TIM Meeting with Investors - jun 2017

1
Meeting with Investors
Investor Relations
Draft - Highly Confidential
TIM Brasil
Company’s Presentation
June, 2017

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Investor Relations
Visit our website and download our IR
app: www.tim.com.br/ir
TIM IR app
(English)
TIM RI app
(Portuguese)
Agenda
About us…………………………………………………………….………………...
Market Overview and TIM Positioning………………………..……….
1Q17 Results…………………………………………………………………………
Strategic Plan 2017-19…………………………………………………………
Regulatory Update……………………………………………………………….
Appendix………………………………………………………………………………
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7
14
25
28
35

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Investor Relations
About Us

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Investor Relations
31%
44%
49% 51% 52%
2012 2013 2014 2015 2016
26.7% 26.1%
28.4%
31.5%
33.5%
2012 2013 2014 2015 2016
1.9
2.3
3.5
4.7
5.6
2012 2013 2014 2015 2016
 Presence in Brazil since 1998
 22nd largest Private Company in Brazil*
 Approximately R$25 billion of Market Capitalization
Innovative Net Revenues
(R$ bln; VAS Revenues excluding SMS)
Data Penetration
(data users over total base)
EBITDA Margin
(%)
CAGR
+32%
*Source: Exame Magazine - 2016
+700 Bps
TIM: A Solid Path in a Changing Industry
Leader in 4G Coverage
 ~1,465 cities covered with 4G
 >75% of urban population in 4G
 Total of 3,460 cities covered with
2G/3G/4G
High focus on infrastructure
development
 >21 thousand Sites
 ~5,250 sites connected with fiber
 ~76,100 km of optical fiber network
2nd in Revenue Share
 61.3 million customers
 25.3% Market Share
 ~R$4.5 billion invested in FY2016
(ex-licenses)
Growth
via M&A
1.7x

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Joined UN Global Compact
in 2008
Member of ISE (Sustainability
Index) for 8 consecutive years
ISO 14001 certified since 2010, 1st
Brazilian telco and ISO9001 Quality
Certification for Billing and Networking
processes
Sustainability
TIM Stands out in
Sustainability
Founded in July, 2013
MISSION: We are committed to creating and strengthening resources and strategies for
the democratization of science and innovation that promote human development in
Brazil, with mobile technology as one of the main facilitators.
In public schools
 185,000 children and
6,300 professors
In museums and science
and technology centers
 More than 70,000
people
 R$2.5 million in
funding
In public administration
 Participatory Urban
Caretaker
o 4 municipalities
 Cultural maps
o 7 municipalities and RS
& CE government
In the federal institutions
of professional and
technological education
 TIM Tec
o MOOC platform
 Partnership with 5
federal institutes
Corporate Social Responsibility
BNDES is a strategic partner of Instituto TIM playing and
important role financing part of the investments.

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Investor Relations
 Statutory Audit Committee:
• Report to Board of Directors
• Oversight Financial reporting
• Analyze anonymous complaints
 Compensation Board and Internal Control and Risk Board
operate indefinitely and act independently
 Whistleblower channel website
Brazilian Law
“Lei das S.A”
Legal
Requirements
Demand for
transparency
and disclosures
Highest level of
Corporate
Governance
Requirement of
protection for
minority
shareholders
Unique Telco company listed on the
Novo Mercado
Committees to Reinforce and Guarantee
Solid Corporate Governance
10 members
(3 independents)
3 members
(3 independents)
3 members
(3 independents)
3 members
(1 independent)
5 members
(2 independents)
8 members
 Equal rights: vote, dividends and tag along
 Higher liquidity
• Single class of share (ordinary shares)
 Greater independence of Board of Directors (at least 20%)
 Strict disclosure policy
Corporate Governance

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Market Overview and TIM Positioning

