1. Meeting With Investors
TIM Participações S.A.
November
2013

2. Knowing TIM Better
TIM: A Huge Brazilian Company
15th Listing Anniversary
Gross Revenues
(R$ Bln)
27.8
Customer base
EoP (Million)
70.3
 Presence in Brazil since 1998.
 13th largest Private Company in Brazil (source: Exame
Magazine - 2013).
Organic
Growth
1998
Growth
Via
Acquisition
2012
1998
15,000 km fiber
optical backbone
5,500 km fiber
optical backhauling
2012
 Approximately R$22 billion of Market Capitalization.
Sales
Corporate Governance
Legal
Requirements
Requirement of
protection for
minority
Demand for
transparency and shareholders
disclosures
Brazilian Law “Nível” 1
Highest level of
Corporate
Governance
Network
• 72.9 million customers (27.2% Share)
• The 2nd Player - Market and Rev. Share.
• More than 400,000 points of sales.
• More than 130 own stores.
• 11 Customer Care Centers (14k
attendants)
• More than 12,000 Antennas.
• ~3,400 cities covered.
• 95% of urban pop. covered.
• ~46,000 km of optical fiber network.
“Nível” 2
“Lei das S.A”
Unique Telco company listed on the Novo Mercado:
.
100% Tag Along and equal dividend rights
.
One single class of shares
.
Strict disclosure policy
• 11,800 employees.
• 23,000 indirect jobs.
• R$9.1 billion in taxes payments in 2012.
• R$3.8 billion invested in 2012.
Independent Board members
.
Social
&
Economic
2

3. Macro Scenario: A Different Outlook
Real GDP Forecast
Inflation Forecast
(%YoY Growth; Source: BaCen)
(IPCA - %YoY Growth; Source: BaCen)
Old Scenario
New Scenario
Old Scenario
New Scenario
3.8
3.6
3,3
5.8
6.0
5.5
2,4
2,4
2,3
2,4
5.5
5.4
5.5
• Market consensus shows
now a softer growth.
5.0
2013
2014
2015
2016
2013
2014
2015
Interest Rate Forecast
• Telecom industry has
shown resilience, specially
in the mobile side, but it is
not completely immune.
FX Rate Forecast
(%Selic Target p.y. - Year average; Source: BaCen)
2016
( R$/US$ - Year average; Source: BaCen)
Market Consensus on Oct/12
Market Consensus on Oct/12
Market Consensus on Oct/13
Market Consensus on Oct/13
10.3
10.3
8.7
9.0
8.8
2014
2015
2016
8.4
10.0
2.3
2.4
2.4
2.0
2.0
2.0
2.1
2013
2014
2015
• Mobile sector will continue
to benefit from fixed-mobile
substitution, now also
strong on data.
2016
2.2
7.3
2013
3

4. Industry Overview & TIM Business Opportunity

5. Brazil Telcos X-Ray
Oi
Vivo
(2S13)
(2S13)
Fixed
Mobile
Fixed BB/TV
Mobile
Fixed
Fixed
BB
TV
49,708
18,330
5,911
890
18.7%
41.1%
29.2%
5.2%
Net Rev. (R$ Mln)
4,571
Fixed
BB
TV
TOTAL
76,200
10,416
3,837
537
ND
Market Share
28.7%
23.3%
18.9%
3.2%
ND
Net Rev. (R$ Mln)
ND
Fixed
Customers (‘000)
ND
Market Share
Mobile
11,177
TOTAL
Customers (‘000)
9,543
Fixed / Mobile
14,114
América Móvil Brazil
17,047
TIM
(2S13)
5,870
(2S13)
Fixed
Mobile
Fixed / Mobile
Fixed BB/TV
Mobile
Fixed
Fixed
BB
TV
TOTAL
Customers (‘000)
66,472
10,516
5,945
8,985
ND
Market Share
25.0%
22.7%
29.4%
53.0%
ND
Net Rev. (R$ Mln)
6,121
9,914
16,035
Fixed BB
Mobile
Fixed
Fixed
BB
TV
TOTAL
Customers (‘000)
72,195
492
26
-
ND
Market Share
27.2%
1.1%
0.1%
-
ND
-
-
-
-
9,699
Net Rev. (R$ Mln)*
*Organic Revenue
5

