- Q3 results showed continued growth in key metrics such as customer base (+19% YoY), revenues (+6.1% YoY), and EBITDA (+19.6% YoY). - Consistency was seen across quarters in 2010, with trends of increasing revenues and profitability expected to continue into Q4. - Higher profitability was driven by growth in higher-margin services revenues and improving operational efficiencies.

1. Investor Relations – Rio de Janeiro, October 29th 2010

2. 1
Agenda
Q3 Results
Economics
Q4 Outlook

3. 2
Q3 in few: a sustainable growth
Size
Growth
Profitability
• Market Share
• Incremental Market Share
Customer Base 46.9 Mln +18.5%
EBITDA
24.5%
40%
• Net Service Revenues
• EBITDA Margin
• EBIT
• EBIT Margin
• Operating FCF
• OFCF Yield
3,648 +6.1%
924 +19.6%
25.3 +290 bps
257 +226%
7.0% +470 bps
603 +53.9%
16.5% +510 bps
Q3 YoY
Ability to
combine
Customer
Base growth
with higher
profitability
Net Revenues
3,387 +6.3%

4. 3
Q1'10 Q2'10 Q3'10
25.3%25.1%24.8%
...with higher Profitability”
% YoY EBITDA +31.0% +16.1% +19.6% +21.6%
Δ EBITDA
Margin (bps) +528 +320 +287
“Talking More”
% YoY Total Rev. +3.0% + 1.3% +6.1% +3.5%
% YoY Service +5.4% + 6.4% +6.3% +6.0%
3,269
3,531
3,648
MOU +42% + 51% +37%
100
110
12324.5%
24.0%
23.6%
Consistency in Results
Q1'10 Q2'10 Q3'10
42.4
∆ % +17% + 17% +19%
YoY growth
44.4 46.9
Q1'10 Q2'10 Q3'10
3,146
YoY growth
3,317 3,387
YTD YoY
BR GAAP, R$ Mln
YTD
Market
Share
Customer
Base
Q1'10 Q2'10 Q3'10
4,149
YoY growth
4,769
MOU
Total traffic
Traffic +64% + 77% +61%
Mln minutes, monthly averageCustomer base, Mln lines
Net Total Revenues
Net Service Revenues
BR GAAP, R$ Mln
810
887 924
EBITDA
EBITDA
Margin
“More People”
“Generating more Revenues ...
5,614
IFRS:
28.2%*
IFRS:
1,038*
* IFRS figure according to controlling shr. Report (TIM Brazil consolidated)

5. 4
24.5%
24.0%
23.6%
39.737.535.8
7.26.96.6
“More People”
Market Share and Client Base
Customer Base, Mln lines
46.942.4 44.4
Post
Pre
Market
Share
Q1’10 Q2’10 Q3’10
YoY growth %
CB +17% +17% +19%
Post +7% +12% +15%
Pre +19% +19% +19%
Back to #1 in NE
TIM #2
Back to #2 in SP
34%
24%
17%
Solid #1 in the South
TIM #1
P1
P2
P3
P1
P2
P3
1.1
1.7 2.2
0.3
0.3
0.15
Incremental Market Share and Net Adds
Net Adds, Mln lines
2.5
1.25
2.0
Post
Pre
Incremental
Market
Share
Q1’10 Q2’10 Q3’10
#1
% of net share
49%40%
29%
25
30
35
40
45
50
jul/10 aug/10 sep/10
40%
34%
24%
Market share %, Metropolitan area
TIM back to #1
34%
32%
28%
6%
P1
P2
P3
0
0
0
0
0
0
0
0
0
0
Q107 Q3'08 Q1'09 Q3'09 Q1'10Q1'08Q307 3Q092Q09 4Q09 1Q10 2Q10 3Q10
Back to #2
in Pre-Paid
Market share %, Area 10Market share %, PR / SC
Q3'10
43%
22%
20%
14%0
Q1'09 Q2'09 Q3‘09 Q4’09 Q1‘10 Q2‘10 Q3‘10
25%

