tim - meeting with investors of june 2016
TRANSCRIPT
1
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 1
Meeting with Investors
Investor Relations
TIM Brasil Company’s Presentation June, 2016
2
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations
Visit our website and download our IR
app: www.tim.com.br/ir
TIM IR app
(English) TIM RI app
(Portuguese)
Agenda
About us…………………………………………………………….………………...
Market Overview and TIM Positioning………………………..……….
1Q16 Results…………………………………………………………………………
Industrial Plan 2016-18………………………………………………………
Regulatory Update……………………………………………………………….
Appendix………………………………………………………………………………
4
7
13
27
30
38
3
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations
About Us
4
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations
5%
27% 31%
44% 49% 51%
2010 2011 2012 2013 2014 2015
4.2 4.7 5.1 5.2 5.5 5.4
2010 2011 2012 2013 2014 2015
14.5 17.1
18.8 19.9 19.5 17.1
2010 2011 2012 2013 2014 2015
Presence in Brazil since 1998
18th largest Private Company in Brazil*
Approximately R$18 billion of Market Capitalization
Gross Revenues (R$ bln)
Data Penetration (over customer base)
EBITDA (R$ bln)
CAGR+3%
*Source: Exame Magazine - 2015
CAGR+5%
TIM: A Solid Path
2nd in Market & Revenue Share
66.2 million customers (26% Share)
More than 458,000 points of sales
15 Customer Care Centers (16k attendants)
Urban population covered: 82% in 3G and 60% in 4G
~15,000 Antennas
3,448 cities covered
~70,000 km of optical fiber network
2nd in Market & Revenue Share
23,000 indirect jobs
~R$4.7 billion invested in FY2015 (ex-licenses)
Growth via M&A
5
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations
Joined UN Global Compact in 2008
Member of ISE (Sustainability Index)
for 8 consecutive years
Member of ICO2 (Efficient Carbon
Index) for 6 consecutive years
ISO 14001 certified since 2010, 1st
Brazilian telco Sustainability
TIM Stands out in Sustainability
Founded in July, 2013
MISSION: We are committed to creating and strengthening resources and strategies for
the democratization of science and innovation that promote human development in
Brazil, with mobile technology as one of the main facilitators.
In public schools
185,000 children and 6,300 professors
In museums and science and technology centers
More than 70,000 people
R$2.5 million in funding
In public administration
Participatory Urban Caretaker
o 4 municipalities
Cultural maps
o 7 municipalities and RS & CE government
In the federal institutions of professional and technological education
TIM Tec
o MOOC platform
Partnership with 5 federal institutes
Commitment with the 2014-16 Social Investment Plan: R$45 million
Corporate Social Responsibility
6
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations
Statutory Audit Committee:
• Report to Board of Directors
• Oversight Financial reporting
• Analyze anonymous complaints
Compensation Board and Internal Control and Risk Board
operate indefinitely and act independently
Whistleblower channel website: www.tim.com.br/canal-
denuncia
Brazilian Law “Lei das S.A”
Legal Requirements
Demand for transparency
and disclosures
Highest level of Corporate
Governance Requirement of protection for
minority shareholders
Unique Telco company listed on the Novo Mercado
Committees to Reinforce and Guarantee Solid Corporate Governance
10 members (3 independents)
3 members (1 independent)
3 members (3 independents)
3 members
5 members (2 independents)
7 members
Equal rights: vote, dividends and tag along
Higher liquidity
• Single class of share (ordinary shares)
Greater independence of Board of Directors (at least 30%)
Strict disclosure policy
Corporate Governance
7 Meeting with Investors
Investor Relations
Market Overview and TIM Positioning
8
The industry mobile revenue represented 52% of the total industry revenues in 1Q16
Mobile Fixed Fixed BB Pay-TV Group
Customers 1Q16 (000´s) 67,269 609 276 n.a. 68,154
Market share 1Q16 26.1% 1.4% 1.1% n.a. ---
Net Adds 12M (000´s) -8,480 54 105 n.a. -8,321
Net Revs 1Q16 (R$ Mln) 3,771 181 3,952
ARPU 1Q16 (R$) 17.2 n.a. n.a. n.a. ---