6. The Opportunity in Brazil and TIM’s Strategic Positioning
A. Continue to Explore Voice FMS
B. Lead the Data/Internet Wave




Market
 Very large voice market, although declining.
 High price umbrella in Fixed services.
 Customer migration to higher plans / hybrid and
postpaid.
Emerging data/internet user population.
Large unserved Internet demand.
Old Fixed networks legacy + bundle requirement.
Mobile as the natural vehicle for inclusion.
Voice Revenues
Voice Revenues
Voice Revenues
Data Revenues
R$ Bln Source: TIM)
(R$ bln;
R$ Bln Source: TIM)
(R$ bln;
41.1 42.8
39.9 41.2
33.8
45.7 46.8 46.0*
-3%
Mobile
Mobile
39.7 40.4 38.4
36.4 34.1
32.3
Fixed
-7%
13.4
2.7
Strategy/
Objectives
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FMS Customer Base Growth
Customer
Base
Expansion
15.1
4.0
16.7
17.9
5.8
8.0
19.2
20.4
21.7
+6%
+18%
10.5
13.3
Fixed
16.7
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
… Massive Mobile Internet Access
Internet and
Data
For All
C. Manage Existing Customer Base
* Excluded non recurrent and non-operational revenues (e.g.: towers sell)
6

7. Leveraging on Pure Mobile Competitive Advantage
Prepaid Leader
28.8% Market Share
Customer Base Evolution
(Market Share, Source: Anatel)
Vivo
3Q13 x 3Q10
30,1%
28,6%
-1.6 p.p.
2nd Overall
72.9 million customers
27,2%
Claro
25,5%
TIM
24,5%
25,1%
Oi
19,5%
18,6%
3Q10
+2.7p.p.
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
Voice FMS: …TIM, with no legacies, can only gain on the trend
(R$ billion, Net Revenue per Group (2012))
Total
33.9
Fixed + Data
+ Pay TV
12.5
30.7
18.5
Mobile
28.1
19.0
21.4
12.2
Vivo
Claro
1Q13
2Q13
Long Distance Leader
50% Market Share
-0.9 p.p.
3Q13
Voice FMS: Mobile is more convenient than Fixed…
(R$/minute, % over households with phones.)
18.8
FMS
Focus
0.9
4.3
29.5%
Rev. Share
50% mobile
discount
2006
2007
2008
48,9%
17.9
9.1
Oi
4Q12
-0.3 p.p.
2009
2010
2012
56,3%
% of households w/
mobile phones only
4.3
TIM
2011
GVT
2009
2012
A pure mobile approach is the most suitable strategy to capture both opportunities
Source: Company estimates; CETIC jun’13; Akamai ; PNAD - IBGE
7

8. Brazilian Internet Opportunities
Fixed Broadband Average Speed
(% Customers)
1%
24%
1%
26%
1%
38%
2%
31%
3%
31%
> 12Mbps
75%
72%
60%
67%
66%
>2 Mbps até 12
Mbps
2Q12
3Q12
4Q12
1Q13
2Q13
3%
3%
3%
3%
3%
49%
49%
2Q12
53%
44%
3Q12
56%
41%
4Q12
59%
38%
1Q13
62%
35%
2Q13
≤ 2 Mbps
> 12Mbps
>2 Mbps até 12
Mbps
≤ 2 Mbps
5%
8%
6%
10%
6%
14%
6%
16%
7%
17%
> 12Mbps
88%
84%
80%
78%
76%
>2 Mbps até 12
Mbps
2Q12
3Q12
4Q12
1Q13
2Q13
≤ 2 Mbps
> 12Mbps
40%
42%
44%
47%
50%
59%
57%
55%
52%
49%
1%
2Q12
1%
3Q12
1%
4Q12
1%
1Q13
1%
>2 Mbps até 12
Mbps
≤ 2 Mbps
2Q13
TIM`s services portfolio is ready to capture
opportunities in all broadband segments,
going mobile or going through its fixed ultra
broadband.
8

