Company’s Presentation TIM Brasil

Agenda

Available at:

o Website: www.tim.com.br/ir

o TIM IR App:

English

AGENDA Macro & Industry Overview........6

Recent Results: 1Q14……………… 13

Network Evolution…………………. 21

4G Update……………………….….…. 25

Fixed Business…………………….…..28

Business Outlook…………….….…. 31

Historical Data & Others…….……35

Portuguese

KNOWING TIM 4

KNOWING TIM BETTER

Gross Revenues (R$ Bln)

Customer base EoP (Million)

1998 2013 1998 1Q14

15,000 km fiber optical backbone

5,500 km fiber optical backhauling

Organic Growth

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$30 billion of Market Capitalization.

73.9 million customers (27% Share)

The 2nd Player - Market and rev. share

More than 430,000 points of sales

More than 160 own stores

15 Customer Care Centers (16k attendants)

~14,000 Antennas

3,404 cities covered

95% of urban pop. covered

49,000 km of optical fiber network

~12,225 employees

23,000 indirect jobs

R$10.4 billion in taxes payments in 2013

R$3.9 billion invested in 2013

Sales

Network

Social &

Economic

73.9

29.6

GROWTH STRUCTURE

Macro & Industry Overview

MACRO & INDUSTRY OVERVIEW 6

MACRO SCENARIO OUTLOOK

• Market consensus shows a much 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.

Real GPD Forecast (% YoY Growth)

Inflation Forecast (IPCA: % YoY Growth)

Interest Rate Forecast FX Rate Forecast (R$/U$ - year average) (% Selic Target p.y. – year average)

Source: BaCen

6,25 5,90

5,40

2014e 2015e 2016e

10.9 11.9

10.0

2014e 2015e 2016e

2,40 2,50

2,20

2014e 2015e 2016e

2.2

2013a

8.2%

2013a

6.3%

2013a

2.3%

2013a

1,80 2,20

3,20

2014e 2015e 2016e

MACRO & INDUSTRY OVERVIEW 7

BRAZILIAN TELCOS X-RAY

Fixed Mobile

Fixed Mobile Fixed BB/TV Fixed / Mobile

Fixed BB/TV Fixed / Mobile

Fixed BB

Oi Vivo

Claro TIM

Mobile Fixed Fixed BB Pay-TV Group

Customers (000´s) 73.916 662 75 n.d 74.653

Market share 27.0% 1.5% 0.3% n.d ---

Net Adds 1Q14 (000´s) 486 - 15 n.d 501

Net Revs (R$ Mln) FY13

19,264 657 19,921

Net Revs (R$ Mln) 1Q14

4,561 141

Mobile Fixed Fixed BB Pay-TV Group

Customers(000´s) 78.465 10.312 4.320 597 93.694

Market share 28.7% 23.0% 19.5% 3.2% ---

Net Adds 1Q14 (000´s) 1.220 78 - 4 3 1.297

Net Revs (R$ Mln) FY13

23,002 11,720 34,722

Net Revs (R$ Mln) 1Q14

5,759 2,853 8,612

Mobile Fixed Fixed BB Pay-TV Group

Customers (000´s) 50.580 17.775 6.329 828 75.512

Market share 18.5% 39.6% 28.6% 4.5% ---

Net Adds 1Q14 (000´s) 363 - 91 - 1 453

Net Revs (R$ Mln) FY13

9,290 19,132 28,422

Net Revs (R$ Mln) 1Q14

--- --- ---

Mobile Fixed Fixed BB Pay-TV Group

Customers(000´s) 68.748 10.641 6.718 9.875 95.982

Market share 25.1% 23.7% 30.4% 53.6% ---

Net Adds 1Q14 (000´s) 45 - 226 218 489

Net Revs (R$ Mln) FY13

12,773 20,424 33,197

Net Revs (R$ Mln) 1Q14

3,178 5,385 8,563

Source: Companies Releases

MARKET STRUCTURE CHANGING TOWARDS DATA USAGE

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

Total Households Households which does NOT possess

Households with internet connection and breakdown for households without internet connection:

MACRO & INDUSTRY OVERVIEW 8

3%

37%

51%

91% 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

Consumption

People that access Internet (10 years or +)

57 mln

32 mln

2 mln

81 mln

106 mln

23 mln

Households with internet connection (%; CETIC jun’13)

53% of pop.

70% of pop.

Source: PNAD 2012, CETIC.br ‘ TIC Domicílios 2013, Company estimates

Yes

No

24.3 mln of households

83 mln 49% of pop.

