1. Results Presentation
3rd quarter | TIM Participações S.A.
Rio de Janeiro, 31st October 2011 0

2. Agenda
3Q11: Main Achievements
Q
3Q11: Financial Results
Conclusions & Outlook
1

3. Q3 Main Achieviments
Customer Base: +26.1% YoY
Net Revenues +18.9% YoY (confirming Q2; Post-paid accelerating)
(confirming Q2 +19.5%) Voice Outgoing: +21% YoY
1 Growth Acceleration
Net Services Revenues +13.7% YoY (confirming Q2 )
(accelerating vs. Q2 +11.8%) Data: +47.6% YoY
(accelerating vs. Q2 +33% )
#2: volume and value Incremental Market Share 36.8%
2 Solid KPIs ARPU stabilized (QoQ) ARPM stabilized
Internet users >2 2 mln daily
>2.2 Smartphone penetration at 19.5%
19 5%
EBITDA: +11.3 YoY (+18.7% SAC/ARPU: 1.7x (vs 2 3 3Q10)
(vs. 2.3
Normalized)
3 Profitability Bad Debt: 0.95% (vs. 1.34% 3Q10)
EBIT: +83% YoY (513 mln)
Subscriber retention cost increased
Net Income: +116% YoY (317 mln)
Capex : AES Deal: closed
4 Strengthening the R$ 0.84 billion in 3Q11 AuCap R$ 1.7 Bln: fully funded to
foundations R$ 1.9 billion YTD (Sept) support business growth
2

4. Able to combine growth and profitability
R$ mln, IFRS
YoY 3Q11
Q
Customer B
C t Base 1Q11 2Q11 3Q11 9M11 9MYoY
26.1%
(MKT Share)
Customer
52.8 55.5 59.2 59.2 +26%
Base (Mln)
Revenues 18.9%
Revenues 3,752 4,252 4,371 12,375 +17.5%
Service 3,463 3,744 3,887 11,094 +11.6%
Service 13.7%
13 7% Revenues
Revenues
EBITDA 1,033 1,138 1,152 3,323 +11.1%
Normalized:
EBITDA 11.3% 3Q11: +18.7%
3Q11 +18 7% EBIT 350 529 513 1,392
1 392 +103.0%
+103 0%
Net Income 213 350 317 880 +169.1%
EBIT 83%
EBITDA -
736 421 314 1,471 +17.0%
CAPEX
Net Income 116%
Net Debt 1,671 1,998 1,458 1,458 -29.9%
-10,0% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0%
3

5. 3 waves of growth
Customer Base Voice Data
Mln users % YoY Min, Billion minutes, Gross Revenue R$ Bln % YoY %, Gross Mobile Revenue, R$ Mln
% YoY
3.7
+46% 123 130 +5% 16 +300 Bps
2.5
MoU 90 22.4 % Data/ 12 13
1.8 59.2 +33% Service
Net Adds 16.9 834
46.9
39.6 Total 10.5
Traffic 3.4
34 565
2.8 496
+26% 2.5
Customer +19% Revenues +21% Data +47.6%
Base +14% +14%
(Voice Out) Revenues
3Q09 3Q10 3Q11 3Q09 3Q10 3Q11 3Q09 3Q10 3Q11
Revenues
+% Q3 YoY
R$ Mln 4,371 % YoY
Total 3,466 3,677
+18.9%
Revenues +6%
3,887
3,213 3,418
3 418
Customer +13.7%
Total Traffic Data +6%
Base Service
Revenues
+26% +33% +48%
3Q09 3Q10 3Q11
Community FMS Internet for
Strategy Expansion (Voice) everybody
4

6. Customer Base: Community Expansion
Total Mobile Market Total Mobile Market
Mln of lines Mln of lines
Vivo TIM Claro Oi
65,1 67,0
63,4 30,14% 29,80% 29,65% 29,48% 29,48% 29,53% 29,49%
60,8 62,1
57,7 58,9 59,2
56,8 25,47% 25,55% 25,46% 25,39% 25,46% 25,51% 26,04%
53,4 54,7
52,2 57,5
57 5
50,5
50 5 56,2
56 2 25,78% 25,30%
25 78% 25 30%
48,8 24,91% 25,26% 25,11% 25,34%
54,5 24,52%
51,8 52,8
49,2 41,4 41,7 41,5 42,8
46,9 39,6 19,51% 19,69%
38,3 19,38% 19,28% 19,38% 18,85% 18,84%
37,4
Sep‐10 Nov‐10 Jan‐11 Mar‐11 May‐11 Jul‐11 Sep‐11
Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11
Pre-paid Mobile Market - Consistency Post-paid Mobile Market - Accelerating
Mln of lines 27.2% Mln of lines
20.7%
50.6
8.7
26.5%
44.3 45.1 .48.5 20.2%
25.3%
25 3% 46.6
46 6
41.8 7.7
39.7 21.2%
7.2
Infinity
Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11
Mkt Share Mkt Share 5