9. Pure Mobile Strategy Paying Off
Users’ Preference for Mobile
Low Fixed Broadband Quality
Entering in Data World Via Mobile
(%Households w/ mobile phones only)
( Brazil’s Average Speed; Source: Akamai)
(Mln users; Source: Anatel)
48,9%
77,9 +18x
56,3%
2Q13
52,5
2.4 Mbps
Mobile
2009
ANATEL: >50% of fixed broadband
connections are below 2Mbps
2012
Fixed
33,2
11,4
4,1
2009
14,6
19
20,2
2012
16,3
Aug/13
+77%
13,8
2010
2011
Net Revenues
EBITDA
(% YoY)
(% YoY; Not including assets sales; Mobile as TIM)
Fixed
Incumbents
-2,6%
-7,0%
3Q11
Fixed
Incumbents
3Q12
6,9%
3Q12
3Q13
3Q11
3Q13
7,1%
3Q11
-4,3%
-14,1%
-6,1%
3Q12
3Q13
3,9%
4,2%
3Q12
3Q13
11,7%
11,6%
Mobile
-6,2%
Mobile
3Q11
9

10. TIM’s Strategic Priorities
1
Network Quality
& Infrastructure
Solid Capex investment program.
Significant coverage and capacity improvement through
extensive own fiber infrastructure.
2
Strategy &
Offer Evolution
Continuous evolution of our offer platforms
(transparency, simplicity, convenience, microsegmentation).
Network Quality War Room approach.
Promoting data usage with handset strategy, new VAS
offers (e.g. TIMmusic) and 4G launch.
Efficient 4G Investment with RAN sharing.
Expanding postpaid and business user base.
Developing option value of Live TIM ultra-broadband
services.
3
Institutional
Relationships
External Positioning: Innovation, Quality, Transparency.
“Portas Abertas” customer portal for increased
transparency and network quality evolution.
Focus on regulatory and institutional dialogue.
4
People &
Organization
People Focus – highly skilled, highly motivated, right
organization.
Best Place to Work initiatives.
Renewing Sense of Pride and Belonging – One of
Brazil’s Top 15 Companies.
10

11. Recent Results: 3Q13 in Few

12. A Quarter in Few
3Q13
YoY
6M13
YoY
Total Revenues
5,083
7.6%
9,655
7.1%
− Service
4,207
2.6%
8,152
1.9%
1,362
21.5%
2,377
25.0%
876
40.9%
1,503
47.9%
EBITDA
1,252
4.2%
2,456
3.0%
CAPEX
1,175
52.3%
1,593
-0.4%
3Q13
YoY
6M13
YoY
Postpaid (mln users)
11.9
16.4%
11.4
13.9%
MOU (min)
150
8.4%
146
15.1%
R$ 18.6
-1.6%
R$ 18.3
-2.2%
Financial
R$ Million
− VAS*
− Handset
Operational
ARPU
*Mobile Gross Revenue
12

13. Operational Performance (1/2): Base Evolution & Quality Indicators
Customer Base Evolution
Mix of Post Paid
(Million lines; Source: Anatel; TIM)
(%; Source: Anatel)
D% YoY
69.4
70.3
71.2
72.2
72.9
10.7
10.9
11.4
11.9
59.6
60.8
29%
Market Share
+16%
60.3
(Lines; Market Share; Source: Anatel)
+5%
10.3
4G Update…
Post
Paid
59.1
3Q12 14.8%
61.0
29%
+3%
3Q13 16.4%
Pre
Paid
May/13
3Q12
4Q12
1Q13
2Q13
20%
23%
Jun/13
26%
Jul/13
Aug/13
Prudent strategy in the auction &
efficient roll-out paying-off
3Q13
Customer Care Performance
(Points; Complaints over 1000 lines; Average monthly claims. Source: Anatel (last reported); SINDEC)
Anatel IDA - Index of Caring Performance
99.9
98.0
92.8
94.9
0.7
93.0
84.9
Claims at Consumer’s Protection
Agency (SINDEC - Procon)
Anatel Complaints
0.5
0.4
76.1
0.3
0.2
0.2
62.6
Jun-12
Oct-12
Feb-13
Jun-13
0.3
0.3
Jun-12
TIM
Oct-12
P1
Feb-13
P3
Jun-13
7,192
7,075
4,176
6,692
4,518
2,961
3,801
2,722
3Q12
4Q12
1Q13
2Q13
3Q13
P4
13

