1. TIM ‐ Acquisition of AES Atimus
Investor Relations - São Paulo. July 8th, 2011

2. Safe Harbor
Safe Harbor Statements
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
forward statements
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.

3. TIM Strategy: 3 waves of
growth
Operating Results
R$ Mln Q1 ‘10 Q1 ‘11 %YoY
Total Revenues 3.296 3.752 14%
Services 3.176 3.463 9%
Ebitda 947 1.033 9%
Ebitda‐CapEx 258 736 185%
Community FMS Infinity Web / Smartphones
1 2 3 Data 3
Expansion Voice
Infinity Web users (Pre‐Paid)
Daily Unique users, Mln clients
1,7
5x
1 Customer Base 2 Revenue Voice Out / MoU
Mln users R$ Bln, Min
R$ Bln Min
0,3
+46% +24%
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
52,8 Revenues 2010 2011
42,4 1.94
(Voice Out) Smartphone penetration
p p
1.78
36,1 1.56 % Webphone+smartphone penetration on Customer Base >18%
126
100
70 12%
10%
MoU 8%
Q1 09 Q1 10 Q1 11
Q1 09 Q1 10 Q1 11
2010 September 2010 Year End 2010 March 2011 Year End
1

4. Supported by a consistent
Network Expansion
TIM Brasil CapEx – Organic growth* Development area
R$ Bln
14Bln E
D
A A
C
R$ 14 Bln in 5 years
R$ 14 Bl i 5 B
R$ 8.5 Bln 2011‐2013
Backbone Backhauling Access
'09 '10 '11 '12 '13
Annual Swaps Microwaves 2G capacity
2.7 2.8 2.9
CapEx Consorthia FTTS 3G coverage
*Excludes spectrum licenses and acquisitions
Backbone Backhauling (MW/FTTS) 2G Network Capacity (voice) Access 3G
000 km 28,0 % of sites connected with # ‘000 TRX installed % of urban population covered
own backhauling 202 >80%
>80%
20,7
20 7 25x
142
16,0 55%
115
80
7,0 2x
20%
'09 '10 '11 ’09 ’10 ’11 ’12 ’13 ’08 ’09 ’10 ’13 ’10 ’13
> 80% of Brazilian major cities 2
connected via fiber by 2013

5. Acquisition of Intelig was key for TIM’s
Evolution and Business Transformation
#1 carrier in long distance services (accelerating FMS)
Market Mobile → Long Distance → Fixed
#1 in voice arena (size; ARPU, growth)
Segment Consumer → Corporate Fast growing presence in Government / Top Customers
Infinity web now exceeds 8 million unique users/month
Product Voice → Data (small screen)
(6% of Brazilian browsers) in just 6 months
#1 in historical areas
Geography South; Northeast → São Paulo; Rio de Janeiro
Fast growing in São Paulo (#2 back) and Rio (close to Oi)
Totaling 28,000km of backbone
Network 50/50% from own /rented → To infrastructured .15,000 km from Intelig
15 000
. Active in swap capacity market / government PNBL
Backbone (Km of fiber) LD Market Share Starting Business Transformation
‘000 % of LDN minutes R$Bln
~28.2 48,3%
48 3%
Network >2 .0
strenghtening ~22.5 ~5.7 Player 1 33,8% Intelig
Player 2 27,7% Revenues
~6.5
>1.0
Player 3 20,6% 17,2%
17,0% 0.6
15.0
15 0 11,5% 11,5%
11 5%
1.0
YE 2009 Intelig Swap of Today Under Total
contribution capacity Construction
2007 2008 2009 Jun/10 Dez/10 '10 '11 '13
Powering up voice 3
mobile growth

6. One of the best
backbone in the country
Optic fiber network
Intelig/TIM
Backbone:
Macapá
Boa Vista
Belém
16,000 Km
Fortaleza
+
Manaus
M Fiber SWAP in 2010: Brazilian Data
M
Activation
~6,500 Km
Porto Velho
ú
Aracajú
Salvador +
Cuiabá
Brasília
PNBL
M
Conjoint Building
Goiania
M
Network 2012:
Uberlândia Belo ~3,800 Km
Campo Horizonte
Grande Vitória Active in
National Backbone + capacity SWAP
Rio de Janeiro Partnership
New swap network São Paulo
Curitiba
Backbone LD Belém
Backbone LD Belém with Telebrás
with Telebrás
New Conjoint Building NtWk – Macapá ‐ Manaus:
M
M for PNBL
M
Metro Swap Agreements
Florianópolis ~2,000 km expansion
New Network Manaus
Porto Alegre
TIM + Intelig:
Intelig enables capacity to swap network ~28.000 Km 4

