1) TIM Brasil has accomplished a turnaround in the last two years, with fundamentals strengthened around its brand, customer base growth, drivers of growth, and financial performance. 2) Key achievements include market share growth, increased mobile internet usage, revenue growth combined with profitability gains, and improved network capacity. 3) Brand metrics like preference and top of mind awareness have increased significantly versus competitors, demonstrating the success of TIM's repositioning around quality, innovation, and convenience.

1. 4Q10 & FY2010 Investor Relations
Results Presentation Rio de Janeiro 21 Feb 2011
Janeiro, Feb.

2. Agenda
Results in Summary – Luca Luciani
Turnaround Accomplished – Lorenzo Lindner
Financial Results 4Q10 – Claudio Zezza
Strategy – Rogério Takayanagi
Perspectives – Luca Luciani
1

3. 2010 Summary
IFRS Brazil, R$ Mln
Guidance Q4 10 FY 2010
Compliance Δ YoY Δ YoY
Customer Base 51.0
51 0 Mln +24%
• Market Share 25.1% +150 bps
Growth • Incremental Market Share 34.2%
Net Revenues 3,926 +9.9% 14,457 +5.2%
• Service Revenues 3,627 +6.0% 13,572 +6.1%
EBITDA Margin 30.6%
30 6% +20 bps 29.0%
29 0% +320 bps
• EBITDA 1,201 +10.7% 4,194 +18,4%
• EBIT 515 +46.4% 1,200 +136%
• Net Income 2,212
2 212 +176%
Operating FCF 1,372 +110%
Profitability • Cashflow (EBITDA – CAPEX) 1,358 +62%
• CAPEX 2,836
2 836 +4.9%
+4 9%
• CAPEX as % of Sales 19.6% -10 bps
• Net Financial Position 984 -700
• Net Debt to EBITDA 0,23x
2

4. Agenda
Results in Summary – Luca Luciani
Turnaround Accomplished – Lorenzo Lindner
Financial Results 4Q10 – Claudio Zezza
Strategy – Rogério Takayanagi
Perspectives – Luca Luciani
3

5. TIM Brasil – 2 years later
Fundamentals Strategy Achievements
Brand “Quality, Innovation, Convenience” • Top of Mind
• High Preference Low Rejection
Preference,
Customer Base Leverage TIM Community • Inverted erosion trend both in Pre-paid
and Post-paid
• L di g incremental market share
Leading i t l k t h
Drivers of Growth TIM’s value proposition distinctiveness: • ~2 x MOU vs Q1 09 (129 minutes)
• Voice: Long unlimited call concepts: “One Nation • Leading Long Distance segment (volume)
One Tariff” (Long Distance)
Tariff • Infinity web: 4x daily unique users in 4
• Data: Unlimited concepts: foster smartphone months (prepaid)
penetration in a “no subsidy frame”
Financials Combine Growth with Profitability: • +18% Ebitda growth while Customer
• Revenues rebounded and re-mixed (out vs. in) Base +24%
• Focus on cash generation • Boosting business generated (out-calls,
data) while reducing business received
(incoming)
• EBITDA – CAPEX at R$ 1.4 Bln (+62% YoY)
Network • Integrate Intelig Network, and start a new • TIM’s leased lines cost flattish vs. MOU
Turnaround and data jump
• Focus resources on core business • Intelig Revenues +37% YoY
(Network vs. Commercial) • +50% GSM capacity vs. YE 2008
• 10x 3G cities covered 4

6. Brand Repositioning – Preference and Top of Mind
Brand Preference Top of Mind
%
ΔYoY
Preference 28 31
25 25
#1 Player 1 30 +6pp
#3 29
23
22 28
21 27
-2pp
2pp
10 18 25
6
23
Player 2 22
#4 16 22
21
-2pp
15 15 15
Player 3
y
#1 20
20 -2pp
2
Rejection 11
10
H1 08
1H08 H2 08
2H08 H1 09
1H09 H2 09
2H09 H1 10
1H10 H2 10
2H10 2008 2009 2010
Preference Rejection: Innovation and Offering
YE’10 YE’10 YE’10 TIM 39
28 28 16
6
Network P1 39
15
14 Quality P2 23 #1
20
30 18
20 16
P3 17
10
25
14
20 12
TIM 40
10
P3 25
#1
15
Innovation P1 24
8
23
10 6
4
P2
5
2
0 0 TIM 43
P3 23
Player 2 Player 3 Player 1 Player 2 Player 1 Player 3 Convenience P1 22 #1
P2 21
5
Source: Image Survey 13° wave, November/10

