Meeting with investors of november 2013

Meeting With Investors TIM Participações S.A.

November 2013

15th Listing Anniversary

TIM: A Huge Brazilian Company

Presence in Brazil since 1998.

13th largest Private Company in Brazil (source: Exame

Magazine - 2013).

Approximately R$22 billion of Market Capitalization.

Brazilian Law

“Lei das S.A”

“Nível” 1 “Nível” 2

Legal

Requirements

Demand for

transparency and

disclosures

Highest level of

Corporate

Governance

Requirement of

protection for

minority

shareholders

2

Corporate Governance

Knowing TIM Better

Unique Telco company listed on the Novo Mercado:

. 100% Tag Along and equal dividend rights

. One single class of shares

. Independent Board members

. Strict disclosure policy

• 72.9 million customers (27.2% Share)

• The 2nd Player - Market and Rev. Share.

• More than 400,000 points of sales.

• More than 130 own stores.

• 11 Customer Care Centers (14k attendants)

Sales

• More than 12,000 Antennas.

• ~3,400 cities covered.

• 95% of urban pop. covered.

• ~46,000 km of optical fiber network.

Network

• 11,800 employees.

• 23,000 indirect jobs.

• R$9.1 billion in taxes payments in 2012.

• R$3.8 billion invested in 2012.

Social

&

Economic

27.8

1998

Gross Revenues

(R$ Bln)

Customer base

EoP (Million)

2012 1998

70.3

2012

15,000 km fiber

optical backbone 5,500 km fiber

optical backhauling

Organic

Growth

Growth

Via

Acquisition

Real GDP Forecast

(%YoY Growth; Source: BaCen)

Macro Scenario: A Different Outlook

3

3,3

3.8 3.6

2,4 2,3 2,4 2,4

2013 2014 2015 2016

Old Scenario

New Scenario

Inflation Forecast

(IPCA - %YoY Growth; Source: BaCen)

5.5 5.5

5.0

5.8 6.0

5.5 5.4

2013 2014 2015 2016

Old Scenario

New Scenario

Interest Rate Forecast

(%Selic Target p.y. - Year average; Source: BaCen)

7.3 8.7 9.0 8.8

8.4

10.3 10.3 10.0

2013 2014 2015 2016

Market Consensus on Oct/12

Market Consensus on Oct/13

FX Rate Forecast

( R$/US$ - Year average; Source: BaCen)

2.0 2.0 2.0 2.1

2.2 2.3 2.4 2.4

2013 2014 2015 2016

Market Consensus on Oct/12

Market Consensus on Oct/13

• Market consensus shows

now a softer growth.

• Telecom industry has

shown resilience, specially

in the mobile side, but it is

not completely immune.

• Mobile sector will continue

to benefit from fixed-mobile

substitution, now also

strong on data.

Industry Overview & TIM Business Opportunity

TIM

(2S13)

Vivo

(2S13)

América Móvil Brazil

(2S13)

Oi

(2S13)

Fixed Mobile

Fixed Mobile Fixed BB/TV Fixed / Mobile

Brazil Telcos X-Ray

5

Fixed BB/TV Fixed / Mobile

Mobile Fixed Fixed

BB

TV TOTAL

Customers (‘000) 49,708 18,330 5,911 890 ND

Market Share 18.7% 41.1% 29.2% 5.2% ND

Net Rev. (R$ Mln) 4,571 9,543 14,114

Mobile Fixed Fixed

BB

TV TOTAL

Customers (‘000) 66,472 10,516 5,945 8,985 ND

Market Share 25.0% 22.7% 29.4% 53.0% ND

Net Rev. (R$ Mln) 6,121 9,914 16,035

Mobile Fixed Fixed

BB

TV TOTAL

Customers (‘000) 76,200 10,416 3,837 537 ND

Market Share 28.7% 23.3% 18.9% 3.2% ND

Net Rev. (R$ Mln) 11,177 5,870 17,047

Mobile Fixed Fixed

BB

TV TOTAL

Customers (‘000) 72,195 492 26 - ND

Market Share 27.2% 1.1% 0.1% - ND

Net Rev. (R$ Mln)* - - - - 9,699

Fixed BB

*Organic Revenue

Voice Revenues R$ Bln

Data Revenues

(R$ bln; Source: TIM)

Str

ate

gy/

Ob

jective

s

Very large voice market, although declining.

