1. 0

2. Additional Note
The following financial and operational information, except where otherwise indicated, is presented
g p , p , p
according to the IFRS (International Financial Reporting Standards) and in Reais (R$), pursuant to
Brazilian C
B ili Corporate Law.
t L
The comparison analysis refers to TIM stand-alone basis, excluding the effects of TIM Fibers’
acquisitions in Nov/11 - except when otherwise indicate
1

3. Agenda
Main Achievements - Luca Luciani
Operational Performance - Lorenzo Lindner
Marketing Activities - Roger Solé
é
Financials Highlights - Cl di Zezza
Fi i l Highlight Claudio Z
Conclusion & Outlook Luca Luciani
Outlook–
2

4. Main Achievements
# 2 Player in Value and Volume (26.5% of market share on # lines, +130 Bps YoY)
Accelerating Customer Base +25 6% YoY ending 2011 at 64.1 million lines
+25.6% YoY, 64 1
Growth Leader in Incremental Market Share (33%) for the 2nd consecutive year
Fastest growing mobile operator: Top line: +18% YoY and Service Revenues: +13%YoY
EBITDA: R$4.6Bln FY2011 (+10.4% YoY)
Improving Cash EBITDA Margin: 27.1%
and Profitability
y EBIT: R$2.1 Bln FY2011 (+72.1% YoY)
( )
EBITDA-CAPEX: R$1.6Bln FY2011
Voice revenues continue to grow at double digit, both in local and long distance calls
“Voice is Good” & MOU at 129 min. in 2011 (+10.8% YoY)
Data Take-Up Data revenues fast accelerating: +41.3% FY2011 and +49.2% in Q4
Web/Smartphone penetration at 27% of total lines (vs. 10% Dec’10)
Increased 2G Capacity by 43% in 1 Year (+157k TRX installed)
Streghthening Coverage 3G at 67% urban population: 488 cities (502 at ending of January)
Network
N t k Roll-out
Roll out of own transmission: 25k long distance back bone and 12k microwaves installed
back-bone
Capex at R$3.0bn – Reduced commercial investments and more allocation on network
3

5. Three Years in Few:
Accelerating Growth and Profitability
Customer Base Expansion Revenues growth
Million lines R$ billion
+18% Fastest
13.1
13 1 growing
Company
9.9 3X Net Revenues +5%
Net Adds 0%
4.7 Growth YoY
64.1 17.1
51.0
51 0 13.7 14.5
14 5 +25%
41.1 +56%
Total Net
Customer Revenues
Base
2009 2010 2011 2009 2010 2011
Market share EBITDA , EBIT , EBITDA-CAPEX
% of lines R$ billion
Leading 2.1
34% 33% growth for the
1.2
Incremental 2nd year
4.1X
market 20% 0.5
26.5%
share EBIT
1.36
1 36 1.64
1 64
25.1%
0.80 2X
Back to #2 EBITDA-CAPEX
23.6%
Market 2009 2010 2011
share
2009 2010 2011 EBITDA 3.5 4.2 4.6
4

6. Two Markets, One approach: Simplicity
“Voice is Good” “Internet for All”
Total Voice Traffic Volume Example: Infinity Web
Pushing the
(Billion of minutes) (Daily Internet unique users-Pre paid (Mln)) >15mln of
fixed-mobile
fixed mobile
substitution unique users
86.7 2.7
per month
(Pre+Pos)
62.5
9X
2X
38.1
0.3
2009 2010 2011 Aug 10 Dez 11
“Ride the
Voice Revenues Data Revenues
simplicity”
Voice Outgoing Gross Revenues Gross Data Revenues +49%YoY data
(R$ Billion) growth in 4Q11
13.4 (R$ Billion) 3.2
2.2
1.9 +67%
11.3
+34%
10.0
2009 2010 2011 2009 2010 2011
Leading the Voice Market with just 2 concepts: Fast growing in VAS with just 2 concepts:
• Infinity (Pre): price per call; local and LD • Infinity (Pre): unlimited browsing/messaging, per day
• Liberty (Pos): unlimited call; local and LD • Liberty (Pos): unlimited browsing/messaging, per month
5

