SlideShare a Scribd company logo
TIM Brasil
Company Presentation
June, 2020
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Disclaimer
This presentation contains declarations
that constitute forward looking
statements regarding the intent, belief or
current expectations of the customer base,
estimates regarding future financial results
and other aspects of the activities.
Analysts and investors are cautioned not
to place undue reliance on those forward
looking statements, which speak only as of
the date of this presentation. TIM Part
undertakes no obligation to release publicly
the results of any revisions to these forward
looking statements.
Such forward looking statements are not
guarantees of future performance and
involve risks and uncertainties, and actual
results may differ materially from those
projected as a result of various factors.
Financial results are presented considering
impacts from IFRS 16 adoption, except
otherwise indicated.
2
Meeting with Investors | June 2020
TIM Participações – Investor Relations
COVID-19 Outbreak in Brazil: Gradual Reopening After Significant Impacts
3
(1) Covid.saude.gov.br; (2) Community Mobility Reports as of 5th of June (3) “Focus” Readout from Brazilian Central Bank as of June 5th, 2020; (4) FGV’s
Consumer Confidence Index showed the lowest level of the 15-year historical series in April: 58,2 on a scale of 0-200 (-22 p.p. MoM); (5) Data from the Monthly
Survey of Industry (“PIM”) reported by IBGE in June 9th, 2020; (6) ICVA (“Índice Cielo do Varejo Ampliado”) from March 1st to April 11th.
Major cities gradually reopening: Rio de Janeiro and São Paulo started in early June
South and Mid-west of the country are ahead in the reopening process: mobility restriction peaked
between April and beginning of May in these states
SOCIAL & HEALTH IMPACTS
Measures were implemented on a regional
basis without a central coordination by the
federal government.
Social distancing measures started in
March 17th.
According to Google Mobility metrics, Brazil’s
quarantine led to moderate mobility restriction2
Average mobility (Feb-May) vs base line
ECONOMIC IMPACTS
GDP 2020 forecasts dropping from 2.0% in
the begging of the year to -6.5% in early
June3.
Consumer confidence at its lowest in April4
Industrial production fell ~19% from
March to April5
28% drop in retail sales from
March to April6
GOVERNMENT MEASURES AND
ACTIONS
→ 6% of GDP in relief programs for workers,
families and businesses
→ Informal workers’ assistance checks of R$600 for
3 months
→ Payroll financing for companies of all sizes
→ Expansion of Bolsa Familia cash transfer
program to additional 1.5 mln families
→ ~R$ 100 bln in postponement and reduction of
federal taxes
→ R$ 16 bln in credit lines for micro and small
companies
→ R$60 bln in fiscal aid packages for states and
municipalities
Confirmed
cases:
1,106,470
Confirmed
Deaths:
51,271
Recovered
cases:
571,649
(as of June 22nd)1
-41%+12%-35%-9%-38%-21%
Retail &
Recreation
ResidentialGroceries &
Pharmacy
Parks Transit
Stations
Workplaces
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Quick Response to Care for our People, Clients and Society
EMPLOYEES CUSTOMERS SOCIETY
Social isolation, people management, and
maintenance of work conditions
Service guarantee and maintenance of
customer relationship, prioritizing digital
Supporting the fight against COVID-19
99.9%
of employees on
remote work since
Mar 20
100% of stores closed
from Mar 31 to
early June
1st to convert internal call
center to remote work
Big Data and Analytics
→ First mover with city of Rio de
Janeiro partnership
→ First joint effort between the 4
operators as data providers for
the market
Sectorial agreement with OTTs to
guarantee service availability
Network Adjustments
Strengthening coverage in residential,
hospitals and health institutions areas
1
Digital First
Reinforcing e-Sales & e-Caring channels:
Meu TIM, Cognitive IVR and digital service
channels such as SMS, Chat TIM, WhatsApp,
and digital recharges
2
Maintaining the Relationship
→ More service in exchange for customer
engagement continuity
→ Temporary adjustments to collection rules
and payment terms
3
Service prioritization to support the fight –
the “Caixa Econômica Federal” case
→ 48h for a service implementation (111 code) vs
30 days usually
→ Quick response to apply zero rating to “Auxílio
Emergencial” app (government aid claims)
4
Preserving Jobs
→ Collective Labor Agreement to support contingency
measures in alignment with MP 936
→ ~2.5k employees under temporary salary and work
reduction: ensured net income with 7% back to
activities
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Mixed Impacts Coming From the Pandemic. So Far, Negative Effects Were
Mostly Concentrated in Prepaid, While Postpaid and Live Are Controlled
5
Areas of concern Impacts
Prepaid Recharges
→ Recharges dropped -25% in the early days of the of the isolation and decelerate to mid-teen
drop in early May;
→ Revenue mix shift helped reduce the size of the impact (from 45% in 1Q17 to 30% of prepaid
in 1Q20);
→ Digital recharge growing: +35% YoY in 1Q20;
Commercial activities
→ Lower voluntary churn and also fewer gross adds on mobile postpaid;
→ TIM Live with regular commercial activity;
→ ~80% of all stores are opened (since mid-June), but partially operational (limitations in hours
of service and number of clients inside the shops, reduced staff, etc.);
→ B2B services for connectivity and authentication are seeing increased demand;
Bad debt
→ Flattish QoQ in 1Q20;
→ Greater conviction of limited impact until May: collection dynamic has not deteriorated
since April;
Network resilience → Mobile Data +6%, Fixed Data +25%, Mobile Voice +15% (vs. pre-pandemic);
Operating costs
→ Volume driven costs positively impacted;
→ Digital caring going up: +19% YoY in 1Q20 of Meu TIM app unique users;
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Market Evolution
Unfolding the Transformation of Brazilian Market
6
Mobile Spectrum Cap Changes (November).
Integrated Pure
Regional / Niche
ISPs
MVNOs
Selected
broadband
(Mobil
e)
(Pay TV)
Acquired
4-play
(In JR)
First wave of market consolidation: 5 to 4 players
- Nextel acquisition by Claro
(March with deal conclusion in 4Q)
<1 GHz = Coverage
[35%l----l40%]
>1 GHz <3 GHz = Capacity
[30%l----l40%]
3 5 5 1
20 20 20
11 21 185
3 4
5
35 26 29
43
1322 29
25
24
20
21
44
43
20
117
148
177
93
Spectrum Distribution
(Average of MHz / population)
450 MHz
700 MHz
850 MHz
900 MHz
1,800 MHz
2,100 MHz
2,500 MHz
Spectrum
Cap
14 MHz 90 MHz 80 MHz 20 MHz 150 MHz 135 MHz 100 MHz 190 MHz
450 MHz 700 MHz 850 MHz 900 MHz 1,800 MHz 2,100 MHz 2,300 MHz 2,500 MHz
2018
2019
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Market Evolution
Structural Changes Will Unlock Market Value
7
Transformational sharing agreement between TIM
and Vivo.
Two agreements approved by regulators in June 2020
→ 2G network sharing in a Single Grid model
→ 4G/3G network sharing at cities with less than 30 thousand
inhabitants (50 cities to be share as initial effort)
New regulation: PLC 79.
Mobile Spectrum
→ Successive renewals of the authorization (not limited to 2
periods)
→ Possibility of conversion of the renewal fee for investments
→ Radiofrequency transferal between operators (secondary
market)
Due diligence and potential binding
offer for Oi’s mobile assets.
Potential market consolidation:
4 to 3 players
5G Spectrum auction
to occur 2H21 or 2022.
2020
Non-binding offer TIM + Vivo for Oi’s mobile assets:
announced to the market in March.
2021...
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Results Highlights
Solid Finish Last Year and Resilient Start in the Middle of the Pandemic
8
(1) Financial results presented herein consider the impacts from IFRS 9 & 15 adoption, and exclude effects from IFRS 16 adoption;
(2) Normalized EBITDA.
→ Service Revenues: +2.4% YoY
→ TIM Live Revenues: +30.6% YoY
→ EBITDA: +6.7% YoY >> Margin: +1.6 p.p. YoY – highest in TIM’s
history
→ EBITDA - Capex: +15.9% YoY (17% of Net Revenues);
→ Net Debt / EBITDA: 0.07x
→ Fitch assigns initial rating “AAA (bra)”
→ Best 4G / 700 MHz coverage and lowest latency
→ Best Fixed Ultra Broadband Ranked by Estadão
2019 (IFRS 15)
→ Service Revenues: +1.7% YoY
→ TIM Live Revenues: +29.1% YoY
→ EBITDA: +8.0% YoY >> Margin: +3.1 p.p. YoY
→ Growth in all segments’ ARPUs
→ TIM Black Família reaching ~500k clients
→ TIM-Vivo Network Sharing Agreement approval
→ New partnerships: Google Agreement for big data virtualization
and C6 Bank
→ Non-binding interest on Oi mobile assets: advancing with Due
Diligence process
1Q20 (IFRS 16)
Guidance: 2020-2022 Plan (IFRS 16)
→ Plan assumptions (e.g. GDP growth of 2% in 2020) no longer represent current economy situation + The duration of
the pandemic is not known => More clarity on impacts from COVID 19 are expected by the end of 2Q;
→ Commitment to Free Cash Flow:
EBITDA – Capex on Revenues guidance confirmed: >20% in 2020 (Mid-single digit YoY for EBITDA-Capex)
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Strategic Pillars
Consistent Strategy to Address Challenges and Opportunities With the
Pandemic, While Participating in the Creation of a New Mobile Market
EVOLVE TRANSFORM
→ Move from volume to value to sustain mobile business growth
→ Grow on broadband with financial discipline
→ New operating model to address current and future challenges
→ Additional growth through adjacent markets
9
INFRASTRUCTURE
Transformational projects to build the future (e.g. 5G, cloud), improve quality
and reduce cost to serve.
1
DISRUPTIVE EFFICIENCY
Holistic approach to address industry challenges.2
MOBILE
From volume to value.3
ULTRABROADBAND
The lever to accelerate business even further, organically and in partnership.4
NEW REVENUE SOURCES
The IoT, mobile advertising and financial services opportunities.5
ESG
Commitment to a positive transformation improving ESG practices based on
materiality assessment.
6
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Infrastructure
Act Today to Be Ready for the Future
10
IT to the next level in 18-24 months
Benefits:
Big data
evolution
NBA
roll-out
Application and
architecture review
Catalogue
creation
Cognitive
systems
New
capabilities
Customers’
Integrated view
Time-to-
market
Automation of
processes and
efficiency increase
Densification and
innovative solutions
Fixed
Wireless
Access
Convergent
architecture
New IoT
businesses
opportunities
Decommissioning
Savings
Network 5 key pillars
Data
Growth
5G
ready
New
initiatives
IoT
Fixed
Broadband
Evolution Transformation
1
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Infrastructure
4G and Fiber to Improve Quality and Reduce Cost to Serve
11
1
3.272
3.520
>4k
1.426
2.455
2018 2019 2020 2021 2022
Total
700 / 850
MHz
4G COVERAGE (# cities)
76% 75%
92%
2018 2019 2020 2021 2022
4G
2G / 3G
Better indoor
experience.
TRAFFIC MIX EVOLUTION FTTH (# cities)
11
23
~70
2018 2019 2020 2021 2022
BACKBONE + BACKHAUL (‘000 km)
90
101
>130
2018 2019 2020 2021 2022
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Infrastructure
Leveraging on a Robust Infrastructure to Deliver High Quality
Experience
(1) According to Tecnoblog News from 16/Jan.
Urban Population Coverage
(1Q20)
1.3
3.5
2.5
3.6
FTTH FTTC
1Q19
1Q20
Households Covered
(mln)
Backbone + Backhaul
(‘000 Km)
92
102
1Q19 1Q20
Network designed for all types of use, prioritizing
quality and connection stability
100% of 4G coverage in PR,
SC and ES, join SP and RJ.
Better voice quality and network
efficiency during increased demand.
USER
EXPERIENCE
CENTRIC1
Lowest
latency
57ms
Up to 4x speed
required for
video streaming
usage
12.4 mbps download +
5.1 mbps upload
Greatest 4G
availability
86% of time on
4G
Emerging apps are enjoying a
consistent 5-year network evolution.
+11.2%
+95%
4G
94%
3.5k cities
(+6% YoY)
4.5G
68%
1.2k cities
(+47% YoY)
700 MHz
82%
2.4k cities
(+66% YoY)
Refarming
77%
2.5k cities
(+2% YoY)
VoLTE
93%
3.5k cities
(+28% YoY)
