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  • 1. March 2010
  • 2. 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. 2
  • 3. The domestic market grew 32% in the first month of 2010 Domestic Market - Variation (vs previous period) 145 140 135 130 Market 125 120 115 TAM 110 105 100 Previous 95 Period 90 85 J F M AM J J A S ON D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J 2006 2007 2008 2009 2010 12% market growth 12% market growth 7% market growth 18% market growth 32% market growth 30% TAM’s growth 14% TAM’s growth 11% TAM’s growth 6.5% TAM’s growth 14% TAM’s growth Source: ANAC 3
  • 4. Brazilian domestic market is composed mainly by business passengers Domestic Market Passenger Mix (RPK M) CAGR 50 47.5 44.4 Leisure 39.7 40 20% 35.4 30 28.2 26.6 27.0 25.2 Business 20 17.9 11% 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008* * TAM Estimates 4
  • 5. High concentration of passengers in few airports % Total Domestic Passengers Boarded - 2008 Important barrier for São Paulo¹ newcomers São Paulo² Brasília Limited ability for other Rio de Janeiro³ competitors to grow Salvador 70% 10 main airports in Brazil Belo Horizonte Porto Alegre transport 70% of all Recife passenger traffic Curitiba Rio de Janeiro4 15 main airports are Fortaleza responsible for 80% of the Belém passengers Manaus 10% TAM has in aggregate ~40% Vitória Florianópolis of all slots available in these airports 0% 2% 4% 6% 8% 10% 12% 14% 1-Congonhas 2-Guarulhos 3-Galeão 4-Santos Dumont Source: ANAC 5
  • 6. Brazilian market We have regular flights to all Brazilian capitals and major cities reaching 42 destinations We operate approximately 730 daily flights Commercial agreements with Brazilian Regional Airlines (Trip, Passaredo and NHT) allowing us to reach a total of 79 destinations in Brazil Note: Based on Jan 2010 network 6
  • 7. Opportunity for low fare passengers on off-peak flights Load Factor per hour Off Peak Peak Off Peak Peak Off Peak 75% 70 65 60 55 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 7
  • 8. We have a defined approach to increase our load factors on off-peak flights We are communicating the domestic 1 1 market that besides we are the preferred airline company, we are competitive in price Because of the number of destinations, most of the Campaign started in August 2009 people prefer TAM. TAM We help our passenger to find 54% 2 2 the best prices And now will prefer also because of the price. Implementation of Amadeus platform in November 2009 Consult all our offers. Fly better. Fly TAM. 3 3 We facilitate our passenger payment throw partnership with Banco do Brasil and Itaú Payment in 48 months We receive cash and the bank takes the credit risk and the interests 8
  • 9. We acquired Pantanal Airlines About Pantanal About Pantanal Mid density markets Mid density markets Established in 1993 Market share of 0.14% in 2009 According to ANAC’s 2008 annual report, 245 employees Brazil has 156 city pairs with a daily 3 ATR-42 aircraft with 45 seats demand between 40 and 149 passengers Hub at Congonhas Airport 90% of business passengers Position at CGH Airport Position at CGH Airport Gross revenues of R$72 million in 2006 Weekdays Weekends Total R$64 million in 2007 Oceanair 4,4% 3,3% 4,2% R$56 million in 2008 Pantanal 6,8% 3,8% 6,2% TAM 42,4% 50,3% 44,1% GOL 46,4% 42,6% 45,6% Congonhas Airport has 3,176 weekly slots Source: HOTRAN ANAC’s file, from December 18, 2009
  • 10. The international market (among Brazilian carriers) grew 13% in January of 2010 International Market - Variation (vs previous period) 200 180 160 140 120 Market 100 TAM Previous 80 Period 60 40 J F M A M J J A S ON D J F MA M J J A S O N D J F M A M J J A S O N D J FM A M J J A S O N D J 2006 2007 2008 2009 2010 30% market decrease 5% market decrease 26% market growth 1% market decrease 13% market growth 41% TAM’s growth 71% TAM’s growth 40% TAM’s growth 14% TAM’s growth 9% TAM’s growth Source: ANAC 10
  • 11. The leading Brazilian international carrier Long haul market Miami 28x per week NY 18x per week Orlando 7x per week Paris 21x per week London 7x per week Milan 7x per week Frankfurt 7x per week Madrid 7x per week Latin American market Buenos Aires 63x per week* Cochabamba 4x per week** Santa Cruz de Sierra 8x per week** Santiago 14x per week* Asuncion 14x per week* Ciudad del Leste 7x per week* Montevideo 14x per week Caracas 7x per week Lima 7x per week La Paz 4x per week** * Consider only flights from Brazil Note: Based on Jan 2010 network ** Flights from other countries 11