Fixed

Mobile 21%

74%

40%

60%

Re-visiting Market Structure

Market Data Revenues Growth 2016 vs. 2012:

> 13 bln Reais on Mobile (+100%)

>7 bln Reais on Fixed (+35%)

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

22% 18% 18% 13% 11% 7% 6%

% Growth YoY Social media users

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 9

465 mln in the world

List of selected selected

countries as of Fev/14

Mobile 23.0

12.8 9,3 19,3

4.8

Fixed+Data+Pay Tv

11.7

20.4 19.1

0.7

4.9

Total 34.7 33.2 28.4 19.9 4.8 4.9

LEVERAGING ON PURE MOBILE COMPETITIVE ADVANTAGE

Long Distance Leader

50% Market Share

2nd Overall

73.9 million customers

Prepaid Leader

29.1% Market Share

Source: Companies Releases, TIM estimates; CETIC jun’13; Akamai ; PNAD - IBGE

FMS Focus

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

Oi

Claro

Vivo

TIM

29.5% 29.7%

28.7%

25.1%

26.8% 27.0% 25.4%

24.5% 25.1%

19.7%

18.7% 18.5%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

Customer Base Evolution (Market Share)

Entering in Data World Via Mobile (mln users)

Voice FMS: TIM, with no legacies, can only gain on the trend (R$ billion, Net Revenue per Group 2013)

1Q14 x 1Q11

-0.8 p.p

+1.9 p.p

-0.3 p.p

-1.2 p.p

Source: ANATEL

Mobile

Fixed 4.1

14.6

33.1

52.5

94.8

11.4

13.8

16.3 19.1 20.9

2009 2010 2011 2012 2013

+83%

+23x

28%

26% 23%

16%

4% 4%

Vivo Claro Oi

TIM GVT Nextel

Revenue Share

MACRO & INDUSTRY OVERVIEW 10

Users’ Preference for Mobile (%Households w/ mobile phones only)

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

Low Fixed Broadband Quality (Brazil’s Average Speed; Source: Akamai)

Fixed Incumbents

Mobile

41.1% 49.7%

51.0%

2009 2011 2012

4Q13 2.7 Mbps

ANATEL: >78% of fixed broadband connections are below 4Mbps

-4,20%

-8,93%

-2,26%

1Q12 1Q13 1Q14

-2,03%

1,98%

-9,68%

1Q12 1Q13 1Q14

11,82%

3,64% 2,96%

1Q12 1Q13 1Q14

13,26%

4,12% 7,64%

1Q12 1Q13 1Q14

Fixed Incumbents

Mobile

Source: PNAD 2012

Net Revenues (% YoY)

MACRO & INDUSTRY OVERVIEW 11

Brazil Ranks 83th in Average Speed per Country

PURE MOBILE STRATEGY PAYING OFF

Recent Results: 1Q14

-22.5%

1Q13 1Q14

Financial Results Mobile Net Services Revenues (Δ% YoY)

Business Generated

Business Received

(MTR mpact)

Consolidated EBITDA (Δ% YoY) Consolidated Net Income (Δ% YoY)

1Q13 1Q14

1,317 372

Incoming

Outgoing (Long Distance

+ Usage)

VAS

60.3 61.7

10.9 12.2 Postpaid

1Q13 1Q14

%YoY

+11.9%

+2.3% Prepaid

Customer Base (mln; Δ% YoY)

Mobile Data Users Growth (mln; Δ% YoY)

1Q13 1Q14

Mobile Payback Ratio (SAC/ARPU in months)

1.6x 1.6x

306 1,224

Operational Results

1ST QUARTER HIGHLIGHTS

+7.6% +21.6%

+1.4%

+8.9%

26.0% 28.0% EBITDA Margin

71.2 73.9

+3.8%

22

27

1Q13 1Q14

+20.1%

0.13 0.15 EPS (R$)

RECENT RESULTS: 1Q14 13

0.37 0.31

0.42 0.42

1Q13 1Q14

0.05 0.03 15.0

10.3 12.1

26.8

25.5

44.4 45.5

1Q13 1Q14

320 cities under the company’s quality

plan project in 1Q14

53% of 2014 target achieved in the first

quarter

Claims at Consumer’s Protection Agency (Procon) (in thds)

TIM: Claims at Anatel over 1,000 lines

Source: ANATEL Source: SINDEC-Procon

TIM other

TIM’s Quality Plan (#cities)

