Meeting with Investors of March 2017

1
Meeting with Investors
Investor Relations
Draft - Highly Confidential
TIM Brasil
Company’s Presentation
March, 2017
TIM. Brazil’s largest 4G network, available
in over 1,200 cities and the only
4G carrier in Fernando de Noronha.

2
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………………………..……….
4Q16 Results…………………………………………………………………………
Strategic Plan 2017-19…………………………………………………………
Regulatory Update……………………………………………………………….
Appendix………………………………………………………………………………
3
7
14
27
30
37

3
Investor Relations
About Us

4
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
 18th largest Private Company in Brazil*
 Approximately R$23 billion of Market Capitalization
Innovative Net Revenues
(R$ bln; VAS Revenues excluding SMS)
Data Penetration
(data users over total base)
EBITDA Margin
(%)
CAGR
+32%
*Source: Exame Magazine - 2015
+700 Bps
TIM: A Solid Path in a Changing Industry
Leader in 4G Coverage
 ~1,255 cities covered with 4G
 74% of urban population in 4G
 Total of 3,460 cities covered with
2G/3G/4G
High focus on infrastructure
development
 ~20.1 thousand Sites
 ~5,200 sites connected with fiber
 ~76,000 km of optical fiber network
2nd in Revenue Share
 63.4 million customers
 ~26% Market Share
 ~R$4.5 billion invested in FY2016
(ex-licenses)
Growth
via M&A
1.7x

5
Investor Relations
Joined UN Global
Compact in 2008
Member of ISE
(Sustainability Index)
for 8 consecutive years
Member of ICO2
(Efficient Carbon
Index) for 6
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.

6
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
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 30%)
 Strict disclosure policy
Corporate Governance

7
Investor Relations
Market Overview and TIM Positioning

8
Investor Relations
The industry mobile revenue represented
53% of the total industry revenues in 3Q16
Mobile Fixed Fixed BB Pay-TV Group
Customers 4Q16 (000´s) 63,418 518 326 n.a. 64,262
Market share 4Q16 26% 1.2% 1.2% n.a. -
Net Adds 12M (000´s) -2,816 -54 +73 n.a. -2,797
Net Revs 4Q16 (R$ Mln) 3,842 201 4,044
ARPU 4Q16 (R$) 19.2 n.a. n.a. n.a. ---
Customers 4Q16 (000´s) 73,778 14,552 7,478 1,714 97,522
Market share 4Q16 30.2% 34.4% 28.1% 9.1% -
Net Adds 12M (000´s) +509 -607 +187 -67 22
Net Revs 4Q16 (R$ Mln) 6,593 4,281 10,874
ARPU 4Q16 (R$) 28.6 43.3 46.5 93.1 -
Customers 4Q16 (000´s) 60,171 11,252 8,412 9,848 89,683
Market share 4Q16 24.7% 26.6% 31.6% 52.4% -
Net Adds 12M (000´s) -5,807 -385 +301 -49 -5,940
Net Revs 4Q16 (R$ Mln) 2,842 6,029 8,870
ARPU 4Q16 (R$) 14.0 n.a. n.a. n.a. -
Customers 4Q16 (000´s) 42,138 14,517 6,413 1,304 64,372
Market share 4Q16 18.5% 34.3% 24.1% 6.9% -
Net Adds 12M (000´s) -5,923 -936 +41 +136 -6,682
Net Revs 3Q16 (R$ Mln) 1,942 3,891 6,323
ARPU 3Q16 (R$) 15.6 n.a. n.a. n.a. -
1 - Mobile revenue considers only the 5 major players. Oi numbers are adjusted to include corporate mobile.
Source: Anatel and players’ financial statements
Mobile Revenues Share
Nextel Oi Claro TIM Vivo
Brazilian Telcos X-Ray
31,7% 33,2% 36,5% 38,3% 39,2% 39,7%
26,6% 26,5% 23,9% 22,6% 22,7% 22,9%
17,7% 17,5% 18,4% 18,5% 18,4% 18,0%
17,4% 16,6% 15,4% 15,1% 14,3% 14,2%
6,6% 6,1% 5,8% 5,5% 5,4% 5,2%
2013 2014 2015 1Q16 2Q16 3Q16

9
Investor Relations
7.6
9.5
9.4>12 Mbps
2 - 12 Mbps
0 - 2 Mpbs
26.6%
47.9%
23.1%
2.3% 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

