1. Results Presentation
TIM Participações S.A.
1

2. 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  Leader in pre-paid
64.1 131 ~18
126 127
 #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
0.3
4.7 0.3  Proposed dividends of
4.5 1.2 1.2 1.4
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
2

3. 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
3

4. Lessons Learned: Focus on Quality
1 One Network for all businesses
 Restructuring of the
network  More Strength
Management
Change  Intelig, TIM Fiber and TIM  Great resilience
Celular network to become
 Clear priorities
one single entity
2  The least claimed Telecom carrier at consumer
 Direct report to the CEO, a protection agency (Procon)
Structuring new division responsible to
 Delivery Anatel’s network plan
Quality assure quality measures, as
well as customer relation  Improved IDA (Index of caring performance) from 88 pts
satisfaction in August to near 93 pts in December (2nd best)
3  Launch of a comprehensive  Advertisement with the chairman and employees
website, focused on  Anatel Plan disclosure
Image
network quality  Real coverage footprint
Repair
 Market campaign focused  Quality KPI’s and network improvement/incidents
on transparency disclosure
4 3.4 Bi
 Focus on mobile 3 Bi +12% 18% of
Incremental infrastructure  Incremental Top Line
CapEx Investments
 Enhanced 3G coverage
2012E 2012A
4

5. Operations
5+

6. The only company to gain market share
Total Market Share Growth
(% of total lines)
D YoY #1 Pre-paid
30.1% 30.2% 30.1% 29.7% 29.8%
29.5% 29.5% 29.5% 29.5% 29.6% 29.7% 27.6% 28.3% +63 Bps
29.1% Vivo -45 Bps
221 28.0% 27.2% -78 Bps
640 26.8% 26.9% 26.8% 26.9%
26.5% bps
bps 26.0%
25.4%25.3% 25.5% 25.4% 25.6% 24.1% 24.7% +67 Bps
25.4% +42 Bps
24.9%
20.1% 19.5% -53 Bps
23.7%24.0% 25.1% 25.1% 25.5% 25.3%
24.9% 24.6% 24.5%
24.5% 24.6% Claro +0 Bps 2011 2012
20.4% 20.1% #2 Voice Post-paid
19.5% 19.4% 19.7% 19.1% 18.8% 18.8% 18.5% 18.7% 18.7% 18.8%
Oi +3 Bps 38.2% 38.4% +21 Bps
22.0% 23.2% +121 Bps
The only mobile
operator which -282 Bps
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 grew in 2012 23.9% 21.0%
15.3% 16.7% +143 Bps
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
6

7. Consumers Complaits: Good position at Anatel and Procons
IDA – Index of Attendance (last reported by Anatel) Anatel Ranking of Complaits (last reported by Anatel)
(Points) (Index of Complaints under 1,000 access)
0.64 0.63
99.40 100.00 99.90
96.75 97.90 0.50
96.15 95.15 0.47 0.48 0.50 0.50
95.05 98.00 0.47
93.95 97.00 96.70 0.41
89.85 91.00 88.00 89.35 0.39
90.30 0.44 0.34 0.44 TIM
87.90 92.80 TIM 0.40 0.41
89.35 84.01 0.32 0.30 0.26 0.27 0.38
0.24
86.40 86.20 0.27 0.30
84.80 84.85 0.24 0.28
73.26 0.21 0.20 0.20
72.72 73.15
Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12
Source: Anatel Source: Anatel
Volume of claims at Consumer’s Protection Agency (Procon) Procon Demands throughout 2012
(# Quarterly claims) (Mln of clients; Thousands of Demands) Best
position in
21,618 19,838 Telecom
19,245
18,558
16,013
14,737
12,567
10,687 10,510
9,344 8,882 8,913
8,229 7,693 TIM
7,591 8,745
6,229 7,166 7,648
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
7

