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Institutional Presentation 1Q16

This document provides an institutional presentation from TIM Participações covering the first quarter of 2016. It includes the following sections: 1. An overview of the Brazilian telecom landscape, TIM's market share and performance metrics compared to other operators. 2. Details on TIM Brasil, including its operations, growth history, values, governance practices and focus on sustainability. 3. TIM's strategic priorities to respond to changes in the market as it transitions from voice to data, including resetting its positioning around network quality, innovating offers, improving the customer experience, focusing on higher value customers and sustaining network investment.

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1 Institutional Presentation TIM Participações TIM Brasil Institutional Presentation 1st QTR 2016
2 Institutional Presentation TIM Participações Telecom Landscape 4 TIM Brasil 9 TIM’s Strategy 14 Portfolio 19 Quality & Network Evolution 23 Regulatory Update 28 Financial Data 30 Perspectives 34 Agenda *Click on the page number to access the section
3 Institutional Presentation TIM Participações Telecom Landscape
4 Institutional Presentation TIM Participações ARPU Ranking (US$) Service Revenues Ranking Mobile Penetration Ranking Customer Base Ranking (Mln lines) 49 43 38 37 34 5 182 139 53 24 23 18 1.305 700 356 276 259 Telecom Landscape Source: Merrill Lynch - Global Wireless Matrix 4Q15 (3Q15 data) | Top 5 + Brazil Brazilian market is reaching maturity but there is still room for user profitability and the main opportunity is in data 4th (= vs. 3Q15) 17th (-2 vs. 3Q15) 39th (= vs. 3Q15)9th (-2 vs. 3Q15) 182% 177% 172% 171% 164% 138% (%) (US$ bln) China India USA Brazil Indonesia Finland Arab. Emir. Russia Hong Kong Portugal Brazil USA China Japan UK India Brazil Canada USA Switzerland Norway Qatar Brazil
5 Institutional Presentation TIM Participações 5 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 39.733.8 45.7 36.5 25.1 36.5 50.8 61.7 64.8 2007 2011 2015e 2018e Voice Data
6 Institutional Presentation TIM Participações The industry mobile revenue represented 52% of the total industry revenues in 1Q16 Mobile Fixed Fixed BB Pay-TV Group Customers 2015FY (000´s) 66,234 592 252 n.a. 67,079 Market share 2015FY 25.7% 1.4% 1.0% n.a. --- Net Adds 12M (000´s) -9,486 190 99 n.a. -9,197 Net Revs 1Q16 (R$ Mln) 3,771 181 3,952 ARPU 1Q16 (R$) 17.2 n.a. n.a. n.a. --- Mobile Fixed Fixed BB Pay-TV Group Customers 2015FY (000´s) 73,268 14,868 7,291 1,788 97,216 Market share 2015FY 28.4% 34.1% 28.6% 9.4% 29.2% Net Adds 12M (000´s) -6,669 -331 347 136 -6,517 Net Revs 1Q16 (R$ Mln) 6,213 4,218 10,431 ARPU 1Q16 (R$) 26,9 n.a. n.a. n.a. --- Mobile Fixed Fixed BB Pay-TV Group Customers 2015FY (000´s) 65,978 11,624 8,110 9,897 95,609 Market share 2015FY 25.6% 26.7% 31.7% 52.0% --- Net Adds 12M (000´s) -5,129 -10 587 -274 -4,826 Net Revs 1Q16 (R$ Mln) 3,006 5,948 8,954 ARPU 1Q16 (R$) 14.0 n.a. n.a. n.a. --- Mobile Fixed Fixed BB Pay-TV Group Customers 2015FY (000´s) 48,061 15,105 6,372 1,169 70,707 Market share 2015FY 18,6% 34.7% 24.9% 6.1% --- Net Adds 12M (000´s) -2,857 -1,324 -181 -134 -4,496 Net Revs 1Q16 (R$ 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