10
Investor Relations
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

11
Investor Relations
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

12
Investor Relations
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

13
Investor Relations
Mobile Market Share Analysis: Significant Differences by Geographic Area
Population in million people
Source: Anatel, December of 2016
SP Cap
32.1%
31.0%
20.1%
13.0%
SP Int
RJ/ES
MG
35.4%
23.9%
23.4%
12.4%
BA/SE
30.8%
24.8%
23.6%
20.8%
NE
34.8%
30.2%
26.1%
9.0%
NO
38.5%
28.9%
19.8%
12.7%
CO
36.6%
33.7%
15.4%
14.0%
PR/SC
54.0%
19.3%
17.2%
9.2%
RS
46.1%
29.1%
14.1%
10.6%
BRAZIL
30.2%
26.0%
24.7%
17.3%
TIM: 2nd place
TIM: leader
TIM: 3rd place
TIM: 4th place
35.3%
31.5%
14.3%
14.2%
37.4%
32.6%
19.5%
7.9%
Market share analysis
for the whole country
can be misleading

14
Investor Relations
4Q16 Results

15
Investor Relations
2016: A Turn Around Year
Source: Company, except where other wised indicated
¹ Normalized for towers sale and other effects
Macro scenario still tough but
improving looking forward…
Inflation back to control but GDP is
still contracting
…along with deep operational turnaround…
...showing consistent recovery in
2016 results
+17% in 2016
 Less uncertainty on
political scenario
Real (BRL)
appreciation
Mobile Service Net Revenues
(%YoY)
Normalized1 EBITDA
(%YoY)
Source: IBGE
-9.2%
-6.8%
-3.0%
-1.5%
1Q16 2Q16 3Q16 4Q16
Faster & Wider
MBB deployment
1,255
cities w/ 4G
(up from 411
in 2015)
23.5% of
total base
(up from 20%
in 2015)
-12%
YoY
in OPEX¹
Focus on
postpaid
Strong Cost
efficiency
10.7%
6.3%
6.5%
2015 2016
Other relevant
improvements
 Better consumer
confidence index
 Decreasing interest
rate
Target limit
+9% YoY
at R$19
ARPU growth
(in 4Q16)
Improving user
base value
Improving Profitability & Cash Generation
33.5% of
EBITDA
margin in
2016
Back to
Positive
FCF
GDP
Growth YoY -3.8% -3.5%
IPCA (12M)
-13.5%
-6.5%
0.5%
5.8%
1Q16 2Q16 3Q16 4Q16

16
Investor Relations
Value Proposition Evolution
Voice
Community
Focus on Prepaid
2009-2013 2012-2014 2015-2016 2017…
Voice Community
+ Limited Data
Prepaid + some
Controle
Voice Off-net
+ Data
Prepaid + Controle
TLC
Full services
(voice + data)
+ Bundled Digital
Services
Across all segments
Voice Centered Transition to Data Data Centric
2G + 3G 2G + 3G 2G + 3G + 4G
Bundling
Digital Services
Partnership with magazines
and newspapers
40 titles
available
40 mln songs
available
E-Reading: TIM Banca
Partnership with DeezerMusic: TIM Music
Network
Evolution
Utilities: Cloud, Recipes, Jobs etc Multiple partnerships

17
Investor Relations
Customer Base Reshape to Higher Value
dec/15 jun/16 dec/16
Postpaid Mobile Number Portability
(thousand lines)
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
Postpaid net adds
(thousand lines)
Net Migrations Prepaid to Postpaid
Control Plan
Performance
Net Adds
(thousand lines)
Churn rate
(%)
ARPU
(R$)
Dec-15 Dec-16 Dec-15 Dec-16
Customer Base Breakdown
(mln lines; %YoY)
13.6 14.9
52.7 48.5
66.2
63.4
2015 2016
+10%
-8%
-4%
Postpaid
Prepaid
1Q16 2Q16 3Q16 4Q16
(thousand lines)
4.9% 4.4% 4.0% 3.7%
1Q16 2Q16 3Q16 4Q16
1Q16: -33
2Q16: +211
3Q16: +483
4Q16: +640

