Tim meeting with investors - january 2015

1. Company’s Presentation TIM Brasil January, 2015

2. Visit our website and IR app: www.tim.com.br/ir AGENDA  Industry Overview.........................5  Recent Results……………..……….…..10  Network Evolution……………….…...18  Regulatory Update…………….……..22  Fixed Business……………………..…...26  Business Outlook………….….….…..29  Historical Data & Others…….….…33 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$3.8 billion expected to be invested in FY2014 Sales Network Social & Economic GROWTH STRUCTURE Gross Revenues (R$ 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 12M (000´s) 1,985 25 76 n.a. 2,086 Net Revs FY13 (R$ Mln) 19,264 657 19,921 ARPU 3Q14 17.4 n.a. n.a. n.a. --- 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 12M (000´s) 3,209 502 89 174 3,974 Net Revs FY13 (R$ Mln) 23,002 11,720 34,722 ARPU 3Q14 23.6 n.a. n.a. n.a. --- 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 12M (000´s) 2,204 1,463 903 930 5,500 Net Revs FY13 (R$ Mln) 12,773 20,424 33,197 ARPU 3Q14 15.0 n.a. n.a. n.a. --- 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 12M (000´s) 1,414 -1,742 -63 121 -270 Net Revs FY13 (R$ Mln) 9,290 19,132 28,422 ARPU 3Q14 17.4 n.a. n.a. n.a. --- 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 (1/3)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 50% 88% 50% 12% 9M13 9M14 1,446 4,781 3,335 Thousands 791 4,470 3,679 1,749 1,749 +30% FINANCIAL RESULTS ANALYSIS (2/3) Net Income Evolution (R$ mln; % YoY) Net Debt (R$ mln; % YoY) Debt Cash Net debt Sep/13 Sep/14 Debt Cash Net debt +63% -45% Infrastructure Investment Mix (as % of capex) YoY Net debt/EBITDA 12M: 0.14x BNDES Loan 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% 2013 2014 3,980 -2,614* - 1,274 182 275 +438 mln EBITDA Cash Flow - 9 months (R$ mln; R$ YoY) CAPEX Δ WC OFCF 9M14 *Considering R$3 mln of LT Amazonas leasing adjustment OFCF 9M13 LT Amazonas Leasing 1H14 3Q14 512 -1,786 3Q RESULTS 15 -163

16. 9,766 1,932 431 2,201 14,330 3,029 3,270 2,328 1,723 3,980 Total EBITDA From Revenue to EBITDA in 9M14 (absolute value in 9M14 in R$ mln; %ΔYoY) Business generated Products Selling & marketing Network & interconnection Total Net Revenues 3Q RESULTS 16 Business incoming Fixed business COGS Others ΔYoY +6.9% -28.7% -16.0% -7.5% -2.8% +2.5% -18.6% -5.9% +8.9% +7.3% 1,685 5,479 - 3,656* 399 122 2,345 +660 mln EBITDA Cash Flow - LTM from 3Q14 (R$ mln; R$ YoY) CAPEX Δ WC OFCF LTM14 *Considering R$3 mln of LT Amazonas leasing adjustment OFCF LTM13 LT Amazonas Leasing FINANCIAL RESULTS ANALYSIS (3/3)

17. Network Evolution

18. 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 18

19. 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) Voice Access # Antennas NETWORK EVOLUTION 19  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

20. INFRASTRUCTURE (R)EVOLUTION (3/3) Network in Numbers 4G Sites in state capitals  Ran Sharing  Smart Approach Source: ANATEL – Dez/14 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 20 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) 3,153 3,114 3,069 3,066 TIM P3 P1 P4