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The industry mobile revenue (service +
handsets) represented 53% of the total
industry revenues in 1Q17
Mobile Fixed Fixed BB Pay-TV Group
Customers 1Q17 (000´s) 61,868 525 342 n.a. 63,997
Market share 1Q17 25% 1.3% 1.2% n.a. -
Net Adds 12M (000´s) -5,401 -84 +66 n.a. -5,419
Net Revs 1Q17 (R$ Mln) 3,773 179 3,951
ARPU 1Q17 (R$) 19.0 n.a. n.a. n.a. ---
Customers 1Q17 (000´s) 73,997 14,367 7,494 1,661 97,519
Market share 1Q17 30.5% 34.1% 28.7% 8.8% -
Net Adds 12M (000´s) +726 -511 +98 -119 194
Net Revs 1Q17 (R$ Mln) 6,464 4,126 10,590
ARPU 1Q17 (R$) 28.0 41.9 48.6 94.7 -
Customers 1Q17 (000´s) 60,237 10,969 8,577 9,739 89,522
Market share 1Q17 24.8% 26.4% 32.7% 51.6% -
Net Adds 12M (000´s) -5,052 -459 +261 -110 -5,360
Net Revs 1Q17 (R$ Mln) 2,885 6,020 8,905
ARPU 1Q17 (R$) 15.0 n.a. n.a. n.a. -
Customers 1Q17 (000´s) 42,078 14,151 6,417 1,351 63,997
Market share 1Q17 17.3% 34.1% 23.6% 7.2% -
Net Adds 12M (000´s) -5,671 -704 +54 +171 -6,150
Net Revs 1Q17 (R$ Mln) 2,099 3,967 6,066
ARPU 1Q17 (R$) 15.5 n.a. n.a. n.a. -
1 - Mobile revenue considers only the 5 major players. Oi numbers are adjusted to include corporate mobile and on 4Q16 the
company has reviewed its numbers from 2014 to 2016. With that, the historical revenues share have changed.
Source: Anatel and players’ financial statements
Mobile Revenues Share
Nextel Oi Claro TIM Vivo
Brazilian Telcos X-Ray
39.1% 40.2% 40.3% 40.7% 40.5%
22.7% 22.8% 23.0% 23.5% 23.3%
18.2% 17.6% 17.5% 17.1% 17.9%
14.2% 13.7% 13.7% 13.5% 13.3%
5.7% 5.7% 5.5% 5.2% 5.0%
1Q16 2Q16 3Q16 4Q16 1Q17

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26.6%
47.9%
23.1%
2.3%
7.6
9.5
9.4>12 Mbps
2 - 12 Mbps
0 - 2 Mpbs
A
Household per
Social Class
Convergence in Brazil: myths and truths
Brazilian Households with
internet connection
67
41
26
Total
Households
w/o Fixed
Broadband
Fixed
Broadband
Households per speed
TIM Live Market
5.1
20.5
Live TIM Area Other regions
Fixed broadband
domain
Opportunity for
substitution with 4G
Opportunity for
substitution with 3G/4G
26.6 mln
Source: Anatel; CETIC 2015; CETIC 2014; IBGE, PNAD2014, internal estimates
(mln households)
<5% of Brazilians have enough HH income to buy a
4P bundle
C
D/E
B
Target for
Convergence
Household Income
Threshold (E)
USD 4,286
USD 1,010
USD 304
Convergent
Bundles
4-3 play
(avg tier: U$90)
2-3 play
(avg tier: U$60)
Little or no convergence
Naked + OTT
(avg tier: U$30)
No convergence
Mobile Only
Note: Exchange rate (U$/R$ - 3,5)
(mln households)
(mln households)
 25% of Brazilian GDP
 31% of Broadband market
 TIM Live
• #1 in net adds (all speeds)
• #3 in CB (>34 Mbps)
• More clients than Vivo in RJ Metro

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12 13 14 15 16
0.41 0.42 0.42 0.42 0.42
0.36
0.32
0.24
0.16
0.10
0.06
0.03 0.02
07 08 09 10 11 12 13 14 15 16 17e 18e 19e
Voice to Data Substitution
MTR Cuts
Stabilization
Data traffic booming x
Voice slowdown
Changing Customer Base Mix
Expansion
Consolidation
Total base in mln customers
TIM’s
MOU
Source: Internal figures and Anatel
R$
Transition Phase
TIM’s
BOU
Change on Customer Base Profile
Prepaid
Postpaid 23 51
7998
211
166
121
262
245
07 08 09 10 11 12 13 14 15 16
Total
Business Generated:
VAS x Voice
Revenues over Business Generated (in R$ mln)
BOU (Mbytes of use per data
customers) and MOU (min)
26%
48%
74%
52%
12 13 14 15 16
VAS
Voice

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Strategy Path: Delivering a 180º Turnaround
Quality
Price
2008
2012
Quality
Price
As is: 2008-2016 To be: 2017-2019
2017-19
 Premium brand
approach for
Postpaid
 4G Coverage
Leadership
 Improved CEX
Today
Infrastructure:
4G leadership to support
quality and service delivery;
adopt Pay-as-You-Grow capex
approach to increase FTTx
coverage in RJ and San Paolo
Offer: defend Prepaid
leadership while recovering on
Postpaid segment, also
leveraging on 4P (FTTx and
WTTx), Contents, Smartphone
adoption as reason-to-buy and
loyalty drivers
Customer Experience:
implement the best E2E, omni-
channel customer experience
model leveraging on new digital
capabilities (new Billing, Big Data,
Digital Hub for third Parties)
Efficiency:
a lean company approach to
gain efficiency and
effectiveness. Accountable
and Results oriented people
and organization
Brazilian TLC Market
Positioning Map (Mobile)
Evolving from a “cheap” brand to a total quality operator, capable to successfully compete also in the high-end segment:
Source: Anatel; CETIC 2015; CETIC 2014; IBGE, PNAD2014