14. Operational Performance (2/2): Strong Efficiency
Gross Additions
SAC* & SAC/ARPU
Bad Debt
(Million lines; Source: TIM)
(R$/gross adds; months)
(R$ Million; % of Gross Revs.)
SAC/
ARPU
(months)
1.6
% of
Gross
Revs.
33.6
10.2
Commercial
1.8
-31%
30.5
8.7
3Q12
3Q13
3Q12
3Q13
Total Traffic
(R$ million)
32.8
28.7
3Q12
*Subscriber Acquisition Cost
3Q13
Leased Lines Costs
(Bln minutes)
Network
56
Bad
Debt
SAC
(R$)
3Q12
0.7%
80
-9%
+17%
1.1%
0%
+14%
3Q13
3Q12
3Q13
14

15. Marketing: Keeping the Innovative Approach
Liberty Controle Express
 Pushing on Postpaid migration
 Payment via credit card
 TIM SIM blister for each
team.
 Increase Stickiness
~7x
Recent
Past
jan/13
Young
Chip Torcedor
 Young segment positioning
 Member get member through
social network since 2010.
14 Teams alread
sponsored
+56%
sep/13
sep/12
VOICE
DATA
Recarga Troco
Nonstop
Innovation
sep/13
International LD
Infinity Web + SMS
TIM Music
 Talk unlimited on-net for
R$2 for 2 days.
 Capture extra “charge”.
 Leveraging on micro
recharge on physical
PoS.
 Up selling approach,
targeting only customer
base.




 Internet + unlimited SMS
on/off-net.
 Pay per day.
 Combining Web and
SMS offers.
 Cross selling WEB and
SMS .




US:R$0,20/min.
+ 8 countries: R$0,50/min
FMS initiative.
Capturing the unexplored
mobile international calls
market.
 Market attended Today
through fixed carries.
Unlimited download.
Pay R$0.50/day.
Over the top service.
Increase customer
stickiness.
 Network friendly.
 13 million songs already
downloaded.
15

16. Marketing: Smartphone Supporting Data Growth
Smartphone Sales
Smart/Web phone Penetration
(% total handset sale)
(% over total base of lines)
3Q12
42%
30%
4Q12
46%
1Q13
46%
2Q13
3Q13
28%
19%
35%
24%
57%
13%
Webphone
39%
30%
21%
67%
Smartphone
 Smartphone approach to support
data usage growth.
43%
46%
50%
52%
 EBITDA neutral. No subsidy Policy!
 Leadership position in market of
handset (3Q13)
22%
39% market share of
smartphones sold
21%
3Q12
Essencial
4Q12
1Q13
2Q13
Jul 13
Launching entry-level 3G tablet
Data Users
VAS Revenue Growth
(% of Data Users in CB; million users)
(% of Mobile Services Gross Revenues; R$ Million)
34%
29%
Devices Share at Sales
23%
VAS/Revs. 19%
56%
46% Notebook
44%
19.9
3Q12
+23%
24.5
3Q13
1,362
VAS
Gross
Revs.
1,122
36% Tablets
+22%
17% Desktop
3Q12
3Q13
2010
2012
2014
2016
16

17. Financials: Evolution Analysis
EBITDA Analysis
Net Revenue Evolution
(R$ Million)
(R$ Million, % YoY)
Thousands
+7.6%
Service
4,722
+151
-45
+4.2%
+254
5,083
1,201
+2.6%
4,100
+107
+40.9%
622
-97
25.4%
4,207
+10
-6
25.3%
EBITDA Margin
31.0%
Handset
+38
31.5%
Service EBITDA Margin
1,252
24.6%
30.5%
876
Revenue
3Q12
Δ Mobile
Services
Δ Fixed
Services
Δ Handset
ΔYoY
+3.9%
-22.3%
EBITDA
3Q12
ΔServ.
Revs
ΔHandset
Margin
ΔMkt
and Sales
ΔYoY
+40.9%
Revenue
3Q13
+2.6%
-55.2%
+10.4%
ΔNetwork
and ITX
ΔPers./G&A EBITDA
and others
3Q13
-0.7%
+1.2%
From EBITDA to Net Income
(R$ Million)
3,708
-2,045
3Q13:
R$315 mln
-15.6% YoY
1,663
-202
-454
1,007
EBITDA
9M13
ΔYoY
Depreciation/
Amortization
EBIT
Net Financial
Result
Taxes and
Others
Net Income
9M13
+3.4%
+2.2%
+4.9%
+48%
-1.9%
+2.1%
17