Note: Per economic group

25.9

The least claimed within telcos

Consistent performance in PROCON

Reducing Anatel complaints in all fronts

Network showing remarkable

improvements

320

213

1Q14 Targetfor 1Q14

Source: Company

QUALITY IMPROVEMENTS

Total Complaints

Network Complaints

Avg. Market Complaints

2014e

(Target for 2014)

599 cities

53%

4Q13

RECENT RESULTS: 1Q14 14

1Q13 1Q14

74.8 76.0 78.5

67.2 71.2 73.9

61.6

66.3 68.7

46.5

49.5 50.6

CUSTOMER BASE EVOLUTION Customer Base (mln)

Leading market growth

#1 player in prepaid

#2 player in voice postpaid

Austere disconnection policy

Prepaid Recharge (R$; YoY)

1Q12 1Q13

TIM

+3.3%

+3.8%

+3.7%

+2.2%

Source: ANATEL

Source: Company

1Q14

1Q14 x 1Q13

+10%

1Q13 1Q14

15.3%

16.5%

Mix of Postpaid over total base

Distribution Channel (YoY)

1Q13 1Q14

+22%

Source: Company

1Q13 1Q14

+28% # Points of Sales: Mass Channel (retail)

# of Own Stores

Vivo

Claro

Oi

Source: Company

+121bps

RECENT RESULTS: 1Q14 15

% of Customer Base

1Q12 1Q13 1Q14

+20.1%

1Q12 1Q13 1Q14

5.5

5.8

5.9

Mobile Data users

DATA SERVICES AT A SOLID PACE Revenues (R$ bln)

18%

21%

25%

% of Gross Services Revenues 26%

31%

36%

Users (# mln users)

+25.4% +20.4% +24.6% 1.0 1.2 1.5

18 22 27 Data Gross Revenues

67.2 71.2

73.9

4G Market Share (%; thd users)

3G Market Share (%; mln users)

23% 24%

23% 25%

42%

37%

10% 13%

1Q13 2Q13 3Q13 4Q13 1Q14

25.4

26.6

38.7

13.5

Source: ANATEL

TIM

47% 41%

20%

33%

21% 15%

12%

11%

2Q13 3Q13 4Q13

TIM

858

676

321

223

Source: ANATEL

1Q14

Source: Company Source: Company

+ 39% YoY Other VAS

services

105 mln 2.1 mln

RECENT RESULTS: 1Q14 16

Access via Mobile

Notebook sales FY2014e: 8.5 mln

Tablet sales FY2014e: 11.1 mln

Smartphone sales FY2014e: 46.7 mln

Device sales profile

Broadband Willingness to Pay (% of Households)

Source: CETIC 2012

5% of HH: Up to R$150/month

24% of HH: Up to R$70/month

59% of HH: Up to R$30/month

Huge data opportunity in-house

27 mln data users

Handset market share (Mar/14)

TIM’s Customer Base Snapshot

Source: IDC

Source: GFK Group Source: Company

The newest communication app by TIM

Provides a new user interface far all

communication

TIM Protect

TIM Chip for soccer fans: free content of soccer

teams

Ensures safety of customer’s devices and

information

Simple and reliable platform

Brazil’s largest digital music provider

>32 mln songs downloaded

TIM

P1

P2

P3 10%

25%

29%

36%

53% Open

Market

Operators

Innovative Services

Prepaid Postpaid

Data Offers

73.9 million users

+31 mln untapped market

46mln potential data users

+15 mln with data handset 36%

21%

42%

LEVERAGING ON THE LARGEST COMMUNITY

RECENT RESULTS: 1Q14 17

1.22 1.32

1.39

1Q13 1Q141Q13 1Q14

MTR Impact

MTR Cut Path

-33%

-25%

-11%

-10%

Avg. MTR Price (R$)

Mobile Service Net Revenues EBITDA

MTR Exposure

Net Services Revenues EBITDA

0.32

0.24

0.16

0.36

+5.0%

2012

2013

2014

2015e

MTR IMPACT ANALYSIS

~ 27%

~ 14%

1Q10 1Q11 1Q12 1Q13 1Q14

~ 40%

~ 20%

1Q10 1Q11 1Q12 1Q13 1Q14

Source: Company

+1.4%

+13.4%

+7.6%

MTR cut impact should be reduced

following lower exposure

Business generated (outgoing &

data) should offset MTR impact

Impact of ~ R$ 140 mln

RECENT RESULTS: 1Q14 18

Net Revenues (R$ mln; % YoY)

EBITDA (R$ mln; % YoY)

