Tim meeting with investors - december 2014

1. Company’s Presentation TIM Brasil December, 2014

2. Visit our website and IR app: www.tim.com.br/ir AGENDA  Industry Overview.........................5  Recent Results……………..……….…..10  Network Evolution……………….…...17  Regulatory Update…………….……..21  Fixed Business……………………..…...25  Business Outlook………….….….…..28  Historical Data & Others…….….…32 TIM IR app (English) TIM RI app (Portuguese)

3. KNOWING TIM 3 KNOWING TIM BETTER 15,000 km fiber optical backbone 5,500 km fiber optical backhauling Growth Via Acquisition Brazilian Law “Nível” 1 “Nível” 2 Legal Requirements Demand for transparency and disclosures Highest level of Corporate Governance Requirement of protection for minority shareholders  100% Tag Along  Equal dividends rights  One single class of shares  Strict disclosure policy  Statutory Audit Committee: • Report to Board of Directors • Oversight Financial reporting • Analyze anonymous complaints Unique Telco company listed on the Novo Mercado CORPORATE GOVERNANCE TIM: A Huge Brazilian Company  Presence in Brazil since 1998.  16th largest Private Company in Brazil (source: Exame Magazine - 2013).  Approximately R$32 billion of Market Capitalization.  74.7 million customers (27% Share)  The 2nd Player - Market and rev. share  More than 465,000 points of sales  More than 166 own stores  15 Customer Care Centers (16k attendants)  ~13,500 Antennas  3,432 cities covered  95% of urban pop. covered  51,700 km of optical fiber network  ~12,520 employees  23,000 indirect jobs  R$10.4 billion in taxes payments in 2013  R$3.9 billion invested in 2013 Sales Network Social & Economic GROWTH STRUCTURE Gross Revenues (R$ bln) Customer Base EoP (mln customers) 19 20 25 28 30 2009 2010 2011 2012 2013 3.5 4.2 4.7 5.0 5.2 2009 2010 2011 2012 2013 41 51 64 70 73 2009 2010 2011 2012 2013 EBITDA (R$ bln) CAGR +16% CAGR +12% CAGR +10%

4. Industry Overview

5. TIM represents 30% of the industry mobile revenue* while has 27% of the market share TIM Source: Anatel and Players balance sheet Vivo Claro Oi Mobile Fixed Fixed BB Pay-TV Group Customers 3Q14 (000´s) 74,877 657 145 n.a. 75,679 Market share 3Q14 26.9% 1.4% 0.6% n.a. --- Net Adds 3Q14 (000´s) 674 - 24 n.a. 698 Net Adds 12M (000´s) 1,985 25 76 n.a. 2,086 Net Revs FY13 (R$ Mln) 19,264 657 19,921 Mobile Fixed Fixed BB Pay-TV Group Customers 3Q14 (000´s) 79,823 10,939 4,287 727 95,776 Market share 3Q14 28.7% 23.9% 18.1% 3.7% --- Net Adds 3Q14 (000´s) 466 -96 -83 39 326 Net Adds 12M (000´s) 3,209 502 89 174 3,974 Net Revs FY13 (R$ Mln) 23,002 11,720 34,722 Mobile Fixed Fixed BB Pay-TV Group Customers 3Q14 (000´s) 69,636 11,519 7,297 10,343 98,795 Market share 3Q14 25.0% 25.2% 30.8% 53.2% --- Net Adds 3Q14 (000´s) 860 315 252 238 1,665 Net Adds 12M (000´s) 2,204 1,463 903 930 5,500 Net Revs FY13 (R$ Mln) 12,773 20,424 33,197 Mobile Fixed Fixed BB Pay-TV Group Customers 3Q14 (000´s) 51,427 16,692 6,545 1,032 75,696 Market share 3Q14 18.5% 36.5% 27.6% 5.3% --- Net Adds 3Q14 (000´s) 346 -279 -22 146 191 Net Adds 12M (000´s) 1,414 -1,742 -63 121 -270 Net Revs FY13 (R$ Mln) 9,290 19,132 28,422 The mobile segment represents 78% of the industry access growth *Mobile revenue considers only the 4 major players Fixed / Mobile Fixed BB Fixed voice & BB / TVMobile Fixed BB/ TV Fixed Mobile BRAZILIAN TELCOS X-RAY Fixed / Mobile MACRO & INDUSTRY OVERVIEW 5

