2. Agenda
15 years Anniversary - Rodrigo Abreu
Q2 Discussions:
Q2 in Few - Rodrigo Abreu
Operations - Lorenzo Lindner
Marketing - Roger Solé
Live TIM - Rogério Takayanagi
Financials - Claudio Zezza
Conclusions - Rodrigo Abreu
2

3. 27.8
2010 20132004 2009
15 years anniversary: Building up a solid organization
3
→ Start up (privatization process);
→ Launched national coverage;
→ Pioneer on GSM technology;
→ First operator to launch data
services: SMS and MMS.
→ Acquired fixed license;
→ 3G launch;
→ ISE adherence;
→ Intelig acquisition (~R$0.8mln)
→ Long distance leadership;
→ Novo Mercado migration;
→ Public offering R$1.7 bi;
→ Atimus acquisition (~R$1.6bln).
1998 2003
1998
Gross Revenues
(R$ Bln)
Customer base
EoP (Million)
15,000 km fiber
optical backbone
5,500 km fiber
optical backhauling
Accessing Capital Market
→ Leadership on prepaid and advancing on
postpaid.
→ Consolidated 2nd player in value and volume.
→ Building a robust fixed infrastructure.
→ Leadership in market net adds.
→ >400,000 points of sale.
→ >11,500 employees.
→ >23,000 indirect jobs.
→ Recognized as the market
innovator.
Organic
Growth
Growth via
Acquisitions
2012 1998
70.3
2012

4. 0.9% 1.1%
0.7%
1.0% 0.9%
Quarter in Few: Improvements Across the Board
7.0% 5.4%
9.7%
2Q132Q12
Organic1 Net Revenue Growth(YoY)
Organic1 Net Services Revenue Growth(YoY)
Organic1 EBITDA Growth(YoY)
-15.3%
-11.0% -9.5%
-3.6% -0.7%
1Q132Q12
10.0 10.3
10.7 10.9
11.4
2Q132Q12
3Q12 4Q12 2Q13
Ex one-off
event
ARPU Performance (YoY)
Postpaid Base (mln customers)
%Bad Debt/Gross Revs.
+20% (YoY)
Ex-M2M
Financial Operational
+14%
1Q133Q12 4Q12
1Q13
6.4% 5.5%
1.4% 1.8%
3.1%
2Q132Q12 1Q133Q12 4Q12
+8.7% (YoY)
Reported
5.6%
4.1% 4.4%
2Q132Q12 1Q13
2Q132Q12 1Q133Q12 4Q12
+2.0% (YoY)
Reported
+1.8% (YoY)
Reported
4
Efficient Approach
1: Organic revenues growth adjusted by R$44mln, EBITDA growth adjusted by R$31mln and Net
Income growth adjusted by R$20 mln due to one-off impact related to interconnection disputes.
+0.4%
Organic1 Net Income Growth(YoY)
-1.6%
13.9% 17.9%
2Q132Q12 1Q13
+12% (YoY)
Reported
18.7% 19.6% 20.5% 21.4% 22.1%
%VAS / Mobile Service Gross Revenues
2Q132Q12 1Q133Q12 4Q12

5. Operations

6. Customer Base Evolution - Market Share
(Source: Anatel)
Growth Backed by Business Resilience
19.6% 19.6%
24.0% 25.0%
28.0% 26.3%
28.1% 28.8%
2Q12
+67 bps
-168 bps
+96 bps
-1 bps
2Q13
15.3% 16.5%
23.9% 20.3%
38.2% 39.1%
22.0% 23.4%
2Q12
+140 bps
+90 bps
-353 bps
+124 bps
2Q13
29.6% 29.7% 29.1% 28.8% 28.7%
26.9% 26.8% 26.9% 27.0% 27.2%
24.6% 24.5% 24.9% 25.1% 25.0%
18.7% 18.7% 18.8% 18.7% 18.7%
Oi
Claro
Vivo
2Q12 3Q12 4Q12
+28 Bps
-89 Bps
+43 Bps
+5 Bps
YoY
1Q13 2Q13
Prepaid Voice Postpaid*
35
26 27
1.6
1.4
1.5
2Q11 2Q12 2Q13 2Q132Q11 2Q12
1.1%
0.9% 0.9%
Total
TIM
SAC & SAC/ARPU
(R$; months)
Efficient Market Approach
(Source: TIM, Anatel)
Bad Debt & Postpaid CB
(000 customers; %postpaid mix)
 Leading net additions.
 Consolidating Prepaid #1.
 Accelerating on Postpaid.
 Maintaining an efficient go-
to-market.
SAC/
ARPU
SAC
% Gross
Revs
Postpaid
*Excluding modems and M2M.
+25%
+14%
14.4% 14.5% 15.8%Mix
6