Mobile Fixed Fixed BB Pay-TV Group
Customers 1Q16 (000´s) 73,271 14,857 7,396 1,780 97,304
Market share 1Q16 28.4% 34.4% 28.7% 9.4% ---
Net Adds 12M (000´s) -8,609 -351 258 50 -8,652
Net Revs 1Q16 (R$ Mln) 6,213 4,218 10,431
ARPU 1Q16 (R$) 26,9 n.a. n.a. n.a. ---
Mobile Fixed Fixed BB Pay-TV Group
Customers 1Q16 (000´s) 65,289 11,429 8,198 9,850 94,766
Market share 1Q16 25.3% 26.5% 31.8% 52.0% ---
Net Adds 12M (000´s) -6,653 -304 467 -417 -6,907
Net Revs 1Q16 (R$ Mln) 3,006 5,948 8,954
ARPU 1Q16 (R$) 14.0 n.a. n.a. n.a. ---
Mobile Fixed Fixed BB Pay-TV Group
Customers 1Q16 (000´s) 47,749 14,856 6,363 1,181 70,149
Market share 1Q16 18.5% 34.4% 24.7% 6.2% ---
Net Adds 12M (000´s) -2,640 -1,257 -126 -52 -4,075
Net Revs 1Q16 (R$ Mln) 2,032 4,507 6,539
ARPU 1Q16 (R$) 16.7 n.a. n.a. n.a. ---
TIM represents 23.1% of the industry mobile revenue1
1 - Mobile revenue considers only the 5 major players. Oi numbers are adjusted to include corporate mobile
Source: Anatel and players’ financial statements
Mobile Revenues Share
Nextel Oi Claro TIM Vivo
Brazilian Telcos X-Ray
30.5% 31.7% 33.2% 36.7% 38.0%
25.6% 26.6% 26.5% 24.1% 23.1%
17.5% 17.7% 17.5% 17.9% 18.4%
18.3% 17.4% 16.6% 15.5% 15.0%
8.1% 6.6% 6.1% 5.8% 5.4%
2012 2013 2014 2015 1Q16
9
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations
26.6%
47.9%
18.2%
4.9%
2.3% 4.8
10.0
98.2
54.6
37.3
Population by Social Class & Income Profile
A
B1
C
D/E
B2
Note: New criteria from Abep adopted after 2014 Source: IPC Maps 2015; Exchange Rate: 4.00 BRL/USD
Total of Individuals (E)
(MM)
Household Distribution by
Social Class
R$15,000 (US$3,750)
R$3,536 (US$844)
R$1,064 (US$266)
R$7,996 (US$1,999)
Unique Users Penetration by Social Class
83% 85%
67%
78%
54%
72%
41%
65%
31%
56%
2009 2011 2013 2015
AB
C1
C2
D/E
Pop >10yrs
48% 58% 65% 68% Brazil
Size (Mln)
Total (Mln)
174.5 205.2
40.8 52.2
34.3 47.4
33.4 50.9
30.9 54.6
Average Brazilian Household Income: R$2,794 (US$699)
Household Penetration per Income
Note: MW = minimum wage Source: Teleco (PNAD 2014 - IBGE)
90.4% 98.8% 99.6%
32.9%
76.0% 85.7%
Up to 10 MW 10 to 20 MW More than 20 MW
Mobile
Fixed
Brazilian Mobile Market is Reaching Maturity
Household Income Threshold (E)
10
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations
98
210
07 08 09 10 11 12 13 14 15e 16e 17e 18e
0.41 0.42 0.42 0.42 0.42 0.36 0.32 0.24
0.16 0.10 0.06 0.03 0.02
07 08 09 10 11 12 13 14 15e 16e 17e 18e 19e
64
602
14 15e 16e 17e 18e 19e
Community Era MTR
Stabilization Market
conditions require a new
STRATEGY
Multiple SIM cycle
Prepaid segment to follow SIM
card cycle
Data traffic booming
Data overcoming voice
revenues by 2016
Expansion Consolidation
07 08 09 10 11 12 13 14 15 16e 17e 18e 11 12 13 14 15e 16e 17e
Brazil Mobile Traffic (PB)
Mln customers
82 min
07 08 09 10 11 12 13 14 15e 16e
Voice slowdown
Avg Market MOU(min)
Source: Internal estimates and BofA ML Global Matrix
< 117 min
Data Era
R$
Reality Check: Transition Phase
Transition
Industry Evolution Path
11
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations
o Volume Driven (market share)
o Base of Pyramid
o Offer Based on Community
o Handset leadership (focus on volume)
o Mass Channels
o Mobile + B2C
o Value Driven (value share)
o Big Middle of Pyramid + Value Clients
o Bundle of Voice + Data + Off-net
o Handset Support (focus on value)
o Value Channels
o Mobile + B2C + B2B + selective convergence
15 16 17 18 19
OLD go2market
NEW go2market
Commercial Strategy Evolution
Recurring billing
Protection of data value
Customer spending
concentration
Voice + data bundles
On-net + off-net voice
NEW PORTFOLIO
MODEL
12 Meeting with Investors
Investor Relations
1Q16 Results
13
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations
Tough 1Q16 still reflects challenging macro scenario, but points to a beginning of turnaround in operational metrics
Operational
Results
1Q16
Net Postpaid Portability (# of lines)
Customer Base per Technology (% of users over total base)
1 Normalization is related to transformation costs/expenses in HR and G&A
Service Net Revenues