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TIM Brasil Re-loaded: Our Commercial Turnaround
Historical “one fits all” approach built-up on pay per use
prepaid offer, reduced focus in postpaid with significant lost of
segment market share
• Prepaid market strongly impacted by economic crisis
• TIM perceived as the “cheap” player
• Handset strategy driven by a “distribution model”
Key facts
Become the best “value for money” choice for mobile services
• Re-activation of positive loop investments→quality→revenues
• Mass segmentation on prepaid (increase usage/penetration and uplift ARPU)
• Focus on postpaid and SME segments leveraging on 4G leadership, selective
approach on broadband (residential) and best CEX approach
• Redesign the sales channels strategy
• Regional focus
Our vision

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Mobile Market Share Analysis: Significant Differences by Geographic Area
Population in million people
Source: Anatel, April of 2017
SP Cap
32.8%
30.2%
20.3%
12.8%
SP Int
RJ/ES
MG
36.2%
23.4%
23.0%
12.4%
BA/SE
31.4%
24.5%
24.1%
20.1%
NE
33.7%
30.8%
26.5%
9.0%
NO
38.8%
27.3%
19.9%
14.0%
CO
36.9%
33.8%
15.6%
13.4%
PR/SC
54.0%
19.3%
17.2%
9.2%
RS
46.1%
29.1%
14.1%
10.6%
BRAZIL
30.6%
25.3%
24.8%
17.4%
TIM: 2nd place
TIM: leader
TIM: 3rd place
TIM: 4th place
35.6%
31.5%
14.1%
14.0%
37.5%
32.4%
19.4%
8.0%
Market share analysis
for the whole country
can be misleading

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A UNIQUE PROPOSITION TO PLAY
THE HIGH POSTPAID GAME
Largest
coverage
NEW POSITIONING: THE EVOLUTION OF POSTPAID
Best offers
• Differentiated
data packages
• Unlimited voice
• Digital services
• Discounts on
Smartphones
Customer
Experience
• Differentiated
caring
Partnerships

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1Q17 Results

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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

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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

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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

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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

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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

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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: Anatel and CSI Model by CFI Group. From October to December, 2016.
Already #1
in Controle
Source: Teleco website (other players)

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Transport Network Evolution
Transport Network (LD+Metro)
Metropolitan Backhaul:
~28 thousand Km
Network 2015
Network 2016
Network 2017 – 2018 – 2019
LD BACKBONE EVOLUTIONCOVERAGE DENSITY
(Km of fiber)
~0k
15k
20k
26k
44k
52k
66k
76k
2009 2010 2011 2012 2013 2014 2015 2016
Long Distance Backbone:
~48 thousand Km
From: 2010 (after Intelig Acquisition) To: 2019 (after massive expansion from 2014 till 2016)
Network 2010
~15k Km ~48k Km

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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

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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

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10.88%
12.49%
12.03%
12.24%
14.37%
12.82%
1Q15 1Q16 1Q17
Short term
debt
 Better Profile: Less Short Term Debt
Debt by Lender in 1Q17
(% of gross debt; post hedge)
Debt Position
(R$ mln; % of total debt in short term)
Cash Position
(R$ mln)
 Comfortable liquidity margin
18%18% 15%
 Higher cash yield and debt cost due to CDI increase in the period
 Bigger gap between cash yield and debt cost due to smaller cost of
new loans
Cash Yield vs. Debt Cost
(% per year)
Net Financial Position
(R$ mln)
Δ: 79 bps
Cash yield
Debt cost
Net debt/
EBITDA 12M
0.54x0.56x 0.82x
¹ Leasing from Towers Sale + LT Amazonas
Net Financial Position Details: Cash & Debt Evolution
3,550
4,384
4,061
1Q15 1Q16 1Q17
6,669
7,860
8,433
1Q15 1Q16 1Q17
3,119
3,476
4,372
1Q15 1Q16 1Q17
BNDES
68%
Leasing¹
19%
BEI
7%
Others
7%

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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
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:
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
Offers: New offers continue to reshape customer base and usage profile
Financials:
Revenues and EBITDA positive growth in every quarter
FCF growth to be continued