Net Income (R$ mln; % YoY)

624 603

4,087 4,100

Tho

usa

nd

s

Revenue 1Q13

Δ Handset Δ Fixed Services

Revenue 1Q14

Δ Mobile Services

-21 -42 +55

Service

Handset

4,711

ΔYoY

4,702

+1.4% -22.9% -3.4%

+0.3%

0%

-3.4%

269

306

372

1Q12 1Q13 1Q14

+13.9%

+21.6%

FINANCIAL RESULTS ANALYSIS

1,224

EBITDA 1Q13

EBITDA 1Q14

ΔHandsets

+223 -117

ΔOpex

-12

Traffic/Data ΔContribution Margin

26.0%

30.7%

1,317

28.0%

33.2%

EBITDA Margin

Service EBITDA Margin

+8%

ΔYoY +7.0% +37.0% +6.1%

Business Generated: +8.9% YoY Business Received: -22.5% YoY

(+)Mobile: Efficiency (-)Fixed: Repositioning/new brand

Cash Flow & NFP (R$ mln)

-1,193 -1,374

-1,571

-265

-332

1Q12 1Q13 1Q14

OFCF

Non OFCF

Net Cash Flow

-164

-1,458 -1,706 -1,735

NFP BoP

NFP EoP

-441

-1,899 -1,555 -1,314

(+)

(=)

+151 +421

-230 Δ Fistel

RECENT RESULTS: 1Q14 19

Network Evolution

STRATEGY: INFRASTRUCTURE EVOLUTION

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 21

714

1,764

2013 2014e

1Q13 1Q14

~11,000

~14,000

2013 2014e

2G

3G

4G

Investments

Fiber Infrastructure

~19,700 Km ~37,600 Km

Backbone Metro-Areas

NETWORK IMPROVEMENTS

R$3.8 Billion in FY14e

R$613 mln in 1Q14

>94% in infrastructure

57,300 Km in Fiber + =

1Q13 1Q14

2G

3G

4G

R$613 mln

R$470 mln

Average throughput analysis where MBB is completed *

From To

~ 800 Kbps ~ 2.1 Mbps

Number of sites with fiber optic

Cities with mobile BB project

Number of 3G & 4G Sites Number of Wi-Fi & Small Cell

Network Additions in the 1Q14

3G sites: + 111 in Q1 (total 9,185)

4G sites: + 208 in Q1 (total 2,133)

WiFi hotspots: +190 in Q1 (total 904)

MBB cities: + 14 in Q1

+ 30% YoY

39

100

2013 2014e

+16x

*According to TIM independent analysis of the NetMetrics Reports provided by Speedtest.net

NETWORK EVOLUTION 22

Capex Evolution (R$ mln)

Capex per Technology (R$ mln)

Fiber to the site expansion to ~100 cities Benchmark: Anatel Plan for 2012-2014 (R$ bln)

3G

2G

3G

2G

3G

4G

2011

~R$3,800 R$2,983

2014e

5.9 4.8 4.6

2.1

5.0

3.5 2.6

3.4

TIM Claro Vivo Oi

10.9

+31% +52% +98%

Copper

(2-8Mbps)

Before FTTS After FTTS

Metro Ring

Own Fiber

(300 Mbps)

From Copper

To Fiber based

Wi-Fi small cell approach

Total Capex

2,836

2,983

3,386

3,871

2011

2012

2013 19%

17%

20%

% over sales

2010

18% CAGR

11%

Source: 5th monitoring cycle of mobile telecom improvements plan released by Anatel on Feb/14

8.3

7.2

5.5

Actual from 2012 to Oct/13 Forecasted to Nov/13 until 2014 end

CAPEX ANALYSIS

NETWORK EVOLUTION 23

4G Update

Vivo

Claro

Oi

TIM

Source: ANATEL

4G Market Share on 2500Mhz (%; thd users)

858

676

321

223

2500 MHZ auction results

Spectrum Characteristics

5800 Mhz 2100 Mhz

850 Mhz

700 Mhz

< 700 Mhz

BTS Range (km)

0 2 4 6 8 10

Numbers of BTS

20 15 10 7 5 2

Band W

Band X

Band V1

Band V2

2500 MHZ rural coverage obligations

X band

W band

V2 band

V1 band

Roadmap

Presidential Decree Nº 5820/06

Rules to the Digital TV migration

2006 2012

ANATEL’s Resolution Creation of a study group to define the future and the

atribution of the band

2013

Ordinance Nº 14/13 Premises to 700 Mhz destination on the SMP

2015 2018

Shutting down Period

Feb/Apr 2013 - Subrange Atribution CP Nov/13 Res. Nº 625/2013 – Atribution of the Subrange

