Tim meeting with investors - nov 2017

1. 1
Meeting with Investors
Investor Relations
TIM Brasil
Company’s Presentation
November, 2017

2. 2
Meeting with Investors
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 ………………………………………………………….……………….... 3
Market Overview and TIM Positioning ……………………..….…… 7
3Q17 Results ……………………………………………………………….……… 13
Regulatory Update ……………………………………………………………. 32
Strategic Plan 2017-19 ….…………………………………………………… 35
Appendix .…………………………………………………………………………… 41
23Network ………………..………………………………………………………..…..
Residential Solutions …….……………………………..……………………. 27
19Efficiency Plan & Digitalization ..………………….……………….……

3. 3
Meeting with Investors
Investor Relations
About Us

4. 4
Meeting with Investors
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
 22nd largest Private Company in Brazil*
 Approximately R$25 billion of Market Capitalization
Innovative Net Revenues
(R$ bln; VAS Revenues excluding SMS)
Data Penetration
(data users over total base)
EBITDA Margin
(%)
CAGR
+32%
*Source: Exame Magazine - 2016
+700 Bps
TIM: A Solid Path in a Changing Industry
Leader in 4G Coverage
 ~1,465 cities covered with 4G
 >75% of urban population in 4G
 Total of 3,460 cities covered with
2G/3G/4G
High focus on infrastructure
development
 >21 thousand Sites
 ~5,250 sites connected with fiber
 ~76,100 km of optical fiber network
2nd in Revenue Share
 61.3 million customers
 25.3% Market Share
 ~R$4.5 billion invested in FY2016
(ex-licenses)
Growth
via M&A
1.7x

5. 5
Meeting with Investors
Investor Relations
Joined UN Global Compact
in 2008
Member of ISE (Sustainability
Index) for 10 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. 6
Meeting with Investors
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
(1 independent)
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 20%)
 Strict disclosure policy
Corporate Governance

7. 7
Meeting with Investors
Investor Relations
Market Overview and TIM Positioning

8. 8
Meeting with Investors
Investor Relations
¹Datas from May-17;
1- Mobile revenue considers only the 5 major players. Oi numbers are adjusted to include corporate mobile and on 4Q16 the company has reviewed its numbers from 2014 to
2016. With that, the historical revenues share have changed.
Source: Anatel and players’ financial statements.
Brazilian Telcos X-Ray
Mobile Revenues Share
Nextel Oi Claro TIM Vivo
The industry mobile revenue (service +
handsets) represented 52,1% of the total
industry revenues in 3Q17
Mobile Fixed Fixed BB Pay-TV¹ Grupo
Customers 3Q17 (000´s) 59,390 713 376 n.a. 60,478
Market share 3Q17 24.64% 1.73% 1.39% n.a. -
Net Adds 12M (000´s) -4,028 188 70 n.a. -3,770
Net Revs 3Q17 (R$ Mln) 3,884 4,083
ARPU 3Q17 (R$) 20.5 n.a. n.a. n.a. -
200
Mobile Fixed Fixed BB Pay-TV¹ Grupo
Customers 3Q17 (000´s) 60,398 10,838 8,737 9,511 89,483
Market share 3Q17 25.05% 26.31% 32.33% 51.02% -
Net Adds 12M (000´s) 227 -285 348 -9,848 -9,558
Net Revs 3Q17 (R$ Mln) 2,913 8,844
ARPU 3Q17 (R$) 15.0 n.a. n.a. n.a. -
5,931
Mobile Fixed Fixed BB Pay-TV¹ Grupo
Customers 3Q17 (000´s) 41,911 13,852 6,235 1,390 63,389
Market share 3Q17 17.39% 33.62% 23.07% 7.46% -
Net Adds 12M (000´s) -227 -477 -22 145 -581
Net Revs 3Q17 (R$ Mln) 2,085 5,918
ARPU 3Q17 (R$) 16.1 n.a. n.a. n.a. -
3,833
Mobile Fixed Fixed BB Pay-TV¹ Grupo
Customers 3Q17 (000´s) 74,562 14,257 7,610 1,714 98,143
Market share 3Q17 30.93% 34.61% 28.16% 9.09% -
Net Adds 12M (000´s) 784 -155 133 -48 713
Net Revs 3Q17 (R$ Mln) 6,610 10,970
ARPU 3Q17 (R$) 28.4 39.3 52.2 99.2 -
4,276
39,1% 40,2% 40,3% 40,7% 40,5% 41,5% 41,1%
22,7% 22,7% 23,0% 23,5% 23,3% 23,5% 23,9%
18,2% 17,6% 17,5% 17,1% 17,9% 17,5% 17,8%
14,2% 13,8% 13,7% 13,5% 13,3% 12,8% 13,1%
5,7% 5,7% 5,5% 5,2% 5,0% 4,7% 4,1%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

9. 9
Meeting with Investors
Investor Relations
SP Cap
33.7%
29.0%
20.9%
12.4%
SP Int
RJ/ES
MG
37.2%
23.4%
22.1%
12.3%
BA/SE
31.9%
24.7%
24.0%
19.5%
NE
32.9%
31.4%
26.6%
9.1%
NO
39.1%
25.7%
20.2%
15.1%
CO
37.4%
34.1%
15.6%
12.6%
PR/SC
53.6%
19.8%
17.2%
9.1%
RS
46.5%
29.6%
14.5%
9.4%
BRAZIL
30.9%
25.1%
24.6%
17.4%
35.6%
32.1%
13.9%
13.7%
37.4%
32.2%
19.3%
8.0%
Market share analysis
for the whole country
can be misleading
Mobile Market Share Analysis: Significant Differences by Geographic Area
TIM: 2nd place
TIM: leader
TIM: 3rd place
TIM: 4th place
Population in million people
Source: Anatel. September of 2017

10. 10
Meeting with Investors
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. 11
Meeting with Investors
Investor Relations
Strategy Path: Pillars of TIM Turnaround
Mobile Offer based on Customer Segmentation
(Advanced Analytics and Big Data) to maximize
ARPU
Attack Residential UBB market through
FTTH/WTTX
Push on 3/4P Convergent Offer in selected
regions taking benefit of our Zero Legacy approach
3
Infrastructure
4
Offer
3
Efficiency
5
Customer Experience
Accelerate 4G expansion in 700MHz to
reaffirm UBB Leadership in coverage and
quality
Push Fiber rollout to sustain E2E CEx in
Data and support Residential UBB
coverage expansion
Use Big Data and CEx driven
approach to drive Network Capex
4
Culture 1
Digitalization 2
Continue to focus on recurring Efficiency in
Industrial Cash Cost (zero base approach,
strategic sourcing, make vs buy)
Disruptive Efficiencies from Digital
Transformation
5
Accelerate Digital Capabilities
deployment in both commercial and
administrative IT systems
Increase Digitalization of Customer”s
Interactions along the entire lifecycle to
improve CEx and allow disruptive
efficiencies
2
Accountability and “Sense of
Ownership” as part of a deep
cultural transformation
1
Redesign the Customer Experience of our clients to become the Best TLC Provider leveraging our
Leadership position as an Ultra-Broadband player and our Smart Offer proposition
Shift internal Culture from “Excusability” to Accountability, redesign Platforms
and Processes from analogue to Digital to allow a full Digital Transformation.

