telecom, Telesp e Embratel. Source: Companies results and Teleco. 7

8. 2012 Results in a Few

9. Business Resilience Against a Strong Headwind
Operational Improvement
Users, Minutes, Unique Users, %YoY  Leader in customer base
+10% +14%
growth for the 10th
+22% consecutive quarter
150 ~21
70.3
67.2 68.9 69.4 139
64.1 131 126 127
~18  Leader in pre-paid
 #2 in post-paid voice (ex
- M2M and Dongles)
4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12
Customer Base – Mln Minutes of Usage Data Monthly Unique Users - Mln  Record of MoU at 150
min
 Smartphone penetration
Financials
reached 43% of total base
R$ Bln, %YoY
 Increasing investment to
Total Revenues Organic EBITDA Organic Net Income
R$3.4 Bln (+12% YoY) ex-
19% 27% 34% licenses
13% 16%
8% 7% 8% -2%
% YoY 7% 7% 6%  Organic Net Income FY12
= R$1.5 Bln (+17.4% YoY)
 EBITDA – Capex = R$1.6
0.5 Bln (ex-licenses)
5.0 0.4
4.7 0.3
4.5 1.2 1.2 1.4 0.3  Proposed dividends of
4.5 1.2
~R$743 mln (+39% YoY)
1Q12 2Q12 3Q12 4Q12 1Q12 2Q12 3Q12 4Q12 1Q12 2Q12 3Q12 4Q12
% Margin 26.2 26.7 26.3 28.4 6.1 7.5 9.0 9.2
9

10. Guidance: Check Point
%
2011 2012 Guidance
R$ billion Achievement
Total Net 17.1 18.8 18.8 100%
Revenues (+10%)
Organic EBITDA 4.7 5.1 5.1 100%
(+10%)
Organic Capex 3.0 3.4 3.0 113%
Tough Year Underscored by Solid Business Foundation
• Resilience of customer base growth • Macroeconomic slowdown Net Service Revenue Evolution
and usage (especially data) • Regulatory scrutiny 2.7%
• ARPU sequentially improving • Image damage
1.7%
1.8%
13.1%
• Good cost control (ITX / network • Increased competition 6.9%
costs up 9% while traffic +34%)
• Intelig’s business performance Intelig’s
• More investments in infrastructure below expectations
2011 YoY MTR Macro 2012 YoY
Net Service Impact Business Competition Net Service
Revs Impact Regulatory Revs
Impact
10

11. The Only Company to Gain Market Share
Total Market Share Growth
(% of total lines)
D 2012 vs. 2011 #1 Pre-paid
29.7% 29.5% 29.1% 28.9% +63 Bps
27.6% 28.3%
Vivo -45 Bps
26.9% 26.9% 199 Vivo
26.5% bps 28.0% 27.2% -78 Bps
457 +42 Bps
bps 25.4%
24.9% 24.9% 25.0% 24.1% 24.7% +67 Bps Claro
Claro +0 Bps
25.1% 20.1% Oi
19.5% -53 Bps
2011 2012
19.4%
18.8% 18.8% 18.9% #2 Voice Post-paid
Oi +3 Bps
38.2% 38.4% +21 Bps Vivo
The only mobile 22.0% 23.2% +121 Bps
operator which
2010 2011 2012 Jan/13 grew in 2012 -282 Bps Claro
23.9% 21.0%
15.3% 16.7% +143 Bps Oi
Source: Anatel 2Q12 4Q12
Sales Force Focus on Efficiency Bad Debt Trend
(Points of sale EoP) (R$; months) (as % of Gross Revenues)
2010 67 SAC/ 1.5
Own 1.3 1.4
ARPU
2011 81 +96%
Stores
2012 131 1.04%
36 0.92%
28 27 0.71%
SAC
3Q12 298k +9%
Mass -21% -5%
Channel 4Q12 QoQ
326k
4Q10 4Q11 4Q12 4Q10 4Q11 4Q12
11