7. Network Evolution
2G Capacity
TRX Total Brazil – installed in 2011
3G - Coverage Activations accumulative, 2011 Total TRX, ‘000 157
50.000 47,147 110
40.000 88 +43%
30.000
67% 502 in 20.000 +25%
54%
32% jan’12 10.000
% urban 0
population Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec EoP 2009 EoP 2010 EoP 2011
coverage 488 Of which TRX North and Northeast Brazil North and
Activations accumulative, 2011 Northeast
25.000 20,565
210 20.000 43%
15.000 Rest of 57%
# cities 57 10.000 Brazil
5.000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009 2010 2011
3G Overlay
Node B – installed in 2011
CAPEX Activations accumulative, 2011 Total NodeB 6, 476
4,676
4 676
R$ Bln 2,000 1,800
1,500 +38%
19.4 19.6 2,142
1,000
As % of +118%
Net sales 17.5 500
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec EoP 2009 EoP 2010 EoP 2011
3.0 Long Distance Fiber Backbone Radio transmission (MW)
2.7 2.8
km Total MW
Invest.
12, 090
commercial
24,800 9,441
Invest. 16,000
,
network 15.000 4,605 +28%
+105%
2009 2010 2011
2009 2010 2011 EoP 2009 EoP 2010 EoP 2011
6

8. Agenda
Main Achievements - Luca Luciani
Operational Performance - Lorenzo Lindner
Marketing Activities - Roger Solé
é
Financials Highlights - Cl di Zezza
Fi i l Highlight Claudio Z
Conclusion & Outlook Luca Luciani
Outlook–
7

9. Customer Base Evolution
2011 vs. 2010
Mln lines
+4.9 +13.1
+3.7 64,1
+2.7
+1.8 59,2
+4.1 55,5 9,3 +1.8
+2.5 52,8
51,0 8,7
+1.3 +2.1
+2 1 8,0
+1.8 +1.5 46,9
+1.7 44,4 7,7
42,4 7,5
39,6 41,1
37,8 7,2
36,1 7,0
6,5 6,6
6,3
6,2
6,2
,
Pos
P
54,8 +11.2
47,5 50,6
43,6 45,1
37,5 39,7
33,3 34,7 35,8
29,9 31,6
Pre
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Net Adds
Pre-paid 87 1,687 1,687 1,354 1,103 1,716 2,242 3,838 1,598 2,359 3,053 4,219
(000)
Net Adds
Post-paid -393 41 86 149 150 341 280 243 223 317 632 655
(000)
8

10. Market Share Improvements
Total Mobile Market Post-paid Net Adds - Trailing 12 months
Mkt Share
Mln of lines Mln of lines
Dec’11
71.6
71 6 29.5%
68.6 3.5
66.2
64.0 64.1 26.5%
Vivo 61.3 62.6 2.9
60.3
58.2 60.2 2.4
52.9 53.9 55.5 58.4 60.4 24.9% 1.6 1.8
Claro 51 6
51.6 56.8
56 8
53.7 55.5 1.0
52.2
51.0
43.7 45.5 18.8% 0.5
40.4 41.6 41.5 42.1 0.0
39.3
Dec/10 Mar/11 Jun/11 Sep/11 Dec/11
Oi
Vivo TIM Claro Oi
Dec/10 Feb/11 Apr/11 Jun/11 Aug/11 Oct/11 Dec/11
Net Market Share – Dec’11 Pre-paid Net Adds - Trailing 12 months
% of net adds Mln of lines
10.5
Vivo Claro Oi
8.9
Dec 11
Dec’11 7.6
43% 26% 19% 13%
5.7 6.1
5.7 5.8
Vivo Claro Oi 3.2
FY2011
33% 29% 22% 16% Dec/10 Mar/11 Jun/11 Sep/11 Dec/11
Vivo TIM Claro Oi
9

