4Q09 Results Release

March 31, 2010

2

Warning -

Information and Projection

This notice may contain estimates for future events. These estimates merely reflect the expectations of

the Company’s management, and involve risks and uncertainties. The Company is not responsible for

investment operations or decisions taken based on information contained in this communication. These

estimates are subject to changes without prior notice.

This material has been prepared by TAM S.A. (“TAM“ or the “Company”) includes certain forward-looking

statements that are based principally on TAM’s current expectations and on projections of future events

and financial trends that currently affect or might affect TAM’s business, and are not guarantees of future

performance. They are based on management’s expectations that involve a number of business risks and

uncertainties, any of each could cause actual financial condition and results of operations to differ

materially from those set out in TAM’s forward-looking statements. TAM undertakes no obligation to

publicly update or revise any forward looking statements.

This material is published solely for informational purposes and is not to be construed as a solicitation or

an offer to buy or sell any securities or related financial instruments. Likewise it does not give and should

not be treated as giving investment advice. It has no regard to the specific investment objectives, financial

situation or particular needs of any recipient. No representation or warranty, either express or implied, is

provided in relation to the accuracy, completeness or reliability of the information contained herein. It

should not be regarded by recipients as a substitute for the exercise of their own judgment.

3

Highlights

Founded in 1993

Market share of 0.14% in 2009

245 employees

5 aircraft ATR-42 with 45 seats, 3 were operating in 2009

Hub at Congonhas Airport

90% of business passengers

Gross revenue

R$72 million in 2006

R$64 million in 2007

R$56 million in 2008

R$52 million in 2009

Primary offer on Feb/4/2010

Green shoe: Mar/1/2010

Total shares issued: 43,274,000

Price: R$ 16.00

Free float: 26.83%

Total value: R$ 692 million

Net value: R$ 662 million

Advance to supplier to purchase of tickets in advance: R$ 622 million

Acquisition of PantanalAcquisition of Pantanal Multiplus IPOMultiplus IPO

Slots position at CongonhasSlots position at Congonhas

December 2009 March 2010

48% 46%

6%

44%

46%

10%

TAMTAM +

Pantanal2an player

Others Others

2an player

4

Multiplus performance indicators show strong operational growth...

Note: Pro-forma carve out financials

million

5,56,6

2008 2009

20%

3236

2008 2009

billion 14%

billion

2126

2008 2009

21% %

27% 27%

2008 2009

Number of Points Redeemed Breakage Rate

Number of Members Number of Points Issued

5

… and financial growth, reaching 24% of adjusted EBITDA margin

596

796

2008 2009

89

128

2008 2009

Note: Pro-forma carve out financials

R$ million R$ million

R$ million R$ million

34%

43%

736

906

2008 2009

23%

195219

2008 2009

24%27%Margin

12%

Net Income

Net RevenuesGross Billings

Adjusted EBITDA and Margin

16%15%Margin

6

Our domestic revenue reached R$ 1,43 billion, representing an increase of 10% versus 3Q09

RPK6,016

6,323 7,024

4Q08 3Q09 4Q09

ASK9,191 9,491 10,213

ASK, RPK and Load Factor

LoadFactor 65% 67% 69%

27.621.0 20.7

4Q08 3Q09 4Q09

Scheduled Yield - R$ Cents

1,6411,307 1,433

4Q08 3Q09 4Q09

Passenger Revenue - R$ Million

17.013.1 13.4

4Q08 3Q09 4Q09

Scheduled RASK - R$ Cents

-25%

-2%

-21%

2%

-13%

10%

11%

8%

17%

11%

Domestic PassengersDomestic Passengers

7

The increase in the load factor was mainly driven by a higher mix of passengers flying on the off peakLoad Factor x Hour *

*Domestic

flights

at

weekdays

Off Peak Peak Off Peak Peak Off Peak

54%

59%

64%

69%

74%

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

4Q08 3Q09 4Q09

8

The international revenue increase in US dollars

RPK4,366

4,878 4,935

4Q08 3Q09 4Q09

ASK6,010

6,585 6,534

ASK, RPK and Load Factor

LoadFactor 73% 74% 76%

U$8.0

U$7.3

U$7.5

4Q08 3Q09 4Q09

R$18.2

R$13.6

R$13.0

Scheduled Yield - Cents

U$348

U$356

U$368

4Q08 3Q09 4Q09

R$794 R$

663R$640

Passenger Revenue - Million

U$5.8

U$5.4

U$5.6

4Q08 3Q09 4Q09

R$13.2

R$10.1

R$9.8

Scheduled RASK - Cents

-29%

-5%

9%

-1%

13%

1%

2.3 1.9 1.7

4Q08 3Q09 4Q09

-24%

-7%

Avg

US DollarAvg

US Dollar

2%

-7%

-19%

-4%

4%

6%

-26%

-3%

4%

-3%

International PassengersInternational Passengers

9

The economic crisis and the natural maturation period of the new routes impacted the international performance