18. Financial Position
Capex
~94% in
infrastructure
(R$ Mln)
D Working Capital
(R$ Mln)
987
1,175
+52%
853
-10%
252
LT Amazonas
772
+139%
413
923
3Q11
3Q12
OFCF
320
3Q13
D OFCF YoY: +R$471
3Q11
+29%
3Q12
3Q13
Net Debt
(R$ Mln)
(R$ Mln)
1,458
1,314
1,550
1,446
252
+56%
LT Amazonas
843
624
+35%
1,194
3Q11
3Q11
3Q12
3Q13
Net DEBT /
EBITDA
(trailing 12m)
0.32
3Q12
0.29
3Q13
0.28
18

19. Network and Infrastructure

20. Network Check Point: Mobile BB Plan & Backhauling
Backhauling
Evolution
Key Steps for Improvement: MBB/FTTS Project
POP MW
 Own fiber reaching ~85% of antennas at major
cities.
POP MW
BSC-RNC Site
 Targeting 38 main cities till year end.
 FTTS: From 2-8 Mbps link to +100 Mbps.
POP MW
POP MW
 Caching, Peering, Web Acceleration.
POP MW
 Macro coverage fine tuning for mobile
broadband.
Results for Recife
Our 1st out of 38 cities
Downlink throughput (Kbps)
4x
MBB Coverage
Q2
Q3
2,394
1,660
TIM
979
Market Average
574
Apr/13
Source: TIM
Sep/13
3G (HSPA)
MBB (HSPA+ DC)
20

21. Network Check Point: Backbone Evolution
HLR
Resiliency
Amazon Fiber
Backbone
Project Details:
Boa Vista Macapá
Manaus
Belém
Jurupari Tucuruí
Maceió
Porto Velho
Increasing
number of HLR
Centrals.
From 3 to 8.
Fortaleza
Salvador
Cuiabá
Rondonópolis
Brasília
Goiânia
Belo Horizonte
Vitória
Campo Grande Preto
Rib.
Rio de Janeiro
Umuarama São Paulo
Curitiba
Santa Maria Florianópolis
Porto Alegre
 ~R$200 million
 27 cities
 1,757 km
 Capacity:
75 x 100 Gbps
Existing network
Network in construction
LT Amazonas network
98-08
PURE MOBILE
INFRASTRUCTURE
2009
INTELIG
ACQUISITION
2011
ATIMUS ACQUISITION
FIBER TO THE
2013
RJ & SP
AMAZON
2016
MASSIVE LD
BACKBONE
Fiber
Timeline
0 KM of FIBER
+ 15,000 KM of FIBER
20,500 KM of FIBER
46,000 KM of FIBER
By YE13
65,000 KM of FIBER
21

22. Network Commitments
Network Elements Expansion…
(units. Source: Company)
BTS
Channel Elements
(Data Capacity; 000)
12.120
11.607
464
+86%
250
+4%
TRX
(Voice Capacity; 000)
215
+19%
181
Jun/12
Jun/13
Jun/12
Jun/12
Jun/13
Jun/13
…Driving Quality Improvements
(% of success; % of call/data connection drop; Source: Anatel)
Voice Network Access Rate
Voice Network Drop Rate
Data Network Access Rate
97,1%
Data Network Disconnection Rate
98%
95,7%
95%
1,3%
1,1%
2%
95,9%
96,0%
1,5%
Aug/12
Apr/13
Aug/12
Apr/13
Aug/12
Apr/13
1,7%
Aug/12
5%
Apr/13
Target agreed w/ Anatel
22

