1. Company’s Presentation
TIM Brasil
August, 2014

2. Visit our website and IR app:
www.tim.com.br/ir
AGENDA
 Macro & Industry Overview........5
 Recent Results: 1Q14………………12
 Network Evolution………………….20
 4G Update……………………….….…. 24
 Fixed Business…………………….…..27
 Business Outlook…………….….…. 30
 Historical Data & Others…….……34
TIM IR app
(English)
TIM RI app
(Portuguese)

3. KNOWING TIM 3
KNOWING TIM BETTER
Gross Revenues
(R$ Bln)
Customer base
EoP (Million)
1998 2013 1998 2Q14
15,000 km fiber
optical backbone
5,500 km fiber
optical backhauling
Organic
Growth
Growth
Via
Acquisition
Brazilian
Law
“Nível” 1 “Nível” 2
Legal
Requirements
Demand for
transparency and
disclosures
Highest level of
Corporate
Governance
Requirement of
protection for
minority
shareholders
 100% Tag Along
 Equal dividends rights
 One single class of shares
 Strict disclosure policy
 Statutory Audit Committee:
• Report to Board of Directors
• Oversight Financial reporting
• Analyze anonymous complaints
Unique Telco company listed on the Novo Mercado
CORPORATE GOVERNANCE
TIM: A Huge Brazilian Company
 Presence in Brazil since 1998.
 16th largest Private Company in Brazil (source: Exame
Magazine - 2013).
 Approximately R$30 billion of Market Capitalization.
 74.2 million customers (27% Share)
 The 2nd Player - Market and rev. share
 More than 383,000 points of sales
 More than 165 own stores
 15 Customer Care Centers (16k attendants)
 ~13,100 Antennas
 3,429 cities covered
 95% of urban pop. covered
 50,000 km of optical fiber network
 ~12,480 employees
 23,000 indirect jobs
 R$10.4 billion in taxes payments in 2013
 R$3.9 billion invested in 2013
Sales
Network
Social
&
Economic
74.2
29.6
GROWTH STRUCTURE

4. Macro & Industry Overview

5. MACRO & INDUSTRY OVERVIEW 5
MACRO SCENARIO OUTLOOK
• Market consensus shows a
softer growth.
• Telecom industry has shown
resilience, specially in the
mobile side, but it is not
completely immune.
• Mobile sector will continue
to benefit from fixed-mobile
substitution, now also
strong on data.
• Constrains of individuals
budget points to an
increase of mobile usage
(low cost).
GDP Forecast
(% YoY Growth)
Inflation Forecast
(IPCA: 12 months)
Interest Rate Forecast FX Rate Forecast
(R$/U$ - year average)(% Selic Target p.y. – year average)
Source: BaCen
5.9
6.4
6.2
6.0
2013a 2014e 2015e 2016e
8.2
11.0
11.8
10.0
2013a 2014e 2015e 2016e
2.20
2.40
2.50
2.18
2013a 2014e 2015e 2016e
2.30
1.30
1.70
2.60
2013a 2014e 2015e 2016e

6. TIM
Mobile Fixed Fixed BB Pay-TV Group
Customers 2Q14 (000´s) 74,203 665 121 n.d. 74,989
Market share 2Q14 26.9% 1.5% 0.5% n.d. ---
Net Adds 2Q14 (000´s) 286 - 19 n.d. 305
Net Adds 12M (000´s) 2,008 27 61 n.d. 2,096
Net Revs FY13 (R$ Mln) 19,264 657 19,921
Fixo / Móvel BL Fixa
Vivo
BL Fixa/TVFixo / Móvel
Mobile Fixed Fixed BB Pay-TV Group
Customers 2Q14 (000´s) 79,357 10,926 4,370 688 95,341
Market share 2Q14 28.8% 23.0% 18.8% 3.6% ---
Net Adds 2Q14 (000´s) 892 98 36 91 1,117
Net Adds 12M (000´s) 3,158 360 345 175 4,038
Net Revs FY13 (R$ Mln) 23,002 11,720 34,722
Fixo Móvel BL Fixa/TV
Mobile Fixed Fixed BB Pay-TV Group
Customers 2Q14 (000´s) 68,776 11,100* 7,045 10,106 97,027
Market share 2Q14 24.9% 23.7% 30.3% 53.3% ---
Net Adds 2Q14 (000´s) 27 - 220 230 477
Net Adds 12M (000´s) 2,303 1,248* 905 1,121 4,767
Net Revs FY13 (R$ Mln) 12,773 20,424 33,197
Fixo Móvel
Mobile Fixed Fixed BB Pay-TV Group
Customers 2Q14 (000´s) 51,081 17,263* 6,567 867 75,778
Market share 2Q14 18.5% 39.6% 28.3% 4.7% ---
Net Adds 2Q14 (000´s) 502 - 3 58 563
Net Adds 12M (000´s) 1,373 -1,206* 17 - 35 1 49
Net Revs FY13 (R$ Mln) 9,290 19,132 28,422
Claro Oi
BRAZILIAN TELCOS X-RAY
Source: Companies Releases and Anatel
MACRO & INDUSTRY OVERVIEW 6* First quarter results

