1) TIM reported strong growth in the third quarter of 2012, with total net revenues increasing 8.0% year-over-year and EBITDA growing 7.5%. 2) Key highlights included solid growth in data revenues and customers, as well as recovery in postpaid subscriber additions following the sales ban earlier in the year. 3) However, recent events such as the dropped call report and tax issues created challenges for TIM's image and reputation that may impact performance going forward if not adequately addressed.

1. Results Presentation
TIM Participações S.A.

2. Q3 in Few
Quarter’s Highlight
Total Net Revenues
(R$ Billion)
Revenue Growth Solid data growth MTR cut impact
+8.0% +11.0%
19.1% (Revenues +35% Provisioning of
8.0%
7.0% YoY) advertisement
4.7 13.7
4.4 12.4 Smart/webphone credit loss (R$16
sales pick-up mln)
1Q12 2Q12 3Q12
3Q11 3Q12 9M11 9M12 Sales resilience in Provisioning for
spite of sales ban administrative
EBITDA procedures
MOU at record established
(R$ Billion)
level of 139 between 2007/09
3.63 R$ 42mln
Organic EBITDA Live TIM up and (R$26 mln)
1.24 R$ 42mln
+7.5% +8.6% Growth running Intelig fixed
12.6%
6.0% 7.5% Postpaid human at business
+3.8% 1.20 3.58 1.2 24% YoY growth performance
1.16 1.1
+7.3%
3.34
1Q12 2Q12 3Q12
3Q11 3Q12 9M11 9M12 Frost Abrasca
Sullivan Prize of Institutional
Best Value Investor
Practices Creation “Best IR Team”
Award
A tough quarter, but TIM is managing to recover
2

3. Reality Check: Recent Events Overshadowing Fundamentals
Sales Ban Drop Call Report Tax Issue Contingences
Impacts: Impacts: Event: Event:
Reduction in gross Damage on image 2006 corporate Allegation of low
adds during the period restructuring (TIM provisioning for
Status: Nordeste + TIM
Small economic contingencies
Two independent Maxitel) was
impacts questioned by Federal Impacts:
consultants firms
Damage on image concluded that the rate Tax Bureau in 2011 Damage on image
Status: of dropped calls on Impacts: Status:
3/8/12 showed no
Ban lifted on 3rd of anomalies Damage on image No impact on financial
August Status:
Anatel’s final decision Accrual based on
Anatel is measuring the is expected by the end Under discussion at internal and
evolution of the plan. of the year. administrative level of independent external
tax bureau. opinion expert,
following IFRS rules.
There are precedents
Back to fundamentals
Customer Total Data Users Homes Passed
Base Traffic (unique) (households)
(users) (minutes)
Customer Total Data HP ready
Base Traffic Users to sell +17%
+28.3% +34% +2X
69.4 Mln 28.7 Bln 20 Mln 440k
Community FMS Internet for Tim Fiber
Sep11 Sep12 Sep11 Sep12 Sep11 Aug12 Sep11 Aug12
Expansion (Voice) everybody Fixed BB
3

4. Regulatory Update
PGMC MTR
• Access to fixed operators networks (SMP concept):
• Defined glide path in 2013:
Unbundling and Bitstream of copper networks.
For 2013, it should be confirmed the glide path already
Access regulation to transmission networks at speeds determined (cut of ~9.5% in February).
up to 25 Mbps.
• Cost model:
• Infrastructure sharing:
Analysis is expected to be concluded by Anatel in 2013
Opportunity to share the passive infrastructure (duct, and its implementation is being discussed among
conduits and towers). operators and the regulator.
• M-M interconnection:
Discussion over the adoption of Partial Bill & Keep for
mobile-mobile relations between SMP and non-SMP.
4G QUALITY
• 2.5 GHz: • Improvement Plan:
Contract is signed, 10% paid in 4Q12, 90% to be paid in Focus on the improvement of customer care and
2Q13 (License value: R$ 382 mln). network.
Suppliers are defined: Huawei, Nokia-Siemens and
Ericsson. • Anatel quarterly assessment:
Based on follow-up monthly meetings
• Future of 700 MHz Auction :
Ongoing discussion among Anatel, mobile carriers and • Indication of the integrality of the new quality rules
broadcasters on digital dividend. - new broadband indicators start to be informed of
November/ 2012.
4