18
Investor Relations
“More for More” Approach: Win-Win Combination
Prepaid
Control
Postpaid
Towards
recurring
approach
Upsell
Prepaid to
Control plans
Market inflow
New
Proposition
to sustain
MNP
From Daily to Weekly
From R$7 to R$9/R$10
Fast growing Best value for money
SIM Card Consolidation
Full bundling services
Differentiated caring
Improving customers’ usage & value
Data usage
(Mbytes of use per data customers; %YoY)
ARPU new trajectory
(R$)
OTT
Value added services bundled
in all plans
609
896
Dec/15 Dec/16
17.6
17.2 17.2
18.4
19.2
4Q15 1Q16 2Q16 3Q16 4Q16
Voice
Data
Incoming
Voice and
Data
Consumption based Recurring based
+9%
YoY
+39%
From
Market
4Q15 4Q16

19
Investor Relations
90%
7.7
11.6
4Q15 4Q16
1,839
2,833
4Q15 4Q16
~70
~76
4Q15 4Q16
Head Start in 4G Coverage, while fast improving on 3G
Transport Network Evolution
Km of Fiber (‘000)4G sites (‘000)
+4,000
sites YoY
2x more cities
than
2nd player
Cities covered with 4G
Taking advantage of 1,800 MHz refarming to secure 4G leadership
+844 new
cities
Sites connected with own
backhaul (%)
Access Network Evolution
59% 74%
Cities covered with 3G
+994 cities
YoY
+5,600 Km
YoY
411
1,255
4Q15 4Q16
% of urban pop
82% 89%% of urban pop
4Q16

20
Investor Relations
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

21
Investor Relations
39%
17%
59%
34%
Traffic in 4G devices (%) Traffic in 4G Network (%)
Dec/15 Dec/16
59.1
46.6
4Q15 4Q16
7.1
16.9
4Q15 4Q16
4G Revolution is Changing Usage and Revenue Profiles
Data users per technology
VAS ARPU
(R$; %YoY)
Source: Anatel
(mln lines; %YoY)
Smartphone penetration
68%
72%
4Q15 Nov/16
(%; YoY)
2G & 3G4G
6.9
8.6
4Q15 4Q16
+25%
~100% of
sales are
smartphones
4G Traffic
(% of total traffic;YoY)
x2
+4p.p
+137%
-21%
x1.5
Users with 4G
smartphones
accelerate traffic
shift when
coverage arrives

22
Investor Relations
-248
-159
-114 -101 -86
Business Generated Growth
Mobile Services Revenues
ex-incoming (%YoY)
Innovative Revenues
VAS ex – SMS (R$ mln; %YoY)
Delta Incoming per Quarter
(R$ YoY; %YoY)
-3.1%
-5.7%
-4.0%
-0.3%
0.9%
4Q15 1Q16 2Q16 3Q16 4Q16
4,683
5,642
2015 2016
-41%
-35%
-32%
-28%
-25%
4Q15 1Q16 2Q16 3Q16 4Q16
Revenues Performance: Back to Business Generated Growth
Incoming Voice Traffic
(%YoY)
-4.0%
1.9%
7.4%
10.4%
13.0%
4Q15 1Q16 2Q16 3Q16 4Q16
Mobile Service Net Revenues
(R$ mln; %YoY)
14,727
13,968
-9.2%
-6.8%
-3.0%
-1.5%
1Q16 2Q16 3Q16 4Q16
YoY
2016
-5.1%
+20%
2015
Positive Business Generated and
improving trend in Incoming
Revenues is driving MSR recovery

23
Investor Relations
11.7
10.4
0.3
0.1 0.1
0.9
Opex Breakdown Analysis
(R$ bln; %YoY)
Opex Trends: Strong Cost Control Accelerating Savings
-15% -1%
-3%
“Personnel,
G&A, Other”
“Network
ITX”
“Selling/Mkt
Bad Debt”
Traffic
Driven
Process
Driven
Market
Driven
2015 2016COGS
-47%
R$1.2 bln
saving out
of R$1.7 bln
plan 2016-18
F
E
Front Loaded Efficiency
Opex ex - COGS
(R$ bln; %YoY)
9.8
9.4
2015 2016
-5%
-12%
2016 Savings Breakdown
(R$ bln)
-1.2
-0.5
-0.2
-0.5
Process
Driven
Traffic
Driven
Market
Driven
“Selling/Mkt
Bad Debt”
“Network
ITX”
“Personnel,
G&A, Other”
Total