Paid ~R$0.3 bln

Paid ~R$1 bln

Paid ~R$0.8 bln

Paid ~R$0.3 bln

4G UPDATE 25

47% 41%

20%

33%

21% 15%

12%

11%

2Q13 3Q13 4Q13 1Q14

2.1 mln

4G DETAILS

Expected date for the Auction

Format indicates soft competition: the spectrum will

be auctioned in four blocks of 10 MHz + 10 MHz;

No additional obligations (“naked auction”), synergies

with 2.5GHz auction obligations will be subject to

backhaul requirements;

Authorization for spectrum sharing in cities with pop.

<100k.

73

3 M

Hz

4

1st Round: Cap of 10 + 10 MHz

2nd Round: Cap of 20 + 20 MHz (in case of no bidders)

5 6

2 3 1

70

8 M

Hz

71

8 M

Hz

72

8 M

Hz

73

8 M

Hz

74

8 M

Hz

4

5 6

2 3 1

76

3 M

Hz

77

3 M

Hz

78

3 M

Hz

79

3 M

Hz

80

3 M

Hz

9

71

3 M

Hz

71

8 M

Hz

72

3 M

Hz

72

8 M

Hz

73

8 M

Hz

70

8 M

Hz

74

3 M

Hz

74

8 M

Hz

78

8 M

Hz

76

8 M

Hz

77

3 M

Hz

77

8 M

Hz

78

3 M

Hz

79

3 M

Hz

76

3 M

Hz

79

8 M

Hz

80

3 M

Hz

10 11 12 7 8 13 14

17 18

15 16 10 11 12 7 8

13 14 9

Auction details

Costs & Payment method

License payment in up to six installments (36, 48, 60,

72, 84 and 96 months) preceded by a 10% down

payment;

Readjustment: IGPDI +0.5% per month;

Reimbursement values will be defined in the BID

terms and will be administrated by an independent

third party;

Channel repositioning, filters, TV converter, and other

mitigation techniques will be subject to

reimbursement.

Regional Blocks:

Conclusion of the Digitalization Plan

Auction Public Consultation

Band allocation Res. Anatel 625/13

Nov/13 Jan Feb 2015 2018

Analog TV switch off period

Mar Apr May Jun Jul Aug Sep

Conclusion of the Digitalization Plan

Interference tests

Public consultation bid and interference

Bid notice Interference Resolution Digitalization Plan

700MHZ AUCTION

o Block 5 or 15 and 16 CTBC Region 106 cities or 1 mln users

o Block 6 or 17 and 18 SERCOMTEL Region 2 cities or 67k users

o Block 4 or 13 and 14 Represents 98% of the population, equals to national

4G UPDATE 26

Fixed Business

FIXED BROADBAND: LIVE TIM Accelerating Deployment

Addressable HH (000 HH)

609

1,138

1Q13 2Q13 3Q13 4Q13 1Q14

sep/12 mar/14

Customer Base (000 users) 75

4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

Customer Base ARPU (R$; CAGR %)

+15%

General Satisfaction

Offer

Billing

Call Center

6.0 7.0 8.0 9.0 10.0

TIM P2 P1

Market Performance

Customer Satisfaction Survey* (Source: TNS Institute Research)

1.5

100 neighborhoods:

41 neighborhoods in SP

59 neighborhoods in RJ

* From Dec/13 to Jan/14

8.7

9.0

8.9

9.0

8.3

7.1

8.8

7.6

7.5

5.3

7.5

7.4

8.1

8.0

7.4

TIM Fiber

39.9% Others 61.1%

UBB Market Share (SP + RJ) (connections >34Mbps)

Source: Anatel

Gross Adds (000 users)

7.6

18.3

1Q13 1Q14

+141%

Conection Quality

Source: TNS Institute Research) Feb/14

FIXED BUSINESS 28

INTELIG, NOW POSITIONED AS “TIM SOLUÇÕES CORPORATIVAS” The Opportunity Ahead

Market re-positioning

2013 2012

-

2014

Geographic expansion

Source: IDC Brazil ICT Business Service Database

TIM’s Addressable market (Net service revenues of total addressable market*; R$ bln)

Better financial performance

M 2014

Expansion:

2014: 7 new cities

2015: 12 new cities

Intelig now positioned as “TIM

Soluções Corporativas”