6. 56% 35.2 mi 43% 27.0 mi 62.8 mi Possess Internet connection Does NOT Possess Internet connection Total Households 38% High cost 43% of total active connections have speed below 2Mbs 3% 37% 51% 91% MARKET STRUCTURE CHANGING TOWARDS DATA USAGE Households with internet connection (%) With Telephone Only mobile phone Mobile and fixed phone Households Profile Fixed phone only Purchase Power Salaries up to R$1.2k Salaries up to R$3.1k Average Cost 32 mln 2 mln 81 mln 106 mln 23 mln 53% of pop. 70% of pop. Source: PNAD 2012, CETIC.br ‘ TIC Domicílios 2013, Company estimates Re-visiting Market Structure... Market Data Revenues Growth 2016 vs. 2012:  > 13 bln Reais on Mobile (+100%)  > 7 bln Reais on Fixed (+35%) 1 2 57 mln 3 83 mi ~R$40 ~R$100Fixed: Voice and Broadband Entry level plan Mobile: Voice and Data PTIM’s entry level plan 4 Access Growth (users in mln) Fixed Mobile Reasons for not having Internet: 12% Lack of coverage …with room to grow MACRO & INDUSTRY OVERVIEW 6 128.0 23.5 2009 2010 2011 2012 2013 Ago/14 + 5,5x Aug/14

7. Widespread use of Social Media (Social Network Users in Brazil 2011-2017) BRAZILIAN INTERNET USAGE BOOM Internet Penetration in South America (Internet users per 100 inhabitants) Strong adoption of Instant Messaging (WhatApp mln users) High Penetration of E-commerce (E-commerce revenues in Bln US$) 8.4 11.0 17.0 2010 2011 2012 Amazon lauched operations in Brazil in Dec/12 83 mln Internet users – Brazil is the 5th largest nation in the world of internet users 66% 60% 59% 56% 46% 44% 41% 37% 32% 32% 30% 24% Arg Col Chi Uru Bra Ecu Vem Per Guy Sur Bol Par 56.1 66.2 78.3 88.3 97.8 104.2 110.0 2011 2012 2013 2014 2015 2016 2017 #2 in Facebook active users (76mln) only after US #2 in Twitter users (41mln) only after US 2nd largest market outside US 40 38 32 31 25 17 13 11 3 India Brazil Mexico Germany Spain UK Argentina Russia France 28% of mobile users in Brazil use Instant Messaging apps Source: SocialBakers, e-Marketer, Semiocast, G1.com, Folha de São Paulo MACRO & INDUSTRY OVERVIEW 7 465 mln worldwide users List of selected countries as of Feb/14

8. 53% 64% 79% 90% 2006 2007 2008 2009 4% 12%11% 52% 2011 2014 Tablet Smartphone 56% 48% 42% 34% 27% 27% 23% • Incoming calls only device Mobile Penetration (% over population) DATA GROWTH IS THE NEW CHALLENGE Data Penetration (% of data over total revenues in 3Q13) 248 212 166 162 140 139 91 MOU in 2008 (minutes) • Still a lot of phones without data access • Wi-Fi only devices PCs, Notebooks, Feature Phones MACRO & INDUSTRY OVERVIEW 8 ...was similar to the challenge in data growth now Challenge in voice growth in 2009… Goal: increase voice usage Challenge: deliver the best experience in mobile internet Source: Anatel and IBGE Source: Global Matrix High Growth “Fear” to use Low Usage Handset Sales Share 2006 2007 2008 2009 2011 2014 Source: IDC