11. Postpaid growth: A sustainable business model
Customer Base Post-Paid Bad Debt and SAC/ARPU
Mln lines 0.6 0.7 % Gross revenues,
0.3
03 0.3 2.00%
2 00% 1.83%
0.3 0.2 0.2 1.34% 1.04%
0.2 Bad debt/ 1.08% 0.95% 0.92%
Net 0.77%
Addition Gross Rev
3,1
8.65 9.31 2,6
7.70 8.02 2,3
6.96
6 96 7.24
7 24 7.48
7 48
6.62 1,8 1,6 1,7
1,5
SAC/ 1,3
+24.4% ARPU
Customer
YoY
Base
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Anatel’s SMP 11 Indicator* Product Revenues and Capitalized Subsidy
Complains/1.000 Bills
p / R$ Mln
$
2011 Average: 1.45
1.91 Gross
1.85 732 712 Product
1.61 1.55 664 Revenues
424 468 433
1.69 1.63 1.17 1.11 380
1.53
1 53 1.47
1 47 286
1.10
0.76 115 85
Capitalized
64 26 8 0 0 0 Subsidy
Jan'11 May'11 Sep'11 Dec’11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
*Care relative to billing problems on 1,000 bills issued.
10

12. Agenda
Main Achievements - Luca Luciani
Operational Performance - Lorenzo Lindner
Marketing Activities - Roger Solé
é
Financials Highlights - Cl di Zezza
Fi i l Highlight Claudio Z
Conclusion & Outlook Luca Luciani
Outlook–
11

13. ARPU stabilized quarterly
ARPU +4.7% -3.9% +1.0%
QoQ%
Post paid
Post-paid
ARPM and ARPU ARPU
Pre and Post
16.5 17.0 16.4 16.7 +2.8% +0.8% +2.7%
QoQ% stable
ARPM
R$ cents Stabilized Pre-paid
21.6 21.2 21.9
20.8
ARPU
1Q11 2Q11 3Q11 4Q11
Generated*
Incoming Outgoing VAS
Received*
ARPU Mix & Effect
1Q11 2Q11 3Q11 4Q11
YoY% -13.5% -10.9% -9.5% -5.8% 17%
CB Mix:
85% Pre
~5X
15% Post
13%
ARPU stabilized on a quarterly basis
12% 12%
Improving
ARPU dilution limited to Post vs. Pre subscriber mix customer
Post Pre 1Q11 2Q11 3Q11 4Q11 base mix
FMS on voice and data growth contrast ARPU dilution
Net adds Post-paid/Total net adds
*Generated: Voice Out Services & VAS; Received: Incoming Services 12

14. “Voice is Good”: Fixed-Mobile Substitution Accelerates
“Voice is Good” ARPM
Bln Minutes; Minutes R$ cents/min
24.1
24 1
22.4 +8% Reshaping Portfolio… …Portfolio Reshaped 30
20.6 +9% 24.1
Total traffic 19.7 +5% 22.0 25
volume 19.0 18.1
130 131 16.5 17.0 16.4 16.7
20
126 127
15
Favorable
10
MOU Out 112 113 117 119
seasonality
5
MOU In 14 14 13 13
0
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
1Q11 2Q11 3Q11 4Q11
Post-paid Pre-paid
Minutes; ‘000 Minutes; mln
Liberty Infinity
MoU +1%
+3% outgoing -1% +2%
MoU +5% +4.2
+3.1
+3 1
outgoing +7%
+655 +2.4
+632
+1.6
+317
Net +223 Net
Adds Adds
1Q11 2Q11 3Q11 4Q11 1Q11 2Q11 3Q11 4Q11
13