7 Institutional Presentation TIM Participações A5:PR/SC * Population 18.1 Mln * Mobile base 22.9 Mln * Penetration 126.5% * TIM’s Market Share 52.4% A6:RS * Population 11.3 Mln * Mobile base 14.8 Mln * Penetration 131.5% * TIM’s Market Share 12.4% Mobile market: Regional overview Penetration per Estate (Mar/16) A1 e A2 A3 A4 A5 A6 A7 A8 A9 A10 Source: Anatel, IBGE A1e A2: SP * Population 44.7 Mln * Mobile base 64.5 Mln * Penetration 144.3% * TIM’s Market Share 26.1% A3:RJ/ES * Population 20.6 Mln * Mobile base 27.0 Mln * Penetration 131.4% * TIM’s Market Share 14.1% A4:MG * Population 21.0 Mln * Mobile base 24.6 Mln * Penetration 117.5% * TIM’s Market Share 24.8% A7:CO * Population 19.7 Mln * Mobile base 26.6 Mln * Penetration 135.1% * TIM’s Market Share 15.1% A8:NO * Population 20.4 Mln * Mobile base 19.2 Mln * Penetration 93.8% * TIM’s Market Share 30.1% A9:BA/SE * Population 17.5 Mln * Mobile base 19.1 Mln * Penetration 108.9% * TIM’s Market Share 20.9% A10:NE * Population 32.4 Mln * Mobile base 39.1 Mln * Penetration 120.9% * TIM’s Market Share 33.0% 64.5 24.6 23.0 16.8 14.8 14.3 11.8 10.8 8.2 8.0 8.5 6.2 .,1 4.7 4.0 4.2 4.2 3.7 3.4 3.9 3.7 2.3 2.2 1.9 0.8 0.7 0.5 144% 118% 139% 110% 131% 128% 126% 121% 99% 120% 124% 209% 88% 117% 101% 127% 121% 92% 127% 122% 111% 101% 121% 123% 99% 95% 93% SP MG RJ BA RS PR PE CE PA GO SC DF MA PB ES MT RN AM MS PI AL SE RO TO AC AP RR Base Móvel (MM) Penetração (base/pop) TIM: Market share leader TIM: 2nd position in market share Mobile base (mln) Penetration (base/pop)
8 Institutional Presentation TIM Participações TIM Brasil
9 Institutional Presentation TIM Participações A solid history of growth TIM’s Position 1998 2003 2009 2016 Purpose To connect and take care of every customer, so everyone can do more  Care about the costumer  Transparency  Commitment  Innovation  Agility Values New Position & New Brand Shareholders’ Structure TIM Celular S.A. Intelig TIM Brasil Serv. e Part. S.A. Free Float Telecom Italia 100% TIM Participações S.A. ON: 33% (808,249,935)ON: 67% (1,611,969,946) 100%100%
10 Institutional Presentation TIM Participações Knowing TIM better  67 million customers (26% of share)  183 own stores  15 Customer Care Centers  ~12 thousand employees  Presence in Brazil since 1998  18th largest Private Company in Brazil (Exame Magazine - 2015)  Approximately R$16 billion of Market Capitalization 15,000 km fiber optical backbone 5,500 km fiber optical backhauling Growth via Acquisiton 2nd Player Market & Revenue Share 95% of urban pop. coverage (3,460 cities) Leader in 4G coverage (439 cities) >9 million 4G users 5% 27% 29% 35% 45% 48% 2010 2011 2012 2013 2014 2015 4.2 4.7 5.1 5.2 5.5 5.4 2010 2011 2012 2013 2014 2015 20.3 24.8 27.8 29.7 29.0 25.8 2010 2011 2012 2013 2014 2015 Gross Revenues (R$ bln) Data Penetration (over customer base) EBITDA (R$ bln) CAGR +5% CAGR +5%
11 Institutional Presentation TIM Participações  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) 8 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
12 Institutional Presentation TIM Participações Corporate Social Responsibility 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. 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 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$45 million
13 Institutional Presentation TIM Participações TIM’s Strategy
14 Institutional Presentation TIM Participações 14 Strategic Guidelines Telecom industry transformation from Voice to Data Market maturity and user behavior change impacting Customer Base and Positioning Challenging Macroeconomic Scenario Infrastructure requirements evolving with Data and 4G Context Changes Key Strategic Priorities Reset positioning: Network Quality / Offer Innovation / Customer Experience Protect value of Prepaid base: From Market Share to Revenue Share Increase share of Mid/High Value customers: focus on higher value Stabilize Corporate Business: accelerate Top /Enterprise and turnaround SMB Sustain Network Investment with prioritized approach and focus on 4G Focus on Efficiency: as a structural element I II III IV V VI