(YoY%) (R$ million)
Normalized¹ EBITDA
MOU – Minutes of Use (Minutes per user per month)
1Q15 2Q15 3Q15 4Q15 1Q16
MTR Impact
-R$142 mln
Industry Reshaping
- Traditional revenues: -20% YoY
- Innovative revenues +26% YoY
- Prepaid base reduction
LTM effect of 2015 inflation
GDP decline
Lower consumer confidence
• Restructuring’s costs
• Short term impact of new offer
• Tax impacts
-4% -5%
-7%
-8% -8%
1Q15 2Q15 3Q15 4Q15 1Q16
Trend stopped
1,344 1,287 1,296 1,475
1,162
1Q15 2Q15 3Q15 4Q15 1Q16
-13.5%
BOU – Bytes of Use (MB per data user per month)
120 119
1Q15 1Q16
340
502
1Q15 1Q16
+48% stable
31%
55%
14%
1Q15 2Q15 3Q15 4Q15 1Q16
2G & Other 3G 4G
14 Meeting with Investors
Investor Relations
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Fast reaction in multiple fronts, positioned for recovery path
Keep investment focus
+394 new cities with 4G vs. 1Q15
4G leadership position
Increasing customer base value
Off-net to all plans & focus on
mobile bundle
Defending results from tax impact
Actions to offset
ICMS increase
Workforce Restructuring program
Adapting to market reality
Company repositioning
New brand launch: quality,
innovation, customer experience
~10% of customer base in the new
portfolio
Price repositioning to
compensate tax
Rightsizing workforce
On track with Efficiency Plan
> R$ 1 bln in efficiency (2015-17)
~40% of program achieved in 1Q16
New phase launched in 2Q16
Infrastructure Offer Portfolio Efficiency Actions Positioning
15 Meeting with Investors
Investor Relations
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
63
439
1,414 1,860
1Q15 1Q16
Infrastructure deployment towards data continues unabated
Coverage
Capacity
Quality
82% of urban
population with 3G
and 60% with 4G
#1 in 4G coverage
89% of total sites
within our own
infrastructure
Continuously
improving network
quality
Sites
Connected
with Fiber
Cities Sites (000)
194 Cities with MBB Project
94%
97%
95%
Feb-15 May-15 Aug-15 Nov-15 Feb-16
90% 97%
80%
Feb-15 May-15 Aug-15 Nov-15 Feb-16
Mobile
Broadband
Instant
Speed1
Mobile
Broadband
Average
Speed2
1 SMP10: Measures connection speed at any given time
above Anatel’s target. Minimum required of 95% of
measurements above target.
2 SMP11: Average connection speed registered within
the month. Required to provide at least 80% of the
contracted speed.
Anatel’s target
+32%
~3,800 ~4,800
1Q15 1Q16
+26%
10.7
12.5
1Q15 1Q16
4G
3G +17%
4G
3G
7x 4.0
8.0 2x
16 Meeting with Investors
Investor Relations
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
28% market share
Data reaccelerating, driven by 4G
Fast growing on 4G
Changing
revenue profile
Data penetration increase Traffic acceleration
(BOU: bytes of use per data customers) (million users)
4G penetration
3G penetration
Innovative Revenues
(R$ bln; YoY growth) (R$; YoY growth)
Source: Anatel
340
502
1Q15 2Q15 3Q15 4Q15 1Q16
26% 48% YoY Growth
(3G & 4G user over customer base)
Source: Anatel
Data ARPU
1.0
1.3
1Q15 1Q16
5.7
7.4
1Q15 1Q16
68% +13pp YoY
Smartphone
penetration
+29% +26%
3.0
9.2
1Q15 2Q15 3Q15 4Q15 1Q16
~55%
~14%
1Q15 1Q16
17 Meeting with Investors
Investor Relations
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Base New OfferBase New Offer
New portfolio presenting positive results
Mobile number portability update
Improving Quality of Revenues…
ARPU improvement
in all segments 10% of total
base in the new offer
% of new offers over gross adds
Prepaid ARPU Postpaid ARPU
(postpaid users)
(R$) (R$)
17%
20%
1Q15 1Q16
Postpaid mix
63%
65%
nov/dec-15 1Q16
(postpaid and control users)
18 Meeting with Investors
Investor Relations
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
POSTPAID PREPAID
Portfolio evolution: a better experience leading to higher ARPU
TIM PRÉ 150 R$7/week recurring
150MB + 100min off-net + SMS
TIM PRÉ 500 R$10/week recurring
500MB + 100min off + Deezer
TIM PRÉ Classic R$8/week
recurring 250MB + unlimited
on-net + SMS
TIM PRÉ 1GB R$35/month
recurring 1GB + 400 min off-
net + SMS
CONTROLE
TIM CONTROLE R$50/month
1.5GB + 500min off-net + WhatsApp
TIM PÓS R$139/month
5GB + 1,000min off-net + WhatsApp