NB-IoT
92%
3.3k cities
(all in ≥3Q19)
12
1
Meeting with Investors | June 2020
TIM Participações – Investor Relations
2Disruptive Efficiency
Profitability Approach as a Competitive Advantage
13
→ Bad Debt (e.g. new
credit models, collections
systems improvement)
→ Legal processes (e.g.
predictive models to
reduce JEC expenses -
special court for small
cases)
→ Predictive and
personalized
marketing and sales
→ Low-touch CEX
(optimized digital journey
and self care)
→ Smart and digital
working
→ Administrative
processes (e.g.
Commercial Backoffice,
Anti fraud,
Commissioning &
Payables, Billing &
Collection)
→ Pay-roll management
IT Planning &
Development
→ TIM Live’s
Transformation with
partnership
→ Industrial
agreements (e.g. VIVO
MoU)
→ Cloudification (storage
as commodity)
→ Innovative
Technologies (Massive
MIMO)
Process efficiency Digital & Automation Make vs buy Smart CAPEX
Being competitive: increase
return on investment by
focusing it where we can
apply differentiation.
Productivity: evaluate the
best alternatives to enhance
efficiency and keep focus on
core.
Brazilians are open to a
digital approach: a unique
environment of opportunity.
Gaps as opportunities: close
gaps and surpass the
benchmark.
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Jan-19 May-19 Sep-19 Jan-20
61-90 days 91-120 days
Collection Curve
(% of total billed)
Disruptive Efficiency: Process efficiency and Digital & Automation
Digital Transformation is Helping to Deliver Efficiencies Today and to
Open New Opportunities for Tomorrow
(1) Operating Costs normalized by adjustments to the sale-leaseback contract of towers (+R$ 2.6 million in 1Q20 and +R$ 1.5 million in 1Q19).
→ Volume driven costs positively impacted by social
distance measures
→ Limited exposure to FX volatility: low single digit of our
Opex (ex-COGS)
Bad debt; 189
COGS; 159
Traffic; 627
Process; 251
Personnel;
261 Selling & Mkt;
802
Normalized Opex Breakdown
(R$ mln)
-4.9%
YoY
→ Improved collection curve
reflect a positive trend in
bad debt, which picked up
in 3Q19
→ Opex ex-bad debt would
have decreased 6.0% YoY
+7.1% YoY
+9.3% YoY
-20.1% YoY
-4.7% YoY
-10.2% YoY
+4.7%
YoY
R$ 2,289
+1.9 p.p.
+1.6 p.p.
Digital channels are boosting savings:
+33%
Recharges
via app
39%
Penetration of E-
Recharges
+12%
E-Payment amount
(Penetration of 23%)
+12%
E-Bills
(Penetration of 66%)
-25%
# Human
interactions
+19%
Meu TIM app
unique users
20%
Penetration of
Postpaid E-Sales
+32%
Pure Postpaid
E-Sales
(YoY) (YoY) (YoY)
(YoY) (YoY) (YoY)
2
14
(1Q20)
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Disruptive Efficiency: Smart Capex
Innovative Ways of Capital Allocation to Support New Capabilities
2
15
Google Cloud Agreement
→ Journey to cloud with Big data virtualization
→ Enhanced analytics and machine learning tools
and capabilities
→ Data monetization opportunities
→ Opening future commercial opportunities
Network Sharing Agreement with Vivo
→ Capex and opex saving, as well as better
frequency usage
→ 2 contracts approved by Anatel and CADE
→ 2G switch-off: One of the two operators to switch-
off its 2G network, where both Operators are
currently present (~2,7k cities)
→ Single grid in small cities (<30k inhabitants =
~80% of cities): full approach to consolidate or
expand 4G/3G technologies (50 cities will be
shared as initial effort)
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Playing by opportunity:
meeting clients true
needs.
Increasing “share of
wallet”.
Residual growth: churn
management becomes
more important.
Mobile: From Volume to Value
Sustained Business Growth With Innovation Positioning
16
3
77% 70% 64% 61% 59%
21% 27% 32% 33% 34%
2% 3% 4% 7% 7%
2016 2017 2018 2019 1Q20
Mobile Customer Base Mix
Prepaid Human Postpaid M2M
+1.1 p.p.
YoY
-1.6 p.p.
YoY
49% 42% 34% 31% 30%
45% 52% 59% 61% 63%
6% 6% 7% 8% 7%
2016 2017 2018 2019 1Q20
Mobile Service Revenue Mix
Prepaid Postpaid Other
+1.3 p.p.
YoY
-1.0 p.p.
YoY
Ensuring execution and
customer satisfaction to
succeed.
“
Innovation
Low price
Convergence
2014
2019
2022
P2
P3
P4
Premium price
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Mobile: From Volume to Value
Ongoing Transition, Although Short-Term Headwinds Bringing
Additional Challenges
(1) Ex-M2M.
Actions in accordance
with customers’ historic
commitment avoiding
churn and future costs of
acquisition.
Additional incentives for relationship
maintenance and to encourage digital shift
22,8 23,9
1Q19 1Q20
Total
(R$ / mo)
+4.8%
42,6 44,5
1Q19 1Q20
Human Postpaid1
(R$ / mo)
+4.3%
11,6 12,1
1Q19 1Q20
Prepaid
(R$ / mo)
+4.6%
~500k
2Q19 3Q19 4Q19 1Q20
TIM Black Família Base
(‘000)
Better value proposition and improved
commitment adding more resilience
72%
12%
TOP
Smart
Others
Prepaid Base Mix
-16 p.p.
YoY
7,06
7,157,12
7,31
Offer and
Acquisition
Operation
2018 2019
Anatel’s Satisfaction
Survey (0-10)
Mobile ARPU
3
17
Meeting with Investors | June 2020
TIM Participações – Investor Relations
2018 2019 2020 2021 2022
TIM Live >30%
CAGR 19-22
FIXED NET REVENUES (R$)
4UBB: Even Further Business Acceleration
Broadband Revenues Will Be the Lever for Fixed Business Growth
TIM
Live
Others
FTTx CUSTOMER BASE (mln)
2018 2019 2020 2021 2022
FTTH
FTTC
+15
cities
+42%
households
covered
Expanding TIM Live's services
with the right balance
between Sales and Capex,
unlocking additional value of
this asset
Create in partnership a
neutral fiber infrastructure
asset in Brazil
Market sound process with
an advisor to find the right
partner out of the telecom
space
Smart Capex to Ensure Acceleration
Footprint expansion and operational improvement
Cherry picking deployment, Reduce early churn, Improve care and self-care,
Reliable bill to cash processes
Differentiation: UBB + Content
OTT content friendly approach, Wi-Fi experience
18
From Evolution… … to Transformation
Meeting with Investors | June 2020
TIM Participações – Investor Relations
UBB: Even Further Business Acceleration
TIM Live Consistency: Another Quarter of Strong Delivery
(1) Excludes overlapping areas.
112
144
1Q19 1Q20
KPIs evolution on track
11% 32%
89% 68%
TIM Live Net Revenues
(R$ mln)
79,6
84,5
1Q19 1Q20
ARPU
(R$/mo)
+6.1%
486
584
1Q19 1Q20
+20%
Customer base
(‘000)
11% 32%
89% 68%
≥100 mbps
<100 mbps
+29%
Network rollout increasing potential market
Jan-19 Apr-19 Jul-19 Oct-19 Jan-20
Accumulated New OLTs
(# of units)
• New cluster launched: Betim and
Contagem (MG)
• New portfolio: 200 mbps with
twice the speed and
entertainment content
5 5
12
25
14
27
1Q19 Apr-20
TIM Live Coverage1
(# cities)
+93%
FTTH
FTTC
4
TIM Live Project
Starting first steps to approach
and select partners at the
market: NDAs being signed.
19
~50% of service
revenues growth.
Meeting with Investors | June 2020
TIM Participações – Investor Relations
New Revenue Sources: IoT, Mobile Advertising and Financial Services
Unique Window of Opportunity
(1) Population > 15 years; (2) Population > 10 years. Sources:
GlobalData Market Opportunity Forecasts to 2023: Global IoT; Latin America Digital Ad Spending 2019 eMarketer; Global Findex Database 2017
TIM as
publisher
Exploring
available
touch-points.
TIM as ad tech
player
Leveraging on
customer
knowledge and
ownership.
R$ 24.2 bln
Brazil’s digital ad market in 2022
R$ 19 bln
delivered through mobile
1 2
Mobile Advertising
R$ 190 mln already generated in mobile ads
products with a ~35% upside in 2020.
New trial contracts signed in the past 2 months.
IoT
Develop at scale and monetize IoT
verticals to explore B2B opportunities.
2x connections
reaching 106.3 mln of IoT
devices (19,6% CAGR).
US$~750mln
addressable market
in agriculture
US$~400mln
addressable market
in transport / logistics
Sole operator in the
initiative developing
agribusiness solutions
based on IoT.
First mover: agreement
with car manufacturer to
provide in-car connectivity
and automation.
Connected Car
Latin America IoT Market in 2022
HIGH-END
Convenience and
simplicity.
1
LOW-END
Access to banking
services.
2
→ Symbiotic
partnership (JV like)
→ Value generated by
profit sharing
→ Full bank offer
→ Commercial
partnership
→ Value generated by
commissions in fees +
equity
Mobile Financial Services
First mover in telecom +
digital banking services.
Exclusive agreement
with Bank C6.
Partners short list under
analysis
27%
59%
79%
Credit Card
Ownership
Debit Card
Ownership
Mobile Penetration
1 1
2
Penetration over Brazilian Population
5
20
Meeting with Investors | June 2020
TIM Participações – Investor Relations
New Revenue Sources: IoT, Mobile Advertising and Financial Services
Seeking the Future With Beyond Core Initiatives
5
C6 Partnership
→ First telco-bank partnership to develop joint solutions
→ More for more: increase attractiveness on client
acquisition within a differentiated onboarding experience
→ Offer to be launched later this year
→ Hybrid partnership model combining fees and equity
Financial Services
1Q19 1Q20
Mobile Ad Revenues
(R$ mln)
+73%
Mobile Advertising
TIM Ads trial
campaign for
prepaid customers:
data package
reward for video
view.
21
Meeting with Investors | June 2020
TIM Participações – Investor Relations
1Q20 Financial Summary
Resilient Revenue With Strong EBITDA and Consistent Margin Evolution
(1) Pro-forma excludes the effects of the adoption of IFRS 9, 15 and 16; (2) EBITDA normalized for the effects detailed in slide 12.
1.134
1.022
1Q19 1Q20
27% 24%% Net
Revenues
-9.9%
Normalized EBITDA2 – CAPEX
(R$ mln)
30,2%
32,0%
35,5%
36,5%
37,6%
1Q16 1Q17 1Q18 1Q19 1Q20
+7.5 p.p.
EBITDA Margin (Pro-forma1)
(%)
Reduction explained by lower
Capex level in 1Q19 due to
seasonal fluctuation between
quarters. 1Q20 Capex in
accordance with our plan.
650
904
1Q19 1Q20
+39.1%
17% of
2019 Capex
Net Services Revenues Breakdown
(R$ mln)
4.024
4.091
47 -2
33 -11
1Q19 Mobile Client
Generated
ITX + Other
Mobile
TIM Live Other Fixed 1Q20
+1.7%
Postpaid: +3.7% YoY Prepaid: -4.5% YoY
22
Normalized EBITDA & Margin2
(R$ mln)
1.784
1.926
42,6%
45,7%
1Q19 1Q20
+8.0%
+4.5% ex-
IFRS 16.
Meeting with Investors | June 2020
TIM Participações – Investor Relations
Bank Loans Amortization Schedule
1.104
858
59 1221.630
373
574
574
2.252
Liquidity 2020 2021 2022 2023 foward
1Q20 Financial Summary
Solid Balance Sheet With Robust Liquidity Position
(1) Including net lease additions of R$ 1,340 mln related to the adoption of IFRS 16; (2) Post-hedge position; (3) On pro-forma basis, as of April 2020.
Strong Liquidity with Additional Credit
Lines
February 2020
→ (-) R$ 621 mln (BNDES financing amortization)
with a cost of debt of approx. 7% p.y.
→ (+) R$ 800 mln issued (total amount of two
loans from different banks with a cost of debt of
approx. 4% p.y. each)
April 2020
→ (+) In face of the COVID-19 scenario, R$ 574 mln
was contracted due in April 2021 (cost of debt of
approx. 6% p.y.)
Credit lines available (“Stand-by facilities”)
→ (+) R$ 1.5 bln and R$ 752 mln from BNDES and
BNB, respectively, with no commitment fee
FISTEL + Condecine payments postponement
→ Brazilian Entities authorized the postponement
of the payment of those regulatory taxes
providing an important relieve in the short term:
R$ 789 mln to be paid starting from Aug/2020
2.143
8.013
Cash Position & Amortization Schedule2
(R$ mln)
Net Financial Position1
(R$ mln)
Gross Debt 1Q202
(R$ mln)
Financing
Leases
Cash on
hand 1Q20
Stand-by
facilities
April/20 CF +
Others3
Cost of Debt
4.23% p.y.
7.477
8.526
1Q19 1Q20
Cash raised
(financing)3
23
For further information
Vicente Ferreira
E-mail: vdferreira@timbrasil.com.br
Phone: +55 21 98113-1400
Bernardo Guttmann
E-mail: bguttmann@timbrasil.com.br
Phone: +55 21 98113-1408
Camila Assano
E-mail: cacruz@timbrasil.com.br
Phone: +55 21 98113-4236
Lucas Carneiro
E-mail: lmcarneiro@timbrasil.com.br
Phone: +55 21 98113-1141
Guilherme Kopke
E-mail: gknascimento@timbrasil.com.br
Phone: +55 21 98113-0583
Visit our Website
ri.tim.com.br
E-mail: ri@timbrasil.com.br
850 João Cabral de Melo Neto Avenue
South Tower – 12th floor
Barra da Tijuca – 22775-057 – Rio de Janeiro, RJ