12. 12
Meeting with Investors
Investor Relations
TIM Brasil Mobile Go-to-Market: Distinct and targeted approach
Prepaid
Controle
Postpaid
“More for More”
strategy, delivering the
best value proposition
(voice + data + content)
Offer Evolution:
+ data
+ unlimited calls
Combo launch
(service loyalty + device)
Offer Evolution:
+ VAS + Data
Price up
Q1 Q2 Q3 Q4
...
Main Speech:
High value top-up
incentive
Offer Evolution:
Turbo 7 – TIM Pré
Main Speech:
TIM Pre 1GB
Recurring
Main Speech:
TIM Pre 1GB with
1GB bonus in recurring
Recurring portfolio
evolution focus
Repositioning with TIM
Black launch:
More data, unlimited
minutes
Back to the game in
handsets
Exclusive contents
New handset discount
offer (lock in)
Offer evolution (more
data, +content)
New Express offers
Launch of TIM Black
with unlimited calls
New Family offer
New discount offer (lock in)
New data bonus to push
acquisition
New VAS partnerships
Video as new
premium content
Bundle Video Offer

13. 13
Meeting with Investors
Investor Relations
3Q17 Results

14. 14
Meeting with Investors
Investor Relations
3Q17 Highlights: Solid Trends in All Fronts
Accelerating Growth State of the Art Profitability
Customer Experience Supported
by Leadership in 4G
Net MSR
+5.8%
YoY
 Mobile Net Service Revenues accelerating
from +5% YoY in 2Q
445 509
935
1Q17 2Q17 3Q17
Postpaid Net
Adds +1.9 mln
lines in 2017
 Fixed Ultra BB (TIM Live) Net Revenues
jumping from +32% YoY in 2Q
Fixed Ultra
BB Net Adds
+70k subs in
2017
17
26 27
1Q17 2Q17 3Q17
Highest 3Q Normalized EBITDA in
TIM’s history (R$ mln)
Cities covered with 4G Pure Postpaid
Customer Satisfaction Survey¹
(1) Source: Customer Satisfaction Index (CSI) model by University of Michigan, survey conducted by CFI Group as of Jun/17
2,401
P4
P3
P1
TIM
EBITDA
Margin
37.4%
in 3Q
UBB Revs
+54%
YoY
1,527
3Q13 3Q14 3Q15 3Q16 3Q17
Total Gross Service Revenues +2.0% YoY
Total Net Service Revenues +5.9% YoY
%YoY 0.7% 6.4% 0.5%-2.7% 17.2%
Dec-16 Jul-17
3rd
1st
2x
vs. ‘16
2x
vs. ‘16

15. 15
Meeting with Investors
Investor Relations
3Q16 3Q17 3Q16 3Q17
3Q16 3Q17
Improving Value Through Customer Base Transformation
Postpaid (Gross + Migration)
(lines; % YoY)
Client Generated ARPU
(% YoY)
Further Evolving in the Go 2 Market
Pure Postpaid Plans: focus on
loyalty and churn reduction
Prepaid
Postpaid
+4%
+8%
Prepaid Recurring Offers
(bundles) over Gross Adds
(% YoY)
Control Plan better value
for money at R$55 offer
Prepaid New Offer, encouraging
the recurrence :
+9 p.p.
CB Reshaping Towards Recurrence
(% of total base)
 Promotions on services
and/or handset with 12
months lock-in contracts
 ~40% of Pure Postpaid
gross comes from
customers with lock-in
contracts
1GB+ 1GB Bonus
Unlimited calls TIM-TIM
+ 100 minutes off-net
Unlimited Whatsapp
messaging
+39 p.p.
 Up-sell between Control
Plans: ~90k users to Control
R$55 in Sep/17
~70% <50%
~10%
~25%
~20% >28%
3Q16 3Q17
Postpaid
Non Recurring
Prepaid
Client Generated
Revenue Mix
>70%
<30%
Recurring Prepaid
1GB+500MB 1GB+1GB1GB
1st renewal 2nd renewal 3rd renewal
1GB+250MB
Mix of gross + migration
on R$55 plan
3Q16 3Q17
+64%
Jan Sep

16. 16
Meeting with Investors
Investor Relations
+8.9% -17.9% -14.0% +7.0% -15.3%
Consolidating Revenue Improvements with More Focus on Bundle
Offers
Total Mobile ARPU
(R$; % YoY)
Total Net Revenues Breakdown
(R$ bln; %YoY)
+4.7%
18.4
20.5
3Q16 3Q17
Revenues Mix from Bundled1 Offer
(% of TIM Client Generated Revenues )
Client Generated2 Revenue Growth
(% YoY)
-1.4%
0.0%
4.8%
7.2%
8.0%
3Q16 4Q16 1Q17 2Q17 3Q17
Client Generated²
+11%
Bundle
7th quarter of
ARPU uplift
3.9
4.1
+8%
(1) Bundle Revenues = Revenues from postpaid packages (off-bundle services not included) and recurring prepaid offers
(2) Client Generated Revenues = MSR excluding interconnection and other revenues
Pure
Postpaid
Control
Postpaid
Prepaid
Recurring
Prepaid
Non-Recurring
Improving Revenue Predictability and
monetizing Customer Base
Upgrade
Loyalty
Upsell
Upsell
Loyalty
Upgrade
Upsell
Upgrade
Upsell
0%
25%
50%
75%
100%
3Q16 4Q16 1Q17 2Q17 3Q17
Bundle
No-Bundle >60%

17. 17
Meeting with Investors
Investor Relations
469 444 470
967 952 960
1,050
924 926
202
232 200
1Q17 2Q17 3Q17
Opex Dynamics: Efficiency Continues to be a Driver
COGS
Traffic
(Network + ITX)
Marketing
(Selling & Market
+ Bad Debt)
Process
(Personnel + G&A + Other)
Normalized Opex Breakdown Analysis
(R$ mln; %YoY)
2,688
2,552 2,557
-
-4.3%
+7.7%
-13.7% COGS
• Reduction in volume due to lower sales to prepaid customers, postpaid
users represents ~80% of total sales (+ ~35% YoY).
• Lower acquisition price from vendors.
• ITX: lower cost after MTR (VU-M) cut partially offset by off-net traffic
growth.
• Rental & Power: growth driven by network expansion and inflation.
• Network: leased line price cut after Res. 639 (last quarter of
“comparability” benefit) and efficiency gains thanks to “zero leased lines”
project.
• Higher postpaid Customer Base and sales generating increase in
customer management opex (customer care, billing and collection, bad-
debt) partially offset by digital efficiencies.
• Positive impact of Fistel (-11.8% YoY in 3Q17) and recharge fees in
prepaid.
• Commissioning costs growth, +10.0% YoY, due to postpaid gross adds.
Traffic
Market
Process
• Personnel (+4.1% YoY) and G&A (+2.8% YoY) grew low single digit, close
to inflation, thanks to impact efficiency program gains
• Other Operating (income) expenses, +26.4% YoY, trend impacted by
higher provisions for labor lawsuits of mainly third parties from previous
years.
-1.5% Δ YoY
Efficiency Plan Recap
(R$ bln)
Efficiency Plan Completion
(%)
R$1.1 blnR$0
2017 2018 2019
~90%1.1
1.7
-1.2
0.5
0.6
+
+
-
+
+
-
-
+
-
-