7. Voice Outgoing: Continues to push on FMS
Post-paid Pre-paid Voice Outgoing Revenues
Net Adds (000) Net Adds (mln) YoY
Liberty Infinity
1Q11 17%
+3.1
+646
+2.4
+303
303 +1.6
+1 6
+223 2Q11 20%
3Q11 21%
1Q11 2Q11 3Q11
1Q11 2Q11 3Q11
Total Outgoing Traffic ARPM = ARPU/MOU
Bln Minutes R$ cent
20
18 18 Reshaping Portfolio… …Portfolio Reshaped
17
30
24.0 Europe Avg.:
15 22.0
(
(Stable)
) R$ 0.22
25
12 19.1
19 1 18.1
10 16.5 17.0 16.3 20
15
~2X
10
5
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
0
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
6

8. Data growth in accelerating mode
Mobile Data revenues Unique users monthly
Gross Mobile Revenues After Infinity Web
y Mln clients
15.7%
15 7%
14.6%
13.6% 13.8%
Data / 13.0% 12.9% 14.8
2x
Service (%) 12.0%
+47.6% Post Paid
+31.4% +32.3% +33.5% 7.5
+13.9% +14.0% Pre Paid
YoY +12.7%
Growth
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Sep’10 Sep’11
Smartphone penetration Infinity Web (Pre-Paid)
% Internet enabling handsets on total CB Daily Unique users Mln clients
users,
18.5% 19.5% ~7x 2.2
16.0%
12.0%
10.0%
8.0% 0.3
Sep'10 Dec'10 Mar'11 Jun'11 Aug'11 Sep'11 A g Sep Oct No Dec Jan Feb Mar Apr Ma Jun Jul Aug Sep
Aug Nov May
2010 2011
7

9. Accelerating post-paid through efficient business model
Customer Base Post-Paid Bad Debt and SAC/ARPU
Mln lines 0.6 % Gross revenues, months
0.3 0.3 0.3
0.2
02 0.2
02 Bad
B d 2.00% 1.83%
2 00% 1 83%
0.2 1.34% 1.04%
debt
Net Adds 0.77% 1.08% 0.95%
3Q09: 8,004 8,651 3.1
7,236 7,476 7,701 2.6
6,316 6,615 6,956 2.3
1.8
18 1.6 1.7
17
SAC/ 1.5
+20% ARPU
CB
YoY
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Handsets sold - volume Subsidy
000 units handset sales
units, R$ Mln
Product
+83% 732 712 Revenues
+49%
3,507 424 468 433
+64% 3,164
380
2,262 286
1,915 2,125
1,383 Capitalized
54% 71% 85 Subsidy
Smart- 64 26 8
48% 28% 29% 0 0
phone 19% 115
1Q10 1Q11 2Q10 2Q11 3Q10 3Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
8

10. Agenda
3Q11: Main Achievements
Q
3Q11: Financial Results
Conclusions & Outlook
9

11. EBITDA & Efficiency Drivers
EBITDA Service Margin improvement & CB Expansion
R$ Mln 3Q11 vs. 3Q10: Lines (Mln)
32.5% 32.6%
Reported: +11 3%
+11.3% 31.1%
Normalized: +18.7% EBITDA
Service 3.75
Margin 0.65 Post Paid
1,138 1,152
EBITDA 2.70
1,035 0.30
1.82
64 0.22
1,152 3,1 Pre Paid
EBITDA 1,138 Net Adds 2,4
normalized 971 1,6
3Q10 2Q11 3Q11 1Q11 2Q11 3Q11
Network Efficiency Bad Debt
R$ Mln R$ Mln YoY %
Mln,
% YoY % YoY
Total Traffic (min):
+32.8% YoY Bad Debt % 1.34%
3,435 Gross Rev 1.04% 1.08% 0.95%
3,294 +21.1% 0.77% -39 Bps
3,105 3,061
Outgoing 2,837
2 837
Revenues 69 66
58 61
+11.9% -12.4%
42
1,075 1,085 1,109 1,147 1,203
Network and Bad Debt
ITX costs
3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11
10

12. Consistent EBITDA growth
EBITDA Evolution (in R$ Mln) From EBITDA to Net Income (in R$ Mln)
Revenues Costs Margin
2011 485 (598) (113)
2010 259 (275) (16)
Δ (97)
Handset Capitalized (64) Positive impacted by
FX & Volume
l (33) Zero subsidy policy
1,152 (639)
Fistel (63)
468 (97)
(67)
(127)
(60)
1,152
1,035 513 (61)
(135)
Margin 317
26.4% 11.7%
%
7.2%
Ebitda Depreciation Ebit Net Taxes and Net Income
and Financial Others
Amortization Expenses
Ebitda Services Net Commercial Network + G&A + Ebitda
3Q10 Revenues Handset Costs ITX Other 3Q11
Expenses
ΔYoY +11.3% -15.4% +83.5% +4.4% +81.7% +116.1%
ΔYoY +13.7% +7x +6.7% +11.9% +20.8% +11.3%
28.2% Ebitda Margin 26.4%
30.8% Service Ebitda Margin 32.6%
11