21. Regulatory Update

22. 1st Round (10+10) MHz cap Block 4 (10+10) MHz Block 5 (10+10) MHz Block 6 (10+10) MHz Block 2 (10+10) MHz Block 3 (10+10) MHz Block 1 (10+10) MHz Total R$ mln Regional National Minimum Price 1,893 30 5 1,928 1,928 1,928 7,712 Winning Bid Unsold 30 Unsold 1,947 1,928 1,947 5,852 Premium - 0.02% - 0.99% 0.00% 1.00% 38 Final Public Price (Anatel) - 26 - 1,739 1,720 1,739 5,224 EAD 887.59 13.86 2.48 903.93 903.93 903.93 3,616 EAD w/ unsold blocks obligations - 18.9 - 1,119 1,119 1,119 3,616 Better Coverage (Indoor and Rural) REGULATORY UPDATE (1/2) REGULATORY UPDATE 22 700MHz Auction Results Auction totaled R$5.85 billion, 24% lower then the R$7.7 billion expected for minimum prices for all blocks EAD Contribution of R$890.1 million related to unsold blocks will be distributed proportionately among the participants and will be discounted of the Public Price 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 Oi and Sercomtel did not participate in the auction Spectrum acquisition at fair price (Price in USD/MHz/Pop. adjusted for GDP) UPLINK Central Band TV Channels Guard Band Private Limited Service 4 2 3 1 Central Band5 6

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. QUALITY Voice Metrics 3G Data Metrics 1.13% 1.17%1.20% 0.75% 0.57% jan/13 mar/13 mai/13 jul/13 set/13 nov/13 jan/14 mar/14 mai/14 jul/14 set/14 97.80% 98.49% 96.84% 98.05% 95.96% jan/13 mar/13 mai/13 jul/13 set/13 nov/13 jan/14 mar/14 mai/14 jul/14 set/14 TIM VIVO CLARO OI Voice Access Voice Drop 3G Data Access 3G Data Drop 3.07% 1.44% 1.83% 2.35% 0.93% jan/13 mar/13 mai/13 jul/13 set/13 nov/13 jan/14 mar/14 mai/14 jul/14 set/14 99.37% 99.02% 99.13% 99.20% 92.92% jan/13 mar/13 mai/13 jul/13 set/13 nov/13 jan/14 mar/14 mai/14 jul/14 set/14 TIM VIVO CLARO OI 95% 2% 98% 95% industry goal industry goal P1 P2 P4 P1 P2 P4 REGULATORY UPDATE 24

25. Fixed Business

26. 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 26

27. 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 27

28. Business Outlook

29. 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 29

30. 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 30 2012 2013 2016e 2012 2013 2016e

31. 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 31

32. Historical Data & Others

33. RECENT TOWERS DEALS HISTORICAL DATA & OTHERS 33

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

35. ANNUAL HISTORICAL DATA (R$ THOUSAND) HISTORICAL DATA & OTHERS 35

36. HISTORICAL DATA: OPERATIONAL & FINANCIAL RATIOS ROA: NOPLAT/Avg. Total Assets. Calculation considers organic Net Income and EBITDA HISTORICAL DATA & OTHERS 36

37. 8.0% 7.7% 7.6% 2012 2013 9M14 Short term 2.1 2.0 1.4 1.2 0.9 0.6 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 BALANCE SHEET ANALYSIS Debt Composition P/B Market Cap/Book Value Source: Company/Bloomberg 54.3% 59.4% 58.9% 60.1% 56.0% 50.4% 1Q 2Q 3Q 4Q 2014 2013 2012 Long Term 20.7 19.7 7.7 11.1 6.2 2.7 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 P/E Market Cap/Earnings Net Profit Margin 43.0 46.3 48.2 46.6 48.6 48.3 47.3 43.4 44.9 44.9 43.9 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Accounts Receivable Turnover (days) 118.2 103.2 114.4 128.5 132.1 105.0 123.5 149.7 170.9 151.7 147.5 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Payable Turnover (days) HISTORICAL DATA & OTHERS 37 TIM P4 P1 TIM P4 P1