7. Customer Base Market Share Recovery
Customer Base– Inverted erosion trend Market Share (Total and Incremental)
Mln lines EoP, % % lines EoP
Incremental 51.0
51 0 Vivo 30.9% Leader in Incremental
L d i I l
Market Share Share 2010 (%)
46.9
44.4 29.7% 34% 30% 25%
41.1 42.4
0
11%
0
39.6 25.9% 25.4%
0
37.8
0
0
35.2 36.4 36.1 Claro 25 0% 25.1%
0
33.8
33 8 40%
25.0% 0
0
32.5 34% 36% 24.2% 0
29% 23.6%
27% 27% 24% TIM Vivo Claro Oi
17% 18% 19%
19.4%
12% Inversion of Market
-10% Share erosion trend Oi 17.9%
2007 2008 2009 2010
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10
Commercial Efficiency Customer Base Quality (Postpaid Base and Bad Debt)
R$ Mln lines, % of Gross Total revenues, mobile
85 7.5
~ -10% 7.2
SAC* ~ +20% 6.9
-36% 54 6.8 6.8 6.8
6.6 6.6 Inversion of High
6.5
6% 6.2 6.3 Value Base erosion
6.2
SAC*/ 3.2 trend
5%
ARPU 3%
-29% 2.3 3% 3% 2%
Bad debt 2% 2% 2% 2%
% Gross Rev. 1% 1%
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10
2009 2010
*SAC = Subsidy + Commision + Advertising 6
Note: Bad Debt/ Revenues – BRGAAP for 2008 and IFRS Brazil for 2009 and 2010

8. Drivers of growth
Infinity / Liberty Voice Outgoing – double digit Revenues growth
Min/month/user Gross Revenues, % YoY
Q4 + 11%
129 Local
Q4 10 +11% FY
99
14 0
MOU 12 0 + 10%
100 MOU Outgoing:
On-net 2x - Q4 10 vs.Q1 09
Out
80
60
Q4 + 10%
LD
40
Off-net FY 10 + 13% FY
In
20
0 +22%
Q4 09 Q4 10
Infinity Web – Pre-Paid Data Mobile – Acceleration as of Christmas Campaign
‘000 unique users per day Gross VAS Revenues, % YoY % of Net Service Revenues
>1 MlMln 0
unique Q4 10 +31% 13% 0
daily users
Data Take-up x4
0
11% 0
0
+ 0
FY 10 18% 0
22 Ago 29 Jan Q1 10 Q2 10 Q3 10 Q4 10
2010 2011
Handsets Push Smartphone penetration in
Million h d t
Milli handsets, sold
ld Active Users per month a low subsidy
2.6
3
% Customer Base R$ Mln
Total 3
18%
Handsets 1.7 +54% 0
x2
Smartphones
2
0
Product 299
Revenues 150
0
15%
2
Penetration
0
13%
1 0
Unit b id
U it subsidy -24%
24% 43
40%
0
Smart- 20% x2 1
0
phones 0
0
0
(R$ / 5 7
Q4 09 Q4 10 0 handset)
June Set Dec Q4 09 Q4 10
7

9. Revenues and Profitability
IFRS Brazil
Revenues EBITDA and Margin %
Net Revenues, R$ Bln EBITDA, R$ Bln
14.4 29,0%
+5.2% +320bps
Total 13.7 EBITDA 25,8%
Revenues Margin %
4.2
15
13.6
15
12.7
12 7 +6.1% 14
14
Service
13
3.5 +18%
EBITDA
13
Revenues 12
12
11
2009 2010 2009 2010
Cashflow (EBITDA - CAPEX) Net Financial Position
R$ Bln R$ Bln
9% 0.47x
% of Net 6% Net Debt /
Revenues EBITDA 0.23x
1.36 1.68
2
+62%
62%
1 2
1
0.98
1
0.84 -0.7
1
1
EBITDA - Net Debt
1
1
1
1
CAPEX 1
1
1
1
1
1
0
2009 2010 2009 2010
Operating
FCF 654 +110% 1,372
8

10. Strenghtening Network Infrastructure
IFRS Brazil
CAPEX Mix 2G - Capacity 3G – Coverage
R$ Bln # ‘000 TRX
2.7 2.8
Capital
Commercial 33% 19% allocation
54%
32%
% urban 19%
Infrastructure 67% 81% +50% population 210
coverage
g
120
110
100
90
57
2009 2010 80
# cities
23
70
CAPEX/ 19.7%
19 7% 19.6%
19 6% 60
Sales 2008 2009 2010 2008 2009 2010
Intelig successfully integrated Intelig Revenues Revamping Network Opex Efficiency
YoY growth; 2010 vs 2009
g ; Network and ITX Cost (R$ Bi, % YoY)
( , )
+ 37%
+ 26% + 29% Annual +0.3%
(4,227)
+ 15%
> 16.000 km
backbone 4Q10 +0.1%
MAN at 15 (1,084)
cities
Q1 Q2 Q3 Q4
9

