TIM Day - Pietro Labriola

1. 1
TIM Day in NYC – TIM Brasil
Investor Relations
Draft - Highly Confidential
TIM Brasil
TIM Day in NYC
Operations Panel - Pietro Labriola (COO)
November, 2016

2. 2
TIM Day in NYC – TIM Brasil
Investor Relations
POSTPAID
CONSUMER
CONTROLE
PREPAID
Stable
Growth
Contraction
R$ 25 - 50
R$ 9 - 15
High priced customer base under
pressure by smart competition
Fast growing segment gaining
customers from Pre and Post CB
SIM Consolidation driven by the
substitution of 2nd SIM to
social network and data
(>22%)
(>17%)
(>43%)
Market Sizing and main trends: a market transition
Sizing Trend
Market Size
(% of Revenues)
ARPU
POSTPAID
CORPORATE
(>15%)
R$ 60 - 90
Market trends
Source: TIM internal estimates

3. 3
TIM Day in NYC – TIM Brasil
Investor Relations
Facing the Transition Market: New Paradigms for TIM
Big Data Capabilities
Segmented
Go-to-Mkt
Improved
Customer
Experience
Digital and
Multimedia
Differentiation
• Customer experience improvement through main processes
assessment and redesign
High churn
Market
• Keep pushing on gross adds, adapting the go-to-market
• Investing and developing CRM capabilities to face the
new market scenario
Mature
Market
CONTROLE
PREPAID
• Improve image and perception mainly for mid/high segments
• Be a clever/disruptor pure mobile operator being reliable on
core services and developing innovative services (eg. Content)
Smart
Competition
• Accelerate bundle offer penetration and contain
zero-rating policies on social message services
Data
Monetization
POSTPAID
CONSUMER
POSTPAID
CORPORATE
(>22%)
(>17%)
(>43%)
(>15%)

4. 4
TIM Day in NYC – TIM Brasil
Investor Relations
“Turbo” Package
Call MonthlyWeeklyDay
“Solutions for different customer profiles”
Prepaid Consumer – Combining short term tactics with long term evolution
Drivers and approaches
Recurring
based
Consumption based
Voice
Data
From daily to weekly
Incoming
Voice and
Data
B
A
B
A
• Voice and Data:
̵ Keep attractiveness for Gross
̵ Strengthening CRM
• Voice:
̵ Keep attractiveness for Gross
̵ Upsell data
̵ Customer experience
• Data:
̵ Data usage enhancement
̵ Upselling to “voice + data”
• Loyalty Increase:
̵ Recurring offer
̵ Specific go-to-market
• ARPU Increase:
̵ Bundle offer
̵ Payment models
Offering
 Recharge “price-up”
Top-up approach
Aug-16Jan-15
Aug-16Jan-15
Average spending by prepaid customer
 Top-up incentive campaign
Top-up Lottery :
Million Reais prize
Approach by Usage Profile
Approach by Spending Profile
From R$7 to R$9
Turbo 7 Top-up
Mix (%)

5. 5
TIM Day in NYC – TIM Brasil
Investor Relations
Postpaid Consumer – Building Competitive Advantages
Yesterday
‘Weak’ image at the
segment
Today
‘Weak’ image at the segment
Tomorrow
Build image with product offer
PostPaidControle
‘Weak’ image at the
segment
‘Improving’ image at the
segment
Sustain fair value x money proposition
Voice ‘centric’,
low/no data
Voice ‘centric’,
optional data
• Bundle proposition
(Voice+Data)
• Improve customer experience
through stimulus for 4G
• Up-sell and migration
strategy
• Bundle proposition
(Voice+Data)
• ARPU increase with CB
migration
• Bundle full proposition & experience
(Voice+Data+MME)
• Manage migration strategy to
increase ARPU
• Differentiated caring and Regional
approach
• Bundle proposition (Voice+Data+VAS)
• Manage migration strategy to
increase ARPU
• New channels to be even more
efficient

6. 6
TIM Day in NYC – TIM Brasil
Investor Relations
Postpaid Corporate – Begin of a turnaround story
B2B revenue trend
Nov Mar JunFevJanJul JulAgo Abr AgoOutSet Dez Mai Set
2015 2016
Revenue share evolution
20162013
TOP
(Revenue greater
than R$ 340M)
MEDIUM/LARGE
(More than
30 human lines)
SMALL
(More than
5 human lines)
• New go-to-market
approach (salesforce
footprint , MNP, …)
• CB management
improvement
• Increase share of
wallet on existing CB
Structural
Turnaround
Push
Organic growth
and Operational
fine-tuning
Main drivers Approach
2.0
0.01
0.1
Market Size:
(MM Companies)
• Hybrid farmer and
hunter approach
Stop Loss
2016
Working on
recovering revenue
share loss
(R$ mln)
B2B segmented strategy
Source: TIM internal estimates

7. Thank you!