9. Recent Results

10. 3Q13 3Q14 +6% 3rd QUARTER IN FEW: RESULTS OVERVIEW Financial Highlights Operational Highlights Business generated revenues at a good pace 1 Net Mobile Revenues (ex-incoming) 3Q13 3Q14 +5% EBITDA at a solid performance2 EBITDA reached R$1,332 mln in Q3 1 New offers 2 Bad debt under control Bad debt as % of gross revenues Increasing data penetration3 % of data users over total base 4 Strong performance in 4G market share 4G Market Share 0.7% 0.6% 1.1% 1.1% 0.8% 3Q13 4Q13 1Q14 2Q14 3Q14 -22.3% -21.9% -22.9% -20.5% -2.9% 3Q13 4Q13 1Q14 2Q14 3Q14 Improving fixed business (fixed business net revenues Δ% YoY)5 +19 p.p. Strong cost control (total opex Δ% YoY)4 8.8% 2.3% -2.9% -7.2% -8.1% 3Q13 4Q13 1Q14 2Q14 3Q14 33% 39% 43% 3Q13 2Q14 3Q14 Net Income3 Net Income totaled R$348 mln in Q3 3Q13 3Q14 +11% +6.4% +10 p.p. Source: Anatel 26% 30% Jul/13 Jul/14 +4 p.p. 3Q RESULTS 10

11. 1,283 1,378 3Q13 3Q14 Service EBITDA (ex-handset business) (R$ mln; %YoY) BUSINESS FUNDAMENTALS Core Business Evolution… …Overcoming Challenges Mobile Service Net Revenues (% YoY) Service EBITDA Margin (ex-handset business) (% YoY) (Local + LD + VAS + Others) Business Received 3Q13 3Q14 Business Generated 1 MTR cut impact on revenues (YoY performance) (Incoming Voice + SMS) +7.4% 30% 34% 3Q13 3Q14 +3.6 p.p. 2 SMS Outgoing Revenues (YoY performance) -18% -28% -27% 1Q14 2Q14 3Q14 Net revenues from MTR 3 Macro Environment Brazilian GDP Growth (%YoY) Source: IBGE; CNC Indebted Households (% of total) 1S13 1S14 2.7% 0.5%  A market trend  Greater potential for data growth usage 1.2% -8.2% -19.4% 1Q14 2Q14 3Q14 +5% -34% Operating margin improvement 61% 63% 3Q13 3Q141H141H13 3Q RESULTS 11

12. DRIVEN BY INNOVATION Customer Base (mln users) PREPAID MOBILE ACCOUNT/ MONEY o Partnership: TIM, Mastercard and Caixa Econômica Federal o Focus on unbanked population ( >50% of prepaid base) NEW MUSIC PLATFORM o Partnership TIM and Deezer (top global streaming platform) o More than 35 million music available for download o Maintaining leadership position in the mobile music industry in Brazil Source: ANATEL 3G Market Share (%; mln users) 4G Market Share (%; thd users) Source: ANATEL Source: ANATEL INTERNET SHARING PLANS o Up to 4 devices o No additional charges WEEKLY SERVICE PACKAGE o Voice + Data + SMS o R$ 7 per week NEW M2M PLANS o New data packages launched for M2M services R$ 0.75 DAILY OFFER o Expansion to new regions: PR, SC, MA, RJ o Covering most of the country Adding Value Through Innovation NEW APP FOR LANGUAGE COURSES o Games and quizzes help students developing English skills blah COMMUNICATION APP o Integrated communication (VOIP, IM, SMS) App o First ad campaign 3Q RESULTS 12 44% 39% 29% 29% 15% 21% 12% 10% 23% 25% 25% 26% 39% 34% 12% 14% 76.8 76.6 79.8 69.4 72.9 74.9 63.4 67.4 69.6 48.4 50.0 51.4 3Q12 3Q13 TIM 3Q14 P1 P3 P4 Aug/13 Aug/14 31.4 32.7 44.0 18.2 128 mln Aug/13 Aug/14 TIM 1,605 1,219 857 411 4.2 mln TIM

