Tim 10ª ConferêNcia Anual Santander (20 Ago09) Eng

TIM Participações S.A

10ª CONFERÊNCIA ANUAL SANTANDER

August 20th, 2009
0

TIM PARTICIPAÇÕES S.A. | Investor Relations

Agenda

Re-launch Plan: Key Actions and Results

2nd Quarter Results

Build a Solid Platform for the Long Term

Market Facts and Historical Data

1


Re-launch Plan: Key Actions
Actions in Course
Repositioning
1 Share of voice increase
Brand New format to increase recall and brand linkage
Coherence and brand recognition
7
2 Focus on 2G Service Quality :
Network 2G: excellence on voice quality
3G: “right on spot”
React to 2008’s
3 Selectivity and Multi-channeling
inertia on revenues:
Caring Services improvement: better flow over demand
Caring model evolution: service level vs. client value
- minimizing impact
4 Distinctiveness and Innovation on 2009…
Offering Infinity pre and post Shock offering: “Recarga Imperdível”
- …and preserving
“Azul” (DDD = local) “TIM Único”
profitability
5 “Back to Sales”
Grow again on post-paid and on pre-paid
Sales Force Sales Force development (rationalization / productivity)
Value-based Commissioning
6 Structural Rethinking
Efficiency Revision of go-to-market models and processes
Renegotiation with suppliers
Growth financing and sustain profitability

Build a Solid Growth Platform for 2010
2


1
Brand: Share of Voice Increase; Brand

Growth of Recall, Appreciation and Brand Linkage
Greater Efforts in Communication... ... with Good Campaign Results
% share of investment Δ p.p. TIM TIM Terra Manifesto
Player 1 Target Azul (May) Da Marca
Player 2 (Mar)
Player 3

87
40%

32% 78
35%
31% 76
30% 30% 75
30%
28% 28% 70
26%
29%
25%

24% 19% 46
20%
18% 21%
15%
17% 16% 32
15% 16%
10%

18
5%
20
2006 2007 2008 1H‘09
Ranking
3º 3º 4º 1º
TIM
Recall Appreciation Brand Linkage
Δpp
vs. leader -6 -13 -14 0

3
Source: Ibope Monitor/GRP, Data Folha, Synovate’s Image Research


Network
2 Network: Improvement of Service and Network Quality
2008 FY – Overall Service Quality Jan-Jun 2009 – Overall Service Quality
% target achieved in overall service quality, TIM vs. competitors % target achieved in overall service quality, TIM vs. competitors

98.7% in June

4Q ‘08: 90.2%
#6 #2
99.5% 98.0% 97.7% 99.9% 97.3% 97.0%
95.1% 93.4% 96.0% 93.4%
91.6% 90.7%
83.9%
76.9%

Player 1 Player 2 Player 4 Player 5 Player 6 TIM Player 3 Player 1 TIM Player 5 Player 6 Player 4 Player 2 Player 3

Network Service Quality
% target achieved in network quality , TIM vs. competitors % target achieved in TIM network quality

Jan/09 Jun/09 Delta (p.p.)
99.5% 99.5% 98.9% 100.0%
TIM 84.1% 100.0% +15.9 100,00%
96.7%
98,00%

Main mobile
96,00%

Player 1 100.0% 100.0% 0.0 84.6% 84.1% 84.1%
94,00%

92,00%

operators
90,00%

88,00%

86,00%

Player 2 95.7% 98.6% +2.9 84,00%

82,00%

80,00%

Player 3 53.8% 50.0% -3.8 nov/08 dec/08 jan/09 feb/09 mar/09 apr/09 may/09 jun/09
4
Source: Anatel


Caring
3 Caring: Improvement in Customer Satisfaction
Customer Satisfaction Evolution Costumer Care Index - Anatel
TIM Player 2
Player 1 Player 3
8.6
8,
6

