TIM Participações S A : Meeting with investors (May 2020)

TIM Brasil

Company Presentation

May, 2020

Disclaimer

This presentation contains declarations that constitute forward looking statements regarding the intent, belief or current expectations of the customer base, estimates regarding future financial results and other aspects of the activities.

Analysts and investors are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this presentation. TIM Part undertakes no obligation to release publicly the results of any revisions to these forward looking statements.

Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected as a result of various factors.

Financial results are presented considering impacts from IFRS 16 adoption, except otherwise indicated.

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Agenda

About Us ……………………………………………………………………………………………...……4

Market Overview and TIM Positioning………………………………………………………………. 8

1Q20 Results ………………………………………………………………………………………….....16

Strategic Plan2020-22 ……………………………...……………………….................................... 29

Regulatory Updates …………………………………………………………………………..…....... 47

Appendix ………………………………...…………………………………………………………....... 51

Meeting with Investors | April 2020 TIM Participações - Investor Relations

ABOUT US

Meeting with Investors | April 2020 TIM Participações - Investor Relations

The Company in a nutshell

Presence in Brazil since 1998

Telecom Italia subsidiary (67% of shares)

ISE (Corporate Sustainability Index) member for 12 years

~R$ 30 billion of Enterprise Value

Introduced the first plan focus on data for smartphones

Best and Wider 4G Coverage

>100k km of fiber optical network throughout the country

Strong legacy in prepaid

Solid Execution in the 2019

	Net Serv Rev
	R$ 16.6B
	+2.4% YoY
EBITDA	Operating
MARGIN1	FCF¹
46.7%	R$ 2.1B
	Live Revs
	+30.6%
	YoY
EBITDA1 -	EBITDA1
CAPEX	R$ 8.1B
25%
on net
revenues

(1) Normalized.

Solid results with sustainable growth above market average

EBITDA							EBITDA Margin
(R$ MM)				(%)
				+10.3%		+5.8%
+13.7%		6,943
		6,563
				5,949
5,230						39.8%
									38.5%
									36.6%
									33.5%

2016	2017	2018	2019	2016	2017	2018	2019

EBITDA - CAPEX				Net Service Revenues
(R$ MM)					( YoY)
			2,662	2,948				5.1%	4.7%
					1.7%			2,4%	TIM
						2.0%
						0.5%
									P3
									1,9%
		1,801
					-0.6%	-0.3%	-0.9%	0,1%	P2
728					-4.3%
						-4.3%	-6.5%	-7.1%		P4
									-8,7%
2016	2017	2018	2019		2016	2017	2018	2019
		(1) Normalized EBITDA and Margin; (2) 2016-18 KPIs = on pro-forma basis; (3) 2019 KPIs = considering impacts from IFRS 15/9 adoption;	Meeting with Investors | April 2020
		(4) P3 = considering impacts from IFRS 16 adoption in 2019; (5) Annually updated in March.				TIM Participações - Investor Relations

Shareholders' structure and highest level of corporate governance

SHAREHOLDERS' STRUCTURE

Telecom Italia S.p.A.

100%

Telecom Italia

Finance S.A.

100%

TIM Brasil Serv. E	Minority
Part. S.A.

67% 33%

TIM Participações S.A.

100%

TIM S.A.

Shares (% of Free Float)

30%	Brazil
34%
	USA
	Rest of World
	36%

UNIQUE TELCO COMPANY LISTED ON

THE NOVO MERCADO

• 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
• Member of ISE for 12 years

Corporate Governance Form

10%

8%		Adopted
	vs 65% on	Partially adopted
	average2
	82%	Not adopted

COMMITTEES TO REINFORCE AND GUARANTEE SOLID CORPORATE GOVERNANCE

General Assembly

10 members

(4 independents) 3 members

Board of Directors	Fiscal Council
		Statutory Audit	3 members
			Committee	(3 independents)
		Compensation Board	3 members
		Control and Risk Board	5 members
		(2 independents)
7 members

Statutory Board of

Officers

• 40% of independent members
• 30% of female representation: >3x B3 Novo Mercado average

(1) Share position as of Mar-2020; (2) According to EY 2018 report.