12. Customer Base Evolution
Voice post-paid Base Analysis (ex-M2M and broadband)
(Million lines)
Customer Base Growth
(% YoY) 10.5 10.7 D% YoY
10.4
10.2 10.4 10.3 +15%
9.9 10.0
9.8
9.4 9.5 9.7
10.7 9.3
+15.5% Total post- 8.3 8.4 8.7 +25%
paid
10.3 base
10.0
9.7 Voice post- 4Q12: 519k Net adds
Post-paid paid base 34% Net share (#2)
9.3
Dec 11 Mar 12 Jun Sep 12 Dec 12
12
Source: Anatel
4Q11 1Q12 2Q12 3Q12 4Q12
+75 Bps Voice Growth (MOU)
(Minutes; %YoY; Top Up)
post- 14.5% 14.4% 14.5% 14.8% 15.3%
paid Mix
% YoY +1.7% +0.2% +0.2% +6.7% +14.5%
+8.8%
59.1 59.6 Top Up Volume
58.9
57.6 210
150
Pre-paid 183 +15%
139
54.8 131
126 127
4Q11 4Q12
4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12
Source: Anatel
12

13. Data as Key Driver for Growth
Products Net Revenues Handset Sales Market Share Smart/Web phone Penetration
(R$ Million) (% of handset revenues in 2012) (% over total base of lines)
+56.4% 1.6x
706 Operators 43.1%
8% 39.1%
622 35.2%
563 60% 19% 31.1%
451 453 40% 33% 26.6%
Open Market 40%
4Q11 1Q12 2Q12 3Q12 4Q12
P1 TIM P3 P4
Sales of web/smartphones
represented 65% Source: Company estimates 4Q11 1Q12 2Q12 3Q12 4Q12
VAS Gross Revenues SMS unique users growth Data users
(R$ Million; % of Gross Mobile Services Revenues) (Million Montlhy unique users) (Million monthly unique users)
19.6% 20.5%
18.1% 18.7% +21.5%
16.7% +24.6% >21
~18
+29.7%
1,243
1,132
1,000 1,031
958 4Q11 1Q12 2Q12 3Q12 4Q12
3G coverage
(% of urban 66% 72%
4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 pop.)
13

14. EBITDA & Efficiency
EBITDA Evolution
(R$ Million) 16 mln of provision on advertising credit
~400 26 mln of provision on Anatel administrative
procedures established between 2007/09
+69 +91 -630
+1,067 -202
5,052 -42 5,010
4,658
27.3% 26.9% 26.7%
EBITDA Margin
32.4% 32.1%
32.5% Service EBITDA Margin
EBITDA Δ Services Δ Handset Δ Marketing Δ Network Δ Pers./G&A Adj. EBITDA Non- Rep. EBITDA
2011 Revenues Margin and Sales and ITX and others 2012 recurring 3Q 2012
ΔYoY +6.9% -20.9% -2.3% +13.3% +11.8% +8.5% +7.6%
Handset Business and Commercial Efficiency Leased Lines, Traffic and ITX Costs
(%YoY) (Compound Growth Rate - Quarterly)
Traffic
Handset Business
6.9%
Net Product COGS +26%
+35%
Revenues
2011 2012
2011 2012 2011 2012
Leased ITX costs
Commercial Efficiency Lines costs (ex-SMS)
0.2%
Gross -0.6%
-3.4% Commissioning
Adds Expenses -9.3%
2011 2012 2011 2012
2011 2012 2011 2012
14

15. Net Income & Dividend
From EBITDA to Net Income
(R$ Million)
5,010
16 + 26 = 42.1 mln – provisions
9.1 mln – monetary adjustments for
the administrative procedures
-2,689
2,321 -168 -705
1,449 1,500
EBITDA Depreciation/ EBIT Net Financial Taxes and Net Income Adj. Net
2012 Amortization Result Others 2012 Income 2012
ΔYoY +7.6% +3.6% +12.6% -29.7% +29.1% +13.4% +17.4%
Organic Net Income Dividend Evolution
(R$ Million, CAGR) (R$ Million, CAGR, Reported Payout)
+22%
+39%
1,500 743
1,278 533
776 497
2010 2011 2012 2010 2011 2012
Payout
22% 42% 51%
Ratio
15