7. Caring Improvements to Increase Customer Satisfaction
Claims at Consumer’s Protection Agency (Procon)
(Avg # Claims - the lower the better; Source: SINDEC database)
ImprovingcaringReducingcomplaints
P3
P4
P1
TIM
TIM PRE POS CORP
Customer Care Satisfaction Survey
(Points; Source: TIM)
IDA – Index of Caring Performance (last reported)
(Points - the higher the better; Source Anatel)
99.9
93.998.0
92.1
92.8
80.4
84.9
65.9
Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13
P3
P4
P1
TIM
Anatel Ranking of Complains (last reported)
(Index of Complains under 1,000 access - the lower the better;
Source: Anatel)
0.20
0.320.24
0.360.34
0.470.50
0.65
Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13
P3
P4
P1
TIM
2,564
4,147
2,262
3,179
6,187
6,990
3,503
6,870
2Q12 3Q12 4Q12 1Q13 2Q13
7
8.0
7.5
7.0
6.5
6.0

8. Marketing

9. ARPU Performance
(%YoY; R$)
Reverting ARPU Trend
Voice Usage
(000 lines; minutes)
Data Performance
(monthly unique users; average days of use)
7,638
8,184
8,703 8,956
9,367
2Q12 4Q123Q12 1Q13
127
150
139
145
2Q12 4Q123Q12 1Q13
18.3 19.918.9 18.5
VAS
Voice
-15.3%
-11.0%
9.5%
-3.6% -0.7%
2Q12 4Q123Q12 1Q13
After several quarters, ARPU has reversed
its trend thanks to a continuous
management of the customer base.
Voice Postpaid* Total MOU
2Q13
18.1
2Q13
148
2Q12 4Q123Q12 1Q13
Data Users SMS Usage
2Q13
2Q13
2Q12 4Q123Q12 1Q13 2Q13
+21% +13%
*Excluding modems and M2M.
+23% +16%
9
Organic
18.3
Organic
0.4%

10. 35%
39%
43%
46%
50%
2Q12 3Q12 4Q12 1Q13 2Q13
Data Services Update: Keeping the Good Pace
Data users
(% over total customer base)
VAS
(% of Mobile Services Gross Revenues; R$ Million)
Handset Sales Market Share Apr-Jun/13
(% of handset revenues; Source: TIM)
19% 22%
Smart/Web phone Penetration
(% over total base of lines)
VAS
Gross
Revs
VAS/Revs
7%
21%
34%
38%
54%
46%
P4
P3
P1
TIM
Players
Open Mkt
TOP SELLERS @ ~R$300
27.7%
28.7%
30.3%
31.0%
31.9%
2Q12 3Q12 4Q12 1Q13 2Q13
+25%
23 mln
users
78 %
on sales
10
1,031
1,291
2Q12 2Q13

11. Live TIM Update

12. Live TIM: Delivering on Plan
257
522
609
804
3Q12 4Q12 1Q13 2Q13
Network Evolution
(000 Addressable Households ; Source: TIM)
Sales per Quarter
(000 Clients; Source: TIM)
9.7
17.1
1Q13 2Q13
Customer Base
(000 Clients; Source: Anatel)
9.7
16.3
26.4
4Q12 1Q13 2Q13
82%
Net Share Live TIM SP+RJ
(UBB >34MB ; Source: Anatel)
Market Share SP+RJ
(UBB >34MB ; Source: Anatel)
38%
19%
13%
11%
10%
9%
Live TIM Oper. I Oper. II
Oper. III Oper. IV Outras
26%
69%
73%
3Q12 4Q12 1Q13
ITAQUERA
CASA VERDE
BUTANTÃ
JABAQUARA
PINHEIROS
MORUMBI
MOOCA
São Paulo
Totaling
26 Districts
in São Paulo
12