Recurrence as base of all
propositions
VALUE BASE
Offer segmentation to
improve convenience
Better customer experience
for higher ARPU
New Portfolio Evolution
TIM PRÉ 300 R$10/week recurring 300MB + 100min off-
net + SMS
TIM PRÉ 150 R$7/week
recurring 150MB + 100min off-
net + SMS
TIM CONTROLE R$50/month
1GB + 500min off-net + WhatsApp
TIM PÓS R$99/month
2GB + 1,000min off-net + WhatsApp
New Portfolio
at launch
Upselling to improve
profitability
Stay always connected daily prepaid users can keep using data after
package ends (30Kbps)
Hire again your daily package
Increase your daily package
Keep navigating with reduced speed
NEW! Stay always connected
19 Meeting with Investors
Investor Relations
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
1Q15 1Q16
1Q15 1Q16
Revenue transformation continues
Business Generated Revs Mix Data Revenues Mix Data Growth Reacceleration
MTR Cut - Last year of material impact
Total Net Revenues (R$ bln; % YoY)
4.55
3.85 +26.3 % -20.3%
-34.8% +14.3% -61.2%
1Q15 InnovativeServices
TraditionalServices
Incoming FixedBusiness
Handsets 1Q16
21% 21%
17%
9%
14%
1Q15 2Q15 3Q15 4Q15 1Q16
(% YoY)
SMS
Innovative Services
+26 %
-37 %
Mobile Net Service Revenues (R$ bln; % YoY)
-5.4% ex-MTR
Revenue Exposure
39% 47%
61%
53%
1Q15 2Q15 3Q15 4Q15 1Q16
Data
MTR Impact
Voice
3.79
3.58
3.44
(% of business generated net revenues)
-9.2%
(VAS net revenues mix; % YoY)
~7% ~10%
20 Meeting with Investors
Investor Relations
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
26.2% 20.1%
1.6%
-2.8% -9.0%
-22.1%
-61.3%
7.1%
-4.3% Personnel
Efficiency plan on track and to be further accelerated
Normalized1 Opex Performance Ex-COGS (R$ mln)
2,550
2,438
41
1Q15 Growth Inflation ITX Efficiency Plan 1Q16
Efficiency Plan Status (2015-2017)
Jan/15 Dec/17
> R$1 bln
Mar/16
~ 40%
Recurring
% YoY
-4.4%
Reported %YoY
1 Normalization is related to transformation costs/expenses in HR and G&A
-2.8%
Transformation Impact
Normalized for HR additional
costs (R$33 mln)
Opex in
details (% YoY)
Selling & Marketing ITX & Network
G&A
COGS
Bad Debt
Commissions –9.6% Fistel (Condecine
and Net Adds) +8%
Leased Lines -16% Mobile ITX -21%
Power & Rental: +27%
Normalized for Headquarters
relocation costs (R$8 mln)
Products Margin +63%
Bad debt / Gross Revenues 1.2%
Normalized1
-
> R$90 mln Annual
Run rate savings ~R$7 mln
Leased Lines and other net. exp. > R$200 mln
+
Others Costs
21 Meeting with Investors
Investor Relations
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Process Improvement
Digging deeper into cost reduction – Efficiency Program 2.0
Optimization / Control
Strategic Sourcing
Organization/ Rightsizing
and Efficiency
Process Improvement
Business Model
Changes
> R$1 bln in savings
Jan/15 Dec/17
Business Model
Changes
• 3 years program
• Between R$ 300-350 mln per year
Mar/16
Corporate Efficiency Plan
Additional Efficiency & Cost Restructuring
• Enhancement of corporate efficiency program;
• Additional efforts in Sales & Marketing (commissioning
model and advertising);
• Full cash cost approach;
+ Sales & MKT
New Approach
Optimization / Control
+
Strategic Sourcing
+
Organization/ Rightsizing
and Efficiency
+
~ 40%
22 Meeting with Investors
Investor Relations
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
1.34
1.12 1.16
-8% -1% +63%
+41 mln
1Q15 ∆ Other OPEX
ProductsMargin
1Q16 Reported TransformationCosts / Expenses
1Q16 Normalized
1Q15 1Q16
317
128
1Q15 1Q16
Defending margin despite tough environment
Net Debt Net Profit
MTR Cut - Last year of material impact EBITDA Evolution (R$ bln; % YoY)
EBITDA Margin
29.1% 29.5%
Normalized1 EBITDA (R$ bln; % YoY)
Normalized¹ EBITDA Exposure
-9.1% ex-MTR
-60%
7.9
3.5
4.4
Debt Cash Net Debt
(R$ bln)
Net Debt / 12M EBITDA: 0.54x
MTR Impact
1.34 1.16
1.22
1 Normalization is related to transformation costs/expenses in HR and G&A
(R$ mln)
Voice & Data Contribution Margin
Impact of off-net offers, investment
for repositioning & future growth
-13.5%
30.2%
-16.6%
-13.5%
1
~14% ~8%
23 Meeting with Investors
Investor Relations