13. 67% 77% 3Q13 3Q14 3Q13 3Q14Jul - Aug/13 Jul - Aug/14 24 32 3Q13 3Q14 MAINTAINING STRONG DATA PACE Data Adoption Increasing Data Penetration Smartphone Penetration Over Customer Base (%; ∆ YoY) Smartphones Share over New Sales (%; ∆ YoY) Data Users (mln users; % YoY) +32% BOU: Bytes of Use (megabytes) Days of Use +40% +22% 43 mln to go! 28 mln untapped market 15 mln with data handset Data Opportunity over Customer Base 32 mln data users 1Q14 2Q14 3Q14 25% 27% 29% % over total gross mobile service revenues Mix of Data Gross Revenues (R$ mln; %YoY) SMS Web 1,500 +29% +39% +45% +80% ∆ %YoY growth 1,578 Content & Others 1,677 +33% +72% 74.7 mln customer base +23%+20% +22% +10 p.p. New Data World Usage Increase Penetration Increase 25% 44% 3Q13 3Q14 +20 p.p. 3Q RESULTS 13

14. 3Q13 3Q14 ~0.7% ~0.8% 3Q13 3Q14 4,045 180 Thousands 4,207 4,045 +149 Thousands +0.4% FINANCIAL RESULTS ANALYSIS (1/2)Service Net Revenues (R$ mln; % YoY) Reported Revenue 3Q13 Reported Revenue 3Q14 MTR Impact -3.8% 4,225 ‘Pro forma’ Revenue in 3Q14 -306 -4.5 ΔYoY +4.7% -34.5% -2.9% Δ OthersΔ Business Incoming Δ Business Generated Ex-MTR 1,332 109 Thousands EBITDA (R$ mln; % YoY) 1,252 Reported EBITDA 3Q13 Reported EBITDA 3Q14 +151 -71 Δ Opex/ Others Traffic/Data Δ Contribution Margin 24.6% 30.5% 1,332 27.4% 34.1% EBITDA Margin Service EBITDA Margin +4.5% +3.4% MTR Impact +15.1% +6.4% 1,441 ‘Pro forma’ EBITDA in 3Q14 ΔYoY Ex-MTR Efficient Cost Control Interconnection Cost (Δ% YoY) Leased Lines Cost (Δ% YoY) Bad Debt/Sales (% over gross revenues) stable 3Q13 3Q14 -36.2% 3Q13 3Q14 -1.8% Mobile First Margin Analysis (% YoY) +6 p.p.  Strong first margin expansion showing core business improvement  Margin expansion driven by data and VAS (content & others) 3Q RESULTS 14

15. 306 372 386 366 315 348 9M13 9M14 3,980 -2,614* - 1,274 182 275 50% 88% 50% 12% 9M13 9M14 1,446 4,781 3,335 Thousands 791 4,470 3,679 1,749 1,749 -163 +438 mln +30% FINANCIAL RESULTS ANALYSIS (2/2) Net Income Evolution (R$ mln; % YoY) Net Debt (R$ mln; % YoY) EBITDA Debt Cash Net debt Sep/13 Sep/14 Debt Cash Net debt +63% -45% Infrastructure Investment Mix (as % of capex) Cash Flow - 9 months (R$ mln; R$ YoY) YoY Net debt/EBITDA 12M: 0.14x BNDES Loan CAPEX Δ WC OFCF 9M14 *Considering R$3 mln of LT Amazonas leasing adjustment OFCF 9M13 LT Amazonas Leasing 6,219 5,428 2G 3G + 4G +38 p.p. ∆ YoYTechnology 2Q 1Q +10.6% % YoY 3Q 1,007 1,086 +21.6% -5.2% +7.9% 1H14 3Q14 512 -1,786 2013 2014 3Q RESULTS 15