24
Investor Relations
Fourth Quarter Opex in Details
587
396
985
1,015
917
854
150
218
4Q15 4Q16
2,640
2,483
-6%
Opex Breakdown Analysis
(R$ mln; %YoY)
Confirming selective approach on handset strategy. 4Q YoY
analysis affected by changing handset rebates allocation (from
commercial cost to COGS) retroactively in 4Q15 with no impact
on FY value comparison.
Efficiency on network Opex fully offsets off-net traffic and
network components growth impacts. 4Q16 result also
benefits from the effect of leased lines regulated price
reductions (Anatel resolution 639/14). 2Q and 3Q numbers
were booked on 4Q16 (~R$30 million).
QoQ growth reflects further improvements in postpaid
commercial KPI’s and outgoing revenues driven costs
partially offset by efficiency actions. Consistent trend YoY
(4Q16 vs 4Q15) comparison notwithstanding one-off clean up
of customer base in 4Q15 which impacts were offset by the
above mentioned handset rebates re-allocation.
Accelerating efficiencies thanks to full impacts of lay-off
program (-24.5% YoY in headcount) and strong reductions in
G&A (-35% YoY).
COGS
Traffic
Market
Process
COGS
Traffic
Market
Process
+45%
-7%
+3%
-33%

25
Investor Relations
-742
68
2015 2016
-5.3%
-13.5%
-6.5%
0.5%
5,8%
4Q15 1Q16 2Q16 3Q16 4Q16
¹ Normalized for towers sale and other effects (e.g. lay-off program)
EBITDA Growth Back on Track
Normalized1 Free Cash Flow
EBITDA Growth
(R$ mln)
(%YoY)
Normalized1 EBITDA Margin
(%; YoY)
EBITDA and margins improvements
backed by:
 Well executed efficiency plan
 Lighter impacts from MTR
 Improved revenues mix
(more data and less handsets)
Normalized1
EBITDA
Source: Company
31.5%
33.5%
2015 2016
+2 p.p
Quarterly Evolution of Normalized¹ FCF
(R$ mln; YoY)
708
852
4Q
FY
-1,626
172
670 852
1Q16 2Q16 3Q16 4Q16

26
Investor Relations
26
Short term
debt
 Better Profile: Less Short Term Debt
Debt by Lender in 2016
(% of gross debt; post hedge)
Debt Position
(R$ mln; % of total debt in short term)
Cash Position
(R$ mln)
 Comfortable liquidity margin
22%20% 14%
 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: 172 bps
Cash yield
Debt cost
Net debt/
EBITDA 12M
0.32x0.23x 0.52x
¹ Leasing from Towers Sale + LT Amazonas
Net Financial Position Details: Cash & Debt Evolution
5.233
6.700
5.608
2014 2015 2016
6.507
8.432 8.329
2014 2015 2016
1.274
1.732
2.721
2014 2015 2016
BNDES
62%
Leasing¹
19%
BEI
7%
Others
12%
9,70%
11,69%
12,50%
10,88%
14,33% 14,22%
2014 2015 2016

27
Investor Relations
Regulatory Update

28
Investor Relations
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

29
Investor Relations
Main Regulatory Topics
1Q17
Feb MarJan
4Q16
Nov DecOct
700 MHz
• Start of Analog TV
switch off process in
Brasilia (commercial
usage expected for
July/2017).
700 MHz
• End of Analog TV
switch off process in
Brasilia (commercial
usage expected for
July/2017).
Sharing Regulation
• Public consultation
on the regulaition
for infrastructure
sharing.
New regulatory model
• ANATEL decision on
fixed concession
conditions to 2016-
2020 review. (New
contracts to be
signed until Jun/17)
• Bill of Law (PLC
79/16) approval
postponed to 2017
Interconnection
regulation
• Launch of Public
Consultation on the
revision of the
interconnection
regulation
General Plan on
Competition Targets
• Launch of Public
Consultation for the
quadrennial
evaluation of
relevant markets
and asymmetric
regulatory measures
2017/2018
Regulatory Agenda
• Anatel Public
consultation of its
biannual Agenda,
with the main
sector priorities.
PLC 79/16
• Bill of Law returns
to the Senate for
approval
Interconnection
regulation
• Deadline of the
Public Consultation
General Plan on
Competition Targets
• Deadline of the
Public Consultation
for the quadrennial
evaluation
New Regulatory
model
• Deadline of the
Public Consultation
of fixed Concessions
to Authorizations
migration
700 MHz
• Scheduled Analog
Switch Off in São
Paulo
700 MHz
• EAD’s 2nd and
3rd payment
• Additional 479
approved cities
for LTE on 700
MHz as cleaned
up (1.621 total).
Internet of Things
• Public
Consultation to
discuss the key
topics for the
viability of IoT in
Brazil (lauched
by BNDES and
MCTIC)