Meeting with Investors | April 2020 TIM Participações - Investor Relations

MARKET OVERVIEW AND TIM POSITIONING

Meeting with Investors | April 2020 TIM Participações - Investor Relations

New consumer habits reinforce data service as essential, especially over mobile network

Social network penetration					Internet users
(% population)				Time spent per day	3%
(Global ranking position)								Only Wi-Fi
			2º	Internet - 9h29m
				24%
2º	3º	2º	2º
2º	Social Network - 3h34m		Only mobile
					73%
66%	59%						10%	Both
		37%	27%				63%
				6%				Don't know
							Internet users by device
Paid streaming and car app users					3%
(% of smartphone users)
					+24 p.p.			Only computer
45%					64%	74%	40%
		26%		50%				Only mobile
						56%	96%
								Both
							+7 p.p
Movies and series		Music		2017	2018	Mar-20	A/A

Source: We are Social, Mobile Time (Opinion Box), Statista, CETIC.

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Traditional services have been losing relevance in this new framework and internet has been gaining prominence

Fixed Voice Penetration

(% of households)

33.5 MM

lines

69% 69% 67% 64% 61% 58% 53%

46%

2012 2013 2014 2015 2016 2017 2018 2019

Pay TV Penetration

(% of households)

							15.8 MM
							accesses
	25%	28%	29%	28%	27%	26%	25%	22%
21%
2011	2012	2013	2014	2015	2016	2017	2018	2019

Mobile Internet Users2	Fixed Broadband Penetration
(% of ≥ 10 years population)	(% of households)

		137 MM							32.6 MM
		people								lines
66%	71%	74%
56%
47%					34%	36%	37%	42%	44%	45%
31%			27%	31%

2012

2013

2014

2015

2016

2017

2018

2019

2012

2013

2014

2015

2016

2017

2018

2019

(1) Number of households in 2019 estimated by TIM; (2) CETIC: annually updated in November.

Fixed Broadband Connections Speed

		12%			< 2 Mbps
	41%				2 - 12
			25%
					12 - 34
		23%			> 34
		Meeting with Investors | April 2020
		TIM Participações - Investor Relations

Change in market structure combined with new consumption habits resulted in a transformation in the base profile

Mobile Penetration				227 MM
						SIM Cards
131%	135%	138%	126%	118%	115%
	110%	97%
199	201	203	204	206	208	209	210
2012	2013	2014	2015	2016	2017	2018	2019
	Population (MM)		Penetration

Penetration is decreasing due to the reduction of total

Unique User Penetration			146 MM
						people
		79%	80%	79%	80%	80%	79%
	76%
74%
124	130	137	139	138	142	144	146
2012	2013	2014	2015	2016	2017	2018	2019
	Unique user >10 years (MM)		Penetration

Mobile Base per Segment

(MM)

211	212	213	185

165	149	130
	117

SIM cards: weakening of the "community effect" due to

the decrease in ITX tariff (off-net reduction) and

dissemination of communication apps.

MTR Evolution

(R$ / min)

0,36	0,32
	0,24
		0,16
			0,10
				0,06	0,03	0,02
2012	2013	2014	2015	2016	2017	2018	2019

The maintenance of a high interconnection tariff pushed the "community effect (on-net)" through the possession of multiple SIM cards.

Mobile market has been experiencing organic growth

in total unique users.

SIM Cards per Unique User

(Unit)

2,00 1,96 1,94

1,73	1,64	1,54
	1,44
		1,37

2012 2013 2014 2015 2016 2017 2018 2019

SIM consolidation despite the growing number of

mobile users.

44 51 58 62 67

					73	80	85
2012	2013	2014	2015	2016	2017	2018	2019

Prepaid

Human Postpaid

Postpaid base already represents ~50% of unique users, besides that >60 MM Brazilians are in the credit bureau blacklist.