11. Agenda
Results in Summary – Luca Luciani
Turnaround Accomplished – Lorenzo Lindner
Financial Results 4Q10 – Claudio Zezza
Strategy – Rogério Takayanagi
Perspectives – Luca Luciani
10

12. Switching towards IFRS
Q1 Q2 Q3 Q4 FULL YEAR
Mln R$
2010 2009
abs.
YoY
% YoY 2010 2009
abs.
YoY
% YoY 2010 2009
abs.
YoY
% YoY 2010 2009
abs.
YoY
% YoY 2010 2009
abs.
YoY
% YoY VS. Guidance
Net Revenues 3.296 3.198 98 3,1% 3.559 3.512 47 1,3% 3.677 3.466 211 6,1% 3.926 3.571 354 9,9% 14.457 13.747 710 5,2%
of which Services 3.176 3.009 167 5,6% 3.350 3.144 206 6,6% 3.418 3.213 205 6,4% 3.627 3.422 205 6,0% 13.572 12.788 784 6,1% >5%
IFRS of which Handsets 120 189 (69) -36,7% 209 368 (159) -43,2% 259 253 6 2,3% 299 150 149 99,6% 886 959 (73) -7,6%
*
EBITDA 947 715 232 32,5%
32 5% 1.010
1 010 864 146 16,9%
16 9% 1.035
1 035 877 158 18,1%
18 1% 1.201 1.086
1 201 1 086 116 10,7%
10 7% 4.193
4 193 3.541
3 541 652 18,4%
18 4%
Ebitda Margin % 28,7% 22,4% 28,4% 24,6% 28,2% 25,3% 30,6% 30,4% 29,0% 25,8% >4 Bln
Capex 689 322 368 114,4% 520 535 (15) -2,7% 526 692 (166) -24,0% 1.100 1.154 (54) -4,7% 2.836 2.702 134 4,9%
EBITDA - Capex 258 393 (136) -34,5% 490 329 161 49,0% 509 185 324 175,5% 101 (68) 169 -247,8% 1.358 839 519 61,9% ~3 Bln
Consistency in Growth/ Profitability
Improvement during the Quarters
Q1 Q2 Q3 Q4 FULL YEAR
abs. abs. abs. abs. abs.
2010 2009 % YoY 2010 2009 % YoY 2010 2009 % YoY 2010 2009 % YoY 2010 2009 % YoY
Mln R$ YoY YoY YoY YoY YoY
Net Revenues 3.269 3.174 96 3,0% 3.531 3.486 45 1,3% 3.648 3.440 208 6,1% 3.894 3.542 352 9,9% 14.342 13.641 701 5,1%
of which Services 3.146 2.985 161 5,4% 3.317 3.118 199 6,4% 3.387 3.186 201 6,3% 3.592 3.386 205 6,1% 13.442 12.675 767 6,1%
>5%
Br *
of which Handsets 124 189 (65) -34,5% 213 368 (155) -42,1% 261 254 7 2,8% 303 156 147 94,4% 900 967 (66) -6,8%
Gaap
EBITDA 810 618 191 30,9% 887 764 123 16,1% 924 772 152 19,6% 1.132 982 150 15,3% 3.752 3.136 616 19,6% >25%
Ebitda Margin %
g 24,8% 19,5% 25,1% 21,9% 25,3% 22,5% 29,1% 27,7% 26,2% 23,0%
Capex 576 201 375 186,7% 436 429 7 1,6% 463 541 (78) -14,3% 1.072 1.003 69 6,8% 2.547 2.174 373 17,2%
EBITDA - Capex 234 418 (184) -44,0% 450 335 116 34,6% 461 232 229 99,0% 60 (22) 81 -376,0% 1.205 962 243 25,2%
~2.5 Bln
* 2009 IFRS includes Intelig Proforma 11
Note: Key difference between BRGAAP and IFRS is in the capitalization of handsets subsidy.