6. 5
100%
100%
100%
100%
100%
100%
100%
99%
100%
100%
98%
97%97%
91%
“Talking more”
Q1'10 Q2'10 Q3'10
Out
In
∆ % + 42% + 51% + 37%
MoU 2009 70 73 90
YoY growth
Minutes / lines / month
Q1'10 Q2'10 Q3'10
59
∆ % - 25% - 25% - 31%
SAC 2009 104 88 85
YoY growth
Q1'10 Q2'10 Q3'10
2.9%
2.7%
2.0%
78
∆ % - 33% - 5% - 33%
Bad Debt 2009 4.6% 3.1% 3.2%
YoY growth
BR GAAP, R$ BR GAAP, % Service revenues
MOU
2007 2008 2009 Q2'10
40%
#1 Mkt Share LD
SAC Bad Debt
100 110
123
Sales
Efficiency
Network Quality
P3
P2
P1
Drop calls
Network Quality
0.600.620.620.66
0.710.75
0.790.850.85
1.051.061.061.04
1.2
aug.09 oct.09 dec.09 feb.10 apr.10 jun.10 aug.10
* SAC = Subsidy + Commissions + AdvertIsing & Promotions
66
3.2x
2.8x
2.5xSAC/ARPU
SAC
• 3Q’10: R$ 69,4 Mln
• 3Q’09: R$ 102,9 Mln

7. 6
“Generating More Revenues”... (1/2)
Q1'10 Q2'10 Q3'10
3,269
∆ % +3.0% + 1.3% +6.1% + 3.5%
2009 3,174 3,486 3,440 10,099
YoY growth
BR GAAP, R$ Mln
3,531 3,648
YTD
Q1'10 Q2'10 Q3'10
3,146
∆ % +5.4% + 6.4% +6.3% + 6.0%
2009 2,985 3,118 3,186 9,289
YoY growth
BR GAAP, R$ Mln
3,317 3,387
YTD
Q1'10 Q2'10 Q3'10
172
∆ % +14.4% + 26% +29% + 24%
2009 151 165 170 485
YoY growth
BR GAAP, R$ Mln
208
220
YTD
Q1'10 Q2'10 Q3'10
124
∆ % - 34.4% - 42.1% +2.8% - 26%
2009 189 368 254 811
YoY growth
BR GAAP, R$ Mln
213
261
YTD
Total Revenues Service Revenues
Intelig Service Revenues Product Revenues
Consistency
Inverted
trend
Acceleration
Take-up

8. 7
... with “High Quality Mobile Revenues” (2/2)
Business Generated vs Received Service Revenues Growth
Gross Margin of Outgoing Voice* Outgoing Voice Contribution
31% 27%
58% 66%
11% 12%
Q3'09 Q3'10
VAS
Voice
Incoming
Generated
Received
14%
-7,2%
Business
Generated
Business
Received
Incoming
Revenues
69%
63%
Q3'09 Q3'10
Outgoing
Voice Net
Revenues
Saving on
ITX costs
Δ Out Voice
Contribution
+20% vs. YA
* (Outgoing Voice Revenue – ITX cost) / Outgoing Voice Revenues
73%69%
% on Net Service Revenues % on Gross Service Revenues
Δ YoY
+ 14%
- 2%
+ 14%
Voice Out
VAS
Others
• Discount on services +17% YoY:
– Chip Only approach (voice and
data)
– Push Internet Penetration
. Pre: 1 month free
. Post: 6 months free
% YoY
+10 %
-7 %
+223 Mln
• Local: + 11%
• LD: + 25%