5. Operations
5+

6. Sales Growth Rebound
Gross Adds - Customer Base
(Weekly; ‘000 lines)
Back on track Gross adds come back
Prepaid resilient growth
Sales Ban Effect
Postpaid acceleration on
W14 W16 W18 W20 W22 W24 W26 W28 W30 W32 W34 W36 W38 W40 human lines (ex-M2M)
Trendline
Sales Force Focus on Efficiency Strong sales channel force
(Points of sale EoP) (R$; months)
SAC/
+12.6% 2.3
ARPU
QoQ
Mass 1.8 Efficient growth approach
~300k 55 1.7
Channel
36 34
+16.2%
QoQ SAC
Own
Stores 115 -34% -7%
3Q10 3Q11 3Q12
6

7. Operation Remains Solid
Customer Base Total Market Share Growth
(Million lines) (% of total lines)
+1.7 +0.5 Δ YoY
+3.1 Δ%
+4.9 3Q 30.1% 30.2% 30.1% 29.7%
+3.7 67.2 68.9 69.4 29.5% 29.5% 29.5% 29.5% 29.8% 29.6% 29.7% Vivo
+2.7 64.1
59.2 9.7 10.0 10.3 +1.6 +19% 640 290
55.5 9.3
52.8 8.7 bps
26.5% 26.8%
26.9% bps
7.7 8.0
Post 25.4% 25.3% 25.5% 25.4% 25.4% 25.5% 26.0% 26.8%
54.8 57.6 58.9 59.1 +8.6 +17%
Paid 45.1 47.5 50.6
25.1% 25.1% 25.6% 25.3% Claro
24.5% 24.9% 24.6% 24.6%
24.0% 24.5%
Largest 23.7%
Prepaid 20.4%
20.1%
Base 19.5% 19.4% 19.7%
19.1% 18.8% 18.8%
1stin yearly 18.5% 18.7% 18.7%
Oi
growth for 9
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 consecutive
Net Adds (000) quarters
Post Paid 223 317 632 655 348 348 261 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Pre Paid 1,598 2,359 3,053 4,219 2,786 1,308 274 Source: Anatel
Handset Sales Market Share Postpaid Base Analysis (ex-M2M)
(% of handset revenues 1H12) (Million lines)
-280k in 3Q12 (M2M Δ% YoY
disconnection effect)
3Q
10.4 10.3
Operators 10.0 10.2 +19%
7% Leading the handset market. 9.8 9.9
9.4 9.5 9.7
57% Total 9.3
26%
31% Even being the only player with “No 8.9
9.1
postpaid 9.0
43% 8.7 8.6 8.9
Subsidies” approach. base +24%
Open Market
37%
Driving data usage growth Human
lines 541k Net Adds in 3Q12
postpaid
P1 TIM P3 P4
base Sep 11 Mar 12 Sep 12
Dec 11 Jun 12
Source: Company estimates Source: Anatel
7

8. Consumers Complains: Good position at Anatel and Procons
IDA – Index of Attendance (last reported by Anatel)
(Points)
98.55 99.15 99.40 100.00 99.90 98.65
98.10 97.40 97.90 97.70
96.95 96.75
95.20 95.05 94.50
93.70 94.00 98.00 94.00
93,95 97.00 96.70 TIM
91.05 95.30 95.10
90.85 90.30 93.80 89.85 91.00
92.65 87.90 92.80 88.10
91.35 86,35 86.55 86.65
88.80
88.30 89.35
87.20 86.40
85.80 86.20
84.80 85.00
83.90 83.30 84.85
74.84
77.25
jul/11 aug/11 sep/11 oct/11 nov/11 dec/11 jan/12 feb/12 mar/12 apr/12 may/12 jun/12 jul/12
Source: Anatel
Volume of claims at Consumer’s Protection Agency (Procon) Procon Demands
(# Quarterly claims) (% of total)
21.179
19.245 TIM
18.560
16.013 15%
13.696 24%
11.788 12.348
10.687 10.508 18%
9.664 9.592 9.344
8.601 8.811
8.740 7.693
7.591 8.229
7.112
7.376 TIM 43%
6.032 7.416
6.286 7.166 7.422
6.673 6.229 6.533
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Source: SINDEC data base. Represents 45% of total Procons (17/10/12) Source: SINDEC
P1 TIM P3 P4
8