TIM
8.4
8,
4

Player 1
2
8,
8.1 Player 2
8.1
Player 3
8
8.0
8.0 Player 4
7.8
7.8
7,
8

Jan09 Feb09 Mar09 Apr09 May09 Jun09
7,
6

m /6
ai0 u /6
j l
0 s t6
e/0 nov /
0 a n /7
j 0 m r7
a/0 m /7
ai0 u /7
j l
0 s t7
e/0 nov /
0 a n /8
j 0 m r8
a/0 m /8
ai0 u /8
j l
0 s t8
e/0 nov /
0 a n /9
j 0 m r9
a/0 m /9
ai0

May Oct May Oct May Oct May
06 06 07 07 08 08 09

Evidences: . Reduction of # Lines / frequency of problems
. Strong recovery in historically critical areas: SP, RJ and Mid-West

Offering: . Improving on competitiveness in handset
. Increase media presence
. Launch of Infinity pre-paid plan
TIM: recovery of client satisfaction
after a negative 2008 CRM: . Pro-active replacement of handset based on value
. Expansion of Premium cell

Coverage: . Focus on areas with high concentration of high-value clients
Source: Customer Satisfaction Monitoring (Bridge Research)
5


Ranking Offering
4 Offering: Inversion of Market Share Erosion Trend in net share

TIM Net Adds and Net Share TIM Market Share
000’s lines, % % of market share

25.4 Clean-up:
25.2
25.1 25.0 ~1Mln lines
24.7
24.5
Net share% 24.2
24.0
2008 2009 #1 #2 #1 23.7
2400%
2400%

23.5 23.6 23.6
23.4
37.7% 24.1% 32.2%
29.1% 0

0
2350%
2350%

0
2300%
0 2300%

0

0
Apr May Jun Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
09 09 09 2008 2009
17.4%
% Net 2.000

1,729
Share 1.500
TIM Customer Base
1,282 Mln lines
37.8
38 37.1
Net 36.4 36.5
1.000

36.4
35.8 36.1 35.7 36.1
37

Adds 500 36

34.7
35.2
35
33.8 34.2
0
34

2Q 2Q 33

32

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
QoQ Speed up: 2008 2009
•Net addtion: 1.7mi 2Q vs. 0.7*mi in 1Q09
Pre 27.0 27.3 27.8 28.4 29.0 29.3 29.8 30.1 29.5 29.9 30.3 30.9 31.6
•ARPU: R$26.6 2Q vs. R$26.0 in 1Q09
Post 6.8 6.9 6.9 6.8 6.8 6.8 6.6 6.4 6.2 6.2 6.2 6.2 6.2

*excluding clean-up base 6


Offering
4 Offering: Infinity Offer Results
2009 Infinity pre-paid base
(000’s lines)
~2.500

Pre ~1.600

~650
5

Mar Apr May Jun
Infinity
% Infinity in gross post voice consumer

34% Other
Post plans

100%
66%
Infinity

~0%
May Jun

7


Sales
5 Sales Force: Stop-loss of Value Customers Base (Post-paid) Force

Post-paid
2009 Post-paid Sales
Excluding ~0,3Mln Re-launch
lines clean-up

Total Base Gross Adds
000’s lines, 2009
Churn
Gross adds

“Back to
1Q*
Q1

AprApr

May
Mag

Jun Giu

Sales” Net
Adds -- - + +
Churn
Pre-paid
Excluding ~1Mln 2009
lines clean-up Gross Adds
Pre-paid
1Q*
1Q

Apr Apr

May Mag

Jun Giu

Churn Growth Speed
Net Adds
up
- + ++ ++
Reported
Excluding ~0,7Mln
lines clean-up

1Q* Apr May Jun
Q1 Apr Mag Giu previa fechamento

Net
Adds + + ++ ++
8
* monthly average in 1Q


Sales Force: Positive Balance on Post-Paid MNP and Speed up in
Sales
5 Force

Acquisition Dynamics
Gap MNP Post-paid Gross Adds Post-paid (voice)
% MNP Port In/ Port Out ’08 vs. ’09
Positive Balance on “The Turnaround”
Consumer and Business
segments
-46% +29%
+42%
+ 145%
Consumer -34%
+2% +13%
14 5 %