	Meeting with Investors | April 2020
(1) Annually updated.	TIM Participações - Investor Relations

Market revenue dynamic indicates mobile growth, and highlights TIM's evolution

Market | Total Services Net Revenues
(R$ MM)		-1.0%
		CAGR
119,3	118,5	116,9	113,9	113,1
49%	48%	46%	47%	45%
51%	52%	54%	53%	55%
2016	2017	2018	2018	2019
	Mobile	Fixed

Total Services Net Revenues Share
(%)
TIM	12,3	13,1	13,9	14,2	14,7
Vivo	34,6	35,6	35,7	36,5	36,8
Claro	29,3	29,4	30,0	30,3	31,1
Nextel
2,8	2,3	1,9
Oi	20,9	19,7	18,5	19,0	17,5
	2016	2017	2018	2018	2019

Market | Mobile Service Net Revenues
(R$ MM)		+1.7%
		CAGR
	61,8	62,8		61,7
		59,9
60,7
2016	2017	2018	2018	2019

Mobile Service Net Revenue Share
(%)
TIM	23,0	23,8	24,4	25,6	25,4
Vivo	40,1	41,1	40,9	42,5	42,1
Claro	17,6	17,8	19,2	19,3	20,7
Nextel	5,5	4,4
3,5		11,9
Oi	13,8	13,0	12,0	12,6
	2016	2017	2018	2018	2019

1. 2016-2018comparison on pro-forma basis; (2) 2019 vs 2018 disconsidering Nextel figures and excluding impacts from IFRS 16 adoption.

Meeting with Investors | April 2020 TIM Participações - Investor Relations

TIM is well positioned to attend the new demand, with no legacy to defend

Fixed Line Base			Market
		-6.9%	+15.7%
(MM)
			CAGR	CAGR
41,2	39,6
		37,5
Fixed-mobile		33,5	32,6
substitution
2016	2017	2018	2019	1Q20
Pay-TV Base			Market
		-6.0%
(MM)
			CAGR
18,8	18,1
	17,5
Traditional-OTT		15,8	15,4
ssubstitution
2016	2017	2018	2019	1Q20

Human Postpaid Base (ex-M2M)		Market
	+8.3%	+9.4%
(MM)
			CAGR	CAGR
			85,2	86,4
		79,8
	72,7
66,6
2016	2017	2018	2019	1Q20
Broadband Base			Market
		+6.5%	+22.0%
(MM)
			CAGR	CAGR
			33,0	33,0
		31,2
	28,9
26,9
2016	2017	2018	2019	1Q20

	Meeting with Investors | April 2020
Source: Anatel.	TIM Participações - Investor Relations

Customer base transformation process, driven by pre-postpaid migration, supported an evolution at the top of the pyramid

TIM Base Mix
2%	3%	4%	7%	7%
21%	27%
	32%			+1.1 p.p.
		33%	34%
					YoY
77%	70%				-1.6 p.p
	64%	61%
		59%
			YoY
2016	2017	2018	2019	1Q20
Prepaid		Human Postpaid		M2M

Mobile Service Revenue Mix
6%	6%	7%	8%	7%
45%	52%
	59%
		61%	63%	+1.3 p.p.
					YoY
49%	42%
	34%			-1.0 p.p.
		31%	30%
					YoY
2016	2017	2018	2019	1Q20
	Prepaid	Postpaid		Other

(1) Revenues figures considering IFRS 15 impacts from 2018.

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Complete Portfolio to Address Customer Desires

		POSTPAID		TIM Black	TIM Black Família
			TIM Controle		Newspaper + Magazines
		TIM Pré Top		Newspaper + Magazines
						+ Music
					Newspaper + Magazines +	+ Music + 1x GB to watch	+ Netflix monthly fee
					Netflix, Youtube, E+, Looke,
	Entertainment	Newspaper + Magazines			Protection	included
Mobile			and Cartoon Network
Portfolio	Social	WhatsApp + Facebook + Messenger +		Facebook + Instagram			Instagram + WhatsApp +
(B2C)		all included
Twitter		+ Twitter (+ R$ 15)	Facebook +Twitter
	Communication						≥ 10GB + unlimited calls	≥ 60 GB + unlimited calls
	≥ 2GB + unlimited calls		≥ 4GB + unlimited calls	+ shared benefits
	Services		+ GB bonus for portability
						+ international roaming
		≥R$ 20.00/two weeks		≥R$ 49.99/mo	≥R$ 119.99/mo	≥R$ 269.99/mo