More Related Content

What's hot

liberty global 98D59FD4-AEFE-4E07-94BE-1D6D7EDB882C_Q4_2008_Presentation_FINAL
liberty global 98D59FD4-AEFE-4E07-94BE-1D6D7EDB882C_Q4_2008_Presentation_FINALliberty global 98D59FD4-AEFE-4E07-94BE-1D6D7EDB882C_Q4_2008_Presentation_FINAL
liberty global 98D59FD4-AEFE-4E07-94BE-1D6D7EDB882C_Q4_2008_Presentation_FINALfinance43
 
TMUS Q2 2018 Investor Factbook
TMUS Q2 2018 Investor Factbook TMUS Q2 2018 Investor Factbook
TMUS Q2 2018 Investor Factbook
Cristal Dunkin
 
Mind revenue release-q1-2021
Mind revenue release-q1-2021Mind revenue release-q1-2021
Mind revenue release-q1-2021
MIND CTI
 
Telecom Italia - Annual Report 2014
Telecom Italia - Annual Report 2014Telecom Italia - Annual Report 2014
Telecom Italia - Annual Report 2014
Gruppo TIM
 
2Q 2018 Results
2Q 2018 Results2Q 2018 Results
2Q 2018 Results
Gruppo TIM
 
TIM Group - Sustainability Financing Framework
TIM Group - Sustainability Financing FrameworkTIM Group - Sustainability Financing Framework
TIM Group - Sustainability Financing Framework
Gruppo TIM
 
FiberCop and TIM CPD equity lol
FiberCop and TIM CPD equity lolFiberCop and TIM CPD equity lol
FiberCop and TIM CPD equity lol
Gruppo TIM
 
3Q 2018 Results
3Q 2018 Results3Q 2018 Results
3Q 2018 Results
Gruppo TIM
 
Tim meeting with investors - september
Tim   meeting with investors - septemberTim   meeting with investors - september
Tim meeting with investors - september
TIM RI
 
Tim part results presentation 4 q18
Tim part   results presentation 4 q18Tim part   results presentation 4 q18
Tim part results presentation 4 q18
TIM RI
 
Extraordinary Operation - Sharing for Growth
Extraordinary Operation - Sharing for GrowthExtraordinary Operation - Sharing for Growth
Extraordinary Operation - Sharing for Growth
Gruppo TIM
 
Financial results Q3 2019
Financial results Q3 2019Financial results Q3 2019
Financial results Q3 2019
Gruppo TIM
 
TIM Q2 '21 results
TIM Q2 '21 resultsTIM Q2 '21 results
TIM Q2 '21 results
Gruppo TIM
 
Financial Results for the First Quarter of the Fiscal Year Ending March 2020
Financial Results for the First Quarter of the Fiscal Year Ending March 2020Financial Results for the First Quarter of the Fiscal Year Ending March 2020
Financial Results for the First Quarter of the Fiscal Year Ending March 2020
KDDI
 
TMUS Q3 2017 investor Factbook
TMUS Q3 2017 investor Factbook TMUS Q3 2017 investor Factbook
TMUS Q3 2017 investor Factbook
Cristal Dunkin
 
Q3 2006 Earnings Release
Q3 2006 Earnings ReleaseQ3 2006 Earnings Release
Q3 2006 Earnings Releasefinance7
 
Telecom Italia - Interim Report at March 31, 2013
Telecom Italia - Interim Report at March 31, 2013Telecom Italia - Interim Report at March 31, 2013
Telecom Italia - Interim Report at March 31, 2013
Gruppo TIM
 