18. 18
Meeting with Investors
Investor Relations
Solid EBITDA Growth Boosting Bottom Line and Cash Generated
Normalized EBITDA¹ Growth
(%YoY)
¹ Normalized for tower sales and other items
² License 700MHZ
Margin Expansion
(% Normalized EBITDA Margin)
0.5%
5.8%
8.7%
15.5%
17.2%
3Q16 4Q16 1Q17 2Q17 3Q17
Reported Net Income
(R$ mln)
184
279
3Q16 3Q17
EPS 0.08 0.12
Operating Free Cash Flow Ex-License²
(R$ mln)
511
320
213
26
-334
737
OFCF
9M16
Δ EBTIDA
(yoy)
Δ CAPEX
(yoy)
Δ WC
(yoy)
Δ Non-Recurring
Items
(yoy)
OFCF
9M17
33.4%
37.4%
3Q16 3Q17
+4 p.p.
+ 1.1bln
9M17 Normalized EBITDA up 13.9%
9M17 Normalized EBITDA Margin at 34.9%
16 quarters of YoY EBITDA margin
expansion: from mid 20’s to high 30’s
Service EBITDA Margin at 39.7% in 3Q17
and 37.1% 9M17
9M17 EBITDA - Capex of R$1.7 bln, (+2x
YoY), 14.1% on Net Revenues, (+7p.p. YoY)
~1.5x

19. 19
Meeting with Investors
Investor Relations
Efficiency Plan & Digitalization

20. 20
Meeting with Investors
Investor Relations
2017 2018 2019
~90%
>0.1
~0.25
>0.1
~0.5
Efficiency Plan: Strong Execution
Execution until 3Q17
Normalized Opex Evolution
(R$Bln)
11.8
10.4
11.8
2015a 2016a 2017e 2018e 2019e
Rationalization of Discretionary and
Support Costs’
Optimization and Process
reengineering
Zero Leased Lines Project
Optimization of IT and Network Costs
Sales Channels Redesign
2017
Updated
Estimate
Detailing 9M17 Efficiency
(R$ bln)
Efficiency Plan
(R$ bln)
1.7 1.2
0.5
0.6
1.1
2017 Monitoring
(R$ bln)
5,2
>0.2 >0.2 ~0.2 ~0.5
5.3
Main Actions

21. 21
Meeting with Investors
Investor Relations
9M16 9M17 Sep/16 Sep/17 Sep/16 Sep/17 Sep/16 Sep/17
Digital Transformation Across the Company to Improve CEX and
Process Efficiency
IT Initiatives: Infrastructure & Digital Capabilities Enablers
helping to reduce costs and accelerate revenues
Digital Evolution of Customer Journey
Sales in Digital Channels
(# of digital activations)
+3x
Control
Recurring
Prepaid
Improving Trends for
Customer
Satisfaction¹
#1 General Satisfaction
#1 in Pure Postpaid
#1 in Prepaid
Digital Caring
Process Efficiency
150 Projects
Network
Planning SQM
Big Data
API
TAX
Management
+2.6x +23p.p
AI
(1) Source: Customer Satisfaction Index (CSI) model by University of Michigan, survey conducted by CFI Group as of Jun/17
Unique Users of
App or Website
Digital Interactions/
Total interactions
SALES & ACTIVATION
CUSTOMER MGMT &
CARING
BILLING PAYMENT
E-Billing
(# of online invoices)
E-Payment
(credit card, bank account and internet)
+15%
Sep/16 Sep/17
+13%
Billing
Platforms
Procurement
to Payment
9M16 9M17
+80%

22. 22
Meeting with Investors
Investor Relations
Addressing Other Types of Efficiencies
Telecom Italia
Finance
TIM Brasil
TIM Part
TIM S.A.
(new denomination of Intelig)
Telecom Italia
Finance
TIM Brasil
TIM Part
TIM Celular Intelig
Abroad
Brazil
Minorities Minorities
Generating operational and financial synergies through
restructuring process
From: To:
INTEREST OVER EQUITY
R$190 mln via IOE
o Anticipation of 2017 results distribution
o Fiscal efficiency
o Minority saving perception of +9.75%
(34%-15%-9.25% = 9.75%)
o Process optimization, system integration, simplification of billing, commissioning,
BI and control systems
o Unification of fixed and mobile services facilitating bids and convergent services
o Elimination of intercompany transactions inefficiencies

23. 23
Meeting with Investors
Investor Relations
Network

24. 24
Meeting with Investors
Investor Relations
746
2,401
3Q16 4Q16 1Q17 2Q17 3Q17
Further Advancing on Infrastructure
4G Coverage Evolution
(# of cities)
P1
P3
P4
301
Cities with
4G 700MHz
177
Cities with
VoLTE
Leadership in
4G coverage
86% of
urban pop
TIM1st in Latam and
unique operator
in Brazil
Network Data Usage
(% of data traffic by technology)
17,7859,858 +80%
4G
Sites
30%
51%
70%
49%
3Q16 4Q16 1Q17 2Q17 3Q17
4G 2G + 3G
65%
79%
3Q16 4Q16 1Q17 2Q17 3Q17
P1
P3
P4
TIM
Best 4G Coverage leveraged by 1.8GHz refarming and Leadership in LTE 700MHz
Brazil
(Ookla Speedtest;% of tests in 4G Network)
77%
88%
3Q16 4Q16 1Q17 2Q17 3Q17
79%
90%
3Q16 4Q16 1Q17 2Q17 3Q17
P1
P3
P4
TIM
P1
P3
P4
TIM
São Paulo
(Ookla Speedtest;% of tests in 4G Network)
Rio de Janeiro
(Ookla Speedtest;% of tests in 4G Network)
75.5%* of traffic
generated by 4G
Devices
*
* 3Q17 until Aug/17
EoY > 90%
EoY >1.000
cities
EoY >1.000
cities