7. MARKET STRUCTURE CHANGING TOWARDS
DATA USAGE
60%
36.8 mln
40%
24.5 mln
44%
16.2 mln
24%
8.8 mln
32%
11.8 mln
(40%)
(60%)
61.3 Mln
Possess
Internet
connection
Does NOT
Possess
Internet
connection
Other
Lack of
coverage
Too
Expensive
53% of active connection base
has currently a speed below
2Mbps
Total Households Households which does NOT
possess
Households with internet connection and breakdown for
households without internet connection:
MACRO & INDUSTRY OVERVIEW 7
3%
37%
51%
91%With Telephone
Only mobile phone
Mobile and fixed phone
Households profile
Fixed phone only
Purchase power
Salaries up to R$1.2k
Salaries up to R$3.1k
Consumption
People that access
Internet (10 years or +)
57 mln
32 mln
2 mln
81 mln
106 mln
23 mln
Households with internet connection
(%; CETIC jun’13)
53% of pop.
70% of pop.
Source: PNAD 2012, CETIC.br ‘ TIC Domicílios 2013, Company estimates
Yes
No
24.3 mln of households
83 mln 49% of pop.
Fixed
Mobile 21%
74%
40%
60%
Re-visiting Market Structure
Market Data Revenues Growth 2016 vs. 2012:
 > 13 bln Reais on Mobile (+100%)
 >7 bln Reais on Fixed (+35%)

8. Widespread use of Social Media
(Social Network Users in Brazil 2011-2017)
BRAZILIAN INTERNET USAGE BOOM
Internet Penetration in South America
(Internet users per 100 inhabitants)
Strong adoption of Instant Messaging
(WhatApp mln users)
High Penetration of E-commerce
(E-commerce revenues in Bln US$)
8.4
11.0
17.0
2010 2011 2012
Amazon lauched
operations in Brazil
in Dec/12
83 mln Internet users –
Brazil is the 5th largest
nation in the world of
internet users
66%
60% 59% 56%
46% 44% 41%
37%
32% 32% 30%
24%
Arg Col Chi Uru Bra Ecu Vem Per Guy Sur Bol Par
56.1
66.2
78.3
88.3
97.8
104.2
110.0
2011 2012 2013 2014 2015 2016 2017
#2 in Facebook
active users
(76mln) only
after US
#2 in Twitter
users (41mln)
only after US
2nd largest
market
outside US
40
38
32
31
25
17
13
11
3
India
Brazil
Mexico
Germany
Spain
UK
Argentina
Russia
France
28% of mobile
users in Brazil use
Instant Messaging
apps
Source: SocialBakers, e-Marketer, Semiocast, G1.com, Folha de São Paulo
MACRO & INDUSTRY OVERVIEW 8
465 mln
worldwide users
List of selected
countries as of
Feb/14

9. Mobile 23.0
12.8 9.3
19.3
4.8
Fixed+Data
+Pay Tv
11.7
20.4
19.1
0.7
4.9
Total 34.7 33.2 28.4 19.9 4.8 4.9
LEVERAGING ON PURE MOBILE COMPETITIVE
ADVANTAGE
Long Distance Leader
50% Market Share
2nd Overall
74.2 million customers
Prepaid Leader
29.2% Market Share
Source: Companies Releases, TIM estimates; CETIC jun’13; Akamai ; PNAD - IBGE
FMS
Focus
A pure mobile approach is the most suitable strategy to capture both opportunities
Oi
Claro
Vivo
TIM
29.5% 29.6%
28.7% 28.8%
25.5%
26.9% 27.2% 26.9%
25.6%
24.6% 25.0% 24.9%
19.1% 18.7% 18.7% 18.5%
2Q11 2Q12 2Q13 2Q14
Customer Base Evolution
(Market Share)
Entering in Data World Via Mobile
(mln users)
Voice FMS: TIM, with no legacies, can only gain on the trend
(R$ billion, Net Revenue per Group 2013)
2Q14 x 2Q11
-0.7 p.p
+1.4 p.p
-0.6p.p
-0.6 p.p
Source: ANATEL
Mobile
Fixed 4.1
14.6
33.1
52.5
94.8
11.4
13.8
16.3
19.1 20.9
2009 2010 2011 2012 2013
+83%
+23x
28%
26%
23%
16%
4% 4%
Vivo Claro Oi
TIM GVT Nextel
Revenue Share
MACRO & INDUSTRY OVERVIEW 9