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Conclusion & Outlook
Less impact from
MTR
-8.7% -9.2%
4Q15 1Q16 2Q16 3Q16 4Q16
-5.3%
-13.5%
4Q15 1Q16 2Q16 3Q16 4Q16
Mobile Service Net Revenues (%YoY)
Normalized¹ EBITDA (%YoY)
1 Normalization is related to transformation costs/expenses in HR and G&A
Headwinds should gradually reduce…
Traditional business
stabilization
Data services
resuming growth
Better customer
base mix
Continuous cost
efficiency program
intensified
Keeping focus on
Infrastructure
24
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 24
Meeting with Investors
Investor Relations
4,328 4,934
6,669
7,860
1Q13 1Q14 1Q15 1Q16
7.52%
9.04%
10.88%
12.49%
7.00%
10.40%
12.24%
14.37%
1Q13 1Q14 1Q15 1Q16
Net financial position details - Cash & Debt Evolution
Short term debt
Better Profile: Less Short Term Debt
Debt by Lender in 1Q16 (% of gross debt; post hedge)
Debt Position (R$ mln; % of total debt in short term)
Cash Position (R$ mln)
Comfortable liquidity margin 18% 22% 20% 18%
Higher cash yield and debt cost due to CDI increase in the period Bigger gap between cash yield and debt cost due to smaller cost of
new loans
Cash Yield vs. Debt Cost (% per year)
Net Financial Position (R$ mln)
Δ: 188 bps
Cash yield
Debt cost
Net debt/
EBITDA 12M 0.56x -0.25x -0.31x 0.54x
¹ Leasing from Towers Sale + LT Amazonas
2,773
3,619 3,550
4,384
1Q13 1Q14 1Q15 1Q16
1,555 1,315
3,119 3,476
1Q13 1Q14 1Q15 1Q16
BNDES 58%
Leasing¹ 18%
BEI 10%
Others 15%
25
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 25
Meeting with Investors
Investor Relations
1,162 -710
-2,174
-41 +136
-1,625
+193 -0.03 -147
-652
-2,232
EBITDA Capex Working Capital Inc. tax&soc.contr. paid
Other Cash flow Cash fromassets
Dividends Interest Other Decrease incash
420
452
1Q15 1Q16
-1,771 -1,626
1Q15 1Q16
Cash Flow Improvements
Normalized OFCF In 1Q16 (R$ mln; YoY)
EBITDA - Capex (R$ mln; YoY)
OFCF evolution (R$ mln; YoY)
-182 mln
YoY -214 mln
-97 mln
-5 mln
+11 mln
+145 mln
+73 mln
-28 mln
+44 mln
-724 mln
-549 mln
1 Normalization is related to transformation costs/expenses in HR and G&A
26 Meeting with Investors
Investor Relations
Regulatory Update
27
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 27
Meeting with Investors
Investor Relations
Spectrum – caps and distribution
Band 850 MHz 900 MHz 1.800 MHz 2.100 MHz 2.500 MHz 700 MHz
Regulated Spectrum Cap (FDD Applications)
(12.5+12.5) MHz
(2.5+2.5) MHz
(25+25) MHz
(15+15) MHz
(30+30) MHz
(20+20) MHz
Global Cap of 80 MHz < Σ of Sub-Caps Specific Caps
4G Spectrum
3G Spectrum
36
11
20
40
40
20
20
20
20
TIM
VIVO
CLARO
OI
NEXTEL
29
24
24
24
20
4
5
5
5
23
18
9
VIVO
CLARO
TIM
OI
NEXTEL
21
18
11
5
3
4
5
26
26
29
35
24
29
25
22
20
40
40
20
20
20
20
0 20 40 60 80 100 120 140
Oi
Vivo
Claro
TIM
Brazil 25
1 Disregarding P Band (2.550 to 2.510 MHz / 2.620 to 2.630 MHz).
1,800 MHz 900 MHz 850 MHz 2,500 MHz ¹ 2,100 MHz 700 MHz
28
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 28
Meeting with Investors
Investor Relations
Main regulatory topics for 2016
2Q16
May June
New regulatory model (1/3) • MiniCom Public
consultation.closed on Jan. 15th.
Net Neutrality • Minister of Justice
launched Public Consultation with the Decree proposal (pubished on May)..
Digital TV • New Analog TV
Switch Off Schedule Approval
• Approval of EAD’s 2nd Payment 1-year postponement to 31/1/2017.
Auction • Resuming Auction of
remaining 1.800, 1.900 and 2.500 MHz spectrum, with local blocks.
Digital TV • Feb 29th - Rio
Verde’s TV Analog Switch Off
Condecine • The Justice granted
preliminary suspension Condecine tax for companies affiliated SinditeleBrasil
April
1Q16
February March January
Auction • Expected Terms
signature of the Auction of remaining 1.800, 1.900 and 2.500 MHz spectrum, with local blocks.
New regulatory model (3/3) • Expected final
ANATEL decision on fixed concession conditions to 2016-2020 review.
Pay TV • New Regulation of
SeAC (Pay TV) under Public Consultation until June.
Condecine • The Supreme Court
determines the obligatory payment of Condecine and suspends the preliminary decision.