Post-
12 5 % 113% 120% paid

10 %
5
107% Business
“Zero balance”
85%
78%
69%
56%
55%
65%

44% 62%
45% 40%
24% 26% 46%
23%
25%

22% 25%
5%
14%
Jan Feb Mar Apr May Jun
Jan Feb Mar Apr May Jun

9
Note: Mobile NP


6
Efficiency: Self-financing Brand Repositioning Plan Efficiency
and Commercial Re-launch
Total Cost Breakdown Costs
Δ% 09 vs. 08, BRGAAP

- 1% 1Q Advertising &
Promotions + 41%
Com-
2Q + 15% + 26%
mercial Commercial*
Bad Debt Evolution
% Net Services Revenue, BR GAAP
YTD + 8% Bad Debt -48%
Improvement in
-5% 1Q -5,00% 0,00% 5,00% 10,00% 15,00% 20,00%
9.6% acquisition quality
6.8%
-6% 1Q 4.7% 4.1% 4.8%
3.6%
Leased Lines +14%
Indus-
~0 2Q trial -14% 2Q
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Intercon-
nection -20%
-10% YTD

-2% YTD
-9% 1Q
Personnel -18%
HR, IT
and G&A -10% 2Q
G&A -6%
-10% YTD

Note: Excludes non organic effects: Embratel dispute agreement: - R$64 Mln (Mar/09); São Paulo inventories stolen : -R$21Mln (2Q09)
-100,00% -50,00% 0,00%

10
*Includes COGS, Selling, CRM and Marketing Expenses


Econo

Financials: Flat Revenues with Structural Increase of Profitability
mics
7

Net Total Revenues Net Services Revenues
Δ% 09 vs. 08, BR GAAP Δ% 09 vs. 08, BR GAAP

1Q + 0.6%
-0.5% 1Q
Issue: neutralize
2Q +
3.7% -1.2% 2Q 2008 negative
waves
(post and pre-paid)
-0.8% 1H
1H + 2.2%
-5,00%

0,00%

EBITDA Growth EBITDA and EBITDA Margin
Δ% 09 vs. 08, BR GAAP Δ basis points 09 vs. 08, BR GAAP

20.0% 22.3%
1Q + 14% 1Q 243

2008 2009
2Q + 16% 2Q 228

+ 230 Basis points YoY
1H + 15% 1H 237

11


Econo

7 1st Wave 2008: Loss of Post-paid Voice Base
mics

8Mln
6.8
TIM 6.2 Impact on Total Post-paid Revenues
Post-paid 6Mln (FY 2009)
Base
4Mln Loss of active voice ∆ Jan 09
Jun-08 Jun-09 post-paid lines: - 800K
(lines) vs. Jan 08
Total
market 25.3 29.0 x
ARPU/
25% post-paid active R$100
voice lines:
TIM 20%
-4pp

Post-paid 20%
-R$0.5 bn in 1H
Mix ~ R$ 1 Bln
16%
(%)
15%
Jun-08 Jun-09

TIM 30% -6pp
Post-paid 27%

Market 25%
21%
2008 Delta 2009
Post-paid base Inertial
Share Revenues Post-paid
15% Revenues
Jun-08 Jun-09
12


Econo

7 2nd Wave 2008: Reduction in Pre-paid Base with Promos
mics

ARPU Promo base vs. Non-Promo base Impact on Total Pre-paid Revenues (FY 2009)
Bln R$

ARPU
Mainly in 2Q

- +
Promo Non-Promo

Non-Promo
Promo Active Base
Active Base
Mln lines Mln lines
- +
2008 Promo Non-Promo 2009
Pre-paid Δ Base Δ Base Inertial
Revenue Pre-paid
Revenue
2008’s Mar 2008’s Mar
Average 2009 Average 2009