9. Marketing
9+

10. Customer Sentiment
• Reinforcing position of
Preference and Rejection of customers transparency
Transparency • Offer w/ no Tricks
(%)
• Clear communication
Preference ∆ Pref x Rej
32 31 • Anatel plan on track
30
28 28 29 28 28
23 22
25
27
Player 1: 19 Quality • Network development
21 22 • Caring effectiveness
21
Rejection 14 Player 3: 2
Relevant • Unlimited
15 15 15 15 Player 4: -8 • Convenient
13
11 11 11 10 11 10
9 9 9 Innovation • Innovative
May Oct May Nov Jun Nov Jul Nov Jun Nov May Nov May Aug Source: Ipsos
06 06 07 07 08 08 09 09 10 10 11 11 12 12 Research
TIM Quality Portal
www.tim.com.br/qualidade
Anatel Plan Disclosure
Real coverage
Monitoring: footprint
• Network Improvement
New and planned
• Quality KPI’s antennas
• Network Incidents and Alerts Wi-Fi hotspots
10

11. Mobile as the Universalization Driver
Fixed ARPU of ~R$50 TIM’s total traffic growth Mobile Data accesses
vs. Mobile ARPU of of 28.3% YoY to 28.7 reached 51 mln (+3.2x
~R$19 billion vs. 1Q11)
CB growth Mobile x Fixed TIM MOU reaccelerating Data users customer base
(Million lines) (Minutes) (Million lines)
1 2 3
258 +7% 139 51
~25X
Mobile 131
130
121 ~6X 126 127
19
Fixed
Fixed 10 ~2X
39 ~43 Mobile
2
2007 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 2008 3Q12
Source: Anatel and Company`s estimates Source: Anatel and Company`s estimates
Customer Total Data
Base Traffic Users
Community FMS Internet for
1 2 3
Expansion (Voice) everybody
Mobile services are the driver of growth and universalization for the sector 11

12. Sustainable Usage Growth
Prepaid Postpaid
(Minutes; Units) (Minutes, %)
+3% +15%
MOU MOU
Human
+12% Postpaid
Churn
Top Up -1.74 p.p.
Volume
3Q11 3Q12 3Q11 3Q12
ARPU
(R$)
ARPU Recover in a
QoQ Comparison.
+3.5%
QoQ Strict Churn Policy.
Human Postpaid
Growth (ex-M2M).
3Q11 4Q11 1Q12 2Q12 3Q12
12

13. Internet Continuous Take-Up: Handset + Offer
Products Net Reveneus Smart/Web phone Penetration
(R$ Million) (% over total base of lines)
622 39.0%
+28% 35.2%
485 31.1%
26.6%
19.5%
15.4%
12.6%
VAS Gross Revenues
(R$ Billion; % of Gross Mobile Services Revenues)
3Q11 3Q12
% sales of 72%
71% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
web/smart 1.12
+35%
phones
0.83
SMS unique users growth Data users
(Daily unique users) (Million monthly unique users)
~20
+34%
3Q11 3Q12 ~15
+3X 15.7% 19.4%
+ 370 bps
3Q11 3Q12
3G
coverage
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 (% of urban 59% 69%
pop.)
13

14. Financials
14+

15. Consistent EBITDA and Net Income Growth
EBITDA Evolution
(R$ Million)
16 mln of provision on advertising credit
+7.5% 26 mln of provision on Anatel administrative procedures
established between 2007/09
+45 +73 -155
+214 -89
1,244 -42 1,202
1,157
26.3%
26.5% EBITDA Margin 25.5%
32.0%
32.7% Service EBITDA Margin 31.0%
EBITDA Services Handset Marketing Network Pers./G&A Adj. EBITDA Non- Rep. EBITDA
3Q11 Revenues Margin and Sales and ITX and others 3Q12 recurring 3Q12
∆YoY +5.5% -39.6% -7.2% +13.0% +21.9% +3.8%
From EBITDA to Net Income
(R$ Million)
1,202 16 + 26 = 42.1 mln – provisions
9.1 mln – monetary adjustments for the
administrative procedures
-657
545 -29
-198
369
318
EBITDA Depreciation/ EBIT Net Financial Taxes and Net Income Adj. Net
3Q12 Amortization Result Others 3Q12 Income 3Q12
∆YoY +3.8% +1.9% +6.3% -52.9% +47% +0.4% +16.6%
15