16. Cash Generation
2012 Operational Free Cash Flow Net Debt
(R$ Mln) (R$ Mln)
R$ 378.2 Mln
of 4G Licenses
EBITDA: -5,010
5,010 -3,765 D WC: -579
Capex: +3,765 Dividends: +523
~ R$ 340 Mln of Income Tax: +414
License payable Others: +295
441
-1,824
+579 1,824
+1,232 -151
EBITDA CAPEX Δ WC OFCF
%YoY +7.6 +24.4 +7,342 +12.4
2011 Oper. Non-Oper 2012
%Net FCF
26.7 20.1 3.1 9.7 Net FCF Net
Rev.
Debt Debt
5.1 Bln for Organic EBITDA in 2012 1.8 Bln of Oper. Free Cash Flow in 2012
3.4 Bln on Organic CapEx in 2012
16

17. 2012 Conclusion
% Households with only mobile services Fixed price premium over mobile TIM MoU
Mobile
(minutes)
55%
FMS on Play 49% 129 136
116
83
Fixed
2009 2011 2006 2009 2011 2014 2009 2010 2011 2012 2015e
Mobile Broadband Access per Social Class
Data Monthly Users
+600 bps +700 bps x2 x5 (Mln)
>21
Mobile ~18
Data 20% 20% 2010
Accelerating 18% 18%
14% 2011
11% 9%
4%
4Q11 1Q12 2Q12 3Q12 4Q12
A Class B Class C Class D/E Class
Source: PNAD (national institute of statistics)
MTR Path
MTR (Mobile Termination Rate) (R$/minute)
• Cut implemented
• Clear path towards 2016 0.37 0.33
MTR & EILD • Great contribution from mobile sector (ARPM -16%YoY) 0.25
partially
0.17
implemented
EILD (Leased lines)
• Resolution 590 released (cut up to 30%)
• Needed framework to be followed by incumbents
• Monopoly break 2012a 2013e 2014e 2015e
17

18. TIM Fiber Update

19. Live TIM: Up & Running
MSANs
Optical Backbone
Network 2
network
Construction 1
3
Buildings authorized Building’s connected MSANs installed
7.1 k 8.5 k 3.0 k 4.2 K 405 694
3Q12 4Q12 3Q12 4Q12 3Q12 4Q12
Capex per Client Quality of Service
(R$) (Average Speed in Mbps)
>700
35 37
500
Quality of 20 21
Service with
Low Cost 1.8 0.4
Market Average Live TIM Live TIM
2012 Dec/15e (nominal) (delivered)
Download Upload
19

20. Live TIM: Speeding-Up with the New Offer
Market Demand Offers
(Units) (Units)
Launch Promo Actual (jan13)
Website
Registration
160k
Customer Base / Sales weeks
Msan Installation Takeup (average)
('000 Clients) MKT share per Week per Coverage
10
Customer Base 10%
9
Sales
8
7
6
5 5%
4
3
2
1
0%
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33
may/12 jun/12 jul/12 aug/12 sep/12 oct/12 nov/12 dec/12
Week
20

