The document summarizes TIM's financial and operational results for the first quarter of 2017. Key points include: - Revenues returned to growth for the first time since 2015, increasing 2.5% year-over-year driven by a 31% increase in EBITDA. - The company saw improvements in key metrics like postpaid subscriber additions, prepaid ARPU, and 4G network expansion. - Opex was controlled despite revenue growth and inflation, helping expand EBITDA margins. - The operational and financial turnaround is progressing as planned, and growth is expected to continue into the future.

2. 2
Results Presentation
Investor Relations
8.0
12.5
1Q16 1Q17
-9.2%
1Q16 1Q17
Turnaround on Track: Virtuous Cycle on the Rise
Operational
Financial
Cash
Network
4G Network Expansion
(# 4G sites – e-NodeB)
Normalized¹ EBITDA – CAPEX
(R$ million)
12% 15%
% over Net
Revenues
452
594
1Q16 1Q17
+31%
YoY
+55%
“Human” Postpaid Net Additions (1Q17)
(Excluding M2M and modem; in thd lines)
Source: Anatel
Mobile Service Net Revenues
(%YoY)
¹ Normalized for towers sale and other transformation impacts
3.7%
418
327
166
-8
TIM P1 P3 P4
#1 in Net
Adds

3. 3
Results Presentation
Investor Relations
Customer Base Transformation: Postpaid
Net Mobile Number Portability
(Postpaid)
Acquisition ARPU
(Postpaid gross adds; R$/month)
Postpaid Base Evolution
(mln users; % of Postpaid over CB)
13.5
15.3
1Q16 2Q16 3Q16 4Q16 1Q17
20% 25%
Gross Adds and Migration
(Postpaid; %YoY)
Churn & Downgrade
(Postpaid)
+16%
Customer Base ARPU
(Postpaid customers; R$/month)
1Q16 1Q17
+25%
Better quality improves acquisition and loyalty…
... while “more for more” strategy and price-ups improves ARPU
1Q16 1Q17
>2x
1Q16 1Q17 1Q16 1Q17
-12%
1Q16 1Q17
+8%
+17%
Postpaid
Controle

4. 4
Results Presentation
Investor Relations
Customer Base Transformation: Prepaid
Focusing on recurring offers
Daily packages
50MB +WhatsApp
Weekly packages
1GB + 100 min
+ Deezer
+WhatsApp
R$0.99 R$10
R$0.99
Unlimited voice on-net
+
R$9
1GB + unlimited
on-net + Deezer
+WhatsApp
x
2x
ARPU
<50%
>70%
% Data
utilization
Prepaid Customer
Profile
Recurring Prepaid Base
(Quarterly average)
Recurring offers
successfully attracting
higher value prepaid subs.
1Q16 1Q17
2X

5. 5
Results Presentation
Investor Relations
7.4
9.8
1Q16 2Q16 3Q16 4Q16 1Q17
Data Services Revenues Over 50% of MSR
Changing Customer Base profile
Yielding data
revenues
32%
14%
4G users over CB
(%)
34%
43%
52%
66%
57%
48%
1Q15 1Q16 1Q17
Mobile Service Net Revs Mix
(%)
Traditional
Data
All plans with digital
services embedded.
Improving loyalty and
acquisition
VAS ARPU
(R$; %YoY)
34%
1Q16 1Q17

6. 6
Results Presentation
Investor Relations
Residential Solutions: TIM Live Consistency and New Opportunities
256
322
1Q16 1Q17
Efficient Customer base increase
+26%
Customer base (thd)Homes Passed (mln)
2.9
3.1
1Q16 1Q17
+7%
WTTx Solution Trials: TIM Casa Internet
• Runs over LTE (700MHz, 1.8GHz and 2.6GHz);
• Available offers: 2Mbps (50GB) and 4Mbps (80GB);
• Target markets: Residential;
• Self-installed CPE (comodato with lock-in contract)
First Results:
• City: Rio Verde (GO)
• High satisfaction levels (>9.6/10)
• Average data consumption:
~70GB/month
• >80% clients did not have broadband
IDU
PCTV
Mobile
TIM Live Net Revenues
(R$ bln; %YoY)
1Q16 2Q16 3Q16 4Q16 1Q17
TIM Live on
Fixed Revs.
+38%
+8.9%
>20% >30%
TIM Live ARPU Expansion
(%YoY)
1Q16 1Q17
+9%
#1 on Netflix ISP
Speed Index