10. Recent Results: 2Q14

11. 26k
100k
Postpaid segment grew by
7% and postpaid mix over
customer base reached
16.5%, while SAC/ARPU
remained below 2 months
19%
22%
27%
2Q12 2Q13 2Q14
2nd QUARTER HIGHLIGHTS
11
Operational
2Q13 2Q14
+7%
YoY
Data as % of revenues
Net Revenues: Usage (local + long distance) + VAS
Total OPEX
(Δ% YoY)11%
9%
2%
-3%
-7%
EBITDA Margin
27%
25%
28%
2Q12 2Q13 2Q14
% of total customer base
15.8%
16.5%
2Q13 2Q14
Mix of postpaid over total base
World Cup Figures (in the Stadiums)
Live TIM customer base
Financial
Gross Data Revenue
growth at solid pace:
R$1.6 bln in 2Q14
Net Revenues “Business
Generated” (ex – incoming) grew
by 7% YoY
Strong cost control:
total opex dropped
7% YoY
EBITDA grew 8% YoY
with margin gain
28%
32%
39%
Data users reached
29 mln lines
Live TIM crossed 100
thousand customers
milestone
+3 p.p. +5 p.p.
2Q13 3Q13 4Q13 1Q14 2Q14
Jul/14Jun/13
2Q12 2Q13 2Q14
• Photos sent: 50 mln
• Outgoing calls: 5 mln
• Data traffic: 26.7 TBMaracanã Stadium

12. CORE BUSINESS ANALYSIS & PERFORMANCE
MTR cut full impact in 2Q
Handset sales at a healthy level although
reduced growth
World Cup impact on commercial activities
Mobile Service Net Revenues Analysis
(% YoY)
EBITDA Performance
(mln; %YoY)
June
2013
June
2014
No Holidays 1 National holiday
3 Brazil’s games (1/2 day holiday)
Up to 2 municipal holidays in
main cities hosting games
Net revenues
from MTR-18%
-28%
2.4
3.1
2.7
2Q12 2Q13 2Q14
Total units sold
(mln)
(Local + LD
+ VAS)
Business
Received
2Q13 2Q14
1,232
2Q13 2Q14
Reported
EBITDA
Margin
1
2
3
+7%
24.9%
27.9%
EBITDA
12
1Q14 2Q14
-30%
Business
Generated
+3%
-1%
*MTR Impact
+16%
+8%
1,331
Total
6 months (YoY)
+8%
-26%
+4%
0%
(Incoming
MTR + SMS)
Ex-MTR
Ex-MTR
*MTR Impact
Ex-MTR
~170 mln*
~96 mln*
1,427

13. 118.5
23.2
2009 2010 2011 2012 2013 Jun/14
2Q13 2Q142Q13 2Q14
READY FOR DATA OPPORTUNITY
13
# Access Growth (users in mln)
Brazilian Broadband: Low Average Speed (Mbps)
WSJ: “Brazil - The Social Media Capital of the Universe”
Fixed
Data Experience is Mobile Capturing Data Opportunity
Mobile
2.7 2.6
4Q13 1Q14
#2 in
Facebook
#2 in
Twitter
2nd largest
market
#2 in
WhatsApp
10.5
13.7 3.6
2.5
Sources: SocialBakers, e-Marketer, Semiocast, G1.com, Newspaper ‘Folha de São Paulo’
Sources: Anatel, Akamai - State of Internet
Source: IDC Tracker
Source: Anatel
# Total Market Equipment Sold (units in mln)
Smartphone
& Tablet
Notebook
& PC
1Q14 2Q14
SMS
Web
Content
& Other
1,500
Data Gross Revenues Mix
(R$ mln; %YoY)
+22%
+1% -8%
+29% +33%
+45% +72%
BOU: Bytes of Use
(Megabytes)
Days of Use
Data Users
(# mln users)
23
29
2Q13 2Q14
+24%
2Q13 2Q14 2Q13 2Q14
+40% +30%
In May, >45% connections
in Brazil were < 2Mbps
+ 5X
∆ %YoY ∆ %YoY
+20% 1,578

14. 75.7 76.2
79.4
68.9
72.2
74.2
63.0
66.5
68.8
47.8
49.7 51.1
47%
39%
20%
30%
21%
20%
12%
10%
2Q13 2Q14
23%
24%
24%
26%
40%
35%
11%
14%
2Q13 2Q14
2Q13 2Q14
CUSTOMER BASE EVOLUTION
14
 # 1 player in prepaid
 Strong growth in ‘Controle’ postpaid base
 Austere disconnection policy
2Q12 2Q13
TIM
Source: ANATEL
2Q14
Vivo
Claro
Oi
4G Market Share
(%; thd users)
3G Market Share
(%; mln users)
28.9
30.2
41.5
16.2
Source: ANATEL
TIM TIM
1,281
990
655
334
Customer Base
(mln)
Source: ANATEL
+8.4%
Source: Company
Prepaid Recharge
(R$; % YoY)
118 mln 3.3 mln

15. vv
GO TO MARKET PROGRESS
15
Equipping Customer Base
% of smartphone sales
among players in 2Q14
% of smart + webphone on TIM’s
base in 2Q14
% of smartphone over new sales in 2Q14
Postpaid
o Reduce churn on postpaid
o Attract dual SIM card users traffic
o Renewed focus on corporate customers
o Leveraging on “pure mobile” distinctiveness
o Expanding daily tariff scheme to new regions
o Simplicity / Transparency
R$ 7 weekly service package
R$ 0.75 daily offer
Prepaid
35%
50%
62%
2Q12 2Q13 2Q14
39%
57%
71%
2Q12 2Q13 2Q14
41%
23%
28%
9%
P3
P2
P1
TIM
Managing customer base… To Infinity and beyond…
Penetration of smart + webphones drives data usage growth
Source: GFK Group Source: Company Source: Company