		FIBER		Ultra Fibra
		Internet (WTTx)	Ultra
					speed from
			speed from
UBB		allowance of				100 mbps to 2 gbps
Plans		40 mbps to 60 mbps
Portfolio	30 GB to 80 GB
	Value-Added	Protection + Modem		+ VoD Partnerships		+ Content (VoD, TIM Banca, Ensina) +
	Services			Power Wi-Fi

Meeting with Investors | April 2020 TIM Participações - Investor Relations

1Q20 RESULTS

Operating Costs normalized by adjustments to the sale-leaseback contract of towers (+R$ 2.6 million in 1Q20 and +R$ 1.5 million in 1Q19).

Meeting with Investors | April 2020 TIM Participações - Investor Relations

1Q20 Highlights: Solid Execution According to our Plan Until the Impact

of COVID-19

Net Service Revenues
(R$ bln)			Adding back
	+1.7%		2 weeks of COVID-19
			impact in prepaid
			would put revenues
			on track with
4,0	4,1	4,1	original plan.
		~3.0%

Google Agreement for big data virtualization

New ~500k

1Q19

1Q20

COVID-19 impact

1Q20e

partnership

TIM Black Família customer base

Normalized EBITDA and Margin1

(R$ bln)

	42,6%	45,7%
+4.5% ex-

IFRS 16.

+8.0%

1,81,9

Cost discipline to ensure deliver

Reinforcing TIM's commitment, top line impacts will be offset by solid execution of costs control and the efficiency delivered on multiple fronts

+29% YoY

TIM Live

Revenues

100%

4G Coverage in PR and SC

1Q191Q20

(1) Normalized for the effects detailed in slide 2.	TIM Participações - Investor Relations	17
Results Presentation

Ongoing Transition From Volume to Value, Although Short-Term Headwinds Bringing Additional Challenges

Mobile ARPU
Total
(R$ / mo)
+4.8%
22,8	23,9
1Q19	1Q20
Human Postpaid1
(R$ / mo)
+4.3%
42,6	44,5
1Q19	1Q20
Prepaid
(R$ / mo)
+4.6%	12,1
11,6
1Q19	1Q20

Better value proposition and improved	Additional incentives for relationship
commitment adding more resilience	maintenance and to encourage digital shift
TIM Black Família Base	Actions in accordance
('000)
	with customers' historic
~500k	commitment avoiding
	churn and future costs of
	acquisition.

2Q19 3Q19 4Q19 1Q20

Prepaid Base Mix		Anatel's Satisfaction
		Survey (0-10)
-16 p.p.
YoY						7,31
	TOP	7,06	7,12	7,15
12%	Smart
72%	Others
		Offer and	Operation
		Acquisition
					2018	2019

(1) Ex-M2M.	TIM Participações - Investor Relations	18
Results Presentation

TIM Live Consistency: Another Quarter of Strong Delivery

KPIs evolution on track

ARPU				Customer base			TIM Live Net Revenues
(R$/mo)				('000)		+20%		(R$ mln)
			+6.1%	84,5
						584		+29%
79,6
					486
11%
							32%
						≥100 mbps	11%
89%		68%
						<100 mbps	89%	68%		112	144
	1Q19		1Q20		1Q19	1Q20		1Q19	1Q20

Network rollout increasing potential market

New cluster launched:

New portfolio: 200 mbps with twice the

TIM Live Coverage1

Accumulated New OLTs

Betim and Contagem

speed and entertainment content

(# cities)

(# of units)

(MG)

+93%

27

14

25

FTTH

12

FTTC

5

5

1Q19

Apr-20

Jan-19Apr-19Jul-19Oct-19Jan-20

(1) Excludes overlapping areas.