Broadband • Fixed data-capped
plans temporarily banned, until ANATEL’s decision
700 MHz • LTE deployment
approval in Rio Verde (expected June).
Res. 664/2016 • ANATEL postponed
(Dec/16) the review of concession contracts and universalization goals.
New regulatory framework (2/3) • MiniCom final report
with competition diagnosis and guideline for ANATEL's actions
Net Neutrality • Presidential Decree
published on May 11th including topics as Traffic discrimination, Transparency, Personal Data and Business Models (Zero Rating).
Brasil Inteligente • Lauched targets to
promote universal internet access (2019)
29 Meeting with Investors
Investor Relations
Industrial Plan 2016-18
30
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 30
Meeting with Investors
Investor Relations
Brazil 2016-18: meeting the challenges
1.8% 2.7%
0.1%
-3.5% -3.8%
0.0%
1.7%
2012 2013 2014 2015E 2016E 2017E 2018E
5.8% 5.9% 6.4%
10.7%
7.0% 5.4% 5.0%
2012 2013 2014 2015 2016E 2017E 2018E
2.04 2.34 2.66
3.90 4.25 4.30 4.31
2012 2013 2014 2015 2016E 2017E 2018E
Source: latest IMF estimates for GDP; Internal Estimates for Exchange Rates forecast, Inflation, MTR Value, SIM/user and market revenues trend
Protecting results in a tougher Macroeconomic Scenario…
…and adapting fast to capture opportunities in a reshaped industry context
0.34 0.30
0.23 0.16
0.10 0.06 0.03 0.02
2012 2013 2014 2015 2016 2017 2018 2019
1.65 1.72
1.81 1.89
2.03 2.00 1.96 1.94
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Real GDP Growth (% YoY)
Inflation Rate (% YoY)
Exchange Rate (R$/USD)
MTR Glide Path (R$/min)
SIM / Unique User
Mobile Market Revenues (R$ bln)
2.7 10.5 23.0
39.7 33.8
45.7
36.5
25.1
36.5
50.8 61.7
64.8
2007 2011 2015e 2018e
Voice
Data
31
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 31
Meeting with Investors
Investor Relations
Highlights of the 2016-18 plan
Telecom industry transformation from Voice to Data
Market maturity and user behavior change impacting Customer Base and Positioning
Challenging Macroeconomic Scenario
Infrastructure requirements evolving with Data and 4G
Context Changes Key Strategic Priorities
Reset positioning: Network Quality / Offer Innovation / Customer Experience
Protect value of Prepaid base: From Market Share to Revenue Share
Increase share of Mid/High Value customers: focus on higher value
Stabilize Corporate Business: accelerate Top /Enterprise and turnaround SMB
Sustain Network Investment with prioritized approach and focus on 4G
Focus on Efficiency: as a structural element
I
II
III
IV
V
VI
32
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 32
Meeting with Investors
Investor Relations
Market dynamics leading to slower growth in customer base with better quality and ARPU
Changing customer profile: increasing value
61.1 63.2
52.7
12.3 12.5 13.6
2013 2014 2015 2016e 2017e 2018e
Customer Base (mln users)
Prepaid
Postpaid
Recurring/Bundles
22.4% >40%
66.2 >60
Total ARPU (R$/month)
18.6 17.7
16.7
2013 2014 2015 2016e 2017e 2018e
Data (%) 24% 30% 37% 46% 54% 61%
Focus on recurring clients, decoupling method of payment and value
Smaller Prepaid base, but higher ARPU and better quality profile
Controle as key source of value generation, as users concentrate spending on TIM
Postpaid stabilization and growth as a result of new offers and business turnaround
Constant revenue share growth during
plan period
Mobile Service Revenues Share (%)
~23%
2015e 2016e 2017e 2018e
33
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 33
Meeting with Investors
Investor Relations
Enlarging our Data Opportunity
BOU (MB) 164 234 306 394
4G Total Population Coverage1
52% 48% 47% 46%
5%
TIMP1P3P4P5
27% 36% 59%
2013 2014 2015
Urban population
3G & 4G Users Evolution
17% 33%
52% 67%
4G
3G
% 3G+4G user/base
12.3 23.6
37.5 37.5 0.0
0.4
2.0 7.1
2012 2013 2014 2015
x3.5 YoY Mkt Share 28% (#2)
Flat YoY Mkt Share 25% (#2)
4G coverage leadership
Data adoption drives change of revenue profile
49% 55%
59% 63%
68%
45% 45% 43% 43% 48%
2014 1Q15 2Q15 3Q15 4Q15 2016e 2017e 2018e