15 Institutional Presentation TIM Participações 98 210 07 08 09 10 11 12 13 14 15e 16e 17e 18e 0.41 0.42 0.42 0.42 0.42 0.36 0.32 0.24 0.16 0.10 0.06 0.03 0.02 07 08 09 10 11 12 13 14 15e 16e 17e 18e 19e 64 602 14 15e 16e 17e 18e 19e Community Era MTR Stabilization Market conditions require a new STRATEGY Multiple SIM cycle Prepaid segment to follow SIM card cycle Data traffic booming Data overcoming voice revenues by 2016 Expansion Consolidation 07 08 09 10 11 12 13 14 15 16e 17e 18e 11 12 13 14 15e 16e 17e Brazil Mobile Traffic (PB) Mln customers 82 min 07 08 09 10 11 12 13 14 15e 16e Voice slowdown Avg Market MOU(min) Source: Internal estimates and BofA ML Global Matrix < 117 min Data Era R$ Reality Check: Transition Phase Transition Industry Evolution Path
16 Institutional Presentation TIM Participações 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
17 Institutional Presentation TIM Participações 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
18 Institutional Presentation TIM Participações Portfolio
19 Institutional Presentation TIM Participações 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
20 Institutional Presentation TIM Participações POSTPAIDPREPAID 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$99/month 2GB + 1,000min off- net + WhatsApp New Portfolio at launch Upselling to improve profitability
21 Institutional Presentation TIM Participações Base New OfferBase New Offer New portfolio presenting positive results Mobile number portability update Improving Quality of Revenues… ARPU improvement in all segments 10% of total base in the new offer % of new offers over gross adds Prepaid ARPU Postpaid ARPU (postpaid users) (R$) (R$) 17% 20% 1Q15 1Q16 Postpaid mix 63% 65% nov/dec-15 1Q16 (postpaid and control users)
22 Institutional Presentation TIM Participações Quality & Network Evolution
23 Institutional Presentation TIM Participações 63 439 1,414 1,860 1Q15 1Q16 Infrastructure deployment towards data continues unabated Coverage Capacity Quality 82% of urban population with 3G and 60% with 4G #1 in 4G coverage 89% of total sites within our own infrastructure Continuously improving network quality Sites Connected with Fiber Cities Sites (000) 194 Cities with MBB Project 94% 97% 95% Feb-15 May-15 Aug-15 Nov-15 Feb-16 90% 97% 80% Feb-15 May-15 Aug-15 Nov-15 Feb-16 Mobile Broadband Instant Speed1 Mobile Broadband Average Speed2 1 SMP10: Measures connection speed at any given time above Anatel’s target. Minimum required of 95% of measurements above target. 2 SMP11: Average connection speed registered within the month. Required to provide at least 80% of the contracted speed. Anatel’s target +32% ~3,800 ~4,800 1Q15 1Q16 +26% 10.7 12.5 1Q15 1Q16 4G 3G +17% 4G 3G 7x 4.0 8.0 2x
24 Institutional Presentation TIM Participações 24 Capex Cycle: Accelerating 3G and 4G Data Coverage 3.9 4.7 2014 2015 2016e 2017e 2018e After the 2015-16 cycle, Capex intensity* to gradually decline 4G coverage to overtake 3G *Excluding Spectrum • Fast transition from 3G to 4G: better quality and more efficient • FTTS to support 4G reaching >80% of total traffic Urban Population Covered Capex per Technology >14 bln <14 bln 2014 2015 2016e 2017e 2018e 4G 3G 2G • Leadership in 4G Coverage and match 3G coverage in 2 years • Competitive 3G coverage in all states • Refarming of 1.8 GHz as a short-term competitive advantage Number of Sites (000) 36% 59% 79% 82% ~90% 2014 2015 2016e 2017e 2018e 4G 3G Capex Plan (R$) 4G Total Sites 12.5 13.3 15.0 16.4 17.7 19.5 2013 2014 2015 2016e 2017e 2018e Other Capex/Sales20% 27%