High price umbrella in Fixed services.

Customer migration to higher plans / hybrid and

postpaid.

Emerging data/internet user population.

Large unserved Internet demand.

Old Fixed networks legacy + bundle requirement.

Mobile as the natural vehicle for inclusion.

A. Continue to Explore Voice FMS B. Lead the Data/Internet Wave

Ma

rke

t

Mobile

Fixed

Voice Revenues R$ Bln

C. Manage Existing Customer Base

2.7 4.0 5.8 8.0

10.5

13.3 16.7

13.4 15.1 16.7 17.9 19.2 20.4 21.7

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

… Massive Mobile Internet Access

Customer

Base

Expansion

Internet and

Data

For All FMS Customer Base Growth

* Excluded non recurrent and non-operational revenues (e.g.: towers sell)

The Opportunity in Brazil and TIM’s Strategic Positioning

Voice Revenues

(R$ bln; Source: TIM)

33.8 39.7

41.1 42.8 45.7 46.8 46.0*

39.9 41.2

40.4 38.4 36.4 34.1 32.3

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Mobile

Fixed

6

-3%

-7%

+6%

+18%

Long Distance Leader

50% Market Share

2nd Overall

72.9 million customers

Prepaid Leader

28.8% Market Share

Leveraging on Pure Mobile Competitive Advantage

Voice FMS: Mobile is more convenient than Fixed…

(R$/minute, % over households with phones.)

7

2006 2007 2008 2009 2010 2011 2012

50% mobile

discount

Voice FMS: …TIM, with no legacies, can only gain on the trend

(R$ billion, Net Revenue per Group (2012))

Source: Company estimates; CETIC jun’13; Akamai ; PNAD - IBGE

Mobile 21.4

12.2 9.1 17.9

Fixed + Data + Pay TV

12.5

18.5 19.0

0.9

4.3

Total 33.9 30.7 28.1 18.8 4.3

Vivo Claro Oi TIM GVT

FMS

Focus

A pure mobile approach is the most suitable strategy to capture both opportunities

29.5%

Rev. Share

Customer Base Evolution

(Market Share, Source: Anatel)

30,1% 28,6%

24,5%

27,2% 25,5%

25,1%

19,5% 18,6%

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Oi

Claro

Vivo

+2.7p.p.

-1.6 p.p.

-0.3 p.p.

-0.9 p.p.

3Q13 x 3Q10

TIM

48,9% 56,3%

2009 2012

% of households w/

mobile phones only

Fixed Broadband Average Speed

(% Customers)

Brazilian Internet Opportunities

75% 72% 60% 67% 66%

24% 26% 38% 31% 31%

1% 1% 1% 2% 3%

2Q12 3Q12 4Q12 1Q13 2Q13

> 12Mbps

>2 Mbps até 12Mbps

≤ 2 Mbps

88% 84% 80% 78% 76%

8% 10% 14% 16% 17%

5% 6% 6% 6% 7%

2Q12 3Q12 4Q12 1Q13 2Q13

> 12Mbps

>2 Mbps até 12Mbps

≤ 2 Mbps

49% 44% 41% 38% 35%

49% 53% 56% 59% 62%

3% 3% 3% 3% 3%

2Q12 3Q12 4Q12 1Q13 2Q13

> 12Mbps

>2 Mbps até 12Mbps

≤ 2 Mbps 1% 1% 1% 1% 1%

59% 57% 55% 52% 49%

40% 42% 44% 47% 50%

2Q12 3Q12 4Q12 1Q13 2Q13

> 12Mbps

>2 Mbps até 12Mbps

≤ 2 Mbps

8

TIM`s services portfolio is ready to capture

opportunities in all broadband segments,

going mobile or going through its fixed ultra

broadband.