16. 4,065
2Q13 2Q14
3,985
170
96
2Q13 2Q14
+2.2%
FINANCIAL RESULTS ANALYSIS (1/2)Service Net Revenues
(R$ mln; % YoY)
EBITDA
(R$ mln; % YoY)
Reported
Revenue
2Q13
Reported
Revenue
2Q14
3,985 1,232
Reported
EBITDA
2Q13
Reported
EBITDA
2Q14
+186 -87
Δ Opex/
Others
Traffic/Data
Δ Contribution Margin
24.9%
31.1%
1,331
27.9%
34.4%
EBITDA Margin
Service EBITDA Margin
+5.8% +4.4%
Efficient
Cost Control
Interconnection
(Δ% YoY)
Leased Lines Cost
(Δ% YoY)
% Bad Debt/Sales
(% over gross revenues)
Net Services Revenues
Exposure
EBITDA Exposure
MTR
Impact
-2.0%
~ 25%
~ 12%
2Q10 2Q11 2Q12 2Q13 2Q14
~ 35%
~18%
2Q10 2Q11 2Q12 2Q13 2Q14
MTR
Impact
+15.8%
+8.0%
-31.3%
-10%
~1% ~1%
2Q13 2Q14
MTR Exposure
1,427
‘Pro forma’ EBITDA
in 2Q14
4,155
‘Pro forma’
Revenue in 2Q14
stable
+208 -253 -36
ΔYoY +6.9% -29.6% -20.5%
Δ OthersΔ Business
Incoming
Δ Business
Generated
ΔYoY
16

17. -1,227
2,648
-609
-1,654*
-1,786
182
+41%
FINANCIAL RESULTS ANALYSIS (2/2)
Net Income - 6 months
(R$ mln; % YoY)
Net Debt
(R$ mln; % YoY)
17
EBITDA
692
738
6M13 6M14
+6.7%
>94% towards infrastructure
6M13 6M14
R$1,657 mlnR$1,593 mln
2G
3G
4G 2G
3G
4G
1,984
4,521
2,537
Debt Cash Net debt
Jun/13
Jun/14
1,031
6,356 5,325
1.749 1.749
4,607 3,576
Debt Cash Net debt
+110% -48%
Investments
Cash Flow - 6 months
(R$ mln; R$ YoY)
YoY
Net debt/EBITDA 12M: 0.19x
New BNDES
Loan
CAPEX Δ WC OFCF
6M14
*Considering R$3 mln of LT Amazonas leasing adjustment
OFCF
6M13
LT Amazonas
Leasing
+618
mln

18. Network Evolution

19. STRATEGY: INFRASTRUCTURE EVOLUTION
2016
MASSIVE LD
BACKBONE
65,000 KM OF FIBER
2013
FIBER TO THE
AMAZON
46,000 KM OF FIBER
BY YE13
Fiber to the site / Mobile Broadband
Project Key to Data Growth
 Targeting 38 cities in 2013,+100 cities till 2016.
 From 2-8 to +100 Mbps.
 LTE Ready.
 Macro coverage fine tuning.
 Focus on IP infrastructure, caching, peering.
INTELIG 15,000KM
2009
INTELIG
ACQUISITION
 New backbone routes- Increasing resilience.
82% urban
population
2013 2014 2015 2016
95% urban
population
#NodeB / eNodeB
(3G + 4G)
# BTS
(2G)
2012 2013 2014e 2015e 2016e
New Sites
Including
Small Cell.
POP MW
POP MW POP MW
POP MW
BSC-RNC Site
POP MW
2013 2014 2015 2016
LTE* 3G 2G
Fiber base
Infrastructure
Backhauling
Evolution Increased Coverage and Access Capacity
(# new elements)
Capex Evolution Towards Data
(% of total Capex)
Small Cell Approach
(# new elements)
NETWORK EVOLUTION 19

20. 2Q13 2Q14
o Brasília
o Curitiba
o Rio de Janeiro
4Q13 2Q14
4Q13 1Q14 2Q14
INFRASTRUCTURE FOCUSED IN DATA
20
COVERAGE
 Homogeneous
 Access Upgrade
 In all relevant areas
 Site densification
 Small cell / Wi-Fi
CAPACITY
 Higher speed
 4G roll out
 Mobile broadband
project acceleration
 Backhauling
infrastructure
AVAILABILITY
 Always available
 Fine tunning
 Fiber rings /
redundance
 Resilience
DATA
CENTRIC
APPROACH
TIM’s Infrastructure Strategy Network in Numbers
Number of 3G & 4G Sites
Number of Wi-Fi &
Small Cell
~11.3
~11.0
~13.1
Number of sites with
fiber (FTTS)
Cities in mobile BB
project
+3.5x 53
66
1Q14 2Q14
+13
cities
BioSite: New approach to coverage
 Patent pending
+47%
1
2
3
After
Before
o New frequency at 900 MHz in SP
o Better indoor coverage
o Addressing capacity requirement
Completed actions
 Initiating in:

21. Capex Evolution
(R$ mln)
Capex per Technology
(R$ mln)
Fiber to the site expansion to ~100 cities Benchmark: Anatel Plan for 2012-2014
(R$ bln)
3G
2G
3G
2G
3G
4G
2011
~R$3,800R$2,983
2014e
5.9
4.8 4.6
2.1
5.0
3.5
2.6
3.4
TIM Claro Vivo Oi
10.9
+31% +52% +98%
Copper
(2-8Mbps)
Before FTTS After FTTS
Metro Ring
Own Fiber
(300 Mbps)
From Copper
To Fiber based
 Wi-Fi small cell approach
Total
Capex
2,836
2,983
3,386
3,871
2011
2012
2013 19%
17%
20%
% over sales
2010
18%
CAGR
11%
Source: 5th monitoring cycle of mobile telecom improvements plan released by Anatel on Feb/14
8.3
7.2
5.5
Actual from 2012 to Oct/13 Forecasted to Nov/13 until 2014 end
CAPEX ANALYSIS
NETWORK EVOLUTION 21

22. Regulatory Update

23. 0.36
0.32
0.24
0.16
0.10
0.06
0.03 0.02
2012 2013 2014 2015 2016 2017 2018 2019
 Auction expected for September
 License period: 15 + 15 years
 No additional obligation. Network and Spectrum sharing
opportunities
 Switch off plan starting at the beginning of 2016
 Minimum prices and clean-up costs not yet defined
4G Auction RFP
 Leased line (EILD) reference price reduction, in 2016, from
~20% until ~80%
 Establish regulated reference prices to leased lines speed up to
34 Mbps
 On preliminary ‘static’ simulation show relevant OPEX reduction
MTR
New Glide Path (R$)
Leased Lines - EILD
New parameters established
New MTR and EILD Analysis
Source: Anatel
Source: ANATEL, Commissioners Meeting on July 17th
Main measures until July, 2014
 Cancelation within 48 hours, without human assistance
 In case of dropped call, companies must call customer back
 Minimum of 30 days for prepaid credits to expire
ANATEL's new costumer care policy - RGC
Source: ANATEL Resolution 632/2014, GEX Meeting on July 17th
REGULATORY UPDATE
TIM has been working to improve transparency and caring
23

24. Expected date
for the Auction
 Format indicates soft competition: the spectrum will
be auctioned in four blocks of 10 MHz + 10 MHz;
 No additional obligations (“naked auction”), synergies
with 2.5GHz auction obligations will be subject to
backhaul requirements;
 Authorization for spectrum sharing in cities with pop.
<100k.
733MHz
4
1st Round: Cap of 10 + 10 MHz
2nd Round: Cap of 20 + 20 MHz (in case of no bidders)
5
6
2 3 1
708MHz
718MHz
728MHz
738MHz
748MHz
4
5
6
2 3 1
763MHz
773MHz
783MHz
793MHz
803MHz
9
713MHz
718MHz
723MHz
728MHz
738MHz
708MHz
743MHz
748MHz
788MHz
768MHz
773MHz
778MHz
783MHz
793MHz
763MHz
798MHz
803MHz
10 11 12 7 8
13 14
17 18
15 16
10 11 12 7 8
13 14
9
Auction details
Costs & Payment method
 License payment in up to six installments (36, 48, 60,
72, 84 and 96 months) preceded by a 10% down
payment;
 Readjustment: IGPDI +1% per month;
 Reimbursement values will be defined in the BID
terms and will be administrated by an independent
third party;
 Channel repositioning, filters, TV converter, and other
mitigation techniques will be subject to
reimbursement.
Regional Blocks:
Conclusion of the
Digitalization Plan
Auction Public Consultation
Band allocation
Res. Anatel 625/13
Nov/13 Jan Feb 2015 2018
Analog TV
switch off period
Mar Apr May Jun Jul Aug Sep
Conclusion of the
Digitalization Plan
Interference tests
Public consultation
bid and interference
Bid notice
Interference Resolution
Digitalization Plan
700MHZ AUCTION
o Block 5 or 15 and 16
CTBC Region
106 cities or 1 mln users
o Block 6 or 17 and 18
SERCOMTEL Region
2 cities or 67k users
o Block 4 or 13 and 14
Represents 98% of the population, equals to national
4G UPDATE 24