25. 25
Meeting with Investors
Investor Relations
Opportunity 2018
2.600 MHz 1.800 MHz 700 MHz
About 50% indoor
coverage
About 60% indoor
coverage
About 99% indoor
coverage
2x indoor Coverage
1,6x Data Traffic in 24 days
Benefits 4G + LTE 700Mhz
Network Effect
63%
i.e. Benefits of the 700Mhz deployments in Brasilia
Vol. Traf. Total (MB)
Vol. Traf. 700 (MB)
Vol. Traf. 1800 (MB)
Vol. Traf. 2600 (MB)
3G 4G
Churn
1,6x
3G 4G
Usage (GB)
2,5x
Throughput (Mbps)
3G 4G
3,2x
Customer Effect
59% Urban pop.
69% GDP
2018
2017
700 MHz +
Differential on Coverage
and Quality with

26. 26
Meeting with Investors
Investor Relations
Use spectrum opportunities to maximize TIM assets
2015 2016 2017 2018 2019 2020
LTE
2600MHz
2100MHz*
1800MHz
900MHz
850MHz
700MHz ND ND
LTE
10 Mhz
LTE
10 Mhz
LTE
10 Mhz
LTE
10 Mhz
UMTS
10 MHz
UMTS
10 MHz
UMTS
10 MHz
UMTS
10 MHz
GSM
2,5 MHz
GSM
2,5 MHz
GSM
2,5 MHz
GSM
2,5 MHz
GSM
2,5 MHz
GSM
2,5 MHz
GSM
20 MHz
GSM
15 MHz
GSM
10 MHz
UMTS
10 MHz
UMTS
10 MHz
UMTS
10 MHz
LTE
10 MHz
LTE
10 MHz
LTE
10 MHz
LTE
10 MHz
LTE
10 MHz
LTE
10 MHz
LTE
10 MHz
LTE
10 MHz
10 MHz 15 MHz 30 MHz 35 MHz 50 MHz 50 MHz
UMTS 5 MHz
LTE 5 MHz
UMTS 5 MHz
LTE 5 MHz
LTE
5 MHz
LTE
10 MHz
GSM
10 MHz
LTE
10 MHz
LTE
15 MHz
GSM
5 MHz
LTE
15 MHz
GSM
5 MHz
UMTS 5 MHz
LTE 5 MHz
Spectrum Refarming Plan (average Brazil)
* 10MHz Refarming for LTE will take place in areas where TIM owns the 850MHz band, keeping the UMTS in
this frequency. In the other areas it will be refarmed 5MHz for the LTE, keeping the other 5MHz to the
UMTS.
Carrier
Aggregation
2017 2018 2019 2020
25% 75% 100% 100%
20% 70% 100%
10% 75%
70% 100% 100% 100%
40% 100% 100% 100%
5% 10% 20%
10% 20%
2x CC
3x CC
4x CC
Optimize Spectrum Performance
LTE Evolution (4,5G)

27. 27
Meeting with Investors
Investor Relations
Residential Solutions

28. 28
Meeting with Investors
Investor Relations
Major Brazilian cities accounts for 97% of national UBB
Broadband penetration by region¹
• Low penetration (<40%) in 19 of 27 states and only São Paulo
and Federal District with penetration above 60%...
• ...demands an assertive approach to obtain good results
> 60%
20% - 40%0 – 20%
40% – 60%
% BB penetration in HHs, Aug/17
UBB: Only 12 cities³ (all from SP)
with penetration UBB above 20%
Broadband
penetretion
42%
34%
0%
32%BB (< 34 Mb) 37%36%
1% 2% 3%
36%
6%
Aug-16
38%
42%39%
Aug-17
32%
UBB
Aug-15
35%
Aug-14Aug-13
Penetration of fixed broadband by city profile²
53% 54%
77%
97%
96%
47% 46%
23%
3
3%
BB
(Mln)
27
HH
(Mln)
UBB
(Mln)
5.570 67
População
(Mln)
Cidades
206
4%
• Potential to grow in top 4% of Brazilian cities which has 77% of broadband
connections and 97% of national UBB market due to its low UBB penetration (8%)...
• …and also potential in other 96% of cities (~50% population) which also has low
penetration of 20% on average
Group B: other cities (5.320)
Group A: cities most populated (250)
Fixed broadband penetration
(excludes SMP and includes SME BB)
42%
21%
60%
State of Group A cities:
• SP: 64
• RJ: 26
• MG: 23
• Other States: 137
6%
0%
10%
Source: ¹ Teleco ² Teleco, IBGE, Cetic, Anatel Note: ³ Vinhedo, São Caetano do Sul, Valinhos, Indaiatuba, Santos, São José dos Campos, São
Paulo, Barueri, Santana do Parnaíba, Praia Grande, Americana and Itatiba

29. 29
Meeting with Investors
Investor Relations
3Q16 3Q17
57
29
7
-27
P4
P3
+26%
User Base
(‘000; %YoY)
Net Revenues
(R$ mln; %YoY)
Occupation Rate
(% of ports used)
SAC/ARPU
(months; %YoY)
TIM Live: Growing its Importance Every Quarter with Solid Results
+9p.p.+54% -14%
+16%
ARPU (new clients)
(R$; %YoY)
ARPU (user base)
(R$; % YoY)
+27%
Net Promoter Score
(%; Jul 17; Bridge Research)
Netflix ISP Speed Ranking
(Mbps, Sep 17)
Growing at robust double digit rates Efficient approach guaranteeing profitability
Extracting value with new portfolio:
upselling and pricing Leadership in customer experience
2.14
2.39
2.88
3.00
3.09
OI
Algar
Vivo Fibra
net virtua
Live tim
P6
P4
P3
P1
P1
Leader 33x
in the last
36 months
TIM Live
299
376
3Q16 3Q17 3Q16 3Q17 3Q16 3Q17
3Q16 3Q17 3Q16 3Q17
+36% YoY
Addressable
HH

30. 30
Meeting with Investors
Investor Relations
Customer base
• Soft launch: more than 2k customers
• High attractiveness of the higher speed
offer (average ARPU of ~R$ 105)
Coverage Customer Experience
Customers quotes:
“I recommend the internet to my
neighbors”
“I use my internet to browse, play
online and watch videos”
“I knew the offer through a Facebook
group”
• Usage:
- 80% uses all data package
- ~40% uses to watch videos and movies
online
• Before acquiring WTTX service:
- 72% did not have broadband
- 21% did not have paid TV
• Levered on LTE 700Mhz project using idle
capacity of the constructed network
• Focus on regions with limited offer and
quality regions
• 2017 commercial launch in 16 cities (in 12
states)
WTTX “Fast Guide”
Q2 2017 Q4 2017
Device
Source internal infos
• Welcome call for all new customers
• Customers with high satisfaction index
(76% vs 57% of Broadband market)
• Equipment delivery in 7 days
• 83% of recommendation
Traffic measurement (July 3rd)
00:00 230006:00 12:00 18:00
0 GB
06 GB
12 GB
18 GB
Youtube Cyphered Facebook Netflix Whatsapp Google Others
WTTX started with great results