13


Agenda


2nd Quarter Results

Build a Solid Platform for the Future


14


2Q09’s Main Results
Subscribers base: +4.8% QoQ

Net Revenue growth: +3.7% YoY to R$ 3,304 Mln

Net Service Revenue:
• +4.0% QoQ (and +9.7% QoQ in Total Net Revenue)
• VAS: +12.5% QoQ e +21.7% YoY
• Stop ARPU and MOU erosion on a quarterly basis
Structural efficient growth:
• Bad Debt at -47.9% YoY (and 3.6% of Net Services Revenue)
• Interconnection & Network: -14.1% YoY
• Personnel and G&A: -9.0% YoY and Commercial: +24.6% YoY
Improving Profitability: EBITDA at R$ 736 Mln (+15.5% YoY) to a Margin of 22.3% (+230 bps YoY)
Net Loss reduction: -R$ 15 Mln vs. -R$144 Mln in 1Q09 and -R$66 Mln in 2Q08
Positive Operating Free Cash Flow: R$ 407 Mln, +10% YoY…
… with an improvement in the Net Financial Position: R$ 2,900 Mln, -R$117 Mln vs. 1Q09

15


Customer Base

Stop Market Share Erosion… … through Revamp in Net Additions

Million lines

25.4%
Market 29.1%
23.5% 23.7%
Share (%)
Net
36.1 37.8 Share (%) 17.4% 17.2*%
33.8
ΔY/Y ΔQ/Q 1,729 ∆ Net Adds
YoY: +35%
1,282 QoQ: +149%*
29.9 31.6 +17.1% +5.6%
27.0 Net Adds ~700*
(000’s)

6.8 6.2 6.2
6.2 -8.9% +0,7%

2Q08 1Q09 2Q09
Post-paid Pre-paid (306)
CB YoY
23.1% 11.0% 11.9% 2Q08 1Q09 2Q09
Growth (%)

* Excluding the impact of ~1MM clean-up

16


Service Revenue KPI’s
Revenues & KPI’s
ARPU
R$
Net Revenues

R$ Mln
ΔY/Y ΔQ/Q
29.8 26.0 26.6
3,186 3,304 +3.7% +9.7%
3,012
2Q08 1Q09 2Q09
YoY % -13.8% -11.7% -11.0%
2,971 2,936 -1.2% +4.0%
2,823 QoQ % +1.2% -13.1% +2.1%

∆ YoY ∆ QoQ
215 189 368 +70.8% +95.0% ARPM 0.37
0.36
0 0
,
4

22.2% -2.2%
2Q08 1Q09 2Q09 R$ 0 5
,
3

0.30
Net Service Revenue
0 0
,
3

Net Handset Revenue
0 5
,
2

∆ YoY ∆ QoQ
ΔY/Y ΔQ/Q
0 0
,
2

-27.1% +4.4%
Gross VAS Rev. 397 430 483 +21.7% +12.5% 0 5
,
1

MOU 100
% VAS/ Service 9.8% 11.2% 12.3% +2.5pp +1.1pp Min. 70 73
Rev.
Increased penetration of
micro-browsing over total
customers base 2Q08 1Q09 2Q09 17


Commercial Efforts …While Efficiency Plan Gets
Maintained… .. delivering EBITDA Growth
Traction...
COGS Bad Debt
R$ Mln
R$ Mln -47.9%
Gross Adds
YoY: +20% -21.2%
QoQ: +27% 60* EBITDA
+43.7% 143 134 R$ Mln
106 +15.5%
+43.9% % of +20.8%
467 Net Serv. 2Q08 1Q09 2Q09
Revenues 6.8%* 4.8% 3.6%
325 324
Personnel and G&A Costs
R$ Mln
99 -9.0% 637 609 736
-3.7%
2Q08 1Q09 2Q09
Selling Expenses 277 261 252 2Q08 1Q09 2Q09
R$ Mln 2Q08 1Q09 2Q09
+24.6% Margin % 20.0% 20.2% 22.3%
+16.9% Interconnection & Network Costs
829 R$ Mln
666 709 -14.1%
-6.5%
∆ YoY

Advertising 84 115 119 =1.4 x 1,073 985 921
2Q08 1Q09 2Q09 2Q08 1Q09 2Q09
18
* Telesales Impact


EBITDA and Bottom Line performance

EBITDA Structurally Improve – Financing the Growth
and the Repositioning EBITDA to Bottom Line performance
R$ Million R$ Million

EBITDA Depreciation & Net Financial Taxes and Net
EBIT Result
2Q09 Amortization Expenses Others
152.6 (141.9) 36.9
97.4
(34.4) (163.4) 151.7

736.0 (647.5)
736.0
637.2 ~300 ~290
(~10% Serv. Rev.) (~10% Serv. Rev.)