25. Vivo
Claro
Oi
TIM
Source: ANATEL
4G Market Share on 2500Mhz
(%; thd users)
2500 MHZ
auction results
Spectrum
Characteristics
5800 Mhz
2100 Mhz
850 Mhz
700 Mhz
< 700 Mhz
BTS Range (km)
0 2 4 6 8 10
Numbers of BTS
20 15 10 7 5 2
Band W
Band X
Band V1
Band V2
2500 MHZ rural coverage
obligations
X band
W band
V2 band
V1 band
Roadmap
Presidential Decree Nº
5820/06
Rules to the Digital TV
migration
2006 2012
ANATEL’s Resolution
Creation of a study group to
define the future and the
atribution of the band
2013
Ordinance Nº 14/13
Premises to 700 Mhz
destination on the SMP
2015 2018
Shutting down
Period
Feb/Apr 2013 - Subrange Atribution CP
Nov/13 Res. Nº 625/2013 – Atribution of the
Subrange
Paid ~R$0.3 bln
Paid ~R$1 bln
Paid ~R$0.8 bln
Paid ~R$0.3 bln
4G UPDATE 25
4G DETAILS
TIM
1,281
990
655
334
3.3 mln
47%
39%
20%
30%
21% 20%
12%
10%
2Q13 3Q13 4Q13 1Q14 2Q14

26. Fixed Business

27. 2Q13 3Q13 4Q13 1Q14 2Q14
TIM SOLUÇÕES CORPORATIVAS: PLAN MOVING FORWARD IN Q2
27
Turnaround Plan on Fixed Business
20132012
-
2014
New sales revenues
(R$; YoY)
Financial performance
 Governance / Efficiency
 Business development
 Quality and Process
Activation time
(days)
Operational Improvements Paying Off
+
Segment EBITDA-CAPEX
Source: Company
Net Revenues (with intercompany)
2013 2014
Business Priorities
4Q13 1Q14 2Q14Plan
Phases
Highlights
Financial
sanitization
Infrastructure
reinforcement
Market
repositioning
o Positive EBITDA
o Cost efficiency
o Customer base
management
o New business unit
organization
o IT renewal plan
o Multiservice network
launch
o New branding
o New offers and
product launch
o Restructured sales
force
2H14
Showing
results
o Sales growth
o Revenue
rebound
Business
remodeling driving
stable fixed
revenues QoQ
+19x
2Q13 2Q14
-80%

28. +34%
11.5
18.3
24.5
2Q13 0 1Q14 2Q14
28
Gaining more traction
Addressable HH
(000 HH)
Gross Adds
(000 users)
Customer Base
(000 users)
 May/2014
o Live TIM Extreme 1Gbps for
R$1,999.90
o Live TIM Blue Box release:
optional TV approach
 Jul/2014
New speed: 70Mbps for
R$119.90
Source: Netflix July 2014
Netflix Broadband Ranking
(Average streaming speed representation)
31%
Positive Neutral Negative
Internet buzz
FIXED BROADBAND: LIVE TIM
New Offers
126 neighborhoods:
 43 neighborhoods in SP
 83 neighborhoods in RJ
Quality Experience
609
804
1,069
1,138
1,220
2Q13 3Q13 4Q13 1Q14 2Q14
8%
31%
21%
51%
72%
18%
2nd
3rd
4th
5th
6th
1st
Source: Gauge 1Q14
Source: Company
+113%
28
26k
100k
Jul/14Jun/13
Market
average

29. Business Outlook

30. Accelerated Network Evolution for Data
KEEPING THE STRATEGIC FOCUS ON THE 2nd HALF
Consolidating Recent Offers & Innovative Services
Strong Institutional Position
“Porta Azul”
(Blue Door)
Evolving the Structure for the New Challenges
• Streamlining organization
• Adding new talent
• Stronger segment focus
o Consumer
o Corporate
o Residential
• 4G auction participation
• Leadership position
• Presence in dialogue with relevant institutions
4G 700MHz
Small Cells
BioSite Mobile
Fixed
VAS
TIM Protect
CONTENT
30
New Positioning
DATA CENTRIC
APPROACH
Coverage
1
2
3
Capacity
Availability

31. 21.3
27.5
2012 2013 2016e 2012 2013 2016e
+xx%
OFFER EVOLUTION
136
148
>170
2012 2013 2016e
18%
21%
>40%
VAS
Gross
Revs.
VAS/Revs.30% 37% >50%
43%
55%
>75%
2012 2013 2016
+xx%
+29%
+22%
Smart/Web phone Penetration
(% over total base of lines)
Voice MOU
(minutes)
Data Users
(% of Data Users in CB; million users)
VAS Revenue Growth
(% of Mobile Services Gross Revenues; R$ mln)
BUSINESS OUTLOOK 31

32. TIM PART: 2014-2016 GUIDANCE
Total Net Revenues
EBITDA
CAPEX
18,764
19,921
2012 2013 2014e 2015e 2016e
5,012
5,207
2012 2013 2014e 2015e 2016e
R$ million
R$ million
626
3,139
3,871
3,487
384
2012 2013 2014e 2015e 2016e
R$ million
Infrastructure
Others/Licenses
3,765
Guidance
2013-2016 CAGR:
Mid Single Digit Growth
2013-2016 CAGR:
Mid Single Digit Growth
Total CAPEX 2014-2016:
~R$11 billion*
*Does not consider 4G licenses (700Mhz).
BUSINESS OUTLOOK 32