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Regulatory Update

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Brazilian Spectrum - Caps and Distribution
Band 850 MHz 900 MHz 1.800 MHz 2.100 MHz 2.500 MHz 700 MHz
Regulated Spectrum Cap
(FDD Applications)
(12.5+12.5)
MHz
(2.5+2.5)
MHz
(25+25)
MHz
(15+15)
MHz
(30+30)
MHz
(20+20)
MHz
Global Cap of 80 MHz < Σ of Sub-Caps Specific Caps
4G Spectrum
3G Spectrum
1 Disregarding P Band (2.550 to 2.510 MHz / 2.620 to 2.630 MHz).
1,800 MHz900 MHz850 MHz 2,500 MHz ¹2,100 MHz 700 MHz
11
18
21
5
5
4
3
43
35
29
26
24
22
25
29
20
20
40
40
20
20
20
0 20 40 60 80 100 120 140
Oi
TIM
Claro
Vivo
11
18
21
5
5
4
3
20
24
22
25
29
Nextel
Oi
TIM
Claro
Vivo
14
35
20
40
40
20
20
20
20
Nextel
Oi
Claro
Vivo
TIM

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2Q17
May JuneApr
1Q17
Feb MarJan
700 MHz
• Analog Switch Off
in Goiânia/GO.
Acessibility
• New resolution
expected to enter
into force .
Quality
• ANATEL begins
Regulatory Impact
Analysis about
the KPI and new
quality resolution.
Concessions
• New Concession
Contracts and
PGMU for 2016-2020
period expected to
be published..
PGO
• Deadline of the
public consultation
regarding new PGO,
authorization
agreement and
relevant subjects to
the sector
Internet of Things
• Public
Consultation to
discuss the key
topics for the
viability of IoT in
Brazil (lauched by
BNDES and
MCTIC).
PLC 79/16
• Bill of Law returns
for the Senate
analysis.
Poles
• Public
Consultation
ANATEL/ANEEL
for sharing poles
Interconnection
regulation
• Deadline of the
Public Consultation
General Plan on
Competition Targets
• Deadline of the
Public Consultation
for the Relevant
Markets quadrennial
evaluation
700 MHz
• Analog Switch Off in
São Paulo
700 MHz
• EAD’s 2nd and
3rd payment
Concessions
• New contracts
and PGMU
approved by
ANATEL, for
2016-2020
period
(Dec 31st, 2016)
Fixed Broadband
• ANATEL begins
Regulatory
Impact Analysis
about blocking.
2017/2018
Regulatory
Agenda
• Published
Anatel biannual
Agenda, with 58
sector priorities.
, including,
spectrum,,
quality,
regulatory
framework
review,
reversible
assets and
competition.
700 MHz
• 700MHz in
Brasilia - DF.
Main Regulatory Topics

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Investor Relations
Strategic Plan 2017-19

31
Investor Relations
A Strong Start Towards 2019
2017-19 New Positioning
Postpaid
(% of total base)
23.5%
(+3 pp YoY)
ARPU
(in 4Q16)
R$19.2
(+9% YoY)
EBITDA Margin
(in FY2016)
33.5%
(+2 pp YoY)
Innovative Revs.
(in FY2016)
+20%
YoY
2016 Turnaround Evidences
Quality
Price
2008
2012
Quality
Price
As is: 2008-2016 To be: 2017-2019
2017-19
Today
Commercial
Turnaround
Improve our brand positioning in order to become the
preferred option for Postpaid customers and
confirming our leadership on prepaid leveraging on the
quality of our Network and new offer schemes
Introduction of digital services bundled in the offers
through the development of strategic partnerships with
OTTs and content players
Develop a Convergent n-Play offer expanding the
existing TIM Live FTTX coverage in Rio and São
Paulo, exploiting the 700MHz LTE/WTTx coverage
and also establishing partnerships to create 4P
convergent offers (e.g. SKY)
Adapt commercial strategy to implement a
regional approach exploiting our different market
position and redesign go to market
Leader in
4G
coverage
(1,255 cities)

32
Investor Relations
72%59%
74%
~90%
95%
2015 2016 2017e 2018e 2019e
Deploying a Faster and Wider Broadband Network
Cities covered
Population covered
(%)
(# of cities)
4G 3G
2016-2018 Plan (Feb 2016)
2017-2019 Plan
2016-2018 Plan (Feb 2016)
2017-2019 Plan
82%
84%
89%
92%
2015 2016 2017e 2018e 2019e
700MHZ
1,839
2,833
~3,200
2015 2016 2017e 2018e 2019e
South and southeast: additional 1,800MHz spectrum availability in
2017 to boost speed and customer experience
North, northeast and middle east: beginning of the 700MHz
frequency roll out will guarantee more capacity and better coverage
3G coverage evolution will support customers
adopting data services and customers that are
not using 4G yet
411
1,255
>2,000
~3,600
2015 2016 2017e 2018e 2019e