23. Capex Analysis
Benchmark: Anatel Plan for 2012-2014
Organic Capex (ex-4G licenses)
(R$ Bln)
(Capex/Sales; Mix of Investments; R$ bln)
2012-2014 Capex
As % of Net Revs.
9.9
2012 Extra
Capex over
Anatel Plan
19,6%
0.4
+20%
+39%
18,0%
+81%
8,3
Infra
Invest.
7,2
5,5
TIM
Claro
Vivo
3.4
3.0
2.8
9,5
18,0%
Other
Invest.
3.1
2.7
2.3
0.5
0.3
0.2
2010
Oi
3.6
2011
2012
Owned Network Deployment….
… Driving Network Opex Savings
(% of total transport network)
2013e
(% YoY)
Q3 2013
20%
48%
Voice
Postpaid
+23% YoY
14,0%
52%
80%
2009
2012
Owned
Rented
5.0%
Total Traffic
Customer Base
0,0%
Leased Lines
Costs
23

24. Live TIM

25. Live TIM: Maintaining the High Speed Mode
Net Adds
 Accelerating
improving ARPU;
sales
and
Customer Base
(000 Clients; Source: TIM)
(000 Clients; Source: Anatel)
42.6
9.7
1.6
4Q12
1Q13
2Q13
3Q13
3Q12
Clients highly satisfied
Clients highly satisfied
Network Evolution
(000 Addressable Households ; Source: TIM)
804
881
609
General Satisfaction
38 neighborhoods in SP
34 neighborhoods in Rio
1Q13
2Q13
8,3
GVT
7.1%
7,5
OTHER
5.6%
9,0
7,2
8,0
8,0
Conection Quality
3Q13
7,5
Phone Attending
6,9
6.0
6,6
7.0
3Q13
2Q13
TIM
7,3
Bill
257
1Q13
(UBB >34MB ; Source: Anatel)
P2
6,9
Offer
522
4Q12
Market Share SP+RJ (August)
Source: TNS Market Research
P1
4Q12
16.3
6.6
1.2
3Q12
3Q12
26.4
10.1
8.1
 Reference as UBB service
provider ( >50% net share).
16.2
13.3x
 Taking the lead as #1
challenger in Rio and São Paulo;
7,9
9,1
8,7
NET
8.9%
7,7
8.0
LIVE
TIM
48.5%
VIVO
22.0%
9.0
10.0
OI
7.8%
25

26. Business Outlook

27. Where We Are: TIM 2013 Year-to-Date Results
Financial
9M13
YoY
R$ Million
Total Revenues
14,738
7.3%
− Service
12,359
2.1%
− VAS*
3,899
23.7%
− Handset
2,379
45.2%
EBITDA
3,708
3.4%
CAPEX
2,769
+16.8%
Operational
9M13
YoY
• Consistent financial and operational
results even amidst a different macro
scenario
• Continuous growth/acceleration on
postpaid, improving customer base
mix, ARPU evolution.
• Maintaining data services at double
digit growth, underscored by
smartphone sales and innovative
offers.
• Solid improvement on Network and
Quality indicators.
• Executing Fiber-to-the-Site (FTTS)
project and 3G/4G roll-out,
guaranteeing mobile broadband
acceleration.
Postpaid (mln users)
11.9
16.4%
MOU (min)
147
12.7%
• Strong efficiency: Industry benchmark
for SAC and bad debt.
R$ 18.4
-2.0%
• Strong savings on leased lines costs,
even with traffic double digit growth.
ARPU
Reported figures for TIM Part.
*Gross Mobile Revenues
27

28. Strategy: Infrastructure Evolution
Backhauling
Evolution
Increased Coverage and Access Capacity
Fiber to the site / Mobile Broadband
Project Key to Data Growth
POP MW
POP MW
BSC-RNC Site
 LTE Ready.
82% urban
population
#NodeB / eNodeB
(3G + 4G)
 Targeting 38 cities in 2013,+100 cities till 2016.
 From 2-8 to +100 Mbps.
# new elements
95% urban
population
# BTS
(2G)
2013
2014
2015
2016
POP MW
Capex Evolution Towards Data
 Macro coverage fine tuning.
POP MW POP MW
% of total Capex
 Focus on IP infrastructure, caching, peering.
Fiber base
Infrastructure
2013
INTELIG
2009
ACQUISITION
FIBER TO THE
2013
AMAZON
2016
MASSIVE LD
BACKBONE
2014
LTE*
2015
3G
2016
2G
Small Cell Approach
# new elements
INTELIG 15,000KM
46,000 KM OF FIBER
BY YE13
65,000 KM OF FIBER
New Sites.
Including
Small Cell.
2012
2013e
2014e
2015e
2016e
 New backbone routes- Increasing resilience.
*Includes 2.5GHz RAN Sharing.
28