25 Institutional Presentation TIM Participações Transforming the fixed infrastructure SP RJ  National fiber Backbone: 10 POPs and 14,500 km  National Voice Backbone: 9 switching voice centrals and 150 interconnection points  International Interconnection: two nodes in RJ and SP managing international traffic  Satelite networks links in 9 cities  AES Atimus acquisition in 2011, later called TIM Fiber  Extensive optical fiber network with 5.5 thousand km  Coverage in metropolitan areas of RJ and SP  Potential market of 8.5 million households and 550 thousand companies in 21 cities Intelig Atimus Central Switch Fiber Network Satelite Station Central ATM and IP network Submarine cable MAN – Metropolitan Network Presence
26 Institutional Presentation TIM Participações Asset Optimization 2013a 2014a 2015e 2016e 2017e  Indoor coverage increase in cities already covered with LTE % of urban population covered with 4G 4G with 1.8 4G with 2.5 only +6 p.p. +7 p.p.  Refarming to be applied in other cities Towers Sale: Largely supporting capex increase Possible Technologies 850 MHz Band 900 MHz 1800 MHz 2100 MHz 2500 MHz 700 MHz 2G 3G 2G 3G 2G 4G 3G 4G 4G Efficient use of spectrum portfolio to… Towers sold Asset optimization Estimated value of the deal Towers to be transferred to American Tower 3 Closings in 2015 (April, September and December) Cash in from towers sale From… Refarming 1,800MHz
27 Institutional Presentation TIM Participações Regulatory Update
28 Institutional Presentation TIM Participações 28 Main regulatory topics 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 MarchJanuary 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 Institutional Presentation TIM Participações Financial Data
30 Institutional Presentation TIM Participações Revenue transformation continues Business Generated Revs MixData Revenues Mix Data Growth Reacceleration 21% 21% 17% 9% 14% 1Q15 2Q15 3Q15 4Q15 1Q16 (%YoY) SMS Innovative Services +26 % -37 % 39% 47% 61% 53% 1Q15 2Q15 3Q15 4Q15 1Q16 Data Voice (% of business generated net revenues) 1Q15 1Q16 (VAS net revenues mix; % YoY) Service Net Revenues (%YoY) -4% -5% -7% -8% -8% 1Q15 2Q15 3Q15 4Q15 1Q16 Trend stopped
31 Institutional Presentation TIM Participações Defending results despite tough environment 1 Normalization is related to transformation costs/expenses in HR and G&A 317 128 Net Profit (R$ mln; %YoY) 1Q15 1Q16 Net Debt in 1Q16 7.9 3.5 4.4 (R$ bln) Net Debt / 12M EBITDA: 0.54x Debt Cash Net debt Normalized¹ EBITDA (R$ mln; %YoY) 1Q15 2Q15 3Q15 4Q15 1Q16 • Restructuring’s costs • Short term impact of new offer • Tax impacts Normalized Opex¹ (R$ mln; %YoY) 3,207 3,073 2,820 2,640 2,692 1Q15 2Q15 3Q15 4Q15 1Q16 -16.1% 1,344 1,287 1,296 1,475 1,162 -13.5% -60%
32 Institutional Presentation TIM Participações 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%
33 Institutional Presentation TIM Participações Perspectives
34 Institutional Presentation TIM Participações 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
35 Institutional Presentation TIM Participações 35 Guidance Summary Targets reaffirm commitment to long term value creation for all shareholders KPIs Targets > R$1 bln in savings between 2015-17Opex Margin expansion for every year between 2016-18EBITDA Margin < R$14 bln between 2016-18Capex* Data as main revenue component from 2016, focus on Revenue ShareService Revenues *Excluding Spectrum
36 Institutional Presentation TIM Participações Safe Harbor TIM on the Web 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. TIM website: www.tim.com.br Investor Relations website: www.tim.com.br/ir TIM on Twitter: @TIMBrasil Investor Relations Twitter: @TIM_RI TIM on Facebook: www.facebook.com/timbrasil TIM on YouTube: www.youtube.com/timbrasil
37 Institutional Presentation TIM Participações 37

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Institutional Presentation 1Q16

  • 1.