  • 12. Higher growth anticipated for Brazilian carriers due to the unbalance in the bilateral agreements International passenger - Million CAGR 2003 – 2009 CAGR 2003 – 2009 9% 9% 13.0 12.8 11.4 9.9 10.2 8.9 66% 64% 7.7 58% 71% 67% 58% 57% Intl 36% Carriers 42% 42% 34% 43% 33% 29% Brazilian Carriers 2003 2004 2005 2006 2007 2008 2009* Source: ANAC annual report * estimates 12
  • 13. We are both domestic and international market leaders TAM’s Domestic Market Share* TAM’s Domestic Market Share* 48,9% 50,3% 48,0% 45,6% 43,5% 42,90% 35,8% 33,0% 2003 2004 2005 2006 2007 2008 2009 jan/10 TAM’s International Market Share* – Among Brazilian carriers TAM’s International Market Share* – Among Brazilian carriers 86,5% 81,5% 75,2% 67,5% 37,5% 18,8% 12,0% 14,3% 2003 2004 2005 2006 2007 2008 2009 jan/10 Source: ANAC * RPK – Revenue passenger kilometer 13
  • 14. Liquidity and Debt Profile Adequate debt profile (pro-forma) Adequate debt profile (pro-forma) Strategic liquidity position Strategic liquidity position 2.000 3.000 R$ Million R$ Million 2.607 1.800 2.500 2.453 1.600 1.983 2.000 1.914 1.400 BONDS 1.200 1.500 1.000 995 1.000 800 600 500 400 0 2005 2006 2007 2008 3Q09 200 0 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 sh Ca Net Debt Adjusted / EBITDAR 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Net Debt Adjusted / EBITDAR Leasings on the balance sheet Debentures, bonds and others 8 Debt mix by currency 6.2 x 6.2 6.1 x 6.3 R$ 6 5.7 x 5.7 17% 3.9 x 3.9 4 2.2 x 2.2 2 83% US$ 0 2005 2006 2007 2008 3T09 Obs.: Cash Considers R$ 510MM in Bonds issued in October of 2009 Obs.2: Net Debt Adjusted includes annual operating leases x 7 14
  • 15. With our hedge renegotiation, we avoided a USD 117 million cash outflow Original Position Original Position Renegotiated Position Renegotiated Position Volume¹ Strike² Coverage³ Volume¹ Strike² Coverage³ 1Q09 2,730 105 73% 1,927 107 52% 2Q09 1,980 112 53% 1,245 113 33% 3Q09 1,580 111 41% 1,145 110 30% 4Q09 830 110 22% 830 109 22% Total 2009 7.120 109 47% 5,146 109 34% 1Q10 370 112 10% 890 114 23% 2Q10 210 115 5% 955 115 25% 3Q10 170 111 4% 865 114 22% 4Q10 50 108 1% 720 113 19% Total 2010 800 112 5% 3,429 114 22% 1Q11 - - - 145 107 4% 1 – Volume in thousands of barrels 2 – Average Strike (USD/barrel) 3 – Projected consumption coverage 15
  • 16. The hedge impact on our cash will be lower on the upcoming quarters Sensitivity of the hedge impact on our cash Sensitivity of the hedge impact on our cash (USD million) 125 79 59 54 51 48 49 41 44 37 36 32 31 21 23 20 16 17 85 2 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Realized 50 USD/barrel 70 USD/barrel 90 USD/barrel 16
  • 17. 2009 Guidance Guidance Guidance Realized Realized for 2009 for 2009 2009 2009 Domestic Domestic Demand Growth (RPK) 7% - 10% 17.7% Market Market We will maintain market leadership Domestic --- 45.6% International --- 86.5% Supply Growth (ASK) TAM Domestic 8% 10.4% International 20% 19.0% Total approximate load factor 67% 68.5% New international frequency or destination 2009 1 --- 17
  • 18. Fleet Plan Aircraft to be received in 2010 will replace Aircraft to be received in 2010 will replace Total Fleet the ones that will be redelivered and the ones that will be redelivered and already have pre committed financing already have pre committed financing (end of period) 152 A340 2 148 142 8 10 137 4 3 133 132 4 3 3 4 3 3 4 3 22 22 22 A330 20 18 16 A321 - 5 Average fleet age of 6 Average fleet age of 6 years by the end of years by the end of 3Q09 3Q09 A320 82 113 115 117 107 110 Standardization of Standardization of narrow body fleet: narrow body fleet: A320 family A320 family A319 21 3Q09 2009 2010 2011 2012 2013 B777 B767 Airbus wide-body Airbus narrow-body 18
  • 19. We continue to increase the scope of our MRO Authorities Authorities Airbus: A318; A319; A320; A321; A330 Airframe and Airframe and Boeing: B767 Components Components Fokker: F100 Airbus: A340 Components Components Boeing: B777
  • 20. Contact Phone Phone E-mail E-mail invest@tam.com.br February 19, 2008 Investor Relations Department +55 11 5582-9715 www.tam.com.br/ir Jorge Helito +55 11 5582-8147 jorge.helito@tam.com.br Investor Relations Manager Marcus Rodrigues +55 11 5582-8191 marcus.rodrigues@tam.com.br Investor Relations Coordinator Suzana Michelin Ramos +55 11 5582-9358 suzana.michelin@tam.com.br Investor Relations Analyst 20