30
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
2013 2014 2015 2016
23,5% 24,7%
24,9%
24,7%
38,6%
32,0%
12,2%
16,4%
4Q13 4Q14 4Q15 4Q16
41,1%
35,7%
30,9%
28,1%
17,0%
19,3%
11,0%
15,2%
4Q13 4Q14 4Q15 4Q16
Source: Anatel
3G 4G
Mobile Market Share TIM Postpaid Base Evolution
(% over customer base)
Nextel
Oi
Claro
TIM
Vivo
27,1% 26,0%
25,3%
24,7%
28,5%
30,2%
18,5%
17,3%
17,0%
19,0%
21,0%
23,0%
25,0%
27,0%
29,0%
31,0%
4Q13 4Q14 4Q15 4Q16
Market Share
per Technology
23.5%
20.5%
16.5%16.7%
Mobile Base Analysis

39
Investor Relations
Total Mobile Base Overview

40
Investor Relations
Total Postpaid Base Overview

41
Investor Relations
Total Prepaid Base Overview

42
Investor Relations
Total Voice & Data (modem+M2M) Postpaid Base Overview

43
Investor Relations
Source: Anatel
Fixed Broadband - TIM Live area

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 10.50%
in the of 2017
Source: IBGE and Central Bank Inflation report (as of Dez/16) for Government Estimates
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
0.6 2.0
2.8
0.2
-3.8 -3.5
0.5
2.3
2013a 2014a 2015a 2016e 2017e 2018e
5.8 4,8
6.2 6.3
10.7
7.6
6.0 4,5
2013a 2014a 2015a 2016a 2017e 2018e
.10,50 10.50
10.00
11.75
14.25
13.75
9.50
9.00
2013a 2014a 2015a 2016a 2017e 2018e
3,5
3,8
2,4
2,7
4,0
3,3
3,4 3,5
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
Short term
TIM’s Debt Composition
Price/Book Value
Source: Bloomberg
2016
2015
2014
Long Term
Price/Earnings
Accounts Receivable Turnover (days)
Payable Turnover (days)
TIM
VIVO
OIBR
Market Average
ROE (Net Income/Shrd. Equity) ROA (NOPAT/Total Assets)ROIC (NOPAT/Invested Capital)
Balance Sheet Analysis
13.4%
11.9%
7.9%
8.7%
8.9% 6.8%
12.9% 11.6%
6.3%
2013 2014 2015
10.7% 10.3%
7.6%8.5%
12.2%
5.8%
13.2%
0.0% 0.0%
2013 2014 2015
7.4% 6.7%
4.9%5.6% 5.9%
4.8%5.6%
4.7%
2.4%
2013 2014 2015
19.54
18.44
13.4813.08 9.32
17.93
4.33 (1.71) (0.36)
2013 2014 2015
2.0 1.9
1.01.1
1.1
0.9
0.6 0.4
0.1
2013 2014 2015
1Q 2Q 3Q 4Q
140
155
138
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
41
43
45
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

48
Investor Relations
Historical Data: P&L

49
Investor Relations
Historical Data: Operational

50
Investor Relations
Historical Data: Cash Flow

51
Investor Relations
Stock Performance (base 100)*
Year to date
*Last price as of 09/30/2016
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
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
TIMP3
+14.1%
Ibovespa
+38.9%
TSU
+37.4%

52
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
Rodrigo Godoy
E-mail: rcgodoy@timbrasil.com.br
Phone: +55 21 4112-5517
Luiza Chaves
E-mail: luchaves@timbrasil.com.br
Phone: +55 21 4112-6088
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

53
Investor Relations

Meeting with Investors of March 2017

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (20)

Similaire à Meeting with Investors of March 2017

Similaire à Meeting with Investors of March 2017 (20)

Plus de TIM RI

Plus de TIM RI (20)

Dernier

Dernier (20)

Meeting with Investors of March 2017