TIM Day that happened in London on November 2014.

1. TIM Day in London November, 12,2014

2. A SOLID HISTORY OF GROWTH
2
TIM’s Position
Long Distance Leader
2nd in Market Share Overall
Smartphone Sales Leader
1998
2003
2009
2014
Prepaid Leader
Gross Revenues
(R$ bln)
Customer Base EoP (mln customers)
19
20
25
28
30
2009
2010
2011
2012
2013
3.5
4.2
4.7
5.0
5.2
2009
2010
2011
2012
2013
41
51
64
70
73
2009
2010
2011
2012
2013
EBITDA (R$ bln)
CAGR+12%
CAGR+10%
CAGR+16%
1
2
1
1

3. 4%
12%
11%
52%
2011
2014
2014
53%
64%
79%
90%
2006
2007
2009
Tablet
Smartphone
56%
48%
42%
34%
27%
27%
23%
•Incoming calls only device
Mobile Penetration
(% over population)
DATA THE NEW GROWTH WAVE
Data Penetration
(% of data over total revenues in 3Q13)
248
212
166
162
140
139
91
MOU in 2008
(minutes)
•Still a lot of phones without data access
•Wi-Fi only devices
PCs, Notebooks, Feature Phones
...was similar to the challenge in data growth now
Challenge in voice growth in 2009…
Goal: increase voice usage
Challenge: deliver the best experience in mobile internet
Source: Anatel and IBGE
Source: IDC
Source: Global Matrix
High Growth
“Fear” to use
Low Usage
Handset Sales Share
2006
2007
2008
2009
2011
3

4. 39
81
2013
1Q14
2Q14
3Q14
900 Mhz rollout according to plan (above 600 sites using the new frequency)
Expanding backhauling
INFRASTRUCTURE (R)EVOLUTION
4
Mobile Broadband Update
Cities Covered with MBB project
% of urban population covered
Improving Quality and 4G Services (e.g.: SP)
Reduction in dropped call rates and better overall performance
Higher average throughput rates
Improvement in indoor coverage
Increase in data and voice traffics
30%
31%
32%
Source: ANATEL app
36%
99.0%
97.95%
97.53%
98.36%
Voice Access
# Antennas
Investing Efficiently
Big Data analysis for capex allocation
Antenna level return analyses (IRR and payback)
50%
88%
50%
12%
9M13
9M14
Infrastructure Investment Mix
(as % of capex)
2G
3G + 4G
+38 p.p.
Δ YoY
Technology
Small cells in gas stations: agreement with a tower company to install more than 150 small cells inside Totem
BioSite: sustainable coverage, bringing harmony between environment and technology
Innovative Coverage Expansion
After
Before

5. DRIVEN BY INNOVATION
5
PREPAID MOBILE ACCOUNT/ MONEY
oPartnership: TIM, Mastercard and Caixa Econômica Federal
oFocus on unbanked population ( >50% of prepaid base)
NEW MUSIC PLATFORM
oPartnership TIM and Deezer (top global streaming platform)
oMore than 35 million music available for download
oMaintaining leadership position in the mobile music industry in Brazil
INTERNET SHARING PLANS
oUp to 4 devices
oNo additional charges
WEEKLY SERVICE PACKAGE
oVoice + Data + SMS
oR$ 7 per week
NEW M2M PLANS
oNew data packages launched for M2M services
Adding Value Through Innovation
NEW APP FOR LANGUAGE COURSES
oGames and quizzes help students developing English skills
blah COMMUNICATION APP
oIntegrated communication (VOIP, IM, SMS) App
oFirst ad campaign
Data Adoption
67%
77%
3Q13
3Q14
24
32
3Q13
3Q14
Smartphone Penetration Over Customer Base (%; Δ YoY)
Smartphones Share over New Sales (%; Δ YoY)
Data Users (mln users; % YoY)
+32%
+10 p.p.
25%
44%
3Q13
3Q14
+20 p.p.
Mix of Data Gross Revenues (R$ mln; %YoY)
1Q14
2Q14
3Q14
25%
27%
29%
% over total gross mobile service revenues
SMS
Web
1,500
+29%
+39%
+45%
+80%
Δ %YoY growth
1,578
Content & Others
1,677
+33%
+72%
+23%
+20%
+22%
New Data World
43% of data users over total base
TIM Protect
SECURITY SERVICES
oEnsures safety of customer’s devices and information

6. 24.6%
27.4%
3Q13
3Q14
1,252
1,332
3Q13
3Q14
EBITDA (R$ mln; %YoY)
BUSINESS FUNDAMENTALS
6
Core Business Evolution
Mobile Service Net Revenues (% YoY)
EBITDA Margin (% YoY)
(Local + LD + VAS + Others)
Business Received
3Q13
3Q14
Business Generated
(Incoming Voice + SMS)
+6.4%
+2.8 p.p.
+5%
-34%
Operating margin improvement
~0.7%
~0.8%
3Q13
3Q14
Efficient Cost Control
Interconnection Cost (Δ% YoY)
Leased Lines Cost (Δ% YoY)
Bad Debt/Sales (% over gross revenues)
stable
3Q13
3Q14
-36.2%
3Q13
3Q14
-1.8%
306
372
386
366
315
348
9M13
9M14
2Q
1Q
+10.6%
% YoY
3Q
1,007
1,086
+21.6%
-5.2%
+7.9%
2013
2014
Net Income Evolution (R$ mln; % YoY)
Total cost (Δ% YoY)
8.8%
2.3%
-2.9%
-7.2%
-8.1%
3Q13
4Q13
1Q14
2Q14
3Q14

7. 36.7
38.2
3Q13
3Q14
21
13
3Q13
3Q14
Accelerating Operational Performance…
LIVE TIM: EXECUTING ON OPPORTUNITY
7
43
120
3Q13
3Q14
Customer Base (000 users)
Source: Anatel
881
1,366
3Q13
3Q14
Netflix Broadband Ranking (average streaming speed representation)
3Q13
3Q14
ARPU (R$; YoY%)
… with Support of Quality Experience
Addressable Households (000 HH)
Source: Company
+2.8x
+55%
+32%
New Line Payback (months)
-38%
Gross Adds (000 users)
18
31
3Q13
3Q14
+74%
Live TIM Net Adds Share (% of SP and RJ market additions)
Average Speed of New Sales (mbps)
+4.1%
16%
31%
Aug/13
Aug/14
Source: Company

8. CONCLUSION
8
Q3 Conclusions: A good balance between objectives
Perspectives: Moving the plan forward
Strategic…
Financial…
Operational…
EBITDA
Net Income
+6.4% YoY
+5% YoY
+11% YoY
MBB in 81 cities
OPEX Control
Prepaid leadership
Infrastructure growth
Evolving revenue profile
Renewed Mission/ Purpose/Values
New 3-year plan
“To connect and take care of every customer, so everyone can do more”
oIndustry leadership
oLong term commitment
o4G license 700MHz
oTower sale supporting investment plan
Quality
Business Generated
TIM Protagonist
•VOICE
•SMS
•MTR
•DATA
•DIGITAL SERVICES
oData and digital services leadership
oInfrastructure
oCustomer base value
oCustomer experience
oOne TIM initiative
Data Users (mln users)
Data + VAS (ex-SMS)
Smartphones (over total base)
32 mln 32% YoY
44% +19 p.p. YoY
R$1.3 billion +49% YoY