Pure Mobile Strategy Paying Off

9

Users’ Preference for Mobile

(%Households w/ mobile phones only)

Net Revenues

(% YoY)

EBITDA

(% YoY; Not including assets sales; Mobile as TIM)

Low Fixed Broadband Quality

( Brazil’s Average Speed; Source: Akamai)

Entering in Data World Via Mobile

(Mln users; Source: Anatel)

Fixed

Incumbents

Mobile

48,9% 56,3%

2009 2012

2Q13 2.4 Mbps

ANATEL: >50% of fixed broadband

connections are below 2Mbps

Mobile

Fixed 4,1

14,6

33,2

52,5

77,9

11,4

13,8

16,3 19 20,2

2009 2010 2011 2012 Aug/13

+18x

+77%

-7,0% -6,1%

-2,6%

3Q11 3Q12 3Q13

-6,2% -4,3%

-14,1%

3Q11 3Q12 3Q13

11,6%

7,1% 6,9%

3Q11 3Q12 3Q13

11,7%

3,9% 4,2%

3Q11 3Q12 3Q13

Fixed

Incumbents

Mobile

TIM’s Strategic Priorities

10

Network Quality

& Infrastructure 1

Strategy &

Offer Evolution 2

Institutional

Relationships 3

People &

Organization 4

Solid Capex investment program.

Significant coverage and capacity improvement through

extensive own fiber infrastructure.

Network Quality War Room approach.

Efficient 4G Investment with RAN sharing.

Continuous evolution of our offer platforms

(transparency, simplicity, convenience, micro-

segmentation).

Promoting data usage with handset strategy, new VAS

offers (e.g. TIMmusic) and 4G launch.

Expanding postpaid and business user base.

Developing option value of Live TIM ultra-broadband

services.

External Positioning: Innovation, Quality, Transparency.

“Portas Abertas” customer portal for increased

transparency and network quality evolution.

Focus on regulatory and institutional dialogue.

People Focus – highly skilled, highly motivated, right

organization.

Best Place to Work initiatives.

Renewing Sense of Pride and Belonging – One of

Brazil’s Top 15 Companies.

Recent Results: 3Q13 in Few

A Quarter in Few

12

Operational

Total Revenues

− Service

− VAS*

− Handset

EBITDA

CAPEX

3Q13 YoY 6M13 YoY

5,083 7.6% 9,655 7.1%

4,207 2.6% 8,152 1.9%

876 40.9% 1,503 47.9%

1,252 4.2% 2,456 3.0%

R$ Million

3Q13 YoY 6M13 YoY

Postpaid (mln users)

MOU (min)

ARPU

11.9 16.4% 11.4 13.9%

150 8.4% 146 15.1%

R$ 18.6 -1.6% R$ 18.3 -2.2%

Financial

1,175 52.3% 1,593 -0.4%

1,362 21.5% 2,377 25.0%

*Mobile Gross Revenue

4G Update…

(Lines; Market Share; Source: Anatel)

Customer Base Evolution

(Million lines; Source: Anatel; TIM)

Operational Performance (1/2): Base Evolution & Quality Indicators

13

59.1 59.6 60.3 60.8 61.0

10.3 10.7 10.9 11.4 11.9

Pre

Paid

Post

Paid

4Q12

70.3

3Q12

69.4

1Q13 2Q13 3Q13

71.2 72.2 72.9

D% YoY

+16%

+3%

+5%

May/13 Jun/13 Jul/13 Aug/13

Prudent strategy in the auction &

efficient roll-out paying-off

2,961

4,518

2,722

3,801

7,192 7,075

4,176

6,692

3Q12 4Q12 1Q13 2Q13 3Q13

P1 P3 P4 TIM

94.9

93.0

76.1

62.6

Jun-12 Oct-12 Feb-13 Jun-13

Anatel IDA - Index of Caring Performance Claims at Consumer’s Protection

Agency (SINDEC - Procon)

Customer Care Performance

(Points; Complaints over 1000 lines; Average monthly claims. Source: Anatel (last reported); SINDEC)

0.2

0.3

0.2 0.3

0.3

0.4 0.5

0.7

Jun-12 Oct-12 Feb-13 Jun-13

Anatel Complaints

Mix of Post Paid

(%; Source: Anatel)

14.8%

16.4%

3Q12

3Q13

99.9

98.0

92.8

84.9

23% 20%

26%

29%

Market Share

29%

SAC* & SAC/ARPU

(R$/gross adds; months)

Operational Performance (2/2): Strong Efficiency

14

Gross Additions

(Million lines; Source: TIM)

8.7

10.2

3Q12 3Q13

+17%

Bad Debt

(R$ Million; % of Gross Revs.)

