2. 33%
42%
49%
56%
28.0% 27.9% 27.4%
30.1%
61.1
63.2
20% 30%
P1
26.7%
26.1%
28.4%
-22.9% -20.5%
-2.9%
2.6%
1Q14 2Q14 3Q14 4Q14
Innovative offers generating value:
• Charging per day
Infinity “dia”
• Controle WhatsApp
• Shared Data plans
RESULTS HIGHLIGHTS: A SOLID QTR TO CLOSE A SOLID YEAR
2
MTR cut impact still significant: ~R$372
million on EBITDA in 2014
75.7
million
customers
Customer Base
34
Data
Acceleration
30%
Improving
Profitability
Fixed
Turnaround on
EBITDA Margin
business
million users
(+26% YoY)
Strong reduction of SMS business (-26%
YoY in revenues)
Tougher macro environment:
• GDP: +0.15%*
• Inflation: 6.4% in 2014
2014 Year Recap
New infrastructure approach: data centric
4G LTE auction: assured future positioning
Fixed corporate business turnaround
completed
Live TIM: best in class fixed broadband
21
Dec/13 Dec/14
Prepaid
(mln customers)
Control Plans
(mln customers)
+3.4%
YoY
Dec/13 Dec/14
+13.8%
YoY
2Q13 4Q14
4G Market Share
(%)
TIM
Gross Data Revenue Yearly
Growth (ex-SMS) (% YoY)
1Q14 2Q14 3Q14 4Q14
EBITDA Margin
(%)
1Q14 2Q14 3Q14 4Q14 2012 2013 2014
Net Revenues
(Δ% YoY)
Source: Company and Anatel
P2
P3
2
*Central Bank consensus
+25 p.p
Solid financial results:
 Growth on EBITDA / EBIT / Net Income
Consistent growth on Business Generated
revenues +6.3% (YoY)
EBITDA Growth:
4Q14 x 4Q13: +4.0% 2014 x 2013: +6.4%

3. 2013 2014
2013 2014
-31%
Network & Interconnection Savings
Interconnection Cost
(R$; % YoY)
Leased Lines Cost
(R$; % YoY)
 Relevant cost savings amid
total data traffic growth of
39% in 2014 when
compared to 2013
 Regulatory price reductions
and substitution of leased
lines by own infrastructure
-10%
3.2
3.4
4Q13 4Q14
Equipping Customer Base
Handsets Sold
(mln units)
% of smartphone sales
among players in 4Q
 +6.3% YoY Growth
 +6.1% QoQ Growth
Source: Company and GFK Group
TIM
48%
P1
14%
P3
29%
P4
9%
 Leading player
in handset sales
 Up 16 p.p.
in 4Q14 vs. 4Q13
0.6%
0.5%
4Q13 4Q14
KEEPING THE FOCUS ON THE EXECUTION
3
Operational Efficiency
Fixed Business Progress
SAC (Subscriber Acquisition Cost)
(R$; % YoY)
Bad Debt
(% Bad debt over gross revenues)
SAC/
ARPU
24
21
4Q13 4Q14
-15%
1.3x 1.1x
-16%
Corporate Solutions
New Sales
(R$; % YoY)
Live TIM Ultra Broadband
(customer base in thousand)
4Q13 4Q14
+39%
60
130
4Q13 4Q14
+2.2x
Solid Performance in Net Adds
Pre paid
 1st in prepaid market share
 + 2.1 million clients in 2014
Post paid
 25% of net share in December
(ex M2M and broadband)
 Control plans bases rose 14% YoY

4. 2.5 GHz
2.1 GHz
1.8 GHz
850 MHz 700 MHz
radius (km)
0.458 0.61
INFRASTRUCTURE EVOLUTION…
Innovative Coverage
4
Investment Profile
Site Densification
Cell coverage characteristics
(Urban coverage simulation)
Capital allocation on innovative services:
Fiber (metropolitan + LD): expansion to ~55k Km in 2014
2G
(voice)
3G+4G
(data)
Number of 4G Sites Number of 3G Sites
4Q13 4Q14
1.9k
3.7k
4Q13 4Q14
9.1k
10.4k
Indoor coverage deployment
 DAS (Distributed Antenna
Systems) Solution
 Femto Cells (corporate)
 Wifi (consumers)
+92%
+14%
R$3.9 bln Organic Capex
+
R$2.9 bln
(4G License & Clean up)
=
R$6.85 billion
in 2014
Deployment in:
0.363 1.413 1.685
 Rio de Janeiro
 Curitiba
 Brasília
 Manaus
 Natal
 São Luís
51%
87%
49%
13%
2013 2014
Band 850 MHz 900 MHz
1800
MHz
2100
MHz
2500
MHz
700 MHz
Possible
Technologies
2G/3G 2G/3G 2G/4G 3G 4G 4G
Efficient Use of Spectrum Portfolio
Wifi and Small Cells
 > 100% YoY
 Fistel exemption
approved in Jan/15
Mobile Broadband
Evolution (cities)
The 125 cities of the
MBB project
represent 50% of
the total network
traffic
39
53
66
83
125
4Q13
1Q14
2Q14
3Q14
4Q14