29. Offer Evolution
Smart/Web phone Penetration
Voice MOU
(% over total base of lines)
Innovative
Offers Driving
Growth and
Differentiation
(Minutes)
>170
>75%
150
136
52%
43%
2012
Jul 13
2012
2016e
3Q13
2016e
Data Users
VAS Revenue Growth
(% of Data Users in CB; million users)
(% of Mobile Services Gross Revenues; R$ Million)
>50%
34%
29%
VAS/Revs.
>40%
23%
21%
XX%
+15%
21.3
2012
3Q13
+XX%
+XX%
24.5
VAS
Gross
Revs.
2016e
2012
2013e
2016e
29

30. BUSINESS STABILIZATION
AND RECOVERY
INTELIG
Fixed Business Evolution
• Focus on value, selecting high margin
customers.
Top Line: Recovery Path
• Selective approach focused on high potential
verticals: Finance, ISP (data), Call Center
(voice).
• Network ready to retake sales.
2012
2013e
2014e
2015e
2016e
2014e
2015e
2016e
EBITDA: Inflection Point
• Increasing addressable market with mobile
synergy approach.
•
Optimize investment leveraging on multi
service networks.
2012
2013e
Addressable Households
Sustainable Growth Mode
TIM FIBER
´000
• Leading the market share for speed above
34Mbps (ultra BB offers).
522
2012
• Leveraging fiber assets in SP and RJ with
reduced investment and efficient approach.
881
3Q13
2016
UBB Market Share RJ/SP (Aug13)
>34 Mbps download speed
• Good potential at SME segment.
GVT 7.1%
• Strong support to mobile business w/ small cell
backhauling.
OTHER5.6%
LIVE TIM
VIVO 22.0%
48.5%
NET 8.9%
OI 7.8%
30

31. TIM Part: 2014-2016 Guidance
Guidance
R$ billion
18,8
2013-2016 CAGR:
Mid Single Digit Growth
Total Net Revenues
2012
2013e
2014e
2015e
2016e
R$ billion
5
EBITDA
2013-2016 CAGR:
Mid Single Digit Growth
2012
2013e
2014e
2015e
2016e
R$ billion
3.8
CAPEX
Infrastructure
Total CAPEX 2014-2016:
~R$11 billion*
3,2
Others/Licenses 0,5
2012
*Does not consider 4G licenses (700Mhz).
2013e
2014e
2015e
2016e
31

32. Appendix

33. Market Share Evolution
Total Customer Base
(% Market Share)
2012 Mobile Net Revenue Share
Size: 268,270 thousand
(% 2012Total Net Revenue)
Penetration rate: 135.3%
29,7%
28,6%
26,8%
27,2%
24,5%
25,1%
18,7%
18,6%
P4
P1
P3
15,0%
TIM
20,2%
P3
35,3%
P4
29,5%
P1
Total Prepaid Customer Base
Total Voice Postpaid Customer Base
(% Market Share)
TIM
(% Market Share)
39,8%
38,4%
28,0%
28,1%
28,8%
25,8%
25,3%
24,1%
19,5%
19,7%
P1
TIM
P1
P3
P4
16,1%
24,1%
TIM
20,0%
22,0%
22,8%
P3
16,0%
P4
33