TIM Participações - Investor Relations

19

Results Presentation

Leveraging on our Robust Infrastructure To Deliver High Quality Experience

Urban Population Coverage

100% of 4G coverage in PR,

Network designed for all types of use, prioritizing

SC and ES, join SP and RJ.

quality and connection stability

(%)

4G

3.5k cities

4.5G

1.2k cities

700 MHz

2.4k cities

Emerging

apps are enjoying a

(+6% YoY)

(+47% YoY)

(+66% YoY)

consistent 5-year network evolution.

94%

68%

82%

Refarming 2.5k cities

VoLTE

NB-IoT

Lowest

3.5k cities

3.3k cities

latency

(+2% YoY)

(+28% YoY)

(all in ≥3Q19)

57ms

77%

93%

92%

Up to 4x speed

required for

USER

video streaming

usage

Better voice quality and network

EXPERIENCE

12.4 mbps download +

efficiency during increased demand.

CENTRIC1

5.1 mbps upload

Backbone + Backhaul

Households Covered

('000 Km)

(mln)

92

+11.2%

102

Greatest 4G

+95%

3.5

3.6

availability

2.5

86% of time on

1.3

4G

1Q19

1Q20

FTTH

FTTC

(1) According to Tecnoblog News from 16/Jan.

TIM Participações - Investor Relations

20

Results Presentation

Seeking the Future With Beyond Core and Smart Capex Initiatives

Mobile Ad Revenues

(R$ mln)

+73%

1Q191Q20

Financial Services

C6 Partnership

• First telco-bank partnership to develop joint solutions
• More for more: increase attractiveness on client acquisition within a differentiated onboarding experience
• Offer to be launched later this year
• Hybrid partnership model combining fees and equity

Mobile Advertising

TIM Ads trial campaign for

prepaid customers: data package reward for video view.

Smart Capex

Google Cloud Agreement

01	Big data virtualization bringing disruptive
	efficiency (Analytics, Machine Learning) and
	opening future commercial opportunities.

	Network Sharing Agreement
02	with Vivo
Anatel's and CADE's approval in April. 2G
	network in 50 cities will be shared as initial
	effort.

TIM Live Project

03 Starting first steps to approach and select partners at the market: NDAs being signed.

TIM Participações - Investor Relations	21
Results Presentation

Digital Transformation is Helping to Deliver Efficiencies Today And To Open New Opportunities for Tomorrow

Digital channels are boosting savings:

Normalized Opex Breakdown

(R$ mln)

(YoY)

(YoY)

(YoY)

Personnel;

+4.7%	261	Selling & Mkt;
YoY
	802 -10.2% YoY
Process; 251		R$ 2,289
+7.1% YoY

-4.9%

YoY

Bad debt; 189

+9.3% YoY

Traffic; 627

-4.7% YoY	COGS; 159
	-20.1% YoY

• Volume driven costs positively impacted by social

distance measures

• Limited exposure to FX volatility: low single digit of our

Opex (ex-COGS)

+19%	-25%
Meu TIM app	# Human
unique users	interactions
(YoY)	(YoY)
+12%	+12%
E-Bills	E-Paymentamount
(Penetration of 66%)	(Penetration of 23%)

Collection Curve (% of total billed)

		+1.6 p.p.
		+1.9 p.p.
Jan-19	May-19	Sep-19	Jan-20
	61-90 days	91-120 days

+32%	20%
Pure Postpaid	Penetration of
E-Sales	Postpaid E-Sales
	(YoY)
39%	+33%
Penetration of E-	Recharges
Recharges	via app

• Improved collection curve reflect a positive trend in bad debt, which picked up in 3Q19
• Opex ex-bad debt would have decreased 6.0% YoY

(1) OPEX normalized for the effects detailed in slide 2.	TIM Participações - Investor Relations	22
Results Presentation

Resilient Revenue With Strong EBITDA and Consistent Margin Evolution

Net Services Revenues Breakdown

EBITDA Margin (Pro-forma1)

(R$ mln)

(%)

33

-11

4.091

+7.5 p.p.