% Smartphone/Base
% Data Users/Base
26%
42%
50%
74%
58%
50%
2012 2013 2014 2015 2016e 2017e 2018e
Voice
Data2
Data Penetration (on TIM Brasil’s User base)
Data Penetration (on TIM Brasil’s Generated Revenues)
1 Coverage calculated by Teleco website (www.teleco.com.br) 2 Data = Data connectivity, Content, Other VAS, SMS
+32pp
34
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 34
Meeting with Investors
Investor Relations
Capex Cycle: Accelerating 3G and 4G Data Coverage
3.9
4.7
2014 2015 2016e 2017e 2018e
After the 2015-16 cycle, Capex intensity* to gradually decline
4G coverage to overtake 3G
*Excluding Spectrum
• Fast transition from 3G to 4G: better quality and more efficient
• FTTS to support 4G reaching >80% of total traffic
Urban Population Covered
Capex per Technology
>14 bln
<14 bln
2014
2015
2016e
2017e
2018e
4G 3G 2G
• Leadership in 4G Coverage and match 3G coverage in 2 years
• Competitive 3G coverage in all states
• Refarming of 1.8 GHz as a short-term competitive advantage
Number of Sites (000)
36%
59%
79% 82%
~90%
2014 2015 2016e 2017e 2018e
4G
3G
Capex Plan (R$)
4G
Total Sites 12.5
13.3
15.0 16.4
17.7 19.5
2013 2014 2015 2016e 2017e 2018e
Other
Capex/Sales 20% 27%
35
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 35
Meeting with Investors
Investor Relations
Growing Support from Cost Efficiency
Efficiency Drivers Im
pa
ct /
Co
mp
lex
ity
- Optimization /
Control
Strategic Sourcing
Organization/ Rightsizing and
Efficiency
Process Improvement
Business Model Changes
2015-17 Efficiency Plan + Network Efficiencies
Jan/15
> R$1 bln
Dec/15
~ 35%
Dec/17
1. Zero Leased Lines Project
2. Rental & Power
3. In/Outsourcing and HR projects
4. Sales & Marketing initiatives
5. Process rationalization & automation
6. Zero Based Budget
7. Strict disconnection policy
Improving EBITDA Margin and FCF
26.1%
28.4%
31.5%
2013 2104 2015 2016e 2017e 2018e
EBITDA Margin (% over Net Revenues)
• Cost efficiencies defend EBITDA performance
• Long term margin expansion as revenues mix turns to data
• FCF will improve as pressures on EBITDA and Capex reduce
+
36
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 36
Meeting with Investors
Investor Relations
Guidance Summary
Targets reaffirm commitment to long term value creation for all shareholders
KPIs Targets
> R$1 bln in savings between 2015-17 Opex
Margin expansion for every year between 2016-18 EBITDA Margin
< R$14 bln between 2016-18 Capex*
Data as main revenue component from 2016, focus on Revenue Share Service Revenues
*Excluding Spectrum
37 Meeting with Investors
Investor Relations
Appendix
38
23.2% 24.0% 23.4% 25.5%
42.3%
31.7%
10.3%
16.9%
1Q13 1Q14 1Q15 1Q16
44.0% 40.6%
32.2% 28.1%
11.3% 12.5%
12.5% 16.6%
1Q14 1Q15 1Q16
Source: Anatel
3G 4G
Mobile Market Share TIM Postpaid Base Evolution (% over customer base)
Nextel Oi Claro
TIM Vivo
26.9% 25.7%
24.9% 25.6%
29.1% 28.4%
18.8% 18.6%
17. 0%
19. 0%
21. 0%
23. 0%
25. 0%
27. 0%
29. 0%
1Q13 1Q14 1Q15 1Q16
Market Share per Technology
20%
17% 17% 15%
Mobile Base Analysis
1Q13 1Q14 1Q15 1Q16
39
Source: Anatel
Total Mobile Base Overview
40
Source: Anatel
Total Postpaid Base Overview
41
Source: Anatel
Total Prepaid Base Overview
42
Source: Anatel
Total Voice & Data (Modem+M2M) Postpaid Base Overview
43 Source: Anatel
Broadband Net Adds (thousand)
Pay TV Net Adds (thousand)
Live TIM Net Adds (thousand)
Fixed Business Net Adds
Nextel Oi Claro
TIM Vivo
18 13
-3
58
105 88 78
40 49
6
-37
-9
1Q13 1Q14 1Q15 1Q16
9
42
32
0
77
81
33
-10
31
1
-23
4
1Q13 1Q14 1Q15 1Q16
2
5
8
14
1Q13 1Q14 1Q15 1Q16
44
Source: Teleco (TIC Households, 2014)
Household Penetration Users per Age Group
Brazil Facts
Source: PNAD – 2014 (IBGE)
94.5% 97.1%
67.7%
91.1% 88.1%
72.1%
20.2%
42.1% 45.4%
37.1%
2007 2008 2009 2010 2011 2012 2013 2014
TV
Mobile Phone
Radio
Computer w/ internet
Fixed Phone
Mobile Phone
Internet
82%
64% 74%
15%
10-15 yrs 16-24 yrs 25-34 yrs 35-44 yrs 45-59 yrs 60 yrs ormore
Brazil’s Specifics
8.5% of Brazilian above 15 years are illiterate