7. Rationales for AES
acquisition
A Unique Network For the Best Choice
Backbone Backhauling Access
E
D
A A
C
B
TIM/Intelig Mobile
Fixed
AES
(last mile) 3G, WiFi, LTE, 100 Mbps, FTTH
~5.500 km of fiber in SP/RJ
To Support M i M bil Data Expansion
T S t Massive Mobile D t E i And Ch ll g th Fixed M k t
A d Challenge the Fi d Market
R$ Bln, Revenues
Brazilian TLC Market
140
3
111 2
40
Broadband
2
11
1
Intelig at Home
100 Voice 1 100 Revenues at Office
0
2010 2020 '10 '11 '12 '13
5

8. A unique network
AES: widespread network in SP and RJ (urban area) Network Scale-up
~3.0
~2.5 Mission:
Twice as
Km Build the strongest network in
much fixed
incumbent Brazil
SP RJ
backhauling
Infrastructure
in SP and RJ Rational:
MAP
1) Increase of capacity and
capillarity:
a. Additional 5.500 km in top
2 cities
ADSL b. Most valuable asset to
swap with other operators
VDSL
2) Network cost structure
Cable transformation
a. Opex savings (leased lines)
FTTH 100 Mbps
b.
b Capex avoidance (eg FTTS)
(eg.
FTTO 1 Gb
6

9. Best choice in Top 2 Towns
(SP/RJ)
(SP/RJ) – R$ 30 Bln market
SP and RJ: Macroeconomics
R$ Bln, Revenues
Value Proposition
GDP
RJ+SP R$1.3Tln 110 50 30
Argentina R$0.85 Tln Consumer/SoHo
Other Inner
60 20 12
States Area Mobile
Population
SP and
Best‐of‐breed connectivity
RJ+SP = 57Mln Urban 30 18
RJ States 50 Area Fixed (3G, 4G, Wi‐Fi, FTTH)
(3G 4G Wi Fi FTTH)
Italy =60Mln
RJ+SP Brazil TLC TLC Market SP and RJ
Market SP/RJ States Metro Area Seamless experience
TLC Market
30 Bln addressable market,
SP/RJ States: R$50Bln (45% of Brazil)
SP/RJ St t R$50Bl (45% f B il) largely prospect
Bundling broadband
Bundling broadband
Metro Areas: R$30Bln (26% of Brazil) capability off‐the‐shelf
Widespread AES in SP and RJ: Addressable market
Corporate / SME
Mobile PC ~30 Mln people
Best corporate
8 Mln households connectivity
@ Home
@ Hot spot
4,5 Mln households Clouding
class A and B
Voice/data/services
/ /
550.000 companies
7

10. AES Atimus – Acquisition
details
Price Timing
R$ Bln
1,6
16
0,5
Signing Closing Start-up
EV 1,1
SP RJ Total 08/07 Q4’11 Q1’12
Km of Fiber ~3.0 ~2.5 ~5.5 Approvals
pp Integration
g
EV/2011E 13x 7x 11x
Network sinergies
g
Step
St 1 OPEX/CAPEX
(link swap; FTTS)
Mobile
Step 2 Mobile Data Accelaration
4 steps revenues
integration
Step 3 Corporate Data Solutions
Fixed
revenues
Step 4 At home
8

11. Benefits for TIM
shareholders
OPEX/CAPEX Saving Mobile Acceleration
R$ 250 mln in 2012 TIM 2013
R$ 1 bn in 3 years
>34%
29%
13%
E
D
A A
C
B
Brazil EU USA
Community FMS
Data
Expansion Voice
Backbone Backhauling Access
SP/RJ metro – telecom market size Replicating Intelig Value Creation
•R$ 30 Bln TLC Market R$Bln Current TIM
3x 2,9
•27% of Brazilian GDP Revenue
0,2
3 Mobile 0,8
Fixed 9 1,0
Untapped 18 Peers 0,9
Additional
Market Cost Mobile Fixed Total
ota
value at saving Revenue Revenue Value
Topping fixed broadband market dec’09
9

12. Takeaways
Acquisition for R$ 1 6 bln of 5 500 km of best fiber in SP and RJ
1.6 5,500
Closing expected by Q4
Integration completed by Q1 2012
Shareholders value creation by
− OPEX/CAPEX saving (250 mln in 2012; 1 bln in 3 years)
− Mobile revenues acceleration
− Fixed line business expansion
Replicating Intelig’s value creation exercise
10