    1 Institutional Presentation TIM Participações TIMBrasil Institutional Presentation 1st QTR 2016
  • 2.
    2 Institutional Presentation TIM Participações TelecomLandscape 4 TIM Brasil 9 TIM’s Strategy 14 Portfolio 19 Quality & Network Evolution 23 Regulatory Update 28 Financial Data 30 Perspectives 34 Agenda *Click on the page number to access the section
  • 3.
  • 4.
    4 Institutional Presentation TIM Participações ARPURanking (US$) Service Revenues Ranking Mobile Penetration Ranking Customer Base Ranking (Mln lines) 49 43 38 37 34 5 182 139 53 24 23 18 1.305 700 356 276 259 Telecom Landscape Source: Merrill Lynch - Global Wireless Matrix 4Q15 (3Q15 data) | Top 5 + Brazil Brazilian market is reaching maturity but there is still room for user profitability and the main opportunity is in data 4th (= vs. 3Q15) 17th (-2 vs. 3Q15) 39th (= vs. 3Q15)9th (-2 vs. 3Q15) 182% 177% 172% 171% 164% 138% (%) (US$ bln) China India USA Brazil Indonesia Finland Arab. Emir. Russia Hong Kong Portugal Brazil USA China Japan UK India Brazil Canada USA Switzerland Norway Qatar Brazil
  • 5.
    5 Institutional Presentation TIM Participações5 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 39.733.8 45.7 36.5 25.1 36.5 50.8 61.7 64.8 2007 2011 2015e 2018e Voice Data
  • 6.
    6 Institutional Presentation TIM Participações Theindustry mobile revenue represented 52% of the total industry revenues in 1Q16 Mobile Fixed Fixed BB Pay-TV Group Customers 2015FY (000´s) 66,234 592 252 n.a. 67,079 Market share 2015FY 25.7% 1.4% 1.0% n.a. --- Net Adds 12M (000´s) -9,486 190 99 n.a. -9,197 Net Revs 1Q16 (R$ Mln) 3,771 181 3,952 ARPU 1Q16 (R$) 17.2 n.a. n.a. n.a. --- Mobile Fixed Fixed BB Pay-TV Group Customers 2015FY (000´s) 73,268 14,868 7,291 1,788 97,216 Market share 2015FY 28.4% 34.1% 28.6% 9.4% 29.2% Net Adds 12M (000´s) -6,669 -331 347 136 -6,517 Net Revs 1Q16 (R$ Mln) 6,213 4,218 10,431 ARPU 1Q16 (R$) 26,9 n.a. n.a. n.a. --- Mobile Fixed Fixed BB Pay-TV Group Customers 2015FY (000´s) 65,978 11,624 8,110 9,897 95,609 Market share 2015FY 25.6% 26.7% 31.7% 52.0% --- Net Adds 12M (000´s) -5,129 -10 587 -274 -4,826 Net Revs 1Q16 (R$ Mln) 3,006 5,948 8,954 ARPU 1Q16 (R$) 14.0 n.a. n.a. n.a. --- Mobile Fixed Fixed BB Pay-TV Group Customers 2015FY (000´s) 48,061 15,105 6,372 1,169 70,707 Market share 2015FY 18,6% 34.7% 24.9% 6.1% --- Net Adds 12M (000´s) -2,857 -1,324 -181 -134 -4,496 Net Revs 1Q16 (R$ 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
  • 7.