33
Investor Relations
2015 2016 2017e 2018e 2019e
63.8
61.6
2015a 2016e 2017e 2018e 2019e
Mobile Market Scenario & TIM Revenue Share Evolution
Customer base mix
Mobile Market & TIM Revenue Share*
(Mobile Service Net Revenues; R$ bln; %)
ARPU Trend
(R$)
Best “value for
money”
positioning will
support
Revenue share
rebound
16.7
18.0
2015 2016 2017e 2018e 2019e
-3.4%
Mobile
Market
Revenues
TIM
Revenue
Share
*TIM Revenue Share and Mobile Market
Revenues consider Revenues from top 5
players, including SME
CAGR ~+3%
~23% ~23%
~25%
Prepaid
PostpaidPostpaid
mix
21%
66.2 mln
>35%
>60 mln
(customers)
Mobile
Convergence in SP/RJ
and Selected Regions
Fixed
Voice
Mobile
Voice
On + Off
Data
Messaging
(SMS +
WhatsApp)
Innovative Revenues will support total ARPU growth

34
Investor Relations
10.4
~11.711.7
>12
2015 2016 2017e 2018e 2019e
Efficiency: Executing on Plan
Normalized OPEX Evolution
(R$ bln)
Efficiency Plan Evolution vs 2015FY
(R$ bln)
-1.1
FlatImproving
efficiency
High
delivery
Efficiency Plan Highlights
High delivery: from R$1.7 bln in savings to
R$2.0 bln (2016-18)
Continuous efficiency: expanding target to
R$2.3 bln at 2019
Flat Opex 2019 vs. 2015 despite inflation
2016-2018 Plan (Feb 2016)
2017-2019 Plan
Normalized by non-organic events
A
C
B
C
B
A
11.7 -1.2
10.4
-0.5
-0.6
2015FY Inflation &
Structural
Growth
Volume
Driven
Savings 2016FY Inflation &
Structural
Growth
Volume
Driven
Completion
of 2016-
2018 Plan
Added in
2017-2019
Plan
2019FY
0.7 0.7
1.7
1.0
0.3
0.3
2.3
Old Plan 18
vs 15
July Plan
Update 18
vs 15
New Plan
18 vs 15
2019
Additional
Efficiency
New Plan
19 vs 15
1.7
2.0
~11.7

35
Investor Relations
Improving Profitability and Cash Generation
Capex Plan
(R$ bln)
2017-19
<12 bln
2016-18
~12.5 bln
EBITDA-Capex
(R$ bln)
Consistent Growth in Profitability: improving EBITDA Margin and
Free Cash Flow
Run Rate Cash Cost Reduction supported by efficiency program,
offsetting Inflation and Structural Growth Impacts
Significant Capex Reduction even though a Strong Upside in
Network Coverage: Capex optimization and contracts negotiations
Normalized EBITDA Margin
(%)
2016-2018 Plan (Feb 2016)
2017-2019 Plan
Normalized by non-organic events
4.5
3.8
4.7
2015 2016 2017e 2018e 2019e
EBITDA
Capex
95% of urban pop.:
4G Coverage Completion
4.7 4.5
5.4
5.2
2015 2016 2017e 2018e 2019e
31.5%
33.5%
>36%
2015 2016 2017e 2018e 2019e

36
Investor Relations
2017-2019 Strategic Plan Guidance Summary
KPIs Short Term
Targets
Positive in
all quarters
Service Revenues
(Mobile)
EBITDA
EBITDA-Capex
(% on revenues)
Revenue share
~25% in 2019
EBITDA Margin
>36% in 2019
Long Term
Targets
> 15%
< R$12 bln 2017-19 period
3G/4G Coverage >92%
Capex ~R$4 bln
-5%
4.5 bln
~4%
-3%
2016
High single
digit
Industrial Plan events:
February 6: New York
and
February 9: São Paulo

37
Investor Relations
Appendix

38
Investor Relations
1Q13 1Q14 1Q15 1Q16 1Q17
24.0%
24.6%
25.53%
24.2%
31.7% 31.6%
16.9% 17.1%
1Q16 2Q16 3Q16 4Q16 1Q17
32.5% 27.6%
41.3%
34.5%
15.4%
21.1%
10.7%
15.2%
2Q16 3Q16 4Q16 1Q17
Source: Anatel
3G 4G
Mobile Market Share TIM Postpaid Base Evolution
(% over customer base)
Nextel
Oi
Claro
TIM
Vivo
26.1%
25.5%
25.3%
24.8%
28.4%
30.5%
18.5%
17.2%
15.0%
17.0%
19.0%
21.0%
23.0%
25.0%
27.0%
29.0%
31.0%
1Q16 2Q16 3Q16 4Q16 1Q17
Market Share
per Technology
17.2%
16.5%15.3%
Mobile Base Analysis
24.8%
20.1%