Current Period

Previous Period

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Fev Mar Abr Mai Jun Jul Ago Set Out Nov Dez Jan Feb85

95

105

115

International Load Factor(versus same month of previous period)

2008 2009 2010

Beginning of routeRio de Janeiro –

MiamiBeginning of routeRio de Janeiro –

NY

Beginning of routeSão Paulo -

Orlando

Results of international routes in the first months of 2010 show a significant recovery

Results of international routes in the first months of 2010 show a significant recovery

10

International cargo revenue presented a strong recovery

156

122

124

114

150

125

4Q08 3Q09 4Q09

278

238

275

-1%

15%

Domestic International

10%

3%

20%

-4%22

112

192

133

158

120

165

4Q08 3Q09 4Q09

326303 299

-8%

-2%

5%

-14%

-10%

8%

Expired tickets OthersLoyalty Program

Cargo – R$ MillionCargo – R$ Million Other Revenues – R$ MillionOther Revenues – R$ Million

11

Our CASK is 16% lower when compared to 4Q08

U$7.6

U$7.7

U$8.3

4Q08 3Q09 4Q09

R$17.2 R$

14.4R$

14.4

CASK - Cents

U$4.7

U$5.4

U$5.8

4Q08 3Q09 4Q09

R$10.7

R$10.1

R$10.0

CASK ex-Fuel - Cents-16%

0%

9%

7%

-6%

7%

23%

0%

CASK evolutionCASK evolution

CASK 4Q08 Fuel Personnel Maintenance Sellingand Mkt

Landing,take-off andnavigation

Others CASK 4Q09

17.2

-2.2-0.6 -0.2 -0.1 -0.1

0.4 14.4

Fuel

11.3 10.2

1S09 2S09

15.4 14.5

-5%

-9%

CASK 2009CASK 2009

12

We consistently reduced our CASK over the years, and in a comparable route, we have a 9% higher CASK compared to the competitor in 2009

CASK evolution –R$ CentsCASK evolution –R$ Cents

We delivered sequentially consistent

reductions of CASK ex-fuel

We delivered sequentially consistent

reductions of CASK ex-fuel

CASK released – R$ CentsCASK released – R$ Cents CASK comparable* – R$ CentsCASK comparable* – R$ Cents

* Includes adjustments in maintenance and fuel costs by stage length (proportionally larger as the stage length decreases)Sources: TAM e Gol quarterly reports in BR GAAP Law 11,638

2007 2008 2009

16.414.6

17.815.8 15.4

14.1

12% 13% 9%

TAM GOL

15.7 15.012.6 11.9 11.6 10.7 10.8 10.5 10.5

2003 2004 2005 2005 2006 2007 2007 2008 2009

20.1 20.118.6 17.9 17.5

16.1 16.117.3

14.8

CASK ex-combCASK

US GAAP BR GAAP 11.638Br GAAP 6.404

-4% -16% -3% -8% -3%

TotalCASK

CASKex-fuel

2007 2008 2009

16.114.6

17.315.8 14.8 14.1

9% 5%11%

TAM GOL

1%

13

Our CASK reduction actions are focused on the following fronts

Continuous

Evolution

Program

Outsourced Services

and Others

Fuel

Salesand

MarketingPersonnel

Maintenanceand

ReviewsNetwork

Reduction of fuel consumption on ground

Weight on board reduction

New payment options allow reduction on credit card expenses

Improved synergy between air network and maintenance bases

Optimization of procurement and logistics processes

Renegotiations and contract reviewStandardization of the IT platformOptimization of internal processes

Increased productivity with new personnel structure

New fleet plan

Increased in aircraft utilization

Reduction of aircraft ground times

14

The negative financial result from 4Q08 was reversed

4Q08 FinancialInstruments

Exchangegains

Income Interest Others 4Q09

-2,100

1,107

913185 2 -15 93

-2,300

-1,700

-1,100

-500

100

Financial Result Variation - R$ MillionFinancial Result Variation - R$ Million

15

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11

125

79

4841

54

37

21

59

41

23

51

36

20

44

31

178 5 2

(USD million)

The hedge impact on our cash will be lower on the upcoming quarters

50 USD/barrel 70 USD/barrel 90 USD/barrelRealized

Sensitivity of the hedge impact on our cashSensitivity of the hedge impact on our cash