16. Network Evolution

17. INFRASTRUCTURE (R)EVOLUTION (1/3) 2016 MASSIVE LD BACKBONE 65,000 KM OF FIBER 2013 FIBER TO THE AMAZON 46,000 KM OF FIBER BY YE13 Fiber to the site / Mobile Broadband Project Key to Data Growth  Targeting 38 cities in 2013,+100 cities till 2016.  From 2-8 to +100 Mbps.  LTE Ready.  Macro coverage fine tuning.  Focus on IP infrastructure, caching, peering. INTELIG 15,000KM 2009 INTELIG ACQUISITION  New backbone routes- Increasing resilience. 82% urban population 2013 2014 2015 2016 95% urban population #NodeB / eNodeB (3G + 4G) # BTS (2G) 2012 2013 2014e 2015e 2016e New Sites Including Small Cell. POP MW POP MW POP MW POP MW BSC-RNC Site POP MW 2013 2014 2015 2016 LTE 3G 2G Fiber base Infrastructure Backhauling Evolution Increased Coverage and Access Capacity (# new elements) Capex Evolution Towards Data (% of total Capex) Small Cell Approach (# new elements) NETWORK EVOLUTION 17

18. 39 81 2013 1Q14 2Q14 3Q14  900 Mhz rollout according to plan (above 600 sites using the new frequency)  Expanding backhauling INFRASTRUCTURE (R)EVOLUTION (2/3) Mobile Broadband Update Cities Covered with MBB project % of urban population covered  Quick incident resolution: from 56% to 76% within 8h  Reacting faster to network problems - faults opened within the target time: from 85% to 94% Network Hiring + Insource Project Innovative Coverage Expansion Improving Quality and 4G Services (e.g.: SP)  Reduction in dropped call rates and better overall performance  Higher average throughput rates  Improvement in indoor coverage  Increase in data and voice traffics  Expanding # of people in the Network team  From third party TO insource Network Control Center 30% 31% 32% Source: ANATEL app 36% Investing Efficiently  Big Data analysis for capex allocation;  Antenna level return analyses (IRR and payback) 99.0% 97.95% 97.53% 98.36% Voice Access # Antennas NETWORK EVOLUTION 18  Small cells in gas stations: agreement with a tower company to install more than 150 small cells inside Totem  BioSite: sustainable coverage, bringing harmony between environment and technology After Before

19. 3,153 3,106 3,085 3,055 TIM P2 P3 P1 INFRASTRUCTURE (R)EVOLUTION (3/3) Network in Numbers 4G Sites in state capitals  Ran Sharing  Smart Approach Source: ANATEL Number of WIFI & Small Cells Source: Company 714 1,105 4Q13 1Q14 2Q14 3Q14 Number of 3G Sites  9.3% growth in 9M  Coverage: 79.1% of urban population Source: Company 9,074 9,920 4Q13 1Q14 2Q14 3Q14 NETWORK EVOLUTION 19 3,871 3,386 2,983 2,836 2013201220112010 19% 17% 20% % over sales 18% Copper (2-8Mbps) Before FTTS After FTTS Metro Ring From Copper To Fiber based Fiber to the site expansion to ~100 cities CAPEX Analysis CAGR 11% 2G 3G 4G R$2,983 ~R$3,800 2G 3G Capex per Technology (R$ mln) 2011 2014e Capex Evolution (R$ mln)