9. 8
Q1 '10 Q2 '10 Q3 '10
4.4%
6.1%
7.0%
24.8% 25.1% 25.3%
Q1 '10 Q2 '10 Q3 '10
16,5%
6,5%
214
143
257
887
810
924
“Higher Profitability”
EBITDA
Margin %
EBITDA
∆% +31% +16% +20% +22%
EBITDA ‘09 618 764 772 2,155
(2009 Pro-forma TIM + Intelig)
YTD
BR GAAP, R$ Mln
Operating FCF
OFCF Yield
OFCF
Q1’10
Q2’10 Q3’10
EBIT
EBIT
∆% - +151% +226% +454%
EBIT‘09 -54 85 79 111
(2009 Pro-forma TIM + Intelig)
YTD
BR GAAP, R$ Mln
∆% +43% - 44% +54% -
OFCF ‘09 (1,251) 407 392 (452)
BR GAAP, R$ Mln
YTD
+290 bps
vs. 3Q09 Margin %
+470 bps
vs. 3Q09
+510 bps
vs. 3Q09
(716)
229
603
N/A
vs. 116Mln
YTD 2010
vs. 614Mln
YTD 2010
vs. 2,620Mln
YTD 2010

10. 9
Q3 Results
Economics
Q4 Outlook
Agenda

11. 10
1Q 2Q 3Q September YTD
mln R$
2010 2009
abs.
YoY
% YoY 2010 2009
abs.
YoY
% YoY 2010 2009
abs.
YoY
% YoY 2010 2009
abs.
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% 10,448 10,099 349 3.5%
of which Services 3,146 2,985 161 5.4% 3,317 3,118 199 6.4% 3,387 3,186 201 6.3% 9,850 9,289 562 6.0%
of which Handsets 124 189 (65) ‐34.5% 213 368 (155) ‐42.1% 261 254 7 2.8% 598 811 (213) ‐26.3%
EBITDA 810 618 191 30.9% 887 764 123 16.1% 924 772 152 19.6% 2,620 2,155 466 21.6%
Ebitda Margin % 24.8% 19.5% 25.1% 21.9% 25.3% 22.5% 25.1% 21.3%
Capex 576 201 375 186.7% 436 429 7 1.6% 463 541 (78) ‐14.3% 1,475 1,171 304 26.0%
EBITDA ‐ Capex 234 418 (184) ‐44.0% 450 335 116 34.6% 461 232 229 99.0% 1,145 984 161 16.4%
Br
Gaap
Consistency in Quarterly Trend
Guidance on track
IFRS shows at OFCF level the benefit of reducing subsidy strategy
*: BRGAAP and IFRS 2009 figures Proforma including Intelig
Note: Key difference between BRGAAP and IFRS is the handsets subsides capitalization
1Q 2Q 3Q September YTD
mln R$
2010 2009
abs.
YoY
% YoY 2010 2009
abs.
YoY
% YoY 2010 2009
abs.
YoY
% YoY 2010 2009
abs.
YoY
% YoY
Net Revenues 3,296 3,198 98 3.1% 3,559 3,512 47 1.3% 3,677 3,467 209 6.0% 10,532 10,178 354 3.5%
of which Services 3,177 3,015 161 5.3% 3,350 3,151 199 6.3% 3,418 3,223 196 6.1% 9,945 9,389 556 5.9%
of which Handsets 120 183 (63) ‐34.6% 209 361 (152) ‐42.2% 259 245 14 5.6% 587 789 (202) ‐25.6%
EBITDA 949 706 243 34.4% 1,012 872 140 16.1% 1,038 882 156 17.7% 2,999 2,460 539 21.9%
Ebitda Margin % 28.8% 22.1% 28.4% 24.8% 28.2% 25.4% 28.5% 24.2%
Capex 689 322 368 114.4% 520 535 (15) ‐2.7% 526 692 (166) ‐24.0% 1,736 1,548 187 12.1%
EBITDA ‐ Capex 260 385 (125) ‐32.5% 492 337 155 45.9% 512 190 322 169.5% 1,264 912 352 38.6%
IFRS as
reported
by
Telecom
Italia
For perspective
Current
*
*