Financial Results for the Fiscal Year Ended March 2018
Financial Results for the Fiscal Year Ended March 2018Financial Results for the Fiscal Year Ended March 2018
Financial Results for the Fiscal Year Ended March 2018
KDDI
 
qwest communications 2Q 08 Earnings Release
qwest communications 2Q 08 Earnings Releaseqwest communications 2Q 08 Earnings Release
qwest communications 2Q 08 Earnings Releasefinance19
 
Financial Results for the First Quarter of the Fiscal Year Ending March 2022
Financial Results for the First Quarter of the Fiscal Year Ending March 2022Financial Results for the First Quarter of the Fiscal Year Ending March 2022
Financial Results for the First Quarter of the Fiscal Year Ending March 2022
KDDI
 

What's hot (20)

liberty global 98D59FD4-AEFE-4E07-94BE-1D6D7EDB882C_Q4_2008_Presentation_FINAL
liberty global 98D59FD4-AEFE-4E07-94BE-1D6D7EDB882C_Q4_2008_Presentation_FINALliberty global 98D59FD4-AEFE-4E07-94BE-1D6D7EDB882C_Q4_2008_Presentation_FINAL
liberty global 98D59FD4-AEFE-4E07-94BE-1D6D7EDB882C_Q4_2008_Presentation_FINAL
 
TMUS Q2 2018 Investor Factbook
TMUS Q2 2018 Investor Factbook TMUS Q2 2018 Investor Factbook
TMUS Q2 2018 Investor Factbook
 
Mind revenue release-q1-2021
Mind revenue release-q1-2021Mind revenue release-q1-2021
Mind revenue release-q1-2021
 
Telecom Italia - Annual Report 2014
Telecom Italia - Annual Report 2014Telecom Italia - Annual Report 2014
Telecom Italia - Annual Report 2014
 
2Q 2018 Results
2Q 2018 Results2Q 2018 Results
2Q 2018 Results
 
TIM Group - Sustainability Financing Framework
TIM Group - Sustainability Financing FrameworkTIM Group - Sustainability Financing Framework
TIM Group - Sustainability Financing Framework
 
FiberCop and TIM CPD equity lol
FiberCop and TIM CPD equity lolFiberCop and TIM CPD equity lol
FiberCop and TIM CPD equity lol
 
3Q 2018 Results
3Q 2018 Results3Q 2018 Results
3Q 2018 Results
 
Tim meeting with investors - september
Tim   meeting with investors - septemberTim   meeting with investors - september
Tim meeting with investors - september
 
Tim part results presentation 4 q18
Tim part   results presentation 4 q18Tim part   results presentation 4 q18
Tim part results presentation 4 q18
 
Extraordinary Operation - Sharing for Growth
Extraordinary Operation - Sharing for GrowthExtraordinary Operation - Sharing for Growth
Extraordinary Operation - Sharing for Growth
 
Financial results Q3 2019
Financial results Q3 2019Financial results Q3 2019
Financial results Q3 2019
 
TIM Q2 '21 results
TIM Q2 '21 resultsTIM Q2 '21 results
TIM Q2 '21 results
 
Financial Results for the First Quarter of the Fiscal Year Ending March 2020
Financial Results for the First Quarter of the Fiscal Year Ending March 2020Financial Results for the First Quarter of the Fiscal Year Ending March 2020
Financial Results for the First Quarter of the Fiscal Year Ending March 2020
 
TMUS Q3 2017 investor Factbook
TMUS Q3 2017 investor Factbook TMUS Q3 2017 investor Factbook
TMUS Q3 2017 investor Factbook
 
Q3 2006 Earnings Release
Q3 2006 Earnings ReleaseQ3 2006 Earnings Release
Q3 2006 Earnings Release
 
Telecom Italia - Interim Report at March 31, 2013
Telecom Italia - Interim Report at March 31, 2013Telecom Italia - Interim Report at March 31, 2013
Telecom Italia - Interim Report at March 31, 2013
 
Financial Results for the Fiscal Year Ended March 2018
Financial Results for the Fiscal Year Ended March 2018Financial Results for the Fiscal Year Ended March 2018
Financial Results for the Fiscal Year Ended March 2018
 
qwest communications 2Q 08 Earnings Release
qwest communications 2Q 08 Earnings Releaseqwest communications 2Q 08 Earnings Release
qwest communications 2Q 08 Earnings Release
 
Financial Results for the First Quarter of the Fiscal Year Ending March 2022
Financial Results for the First Quarter of the Fiscal Year Ending March 2022Financial Results for the First Quarter of the Fiscal Year Ending March 2022
Financial Results for the First Quarter of the Fiscal Year Ending March 2022
 

Similar to NDR de Junho de 2020

1Q20 Institutional Presentation
1Q20 Institutional Presentation1Q20 Institutional Presentation
1Q20 Institutional Presentation
TIM RI
 
TIM Part - Intitutional Presentation - 2Q20
TIM Part - Intitutional Presentation - 2Q20TIM Part - Intitutional Presentation - 2Q20
TIM Part - Intitutional Presentation - 2Q20
TIM RI
 
Tim - Meeting with investors, may19
Tim - Meeting with investors, may19Tim - Meeting with investors, may19
Tim - Meeting with investors, may19
TIM RI
 
Tim - Meeting with Investors_May19
Tim - Meeting with Investors_May19Tim - Meeting with Investors_May19
Tim - Meeting with Investors_May19
TIM RI
 
Key Discussions about ‘Taxes’ and ‘IBC’ in Economic Survey
Key Discussions about ‘Taxes’ and ‘IBC’ in Economic SurveyKey Discussions about ‘Taxes’ and ‘IBC’ in Economic Survey
Key Discussions about ‘Taxes’ and ‘IBC’ in Economic Survey
Taxmann
 
TIM Q1'20 financial results
TIM Q1'20 financial resultsTIM Q1'20 financial results
TIM Q1'20 financial results
Gruppo TIM
 
Tim meeting with investors, june 19
Tim   meeting with investors, june 19Tim   meeting with investors, june 19
Tim meeting with investors, june 19
TIM RI
 
FiinPro Digest #3: Covid-19 Pandemic: Assessing the Impacts from Corporate Fi...
FiinPro Digest #3: Covid-19 Pandemic: Assessing the Impacts from Corporate Fi...FiinPro Digest #3: Covid-19 Pandemic: Assessing the Impacts from Corporate Fi...
FiinPro Digest #3: Covid-19 Pandemic: Assessing the Impacts from Corporate Fi...
FiinGroup JSC
 
Financial Results for the Fiscal Year Ended March 2018
Financial Results for the Fiscal Year Ended March 2018Financial Results for the Fiscal Year Ended March 2018
Financial Results for the Fiscal Year Ended March 2018
KDDI
 
Msc impact of-covid-19-on-fintech-and-startups-bangladesh_june
Msc impact of-covid-19-on-fintech-and-startups-bangladesh_juneMsc impact of-covid-19-on-fintech-and-startups-bangladesh_june
Msc impact of-covid-19-on-fintech-and-startups-bangladesh_june
MicrosaveConsulting1
 
GSMA intellegent Guideline.pdf
GSMA intellegent Guideline.pdfGSMA intellegent Guideline.pdf
GSMA intellegent Guideline.pdf
nurhakim58
 
TIM Group Q3 2020 Results
TIM Group Q3 2020 Results TIM Group Q3 2020 Results
TIM Group Q3 2020 Results
Gruppo TIM
 
Summary Spain building automation 2019 report
Summary Spain building automation 2019 reportSummary Spain building automation 2019 report
Summary Spain building automation 2019 report
KONTAGION HUB LIMITED
 
Webinar 21 July 2022.pdf
Webinar 21 July 2022.pdfWebinar 21 July 2022.pdf
Webinar 21 July 2022.pdf
Christoph Stork
 
2017 atento baird global service conference 05.26.2017
2017 atento baird global service conference   05.26.20172017 atento baird global service conference   05.26.2017
2017 atento baird global service conference 05.26.2017
investorsatento
 
Impact of COVID-19 on FinTechs: Senegal
Impact of COVID-19 on FinTechs: SenegalImpact of COVID-19 on FinTechs: Senegal
Impact of COVID-19 on FinTechs: Senegal
MicrosaveConsulting1
 
Union budget 2019-2020
Union budget 2019-2020Union budget 2019-2020
Union budget 2019-2020
Grant Thornton in India
 
KPMG Report 2020- 'A year off script: Time for resilience'
KPMG Report 2020- 'A year off script: Time for resilience'KPMG Report 2020- 'A year off script: Time for resilience'
KPMG Report 2020- 'A year off script: Time for resilience'
Social Samosa
 
CBIZ Manufacturing & Distribution Hot Topics June-July 2020 Newsletter
CBIZ Manufacturing & Distribution Hot Topics June-July 2020 NewsletterCBIZ Manufacturing & Distribution Hot Topics June-July 2020 Newsletter
CBIZ Manufacturing & Distribution Hot Topics June-July 2020 Newsletter
CBIZ, Inc.
 
What Businesses Can Do To Stay Resilient During COVID-19
What Businesses Can Do To Stay Resilient During COVID-19What Businesses Can Do To Stay Resilient During COVID-19
What Businesses Can Do To Stay Resilient During COVID-19
InCorp Global
 

Similar to NDR de Junho de 2020 (20)

1Q20 Institutional Presentation
1Q20 Institutional Presentation1Q20 Institutional Presentation
1Q20 Institutional Presentation
 
TIM Part - Intitutional Presentation - 2Q20
TIM Part - Intitutional Presentation - 2Q20TIM Part - Intitutional Presentation - 2Q20
TIM Part - Intitutional Presentation - 2Q20
 
Tim - Meeting with investors, may19
Tim - Meeting with investors, may19Tim - Meeting with investors, may19
Tim - Meeting with investors, may19
 
Tim - Meeting with Investors_May19
Tim - Meeting with Investors_May19Tim - Meeting with Investors_May19
Tim - Meeting with Investors_May19
 
Key Discussions about ‘Taxes’ and ‘IBC’ in Economic Survey
Key Discussions about ‘Taxes’ and ‘IBC’ in Economic SurveyKey Discussions about ‘Taxes’ and ‘IBC’ in Economic Survey
Key Discussions about ‘Taxes’ and ‘IBC’ in Economic Survey
 
TIM Q1'20 financial results
TIM Q1'20 financial resultsTIM Q1'20 financial results
TIM Q1'20 financial results
 
Tim meeting with investors, june 19
Tim   meeting with investors, june 19Tim   meeting with investors, june 19
Tim meeting with investors, june 19
 
FiinPro Digest #3: Covid-19 Pandemic: Assessing the Impacts from Corporate Fi...
FiinPro Digest #3: Covid-19 Pandemic: Assessing the Impacts from Corporate Fi...FiinPro Digest #3: Covid-19 Pandemic: Assessing the Impacts from Corporate Fi...
FiinPro Digest #3: Covid-19 Pandemic: Assessing the Impacts from Corporate Fi...
 