7. 7
Results Presentation
Investor Relations
4G Fast Rollout Supporting Data Strategy
66%
of data
traffic
>90%
of sites
through 4G
devices
with proprietary
backhaul
4G
fastest
deployment
4G Cities Coverage Evolution
(# of cities)
Doubling 4G Capacity in Key Areas
Trough 1.8GHz Refarming
With additional 10MHz from
700MHz still to come
Quality Perception Surveys
1,322 (TIM)
(P3)
(P4)
(P1)
0
300
600
900
1.200
1.500
Dec-13 Dec-14 Dec-15 Dec-16 Mar-17
 Rio de Janeiro
 Porto Alegre  Curitiba
 São Paulo
 Distrito Federal
from
(1Q15)
10MHz 20MHz
to
(1Q17)
700MHz rollout
started in Goiás
and Brasília
Offerings
Voice
3G/4G Availability
3G/4G Connection
Stability
3G/4G Speed
Billing
Customer Care
Problem Resolution
2016
2015
TIM’s Annual Evolution
(2016 ANATEL’s Perception Survey)
76.3
73.6
68.7
72.7
74.8
71.870.9
69.9
4Q15 4Q16
P1
TIM
P3
P4
Customer Satisfaction Index¹
(Postpaid general satisfaction)
Source: CSI Model by CFI Group. From October to December, 2016.
Already #1
in Controle
Source: Teleco website (other players)

8. 8
Results Presentation
Investor Relations
Turnaround Milestone: Revenues Back to Positive
Business Generated
-5.7%
-4.0%
-0.3%
0.9%
6.3%
1Q16 2Q16 3Q16 4Q16 1Q17
(Mobile Services Net Revenues
ex-incoming ; %YoY)
-9.2%
3.7%
-5.4%
7.0%
1Q16 2Q16 3Q16 4Q16 1Q17
Mobile Service Net Revenues
(%YoY)
Total Net Revenues Breakdown
3,854
3,951+ 3.5% -12.0%
1Q16 Services Revenues Handsets 1Q17
(R$ mln; %YoY)
Ex–MTR impact
Reported
+2.5%
-27%
+31%
1,849Total VAS 1,480
Data Growth Acceleration
(R$ mln; %YoY)
%YoY
34%
43%
52%
1Q15 1Q16 1Q17
Reshaping Revenues
(VAS over MSR %)
+14% +25%
1Q16 1Q17
SMS
Innovative

9. 9
Results Presentation
Investor Relations
2,721
4,372
495
859
178
72 47
Solid EBITDA Growth With Opex Control and Margin Expansion
Net Financial Position Evolution
(R$ mln, %)
8.2%
1.9%
1Q16 2Q16 3Q16 4Q16 1Q17Service
Margin
Margin
2.7 2.7
1Q16 1Q17
Normalized1 OPEX
(R$ bln; %YoY)
-13.5%
8.7%
1Q16 2Q16 3Q16 4Q16 1Q17
Normalized¹ EBITDA Growth
(%YoY)
¹ Normalized for towers sale and other transformation impacts
30.2% 32.0%
32.6% 33.6%
Normalized1 EBITDA-Capex
(R$ mln; %YoY)
452
594
1Q16 1Q17
+31%
EBITDA Exposure to MTR
(%)
-0.1%
Stable Opex despite
Revenues growth and
4.6% 12M inflation
NFP
Dec/16
OFCF ex-
license
700MHz
Clean Up
Net
Financial
Expenses
Cash
Taxes
Other
Movements
NFP
Mar/17
+R$964 mln
improvement
vs. 1Q16
+1,651

10. 10
Results Presentation
Investor Relations
1Q17 Key Messages & Outlook
Operational and financial turnaround already bearing results
TURNAROUND
IN PROGRESS
Customer Base Mix
Network Traffic Mix
(Data traffic through 4G devices)
Prepaid
Pospaid
Value approach in
both segments
4G leadership
reshaping traffic
Revenues at a
different pace
Normalized EBITDA
(%YoY)
Normalized
EBITDA
acceleration
Recovery trend should continue going forward
Network &
Quality:
Offers:
Financials:
20% 25%
80% 75%
1Q16 1Q17
1,255
>2K
2016a 2017e
Cities Covered with 4G
(EoP)
Net Revenues
(%YoY)
-15.3%
-12.4%
-5.3%
-1.7%
2.5%
1Q16 1Q17
36% (2019e)
40%
66%
1Q16 2Q16 3Q16 4Q16 1Q17
Network quality to be perceived as a differentiation factor and
VoLTE to be launched in 2Q17 helping voice quality
-13,5%
-6,5%
0,5%
5,8%
8,7%
1Q16 1Q17
New offers continue to reshape customer base and usage profile
Revenues and EBITDA positive growth in every quarter
FCF growth to be continued