    7 Institutional Presentation TIM Participações A5:PR/SC *Population 18.1 Mln * Mobile base 22.9 Mln * Penetration 126.5% * TIM’s Market Share 52.4% A6:RS * Population 11.3 Mln * Mobile base 14.8 Mln * Penetration 131.5% * TIM’s Market Share 12.4% Mobile market: Regional overview Penetration per Estate (Mar/16) A1 e A2 A3 A4 A5 A6 A7 A8 A9 A10 Source: Anatel, IBGE A1e A2: SP * Population 44.7 Mln * Mobile base 64.5 Mln * Penetration 144.3% * TIM’s Market Share 26.1% A3:RJ/ES * Population 20.6 Mln * Mobile base 27.0 Mln * Penetration 131.4% * TIM’s Market Share 14.1% A4:MG * Population 21.0 Mln * Mobile base 24.6 Mln * Penetration 117.5% * TIM’s Market Share 24.8% A7:CO * Population 19.7 Mln * Mobile base 26.6 Mln * Penetration 135.1% * TIM’s Market Share 15.1% A8:NO * Population 20.4 Mln * Mobile base 19.2 Mln * Penetration 93.8% * TIM’s Market Share 30.1% A9:BA/SE * Population 17.5 Mln * Mobile base 19.1 Mln * Penetration 108.9% * TIM’s Market Share 20.9% A10:NE * Population 32.4 Mln * Mobile base 39.1 Mln * Penetration 120.9% * TIM’s Market Share 33.0% 64.5 24.6 23.0 16.8 14.8 14.3 11.8 10.8 8.2 8.0 8.5 6.2 .,1 4.7 4.0 4.2 4.2 3.7 3.4 3.9 3.7 2.3 2.2 1.9 0.8 0.7 0.5 144% 118% 139% 110% 131% 128% 126% 121% 99% 120% 124% 209% 88% 117% 101% 127% 121% 92% 127% 122% 111% 101% 121% 123% 99% 95% 93% SP MG RJ BA RS PR PE CE PA GO SC DF MA PB ES MT RN AM MS PI AL SE RO TO AC AP RR Base Móvel (MM) Penetração (base/pop) TIM: Market share leader TIM: 2nd position in market share Mobile base (mln) Penetration (base/pop)
  • 8.
  • 9.
    9 Institutional Presentation TIM Participações Asolid history of growth TIM’s Position 1998 2003 2009 2016 Purpose To connect and take care of every customer, so everyone can do more  Care about the costumer  Transparency  Commitment  Innovation  Agility Values New Position & New Brand Shareholders’ Structure TIM Celular S.A. Intelig TIM Brasil Serv. e Part. S.A. Free Float Telecom Italia 100% TIM Participações S.A. ON: 33% (808,249,935)ON: 67% (1,611,969,946) 100%100%
  • 10.
    10 Institutional Presentation TIM Participações KnowingTIM better  67 million customers (26% of share)  183 own stores  15 Customer Care Centers  ~12 thousand employees  Presence in Brazil since 1998  18th largest Private Company in Brazil (Exame Magazine - 2015)  Approximately R$16 billion of Market Capitalization 15,000 km fiber optical backbone 5,500 km fiber optical backhauling Growth via Acquisiton 2nd Player Market & Revenue Share 95% of urban pop. coverage (3,460 cities) Leader in 4G coverage (439 cities) >9 million 4G users 5% 27% 29% 35% 45% 48% 2010 2011 2012 2013 2014 2015 4.2 4.7 5.1 5.2 5.5 5.4 2010 2011 2012 2013 2014 2015 20.3 24.8 27.8 29.7 29.0 25.8 2010 2011 2012 2013 2014 2015 Gross Revenues (R$ bln) Data Penetration (over customer base) EBITDA (R$ bln) CAGR +5% CAGR +5%
  • 11.
    11 Institutional Presentation TIM Participações 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) 8 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
  • 12.
    12 Institutional Presentation TIM Participações CorporateSocial Responsibility 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. 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 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$45 million
  • 13.
  • 14.
    14 Institutional Presentation TIM Participações14 Strategic Guidelines Telecom industry transformation from Voice to Data Market maturity and user behavior change impacting Customer Base and Positioning Challenging Macroeconomic Scenario Infrastructure requirements evolving with Data and 4G Context Changes Key Strategic Priorities Reset positioning: Network Quality / Offer Innovation / Customer Experience Protect value of Prepaid base: From Market Share to Revenue Share Increase share of Mid/High Value customers: focus on higher value Stabilize Corporate Business: accelerate Top /Enterprise and turnaround SMB Sustain Network Investment with prioritized approach and focus on 4G Focus on Efficiency: as a structural element I II III IV V VI
  • 15.