12. 11
EBITDA
3Q10
Depreciation
and
Amortization
EBIT
Net
Financial
Expenses
Taxes
and
Others
Net
Income
3Q09 (693.6) 78.8 88.6 27.6772.3 194.9
151.7 26.4 (150.1) (98.2) (70.2)Y/Y 178.0
From EBITDA to Net Income (in R$ Mln)
124.7
924.0
256.8
-667.2
-61.4
-70.6
Consistent EBITDA growth
EBITDA Evolution (in R$ Mln)
EBITDA
3Q09
Δ Business
Generated +
Handsets
Δ Business
Received
(incoming)
Δ Network
Δ Commercial
Expenses EBITDA
3Q10
Δ G&A +
Other
expenses
EBITDA
Margin
25.3%
+2.8 pp
22.5%
+20%
772
273 -65
-65
-20 28
924
Net Services: +266
Products: +7
Net Revenues: +208 Costs: +57
• Marketing & Sales
• COGS
• Bad debt
• ITX
• Maintenance
• Energy & Rental
• Personal
• G&A
• Other
Non recurrent impacts (Total: 234 Mln)
• +R$164,5Mln - FX variation on Intelig’s 3Q09 results
• +R$38,5Mln - TIM Celular’s reversion of tax provision
• +R$30Mln - adherence of REFIS fiscal benefit

13. 12
Free Cash Flow and Net Financial Position
Operational Free Cash Flow in 3Q10
924
-463
603
142
EBITDA Δ Working
capital
CAPEX Oper.
FCL. * TIM excluding Intelig
R$ 3.45 bln (of which 73% in the long term)
~22% of debt is denominated in foreign currency (100% hedged)
10.0% in the 3Q’10 vs. 9.74% in the 3Q’09 and 10.0% in the 2Q’10
Gross Debt
Average Annual
Cost
161
2,079
2,544
-603
2,520
Oper FCF Non-Oper
FCF
3Q09* 3Q102Q10
959 1,703 1,369
-18.3%
Net Financial Position – Sep10
R$ Mln
% of Net revenues
YTD09 YTD10
11.4% 14.1%
3Q09 3Q10 3Q09 3Q10 3Q09 3Q10
2x 2x 10x
3G Towers
activated
2G Capacity
(# TRX)
Microwaves
activated
+20% YoY
+54% YoY
Cash% on Net Revenues
25.3% 3.9% 16.5%

14. 13
Q3 Results
Economics
Q4 Outlook
Agenda

15. 14
Q4 Outlook
Community
Expansion
(Customer Base)
FMS on Voice
(Usage)
Internet Penetration
(Data)
Strategy
KPI’s 50 Mln at end
of year
MOU 140’
~10Mln
Unique
Active Users
(20% of CB)
Expected Results
Maintain
- CB Expansion
- EBITDA and Margin
Improvement
- Cash Generation
Accelerate
- Top line Growth
- Smartphone
Penetration
- Data Revenues
- Intelig Development

16. 15
Christmas Campaign
Infinity
Ultimate
Smartphones
portfolio,
unsubsidised,
sold in a pro-
rata basis
Infinity Web
Smartphone PenetrationTiM Liberty

17. 16
Intelig Development among Corporate Market
Service Revenues Growth
206 220
Net Revenues 2010 in R$ Mln
172
YoY growth
+29%
+26%
+14%
Q1'10 Q2'10 Q3'10 Q4'10
Rio de Janeiro’s
City Hall
352 links with
potential up to 2,000
links
Sky
AES 54 links won
30 links won
São Paulo
Government
~25 thousand mobile
lines (total
replacement)
Mobile
Fixed
Fixed
Fixed
BR GAAP
Last Auctions Won

18. 17
Conclusions
Q3 confirms TIM Turnaround, with improvement on Network Quality,
Market Share, Revenues Growth, Profitability and Cash
“Voice is Good”: outgoing voice continues to be the key driver of
growth both in terms of Revenues and Contribution
In Q4 we will insist in marketing efforts to enlarge TIM Community,
forcing FMS on voice and penetrate the internet market via
smartphone