Financial Results for the Fiscal Year Ended March 2018
Financial Results for the Fiscal Year Ended March 2018Financial Results for the Fiscal Year Ended March 2018
Financial Results for the Fiscal Year Ended March 2018
 
Msc impact of-covid-19-on-fintech-and-startups-bangladesh_june
Msc impact of-covid-19-on-fintech-and-startups-bangladesh_juneMsc impact of-covid-19-on-fintech-and-startups-bangladesh_june
Msc impact of-covid-19-on-fintech-and-startups-bangladesh_june
 
GSMA intellegent Guideline.pdf
GSMA intellegent Guideline.pdfGSMA intellegent Guideline.pdf
GSMA intellegent Guideline.pdf
 
TIM Group Q3 2020 Results
TIM Group Q3 2020 Results TIM Group Q3 2020 Results
TIM Group Q3 2020 Results
 
Summary Spain building automation 2019 report
Summary Spain building automation 2019 reportSummary Spain building automation 2019 report
Summary Spain building automation 2019 report
 
Webinar 21 July 2022.pdf
Webinar 21 July 2022.pdfWebinar 21 July 2022.pdf
Webinar 21 July 2022.pdf
 
2017 atento baird global service conference 05.26.2017
2017 atento baird global service conference   05.26.20172017 atento baird global service conference   05.26.2017
2017 atento baird global service conference 05.26.2017
 
Impact of COVID-19 on FinTechs: Senegal
Impact of COVID-19 on FinTechs: SenegalImpact of COVID-19 on FinTechs: Senegal
Impact of COVID-19 on FinTechs: Senegal
 
Union budget 2019-2020
Union budget 2019-2020Union budget 2019-2020
Union budget 2019-2020
 
KPMG Report 2020- 'A year off script: Time for resilience'
KPMG Report 2020- 'A year off script: Time for resilience'KPMG Report 2020- 'A year off script: Time for resilience'
KPMG Report 2020- 'A year off script: Time for resilience'
 
CBIZ Manufacturing & Distribution Hot Topics June-July 2020 Newsletter
CBIZ Manufacturing & Distribution Hot Topics June-July 2020 NewsletterCBIZ Manufacturing & Distribution Hot Topics June-July 2020 Newsletter
CBIZ Manufacturing & Distribution Hot Topics June-July 2020 Newsletter
 
What Businesses Can Do To Stay Resilient During COVID-19
What Businesses Can Do To Stay Resilient During COVID-19What Businesses Can Do To Stay Resilient During COVID-19
What Businesses Can Do To Stay Resilient During COVID-19
 

More from TIM RI

TIM Part - Apresentação Institucional - 2T20
TIM Part - Apresentação Institucional - 2T20TIM Part - Apresentação Institucional - 2T20
TIM Part - Apresentação Institucional - 2T20
TIM RI
 
TIM - Meeting with Investors, Aug 2020
TIM - Meeting with Investors, Aug 2020TIM - Meeting with Investors, Aug 2020
TIM - Meeting with Investors, Aug 2020
TIM RI
 
Apresentação Institucional 1T20
Apresentação Institucional 1T20Apresentação Institucional 1T20
Apresentação Institucional 1T20
TIM RI
 
4Q19 Institutional Presentation
4Q19 Institutional Presentation4Q19 Institutional Presentation
4Q19 Institutional Presentation
TIM RI
 
Apresentação Institucional 4T19
Apresentação Institucional 4T19Apresentação Institucional 4T19
Apresentação Institucional 4T19
TIM RI
 
Apresentação do Plano Estratégico 2020-2022
Apresentação do Plano Estratégico 2020-2022Apresentação do Plano Estratégico 2020-2022
Apresentação do Plano Estratégico 2020-2022
TIM RI
 
Planejamento Estratégico 2020-2022
Planejamento Estratégico 2020-2022Planejamento Estratégico 2020-2022
Planejamento Estratégico 2020-2022
TIM RI
 
Meeting with Investors, December 2019
Meeting with Investors, December 2019Meeting with Investors, December 2019
Meeting with Investors, December 2019
TIM RI
 
Apresentação Institucional 3T19
Apresentação Institucional 3T19Apresentação Institucional 3T19
Apresentação Institucional 3T19
TIM RI
 
Institutional Presentation 3Q19
Institutional Presentation 3Q19Institutional Presentation 3Q19
Institutional Presentation 3Q19
TIM RI
 
Tim Part's Presentation - CS 2019 TechFin & Telecom Conference
Tim Part's Presentation - CS 2019 TechFin & Telecom ConferenceTim Part's Presentation - CS 2019 TechFin & Telecom Conference
Tim Part's Presentation - CS 2019 TechFin & Telecom Conference
TIM RI
 
TIM Meeting with Investors, November 2019
TIM Meeting with Investors, November 2019TIM Meeting with Investors, November 2019
TIM Meeting with Investors, November 2019
TIM RI
 
Apresentação Institucional TIM - 2T19
Apresentação Institucional TIM - 2T19Apresentação Institucional TIM - 2T19
Apresentação Institucional TIM - 2T19
TIM RI
 
Apresentacao institucional tim 3 t18
Apresentacao institucional tim   3 t18Apresentacao institucional tim   3 t18
Apresentacao institucional tim 3 t18
TIM RI
 
Apresentacao institucional tim 1 t19
Apresentacao institucional tim   1 t19Apresentacao institucional tim   1 t19
Apresentacao institucional tim 1 t19
TIM RI
 
Tim part apresentacao apimec poa 2019 final
Tim part  apresentacao apimec poa 2019  finalTim part  apresentacao apimec poa 2019  final
Tim part apresentacao apimec poa 2019 final
TIM RI
 
Meeting with investors (April 2019)
Meeting with investors (April 2019)Meeting with investors (April 2019)
Meeting with investors (April 2019)
TIM RI
 
Encontro com Investidores de Abril de 2019 (disponível apenas em Inglês)
Encontro com Investidores de Abril de 2019 (disponível apenas em Inglês)Encontro com Investidores de Abril de 2019 (disponível apenas em Inglês)
Encontro com Investidores de Abril de 2019 (disponível apenas em Inglês)
TIM RI
 
Tim meeting with investors march 2019
Tim   meeting with investors march 2019Tim   meeting with investors march 2019
Tim meeting with investors march 2019
TIM RI
 
Tim Brasil Day - Plano Estratégico
Tim Brasil Day - Plano EstratégicoTim Brasil Day - Plano Estratégico
Tim Brasil Day - Plano Estratégico
TIM RI
 

More from TIM RI (20)

TIM Part - Apresentação Institucional - 2T20
TIM Part - Apresentação Institucional - 2T20TIM Part - Apresentação Institucional - 2T20
TIM Part - Apresentação Institucional - 2T20
 
TIM - Meeting with Investors, Aug 2020
TIM - Meeting with Investors, Aug 2020TIM - Meeting with Investors, Aug 2020
TIM - Meeting with Investors, Aug 2020
 
Apresentação Institucional 1T20
Apresentação Institucional 1T20Apresentação Institucional 1T20
Apresentação Institucional 1T20
 
4Q19 Institutional Presentation
4Q19 Institutional Presentation4Q19 Institutional Presentation
4Q19 Institutional Presentation
 
Apresentação Institucional 4T19
Apresentação Institucional 4T19Apresentação Institucional 4T19
Apresentação Institucional 4T19
 
Apresentação do Plano Estratégico 2020-2022
Apresentação do Plano Estratégico 2020-2022Apresentação do Plano Estratégico 2020-2022
Apresentação do Plano Estratégico 2020-2022
 
Planejamento Estratégico 2020-2022
Planejamento Estratégico 2020-2022Planejamento Estratégico 2020-2022
Planejamento Estratégico 2020-2022
 
Meeting with Investors, December 2019
Meeting with Investors, December 2019Meeting with Investors, December 2019
Meeting with Investors, December 2019
 
Apresentação Institucional 3T19
Apresentação Institucional 3T19Apresentação Institucional 3T19
Apresentação Institucional 3T19
 
Institutional Presentation 3Q19
Institutional Presentation 3Q19Institutional Presentation 3Q19
Institutional Presentation 3Q19
 
Tim Part's Presentation - CS 2019 TechFin & Telecom Conference
Tim Part's Presentation - CS 2019 TechFin & Telecom ConferenceTim Part's Presentation - CS 2019 TechFin & Telecom Conference
Tim Part's Presentation - CS 2019 TechFin & Telecom Conference
 
TIM Meeting with Investors, November 2019
TIM Meeting with Investors, November 2019TIM Meeting with Investors, November 2019
TIM Meeting with Investors, November 2019
 
Apresentação Institucional TIM - 2T19
Apresentação Institucional TIM - 2T19Apresentação Institucional TIM - 2T19
Apresentação Institucional TIM - 2T19
 
Apresentacao institucional tim 3 t18
Apresentacao institucional tim   3 t18Apresentacao institucional tim   3 t18
Apresentacao institucional tim 3 t18
 
Apresentacao institucional tim 1 t19
Apresentacao institucional tim   1 t19Apresentacao institucional tim   1 t19
Apresentacao institucional tim 1 t19
 
Tim part apresentacao apimec poa 2019 final
Tim part  apresentacao apimec poa 2019  finalTim part  apresentacao apimec poa 2019  final
Tim part apresentacao apimec poa 2019 final
 