39
Investor Relations
Total Mobile Base Overview
Base (000) 61,349 74,074 60,208 42,082 2,607 2,016 242,335
Δ MoM -0.8% 0.1% 0.0% 0.0% 0.2% 0.3% -0.2%
Δ YoY -7.6% 1.1% -7.1% -11.8% 5.5% 11.4% -5.5%
Market Share 25.32% 30.57% 24.84% 17.37% 1.08% 0.83%
Δ MoM(p.p.) -0.17 0.09 0.03 0.03 0.00 0.00
Δ YoY(p.p.) -0.6 2.0 -0.4 -1.2 0.1 0.1
Net Adds (000) -519 77 -29 4 6 6 -455
Δ MoM 96.2% -8.2% -243.1% -92.1% -122.3% -3.5% 253.7%
Δ YoY -42.0% 12923.6% -93.8% -106.3% -84.6% -45.5% -67.1%
Net Share -114.1% 17.0% -6.4% 0.9% 1.2% 1.3%
Δ MoM(p.p.) 91.6 -48.5 -22.1 -38.1 20.7 -3.6
Δ YoY(p.p.) -49.3 17.0 27.8 5.5 -1.4 0.5
Net YTD (000) -2,069 296 37 -56 19 42 -1,732
Δ YoY -1573.6% 10348.1% -103.2% -85.0% -152.7% -6.2% 25.0%
Net Share YTD -119.5% 17.1% 2.1% -3.2% 1.1% 2.4%
Δ YoY(p.p.) -129.6 16.9 86.0 23.9 3.7 -0.8
Source: Anatel.
TOTAL
TOTAL BASE
NEXTEL OTHERSTIM VIVO CLARO OIApril-17

40
Investor Relations
Total Postpaid Base Overview
Base (000) 15,441 34,066 18,553 9,231 2,601 997 80,889
Δ MoM 0.7% 0.7% 0.2% 0.1% 0.2% 0.4% 0.5%
Δ YoY 13.6% 8.5% 10.0% 3.7% 5.3% 23.0% 9.3%
Market Share 19.09% 42.11% 22.94% 11.41% 3.22% 1.23%
Δ MoM(p.p.) 0.04 0.08 -0.07 -0.04 -0.01 0.00
Δ YoY(p.p.) 0.7 -0.3 0.1 -0.6 -0.1 0.1
Net Adds (000) 115 241 37 13 5 4 415
Δ MoM -24.1% 34.4% -43.8% -200.0% -120.6% -48.7% 13.8%
Δ YoY 150.1% 93.5% -10769.1% -86.0% -85.3% -72.3% 31.2%
Net Share 27.6% 58.0% 8.8% 3.2% 1.3% 1.1%
Δ MoM(p.p.) -13.8 8.9 -9.0 6.8 8.4 -1.3
Δ YoY(p.p.) 13.1 18.7 8.9 -26.6 -10.2 -3.9
Net YTD (000) 560 675 241 -7 16 37 1,521
Δ YoY 4202.0% 118.2% 10.2% -103.6% -145.0% -26.2% 100.1%
Net Share YTD 36.8% 44.4% 15.9% -0.5% 1.1% 2.4%
Δ YoY(p.p.) 35.1 3.7 -12.9 -27.5 5.8 -4.1
Net Adds (ex-M2M) (000) 117 154 6 -25 5 0 257
Δ MoM -22.2% 93.3% -117.9% 8.7% -120.6% -125.6% 77.8%
Net Share (ex-M2M) 45.5% 59.7% 2.4% -9.8% 2.1% 0.1%
Δ MoM(p.p.) -58.4 4.8 26.6 6.2 20.1 0.8
Source: Anatel.
CLARO OI NEXTEL OTHERS
POSTPAID BASE
TOTALApril-17 TIM VIVO