33.6

30.5

3Q12 3Q13

-9% 80

56

3Q12 3Q13

-31%

1.1% 0.7%

Commercial

Network

SAC

(R$)

SAC/

ARPU

(months)

Total Traffic

(Bln minutes)

28.7

32.8

3Q12 3Q13

+14%

1.8 1.6

Leased Lines Costs

(R$ million)

3Q12 3Q13

0%

*Subscriber Acquisition Cost

% of

Gross

Revs.

Bad

Debt

Marketing: Keeping the Innovative Approach

Chip Torcedor

TIM SIM blister for each

team.

Increase Stickiness

14 Teams alread

sponsored

15

Liberty Controle Express

Pushing on Postpaid migration

Payment via credit card

jan/13 sep/13

~7x

+56%

sep/12 sep/13

Young

Young segment positioning

Member get member through

social network since 2010.

Nonstop

Innovation

Recent

Past

VOICE DATA

Recarga Troco International LD Infinity Web + SMS TIM Music

Talk unlimited on-net for

R$2 for 2 days.

Capture extra “charge”.

Leveraging on micro

recharge on physical

PoS.

Up selling approach,

targeting only customer

base.

US:R$0,20/min.

+ 8 countries: R$0,50/min

FMS initiative.

Capturing the unexplored

mobile international calls

market.

Market attended Today

through fixed carries.

Internet + unlimited SMS

on/off-net.

Pay per day.

Combining Web and

SMS offers.

Cross selling WEB and

SMS .

Unlimited download.

Pay R$0.50/day.

Over the top service.

Increase customer

stickiness.

Network friendly.

13 million songs already

downloaded.

1,122

1,362

3Q12 3Q13

39% 43%

46% 50%

52%

3Q12 4Q12 1Q13 2Q13 Jul 13

Marketing: Smartphone Supporting Data Growth

Data Users

(% of Data Users in CB; million users)

VAS Revenue Growth

(% of Mobile Services Gross Revenues; R$ Million)

Smartphone Sales

(% total handset sale)

19% 23%

Smart/Web phone Penetration

(% over total base of lines)

VAS

Gross

Revs.

VAS/Revs.

67%

57%

46%

46%

42%

13%

21%

24%

19%

30%

21%

22%

30%

35%

28%

3Q13

2Q13

1Q13

4Q12

3Q12

Smartphone Webphone Essencial

+22%

16

Smartphone approach to support

data usage growth.

EBITDA neutral. No subsidy Policy!

Leadership position in market of

handset (3Q13)

39% market share of

smartphones sold

19.9 24.5

3Q12 3Q13

29% 34%

+23%

Launching entry-level 3G tablet

46% Notebook

36% Tablets

17% Desktop

44%

56%

2010 2012 2014 2016

Devices Share at Sales

Financials: Evolution Analysis

1,201

EBITDA

3Q12

EBITDA

3Q13

+10

ΔMkt

and Sales

ΔPers./G&A

and others

-97

ΔHandset

Margin

-6

ΔNetwork

and ITX

+38

ΔServ.