4.024

47

-2

35,5%

36,5%

37,6%

+1.7%

32,0%

30,2%

1Q19

Mobile Client

ITX + Other TIM Live

Other Fixed

1Q20

Generated

Mobile

1Q16

1Q17

1Q18

1Q19

1Q20

Postpaid: +3.7% YoY

Prepaid: -4.5% YoY

Normalized EBITDA & Margin2

(R$ mln)

	42,6%	45,7%
+4.5% ex-
	1.926
IFRS 16.
		+8.0%
	1.784
	1Q19	1Q20

Normalized EBITDA2 - CAPEX

(R$ mln)

% Net

27%

24%

Revenues

1.134 -9.9%

1.022

1Q191Q20

Reduction explained by lower Capex level in 1Q19 due to seasonal fluctuation between quarters. 1Q20 Capex in

accordance with our plan.

+39.1% 904

650

1Q191Q20

17% of

2019 Capex

(1) Pro-forma excludes the effects of the adoption of IFRS 9, 15 and 16; (2) EBITDA normalized for the effects detailed in slide 2.	TIM Participações - Investor Relations	23
Results Presentation

COVID-19 Containment Measures Were Implemented on a Regional Basis With a Nationwide Economic Impact

Brazil comparison with other countries

Economic impacts

GDP 2020 weekly forecasts

(YoY)

Coronavirus cases evolution1

(Day 1 set when 50 cases were reached)

3.000.000

300.000

30.000

Social restriction started on

March 17th

Major cities as São Paulo and

Rio de Janeiro started in the

earlier days with others following.

2,0%

					Optimistic
					Scenario: -1.1%
					Base Scenario:
				-3,8%	-3.8%
				Pessimistic
Sep-19	Nov-19	Jan-20	Mar-20		Scenario: -7.0%

								Brazil
3.000								China
								France
300								Germany
							Italy
								South Korea
30								Spain
1	11	21	31	41	51	61	71	USA

The estimated percentage of reported cases in

Brazil is between 9-14%2.

Revised growth projections due to outbreak, with

a wide spread between estimates.

Lowest	-28%
consumer	drop in retail
sales4
confidence ever3

(1) ECDC: data as reported by national authorities (May 3rd); (2) BCG Live Session #3 (April 3rd); (3) FGV's Consumer Confidence Index showed the lowest	TIM Participações - Investor Relations	24
level of the 15-year historical series in April: 58,2 on a scale of 0-200(-22 p.p. MoM); (4) ICVA ("Índice Cielo do Varejo Ampliado") from March 1st to April 11th.	Results Presentation

Main Measures to Quickly Respond and Care for our People, Clients and Society

EMPLOYEES

CUSTOMERS

SOCIETY

Social isolation, people management, and

Service guarantee and maintenance of

Supporting the fight against COVID-19

customer relationship, prioritizing digital

maintenance of work conditions

99.9% of employees on remote work since Mar 20

1

2

Network Adjustments

Strengthening coverage in residential, hospitals and health institutions areas

Digital First

Big Data and Analytics

• First mover with city of Rio de Janeiro partnership
• First joint effort between the 4 operators as data providers for the market

100% of stores closed since Mar 31

3

1st to convert internal call center to remote work

Reinforcing e-Sales & e-Caring channels: Meu TIM, Cognitive IVR and digital service channels such as SMS, Chat TIM, WhatsApp, and digital recharges

Maintaining the Relationship

• More service in exchange for customer engagement continuity
• Temporary adjustments to collection rules and payment terms

Sectorial agreement with OTTs to guarantee service availability

Service prioritization to support the fight - the "Caixa Econômica Federal" case

• 48h for a service implementation (111 code) vs
  30 days usually
• Quick response to apply zero rating to "Auxílio Emergencial" app (government aid claims)

TIM Participações - Investor Relations	25
Results Presentation

Mixed Impacts Coming From the Pandemic. So Far, Negative Effects Were Mostly Concentrated in Prepaid, While Postpaid and Live Are Controlled

PREPAID	Mobile Services Revenue Mix
Revenue mix							Others
shift in the past
	49%				Postpaid
				63%
years helped
reduce the size	45%				Prepaid	30%
of the impact.
1Q17	3Q17	1Q18	3Q18	1Q19	3Q19	1Q20

Recharges are now at mid-teen drop, after

closing March at -20%. This was already a deceleration versus -25% in the early days of the quarantine.