15. Data solid take-up
Monthly unique users
Mln clients
Smartphone penetration and Infinity Web
+83% 17.5
% of handsets over total CB (lines); mln Pre paid users
9.6
2.7
Daily internet
a y te et 0.6
Jan 11
Jan’11 Dec 11
Dec’11
unique users
Post paid Pre paid
27%
20% Handset sold - volume
15% 000 units, handset sales
13%
Smartphone/ 10%
8%
webphone +83% +49% +10%
penetration
Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 +64%
3,507
3,164
3 164
2,589 2,847
2,262 2,125
1,915
1,383
Web/ 52% 69% 68%
Smart- 46% 28% 30% 40%
phone 19%
1Q10 1Q11 2Q10 2Q11 3Q10 3Q11 4Q10 4Q11
14

16. Agenda
Main Achievements - Luca Luciani
Operational Performance - Lorenzo Lindner
Marketing Activities - Roger Solé
é
Financials Highlights - Cl di Zezza
Fi i l Highlight Claudio Z
Conclusion & Outlook Luca Luciani
Outlook–
15

17. 3 waves of growth
Customer Base Voice Data
Mln users 4Q % YoY Min, Billion minutes, Gross Revenue R$ Bln 4Q % YoY %, Gross Mobile Revenue, R$ Mln 4Q % YoY
4.9
4.1
41 +19% 129 131 +1.7%
1 7% 16.7 +310Bps
99 13.6
64.1 MoU
1.5 24.1 +28% 11.2
51.0 958
Net Adds 18.9 % Data Rev./
41.1 Total 12.0 Service Rev.
642
Traffic 3.7
3.1 489
2.8
+26%
Customer +24% Gross +18% Gross Data +49%
Base +11% +31%
Revenues Revenues
(Voice (mobile)
4Q09 4Q10 4Q11 Out)
Q409 Q410 Q411
Q409 Q410 Q411
Revenues
+% 4Q YoY
R$ Mln 4,688 4Q % YoY
3,926
Total Net 3,571 +19.4%
+10%
Revenues
4,237
3,422 3,627
Customer +16.8%
Total Traffic Data +6%
Base Net Service
Revenues
+26% +28% +49%
Community Fixed-Mobile Internet for Q409 Q410 Q411
Strategy Expansion substitution all
16
(Voice)

18. EBITDA and Efficiency
EBITDA Commercial Activities & Others
R$ Mln R$ Mln; 4Q YoY %
30.4 30.6 27.8
27 8 Reported: +8.7%
EBITDA Excl. Subs. +11.0% Fistel +22.6% Taxes Impact
Margin % (net adds +19%)
1,201
1,086 1,305
26 Volume and change in mix
COGS +41.8%
145
(Handsets net revenue +51%)
1.176
EBITDA 940 Commissioning +18.5% Volume and change in mix
(gross adds +27%)
Q409 Q410 Q411 FY YoY Other Past years Tax expenses
Full Year (R$ Bln)
( ) +416.1%
Expenses
EBITDA 3.5 4.2 4.6 +10.4% (one time event 70 mln R$)
EBIT 0.5 1.2 2.1 +72.1%
Traffic Profitability Bad Debt
R$ Mln R$ Mln %
Mln, 4Q % YoY
Total Traffic (min) 4Q % YoY
+27.6% YoY % Bad Debt/
1.08%
Gross Rev. 1.04% 0.95% 0.92%
Gross 3,655 +17.7% 0.77% -12 Bps
Revenues 3,294 3,435
3 105
3,105 3 061
3,061
Voice Out 66 62
Bad Debt 58 61 +7.3%
1,287 +18.7% 42
1,109 1,147 1,203
Network 1,085
costs
4Q10 1Q11 2Q11 3Q11 4Q11 4Q10 1Q11 2Q11 3Q11 4Q11
17