5. 3,093
3,013
2,930
2,845
TIM P4 P3 P1
…UNDERSCORING QUALITY IMPROVEMENT
5
Source: Anatel
Source: Company’s survey of national satisfaction
TIM
P1
P3
P4
Customers Satisfaction
¹ Voice Network (repair and call completion)
² Data Network: Estimated by TIM and composed by a subset
group of Additional Services complaint
Total Demands at Consumer’s Protection Agency (Procon)
(Per economic group, in thousands)
Source: SENACON/MJ
10.6
14.0
23.6 27.2
42.2
46.3
21.4
28.0
4Q13 1Q14 2Q14 3Q14 4Q14
TIM
P1
P3
P4
Data Evolution
Data Accessibility Ranking (3G)
in SP
4G Sites in State Capital Cities
Anatel
Average Satisfaction with Coverage and Quality of Calls
(score assigned by the customer)
Least claimed
company at
Procon
7.80 7.80
Nov-12 May-13 Nov-13 May-14 Nov-14
Network Complaints
(number of complaints)
Voice network¹
Data network²
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Voice network
2014 vs. 2013
-27%
Data network
2014 vs. 2013
-11%
Anatel Metrics
Customers Demands
Source: Anatel
Access
Anatel
Access
Access
Access
Access
99.24%
98.93%
99.20%
99.57%
98.88%

6. 6
OFFER STRATEGY EVOLUTION CONTINUES
Data Customer Base
(as % of total base)
Smartphone Penetration
(% of smartphones over customer base)
14.9%
29.4%
49.5%
2012 2013 2014
 Smartphone sales over 80% in 4Q14
Data ARPU
(% YoY Growth)
18%
20%
21%
25%
1Q14 2Q14 3Q14 4Q14
Beyond Connectivity on Data
Controle WhatsApp
 Data centric offer with no voice obligations
 Data Package and WhatsaApp included in monthly fee
 Differentiation among peers, with positive impact on
postpaid performance
Data Revenues Penetration
(% Gross VAS Revs / Gross Mobile Service Revs )
25.2%
27.2%
28.7%
30.9%
1Q14
2Q14
3Q14
4Q14
INFINITY TURBO 7 INFINITY “DIA”
6
+7.2 p.p
Protecting Core Revenue
+35 p.p.
R$ 0.75 DAILY OFFER
SHARED INTERNET PLANS
Offer Innovation
Strong Data Progress
 Leveraging on simplicity, transparency and convenience
30.3%
36.4%
44.6%
2012 2013 2014

7. 1Q14 2Q14 3Q14 4Q14
RESHAPING THE BUSINESS
Different Revenue Profile
Improving Profitability
Mobile Service Net Revenues
(% YoY)
Mix of Gross Data Revenues
(% YoY)
2013 2014
SMS
Web
Content
& Others
+29%
+39%
+45%
+80%
+33%
+72%
+47%
+82%
1,500 1,578 1,677 1,862
Mobile First Margin*
(Δ YoY)
Service EBITDA
(R$ mln; % YoY)
Service EBITDA Margin
(% YoY)
35%
38%
4Q13 4Q14
+2.8 p.p.
1,534
1,598
4Q13 4Q14
+4.2%
4Q13 4Q14
+4.5 p.p.
FY 2014 growth: +5.2 p.p. FY 2014 growth: +3.0 p.p.FY 2014 growth: +6.9%
+1.2% -19%-8.2% -24%
(Voice &
Other)
(Data &
SMS)
(Incoming
MTR + SMS)
Gross Data
Revenues Growth
(% YoY of growth)
20%
22%
23%
28%
1Q14
2Q14
3Q14
4Q14
7
Excluding
handset
business
* Mobile First Margin = Business Generated less costs related to the service.
Business
Received
Business
Generated
-30%
+6.3%
2014
+4.8%
-34%
2014
4Q14
4Q14

8. 2013 2014
3.4
3.3
2.9
Live TIM
GVT
NET
4Q13 4Q14
ACCELERATING FIXED BUSINESS PERFORMANCE
88
2014 business remodeling recap:
 Customer base management
 Multiservice network launch
 Sales team reorganization
 Brand repositioning
 Re-designed service portfolio
 Fixed + mobile integration for
corporate clients
2013 2014
+3.5x
EBITDANet Revenues
(with intercompany)
Revenues from New Sales
(YoY)
Outstanding product performance…
(ISP speed ranking - Mbps)
…with solid operational and financial results
60
130
4Q13 4Q14
Customer Base
(000 users)
+2.2x
ARPU
(R$; YoY%)
+24%
New Line Payback
(months)
21
14
4Q13 4Q14
1
15.9
8.9
8.8
Live TIM
NET
GVT
37
21
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1
1,490
2,194
1,069
1,503
4Q13 4Q14
Coverage
(000 Households)
+41%
Addressable
Households
Homes passed
+1.0%
2013 2014
+2.7x
-33%