13. Revenues Analysis
IFRS Brazil FY10 vs. FY09
Q410 vs. Q409
Gross Service Revenues
Outgoing voice double-digit solid growth (FMS)
double digit YoY Growth, %
+30%
Data take-up over 30% YoY in Q4 +8,2% +19% +10%
+7,8% +9%
Intelig accelerating
TIM Intelig
g Total
Acceleration of handsets sales to support data Mobile +31%
roll-out (small-screen browsing) +13%+11% +18%
Voice In Others
Higher discounts to support SIM-only strategy in Voice Data
postpaid Out -8% -6% -11%
-41%
Net Revenues Service Revenues
YoY Growth, % YoY Growth, %
Total Net + 5.2% + 8.5%
Gross
Revenues + +9.9% + + 9.5%
-7.6% +
Taxes and 15.1%
Handsets +99.6% + + 19.4%
discounts
+ 6.1% + 6,1%
Service +6.0% Net + 6.0%
12

14. Efficiency
IFRS Brazil
Network Efficiency SAC
Min/month, Mln R$ % YoY R$/ Gross add, Mobile
add
123 129
110 +30% 3.8
SAC*/ 3.1
99 100 3.1 3.0 3.1
ARPU 2.6
MOU 2.3
1.5
Network and 1.084 1.022
1 022 1.045
1 045 1.075 1.085 +0%
ITX costs
101 83 82 81 75 63 55
SAC* 36
4T 1T 2T 3T 4T
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2009 2010 2009 2010
Bad Debt Profitability
% Gross Total Revenues R$ Bln, % Total Net Revenues
30% 31%
3.2% 29% 28% 28%
25% 25%
EBITDA 22%
2.3%
2.2% 2.0% Margin
1.9%
1 9% 1.2
12
1.7% 1.1 0.9 1.0 1.0
1.3% 0.9 0.9
1.0% 0.7
EBITDA
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2009 2010 2009 2010
*SAC = Subsidy + Commision + 100% Advertising 13

15. Profitabilty and Cash Generation
EBITDA Evolution (in R$ Mln) Net Financial Position – Dec10
R$ Mln Cash
+984 - 42%
+61
-274 -108 -12
-1,252
4,194 2,079
,
+18.4%
18.4%
3,541
3 541 156
1,684
Oper FCF Non-Oper
FCF 984
EBITDA Business Business Commercial Network G&A + EBITDA
2009 Generated + Received expenses expenses Others 2010 Q4 09 Q3 10 Q4 10
Handsets (incoming) expenses
25.8% +320Bps
p 29.0% 2,559 1,369 2,394
R$ 3.38 bln (73% long term)
Gross Debt
~22% of debt denominated in foreign currency (100% hedged against FX variation)
Average Annual
10.1% in Q4 10 vs. 9.67% in Q4 09 and 10.0% in Q3 10
Cost
14

16. Net Income and Proposed Dividend
IFRS Brazil
Net Profit Proposed Dividend for 2010**
2010
R$ Mln R$ Mln
2,212
497
777
+143%
5x
+19% 204
Total 801 Tax
1,435 credit 171
Organic 129
Tax
credit
Extraordinary 672
effect Intelig*
(564 mln)
2009 2010 2008 2009 2010
0,11 0,13 0,20
EPS
*FX gain due to unhedged debt ** To be deliberate in the next Shareholder’s Meeting
15

17. Agenda
Results in Summary – Luca Luciani
Turnaround Accomplished – Lorenzo Lindner
Financial Results 4Q10 – Claudio Zezza
Strategy – Rogério Takayanagi
Perspectives – Luca Luciani
16

18. Brazil, a large and fast growing country
Gross Domestic Product (GDP) Middle Class Expansion
US$ Tln 2010
Tln, Mln people
Possible impact
Expected to slow from Govermt.
down to 4,5/5% in saving program
2011 of R$50bln
14.6 Family Income 188 200
(K R$/ month) 175
20 31
>4.8 A/B 13
#8
5.7 5.4 66
3.3 1.1 –4.8 C 95
2.6 2.3 2.04 2.02 113
1.6 1.5
0.8 – 1.1 D 47
44
40
E 49
< 0.8 29 16
+3% +10% +3% +3% +2% +2% +1% +8% +3% +4% 2006 2009 2014
USD 2 Trillion Gross Domestic Product 200 million people with average age 29 years old
+8% growth in 2010 - Demographic bonus for next 10 years
~5% expected growth/ year for next years - Middle-class explosion
An attractive country that
• Class C behavior: requires innovation on
- Very high willingness to use (everything) Go-To-Market to attack
- Willingness to pay (depends on new purchasing scheme) emerging Class C/D people
17