21. Quality and Network

22. Keeping the Good Level of Caring Performance
IDA – Index of Caring Performance (last reported by Anatel) Anatel Ranking of Complains (last reported by Anatel)
(Points) (Index of Complains under 1,000 access)
0.60 0.60
0.55 0.57
98.10 97.70 98.65 0.52 0.53
97.40 97.10
95.20 94.80 0.47
0.42 0.44 0.45
94.00 0.41
93.80 0.47
94.50 95.30 95.10 88.95 0.47 0.47 TIM
86.35 86.55 88.10 92.60 TIM 0.32 0.31 0.29 0.30 0.32 0.42
86.65
88.80 0.35
86.30 80.20 0.30
77.63 0.30
83.90 83.30 0.25 0.25 0.26
0.24 0.23
77.25 76.28
74.84
71.12
Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12
Source: Anatel Source: Anatel
Volume of claims at Consumer’s Protection Agency (Procon) Procon Demands throughout 2012
(# Quarterly claims) (Thousands of Demands; Demands/thousand customers)
Total Demands for
21,618 19,838 1k customers
19,245 Demands
18,558
16,013 1.62
14,737 Oi 120.4
12,567 1.23
Claro/Embratel 102.7
10,687 10,510
9,344 8,882 8,913 Vivo/Telefônica 44 0.48
8,229 7,693 TIM
7,591 8,745
6,229 7,648 TIM/Intelig 32.3 0.46
7,166 6,533
4Q11 1Q12 2Q12 3Q12 4Q12
Source: SINDEC data base. Represents 45% of total Procons (12/31/12) Source: SINDEC published in Folha de São Paulo newspaper
P1 TIM P3 P4
22

23. Capex Analysis
Anatel Benchmark for 2012-2014 Network Targets
(R$ Bln) (km of fiber;units)
2012-2014 Capex FTTS 53 TRX (000)
(000 km) 271
9.9 39 +36%
2012 Extra Capex 205 +32%
0.4
over Anatel Plan +20% +39% +81%
2012a 2014e 2012a 2014e
FTTS Data Channel
9.5 # sites (000) Elements (000)
8.3 3.3
7.2 741
5.5 +160% +83%
1.3 406
TIM Claro Vivo Oi
2012a 2014e 2012a 2014e
Owned Network Leased Lines Opex Savings
(Thousand of leased lines; % of total transport network) (% of savings each year)
# Leased -35% Total Traffic +64% +39% +28%
Lines Growth %YoY
Inertial Opex
-80%
+33 p.p. -75%
-55%
% Owned Reported Opex
Network
2009 2010 2011 2012 2009 2010 2011 2012
23

24. Strengthening Network to Support Data Growth
Organic Capex (ex- 4G license)
(Capex/Sales, Mix of Investments; R$ bln)
As % of Net Revs.
19.6% 18.0% 18.0%
10.7
3.4 3.6
3.0
2.8
Infra
Invest. 2.7 3.1
2.3
Other
Invest. 0.5 0.3 0.2
2010 2011 2012 2013e 2014e 2015e
3G Coverage 3G Capacity (incremental node-B) LTE Roll Out
(# Cities, % Urban Population Covered)
 Focus on main urban areas;
% Urban Pop 80%
Covered 72%
66%  Quality vs. Quantity.
54%  Launch of LTE service in April 2013 in six
cities hosting the Confederations Cup,
+62% +37%  In the course of the year, all the 12 cities of
# cities 712 the FIFA World Cup 2014.
488
 Sticking to Anatel’s minimum coverage
210 requirements.
2010 2011 2012 2013e 2014e 2015e 2013 2014 2015
Old Plan New Plan
24

25. Business Outlook

26. Business Drivers of Growth
CAGR 12-15
4 Ways of Growth Revenue Growth
(Total Revenues,R$ billion)
High Single
Digit growth
18.8
17.1
14.5
Customer MoU VAS HH ready
Base Revenues to sell
>90 Mln >200 min >26% ~2Mln
Community FMS Internet for Tim Fiber
2010 2011 2012 2013e 2014e 2015e
Expansion (Voice) everybody Ultra BB
Mobile Customer Base FMS – Voice (MOU) Internet for All (Mobile Data)
Million of lines Minutes of usage per line Data as % of Gross Mobile Serv. Revs.
250
>200 25%
>26%
> 90
200
19%
150 20%
70.3 129 15%
64.1
150
116 15%
13%
51.0 100
Double digit 10%
Double digit
growth growth
50
5%
0 0%
2010 2011 2012 2013e 2014e 2015e 2010 2011 2012 2013e 2014e 2015e 2010 2011 2012 2013e 2014e 2015e
26