5.8% of the cities accounts for 75% of GDP
30 mln people still live in the rural areas
Brazil is in the 7th position in terms of GDP
Average Brazilian age: 32 years
13 mln Brazilian between 30 and 60 years
45
• A longer then expected process of fiscal adjustments and a greater level of uncertainties in politics continues to trim economic activity
• Government and market consensus have postponed a resume in GDP growth to 2017
• Considering interest rates (SELIC) and FX at current levels, government base case suggests inflation should being to converge to target in 2017
Source: IBGE and Central Bank Inflation report (as of Jun/16) for Government Estimates
GDP Forecast (% YoY growth)
Inflation Forecast (IPCA: 12 months)
Interest Rate Forecast (% Selic Target p.y. - year end)
FX Rate Forecast (R$/U$ - end of period)
Market Consensus
Government Estimates
(3.7)
1.0
2.8
0.2
(3.8) (3.8)
0.9
2013a 2014a 2015a 2016e 2017e
6.5 4.8
6.2 6.3
10.7
7.1
5.5
2013a 2014a 2015a 2016e 2017e
Macro Scenario Outlook
14.25 14.25
10.00
11.75
14.25
12.88
11.25
2013a 2014a 2015a 2016e 2017e
3.7 3.9
2.4 2.7
4.0 3.9 3.9
2013a 2014a 2015a 2016e 2017e
46
Total Fust/ FUNTEL
PIS/ PASEP
ICMS Cofins Fistel
3% ~1%
28%
~5% 1.5% ~39%
Tax Burden Composition (% Gross Revenues)
Taxation represents almost 40% of companies gross revenues
Source: players Balance Sheet
2 Considers TIM, Telefonica, Oi and AMX
45.7 46.0
2012 2013
Telecom Industry Tax Payments2 (R$ bln)
Tax Burden over Net Revenues (over mobile phone services - voice)
Source Teleco study of July 2014
Tax Burden
47
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations
Short term
TIM’s Debt Composition
Price/Book Value
Source: Bloomberg
2016 2015 2014
Long Term
Price/Earnings
Accounts Receivable Turnover (days)
Payable Turnover (days)
TIM
VIVO
OIBR
Market Average
ROE (Net Income/Shrd. Equity) ROA (NOPAT/Total Assets) ROIC (NOPAT/Invested Capital)
Balance Sheet Analysis
13.4% 11.9%
7.9% 8.7%
8.9% 6.8%
12.9% 11.6%
6.3%
2013 2014 2015
10.7% 10.3%
7.6% 8.5%
12.2%
5.8%
13.2%
0.0% 0.0%
2013 2014 2015
7.4% 6.7%
4.9% 5.6% 5.9%
4.8% 5.6% 4.7%
2.4%
2013 2014 2015
19.54 18.44
13.48 13.08 9.32
17.93
4.33 (1.71) (0.36)
2013 2014 2015
2.0 1.9
1.0 1.1 1.1
0.9 0.6 0.4
0.1
2013 2014 2015
1Q 2Q 3Q 4Q
145
166
134
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
45 45 45
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
48
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 48
Meeting with Investors
Investor Relations
Historical Data: P&L
49
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 49
Meeting with Investors
Investor Relations
Historical Data: Operational
50
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 50
Meeting with Investors
Investor Relations
Historical Data: Cash Flow
51
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 51
Meeting with Investors
Investor Relations
Stock Performance (base 100)* Last 12 months
*Last price as of 05/03/2016 Source: Bloomberg
Structure and Stock Performance
Shareholders Structure
Treasury Shares: 795,888 (0.03%) Total Shares: 2,421,032,479
-7%
-21%
-30%
20%
60%
100%
140%
TIM IBOV TSU
52
R 000 G 070 B 145
R 235 G 000 B 040
R 000 G 081 B 135
R 000 G 110 B 184
R 000 G 156 B 222
R 244 G 209 B 000
R 243 G 150 B 016
R 231 G 055 B 140
R 220 G 104 B 075
R 158 G 004 B 073
R 197 G 189 B 193
R 116 G 175 B 039
R 000 G 000 B 000
Meeting with Investors
Investor Relations 52
Meeting with Investors
Investor Relations
Investor Relations Team
Avenida João Cabral de Melo Neto, n 850, North Tower,
12th floor – Barra da Tijuca
22775-057 Rio de Janeiro, RJ
E-mail: [email protected]
Rogério Tostes
E-mail: [email protected]
Phone: +55 21 4109-3742
Vicente Ferreira
E-mail: [email protected]
Phone: +55 21 4109-3360
Leonardo Wanderley
E-mail: [email protected]
Phone: +55 21 4109-4017
Rodrigo Godoy
E-mail: [email protected]
Phone: +55 21 4112-5517
Luiza Chaves
E-mail: [email protected]
Phone: +55 21 4112-6088
Visit our Website
www.tim.com.br/ir
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 Statements