Meeting with investors (April 2019)
Meeting with investors (April 2019)Meeting with investors (April 2019)
Meeting with investors (April 2019)
 
Encontro com Investidores de Abril de 2019 (disponível apenas em Inglês)
Encontro com Investidores de Abril de 2019 (disponível apenas em Inglês)Encontro com Investidores de Abril de 2019 (disponível apenas em Inglês)
Encontro com Investidores de Abril de 2019 (disponível apenas em Inglês)
 
Tim meeting with investors march 2019
Tim   meeting with investors march 2019Tim   meeting with investors march 2019
Tim meeting with investors march 2019
 
Tim Brasil Day - Plano Estratégico
Tim Brasil Day - Plano EstratégicoTim Brasil Day - Plano Estratégico
Tim Brasil Day - Plano Estratégico
 

Recently uploaded

Osisko Development - Investor Presentation - June 24
Osisko Development - Investor Presentation - June 24Osisko Development - Investor Presentation - June 24
Osisko Development - Investor Presentation - June 24
Philip Rabenok
 
Snam 2023-27 Industrial Plan - Financial Presentation
Snam 2023-27 Industrial Plan - Financial PresentationSnam 2023-27 Industrial Plan - Financial Presentation
Snam 2023-27 Industrial Plan - Financial Presentation
Valentina Ottini
 
New Tax Regime User Guide Flexi Plan Revised (1).pptx
New Tax Regime User Guide Flexi Plan Revised (1).pptxNew Tax Regime User Guide Flexi Plan Revised (1).pptx
New Tax Regime User Guide Flexi Plan Revised (1).pptx
RajkumarRajamanikam
 
Corporate Presentation Probe June 2024.pdf
Corporate Presentation Probe June 2024.pdfCorporate Presentation Probe June 2024.pdf
Corporate Presentation Probe June 2024.pdf
Probe Gold
 
cyberagent_For New Investors_EN_240424.pdf
cyberagent_For New Investors_EN_240424.pdfcyberagent_For New Investors_EN_240424.pdf
cyberagent_For New Investors_EN_240424.pdf
CyberAgent, Inc.
 
Investor Day 2024 Presentation Sysco 2024
Investor Day 2024 Presentation Sysco 2024Investor Day 2024 Presentation Sysco 2024
Investor Day 2024 Presentation Sysco 2024
Sysco_Investors
 
Collective Mining | Corporate Presentation - May 2024
Collective Mining | Corporate Presentation - May 2024Collective Mining | Corporate Presentation - May 2024
Collective Mining | Corporate Presentation - May 2024
CollectiveMining1
 
Collective Mining | Corporate Presentation - May 2024
Collective Mining | Corporate Presentation - May 2024Collective Mining | Corporate Presentation - May 2024
Collective Mining | Corporate Presentation - May 2024
CollectiveMining1
 

Recently uploaded (8)

Osisko Development - Investor Presentation - June 24
Osisko Development - Investor Presentation - June 24Osisko Development - Investor Presentation - June 24
Osisko Development - Investor Presentation - June 24
 
Snam 2023-27 Industrial Plan - Financial Presentation
Snam 2023-27 Industrial Plan - Financial PresentationSnam 2023-27 Industrial Plan - Financial Presentation
Snam 2023-27 Industrial Plan - Financial Presentation
 
New Tax Regime User Guide Flexi Plan Revised (1).pptx
New Tax Regime User Guide Flexi Plan Revised (1).pptxNew Tax Regime User Guide Flexi Plan Revised (1).pptx
New Tax Regime User Guide Flexi Plan Revised (1).pptx
 
Corporate Presentation Probe June 2024.pdf
Corporate Presentation Probe June 2024.pdfCorporate Presentation Probe June 2024.pdf
Corporate Presentation Probe June 2024.pdf
 
cyberagent_For New Investors_EN_240424.pdf
cyberagent_For New Investors_EN_240424.pdfcyberagent_For New Investors_EN_240424.pdf
cyberagent_For New Investors_EN_240424.pdf
 
Investor Day 2024 Presentation Sysco 2024
Investor Day 2024 Presentation Sysco 2024Investor Day 2024 Presentation Sysco 2024
Investor Day 2024 Presentation Sysco 2024
 
Collective Mining | Corporate Presentation - May 2024
Collective Mining | Corporate Presentation - May 2024Collective Mining | Corporate Presentation - May 2024
Collective Mining | Corporate Presentation - May 2024
 
Collective Mining | Corporate Presentation - May 2024
Collective Mining | Corporate Presentation - May 2024Collective Mining | Corporate Presentation - May 2024
Collective Mining | Corporate Presentation - May 2024
 