Investments on Savings
Growth
88.6 (65.9)
(38.0) (15.2)
+R$99 Mln
+15.5%

EBITDA Service Handsets Advertising Network Other EBITDA 2Q08 637.2 (596.3) 40.8 (91.4) (15.7) (66.3)
COGS Bad Debt
2Q08 Revenues Revenues & Sales Expenses Expenses* 2Q09

Δ YoY -1.2% +70.8 +43.7 +24.6 - - - YOY % +15.5% +8.6% +116.9% -27.9% +141.1% -77.0%
% % % 14.1 47.9 13.1
Margin % % % 2Q09 vs.
20.0% 22.3% 1.2x 2.2x 0.2x
% 2Q08

* Other Expenses include: G&A, Personnel and Net Other Operating Expenses/Revenues

19


Net Financial Position and Operating Free Cash Flow – 2Q09

Operating Free Cash Flow Net Debt
R$ Million R$ Million
Operating FCF Non
% total revenues 1Q09 Op. FCF 2Q09
93 (422)
736 12.3% 11.6%
-117
+10%

407
~R$ 168 Mln
of dividends

371 *

EBITDA ΔWork. CAPEX Operating 2Q08
Cap. FCF
(3,017) 407 (289) (2,900)
* Excluding 3G license

R$ 3.67 billion (of which 68% long term)
Gross Debt
~33% of total debt is denominated in foreign currency (fully hedged)

Average annual cost 10.95% in 2Q09 vs.11.64% in 2Q08 (and 12.47% in 1Q09)

20


Agenda


2nd Quarter Results



21


Reshaping TIM Brasil: Build a Solid Growth Platform
2008 2009
Recovery in
Brand
Posiziona- Loss of Preference (-7 pp) and Top of Mind (-1 pp) - Preference
mento mark
Positioning Ranking #6 in Quality (Anatel) - Top of Mind
Customer Satisfaction Index decrease (ranking #3) - Quality of Services (ranking Anatel)
- Customer Satisfaction

- 6 pp only at post
25.9% 25.4% 25.0% 24.2% 30,00%
23.5% 23.7% 30,00%

MS Total
20,00%
20,00%

Market 10,00%
Reversal post-paid base erosion
trend (value base)
10,00%

Share Net adds
pre
0,00%
0,00%

Net adds
-10,00%

post voice
-20,00% -20,00%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 E 4Q09 E

R$ Bln R$ Bln
26% EBITDA Margin
24%
20% 22%
18% 20% Keep growing in
Economics revenue and
Net Total +10% profitability
+6% Revenues
+6% +5%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 E 4Q09 E
Source: TIM internal data 22


The Path for 2009
1Q09 2Q09 3Q09 4Q09
New portfolio Offers: Usage stimulus, MOU growth.
Strategy: Pure Mobile Commercial Push on New
Ex:
- April (Infinity Pre, Da Vinci) Offer
Organization: new - “Recarga Imperdível”
- June (Infinity Post, “Único”) - LD Infinity
management Team
Closing Intelig and
Advertising: new format Sales channels Push : Market share Increase :
- Back-to Post-paid - Post-paid Voice (BU/CO) capturing early synergies
and greater presence in - MNP Focus - Infinity Pre-paid Push
media Recovery of Top of Mind
Recovery of Customer New Offers (July)
Network Quality Satisfaction - 4 in 1 and Preference
- New “Imperdível”

Network
Back to Sale Back to Talk Back to Growth
and Brand recover
Net Services ++
Revenue +
Δ YoY - -