    15 Institutional Presentation TIM Participações 98 210 0708 09 10 11 12 13 14 15e 16e 17e 18e 0.41 0.42 0.42 0.42 0.42 0.36 0.32 0.24 0.16 0.10 0.06 0.03 0.02 07 08 09 10 11 12 13 14 15e 16e 17e 18e 19e 64 602 14 15e 16e 17e 18e 19e Community Era MTR Stabilization Market conditions require a new STRATEGY Multiple SIM cycle Prepaid segment to follow SIM card cycle Data traffic booming Data overcoming voice revenues by 2016 Expansion Consolidation 07 08 09 10 11 12 13 14 15 16e 17e 18e 11 12 13 14 15e 16e 17e Brazil Mobile Traffic (PB) Mln customers 82 min 07 08 09 10 11 12 13 14 15e 16e Voice slowdown Avg Market MOU(min) Source: Internal estimates and BofA ML Global Matrix < 117 min Data Era R$ Reality Check: Transition Phase Transition Industry Evolution Path
  • 16.
    16 Institutional Presentation TIM Participações oVolume 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
  • 17.
    17 Institutional Presentation TIM Participações Fastreaction 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
  • 18.
  • 19.
    19 Institutional Presentation TIM Participações 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
  • 20.
    20 Institutional Presentation TIM Participações POSTPAIDPREPAID Portfolioevolution: 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$99/month 2GB + 1,000min off- net + WhatsApp New Portfolio at launch Upselling to improve profitability
  • 21.
    21 Institutional Presentation TIM Participações BaseNew OfferBase New Offer New portfolio presenting positive results Mobile number portability update Improving Quality of Revenues… ARPU improvement in all segments 10% of total base in the new offer % of new offers over gross adds Prepaid ARPU Postpaid ARPU (postpaid users) (R$) (R$) 17% 20% 1Q15 1Q16 Postpaid mix 63% 65% nov/dec-15 1Q16 (postpaid and control users)
  • 22.
  • 23.
    23 Institutional Presentation TIM Participações 63 439 1,414 1,860 1Q151Q16 Infrastructure deployment towards data continues unabated Coverage Capacity Quality 82% of urban population with 3G and 60% with 4G #1 in 4G coverage 89% of total sites within our own infrastructure Continuously improving network quality Sites Connected with Fiber Cities Sites (000) 194 Cities with MBB Project 94% 97% 95% Feb-15 May-15 Aug-15 Nov-15 Feb-16 90% 97% 80% Feb-15 May-15 Aug-15 Nov-15 Feb-16 Mobile Broadband Instant Speed1 Mobile Broadband Average Speed2 1 SMP10: Measures connection speed at any given time above Anatel’s target. Minimum required of 95% of measurements above target. 2 SMP11: Average connection speed registered within the month. Required to provide at least 80% of the contracted speed. Anatel’s target +32% ~3,800 ~4,800 1Q15 1Q16 +26% 10.7 12.5 1Q15 1Q16 4G 3G +17% 4G 3G 7x 4.0 8.0 2x
  • 24.
    24 Institutional Presentation TIM Participações24 Capex Cycle: Accelerating 3G and 4G Data Coverage 3.9 4.7 2014 2015 2016e 2017e 2018e After the 2015-16 cycle, Capex intensity* to gradually decline 4G coverage to overtake 3G *Excluding Spectrum • Fast transition from 3G to 4G: better quality and more efficient • FTTS to support 4G reaching >80% of total traffic Urban Population Covered Capex per Technology >14 bln <14 bln 2014 2015 2016e 2017e 2018e 4G 3G 2G • Leadership in 4G Coverage and match 3G coverage in 2 years • Competitive 3G coverage in all states • Refarming of 1.8 GHz as a short-term competitive advantage Number of Sites (000) 36% 59% 79% 82% ~90% 2014 2015 2016e 2017e 2018e 4G 3G Capex Plan (R$) 4G Total Sites 12.5 13.3 15.0 16.4 17.7 19.5 2013 2014 2015 2016e 2017e 2018e Other Capex/Sales20% 27%
  • 25.