31. 31
Meeting with Investors
Investor Relations
Residential solutions: opportunities expansion through own networkNetworkefficiencyNewtechnologies
Broadband
Solutions
• Replacement of some boards by VDSL2+ boards
• Higher speeds and ARPU over the alreadyconstructed network
• Focus on high value areas with low sales performance
• Fast time-to-market
• Low investment to increase offer value
• Increase of capacity on alreadysaturated areas
• Focus on alreadysuccessful areas
• Exploitation of already approached buildings
• Synergy with network upgrade strategy (use of
replaced boards)
• Innovative product that delivers a full, accessible
and simple solution ofresidential broadband
• Fixed ultrabroadband evolution: unique solution
for who wants to go where nobody has arrived
• Focus on customers with limited broadband services
mostlyon cities suburbs and smaller cities
• Broadband through 4G - 700Mhz network
• Plug’n’play solution
• Voice and video included in data package
• Focus on high value customers and high
customer experience standards
• Smart strategy coverage with launch in new cities
• Partnership with content providers
• Digital and multichannel caring (website, APP/Chatbot,
service/URA)
WTTx FTTH
FTTC network upgrade FTTC capacity increase

32. 32
Meeting with Investors
Investor Relations
Regulatory Update

33. 33
Meeting with Investors
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

34. 34
Meeting with Investors
Investor Relations
Main Regulatory Topics
4Q17
November DecemberOctober
3Q17
August SeptemberJuly
Public
Consultations
• Numbering
(ANATEL)
• Digital Strategy
(MCTIC)
700 MHz (Switch
Off)
• Salvador/BA and
Fortaleza/CE,
Sobral and
Juazeiro
postponed to
2018
Zero Rating (CADE)
• Not an anti-trust
infraction
(archived)
TAC (TEF)
• Approved with
recommendation
s (TCU)
Restricted
Radiation
• Res. 680/2017
700 MHz
(Available)
• >2.000 cities
GIRED for LTE
700 MHz (Switch
Off)
• Recife/PE
Public Consultation
• Quality
(ANATEL) up to
08/01/18
• RIA Methodology
(Casa Civil)
• Public Policies
Decree (MCTIC)
• CGI Governance
Data limits on
Fixed Broadband to
• Discussion
Postponed
(ANATEL)
700 MHz (Switch
Off)
• Rio de Janeiro,
Belo Horizonte
and São Paulo
Interior
.
Spectrum
Management
• Public
Consultation
expected
PLC 79/2016
• New Telecom
Framework still
under debate
PERT
• Ongoing ANATEL
Telecom
Network Plan
discussion
PGMC/RHORPA
• Revision
Expected
(ANATEL)
700 MHz
(Available)
• >3.000 cities
GIRED for LTE
TAC (Oi)
• Rejection by
ANATEL

35. 35
Meeting with Investors
Investor Relations
Strategic Plan 2017-19

36. 36
Meeting with Investors
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

37. 37
Meeting with Investors
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

38. 38
Meeting with Investors
Investor Relations
Efficiency: Executing on Plan
Main Actions
Optimization and Process
reengineering
Rationalization of Discretionary and Support Costs’
Zero Leased Lines
Project
Sales Channels Redesign
Optimization of IT
and Network Costs
11.7
10.4
~11.7
2015 2016 2017e 2018e 2019e
Normalized Opex Evolution
(R$ bln)
Efficiency Plan Evolution
(R$ bln)
R$ 1.2 bn delivered
R$ 1.1 bln new plan
R$ 2.3 bln Total
+
Detailing Delivered Savings
(R$ bln)
1.2
0.5
0.2
0.5
Process Driven Market Driven Volume Driven Total
(Network &
Interconnection)
(Selling and
Marketing
& Bad Debt)
(Personnel,
G&A & Other)
> New savings will maintain costs flat in 2015-2019
period despite inflation pressures and Company’s
structural growth <
1.7
1.2
0.5
0.6
1.1
"Original" Plan
2016-18
Done until
2016
Remaining
Savings
Additional
2017-19
New Plan
2017-19

39. 39
Meeting with Investors
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

40. 40
Meeting with Investors
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

41. 41
Meeting with Investors
Investor Relations
Appendix

42. 42
Meeting with Investors
Investor RelationsSource: Anatel
3G 4G
Mobile Market Share TIM Postpaid Base Evolution
(% over customer base)
Nextel
Oi
Claro
TIM
Vivo
Market Share
per Technology
Mobile Base Analysis
16,4% 16,4%
19,0%
22,5%
28,2%
3Q13 3Q14 3Q15 3Q16 3Q17
24,1%
24,1% 24,2%24,1%
23,4% 22,7%
32,5%
32,0% 32,3%
17,3%
17,8% 17,9%
3Q16 4Q16 1Q17 2Q17 3Q17
35,5%
33,8%
27,7% 27,1%
19,3%
22,2%
15,5% 15,7%
3Q16 4Q16 1Q17 2Q17 3Q17
29,3%
30,9%
25,2%
24,6%25,3%
25,1%
18,5%
17,4%
3Q16 4Q16 1Q17 2Q17 3Q17

43. 43
Meeting with Investors
Investor Relations
Total Mobile Base Overview
Base (mil) 59.390 74.562 60.398 41.911 2.622 2.179 241.063
Δ MoM -1,6% 0,0% -0,1% -0,3% 1,0% 0,8% -0,5%
Δ YoY -6,1% 1,5% -4,9% -9,6% 4,5% 15,2% -4,0%
Market Share 24,64% 30,93% 25,05% 17,39% 1,09% 0,90%
Δ MoM(p.p.) -0,29 0,14 0,09 0,03 0,02 0,01
Δ YoY(p.p.) -0,6 1,7 -0,2 -1,1 0,1 0,2
Net Adds (mil) -963 -9 -60 -114 26 16 -1.105
Δ MoM 536,4% -116,5% -150,7% -234,8% -2,9% -28,3% -807,3%
Δ YoY 260,6% -135,1% -63,6% -83,5% -9,4% -16,6% 4,9%
Net Share -87,2% -0,8% -5,4% -10,4% 2,3% 1,5%
Δ MoM(p.p.) 9,7 -36,1 -81,1 -64,7 -14,7 -13,2
Δ YoY(p.p.) -61,8 -3,3 10,2 55,7 -0,4 -0,4
Net YTD (mil) -4.028 784 227 -227 34 205 -3.004
Δ YoY 34,8% 246,4% -109,2% -86,6% 1085,1% 61,5% -55,7%
Net Share YTD -134,1% 26,1% 7,6% -7,6% 1,1% 6,8%
Δ YoY(p.p.) -90,0 22,8 43,8 17,4 1,1 5,0
TOTAL
BASE TOTAL
NEXTEL OUTRASTIM VIVO CLARO OISeptember,17
Source: Anatel