19. TLC market driven by Mobile
CAGR 2010-2013 Brazilian Telecom Market
Mobile +40/45% R$ Bln Incremental Revenues
CAGR 10-13 Δ R$ Bln
+6/8% 13 vs. 10
+5/7% +3-4%
VOICE +10
120 Competitive positioning TIM
DATA 115
. More competition Total 110
. MTR reduction
TIM: no trade-off in FMS
Broadband +40/45%
+11 (voce)
62
~25% +20% Mobile 51 55
Large room for growth in
Mobile
Attractiveness Mobile Internet access
FIXED (data) for all (Class C
opportunity)
MOBILE
Fixed 42 -8 No brakes
50 48 for FMS
Fixed Voice
- 2% +20%
Selected Selective Intelig attack to
+7 opportunities
VOICE Fixed 16 Corporate/ SME segments
-6% 9 11 (Big cities only)
DATA BB (access, clouding)
2010
2010 2011
2011 2013
2013
* BRL/US$ = 1,70 18

20. Telecom expected dynamics
Acceleration of Fixed-Mobile Substitution Difficulties to upgrade from BB fixed lines legacy
R$ / minute, voice • Limited incumbent capability to upgrade
to adsl infrastructure:
Annullement of ~ 5Km distance from <2
mobile central switch
0.42 0.41 price premium
Mobile
0.34 • Geo/demographic limit
fixed
fi d BB expansion
i
0.27 0.27
(very CAPEX intensive)
Fixed
0.26
Low Speed Internet
0.22 0.27 % users per speed range, MBps
0.23 >8 Mbps 5%
p
0.20
0 20
Between
2e8 18%
Mbps
2006 2007 2008 2009 Q3 10 77% <2 Mbps
Pure mobile has no trade-off between
growth and Fixed cannibalization Difficult of fixed ops to combat FMS
Likely increase of competition in 2011 Need to access public funds to invest
will further pressure mobile tariffs: in broadband expansion
- Integration/Turn-around of Likely to pressure for MTR cuts
existing players (possible glide path starting f
( ibl glid th t ti g from mid
id
2011 with 10-20% reduction)
- Launch of 5th national player
19

21. Strategy
Rationals Expected Results
Customer Base
Natural expansion of TIM
p Subscribers EoP Mln
EoP,
Community pushed by
Community
word of mouth 51
matters
Win-back in selective 41
(Size)
geographic areas
2009 2010 2013
Price per minute MOU
Push FMS R$/min Min/line/month, Average
(TIM’s di ti ti i
(TIM’ distinctiviness)
) > x2
0.42 0.41
No brake for Mobile
Keep innovation as part of 0.34 116
FMS core business (push Infinity 0.27
83
0.27
(Usage) concept) Fixed 0.27
0.26
0.22
0 22 0.23
0 23 0.20
2006 2007 2008 2009 Q3 10
2009 2010 2013
Unique users Data Revenues
Foster webphone/ Inifinity Web daily unique users
Digitalize t e
g ta e the smartphone penetration
inclusion of
Drop data price to leverage x4
TIM % on Service 13%
untapped demographic Revenues
Community > 1 Mln Infinity
segment Web Data 1,8
(
(Data) ) Revenues
LAN House substitution 22 Ago 10 29 Jan 11 (bln R$)
2009 2010 2013
20

22. Agenda
Results in Summary – Luca Luciani
Turnaround Accomplished – Lorenzo Lindner
Financial Results 4Q10 – Claudio Zezza
Strategy – Rogério Takayanagi
Perspectives – Luca Luciani
21

23. TIM Brasil Conclusions
TIM Brasil 2010 Attractiveness Brazil TIM Brasil tomorrow
Growth 13.6 Customer Base
Bln R$, Mln lines Subscribers EoP, Mln
12.7
Commu-
Services 51
51 nity 41
Revenues 41 More
“More
matters
people”
Customer #3 Country 09 10 11 12 13
Base
on GDP growth* MOU
Min/line/month, Average
2009 2010
FMS “Talking
Profitability #4 worldwide More” 116
83
% of service revenues 29,0% Mobile Market
EBITDA %
25,8% 09 10 11 12 13
‘
Internet users
000 unique users
CAPEX% Data “Connected”
19,6% x4
19,6%
22 Ago 29 Jan
2009 2010 2010 2011
Turnaround Accomplished Opportunity of Brazilian mobile market Perspectives 25 February
development Industrial Plan
Company Repositioned Revenues: Keeping the pace
Back to growth Competitive advantage for Pure Mobile Ebitda: High single digit growth
Increasing profitability Capex over Sales: Slight decrease
* Absolute growth: delta PIB 2010 – PIB 2009 22