41
Investor Relations
Total Prepaid Base Overview
Base (000) 45,908 40,008 41,654 32,851 5.67 1,019 161,446
Δ MoM -1.4% -0.4% -0.2% 0.0% 4.3% 0.2% -0.5%
Δ YoY -13.0% -4.5% -13.1% -15.3% 1086.8% 2.0% -11.5%
Market Share 28.44% 24.78% 25.80% 20.35% 0.00% 0.63%
Δ MoM(p.p.) -0.24 0.03 0.10 0.10 0.00 0.00
Δ YoY(p.p.) -0.5 1.8 -0.5 -0.9 0.0 0.1
Net Adds (000) -634 -163 -66 -9 0.23 2 -870
Δ MoM 52.5% 72.3% 46.4% -114.5% -76.4% -177.9% 76.4%
Δ YoY -32.6% 31.9% -86.1% -94.2% 337.7% -137.3% -48.8%
Net Share -72.8% -18.8% -7.5% -1.1% 0.0% 0.2%
Δ MoM(p.p.) 11.4 0.4 1.5 -13.9 -0.2 0.6
Δ YoY(p.p.) -17.5 -11.5 20.2 8.2 0.0 0.5
Net YTD (000) -2,629 -379 -204 -49 2.71 5 -3,254
Δ YoY -2163.2% 23.6% -85.2% -91.6% 1694.0% -200.1% 51.7%
Net Share YTD -80.8% -11.6% -6.3% -1.5% 0.1% 0.2%
Δ YoY(p.p.) -86.7 2.6 58.1 25.6 0.1 0.4
Source: Anatel.
PREPAID BASE
TOTALNEXTEL OTHERSApril-17 TIM VIVO CLARO OI

42
Investor Relations
Total Voice & Data (modem+M2M) Postpaid Base Overview
Voice Data Voice Data Voice Data Voice Data Voice Data Voice Data Voice Data
Base (000) 13,495 1,946 26,651 7,415 12,503 6,050 7,703 1,528 2,548 54 510 487 63,410 17,479
Δ MoM 0.9% -0.3% 0.8% 0.5% 0.5% -0.4% -0.3% 2.3% 0.3% -5.1% 0.1% 0.8% 0.6% 0.3%
Δ YoY 14.3% 9.0% 10.2% 3.1% 16.9% -2.0% 3.2% 6.3% 8.1% -53.1% 18.0% 28.6% 11.3% 2.4%
Market Share 21.28% 11.13% 42.03% 42.42% 19.72% 34.62% 12.15% 8.74% 4.02% 0.31% 0.80% 2.78%
Δ MoM(p.p.) 0.07 -0.07 0.07 0.12 -0.02 -0.23 -0.11 0.18 -0.01 -0.02 0.00 0.02
Δ YoY(p.p.) 0.5 0.68 -0.4 0.32 0.9 -1.53 -1.0 0.32 -0.1 -0.36 0.0 0.57
Net Adds (000) 121 -7 201 39 61 -24 -21 35 8 -3 0 4 371 44
Δ MoM -23.2% -4.8% 51.5% -14.6% 362.9% -147.1% 11.4% 473.0% -137.1% -23.2% -226.0% -56.0% 41.4% -57.1%
Δ YoY 857.3% -120.4% 89.0% 119.9% 2.3% -59.3% -133.0% 17.4% -80.7% -54.6% -95.7% -22.5% 24.9% 128.7%
Net Share 32.7% -15.4% 54.2% 90.1% 16.5% -55.8% -5.8% 78.8% 2.2% -6.6% 0.1% 8.9%
Δ MoM(p.p.) -27.6 -8.5 3.6 44.9 11.4 -106.7 1.6 72.9 10.7 -2.9 0.3 0.2
Δ YoY(p.p.) 28.4 -188.4 18.4 -3.6 -3.6 257.5 -27.6 -74.8 -12.2 26.6 -3.5 -17.4
Net YTD (000) 539 21 528 148 227 14 -30 23 30 -14 -17 53 1,277 244
Δ YoY -1113.3% -68.7% 54.3% -553.1% -49.5% -106.2% -119.3% -55.9% 692.6% -65.7% -142.2% 418.9% 36.5% -239.6%
Net Share YTD 42.2% 8.5% 41.3% 60.3% 17.8% 5.8% -2.3% 9.2% 2.3% -5.6% -1.3% 21.7%
Δ YoY(p.p.) 47.9 -29.3 4.8 78.9 -30.3 137.4 -18.8 -19.9 1.9 17.1 -5.5 15.9
Source: Anatel.
NEXTEL OTHERS TOTAL
VOICE AND DATA (M2M+MODEM) POSTPAID BASE
Abril-17
TIM VIVO CLARO OI

43
Investor Relations
Source: Anatel
Fixed Broadband - TIM Live area
Base (000) 326.3 1,533 2,448 751 115 5,173
Δ MoM 1.2% -1.3% -0.2% 0.0% 1.8% -0.4%
Δ YoY 23.1% 2.0% -0.3% 0.2% 49.1% 2.5%
Market Share 6.31% 29.62% 47.33% 14.51% 2.23%
Δ MoM(p.p.) 0.10 -0.27 0.07 0.06 0.05
Δ YoY(p.p.) 1.06 -0.1 -1.3 -0.3 0.7
Net Adds (000) 3.9 -19.7 -5.5 0.2 2.1 -19.0
Net YTD (000) 20.5 8.5 -7.7 0.7 16.9 38.8
Source: Anatel.
OI
TOTAL BASE
TOTALApril-17 OTHERSTIM VIVO