19. Consistent EBITDA growth
EBITDA Evolution From EBITDA to Net Income
R$ Mln R$ Mln
Net Revenue: +762 OPEX: - 658 +1,305
+1 305
+66 -176
-202 -632
+696
-280 +1,305
+1,201
,
+673
-96
30.6% Ebitda Margin 27.8% -172 +405
35.5% Service Ebitda Margin 33.0%
Ebitda Δ Business Δ Business Δ Δ Network Δ G&A + Ebitda EBITDA Depreciation/ EBIT Net Taxes and Net
4Q10 Generated Received Commercial Other 4Q11 4Q11 Amortization Financial Others Income
+ Handsets Expenses Expenses Expenses 4Q11
ΔYoY +23.6% +6.8% +19.5% +18.7% +38.0% +8.7% ΔYoY +8.7% -7.9% +30.8% +69.0% -112.0% -78.5%
Dividend Net income
R$ Mln
$ R$ Mln
$ 2,212
2 212
533
Tax credit
497 1,435 +66%
204 +161% Tax credit 801 +502%
Intelig Fx
Gain 1,285
672
6 2 776
Organic 129
2009 2010 2011
2009 2010 2011
18

20. Cash Generation
Operational Free Cash Flow – TIM + Nov-Dec TIM Fiber Net Debt – TIM + Nov-Dec TIM Fiber
R$ Mln R$ Mln Ebitda +1,314
Δ WC +1,012
1,458 Capex - 1,150
+1,012
-1,150
Income TAX : - 94
+1,314 +1,175 Financial Result: - 101
+1,175 Others : +37
441
-158
4Q11 Δ WC CAPEX 4Q11 3Q11 Oper. FCF Non-Oper FCF 4Q11
EBITDA OFCF Net Net
Debt Debt
% Net 27.9% 21.5% 24.4% 25.0%
Revenue
1.02 bln of Cash generation in 4Q11
% YoY +9.4% - 12.1% +4.5% + 6.1%
19

21. Agenda
Main Achievements - Luca Luciani
Operational Performance - Lorenzo Lindner
Marketing Activities - Roger Solé
é
Financials Highlight - Cl di Z
Fi i l Highlights Claudio Zezzaa
Conclusion & Outlook – Luca Luciani
20

22. 2011 - Delivery on Promises
Waves of Growth
Q4 Results +% 4Q YoY
+16.8% YoY
Net Serv. Rev.
Customer
Total Traffic Data
Base
+26% +28% +49%
Community Expansion FMS (Voice) Internet for everybody
Guidance 2011 - 13 2011
CB Expansion
Mln lines
Market
>25% 26.5%
51.0 64.1 Share
Revenue Total Net Serv Rev : +13%
Serv. Rev.:
dec/10 dec/11 growth % High Single Digit (+7/8%)
Total Net Revenues: +18%
MOU increase
Min/month 129 131 Profitability
(EBITDA) EBITDA 2011 > R$4.5bn > R$ 4.6bn
dec/10 dec/11
Smartphone Penetration CAPEX 3 Years CAPEX R$ 8.5bn ~ R$ 3.0bn in 2011
Smartphone, % CB
~27%
10%
EBITDA - CAPEX OFCF: > R$ 6bn (’11-13) R$ 1.6bn in 2011
dec/10 dec/11
21

23. Conclusions & Perspectives
Marketing repositioning accomplished
Fastest growing company
2009-2011 Building a solid infrastructure
Conclusions Improving company profile:
I i fil
− Acquisition of Intelig and Atimus
High
Hi h commitment with superior C
i ih i Corporate G
Governance (N
(Novo M
Mercado)
d )
Brazil: big and attractive market
Mobile and Fixed: continuous reshaping of Telecom market (Voice FMS;
2012-2014 Mobile Internet take-up)
Perspectives Continuous growth pace (Customer Base, Revenues and Profitability)
Network evolution towards FTTS and advanced data architecture
Additional value creation: confirming the R$4.8bn from TIM Fiber
22