Revs

25.4% 25.3%

31.0% 31.5%

+107

+10.4% +1.2% -55.2% -0.7% +2.6% ΔYoY

+4.2%

622 876

4,100 4,207

Tho

usa

nd

s

Revenue

3Q12

Δ Handset Δ Fixed

Services

Revenue

3Q13

Δ Mobile

Services

+254 -45 +151

Service

Handset

4,722

-22.3% +3.9% ΔYoY

5,083

1,252

24.6%

30.5%

17

+40.9%

+2.6% EBITDA Margin

Service EBITDA Margin

EBIT Net Financial

Result

Net Income

9M13

Taxes and

Others

Depreciation/

Amortization

EBITDA

9M13

From EBITDA to Net Income

(R$ Million)

ΔYoY +2.2% +4.9% +48% -1.9% +2.1%

3,708 -2,045

1,663 -202 -454

1,007

Net Revenue Evolution

(R$ Million, % YoY)

EBITDA Analysis

(R$ Million)

+7.6%

+40.9%

+3.4%

3Q13:

R$315 mln

-15.6% YoY

624

843

1,314

Financial Position

Capex

(R$ Mln)

D Working Capital

(R$ Mln)

853 772

1,175

252

923

3Q11 3Q12 3Q13

320 413

3Q11 3Q12 3Q13

987

18

OFCF

(R$ Mln)

Net Debt

(R$ Mln)

3Q11 3Q12 3Q13

3Q11 3Q12 3Q13

Net DEBT /

EBITDA

(trailing 12m)

0.32 0.29 0.28

D OFCF YoY: +R$471

~94% in

infrastructure

+29%

+139%

+52%

-10%

+35%

+56%

1,458 1,550

252 LT Amazonas

1,446

1,194

LT Amazonas

Network and Infrastructure

Network Check Point: Mobile BB Plan & Backhauling

20

POP MW

POP MW POP MW

POP MW

BSC-RNC Site

POP MW

Key Steps for Improvement: MBB/FTTS Project

Own fiber reaching ~85% of antennas at major

cities.

Targeting 38 main cities till year end.

FTTS: From 2-8 Mbps link to +100 Mbps.

Caching, Peering, Web Acceleration.

Macro coverage fine tuning for mobile

broadband.

574

2,394

979

1,660

Apr/13 Sep/13

4x

Downlink throughput (Kbps)

TIM

Market Average

Backhauling

Evolution

Results for Recife

Our 1st out of 38 cities

Source: TIM MBB (HSPA+ DC) 3G (HSPA)

Q2 Q3

MBB Coverage

Network Check Point: Backbone Evolution

21

2016 MASSIVE LD

BACKBONE

65,000 KM of FIBER

2013 FIBER TO THE

AMAZON

46,000 KM of FIBER

By YE13

2011 ATIMUS ACQUISITION

RJ & SP

20,500 KM of FIBER

2009 INTELIG

ACQUISITION

+ 15,000 KM of FIBER

98-08 PURE MOBILE

INFRASTRUCTURE

0 KM of FIBER

Fiber

Timeline

HLR

Resiliency

Macapá

Tucuruí Manaus

Jurupari Fortaleza

Maceió

Salvador

Vitória

Rio de Janeiro São Paulo

Florianópolis

Porto Alegre Santa Maria

Curitiba Umuarama

Campo Grande

Cuiabá Brasília

Rib. Preto

Porto Velho

Boa Vista

Belém

Goiânia Rondonópolis

Belo Horizonte

Existing network

Network in construction

LT Amazonas network

~R$200 million

27 cities

1,757 km

Capacity:

75 x 100 Gbps

Project Details:

Amazon Fiber

Backbone

Increasing

number of HLR

Centrals.

From 3 to 8.

11.607

12.120

Jun/12 Jun/13

Network Commitments

22

Network Elements Expansion…

(units. Source: Company)

…Driving Quality Improvements

(% of success; % of call/data connection drop; Source: Anatel)

181

215

Jun/12 Jun/13

250

464

Jun/12 Jun/13

BTS TRX

(Voice Capacity; 000)

Channel Elements

(Data Capacity; 000)

95,7%

97,1%

Aug/12 Apr/13

Voice Network Access Rate Voice Network Drop Rate Data Network Access Rate Data Network Disconnection Rate

+4% +19% +86%

Target agreed w/ Anatel

1,3% 1,1%

Aug/12 Apr/13

95,9% 96,0%

Aug/12 Apr/13

1,5% 1,7%

Aug/12 Apr/13

95%

2%

98%

5%

Capex Analysis

23

Organic Capex (ex-4G licenses)

(Capex/Sales; Mix of Investments; R$ bln)

9,5 8,3

7,2 5,5

0.4

TIM Claro Vivo Oi

Benchmark: Anatel Plan for 2012-2014

(R$ Bln)

Owned Network Deployment….