44. 44
Meeting with Investors
Investor Relations
Total Postpaid Base Overview
Base (mil) 16.771 35.665 19.340 9.201 2.574 1.170 84.721
Δ MoM 2,2% 0,9% 1,7% 0,1% 0,8% 1,2% 1,2%
Δ YoY 17,8% 9,7% 11,9% 0,6% 2,6% 31,4% 10,6%
Market Share 19,80% 42,10% 22,83% 10,86% 3,04% 1,38%
Δ MoM(p.p.) 0,18 -0,16 0,10 -0,12 -0,01 0,00
Δ YoY(p.p.) 1,2 -0,3 0,3 -1,1 -0,2 0,2
Net Adds (mil) 359 306 322 14 21 14 1.036
Δ MoM -0,4% -0,8% 76,9% 56,6% 4,9% -53,0% 13,9%
Δ YoY 156,2% 4,9% 74,8% -19,7% -25,5% -38,9% 51,3%
Net Share 34,6% 29,5% 31,1% 1,3% 2,0% 1,3%
Δ MoM(p.p.) -5,0 -4,4 11,1 0,4 -0,2 -1,9
Δ YoY(p.p.) 14,2 -13,1 4,2 -1,2 -2,1 -2,0
Net YTD (mil) 1.889 2.274 1.028 -37 -11 210 5.353
Δ YoY 185,7% 59,6% 61,8% -108,2% -550,7% 62,2% 62,2%
Net Share YTD 35,3% 42,5% 19,2% -0,7% -0,2% 3,9%
Δ YoY(p.p.) 15,3 -0,7 -0,1 -14,2 -0,3 0,0
Net Adds (ex-M2M) (mil) 324 201 238 -11 21 -5 768
Δ MoM 5,7% -17,5% 83,5% -53,4% 4,9% -658,3% 13,3%
Net Share (ex-M2M) 42,2% 26,2% 31,0% -1,4% 2,8% -0,7%
Δ MoM(p.p.) -3,1 -9,8 11,9 2,0 -0,2 -0,8
BASE PÓS-PAGO
TOTALSeptember,17 TIM VIVO CLARO OI NEXTEL OUTRAS
Source: Anatel

45. 45
Meeting with Investors
Investor Relations
Total Prepaid Base Overview
Base (mil) 42.620 38.897 41.058 32.710 48,45 1.009 156.342
Δ MoM -3,0% -0,8% -0,9% -0,4% 10,5% 0,2% -1,4%
Δ YoY -13,0% -5,1% -11,2% -12,1% 6994,1% 0,8% -10,4%
Market Share 27,26% 24,88% 26,26% 20,92% 0,03% 0,65%
Δ MoM(p.p.) -0,47 0,14 0,11 0,20 0,00 0,01
Δ YoY(p.p.) -0,8 1,4 -0,2 -0,4 0,0 0,1
Net Adds (mil) -1.322 -315 -382 -128 4,59 2 -2.141
Δ MoM 158,5% 24,2% 496,6% -268,5% -27,8% -136,6% 184,1%
Δ YoY 224,7% 18,5% 9,5% -82,0% 30513,3% -178,7% 23,2%
Net Share -61,8% -14,7% -17,9% -6,0% 0,2% 0,1%
Δ MoM(p.p.) 6,1 18,9 -9,4 -16,1 -0,6 1,0
Δ YoY(p.p.) -38,3 0,6 2,2 35,0 0,2 0,3
Net YTD (mil) -5.917 -1.490 -801 -190 45,49 -5 -8.357
Δ YoY 62,2% 24,3% -74,1% -91,1% 12677,8% 102,5% -17,1%
Net Share YTD -70,8% -17,8% -9,6% -2,3% 0,5% -0,1%
Δ YoY(p.p.) -34,6 -5,9 21,1 19,0 0,5 0,0
TOTALNEXTEL OUTRASSeptember,17 TIM VIVO CLARO OI
BASE PRÉ-PAGO
Source: Anatel

46. 46
Meeting with Investors
Investor Relations
Total Voice & Data (modem+M2M) Postpaid Base Overview
Modem M2M Modem M2M Modem M2M Modem M2M Modem M2M Modem M2M Modem M2M
Base (mil) 341 1.656 1.643 5.854 1.165 4.940 167 1.407 41 0 8 634 3.366 14.491
Δ MoM -0,5% 2,2% -4,0% 1,8% -1,2% 1,7% -1,9% 1,8% -4,5% n.d -1,5% 3,1% -2,6% 1,9%
Δ YoY -21,1% 15,2% -31,8% 22,5% -30,1% 16,5% -22,7% 12,5% -49,7% n.d -26,6% 64,9% -30,1% 19,8%
Market Share 10,14% 11,43% 48,82% 40,40% 34,62% 34,09% 4,95% 9,71% 1,21% n.d 0,25% 4,37%
Δ MoM(p.p.) 0,22 0,03 -0,73 -0,02 0,50 -0,05 0,03 -0,01 -0,02 n.d 0,00 0,05
Δ YoY(p.p.) 1,2 -0,5 -1,2 0,9 0,0 -1,0 0,5 -0,6 -0,5 n.d 0,0 1,2
Net Adds (mil) -2 35 -69 105 -14 84 -3 25 -2 0 0 19 -89 269
Δ MoM -72,7% -34,9% -12,7% 61,0% -73,1% 60,5% -51,5% -23,3% 7,6% n.d -48,4% -32,8% -38,0% 15,6%
Δ YoY -78,3% -2468,3% 57,1% 94,7% -51,4% 51,4% -49,1% 462,3% -64,6% n.d -48,2% 101,4% -2,0% 119,5%
Net Share -1,7% 13,0% -77,0% 39,2% -15,3% 31,5% -3,6% 9,2% -2,1% n.d -0,1% 7,2%
Δ MoM(p.p.) 2,2 -10,1 -22,4 11,1 20,0 8,8 1,0 -4,7 -0,9 n.d 0,0 -5,2
Δ YoY(p.p.) 6,1 14,2 -29,0 -5,0 15,6 -14,1 3,3 5,6 3,8 n.d 0,1 -0,6
Net YTD (mil) -62 134 -611 841 -395 464 -37 105 -26 0 -2 211 -1.134 1.755
Δ YoY 141,7% -24,2% 6,8% 56,7% 8,5% -457,9% -43,9% -27,9% -63,7% n.d -33,9% 575,0% 2,7% 130,9%
Net Share YTD -5,5% 7,6% -53,9% 47,9% -34,9% 26,5% -3,2% 6,0% -2,3% n.d -0,2% 12,0%
Δ YoY(p.p.) -3,1 -15,6 -2,1 -22,7 -1,9 43,5 2,7 -13,1 4,3 n.d 0,1 7,9
TIM VIVO CLARO OI NEXTEL OUTRAS TOTAL
September,17
Source: Anatel