44
Investor Relations
Source: Teleco (TIC Households, 2015)
Household Penetration Users per Age Group
Brazil Facts
Source: PNAD – 2014 (IBGE)
94.5%
97.1%
67.7%
91.2%
88.1%
69.2%
20.2%
40.5%
45.4%
35.3%
2007 2008 2009 2010 2011 2012 2013 2014 2015
TV
Mobile
Phone
Radio
Computer
w/ internet
Fixed Phone
Mobile
Phone
Internet
84%
68%
85%
20%
10-15 yrs 16-24 yrs 25-34 yrs 35-44 yrs 45-59 yrs 60 yrs or
more
Brazil’s specifics
 8.3% of Brazilian
above 15 years are
illiterate
 Southwest region
accounts for 55% of
GDP
 30 mln people still
live in the rural areas
 Brazil is in the 9th
position in terms of
GDP
 Average Brazilian
age: 32 years
 73 mln Brazilian
between 30 and 60
years

45
Investor Relations
• A longer then expected
process of fiscal adjustments
and a greater level of
uncertainties in politics
continues to trim economic
activity
• Government and market
consensus have postponed a
resume in GDP growth to 2017
• Following new government
commitment to converge
inflation to its target in 2017
market expects an important
decrease in interest rates
• Interest rate have its reduction
path and the Central Bank
projection is to reach 8.50% in
the of 2017
Source: IBGE, Central Bank Inflation report (as of Dez/16) for Government Estimates and Bloomberg
GDP Forecast
(% YoY growth)
Inflation Forecast
(% IPCA - 12 months)
Interest Rate Forecast
(% Selic Target p.y. - year end)
FX Rate Forecast
(R$/U$ - end of period)
Market Consensus
Government Estimates
Macro scenario outlook
0.50
2.20
2.80
0.20
-3.80 -3.60
0.60 2.10
2013a 2014a 2015a 2016a 2017e 2018e
3.80
4.50
6.20 6.30
10.70
6.29
4.00
4.50
2013a 2014a 2015a 2016a 2017e 2018e
8.50 8.50
10.00
11.75
14.25
13.75
8.65 8.50
2013a 2014a 2015a 2016a 2017e 2018e
3.30 3.40
2.40
2.70
4.00
3.25 3.31 3.40
2013a 2014a 2015a 2016a 2017e 2018e

46
Investor Relations
Tax Burden Composition
(R$ mln in 2016)
Tax Burden over Net Revenues
(over mobile phone services - voice)
Source Teleco study of July 2014
Tax Burden
7,621
PIS/COFINS ICMS FUST/ FUNTTEL FISTEL/ Others IR/CSLL Total
34% over Gross
Revenues
*
*CPMF, IOF, INSS and others

47
Investor Relations
Historical Data: P&L

48
Investor Relations
Historical Data: Operational

49
Investor Relations
Historical Data: Cash Flow

50
Investor Relations
Stock Performance (base 100)*
Year to date
*Last price as of 05/31/2017
Source: Bloomberg
Structure and Stock Performance
Shareholders Structure
Treasury Shares: 795,888 (0.03%)
Total Shares: 2,421,032,479
75
100
125
150
175
May-16 Aug-16 Nov-16 Feb-17 May-17
TSU
+44.5%
TIMP3
+26.3%
Ibovespa
+29.8%

51
Investor Relations
Investor Relations Team
Avenida João Cabral de Melo Neto, n 850, South Tower,
12th floor – Barra da Tijuca
22775-057 Rio de Janeiro, RJ
E-mail: ri@timbrasil.com.br
Rogério Tostes
E-mail: rtostes@timbrasil.com.br
Phone: +55 21 4109-3742
Vicente Ferreira
E-mail: vdferreira@timbrasil.com.br
Phone: +55 21 4109-3360
Pedro Yagelovic
E-mail: pybsantos@timbrasil.com.br
Phone: +55 21 4112-6990
Rafaela Gunzburger
E-mail: rgunzburger@timbrasil.com.br
Phone: +55 21 4112-5119
Luiza Macedo
E-mail: ldcmacedo@timbrasil.com.br
Phone: +55 21 4112-6828
Visit our Website
www.tim.com.br/ir
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.
Safe Harbor and IR Contacts
Safe Harbor Statements

52
Investor Relations

TIM Meeting with Investors - jun 2017

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