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 report of December 2014/Bloomberg 5.9 6.4 6.5 5.9 4.5 2013a 2014e 2015e 2016e 10.0 11.0 12.5 12.3 2013a 2014e 2015e 2016e 2.2 2.4 2.7 2.8 2013a 2014e 2015e 2016e 2.3 0.1 0.6 2.0 0.5 0.8 2.0 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 report of December 2014/Bloomberg/CNC 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 5.5 5.7 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

42. 1Q14 2Q14 3Q14 4Q14 TIM • Increase of SMS and internet offer from R$0.50 to R$0.60/day each • Increase on the monthly charge of TIM Liberty plans • Increase on the monthly charge of Liberty Controle plans • Infinity Turbo 7 launch • SMS + Data for R$12/month available to Liberty Controle plans • Infinity Day launch • Increase of Web+SMS package to from R$0.75 to R$0.99/day • Increase on SMS and data services to R$0.75/day each • Increase of R$1 on Liberty Torpedo • Internet sharing with up to 4 devices • Controle Whatsapp launch Vivo • Vivo Tudo: weekly charge of R$6.90 including voice, SMS and data • Increase of R$2 on monthly charge of Controle plans • Increase of monthly package ‘Vivo Sempre Internet’ from R$9.90 to R$11.90 • Increase on ‘Vivo Sempre’ tariff from R$0.05 to R$0.06 • Obligation to contract data package on postpaid plans • 4G available on ‘Vivo Tudo’ and prepaid packages • New ‘SmartVivo pós’ plans Claro • Unlimited prepaid: increase of on- net calls tariff from R$0.21 to R$0.25 • Increase of SMS and internet offers to R$0.60/day each • Unlimited Controle plan: on net calls increased from R$0.21 to R$0.25 • Free on net local calls M-M in the main code areas • SMS + Data package per R$0.99/day • Promo 6 launch: recharge of R$6 with voice, SMS and data benefits • New offer to SP with voice, SMS and internet benefits for R$0.99/day • Increase on M-F off-net calls to R$0.70/call • Increase of SMS and Web services to R$0.75/day each Oi • Increase of internet and SMS offers to R$0.60/day each • Increase on daily tariff of internet to R$0.60/day • New package with SMS+ Data + Wi-Fi for R$0.75/day • Obligation to contract data package on postpaid plans • Increase of M-M and M-F on-net calls to R$0.25/day, local M-F off- net to R$0.70/day and SMS + Web + Wi-Fi to R$0.99/day OFFERS: 2014 MAIN CHANGES APPENDIX 42

43. MOBILE MARKET SHARE APPENDIX 43 Mobile Market Share 29,8% 29,6% 29,7% 29,1% 28,8% 28,7% 28,6% 28,5% 28,7% 28,8% 28,7% 26,8% 26,9% 26,8% 26,9% 27,0% 27,2% 27,2% 27,1% 27,0% 26,9% 26,9% 24,6% 24,6% 24,5% 24,9% 25,1% 25,0% 25,1% 25,3% 25,1% 24,9% 25,0% 18,5% 18,7% 18,7% 18,8% 18,7% 18,7% 18,6% 18,5% 18,5% 18,5% 18,5% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 P1 TIM P3 P4 32.7% 34.1% 35.4% 36.5% 24.9% 25.7% 25.8% 25.2% 13.8% 14.1% 13.7% 12.8% 19.4% 17.9% 18.6% 19.0% R$ 0,1 R$ 0,1 R$ 0,2 R$ 0,2 R$ 0,3 R$ 0,3 R$ 0,4 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 P1 TIM P4 P3 Mobile Service Revenue Share

44. STRUCTURE AND STOCK PERFORMANCE HISTORICAL DATA & OTHERS 44 TSU -15.9% TIMP3 -4.3% Ibovespa -2.7% 80 90 100 110 120 130 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Stock Performance (base 100)*

45. 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 45

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