33. Historical Data & Others

34. RECENT TOWERS DEALS
HISTORICAL DATA & OTHERS 34

35. QUARTERLY HISTORICAL DATA (R$ THOUSAND)
HISTORICAL DATA & OTHERS 35
R$ Thousand
Description 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
2Q14 vs.
2Q13 (% YoY)
Gross Revenues 7,024,216 7,413,009 7,539,627 7,684,901 7,043,065 7,162,503 -3.4%
Gross Revenues Telecommunications Services 6,125,517 6,136,654 6,312,149 6,490,893 6,180,443 6,014,599 -2.0%
Telecommunications Services - Mobile 5,831,734 5,852,094 6,054,713 6,254,887 5,958,845 5,793,628 -1.0%
Usage and Monthly fee 2,694,316 2,777,176 2,884,968 2,953,344 2,801,736 2,751,247 -0.9%
Value added services - VAS 1,245,483 1,291,470 1,362,498 1,454,202 1,499,538 1,577,565 22.2%
Long distance 830,331 830,045 832,558 840,030 814,990 771,408 -7.1%
Interconnection 1,005,954 893,936 919,536 941,325 775,304 627,616 -29.8%
Others 55,649 59,466 55,153 65,985 67,277 65,792 10.6%
Telecommunications Services - Fixed 293,783 284,560 257,437 236,007 221,599 220,971 -22.3%
Gross Revenues Handset sales 898,699 1,276,354 1,227,478 1,194,008 862,622 1,147,904 -10.1%
Net Revenues 4,710,715 4,944,141 5,083,159 5,183,276 4,702,224 4,774,732 -3.4%
Adjusted Net Revenues 4,710,715 4,988,050 5,083,159 5,183,276 4,702,224 4,774,732 -4.3%
Net Revenues on Services 4,086,662 4,065,311 4,206,773 4,342,314 4,099,640 3,984,519 -2.0%
Adjusted Net Revenues on Services 4,086,662 4,109,220 4,206,773 4,342,314 4,099,640 3,984,519 -3.0%
Net Revenues on Products 624,053 878,830 876,386 840,963 602,584 790,214 -10.1%
Operating Expenses (3,486,942) (3,711,943) (3,831,158) (3,684,504) (3,384,936) (3,443,836) -7.2%
Personnel expenses (200,579) (200,623) (211,985) (218,688) (227,767) (229,822) 14.6%
Selling & marketing expenses (946,656) (973,227) (1,035,454) (982,561) (980,196) (1,025,703) 5.4%
Network & interconnection (1,352,476) (1,321,534) (1,344,279) (1,294,011) (1,194,478) (1,010,578) -23.5%
General & administrative (159,075) (152,075) (155,809) (157,766) (149,852) (178,396) 17.3%
Cost Of Goods Sold (655,634) (912,158) (906,944) (876,105) (645,844) (828,012) -9.2%
Bad Debt (72,631) (67,720) (55,534) (44,167) (76,103) (77,152) 13.9%
Other operational revenues (expenses) (99,891) (84,605) (121,152) (111,205) (110,695) (94,173) 11.3%
EBITDA 1,223,773 1,232,198 1,252,001 1,498,773 1,317,288 1,330,896 8.0%
EBITDA Margin 26.0% 24.9% 24.6% 28.9% 28.0% 27.9% 295 bps
Adjusted EBITDA 1,223,773 1,262,852 1,252,001 1,498,773 1,317,288 1,330,896 5.4%
Adjusted EBITDA Margin 26.0% 25.3% 24.6% 28.9% 28.0% 27.9% 256 bps
Depreciation & amortization (679,439) (671,297) (694,075) (723,061) (730,313) (757,072) 12.8%
Depreciation (364,335) (373,258) (376,195) (388,709) (401,829) (407,479) 9.2%
Amortization (315,103) (298,039) (317,880) (334,352) (328,484) (349,594) 17.3%
EBIT 544,335 560,901 557,926 775,712 586,975 573,824 2.3%
EBIT Margin 11.6% 11.3% 11.0% 15.0% 12.5% 12.0% 67 bps
Net Financial Results (71,085) (40,881) (90,237) (100,517) (35,834) (72,706) 77.9%
Financial expenses (167,024) (152,110) (209,124) (221,442) (177,911) (256,616) 68.7%
Net exchange variance (731) 2,034 (4,279) (1,435) (1,403) (560) -127.5%
Financial income 96,670 109,195 123,165 122,360 143,479 184,469 68.9%
Income before taxes 473,250 520,020 467,689 675,195 551,141 501,117 -3.6%
Income tax and social contribution (167,183) (134,462) (152,674) (176,221) (179,008) (135,504) 0.8%
Net Income 306,067 385,558 315,015 498,974 372,132 365,614 -5.2%
Adjusted Net Income 306,067 405,790 315,015 498,974 372,132 365,614 -9.9%