Weekly

Prepaid

Recharges

(R$ mln; EOP)

7-Mar21-Mar4-Apr18-Apr

Digital recharge growing +35% YoY

• Digital experience today building behavior of tomorrow
• Lower commissioning cost: digital channels 2-3 times less costly than traditional ones

POSTPAID AND LIVE

… and also fewer gross	Normal commercial	Bad debt remains a risk, but
adds	activity at Fixed segment	for 1Q no major impact

Lower mobile

Human Postpaid Churn

B2C Postpaid Gross Adds

TIM Live Gross Adds

Bad debt

commercial

(voluntary; ex-M2M)

(R$ mln)

activity

201

188

187

189

means lower

173

voluntary

churn…

1Q19 2Q19 3Q19 4Q19 1Q20

1Q19 2Q19 3Q19 4Q19 1Q20

Mar-19Jul-19Nov-19Mar-20

1Q19 2Q19 3Q19 4Q19 1Q20

OTHER EFFECTS

Digital	Meu TIM app	Volume driven	B2B services for	Network
caring going	costs are	connectivity and
unique users	resilience
up with lower	positively	authentication are
+19%	(traffic)1
seeing increased
costs	impacted
	YoY		demand

(1) March vs January and February monthly average.

Mobile Fixed Mobile

Data Data Voice

+6% +25% +15%

MoM MoM MoM

TIM Participações - Investor Relations	26
Results Presentation

Solid Balance Sheet With Robust Liquidity Position

Strong Liquidity with Additional Credit Lines

February 2020

• (-)R$ 621 mln (BNDES financing amortization) with a cost of debt of approx. 7% p.y.
• (+) R$ 800 mln issued (total amount of two loans from different banks with a cost of debt of approx. 4% p.y. each)

April 2020

• (+) In face of the COVID-19 scenario, R$ 574 mln was contracted due in April 2021 (cost of debt of approx. 6% p.y.)

Credit lines available ("Stand-by facilities")

• (+) R$ 1.5 bln and R$ 752 mln from BNDES and BNB, respectively, with no commitment fee

FISTEL + Condecine payments postponement

• Brazilian Entities authorized the postponement of the payment of those regulatory taxes providing an important relieve in the short term: R$ 789 mln to be paid starting from Aug/2020

Cash Position & Amortization Schedule2

(R$ mln)

Bank Loans Amortization Schedule

	2.252			Cost of Debt
Stand-by			4.23% p.y.
facilities
Cash raised	574
(financing)3
April/20 CF +	373	1.104
Others3
Cash on	1.630		574
		59	122
hand 1Q20
		858
	Liquidity	2020	2021	2022	2023 foward

Gross Debt 1Q202		Net Financial Position1
(R$ mln)		(R$ mln)
	Financing
	2.143	8.526
		7.477

8.013

Leases

1Q19

1Q20

(1) Including net lease additions of R$ 1,340 mln related to the adoption of IFRS 16; (2) Post-hedge position; (3) On pro-forma basis, as of April 2020.	TIM Participações - Investor Relations	27
Results Presentation

Adjusting our Short-Term Approach and Ready to Face a Challenging Scenario Ahead

FROM VOLUME TO VALUE

• Offer and customer management consistency
• Exploring opportunities of the new context

DISRUPTIVE EFFICIENCY AND COSTS DISCIPLINE

• Bad debt started to show improvements
• Digitalization accelerated by social transformation
• New smart capex initiatives
• Make or buy initiatives to be announced next quarter
• Strict Capex control in order to maintain profitability guidance