NDR de Junho de 2020

  • 2. Meeting with Investors | June 2020 TIM Participações – Investor Relations Disclaimer This presentation contains declarations that constitute forward looking statements regarding the intent, belief or current expectations of the customer base, estimates regarding future financial results and other aspects of the activities. Analysts and investors are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this presentation. TIM Part undertakes no obligation to release publicly the results of any revisions to these forward looking statements. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected as a result of various factors. Financial results are presented considering impacts from IFRS 16 adoption, except otherwise indicated. 2
  • 3. Meeting with Investors | June 2020 TIM Participações – Investor Relations COVID-19 Outbreak in Brazil: Gradual Reopening After Significant Impacts 3 (1) Covid.saude.gov.br; (2) Community Mobility Reports as of 5th of June (3) “Focus” Readout from Brazilian Central Bank as of June 5th, 2020; (4) FGV’s Consumer Confidence Index showed the lowest level of the 15-year historical series in April: 58,2 on a scale of 0-200 (-22 p.p. MoM); (5) Data from the Monthly Survey of Industry (“PIM”) reported by IBGE in June 9th, 2020; (6) ICVA (“Índice Cielo do Varejo Ampliado”) from March 1st to April 11th. Major cities gradually reopening: Rio de Janeiro and São Paulo started in early June South and Mid-west of the country are ahead in the reopening process: mobility restriction peaked between April and beginning of May in these states SOCIAL & HEALTH IMPACTS Measures were implemented on a regional basis without a central coordination by the federal government. Social distancing measures started in March 17th. According to Google Mobility metrics, Brazil’s quarantine led to moderate mobility restriction2 Average mobility (Feb-May) vs base line ECONOMIC IMPACTS GDP 2020 forecasts dropping from 2.0% in the begging of the year to -6.5% in early June3. Consumer confidence at its lowest in April4 Industrial production fell ~19% from March to April5 28% drop in retail sales from March to April6 GOVERNMENT MEASURES AND ACTIONS → 6% of GDP in relief programs for workers, families and businesses → Informal workers’ assistance checks of R$600 for 3 months → Payroll financing for companies of all sizes → Expansion of Bolsa Familia cash transfer program to additional 1.5 mln families → ~R$ 100 bln in postponement and reduction of federal taxes → R$ 16 bln in credit lines for micro and small companies → R$60 bln in fiscal aid packages for states and municipalities Confirmed cases: 1,106,470 Confirmed Deaths: 51,271 Recovered cases: 571,649 (as of June 22nd)1 -41%+12%-35%-9%-38%-21% Retail & Recreation ResidentialGroceries & Pharmacy Parks Transit Stations Workplaces
  • 4. Meeting with Investors | June 2020 TIM Participações – Investor Relations Quick Response to Care for our People, Clients and Society EMPLOYEES CUSTOMERS SOCIETY Social isolation, people management, and maintenance of work conditions Service guarantee and maintenance of customer relationship, prioritizing digital Supporting the fight against COVID-19 99.9% of employees on remote work since Mar 20 100% of stores closed from Mar 31 to early June 1st to convert internal call center to remote work Big Data and Analytics → First mover with city of Rio de Janeiro partnership → First joint effort between the 4 operators as data providers for the market Sectorial agreement with OTTs to guarantee service availability Network Adjustments Strengthening coverage in residential, hospitals and health institutions areas 1 Digital First Reinforcing e-Sales & e-Caring channels: Meu TIM, Cognitive IVR and digital service channels such as SMS, Chat TIM, WhatsApp, and digital recharges 2 Maintaining the Relationship → More service in exchange for customer engagement continuity → Temporary adjustments to collection rules and payment terms 3 Service prioritization to support the fight – the “Caixa Econômica Federal” case → 48h for a service implementation (111 code) vs 30 days usually → Quick response to apply zero rating to “Auxílio Emergencial” app (government aid claims) 4 Preserving Jobs → Collective Labor Agreement to support contingency measures in alignment with MP 936 → ~2.5k employees under temporary salary and work reduction: ensured net income with 7% back to activities
  • 5. Meeting with Investors | June 2020 TIM Participações – Investor Relations Mixed Impacts Coming From the Pandemic. So Far, Negative Effects Were Mostly Concentrated in Prepaid, While Postpaid and Live Are Controlled 5 Areas of concern Impacts Prepaid Recharges → Recharges dropped -25% in the early days of the of the isolation and decelerate to mid-teen drop in early May; → Revenue mix shift helped reduce the size of the impact (from 45% in 1Q17 to 30% of prepaid in 1Q20); → Digital recharge growing: +35% YoY in 1Q20; Commercial activities → Lower voluntary churn and also fewer gross adds on mobile postpaid; → TIM Live with regular commercial activity; → ~80% of all stores are opened (since mid-June), but partially operational (limitations in hours of service and number of clients inside the shops, reduced staff, etc.); → B2B services for connectivity and authentication are seeing increased demand; Bad debt → Flattish QoQ in 1Q20; → Greater conviction of limited impact until May: collection dynamic has not deteriorated since April; Network resilience → Mobile Data +6%, Fixed Data +25%, Mobile Voice +15% (vs. pre-pandemic); Operating costs → Volume driven costs positively impacted; → Digital caring going up: +19% YoY in 1Q20 of Meu TIM app unique users;
  • 6. Meeting with Investors | June 2020 TIM Participações – Investor Relations Market Evolution Unfolding the Transformation of Brazilian Market 6 Mobile Spectrum Cap Changes (November). Integrated Pure Regional / Niche ISPs MVNOs Selected broadband (Mobil e) (Pay TV) Acquired 4-play (In JR) First wave of market consolidation: 5 to 4 players - Nextel acquisition by Claro (March with deal conclusion in 4Q) <1 GHz = Coverage [35%l----l40%] >1 GHz <3 GHz = Capacity [30%l----l40%] 3 5 5 1 20 20 20 11 21 185 3 4 5 35 26 29 43 1322 29 25 24 20 21 44 43 20 117 148 177 93 Spectrum Distribution (Average of MHz / population) 450 MHz 700 MHz 850 MHz 900 MHz 1,800 MHz 2,100 MHz 2,500 MHz Spectrum Cap 14 MHz 90 MHz 80 MHz 20 MHz 150 MHz 135 MHz 100 MHz 190 MHz 450 MHz 700 MHz 850 MHz 900 MHz 1,800 MHz 2,100 MHz 2,300 MHz 2,500 MHz 2018 2019
  • 7. Meeting with Investors | June 2020 TIM Participações – Investor Relations Market Evolution Structural Changes Will Unlock Market Value 7 Transformational sharing agreement between TIM and Vivo. Two agreements approved by regulators in June 2020 → 2G network sharing in a Single Grid model → 4G/3G network sharing at cities with less than 30 thousand inhabitants (50 cities to be share as initial effort) New regulation: PLC 79. Mobile Spectrum → Successive renewals of the authorization (not limited to 2 periods) → Possibility of conversion of the renewal fee for investments → Radiofrequency transferal between operators (secondary market) Due diligence and potential binding offer for Oi’s mobile assets. Potential market consolidation: 4 to 3 players 5G Spectrum auction to occur 2H21 or 2022. 2020 Non-binding offer TIM + Vivo for Oi’s mobile assets: announced to the market in March. 2021...
  • 8. Meeting with Investors | June 2020 TIM Participações – Investor Relations Results Highlights Solid Finish Last Year and Resilient Start in the Middle of the Pandemic 8 (1) Financial results presented herein consider the impacts from IFRS 9 & 15 adoption, and exclude effects from IFRS 16 adoption; (2) Normalized EBITDA. → Service Revenues: +2.4% YoY → TIM Live Revenues: +30.6% YoY → EBITDA: +6.7% YoY >> Margin: +1.6 p.p. YoY – highest in TIM’s history → EBITDA - Capex: +15.9% YoY (17% of Net Revenues); → Net Debt / EBITDA: 0.07x → Fitch assigns initial rating “AAA (bra)” → Best 4G / 700 MHz coverage and lowest latency → Best Fixed Ultra Broadband Ranked by Estadão 2019 (IFRS 15) → Service Revenues: +1.7% YoY → TIM Live Revenues: +29.1% YoY → EBITDA: +8.0% YoY >> Margin: +3.1 p.p. YoY → Growth in all segments’ ARPUs → TIM Black Família reaching ~500k clients → TIM-Vivo Network Sharing Agreement approval → New partnerships: Google Agreement for big data virtualization and C6 Bank → Non-binding interest on Oi mobile assets: advancing with Due Diligence process 1Q20 (IFRS 16) Guidance: 2020-2022 Plan (IFRS 16) → Plan assumptions (e.g. GDP growth of 2% in 2020) no longer represent current economy situation + The duration of the pandemic is not known => More clarity on impacts from COVID 19 are expected by the end of 2Q; → Commitment to Free Cash Flow: EBITDA – Capex on Revenues guidance confirmed: >20% in 2020 (Mid-single digit YoY for EBITDA-Capex)
  • 9. Meeting with Investors | June 2020 TIM Participações – Investor Relations Strategic Pillars Consistent Strategy to Address Challenges and Opportunities With the Pandemic, While Participating in the Creation of a New Mobile Market EVOLVE TRANSFORM → Move from volume to value to sustain mobile business growth → Grow on broadband with financial discipline → New operating model to address current and future challenges → Additional growth through adjacent markets 9 INFRASTRUCTURE Transformational projects to build the future (e.g. 5G, cloud), improve quality and reduce cost to serve. 1 DISRUPTIVE EFFICIENCY Holistic approach to address industry challenges.2 MOBILE From volume to value.3 ULTRABROADBAND The lever to accelerate business even further, organically and in partnership.4 NEW REVENUE SOURCES The IoT, mobile advertising and financial services opportunities.5 ESG Commitment to a positive transformation improving ESG practices based on materiality assessment. 6
  • 10. Meeting with Investors | June 2020 TIM Participações – Investor Relations Infrastructure Act Today to Be Ready for the Future 10 IT to the next level in 18-24 months Benefits: Big data evolution NBA roll-out Application and architecture review Catalogue creation Cognitive systems New capabilities Customers’ Integrated view Time-to- market Automation of processes and efficiency increase Densification and innovative solutions Fixed Wireless Access Convergent architecture New IoT businesses opportunities Decommissioning Savings Network 5 key pillars Data Growth 5G ready New initiatives IoT Fixed Broadband Evolution Transformation 1
  • 11. Meeting with Investors | June 2020 TIM Participações – Investor Relations Infrastructure 4G and Fiber to Improve Quality and Reduce Cost to Serve 11 1 3.272 3.520 >4k 1.426 2.455 2018 2019 2020 2021 2022 Total 700 / 850 MHz 4G COVERAGE (# cities) 76% 75% 92% 2018 2019 2020 2021 2022 4G 2G / 3G Better indoor experience. TRAFFIC MIX EVOLUTION FTTH (# cities) 11 23 ~70 2018 2019 2020 2021 2022 BACKBONE + BACKHAUL (‘000 km) 90 101 >130 2018 2019 2020 2021 2022
  • 12. Meeting with Investors | June 2020 TIM Participações – Investor Relations Infrastructure Leveraging on a Robust Infrastructure to Deliver High Quality Experience (1) According to Tecnoblog News from 16/Jan. Urban Population Coverage (1Q20) 1.3 3.5 2.5 3.6 FTTH FTTC 1Q19 1Q20 Households Covered (mln) Backbone + Backhaul (‘000 Km) 92 102 1Q19 1Q20 Network designed for all types of use, prioritizing quality and connection stability 100% of 4G coverage in PR, SC and ES, join SP and RJ. Better voice quality and network efficiency during increased demand. USER EXPERIENCE CENTRIC1 Lowest latency 57ms Up to 4x speed required for video streaming usage 12.4 mbps download + 5.1 mbps upload Greatest 4G availability 86% of time on 4G Emerging apps are enjoying a consistent 5-year network evolution. +11.2% +95% 4G 94% 3.5k cities (+6% YoY) 4.5G 68% 1.2k cities (+47% YoY) 700 MHz 82% 2.4k cities (+66% YoY) Refarming 77% 2.5k cities (+2% YoY) VoLTE 93% 3.5k cities (+28% YoY) NB-IoT 92% 3.3k cities (all in ≥3Q19) 12 1