47. 47
Meeting with Investors
Investor Relations
Fixed Broadband - TIM Live area
Base (000) 375,6 1.568 2.436 740 119 5.238
Δ MoM 2,1% 0,0% 0,1% 0,0% 1,3% 0,2%
Δ YoY 25,6% 4,2% -1,3% -1,4% 20,8% 2,3%
Market Share 7,17% 29,93% 46,50% 14,12% 2,28%
Δ MoM(p.p.) 0,13 -0,07 -0,06 -0,03 0,02
Δ YoY(p.p.) 1,33 0,6 -1,7 -0,5 0,3
Net Adds (000) 7,7 0,0 2,5 0,1 1,5 11,8
Net YTD (000) 69,8 43,9 -16,2 -10,7 12,5 99,3
OI
TOTAL BASE
TOTALSeptember,17 OTHERSTIM VIVO
Source: Anatel

48. 48
Meeting with Investors
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 7.00% in
the of 2017
Source: IBGE, Central Bank Inflation report (as of Dez/16) for Government Estimates and Bloomberg
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
0.70
2.51
2.80
0.20
-3.80 -3.60
0.73 2.40
2013a 2014a 2015a 2016a 2017e 2018e
3.09
4.00
6.20 6.30
10.70
6.29
3.50
4.03
2013a 2014a 2015a 2016a 2017e 2018e
7.00 7.00
10.00
11.75
14.25
13.75
7.00
7.00
2013a 2014a 2015a 2016a 2017e 2018e
3.21 3.30
2.40
2.70
4.00
3.25 3.25 3.30
2013a 2014a 2015a 2016a 2017e 2018e

49. 49
Meeting with Investors
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

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Historical Data: P&L
Description 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 2Q17 3Q17 3Q17 vs 3Q16
Gross Revenues 25.771.500 5.738.493 5.623.766 5.624.961 5.758.370 22.745.590 5.566.509 5.502.436 5.674.580 0,9%
Service Gross Revenues 23.124.634 5.387.853 5.243.026 5.291.900 5.445.040 21.367.819 5.276.318 5.189.650 5.397.036 2,0%
Mobile Service Gross Revenues 22.121.450 5.106.852 4.952.140 4.996.041 5.133.929 20.188.962 4.989.243 4.871.563 5.064.857 1,4%
Gross Revenue Fixed Services 1.003.185 281.001 290.886 295.859 311.110 1.178.856 287.075 318.087 332.179 12,3%
Product Gross Revenues 2.646.866 350.640 380.740 333.060 313.330 1.377.771 290.191 312.786 277.544 -16,7%
Taxes and Discounts (8.629.235) (1.884.147) (1.803.615) (1.725.686) (1.714.728) (7.128.176) (1.615.135) (1.560.044) (1.591.219) -7,8%
Taxes and discounts on services (7.737.407) (1.769.198) (1.672.765) (1.602.585) (1.603.017) (6.647.565) (1.532.428) (1.439.446) (1.491.584) -6,9%
Taxes and discounts on product sales (891.828) (114.950) (130.849) (123.101) (111.711) (480.611) (82.707) (120.598) (99.635) -19,1%
Total Net Revenues 17.142.265 3.854.346 3.820.151 3.899.274 4.043.642 15.617.413 3.951.373 3.942.392 4.083.361 4,7%
Net Revenues Services 15.387.227 3.618.655 3.570.260 3.689.315 3.842.023 14.720.253 3.743.890 3.750.204 3.905.452 5,9%
Mobile Service 14.726.779 3.437.810 3.387.088 3.502.730 3.640.861 13.968.489 3.565.249 3.554.874 3.705.796 5,8%
Client generated 12.939.020 3.064.145 3.061.837 3.148.485 3.283.101 12.557.567 3.211.047 3.281.964 3.401.275 8,0%
Voice Local (Usage and Monthly fee) 5.595.440 1.197.219 1.189.458 1.203.625 1.301.041 4.891.342 1.070.476 889.693 898.433 -25,4%
Voice Long Distance 1.814.065 387.400 361.906 342.180 324.337 1.415.823 291.919 263.773 250.694 -26,7%
Data and Content VAS 5.529.515 1.479.526 1.510.473 1.602.680 1.657.723 6.250.402 1.848.653 2.128.499 2.252.148 40,5%
Interconnection 1.521.917 298.014 243.896 254.473 264.637 1.061.019 227.703 176.260 196.263 -22,9%
Other Revenues 265.842 75.652 81.356 99.773 93.123 349.903 126.498 96.651 108.258 8,5%
Fixed Service 660.449 180.845 183.172 186.585 201.162 751.765 178.640 195.330 199.656 7,0%
Net Revenues Products 1.755.038 235.691 249.891 209.959 201.619 897.160 207.484 192.188 177.909 -15,3%
Operating Expenses (10.528.854) (2.733.363) (2.579.034) (2.620.042) (2.475.607) (10.408.046) (2.688.572) (2.553.793) (2.556.555) -2,4%
Personnel expenses (1.043.852) (304.744) (218.959) (249.388) (232.206) (1.005.296) (222.873) (236.087) (235.290) -5,7%
Selling & marketing expenses (3.742.720) (895.254) (852.395) (887.093) (962.359) (3.597.101) (902.130) (868.859) (868.944) -2,0%
Network & interconnection (3.823.481) (985.650) (965.956) (968.419) (853.757) (3.773.782) (1.050.497) (924.342) (926.450) -4,3%
General & administrative (610.974) (145.454) (141.690) (132.063) (121.279) (540.487) (137.834) (137.748) (135.818) 2,8%
Cost Of Goods Sold (1.856.668) (254.360) (272.576) (231.311) (217.711) (975.959) (202.190) (232.240) (199.675) -13,7%
Bad Debt (230.357) (71.356) (69.160) (73.223) (52.703) (266.442) (64.932) (82.895) (91.135) 24,5%
Other operational revenues (expenses) 779.198 (76.544) (58.298) (78.545) (35.592) (248.979) (108.115) (71.622) (99.244) 26,4%
Operating Expenses (Normalized) (11.739.834) (2.692.050) (2.616.062) (2.596.660) (2.482.614) (10.387.386) (2.688.439) (2.551.872) (2.556.556) -1,5%
EBITDA 6.613.411 1.120.983 1.241.117 1.279.233 1.568.035 5.209.367 1.262.802 1.388.599 1.526.806 19,4%
EBITDA Margin 38,6% 29,1% 32,5% 32,8% 38,8% 33,4% 32,0% 35,2% 37,4% 14,0%
EBITDA (Normalized) 5.402.431 1.162.295 1.204.089 1.302.615 1.561.028 5.230.027 1.262.934 1.390.520 1.526.805 17,2%
EBITDA Margin (Normalized) 31,5% 30,2% 31,5% 33,4% 38,6% 33,5% 32,0% 35,3% 37,4% 11,9%
Depreciation & Amortization (3.361.971) (909.582) (951.241) (944.275) (980.074) (3.785.172) (988.953) (991.329) (993.667) 5,2%
Depreciation (1.851.261) (500.220) (528.431) (529.051) (526.339) (2.084.041) (540.252) (538.244) (535.335) 1,2%
Amortization (1.510.710) (409.362) (422.809) (415.224) (453.735) (1.701.131) (448.702) (453.085) (458.332) 10,4%
EBIT 3.251.440 211.400 289.877 334.958 587.961 1.424.196 273.849 397.270 533.139 59,2%
EBIT Margin 19,0% 5,5% 7,6% 8,6% 14,5% 9,1% 6,9% 10,1% 13,1% 52,0%
Net Financial Results (250.406) (68.822) (164.802) (75.906) (101.349) (410.880) (103.225) (127.247) (148.126) 95,1%
Financial expenses (1.115.524) (291.931) (292.674) (292.866) (279.015) (1.156.485) (280.110) (241.442) (266.906) -8,9%
Net exchange variance 2.410 (3.485) (1.961) 283 318 (4.845) (692) (2) (766) -371,0%
Financial income 862.708 226.594 129.832 216.677 177.347 750.450 177.578 114.197 119.546 -44,8%
Income Before Taxes 3.001.034 142.578 125.074 259.052 486.611 1.013.316 170.624 270.023 385.013 48,6%
Income Tax and Social Contribution (915.591) (14.671) (50.625) (74.975) (122.618) (262.889) (38.533) (51.097) (105.920) 41,3%
Net Income 2.085.443 127.907 74.449 184.077 363.994 750.427 132.091 218.925 279.093 51,6%