Target: restructure the company, recovering strong
positioning, sustaining profitability and cash flow
23


Improving Structural Efficiency of the Company
2009, BRGAAP
Δ YoY Strict Rigor in Bad Debt
+
+ % Net Service Revenue
2008 10%
Commercial
7%

08 vs 07 09* vs 08 5% 4%
2009 4.8%
Δ YoY
+ 3.6%

HR, IT and 1Q 2Q 3Q* 4Q*
G&A
- Industrial Costs Variation
08 vs 07 09* vs 08
Δ YoY ITX Leased Lines
Δ YoY
+
08 vs 07 + ++
Industrial
(Network)
- -
08 vs 07 09* vs 08
09* vs 08 + Intelig

We do not sacrifice growth to increase profitability
We do not “buy" growth by destroying value
24
* 2009 Estimate


Main Takeaways

2Q Achievements 3Q Priorities

Repositioning on track:
• Brand • Positioning
• Quality
• Satisfaction •Stimulate Usage (MOU)
Growth of net additions with ARPU increase
•Post-paid
Profitability preserve through efficiency

QoQ improvement in all metrics •Profitability and cash
generation

Build a Solid Growth Platform for 2010
25



2nd Quarter Results



26


Market Facts
Stock Performance Shareholders Structure
TCLS4 TCSL3 IBOV
TIM Part. Total (%) Control (%) Free float (%)

Common 799,924,805 34% 650,537,118 40% 149,387,687 21%

Preferred 1,548,522,231 66% 990,098,811 60% 558,423,420 79%

Total 2,348,447,036 100% 1,640,635,929 100% 707,811,107 100%

*in Aug 11, 2009

Telecom Italia
100%
Aug08 Sep08 Oct08 Nov08 Dec08 Jan09 Feb09 Mar09 Apr09 May09 Jun09 Jul09 Aug09
TIM Brasil
ON: 81%
Market Panel* PN: 64%
Total: 70%
Market Capitalization: R$ 10.97 Billion Market Capitalization: US$ 5.93 Billion
TIM Participações
Stock Exchange: BOVESPA Stock Exchange: BOVESPA Stock Exchange: NYSE 100%
Ticker Symbol: TCSL4 (Preferred) Ticker Symbol: TCSL3 (Common) Ticker Symbol: TSU (ADR)
Price: R$ 4.19 Price: R$ 5.60 Price: US$ 22.77 TIM Celular
52 Week Price Range: 52 Week Price Range: 52 Week Price Range:
100%
High – R$ 4.50 High – R$ 7.95 High – US$ 23.68
Low – R$ 2.42 Low – R$ 4.49 Low – US$ 11.44 TIM Nordeste
*All Market Panel data refer to Aug 11th, 2009 27


Historical indicators: operational results

QoQ YoY
2Q09 1Q09 2Q08 % %

Brazilian Wireless Subscriber Base (million) 159,6 153,7 133,2 3,9% 19,9%
Estimated Total Penetration 83,5% 80,6% 69,5% 2,9 p.p. 14,0 p.p.
Municipalities Served - TIM GSM 2.944 2.772 2.733 6,2% 7,7%
Market Share 23,7% 23,5% 25,4% 0,2 p.p. -1,7 p.p.
Total Lines ('000) 37.826 36.096 33.815 4,8% 11,9%
Prepaid 31.610 29.923 26.993 5,6% 17,1%
Postpaid 6.216 6.174 6.821 0,7% -8,9%
Gross Additions ('000) 4.855 3.836 4.046 26,6% 20,0%
Net Additions ('000) 1.729 -306 1.282 n.m. 34,9%
Churn 8,6% 11,4% 8,4% -2,8 p.p 0,2 p.p
ARPU (R$) 26,6 26,0 29,8 2,1% -11,0%
MOU 73 70 100 4,4% -27,1%
ARPM (R$) 0,36 0,37 0,30 -2,2% 22,2%
SAC (R$) 120 135 119 -10,7% 0,9%
Investment (R$ million) 422,5 194,4 1.706,3 117,3% -75,2%
Employees 10.174 10.212 10.253 -0,4% -0,8%