27. TIM Fiber Plan Update 2013/2015
Coverage (addressable)
Thousands of Households
4x ~2,000
Geographic Expansion
Geographic expansion for low-middle class and targeting high
~500 income neighborhood
2012 2013 2014 2015 • 2012: priority coverage in areas with high ‘A/B classes’
concentration
Efficient approach
MSAN port occupancy (%), Capex (R$) • 2013: chess board strategy and entering in class C
Port Occupancy (%)
80 • 2014: additional coverage in Rio de Janeiro and São
60 Paulo metropolitan regions, focusing class C
40 concentration areas
20
0
2012 2013 2014 2015
Coverage Capex Installation Capex Total Capex
per Home Passed per Sub per Sub
~R$2k ~R$800 ~R$5k
~R$300
~R$80 ~R$700
TIM Int. Bench.
TIM Int. Bench. TIM
Fiber Int. Bench.
Fiber Fiber
27

28. 2013-2015 Guidance
2013 -2015
R$ billion 2011 2012
CAGR Guidance
Total Net High Single Digit
Revenues 17.1 18.8
Growth
Organic EBITDA High Single Digit
4.6 5.1
Growth
Organic CapEx 3.0 3.4 10.7
28

29. Appendix

30. Historical Data: Financials (R$ Thousand)
30

31. Historical Data: Financials (US$ Thousand)
31

32. Historical Data: Operational
ROA: NOPLAT/Avg. Total Assets.
Calculation considers organic Net Income and EBITDA
32
2013e: Consensus and dividend yield from proposed 2012dividends of R$743 mln.

33. 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.) - effective in April, 2013.
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. 33

34. Taxation Over Telecom in Brazil
Tax Composition
~34%
~28% 1.5%
In 2012, TIM paid R$9.1
% of Gross bln in taxes, fees and
Revenues contributions (~48% of
total net revenues).
• R$1 bln in Fistel.
0.65% • R$8.1 bln in taxes,
contributions and
others fees.
3%
Cofins PIS/ ICMS Fust/ Total
PASEP FUNTEL
Tax Relief - 1º Step: M2M Fistel and Smartphones (MP 563/2012)
Tax reduction Reduction in the Increase of
price to Penetration
consumer
Social
Impacts
Possibility of Better
higher Quality
investment in
network
Economic
Impact
34

35. Shareholders Structure and Stock performance
Telecom Italia
100%
Stock Performance (base 100)*
Telecom Italia International N.V.
140
100%
120
TIM Brasil Serv. e Part. S.A. Minorities
100
ON: 67% (1,611,969,946) ON: 33% (805,662,701)
80
60
40
TIM Participações S.A. 20
0
100% 100%
TIM Celular S.A. Intelig TIMP3 Ibovespa TSU
*Last price as of 03/01/2012 35

36. Safe Harbor and IR Contacts
Safe Harbor Statements Investor Relations Team
Avenida das Américas, 3434 - Bloco 01
Statements in this presentation, as well as oral 6 andar – Barra da Tijuca
22640-102 Rio de Janeiro, RJ
statements made by the management of TIM E-mail: ri@timbrasil.com.br
Participações S.A. (the “Company”, or “TIM”), that
Rogério Tostes
are not historical fact constitute “forward looking E-mail: rtostes@timbrasil.com.br
statements” that involve factors that could cause Phone: +55 21 4109-3742
the actual results of the Company to differ Vicente Ferreira
E-mail: vdferreira@timbrasil.com.br
materially from historical results or from any Phone: +55 21 4109-3360
results expressed or implied by such forward
Leonardo Wanderley
looking statements. The Company cautions users E-mail: lwanderley@timbrasil.com.br
of this presentation not to place undue reliance on Phone: +55 21 4109-4017
forward looking statements, which may be based Gustavo Valente
E-mail: gvalente@timbrasil.com.br
on assumptions and anticipated events that do Phone: +55 21 4109-3446
not materialize.
Luiza Chaves
E-mail: luchaves@timbrasil.com.br
Phone: +55 21 4109-3751
Visit our Website
www.tim.com.br/ir
36