2. 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
2
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

3. 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
3
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

4. 118.5
23.2
2009 2010 2011 2012 2013 Jun/14
2Q13 2Q142Q13 2Q14
READY FOR DATA OPPORTUNITY
4
# 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

5. 2Q13 2Q14
o Brasília
o Curitiba
o Rio de Janeiro
4Q13 2Q14
4Q13 1Q14 2Q14
INFRASTRUCTURE FOCUSED IN DATA
5
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:

6. 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
6
 # 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

7. vv
GO TO MARKET PROGRESS
7
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

8. 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
8

9. 2Q13 3Q13 4Q13 1Q14 2Q14
TIM SOLUÇÕES CORPORATIVAS: PLAN MOVING FORWARD IN Q2
9
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%

10. +34%
11.5
18.3
24.5
2Q13 0 1Q14 2Q14
10
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%
10
26k
100k
Jul/14Jun/13
Market
average

11. 4,065
Thousands
2Q13 2Q14
3,985
170
Thousands
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
11

12. -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)
12
EBITDA
692
738
6M13 6M14
+6.7%
>94% towards infrastructure
6M13 6M14
R$1,657 mlnR$1,593 mln
2G
3G
4G 2G
3G
4G
1,984
4,521
2,537
Thousands
Debt Cash Net debt
Jun/13
Jun/14
1,031
6,356 5,325
1,749 1,749
Thousands
4,607 3,576
Debt Cash Net debt
+110% -48%
Investments
Cash Flow - 6 months
(R$ 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

13. 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
13
New Positioning
DATA CENTRIC
APPROACH
Coverage
1
2
3
Capacity
Availability