34. Mobile Internet and Its Great Business Opportunity
FMS on Data
Internet Users Penetration: large room for growth...
(% over households with internet connection)
(% population who has used internet within the last 3 months)
89
86
81
80
74
Fixed*
34
39
41
46
49
Social Class Split
1
3
2008
2009
10
2010
17
21
A: 94%
Mobile
B: 80%
2011
2008
2012
2009
2010
2011
2012
C: 47%
DE: 14%
68 mln
people
never used
internet
*Includes dial-up connection
Mobile Devices are also increasing its presence…
…and usage is 4 years behind
(% Presence over households)
(% internet users within the last 3 months)
67
Notebooks
41
35
23
10
30
7
30
2009
2010
2011
2012
10
4
23
7
60
14
2
2008
53
58
69
24
50
9
9
Euro Area data in
2008:
Everyday: 70%
Once a Week: 20%
Once a Month: 7%
Tablets
2008
2009
2010
2011
2012
Everyday/Almost Everyday
At least once a week
At least once a month
Source: CETIC jun’13; Data Market
34

35. Still Increasing Internet Penetration and Data Market
61.3 Mln
(40%)
1%
R$ 250
1%
R$ 200
2%
R$ 150
5%
R$ 100
32%
11.8 mln
Other
Does NOT
Possess
Internet
connection
60%
36.8 mln
R$ 80
R$ 70
Lack of
(60%)
coverage
24%
8.8 mln
R$ 50
R$ 40
R$ 30
Too
Expensive
Total Households
44%
16.2 mln
CABLE
FTTH
> R$ 250
R$ 20
R$ 10
12%
ADSL
VDSL
53% of active connection
base has currently a
speed below 2Mbps
18%
24%
39%
48%
59%
65%
MBB
40%
24.5 mln
Possess
Internet
connection
Willingness to pay (% of Households)
71%
Households which does
NOT possess
Source: CETIC´13
Market Data Revenues Growth 2016 vs. 2012:

>13 bln Reais on Mobile (+100%)

>7 bln Reais on Fixed (+35%)
35

36. Understanding Internet Usage Trends
Going deeper into wireless penetration in Brazil
(%)
# SIM Cards
124
133
Wireless
Penetration
2008
2009
2010
2011
Real
80 Penetration
2
3+
A
3%
67%
24%
6%
7%
63%
24%
5%
17%
62%
17%
3%
41%
47%
10%
1%
Total
63
76
1
DE
56
67
0
C
79
Social
Class
B
105
91
20%
59%
17%
3%
2012
Our current portfolio reflects consumer’s behavior
(Activities over mobile phone; % users who have used mobile within the last 3 months)
64
57
49
47
Send SMS
Listen Music
31
24
22
Internet
18
5
2010
2011
Source: CETIC jun’13; Data Market; Anatel
2012
36

37. Historical Data: Financials (R$ Thousand)
37

38. Historical Data: Financials (US$ Thousand)
38

39. Historical Data: Operational & Financial Ratios
ROA: NOPLAT/Avg. Total Assets.
Calculation considers organic Net Income and EBITDA
2013e: Consensus and dividend yield from approved 2012 dividends of R$743 mln.
2013e Multiples related to 2014YE estimates..
39

40. Taxation Over Telecom in Brazil
Tax Composition
~34%
~28%
1.5%
In 2012, TIM paid R$9.1
bln in taxes, fees and
contributions (~48% of
total net revenues).
• R$1 bln in Fistel.
• R$8.1 bln in taxes,
contributions
and
others fees.
% of Gross
Revenues
0.65%
3%
Cofins
PIS/
PASEP
ICMS
Fust/
FUNTEL
Total
Tax Relief - 1º Step: M2M Fistel to drop and Smartphones tax exemption (Law 12,715/2012)
Tax reduction
Reduction in the
price to
consumer
Increase of
Penetration
Social
Impacts
Possibility of
higher
investment in
network
Better
Quality
Economic
Impact
40

41. Shareholders Structure and Stock performance
Telecom Italia
Stock Performance (base 100)*
100%
Telecom Italia International N.V.
180
100%
TIM Brasil Serv. e Part. S.A.
Minorities
ON: 33% (805,662,701)
ON: 67% (1,611,969,946)
160
140
120
100
80
60
40
TIM Participações S.A.
100%
TIM Celular S.A.
*Last price as of 11/01/2013
20
100%
Intelig
0
TIMP3
Ibovespa
TSU
41

42. Safe Harbor and IR Contacts
Safe Harbor Statements
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.
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
Gustavo Valente
E-mail: gvalente@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
42