20. Regulatory Update

21. AMBIENTE REGULATÓRIO Apr/14 Jun/14 Jul/14 Internet Civil Mark Endorsed in April. Presidential Decree has not been scheduled May/14 M2M Fistel Reduction Regulated in May: • TFI*: reduction from R$26.83 to R$5.68 • TFF*: reduction from R$13.40 to R$1.89 Cost Model Cost model that complements the PGMC was approved, extending MTR reduction schedule to 2019 MTR market average (R$/min) 0.36 0.32 0.24 0.16 0.10 0.06 0.03 0.02 2012 2013 2014 2015 2016 2017 2018 2019 Source: Anatel Anatel´s Quality Plan 2 years period of evaluation completed. Waiting for final evaluation. Anatel’s new rules: • Automatic cancellation by remote customer service channels (URA) • Call back in case of calling interruption • Minimum validity period of prepaid credit: 30 days • Offers validity for gross and base • Provide summary of offers • Billing contestation valid for 3 years Anatel’s RGC (consumer law regulation) Sep/14 700MHz Auction Held in 09/30/14 TIM won Block 2 (10+10) MHz, with national coverage 2014 *TFI - Installation inspection fee (charged per access when the service is activated) TFF - Operation inspection fee (annually charged per access) New Parameters for Leased Lines • Leased line (EILD) reference price reduction, in 2016, from ~20% until ~80% • Established regulated reference prices to leased lines speed up to 34 Mbps REGULATORY ENVIRONMENT REGULATORY UPDATE 21

22. REGULATORY UPDATE (1/2) REGULATORY UPDATE 22 700MHz Auction Results TOTAL AMOUNT o Auction totaled R$5.85 billion, 24% lower then the R$7.7 billion expected for minimum prices for all blocks FINAL PRICE o The EAD Contribution of R$890.1 million related to unsold blocks will be distributed proportionately among the sold blocks and will be discounted of the Public Price Block 1 Block 2 Block 3 Block 5 Block 4 Block 6 (10+10) MHz (10+10) MHz (10+10 MHz) (10+10) MHz (10+10) MHz (10+10) MHz In R$ Million Minimum Price 1,928 1,928 1,928 30 1,893 5 7,712 Winning Bid 1,947 1,947 1,928 30 Unsold (1st + 2nd rounds) Unsold (1st + 2nd rounds) 5,852 Premium 1.00% 0.99% 0.00% 0.02% - - - EAD 903.93 903.93 903.93 13.86 887.59 2.48 3,616 Total National Regional 1st Round (10+10) MHz cap 5800 Mhz 2100 Mhz 850 Mhz 700 Mhz < 700 Mhz 0 2 4 6 8 10 Number of BTS 20 15 10 7 5 2 BTS Range (km) 0.52 0.78 0.83 1.07 1.13 1.18 1.22 1.28 1.29 1.29 1.48 2.58 DEN NZL Spain Brazil GER PORT EUA Taiwan Italy France AUS Canada Average = 1.22 AUCTION PLAYERS o Oi and Sercomtel did not participate in the auction Spectrum acquisition at fair price; (Price in USD/MHz/Pop. adjusted for GDP) Better Coverage (Indoor and Rural)

23. 3rd week • Return of the MHz Bond Estimated 700 MHz Auction Roadmap Aug/6 • TCU’s precautionary measure preventing the auction rules publication Jul/17 • Approval of auction terms and interference rules • Definition of Analog TV switch- off dates Aug/21 • Auction publication Aug/16 • ANATEL’s auction rules revision 2nd week • Authorization extracts published in DOU Oct/16 • Counterarguments by TIM 4th week • EAD constitution 4th week • GIRED institution (One TIM representative) 4th week • EAD’s 1st 30% payment July/14 Set/12 • Clarification from ANATEL • Bid bond issuing Sep/1 • Clarifications request • Administrativ e Appeal Aug/20 • TCU approval Oct/13 • Nor TV’s appeal (MMDS operator) against CEL 3rd week • Call for Authorization signature 4th week • Performance Bond (EAD) issuing Oct/7 • Auction Special Commission; Classification and Award decision published in D.O.U. 4th week • Proof of good standing documentation filing • GO/NO GO Decision: Additional Commitments … March/15 April/15 Sep/30 • Auction Sep/23 • Documentation • Bid bond; and • First bid filing September/14 October/14 December/14 REGULATORY UPDATE (2/2) August/14 REGULATORY UPDATE 23 2nd week • ANATEL’s Board Award approval 1st week • Authorization signature • Public Price payment November/14