13. Financials

14. Financial Evolution Analysis
1,210
EBITDA
2Q12
Organic
EBITDA
2Q13
-15
ΔMkt
and Sales
ΔPers./G&A
and others
-53
ΔHandset
Margin
-39
ΔNetwork
and ITX
+35
ΔServ.
Revs
26.6% 25.3%
32.1%
31.5%
+125
+5.8% +8.3%-51.2% +1.1%+3.1%ΔYoY
1,263
+4.4%
563 879 879
3,984
4,109
4,065
Thousands
Revenue
2Q12
Δ HandsetΔ Fixed
Services
Organic
Revenue
2Q13
Δ Mobile
Services
+316-86+211
Service
Handset
4,547
-33%+5.7%ΔYoY
4,988 -44
One-off
Event
Reported
Revenue
2Q13
4,944
-31
Reported
EBITDA
2Q13
1,232
+1.8%
24.9%
31.1%
One-off
Event
14
+56%
+3.1%
+2.0%
EBITDA Margin
Service EBITDA Margin
Organic
EBIT
Net Financial
Result
Organic
Net Income
2Q13
Organic
Taxes and
Others
Depreciation/
Amortization
Organic
EBITDA
2Q13
From EBITDA to Net Income
(R$ Million)
ΔYoY
One-off
Event
Reported
Net Income
2Q13
+0.9% +8.5% -36% +5.6% +18% +12%
1,263 -671
592 -41 -145
406 -20 386
Net Revenue Evolution
(R$ Million, % YoY)
From EBITDA to EBITDA
(R$ Million)
+8.7%+10%

15. Strong Cash Position
Net Debt
(R$ Mln)
Capex
(R$ Mln, % YoY)
1,998
2,278
1,984
2Q11 2Q12 2Q13
+14% -13%
725
1,057
2Q11 2Q12 2Q13
+46%
+6%
→ 37% of debt in foreign currency (100%
hedged to R$).
→ Average debt maturity: ~ 3 years.
→ 0.39x net debt to Reported EBITDA (LTM).
→ Capex catch up during Q2.
→ 94% of Capex related to
infrastructure (ex-licenses).
→ No subsidy capitalization.
1,123
0.45x 0.47x 0.39xNet debt/
EBITDA
(LTM)
15

16. Conclusions

17. Strategic Priorities Check Point
• Improvements on all customer care indicators;
• FTTS Plan on track (569 new sites in Q2);
• 4G launch anticipated in SP and Curitiba,
good traction on 4G market share.;
• Final steps of LT Amazonas Fiber Line;
• Started rollout of small cells for JMJ in Rio.
• Strength of “Controle” strategy – hybrid pre/post;
• VAS over Mobile service: 22%;
• 3G adoption: WCDMA base grew by 21%;
• TIM Music launch: OTT music platform, more than
6mln songs downloaded already;
• Several actions for monetizing customer base with
new micro-packages.
• Launched company wide initiative on “Best Company
to Work For”;
• Total employee population grew to over 11,500, an
additional 574 new employees compared to 2Q12;
• Reached the number of 134 own stores, adding
several new TIM employees;
• Initiated a movement to reinforce and add new talent
on all teams, in particular on Network and Regional
structures.
• “Portas Abertas” campaign, web-site and mobile
app reinforcing commitment with quality and
transparency;
• Closure of the Dropped Calls accusation with
final report from Anatel releasing the company
from any misconduct;
• Proactive position in the sector in conversations
with Congress, Anatel, Ministry and State
Governments – position of collaboration and
transparency.
1Q13 2Q13
TIM Call Center
1Q13 2Q13
Anatel
2Q12 2Q13
+23%
2Q11 2Q12 2Q13
14%
39%
57%40%
40%
21%
46%
21% 22%
% Only Smartphone over Total Sales
Smartphone
Webphone
Essential
Network Complaints
-15%
-8%
Postpaid Voice Base
17

18. Conclusion & Outlook
Perspectives
18
 Business has shown good resilience,
even with slower economic growth;
 TIM led industry growth both in value
and volume;
 Recent polls showed good recovery in
net customer preference;
 Quality and Infrastructure KPIs already
showing improvements in many
fronts.
 Continuous offer innovation to help TIM
leadership in a lower growth / more
rational competitive environment;
 Data/VAS to continue leading growth; TIM
well positioned in handsets and micro
browsing;
 Fixed-to-mobile substitution still a trend;
 Focus on leveraging huge customer base;
 Postpaid mix and ARPU are important
improvements to business case.
Achievements
Solid fundamentals.
Track record built over 15 years.
Clear momentum for a continuation of growth path.
15th
Anniversary