Numbers may differ from the previous publishing due to rounding 28


Historical indicators: financial results
R$ (Thousands) 2007 1Q08 2Q08 3Q08 4Q08 2008 1Q09 2Q09 QoQ % YoY %

Net Revenues 12,441,643 2,992,957 3,186,075 3,357,794 3,544,138 13,080,965 3,011,668 3,304,252 9.7% 3.7%
Services 11,421,037 2,837,663 2,970,664 3,065,744 3,222,737 12,096,808 2,822,979 2,936,240 4.0% -1.2%
Handset Revenue 1,020,606 155,294 215,411 292,051 321,401 984,157 188,689 368,012 95.0% 70.8%

Operating Expenses (9,601,330) (2,460,169) (2,548,906) (2,559,338) (2,613,134) (10,181,547) (2,402,216) (2,568,235) 6.9% 0.8%
Personal Expenses (625,398) (162,625) (168,697) (152,654) (164,186) (648,162) (157,959) (138,181) -12.5% -18.1%
Selling and Marketing Expenses (2,512,078) (598,141) (665,621) (715,019) (708,347) (2,687,128) (709,130) (829,036) 16.9% 24.6%
Network & Interconnection (3,865,089) (1,044,547) (1,072,570) (1,077,171) (1,048,241) (4,242,530) (984,633) (920,902) -6.5% -14.1%
General & Administrative (429,699) (123,779) (107,984) (101,496) (118,883) (452,143) (103,488) (113,542) 9.7% 5.1%
Cost of Goods Sold (1,434,431) (263,235) (324,831) (378,072) (439,650) (1,405,788) (324,451) (466,727) 43.9% 43.7%
Bad Debt (714,571) (271,701) (203,327) (143,250) (130,554) (748,833) (134,453) (105,949) -21.2% -47.9%
Other operational revenues (expenses) (20,065) 3,859 (5,876) 8,325 (3,272) 3,036 11,897 6,102 -48.7% -203.8%

EBITDA 2,840,313 532,788 637,169 798,456 931,004 2,899,418 609,451 736,016 20.8% 15.5%
EBITDA - Margin over total net revenues 22.8% 17.8% 20.0% 23.8% 26.3% 22.2% 20.2% 22.3% 2.1 p.p. 2.3 p.p.

Depreciation & Amortization (2,323,674) (572,033) (596,338) (617,988) (622,185) (2,408,545) (641,222) (647,451) 1.0% 8.6%

EBIT 516,639 (39,245) 40,831 180,468 308,818 490,872 (31,771) 88,565 -378.8% 116.9%

Net Financial Results (281,500) (73,609) (91,382) (152,943) (57,041) (374,974) (69,314) (65,857) -5.0% -27.9%

Income (loss) before taxes and Minorities 235,139 (112,854) (50,552) 27,526 251,778 115,898 (101,085) 22,708 -122.5% -144.9%

Income tax and social contribution (166,837) (12,613) (15,743) (39,579) 132,188 64,254 (42,929) (37,956) -11.6% 141.1%
Net Income (Loss) 68,302 (125,466) (66,295) (12,053) 383,966 180,152 (144,014) (15,247) -89.4% -77.0%

Numbers may differ from the previous publishing due to rounding 29


“Safe Harbor” statements

Statements in this presentation, as well as oral statements made by the management of TIM
Participações S.A. (the “Company”, or “TIM”), that are not historical fact constitute “forward looking
statements” that involve factors that could cause the 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.

Investor Relations Visit our Website

Avenida das Américas, 3434 - Bloco 01 http://www.tim.com.br/ri
6° andar – Barra da Tijuca
22640-102 Rio de Janeiro, RJ
Phone: +55 21 4009-3742 / 4009-3446 / 4009-4017
Fax: +55 21 4009-3990

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Tim 10ª ConferêNcia Anual Santander (20 Ago09) Eng

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