Re-structuring of sales force: multi

channel approach

Re-designed service portfolio

CAGR 11-14

8.8 9.2 9.8 10.9

7.7 7.6 7.7

7.8

2011 2012 2013e

VAS

Voice

22.7

2014e

4.3

24.4

5.2 4.7 5.7

Data

20.8 21.5 Total

5.7%

0.4%

7.4%

9.9%

…with considerable room to increase revenue share

(% of fixed corporate market)

1 2 3

Business Remodeling Path

*Companies with more than 100 employees

2%

P2 14%

P3 25% P1

3%

P4 21%

P5 35%

TIM

+

M

M

M

M

M

M

M

Segment EBITDA-CAPEX

Source: Company A Actual

A A

Net Revenues (with intercompany)

2013 2014

FIXED BUSINESS 29

Business Outlook

PERSPECTIVES Offer Innovation

Slower macroeconomic growth requires evolution of industry approach

Competitive landscape remains intense

Regulatory environment:

o Upcoming 4G Auction

o New consumer regulation framework

World Cup games: airports and stadiums coverage

o Wi-fi off loading at Maracanã: in recent test 25% of data traffic were off-loaded

Financial Services:

o Initial commercial launch of a “prepaid mobile account” / “mobile money”

o A partnership between TIM, “Caixa Econômica Federal” (federal bank) and Mastercard

o Focus on “unbanked” population (50% of prepaid base.)

New data offers: more options of data cap for prepaid (10 & 30Mb)

Infinity Turbo 7 launch: services package of R$7 per 7 days all in:

o Voice + Web + SMS

4G included in all data package

TIMmusic included in postpaid packages

Live TIM Extreme: new 1Gbps offer

“TIM Soluções Corporativas” / “TIM Empresas” as renewed

positioning of fixed and mobile corporate solutions

Business Generated: +8.9% YoY

EBITDA: +7.6% YoY

EBITDA Margin: +200 bps YoY

Net income: +21.6% YoY

Solid results in 1Q14

Macro environment highlights

Continued infrastructure focus

Coverage densification: macro and micro coverage enlargement

Resilience and network availability

Network control (NOC) internalization completed:

o Monitored elements - more than: 12,000 sites, 70,000 km of fiber, 900 IP network elements, 6,700 transmission equipment and 1,300 MSANs

Towers: analyzing opportunities to unlock hidden value

BUSINESS OUTLOOK 31

OFFER EVOLUTION

136 148

>170

2012 2013 2016e

2012 2013 2016e

18% 21%

>40%

VAS Gross Revs.

VAS/Revs.

21.3

27.5

2012 2013 2016e

30% 37% >50%

43%

55%

>75%

2012 2013 2016

+xx% +29%

+22% +xx%

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 32

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 33

Historical Data & Others

RECENT TOWERS DEALS

HISTORICAL DATA & OTHERS 35

HISTORICAL DATA: FINANCIALS (R$ THOUSAND)

HISTORICAL DATA & OTHERS 36

HISTORICAL DATA: FINANCIALS (US$ THOUSAND)

HISTORICAL DATA & OTHERS 37

HISTORICAL DATA: OPERATIONAL & FINANCIAL RATIOS

ROA: NOPLAT/Avg. Total Assets. Calculation considers organic Net Income and EBITDA

HISTORICAL DATA & OTHERS 38

Stock Performance (base 100)*

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% 0

20

40

60

80

100

120

140

160

180

TIMP3 Ibovespa

STRUCTURE AND STOCK PERFORMANCE

*Last price as of 02/14/2014 HISTORICAL DATA 39

HISTORICAL DATA & OTHERS 39

Cofins PIS/ PASEP ICMS Fistel Fust/

FUNTEL

TotalTotal Fust/ FUNTEL

PIS/ PASEP

ICMS Cofins Fistel

2007 2012

2007 2012

% Gross Revenues

TELCOS’ TAX BURDEN & HIGH INVESTMENTS

3% ~1%

28%

~5% 1,5% ~39%

16.3

27.2

6.5

10.1

20% of Revenues

+70%

Taxation represents almost 40% of companies gross revenues.

Tax Burden Composition Mobile Industry Tax Payments (R$ Bln)

Mobile Industry Investments (R$ Bln)

+60%

HISTORICAL DATA & OTHERS 40

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

Leonardo Wanderley

E-mail: lwanderley@timbrasil.com.br

Phone: +55 21 4109-4017

Luiza Chaves

E-mail: luchaves@timbrasil.com.br

Phone: +55 21 4109-3751

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

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 41