16. Analysis on Efficiency & Cash Position
Handset Capitalized Subsidy Bad Debt Trend Leased Lines, Traffic and ITX Costs
(R$ Million) (as % of Gross Revenues) (Compound Growth Rate - Quarterly)
Efficiency Approach
Remains
Traffic
1.34%
64 1.14%
0.95%
6.4% Leased
Lines costs
1.2%
ITX costs
0 0 0.6% (ex-SMS)
3Q10 3Q11 3Q12 3Q10 3Q11 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12
Capex OFCF Net Debt
(R$ Million) (R$ Million) (R$ Million – EBITDA trailing 12m)
% for Infrastructure
Improving Cash
ΔOFCF R$144mln YoY
91% 92% ΔEBITDA-CAPEX= R$126mln
Generation
77% ΔWC R$17mln
2,079
853 +21% 827 1,458 1,550
772 684
604
526
3Q10 3Q11 3Q12 3Q10 3Q11 3Q12 3Q10 3Q11 3Q12
OFCF/ Net DEBT/
16.4% 15.6% 17.5% 0.5x 0.3x 0.3x
Net Rev. EBITDA
16

17. TIM Fiber Update
17+

18. Live TIM: Up & Running
MSANs Homes Passed
Ready to Sell
Optical Backbone 440k
Network 2
network 220k
Construction 1
3 2Q12 3Q12
Buildings authorized Building’s connected MSANs installed
5,700 7,101 2,100 3,026 214 405
2Q12 3Q12 2Q12 3Q12 2Q12 3Q12
Market Demand Quality of Service
(Units) (Mbps)
Download
Upload 35 37
20 21
Market Average 1.8 0.4
Demand and Speed
Quality of Market Live TIM Live TIM
Service Average (nominal) (delivered)
Blogger Richardmax: “Live Tim, so far, is the
only one to fulfill its promises, moreover above
Website the promises, because the 35Mb hired tests
120.5k
Registration are always above 37, and uploads are always
spiking 20. “
Specialist Blogger @ http://richardmax.rmax.com.br/
18

19. Live TIM: Speeding-Up with the New Offer
New Offer: Shaking the Broadband Market
Sales
(Average weekly sales)
After
Before Promo
Promo
~5X
Sep/12 Oct/12
Business Model Proving Itself
Coverage Capex
MSANs per Home Passed
Network Roll Out
~R$2k
(‘000 Households)
Optical Total Capex
Network ~R$80 ~590
per Sub Addressable
TIM ~R$5k Market
Int. Bench.*
Fiber (Homes passed)
~6X
Installation Capex ~R$700
per Sub >100
~R$800 TIM Int. Bench.*
Fiber
~R$300
May/12 Dec/12
TIM Int. Bench.*
*International Benchmarking
Fiber 19

20. Conclusions & Outlook
20+

21. Conclusions & Outlook
Quality Improvement “Commitment with Anatel”
Voice Capacity Data Capacity FTTS (Fiber to the Site)
(‘000 TRXs) (‘000 channel elements) (‘000 Km Fiber)
95% 115% 96%
Done in Done in Done in
328
205 3Q12 3Q12 3Q12
157 +136% 29 38
+30% 139
+31%
2011 3Q12 2012 2011 3Q12 2012 2011 3Q12 2012
Business Fundamentals Remain Solid
Customer Base Growth MOU (FMS on Play) Data Revenues Accelerating TIM Fiber Network Roll-Out
(Millions) (Minutes) (R$ Billion; % Gross Mob. Serv. Rev.) (‘000 Households)
19% ~590
16%
13%
139 1.1
69.4 130 0.8
59.2 0.6
46.9 123 ~6X
Addressable
>100 Market
(Homes passed)
3Q10 3Q11 3Q12 3Q10 3Q11 3Q12 3Q10 3Q11 3Q12 May/12 Dec/12
Innovative approach 2012 guidance Better regulatory Tax easing
Outlook unchanged commitment environment policy
21