24. Fixed Business

25. 3Q13 4Q13 1Q14 2Q14 3Q14 TIM SOLUÇÕES CORPORATIVAS: BUSINESS REBOUND Turnaround on fixed business in place 20132012 - 2014 + EBITDA-CAPEXNet Revenues (with intercompany) 2013 2014 1Q14 2Q14 o New business unit organization o IT renewal plan o Multiservice network launch o New branding o New offers and product launch o Restructured sales force 4Q14 o Sales and customer service improvement 3Q14 Financial Performance o Sales multi-channel Improvement o New offers and product launch o MTR reduction Revenues from New Sales (R$; YoY) Revenue reboundSales growthMarket repositioning Infrastructure reinforcement  Governance / EfficiencyBusiness Priorities:  Business development  Quality and Process +5x  Organization restructuring  Dedicated B.U. to all business customer  Fixed + mobile integration FIXED BUSINESS 25

26. 36.7 38.2 3Q13 3Q1421 13 3Q13 3Q14 Accelerating Operational Performance… LIVE TIM: SPEEDING UP GROWTH 43 120 3Q13 3Q14 Customer Base (000 users) Source: Anatel 881 1,366 3Q13 3Q14 Netflix Broadband Ranking (average streaming speed representation) 3Q13 3Q14 ARPU (R$; YoY%) … with Support of Quality Experience Addressable Households (000 HH) Source: Company +2.8x+55% +32% New Line Payback (months) -38% Gross Adds (000 users) 18 31 3Q13 3Q14 +74% Live TIM Net Adds Share (% of SP and RJ market additions) Average Speed of New Sales (mbps) +4.1% 16% 31% Aug/13 Aug/14 Source: Company FIXED BUSINESS 26

27. Business Outlook

28. CONCLUSION Q3 Conclusions: A good balance between objectives Perspectives: Moving the plan forward Strategic… Financial…Operational… EBITDA Net Income +6.4% YoY +5% YoY +11% YoY MBB in 81 cities OPEX Control Prepaid leadership Infrastructure growth Evolving revenue profile Renewed Mission/ Purpose/Values New 3-year plan “To connect and take care of every customer, so everyone can do more” o Industry leadership o Long term commitment o 4G license 700MHz o Tower sale supporting investment plan Quality Business Generated TIM Protagonist • VOICE • SMS • MTR • DATA • DIGITAL SERVICES o Data and digital services leadership o Infrastructure o Customer base value o Customer experience o One TIM initiative Data Users (mln users) Data + VAS (ex-SMS) Smartphones (over total base) 32 mln 32% YoY 44% +19 p.p. YoY R$1.3 billion +49% YoY BUSINESS OUTLOOK 28

29. 21.3 27.5 2012 2013 2016e 2012 2013 2016e +xx% OFFER EVOLUTION 136 148 >170 2012 2013 2016e 18% 21% >40% VAS Gross Revs. VAS/Revs.30% 37% >50% 43% 55% >75% 2012 2013 2016 +xx% +29% +22% Smart/Web phone Penetration (% over total base of lines) Voice MOU (minutes) Data Users (% of Data Users in CB; million users) VAS Revenue Growth (% of Mobile Services Gross Revenues; R$ mln) BUSINESS OUTLOOK 29 2012 2013 2016e 2012 2013 2016e

30. TIM PART: 2014-2016 GUIDANCE Total Net Revenues EBITDA CAPEX 18,764 19,921 2012 2013 2014e 2015e 2016e 5,012 5,207 2012 2013 2014e 2015e 2016e R$ million R$ million 626 3,139 3,871 3,487 384 2012 2013 2014e 2015e 2016e R$ million Infrastructure Others/Licenses 3,765 Guidance 2013-2016 CAGR: Mid Single Digit Growth 2013-2016 CAGR: Mid Single Digit Growth Total CAPEX 2014-2016: ~R$11 billion* *Does not consider 4G licenses (700Mhz). BUSINESS OUTLOOK 30