(% of total transport network)

9.9 2012 Extra

Capex over

Anatel Plan +20% +39%

2012-2014 Capex

… Driving Network Opex Savings

(% YoY)

+81%

14,0%

5.0% 0,0%

Total Traffic Customer Base Leased LinesCosts

Q3 2013

52% 48%

Owned Rented

80%

20%

2009 2012

0.5 0.3 0.2

2.3 2.7 3.1

2010 2011 2012 2013e

19,6% 18,0% 18,0%

Infra

Invest.

As % of Net Revs.

Other

Invest.

2.8 3.0

3.4 3.6

Voice

Postpaid

+23% YoY

Live TIM

Live TIM: Maintaining the High Speed Mode

257

522

609

804 881

3Q12 4Q12 1Q13 2Q13 3Q13

Network Evolution

(000 Addressable Households ; Source: TIM)

Net Adds

(000 Clients; Source: TIM)

1Q13 2Q13

Customer Base

(000 Clients; Source: Anatel)

1.6

9.7

16.3

26.4

42.6

4Q12 1Q13 2Q13

Market Share SP+RJ (August)

(UBB >34MB ; Source: Anatel)

25

38 neighborhoods in SP

34 neighborhoods in Rio

3Q13 3Q12 3Q13 3Q12 4Q12

Accelerating sales and

improving ARPU;

Taking the lead as #1

challenger in Rio and São Paulo;

Reference as UBB service

provider ( >50% net share).

LIVE TIM

48.5%

OI 7.8%

NET 8.9%

VIVO 22.0%

GVT 7.1%

OTHER5.6%

Clients highly satisfied

13.3x

1.2

8.1 6.6

10.1

16.2

8,3

9,0

9,1

8,7

7,7

6,9

7,2

8,0

7,5

6,6

7,3

7,5

8,0

7,9

6,9

General Satisfaction

Bill

Conection Quality

Phone Attending

Offer

Clients highly satisfied

Source: TNS Market Research

6.0 7.0 8.0 9.0 10.0

P1 P2 TIM

Business Outlook

Where We Are: TIM 2013 Year-to-Date Results

27

Operational

Total Revenues

− Service

− VAS*

− Handset

EBITDA

CAPEX

9M13 YoY

14,738 7.3%

12,359 2.1%

2,379 45.2%

3,708 3.4%

R$ Million

9M13 YoY

Postpaid (mln users)

MOU (min)

ARPU

11.9 16.4%

147 12.7%

R$ 18.4 -2.0%

Financial

2,769 +16.8%

3,899 23.7%

• Consistent financial and operational

results even amidst a different macro

scenario

• Continuous growth/acceleration on

postpaid, improving customer base

mix, ARPU evolution.

• Maintaining data services at double

digit growth, underscored by

smartphone sales and innovative

offers.

• Solid improvement on Network and

Quality indicators.

• Executing Fiber-to-the-Site (FTTS)

project and 3G/4G roll-out,

guaranteeing mobile broadband

acceleration.

• Strong efficiency: Industry benchmark

for SAC and bad debt.

• Strong savings on leased lines costs,

even with traffic double digit growth.

Reported figures for TIM Part.

*Gross Mobile Revenues

Strategy: Infrastructure Evolution

28

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.

Backhauling

Evolution

Fiber base

Infrastructure

INTELIG 15,000KM

2009 INTELIG

ACQUISITION

New backbone routes- Increasing resilience.

Increased Coverage and Access Capacity

# new elements

82% urban

population

2013 2014 2015 2016

95% urban

population

#NodeB / eNodeB

(3G + 4G)

# BTS

(2G)

2012 2013e 2014e 2015e 2016e

Small Cell Approach

# new elements

New Sites.

Including

Small Cell.

POP MW

POP MW POP MW

POP MW

BSC-RNC Site

POP MW

Capex Evolution Towards Data

% of total Capex

2013 2014 2015 2016

LTE* 3G 2G

*Includes 2.5GHz RAN Sharing.