In 2009 we saved US$ 117 million in cash due to hedge renegotiation

In 2009 we saved US$ 117 million in cash due to hedge renegotiation

16

Net Revenue Margin

4Q08 4Q09 -1,229

144Net Income - R$ M

-42%

6%

4Q08 4Q09

307

137

EBIT - R$ M

10%

5%

4Q08 4Q09

530

364

EBITDAR - R$ M

18%

14%

-55% -31%

4Q08 4Q09 -1,239

-334

Net Income - R$ M

-43%

-13%

4Q08 4Q09

214

126

EBIT- R$ M

7%

5%

4Q08 4Q09

465

373

EBITDAR - R$ M

16% 15%

-41% -20%

*EBIT and EBITDAR, exclude movement in fair value of fuel derivatives and aircraft revaluation

EBITDAR, EBIT and Net Income

73%

BR GAAPBR GAAP

IFRSIFRS

17

Aircraft revaluation adjustments is the main difference between BR GAAP and IFRS

1

Income tax and social contribution

1

Net Income Reconciliation - 4Q09Net Income Reconciliation - 4Q09

Net IncomeBR GAAP

Loyalty ProgramAdjustment

AircraftRevaluationAdjustment

OthersTaxes over

adjustmentsNet Income

IFRS

144

-40

-743

49

256-334

Obs.: Profit

(loss) before

minority

interest

18

Liquidity and debt profile (pro-forma)

Cash 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200

300

600

900

1,200

1,500

1,800

2,100

2,400

2,700

3,000

84%

16%

Adequate debt profile (pro-forma)Adequate debt profile (pro-forma)

R$ Million

Debt mix by currency

Strategic liquidity positionStrategic liquidity position

R$ Million

Net Debt Adjusted / EBITDARNet Debt Adjusted / EBITDAR

Obs.1: Cash considers R$ 662MM added by Multiplus IPO in January of 2010Obs.2: Net Debt Adjusted includes annual operating leases x 7Obs.3: Debt is considered in US GAAP for 2005 and 2006 and in BR GAAP from 2007 to 2009, including Multiplus’ IPO pro-forma cash

R$

US$

Debentures, bonds and othersLeasing on the balance sheet

2005 2006 2007 2008 2009

995

2,4532,607

1,914

2,807

0

500

1,000

1,500

2,000

2,500

3,000

IPO MPLU

2005 2006 2007 2008 2009

3.9 x

2.2 x

5.0 x

6.0 x 5.7 x

0.0

2.0

4.0

6.0

8.0

19

We will pay an amount of R$ 237 million in interest on capital and dividends

Net Income2009

AccumulatedDefficit

Others RemainingNet Income

LegalReserve

MandatoryMinimumDividends

ProfitRetentionReserve

1,343

-3633 983

-49

-237697

0

500

1,000

1,500

2009 Results destination(R$ Million) Dividends

89%

Interest on Capital11%

1 Distribution for the year considers gross interest on capital and dividends

2

The Dividend Yield is calculated using 2010, March 30, share value of R$ 28,48

Distribution Indicator Value

Net Income (R$ thousand) 1,342,539Distribution for the year 1 (R$ thousand) 236,722Number of shares 150,182,836Share price (R$) 28.48

Net Income per share (R$) 8.94Distribution per share 1 (R$) 1.58Dividend Yield2 (%) 5.53%

20

Domestic Market

Domestic Market

Demand Growth (RPK)

We will maintain market leadership

Domestic

International

Supply Growth (ASK)

Domestic

International

Total approximate load factor

New international frequency or destination 2009

7% - 10%

- - -

- - -

8%

20%

67%

1

17.7%

45.6%

86.5%

10.4%

19.0%

68.5%

- - -

Guidancefor 2009

Guidancefor 2009

Actual2009

Actual2009

2009 Guidance

21

Domestic Market

Domestic Market

2010 Guidance

Demand growth (RPK) 14% -

18% 36%

Supply growth (ASK) 12% 6%

Domestic 14% 8%

International 8% 3%

Load factor 69% 75%

Domestic 66% 73%

International 75% 80%

New international frequency or destination 2 ---

CASK ex-fuel -6% ---

Average WTI USD 85 USD 77

Average US dollar rate R$ 1,81 R$ 1,81AssumptionsAssumptions

Guidancefor 2010

Guidancefor 2010

ActualJan - FebActual

Jan - Feb

22

We revised our fleet plan to incorporate the domestic market reality and the acquisition of Pantanal

Total Fleet (end of period)Total Fleet (end of period)

Average fleet age of 6 years by the end of

4Q09

Average fleet age of 6 years by the end of

4Q09

Aircraft to be received in 2010 will replace the ones

that will be redelivered and already have pre committed financing

Aircraft to be received in 2010 will replace the ones

that will be redelivered and already have pre committed financing

B767 Airbus wide-body Airbus narrow-bodyB777 ATR-42

43

A340 - 2

A33016

A321 - 5

A32081

A31921

43

2

18

7

84

25

5

43

2

20

9

84

28

5

83

20

125

103

18

129

10

21

134

2009 2010 2011 2012 2013 2014

132

148155 156 160

165

23

You don’t need to be at home to feel at home.

Business Class at TAM