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Investor Relations
Historical Data: Operational
Description 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 2Q17 3Q17 3Q17 vs 3Q16
Brazilian Wireless Subscriber Base (000`s) 257,814 257,811 253,408 251,028 244,067 244,067 242,790 242,124 241,063 -4,0%
Estimated Total Penetration 125,67% 125,42% 124,00% 121,64% 118,04% 118,04% 117,20% 116,73% 115,93% -5,71 p.p
Municipalities Served (GSM) 3.448 3.460 3.460 3.460 3.460 3.460 3.460 3.460 3.460 0,0%
Market Share - TIM 25,69% 26,09% 25,25% 25,20% 25,98% 25,98% 25,5% 25,12% 24,64% -0,56 p.p
Total Lines - TIM (000's) 66.234 67.269 63.988 63.247 63.418 63.418 61.868 60.831 59.390 -6,1%
Prepaid Lines (000's) 52.654 53.721 50.229 49.005 48.537 48.537 46.541 44.996 42.620 -13,0%
Postpaid Lines (000's) 13.581 14 13.759 14.242 14.881 14.881 15.326 15.835 16.771 17,8%
Gross Additions (000's) 34.201 7.552 7.128 7.812 8.966 31.458 7.017 6.924 6.918 -11,4%
Net Additions (000's) -9.486 1.035 -3.281 -741 171 -2.816 -1.550 -1.036 -1.441 94,5%
Churn 59,1% 9,5% 15,6% 13,4% 13,9% 52,4% 13,6% 12,9% 13,8% 0,42 p.p
Total ARPU (R$) 16,7 17,2 17,2 18,4 19,2 18,0 19,0 19,4 20,5 11,4%
Total MOU 119 119 118 116 113 117 107 107 111 -4,6%
SAC 30 29 32 28 27 29 34 43 40 40,4%
Handsets Sold (000's) 4.659 363 358 283 272 1.276 248 304 266 -5,9%
CAPEX (R$ Mln) 4.764 710 975 1.122 1.695 4.502 669 809 1.009 -10,1%
Organic CAPEX (R$Mln) 4.767 710 975 1.065 1.695 4.446 669 809 1.009 -5,3%
Employees 13.062 12.297 12.104 9.956 9.863 9.863 9.687 9.482 9.404 -5,5%

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Investor Relations
Historical Data: Cash Flow
Description 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 2Q17 3Q17
Initial Net Financial Position 1.276 1.733 3.476 3.957 3.455 1.733 2.721 4.372 4.400
EBITDA Normalized 5.402 1.162 1.204 1.303 1.561 5.230 1.263 1.391 1.527
Capex (4.764) (710) (975) (1.122) (1.695) (4.502) (669) (809) (1.009)
EBITDA Normalized - Capex 638 452 229 181 (134) 728 594 582 518
D Working Capital (628) (1.870) 123 579 1.149 (19) (1.089) (215) 349
Non recurring operating items - (41,3) 37 (23,4) 7,0 (21) (0,1) (1,7) -
Operating Free Cash Flow Ex-licenses 10 (1.459) 389 736 1.022 688 (495) 365 867
Clean UP 700MHZ (370) - - - - - (859) - -
Operating Free Cash Flow Reported (360) (1.459) 389 736 1.022 688 (1.354) 365 867
Financial investments - - - - - - - - -
Asset disposal 2.503 3 108 4 25 140 - 15 -
Net impact of financial interests (487) (132) (230) (144) (166) (672) (178) (201) (211)
Taxes Payments (385) (86) (134) (55) (75) (350) (72) (50) (33)
Others impacts (1.368) (69) (154) (39) (72) (334) (47) (13) (53)
Net Cash Flow before dividends and change in equity (97) (1.743) (21) 502 734 (528) (1.651) 116 570
Dividends (360) - (460) - - (460) - (144) (2)
Change in Equity - - - - - - - - -
Net Cash Flow (457) (1.743) (481) 502 734 (988) (1.651) (28) 568
Final Net Financial Position 1.733 3.476 3.957 3.455 2.721 2.721 4.372 4.400 3.832

53. 53
Meeting with Investors
Investor Relations
Stock Performance (base 100)*
Year to date
*Last price as of 11/23/2017
Source: Bloomberg
Structure and Stock Performance
Shareholders Structure
Treasury Shares: 1,711,311 (0.07%)
Total Shares: 2,421,032,479
75
100
125
150
Nov-16 Jan-17 Apr-17 Jul-17 Oct-17
TSU
+35.4%
TIMP3
+39.5%
Ibovespa
+14.4%

54. 54
Meeting with Investors
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
Vicente Ferreira
E-mail: vdferreira@timbrasil.com.br
Phone: +55 21 4109-3360
Pedro Yagelovic
E-mail: pybsantos@timbrasil.com.br
Phone: +55 21 4112-6990
Rafaela Gunzburger
E-mail: rgunzburger@timbrasil.com.br
Phone: +55 21 4112-5119
Luiza Macedo
E-mail: ldcmacedo@timbrasil.com.br
Phone: +55 21 4112-6828
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

55. 55
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Investor Relations