31. Historical Data & Others

32. RECENT TOWERS DEALS HISTORICAL DATA & OTHERS 32

33. QUARTERLY HISTORICAL DATA (R$ THOUSAND) HISTORICAL DATA & OTHERS 33

34. ANNUAL HISTORICAL DATA (R$ THOUSAND) HISTORICAL DATA & OTHERS 34

35. HISTORICAL DATA: OPERATIONAL & FINANCIAL RATIOS ROA: NOPLAT/Avg. Total Assets. Calculation considers organic Net Income and EBITDA HISTORICAL DATA & OTHERS 35

36. Stock Performance (base 100)* STRUCTURE AND STOCK PERFORMANCE HISTORICAL DATA & OTHERS 36 80 90 100 110 120 130 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 TSU -0.2% TIMP3 +4.5% Ibovespa +5.1%

37. Investor Relations Team Avenida das Américas, 3434 - Bloco 01 6° andar – Barra da Tijuca 22640-102 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 Leonardo Wanderley E-mail: lwanderley@timbrasil.com.br Phone: +55 21 4109-4017 Rodrigo Godoy E-mail: rcgodoy@timbrasil.com.br Phone: +55 21 4109-3446 Luiza Chaves E-mail: luchaves@timbrasil.com.br Phone: +55 21 4109-3751 Visit our Website www.tim.com.br/ir Safe Harbor Statements 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 & IR CONTACT 37

38. Appendix

39. MACRO SCENARIO OUTLOOK (1/2) • Market consensus shows a softer growth in GDP. • Consensus expects a deterioration in overall macroeconomic scenario on the medium term. • Market expects that the government is unlikely pushing inflation towards the center of the target. • With inflation and FX Rate going up, SELIC is expected to grow, specially after the recent decision to rise the rate to 11.25% p.y. GDP Forecast (% YoY Growth) Inflation Forecast (IPCA: 12 months) Interest Rate Forecast FX Rate Forecast (R$/U$ - year average)(% Selic Target p.y. – year average) Source: Central Bank/Bloomberg 5.9 6.3 6.3 5.9 4.5 2013a 2014e 2015e 2016e 10.0 11.0 11.5 12.3 2013a 2014e 2015e 2016e 2.2 2.4 2.5 2.4 2013a 2014e 2015e 2016e 2.3 0.3 1.2 2.3 0.7 3.0 4.0 2013a 2014e 2015e 2016e Government’s Target Government projection Market Consensus Government projection Market Consensus APPENDIX 39

40. MACRO SCENARIO OUTLOOK (2/2) • Market expects the unemployment rate to increase in 2015, as jobs creation remains low. • Even with a high number of indebted families, families in default figure has been decreasing, probably guided by the constant reduction of unemployment and real income gains, specially on classes C and D. Unemployment (%) Formal Jobs Creation* (In Thousand) Indebted Households* Families on Default (% of total)(% of total) Source: Central Bank/Bloomberg 61.6 58.9 61.4 63.2 3Q11 3Q12 3Q13 3Q14 -307 303 189 237 4Q13 1Q14 2Q14 3Q14 24.3 19.1 20.6 19.1 3Q11 3Q12 3Q13 3Q14 6.0 5.4 5.4 4.9 5.0 5.6 6.1 3Q11 3Q12 3Q13 3Q14 2014e 2015e 2016e * Families that declared to have debts on the categories of: credit card, stores bills, personal loans, car loans and insurance and postdated check * Families that declared to have debts overdue for more than three months *Number of job positions with the complete registration of the employee APPENDIX 40

41. Cofins PIS/ PASEP ICMS Fistel Fust/ FUNTEL TotalTotalFust/ FUNTEL PIS/ PASEP ICMSCofins Fistel % Gross Revenues TELCOS’ TAX BURDEN 3% ~1% 28% ~5% 1.5% ~39% Taxation represents almost 40% of companies gross revenues Tax Burden Composition Telecom Industry Tax Payments1 (R$ Bln) Source: players Balance Sheet 1 Considers TIM, Telefonica, Oi and AMX 45.7 46.0 2012 2013 APPENDIX 41

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