    25 Institutional Presentation TIM Participações Transformingthe fixed infrastructure SP RJ  National fiber Backbone: 10 POPs and 14,500 km  National Voice Backbone: 9 switching voice centrals and 150 interconnection points  International Interconnection: two nodes in RJ and SP managing international traffic  Satelite networks links in 9 cities  AES Atimus acquisition in 2011, later called TIM Fiber  Extensive optical fiber network with 5.5 thousand km  Coverage in metropolitan areas of RJ and SP  Potential market of 8.5 million households and 550 thousand companies in 21 cities Intelig Atimus Central Switch Fiber Network Satelite Station Central ATM and IP network Submarine cable MAN – Metropolitan Network Presence
  • 26.
    26 Institutional Presentation TIM Participações AssetOptimization 2013a 2014a 2015e 2016e 2017e  Indoor coverage increase in cities already covered with LTE % of urban population covered with 4G 4G with 1.8 4G with 2.5 only +6 p.p. +7 p.p.  Refarming to be applied in other cities Towers Sale: Largely supporting capex increase Possible Technologies 850 MHz Band 900 MHz 1800 MHz 2100 MHz 2500 MHz 700 MHz 2G 3G 2G 3G 2G 4G 3G 4G 4G Efficient use of spectrum portfolio to… Towers sold Asset optimization Estimated value of the deal Towers to be transferred to American Tower 3 Closings in 2015 (April, September and December) Cash in from towers sale From… Refarming 1,800MHz
  • 27.
  • 28.
    28 Institutional Presentation TIM Participações28 Main regulatory topics 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 MarchJanuary 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.
  • 30.
    30 Institutional Presentation TIM Participações Revenuetransformation continues Business Generated Revs MixData Revenues Mix Data Growth Reacceleration 21% 21% 17% 9% 14% 1Q15 2Q15 3Q15 4Q15 1Q16 (%YoY) SMS Innovative Services +26 % -37 % 39% 47% 61% 53% 1Q15 2Q15 3Q15 4Q15 1Q16 Data Voice (% of business generated net revenues) 1Q15 1Q16 (VAS net revenues mix; % YoY) Service Net Revenues (%YoY) -4% -5% -7% -8% -8% 1Q15 2Q15 3Q15 4Q15 1Q16 Trend stopped
  • 31.
    31 Institutional Presentation TIM Participações Defendingresults despite tough environment 1 Normalization is related to transformation costs/expenses in HR and G&A 317 128 Net Profit (R$ mln; %YoY) 1Q15 1Q16 Net Debt in 1Q16 7.9 3.5 4.4 (R$ bln) Net Debt / 12M EBITDA: 0.54x Debt Cash Net debt Normalized¹ EBITDA (R$ mln; %YoY) 1Q15 2Q15 3Q15 4Q15 1Q16 • Restructuring’s costs • Short term impact of new offer • Tax impacts Normalized Opex¹ (R$ mln; %YoY) 3,207 3,073 2,820 2,640 2,692 1Q15 2Q15 3Q15 4Q15 1Q16 -16.1% 1,344 1,287 1,296 1,475 1,162 -13.5% -60%
  • 32.
    32 Institutional Presentation TIM Participações Process Improvement Diggingdeeper 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%
  • 33.
  • 34.
    34 Institutional Presentation TIM Participações 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
  • 35.
    35 Institutional Presentation TIM Participações35 Guidance Summary Targets reaffirm commitment to long term value creation for all shareholders KPIs Targets > R$1 bln in savings between 2015-17Opex Margin expansion for every year between 2016-18EBITDA Margin < R$14 bln between 2016-18Capex* Data as main revenue component from 2016, focus on Revenue ShareService Revenues *Excluding Spectrum
  • 36.
    36 Institutional Presentation TIM Participações SafeHarbor TIM on the Web 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. TIM website: www.tim.com.br Investor Relations website: www.tim.com.br/ir TIM on Twitter: @TIMBrasil Investor Relations Twitter: @TIM_RI TIM on Facebook: www.facebook.com/timbrasil TIM on YouTube: www.youtube.com/timbrasil
  • 37.