36. ANNUAL HISTORICAL DATA (R$ THOUSAND)
HISTORICAL DATA & OTHERS 36
R$ Thousand
Description 2012 2013 2014 (YTD)
Gross Revenues 27,755,813 29,661,753 14,205,568
Gross Revenues Telecommunications Services 24,350,086 25,065,214 12,195,042
Telecommunications Services - Mobile 22,879,828 23,993,427 11,752,472
Usage and Monthly fee 11,086,671 11,309,804 5,552,984
Value added services - VAS 4,404,832 5,353,653 3,077,103
Long distance 3,217,921 3,332,965 1,586,398
Interconnection 3,969,138 3,760,751 1,402,920
Others 201,264 236,254 133,069
Telecommunications Services - Fixed 1,470,259 1,071,787 442,570
Gross Revenues Handset sales 3,405,726 4,596,539 2,010,526
Net Revenues 18,763,947 19,921,291 9,476,957
Adjusted Net Revenues 18,763,947 19,965,200 9,476,957
Net Revenues on Services 16,419,958 16,701,059 8,084,159
Adjusted Net Revenues on Services 16,419,958 16,744,969 8,084,159
Net Revenues on Products 2,343,989 3,220,232 1,392,798
Operating Expenses (13,751,989) (14,714,546) (6,828,772)
Personnel expenses (729,032) (831,876) (457,589)
Selling & marketing expenses (3,841,852) (3,937,899) (2,005,899)
Network & interconnection (5,353,476) (5,312,301) (2,205,056)
General & administrative (551,393) (624,725) (328,248)
Cost Of Goods Sold (2,604,978) (3,350,841) (1,473,856)
Bad Debt (250,972) (240,051) (153,256)
Other operational revenues (expenses) (420,286) (416,853) (204,868)
EBITDA 5,011,958 5,206,744 2,648,184
EBITDA Margin 26.7% 26.1% 27.9%
Adjusted EBITDA 5,054,088 5,237,399 2,648,184
Adjusted EBITDA Margin 26.9% 26.2% 27.9%
Depreciation & amortization (2,688,588) (2,767,871) (1,487,386)
Depreciation (1,458,563) (1,502,498) (809,308)
Amortization (1,230,025) (1,265,374) (678,078)
EBIT 2,323,370 2,438,873 1,160,799
EBIT Margin 12.4% 12.2% 12.2%
Net Financial Results (169,890) (302,720) (108,541)
Financial expenses (644,754) (749,700) (434,527)
Net exchange variance (4,151) (4,410) (1,962)
Financial income 479,015 451,391 327,949
Income before taxes 2,153,480 2,136,153 1,052,258
Income tax and social contribution (704,592) (630,539) (314,512)
Net Income 1,448,888 1,505,614 737,746
Adjusted Net Income 1,500,143 1,525,845 737,746

37. HISTORICAL DATA: OPERATIONAL & FINANCIAL RATIOS
ROA: NOPLAT/Avg. Total Assets.
Calculation considers organic Net Income and EBITDA
HISTORICAL DATA & OTHERS 37
ea
Description 2012 2013 2014
Brazilian Wireless Subscriber Base (000`s) 261,808 271,100 275,707
Estimated Total Penetration 132.8% 136.45% 136.1%
Municipalities Served (GSM) 3,383 3,404 3,427
Market Share 26.88% 27.09% 26.91%
Total Lines (000's) 70,376 73,431 74,203
Pre-paid Lines (000's) 59,658 61,146 61,963
Post-paid Lines (000's) 10,718 12,285 12,239
Gross Additions (000's) 38,408 39,627 18,612
Net Additions (000's) 6,293 3,055 772
Churn 47.5% 50.9% 24.2%
Total ARPU 19.1 18.6 17.6
Total MOU 136 148 139
SAC 29 28 29
Handsets Sold (000's) 10,227 12,511 5,400
CAPEX (R$ Mn) 3,765 3,871 1,472
Employees 11,650 12,167 12,225

38. Stock Performance (base 100)*
TIM Celular S.A. Intelig
100%
TIM Brasil Serv. e Part. S.A. Free Float
Telecom Italia International N.V.
Telecom Italia
100%
TIM Participações S.A.
ON: 33% (805,662,701)ON: 67% (1,611,969,946)
100%100%
STRUCTURE AND STOCK PERFORMANCE
HISTORICAL DATA & OTHERS 38
-10%
00%
10%
20%
30%
40%
50%
60%
TIMP3 Ibovespa TSU

39. Cofins PIS/ PASEP ICMS Fistel Fust/
FUNTEL
TotalTotalFust/
FUNTEL
PIS/
PASEP
ICMSCofins Fistel
2007 2012
2007 2012
% Gross Revenues
TELCOS’ TAX BURDEN & HIGH INVESTMENTS
3% ~1%
28%
~5%
1,5% ~39%
16.3
27.2
6.5
10.1
20% of
Revenues
+70%
Taxation represents almost 40% of companies gross
revenues.
Tax Burden Composition Mobile Industry Tax Payments
(R$ Bln)
Mobile Industry Investments
(R$ Bln)
+60%
HISTORICAL DATA & OTHERS 39

40. 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
Rodrigo Godoy
E-mail: rcgodoy@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
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.
SAFE HARBOR AND IR CONTACTS
SAFE HARBOR & IR CONTACT 40