  • 13. Meeting with Investors | June 2020 TIM Participações – Investor Relations 2Disruptive Efficiency Profitability Approach as a Competitive Advantage 13 → Bad Debt (e.g. new credit models, collections systems improvement) → Legal processes (e.g. predictive models to reduce JEC expenses - special court for small cases) → Predictive and personalized marketing and sales → Low-touch CEX (optimized digital journey and self care) → Smart and digital working → Administrative processes (e.g. Commercial Backoffice, Anti fraud, Commissioning & Payables, Billing & Collection) → Pay-roll management IT Planning & Development → TIM Live’s Transformation with partnership → Industrial agreements (e.g. VIVO MoU) → Cloudification (storage as commodity) → Innovative Technologies (Massive MIMO) Process efficiency Digital & Automation Make vs buy Smart CAPEX Being competitive: increase return on investment by focusing it where we can apply differentiation. Productivity: evaluate the best alternatives to enhance efficiency and keep focus on core. Brazilians are open to a digital approach: a unique environment of opportunity. Gaps as opportunities: close gaps and surpass the benchmark.
  • 14. Meeting with Investors | June 2020 TIM Participações – Investor Relations Jan-19 May-19 Sep-19 Jan-20 61-90 days 91-120 days Collection Curve (% of total billed) Disruptive Efficiency: Process efficiency and Digital & Automation Digital Transformation is Helping to Deliver Efficiencies Today and to Open New Opportunities for Tomorrow (1) Operating Costs normalized by adjustments to the sale-leaseback contract of towers (+R$ 2.6 million in 1Q20 and +R$ 1.5 million in 1Q19). → Volume driven costs positively impacted by social distance measures → Limited exposure to FX volatility: low single digit of our Opex (ex-COGS) Bad debt; 189 COGS; 159 Traffic; 627 Process; 251 Personnel; 261 Selling & Mkt; 802 Normalized Opex Breakdown (R$ mln) -4.9% YoY → Improved collection curve reflect a positive trend in bad debt, which picked up in 3Q19 → Opex ex-bad debt would have decreased 6.0% YoY +7.1% YoY +9.3% YoY -20.1% YoY -4.7% YoY -10.2% YoY +4.7% YoY R$ 2,289 +1.9 p.p. +1.6 p.p. Digital channels are boosting savings: +33% Recharges via app 39% Penetration of E- Recharges +12% E-Payment amount (Penetration of 23%) +12% E-Bills (Penetration of 66%) -25% # Human interactions +19% Meu TIM app unique users 20% Penetration of Postpaid E-Sales +32% Pure Postpaid E-Sales (YoY) (YoY) (YoY) (YoY) (YoY) (YoY) 2 14 (1Q20)
  • 15. Meeting with Investors | June 2020 TIM Participações – Investor Relations Disruptive Efficiency: Smart Capex Innovative Ways of Capital Allocation to Support New Capabilities 2 15 Google Cloud Agreement → Journey to cloud with Big data virtualization → Enhanced analytics and machine learning tools and capabilities → Data monetization opportunities → Opening future commercial opportunities Network Sharing Agreement with Vivo → Capex and opex saving, as well as better frequency usage → 2 contracts approved by Anatel and CADE → 2G switch-off: One of the two operators to switch- off its 2G network, where both Operators are currently present (~2,7k cities) → Single grid in small cities (<30k inhabitants = ~80% of cities): full approach to consolidate or expand 4G/3G technologies (50 cities will be shared as initial effort)
  • 16. Meeting with Investors | June 2020 TIM Participações – Investor Relations Playing by opportunity: meeting clients true needs. Increasing “share of wallet”. Residual growth: churn management becomes more important. Mobile: From Volume to Value Sustained Business Growth With Innovation Positioning 16 3 77% 70% 64% 61% 59% 21% 27% 32% 33% 34% 2% 3% 4% 7% 7% 2016 2017 2018 2019 1Q20 Mobile Customer Base Mix Prepaid Human Postpaid M2M +1.1 p.p. YoY -1.6 p.p. YoY 49% 42% 34% 31% 30% 45% 52% 59% 61% 63% 6% 6% 7% 8% 7% 2016 2017 2018 2019 1Q20 Mobile Service Revenue Mix Prepaid Postpaid Other +1.3 p.p. YoY -1.0 p.p. YoY Ensuring execution and customer satisfaction to succeed. “ Innovation Low price Convergence 2014 2019 2022 P2 P3 P4 Premium price
  • 17. Meeting with Investors | June 2020 TIM Participações – Investor Relations Mobile: From Volume to Value Ongoing Transition, Although Short-Term Headwinds Bringing Additional Challenges (1) Ex-M2M. Actions in accordance with customers’ historic commitment avoiding churn and future costs of acquisition. Additional incentives for relationship maintenance and to encourage digital shift 22,8 23,9 1Q19 1Q20 Total (R$ / mo) +4.8% 42,6 44,5 1Q19 1Q20 Human Postpaid1 (R$ / mo) +4.3% 11,6 12,1 1Q19 1Q20 Prepaid (R$ / mo) +4.6% ~500k 2Q19 3Q19 4Q19 1Q20 TIM Black Família Base (‘000) Better value proposition and improved commitment adding more resilience 72% 12% TOP Smart Others Prepaid Base Mix -16 p.p. YoY 7,06 7,157,12 7,31 Offer and Acquisition Operation 2018 2019 Anatel’s Satisfaction Survey (0-10) Mobile ARPU 3 17
  • 18. Meeting with Investors | June 2020 TIM Participações – Investor Relations 2018 2019 2020 2021 2022 TIM Live >30% CAGR 19-22 FIXED NET REVENUES (R$) 4UBB: Even Further Business Acceleration Broadband Revenues Will Be the Lever for Fixed Business Growth TIM Live Others FTTx CUSTOMER BASE (mln) 2018 2019 2020 2021 2022 FTTH FTTC +15 cities +42% households covered Expanding TIM Live's services with the right balance between Sales and Capex, unlocking additional value of this asset Create in partnership a neutral fiber infrastructure asset in Brazil Market sound process with an advisor to find the right partner out of the telecom space Smart Capex to Ensure Acceleration Footprint expansion and operational improvement Cherry picking deployment, Reduce early churn, Improve care and self-care, Reliable bill to cash processes Differentiation: UBB + Content OTT content friendly approach, Wi-Fi experience 18 From Evolution… … to Transformation
  • 19. Meeting with Investors | June 2020 TIM Participações – Investor Relations UBB: Even Further Business Acceleration TIM Live Consistency: Another Quarter of Strong Delivery (1) Excludes overlapping areas. 112 144 1Q19 1Q20 KPIs evolution on track 11% 32% 89% 68% TIM Live Net Revenues (R$ mln) 79,6 84,5 1Q19 1Q20 ARPU (R$/mo) +6.1% 486 584 1Q19 1Q20 +20% Customer base (‘000) 11% 32% 89% 68% ≥100 mbps <100 mbps +29% Network rollout increasing potential market Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Accumulated New OLTs (# of units) • New cluster launched: Betim and Contagem (MG) • New portfolio: 200 mbps with twice the speed and entertainment content 5 5 12 25 14 27 1Q19 Apr-20 TIM Live Coverage1 (# cities) +93% FTTH FTTC 4 TIM Live Project Starting first steps to approach and select partners at the market: NDAs being signed. 19 ~50% of service revenues growth.
  • 20. Meeting with Investors | June 2020 TIM Participações – Investor Relations New Revenue Sources: IoT, Mobile Advertising and Financial Services Unique Window of Opportunity (1) Population > 15 years; (2) Population > 10 years. Sources: GlobalData Market Opportunity Forecasts to 2023: Global IoT; Latin America Digital Ad Spending 2019 eMarketer; Global Findex Database 2017 TIM as publisher Exploring available touch-points. TIM as ad tech player Leveraging on customer knowledge and ownership. R$ 24.2 bln Brazil’s digital ad market in 2022 R$ 19 bln delivered through mobile 1 2 Mobile Advertising R$ 190 mln already generated in mobile ads products with a ~35% upside in 2020. New trial contracts signed in the past 2 months. IoT Develop at scale and monetize IoT verticals to explore B2B opportunities. 2x connections reaching 106.3 mln of IoT devices (19,6% CAGR). US$~750mln addressable market in agriculture US$~400mln addressable market in transport / logistics Sole operator in the initiative developing agribusiness solutions based on IoT. First mover: agreement with car manufacturer to provide in-car connectivity and automation. Connected Car Latin America IoT Market in 2022 HIGH-END Convenience and simplicity. 1 LOW-END Access to banking services. 2 → Symbiotic partnership (JV like) → Value generated by profit sharing → Full bank offer → Commercial partnership → Value generated by commissions in fees + equity Mobile Financial Services First mover in telecom + digital banking services. Exclusive agreement with Bank C6. Partners short list under analysis 27% 59% 79% Credit Card Ownership Debit Card Ownership Mobile Penetration 1 1 2 Penetration over Brazilian Population 5 20
  • 21. Meeting with Investors | June 2020 TIM Participações – Investor Relations New Revenue Sources: IoT, Mobile Advertising and Financial Services Seeking the Future With Beyond Core Initiatives 5 C6 Partnership → First telco-bank partnership to develop joint solutions → More for more: increase attractiveness on client acquisition within a differentiated onboarding experience → Offer to be launched later this year → Hybrid partnership model combining fees and equity Financial Services 1Q19 1Q20 Mobile Ad Revenues (R$ mln) +73% Mobile Advertising TIM Ads trial campaign for prepaid customers: data package reward for video view. 21
  • 22. Meeting with Investors | June 2020 TIM Participações – Investor Relations 1Q20 Financial Summary Resilient Revenue With Strong EBITDA and Consistent Margin Evolution (1) Pro-forma excludes the effects of the adoption of IFRS 9, 15 and 16; (2) EBITDA normalized for the effects detailed in slide 12. 1.134 1.022 1Q19 1Q20 27% 24%% Net Revenues -9.9% Normalized EBITDA2 – CAPEX (R$ mln) 30,2% 32,0% 35,5% 36,5% 37,6% 1Q16 1Q17 1Q18 1Q19 1Q20 +7.5 p.p. EBITDA Margin (Pro-forma1) (%) Reduction explained by lower Capex level in 1Q19 due to seasonal fluctuation between quarters. 1Q20 Capex in accordance with our plan. 650 904 1Q19 1Q20 +39.1% 17% of 2019 Capex Net Services Revenues Breakdown (R$ mln) 4.024 4.091 47 -2 33 -11 1Q19 Mobile Client Generated ITX + Other Mobile TIM Live Other Fixed 1Q20 +1.7% Postpaid: +3.7% YoY Prepaid: -4.5% YoY 22 Normalized EBITDA & Margin2 (R$ mln) 1.784 1.926 42,6% 45,7% 1Q19 1Q20 +8.0% +4.5% ex- IFRS 16.
  • 23. Meeting with Investors | June 2020 TIM Participações – Investor Relations Bank Loans Amortization Schedule 1.104 858 59 1221.630 373 574 574 2.252 Liquidity 2020 2021 2022 2023 foward 1Q20 Financial Summary Solid Balance Sheet With Robust Liquidity Position (1) Including net lease additions of R$ 1,340 mln related to the adoption of IFRS 16; (2) Post-hedge position; (3) On pro-forma basis, as of April 2020. Strong Liquidity with Additional Credit Lines February 2020 → (-) R$ 621 mln (BNDES financing amortization) with a cost of debt of approx. 7% p.y. → (+) R$ 800 mln issued (total amount of two loans from different banks with a cost of debt of approx. 4% p.y. each) April 2020 → (+) In face of the COVID-19 scenario, R$ 574 mln was contracted due in April 2021 (cost of debt of approx. 6% p.y.) Credit lines available (“Stand-by facilities”) → (+) R$ 1.5 bln and R$ 752 mln from BNDES and BNB, respectively, with no commitment fee FISTEL + Condecine payments postponement → Brazilian Entities authorized the postponement of the payment of those regulatory taxes providing an important relieve in the short term: R$ 789 mln to be paid starting from Aug/2020 2.143 8.013 Cash Position & Amortization Schedule2 (R$ mln) Net Financial Position1 (R$ mln) Gross Debt 1Q202 (R$ mln) Financing Leases Cash on hand 1Q20 Stand-by facilities April/20 CF + Others3 Cost of Debt 4.23% p.y. 7.477 8.526 1Q19 1Q20 Cash raised (financing)3 23
  • 24. For further information Vicente Ferreira E-mail: vdferreira@timbrasil.com.br Phone: +55 21 98113-1400 Bernardo Guttmann E-mail: bguttmann@timbrasil.com.br Phone: +55 21 98113-1408 Camila Assano E-mail: cacruz@timbrasil.com.br Phone: +55 21 98113-4236 Lucas Carneiro E-mail: lmcarneiro@timbrasil.com.br Phone: +55 21 98113-1141 Guilherme Kopke E-mail: gknascimento@timbrasil.com.br Phone: +55 21 98113-0583 Visit our Website ri.tim.com.br E-mail: ri@timbrasil.com.br 850 João Cabral de Melo Neto Avenue South Tower – 12th floor Barra da Tijuca – 22775-057 – Rio de Janeiro, RJ