8. Network and Quality
3G Coverage Anatel Plan: Network Development Anatel Plan: Quality Targets
(# Cities, % Urban Population Covered) (Units TRX, Km Fiber) (Preliminary Results)
% Urban Pop TRX (000) SMP5 – Call Completion
Covered 72%
54%
66%
 241
271 97%
 95% 95% 95%
205 205
712
# cities
2012a Anatel 2013e 2014e 2012a Anatel 2013e 2014e
488 Plan Plan
210 Data Channel Elements (000) 741 SMP7 – Drop Call
2010 2011 2012 406  328
517
1.7%  2.0% 2.0% 2.0%
2012a Anatel 2013e 2014e 2012a Anatel 2013e 2014e
Organic Capex (ex- 4G license) Plan Plan
(Capex/Sales, Mix of Investments) FTTS (Km of Fiber 000) 53 SMP8 – Data Connection Rate

47
19.6%
39  38
99%
95%
98% 98%
As % of 18.0% 18.0%
Net Revs
3.4 2012a Anatel 2013e 2014e 2012a Anatel 2013e 2014e
3.0
2.8 Plan Plan
FTTS (#Sites 000) 3.3 SMP9 – Data Connection Drop Rate
Infra 2.7
Invest. 2.3 2.7 3.1
1.3  1.3 3%  5% 5% 5%
Other
Invest. 0.5 0.3 0.2
2010 2011 2012 2012a Anatel 2013e 2014e 2012a Anatel 2013e 2014e
Plan Plan
8

9. Marketing
9+

10. Customer Base Evolution
Voice post-paid Base Analysis (ex-M2M and broadband)
(Million lines)
Customer Base Growth
(% YoY) 10.5 10.7 D% YoY
Thousands
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 12 Sep 12 Dec 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
pre-paid 150
139 183 +15%
54.8 131
126 127
4Q11 4Q12
4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12
Source: Anatel
10

11. Data as Key Driver for Growth
Products Net Revenues Handset Sales Market Share Smart/Web phone Penetration
(R$ Million) (% of handset revenues from Jan/12 to Nov/12) (% over total base of lines)
+56.4% 1.6x
706 Operators 43.1%
7% 39.1%
622 35.2%
563 54%
25% 31.1%
451 453 46% 30% 26.6%
Open Market 38%
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.)
11

12. Stabilized ARPU QoQ
Post-paid and Pre-paid ARPU
ARPU
(%QoQ)
(R$; QoQ%)
-6.8% +0.1% +3.4%
-4.5% +3.5% +5.1%
ARPU 19.1 18.9 19.9
18.3
Generated* Post-paid
1Q12 2Q12 3Q12 4Q12
Received*
1Q12 2Q12 3Q12 4Q12
YoY% -8.0% -15.3% -11.0% -9.5% +5.6%
-2.8% +3.2%
 Amid a 13.8% MTR cut, ARPU remains stable since Q2
 ARPU stabilized on a Quarter over Quarter basis Pre-paid
 FMS take-uo on voice and data helped ARPU dilution trend
 Strict churn policy increasing efficiency and ARPU
1Q12 2Q12 3Q12 4Q12
Incoming Outgoing VAS
*Generated: Outgoing Voice Services & VAS; Received: Incoming Services 12

13. Live TIM
13+

14. 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
14

15. Live TIM: Speeding-Up with the New Offer
Market Demand Offers
(Units) (Units)
Launch Promo Actual (jan13)
Website
Registration
160k
Customer Base / Sales Msan Installation Takeup (average) weeks
('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
15

16. Financials
16+

17. 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
17

18. 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
18

19. 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
19

20. Conclusions & Outlook
20+

21. 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%
A Class B Class C Class D/E Class 4Q11 1Q12 2Q12 3Q12 4Q12
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
21

22. 2013-2015 Guidance
Mobile Customer Base FMS – Voice (MOU) Internet for All (Mobile Data)
Million of lines Minutes of usage per line Data as % of Gross Mobile Revenue
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
2013 – 2015 Industrial Plan will be released on Feb 8th
www.tim.com.br/ir
or
www.telecomitalia.com/FY2012preliminary-webcast/ita
22