9. 5,168
167
Thousands
1,558
97
1,499 123 -64 1,558
Thousands
5,183 5,168157 -307 4 132
Thousands
+13.5%
9
FINANCIAL RESULTS ANALYSIS (1/2)
MTR Exposure
1,655
28.9%
35.3%
30.1%
38.1%
EBITDA Margin
Service EBITDA Margin
EBITDA
(R$ mln; % YoY)
Reported
EBITDA
4Q13
Reported
EBITDA
4Q14
Δ Opex/
Others
Traffic/Data
Δ Contribution
Margin
‘Pro forma’
EBITDA in 4Q14
+10.4%
+4.0%
Ex-MTR
MTR
Impact
+3.5% +3.1%ΔYoY
Revenue Exposure
(as % of net service revenues)
EBITDA Exposure
(as % of EBITDA)
~ 25%
~ 12%
4Q10 4Q11 4Q12 4Q13 4Q14
~ 32%
~18%
4Q10 4Q11 4Q12 4Q13 4Q14
Reported
Revenue
4Q13
Reported
Revenue
4Q14
‘Pro forma’
Revenue 4Q14
Δ OthersΔ Business
Received
Δ Business
Generated
Δ Products
Revenue
5,335
+2.9%
- 0.3%
Ex-MTR
Δ % YoY +4.8% -33.9% +2.6% +16%
MTR
Impact
9
5,207
5,538
5,910
2013 2014
372
+6.4%
MTR
Impact
660
2013 2014
16,325
MTR
Impact
-2.3%
Net Revenues Net Service Revenues
(R$ mln, % YoY)
16,98516,701
+1.7%
(R$ mln, % YoY)

10. 700MHz
Acquisition Capex
1,274
Thousands
306 372
386
366
315
348
499
460
2013 2014
FINANCIAL RESULTS ANALYSIS (2/2)
Net Income Evolution
(R$ mln; % YoY)
Net Debt
(R$ mln)
10
EBITDA
2014
Debt Cash Net cash
2013 2014
Debt Cash Net debt
Cash Flow - 12 months
(R$ mln; R$ YoY)
Net debt/EBITDA 12M: 0.23x
Organic
CAPEX
Organic Δ WC Organic
OFCF 2014
Reported
OFCF 2014
LT Amazonas
Leasing
6,507 5,233
2Q
1Q
+10.6%
% YoY
3Q
1,506 1,546
+21.6%
-5.2%
-7.7%4Q
Considering
R$1.7 bln
4G pymt
*Organic figures excludes the 700MHz frequency acquisition and LT Amazonas leasing effect
700MHz Acquisition
Effect on Δ WC
+2.7%FY
4,867 5,288
-421
Cash Flow - 12 months
(R$ mln; R$ YoY)
Composed by:
+ NPV of the 700MHz clean up cost
+ Warranty Insurance
+ Monetary Adjustments
5.538
-2,923
-3,928
-96 1,514 182
1,181
-45

11. 32.0%
34.9%
2012 2013 2014 2015e
 Delivering important operational and financial results
 Strong market positioning for growth
 Renewed culture of innovation, quality and caring
 Staying power and commitment with long term, with recognized
institutional leadership
 Best governance in the industry: Novo Mercado
MBB
(cities)
CONCLUSIONS
11
New industrial plan to be
presented on February 20, 2015
Changing Business Profile Focus on Execution Improving Profitability
Infrastructure Leveraging Growth
 Revenue profile changing
 Pre-paid data as key source of growth
 TIM strategically well positioned with data
focus on “big middle”
Business Generated Net Revenues  Keeping costs under control, amid
macroeconomic pressure
 Keeping innovative offers:
• Infinity Day, Data Shared Plans, Controle
Whatsapp plan, TIMmusic by Deezer, TIM
Multibank (2015), Blue Box (2015)
 Fixed turnaround completed: back to growth
in 2015
 Live TIM: from optionality to reality
TIM: A Solid Player
Building the Future
 Tower sale
 Big data analysis for
Capex allocation
Investing Efficiently
 4G LTE in 700MHz
and 1,800MHz
 EBITDA growth in 2014: +6.4% YoY
 Margins expansion through opex
savings and new revenues sources
(Voice &
Other)
(Data &
SMS)
Service EBITDA Margin
(%; YoY)
+3.0 p.p.
2013 2014
39
125
 Mobile broadband project
+86
2013 2014
74% 69% 64%
26% 31% 36%