13. Cash Generation
Operational Free Cash Flow in 3Q11 Net Debt 3Q 2011
R$ Mln R$ Mln
370
(838) 2,079 in
3Q10
1,152 684
1,998 (144)
684
1,458
•Income Tax
•Financial
Results
Ebitda Δ Working CAPEX Oper. FCF
Capital
% on Net 26.4% 8,5% 19.2% 15.6% 2Q11 Oper FCF Non-Oper FCF 3Q11
Revenues
% YoY +11.3% +4x +59.4% +13.4%
12

14. Strengthening Infrastructure
2011
TBR – TRX Accumulative
CAPEX Activations
32.319
R$ Bn +38%
1.9
1.7 +25%
0.3
1,5
-40%
0.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec EoP 09 EoP 10 2011E
TRX - NNE
Subsidy -17%
0.6 Activations
& Commercial
15.431
Rest of
Brazil
48%
1.6
16 52%
1.3 +23%
North and
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Northeast
Network & IT 0.9 +44%
Node B
Activations
1.214
+21%
YTD Set’09 YTD Set’10 YTD Set’11
+74%
3Q09 3Q10 3Q11
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec EoP 09 EoP 10 2011E
Subsidy
0.2 0.1 0.1 MW
& Commercial
Activations
1572
Network & IT 0.4 0.4 0.8
+59%
+5x
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec EoP 09 EoP 10 2011E
13

15. Agenda
3Q11: Main Achievements
Q
3Q11: Financial Results
Conclusions & Outlook
14

16. Delivery on Promises
Waves of Growth
Q3 Results
+% YoY
Customer
Total Traffic Data
Base
+26% +33% +48%
Community Expansion FMS (Voice) Internet for everybody
Guidance 2011-2013 9M11
CB Expansion
Mln lines Market Share
>25% >26%
46,9 59,2
Revenue growth
g Serv. Rev.: +11.6%
Serv Rev : +11 6% (YTD)
set/10 set/11 % High Single Digit
Total Rev.: +17.5% (YTD)
MOU increase
Min/month
123 130 Profitability
EBITDA 2011 > R$4.5 bln R$ 3.3 billions (YTD)
set/10 set/11 CAPEX
Smartphone Penetration 3 Years CAPEX R$ 8.5 bln R$ 1.9 billion (YTD)
Smartphone, % CB
~20%
20%
8%
EBITDA - CAPEX
> R$ 6.6 bln (’11-13) R$ 1.5 billion (YTD)
set/10 set/11
15

17. 31st October: Atimus deal closed, ready for a new phase
Architecture: Rio de Janeiro/São Paulo
4 reasons behind
Atimus Acqusition*
Opex &
p
Corporate
Capex
Broadband
Savings
Copper or Fiber Drop
Mobile Data Residencial
300 Mb
64/200 ports
A l ti
Acceleration B db d
Broadband
Creating value for
shareholders
The ultimate urban
mobile network *EV = R$1.6 Bln / Cash out = R$ 1.5 Bln 16

18. Ready to catch the Brazilian FMS opportunity
Fixed Ultra Broadband
FMS Voice
TIM Fiber
Infinity +3.1
+3 1
Net Adds +2.4
21 cities in metro SP/Rio
+1.6
Wireline Brazilian Market 8 mln households
Liberty +646 % Total Fixed R$ 30 bln TLC market
Net Adds BB Fixed
+303
lines
Market 550,000 corporate clients
+223 accesses”
19%
1Q11 2Q11 3Q11
>2Mbps
Negative Mobility
Voice
Price Premium
Only Broadband 81%
Mobile 79% 21%
<2Mbps
ARPM (R$/min)
( $/ )
0
0
FMS Data
0
2X 0
0
Data Daily Unique users, Mln clients
-40%
40% 0
2.2
Fixed
0 Wireline Accesses
0 (example incumbent A)
2006 2007 2008 2009 2010 2011 % YoY 3Q09 3Q10 3Q11
‐3% ‐4.8% ‐6.5% Jan Feb Mar Apr May Jun Jul Aug Sep
2011
17

19. Capital Increase & Corporate Structure
Number of Shares ‘000
000 New
Ne Corporate Str ct re
Structure
200
CEO
2,417
2,217
Follow-On
Before Follow-On After Follow-On CFO IRO
Follow-On ‘000 Reais Number of Shares
Base 1,640,853
1 640 853 190,796,858
190 796 858
Greenshoe 81,369 9,461,510 • One single class of shares (Novo Mercado)
• Strengthening commitment with the Financial
1,722,222 200,258,368 Community
18