Offer Evolution

43%

52%

>75%

2012 Jul 13 2016e

Smart/Web phone Penetration

(% over total base of lines)

136 150

>170

2012 3Q13 2016e

Voice MOU

(Minutes)

2012 2013e 2016e

Data Users

(% of Data Users in CB; million users)

VAS Revenue Growth

(% of Mobile Services Gross Revenues; R$ Million)

21% 23%

>40%

VAS

Gross

Revs.

VAS/Revs.

+XX% 21.3

24.5

2012 3Q13 2016e

29% 34% >50%

+15% XX%

+XX%

Innovative

Offers Driving

Growth and

Differentiation

29

2012 2013e 2014e 2015e 2016e

LIVE TIM 48.5%

OI 7.8%

NET 8.9%

VIVO 22.0%

GVT 7.1% OTHER5.6%

INT

EL

IG

BU

SIN

ES

S S

TA

BIL

IZA

TIO

N

AN

D R

EC

OV

ER

Y

Fixed Business Evolution

• Focus on value, selecting high margin

customers.

• Selective approach focused on high potential

verticals: Finance, ISP (data), Call Center

(voice).

• Network ready to retake sales.

• Increasing addressable market with mobile

synergy approach.

• Optimize investment leveraging on multi

service networks.

• Leading the market share for speed above

34Mbps (ultra BB offers).

• Leveraging fiber assets in SP and RJ with

reduced investment and efficient approach.

• Good potential at SME segment.

• Strong support to mobile business w/ small cell

backhauling.

TIM

FIB

ER

S

usta

inab

le G

row

th M

od

e

EBITDA: Inflection Point

Top Line: Recovery Path

2012 2013e 2014e 2015e 2016e

30

522 881

2012 3Q13 2016

Addressable Households ´000

UBB Market Share RJ/SP (Aug13) >34 Mbps download speed

TIM Part: 2014-2016 Guidance

31

Total Net Revenues

EBITDA

CAPEX

18,8

2012 2013e 2014e 2015e 2016e

5

2012 2013e 2014e 2015e 2016e

R$ billion

R$ billion

0,5

3,2

2012 2013e 2014e 2015e 2016e

R$ billion

Infrastructure

Others/Licenses

3.8

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).

Appendix

Total Customer Base

(% Market Share)

Market Share Evolution

33

29,7% 28,6%

26,8% 27,2%

24,5% 25,1%

18,7% 18,6%

P3

P4

P1

TIM

2012 Mobile Net Revenue Share

(% 2012Total Net Revenue)

Total Voice Postpaid Customer Base

(% Market Share)

38,4% 39,8%

22,8%

24,1% 22,0%

20,0%

16,1% 16,0%

P3

P4

P1

TIM

Total Prepaid Customer Base

(% Market Share)

28,0%

25,8% 28,1%

28,8%

24,1% 25,3%

19,5% 19,7%

P3

P4

P1

TIM

Size: 268,270 thousand

Penetration rate: 135.3%

20,2%

29,5% 35,3%

15,0% P3

P4

P1 TIM

Internet Users Penetration: large room for growth...

(% population who has used internet within the last 3 months)

Mobile Internet and Its Great Business Opportunity

FMS on Data

(% over households with internet connection)

34

89 86 81 80 74

1 3 10

17 21

2008 2009 2010 2011 2012

Mobile Devices are also increasing its presence…

(% Presence over households)

Source: CETIC jun’13; Data Market

Fixed*

Mobile

*Includes dial-up connection

10 14

23

41

50

2 4

2008 2009 2010 2011 2012

34 39 41

46 49

2008 2009 2010 2011 2012

A: 94%

B: 80%

C: 47%

DE: 14%

68 mln

people

never used

internet

…and usage is 4 years behind

(% internet users within the last 3 months)

53 58 60

67 69

35 30 30

24 23

10 9 9 7 7

2008 2009 2010 2011 2012

Everyday/Almost Everyday

At least once a week

At least once a month

Euro Area data in

2008:

Everyday: 70%

Once a Week: 20%

Once a Month: 7%

Social Class Split

Notebooks

Tablets

Market Data Revenues Growth 2016 vs. 2012:

>13 bln Reais on Mobile (+100%)

>7 bln Reais on Fixed (+35%)

Source: CETIC´13

Still Increasing Internet Penetration and Data Market

60% 36.8 mln

40% 24.5 mln

44% 16.2 mln

24% 8.8 mln

32% 11.8 mln

(40%)

(60%)

61.3 Mln

Possess

Internet

connection

Does NOT

Possess

Internet

connection

Other

Lack of

coverage

Too

Expensive

53% of active connection

base has currently a

speed below 2Mbps

71%

65%

59%

48%

39%

24%

18%

12%

5%

2%

1%

1%

R$ 10

R$ 20

R$ 30

R$ 40

R$ 50

R$ 70

R$ 80

R$ 100

R$ 150

R$ 200

R$ 250

> R$ 250

Willingness to pay (% of Households)

Total Households Households which does

NOT possess

CA

BL

E

FT

TH

AD

SL

VD

SL

M

BB

35

Understanding Internet Usage Trends

Going deeper into wireless penetration in Brazil

(%)

36

79 91

105

124 133

56 63 67

76 80

2008 2009 2010 2011 2012

Our current portfolio reflects consumer’s behavior

(Activities over mobile phone; % users who have used mobile within the last 3 months)

Source: CETIC jun’13; Data Market; Anatel

22

31

47

5

18

24

49

57 64

2010 2011 2012

Wireless

Penetration

Real

Penetration

# SIM Cards

Social

Class 0 1 2 3+

A 3% 67% 24% 6%

B 7% 63% 24% 5%

C 17% 62% 17% 3%

DE 41% 47% 10% 1%

Total 20% 59% 17% 3%

Send SMS

Listen Music

Internet

Historical Data: Financials (R$ Thousand)

37

Historical Data: Financials (US$ Thousand)

38

Historical Data: Operational & Financial Ratios

39

ROA: NOPLAT/Avg. Total Assets.

Calculation considers organic Net Income and EBITDA

2013e: Consensus and dividend yield from approved 2012 dividends of R$743 mln.

2013e Multiples related to 2014YE estimates..

3%

Tax Relief - 1º Step: M2M Fistel to drop and Smartphones tax exemption (Law 12,715/2012)

Total

~34%

Fust/

FUNTEL

PIS/

PASEP

1.5%

0.65%

ICMS Cofins

~28%

Tax reduction Reduction in the

price to

consumer

Increase of

Penetration

Social

Impacts

Economic

Impact

Possibility of

higher

investment in

network

Better

Quality

Tax Composition

40

In 2012, TIM paid R$9.1

bln in taxes, fees and

contributions (~48% of

total net revenues).

• R$1 bln in Fistel.

• R$8.1 bln in taxes,

contributions and

others fees.

% of Gross

Revenues

Taxation Over Telecom in Brazil

Shareholders Structure and Stock performance

Stock Performance (base 100)*

0

20

40

60

80

100

120

140

160

180

TIMP3 Ibovespa TSU

41 *Last price as of 11/01/2013

TIM Celular S.A. Intelig

100%

TIM Brasil Serv. e Part. S.A. Minorities

Telecom Italia International N.V.

Telecom Italia

100%

TIM Participações S.A.

ON: 33% (805,662,701) ON: 67% (1,611,969,946)

100% 100%

Investor Relations Team

Avenida das Américas, 3434 - Bloco 01

6° andar – Barra da Tijuca

22640-102 Rio de Janeiro, RJ

E-mail: [email protected]

Rogério Tostes

E-mail: [email protected]

Phone: +55 21 4109-3742

Vicente Ferreira

E-mail: [email protected]

Phone: +55 21 4109-3360

Leonardo Wanderley

E-mail: [email protected]

Phone: +55 21 4109-4017

Gustavo Valente

E-mail: [email protected]

Phone: +55 21 4109-3446

Luiza Chaves

E-mail: [email protected]

Phone: +55 21 4109-3751

Visit our Website

www.tim.com.br/ir

Safe Harbor and IR Contacts

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.

42