NEW SOURCES OF REVENUES

• New partnership with C6
• Possibility of Google Cloud usage for corporate portfolio expansion

INORGANIC OPPORTUNITIES

• Advancing with Oi mobile assets Due Diligence process
• TIM Live further expansion: ongoing process to find a strategic partner

Guidance: 2020-2022 Plan

• Plan assumptions (e.g. GDP growth of 2% in 2020) no longer represent current economy situation + The duration of the pandemic is not known => More clarity on impacts from COVID 19 are expected by the end of 2Q;
• Commitment to Free Cash Flow:

EBITDA - Capex on Revenues guidance confirmed: >20% in 2020 (Mid-singledigit YoY for EBITDA-Capex)

TIM Participações - Investor Relations	28
Results Presentation

STRATEGIC PLAN 2020-22

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Strategic Pillars

It is Time to Move Forward: Evolution Plan to Further Develop Initiatives Already in Place. Transformation Plan to Reshape Company's Skills Over the Next 3 Years

EVOLVE

TRANSFORM

• Move from volume to value to sustain mobile business growth
• Grow on broadband with financial discipline

• New operating model to address current and future challenges
• Additional growth through adjacent markets

1. INFRASTRUCTURE

2. DISRUPTIVE EFFICIENCY

3. MOBILE (PREPAID, POSTPAID AND B2B)

4.UBB (B2C, B2B)

5. NEW REVENUE SOURCES

6. ESG

Meeting with Investors | April 2020	30
TIM Participações - Investor Relations

Infrastructure Summary

Act Today to Be Ready for the Future

IT to the next level in 18-24 months

Big data	NBA	Cognitive
evolution	roll-out	systems

1

Benefits:

Customers'	Time-to-
market
Integrated view

Application and	Catalogue
architecture review	creation

Network 5 key pillars

Data	5G	IoT
Growth
ready
New		Fixed
initiatives		Broadband

New capabilities

Fixed

Wireless

Access

New IoT businesses opportunities

Automation of processes and efficiency increase

Decommissioning Savings

Densification and innovative solutions

Convergent architecture

Evolution	Transformation	Meeting with Investors | April 2020	31
TIM Participações - Investor Relations

Network Efficiency

Mobile Shift to 4G Network Still in Progress as a Way to Improve Quality and Reduce Cost to Serve

1

4G COVERAGE (# cities)

					>4k Total		TRAFFIC MIX EVOLUTION
3.272	3.520			700 / 850
					MHz
		2.455		Better indoor
			experience.
1.426
2018	2019	2020	2021	2022
								4G
								76%	75%

ACCESS NETWORK ('000 SITES)

				~22
17	19				2G / 3G

92%

2018

2019

2020

2021

2022

2018

2019

2020

2021

2022

Meeting with Investors | April 2020

TIM Participações - Investor Relations

32

Network Support and Acceleration	1

Fiber Expansion to Support Business Continuity and Ultrabroadband Acceleration

FTTH (# cities)							HOME PASSED (mln)
							~70									~5.5
UBB
			23									2,3
	11								1,1
	2018	2019		2020	2021	2022			2018	2019		2020	2021	2022

FTTCity (# cities)

BACKBONE + BACKHAUL ('000 km)

Transport

Network

~1.5

>130

101

90

821

601

2018	2019	2020	2021	2022	2018	2019	2020	2021	2022
							Meeting with Investors | April 2020		33
							TIM Participações - Investor Relations

Holistic Efficiency Approach

Disruptive Efficiency to Address Industry Challenges

2

	Process efficiency		Digital & Automation
	Gaps as opportunities:				Brazilians are already
	Close gaps and surpass the			digital: unique environment
	benchmark.			opportunity.

Make vs buy

Productivity: focus on the core.

Smart CAPEX

Being competitive: increase return on investment by focusing it where we can apply differentiation.

• Bad Debt (e.g. new credit models, collections systems improvement)
• Legal processes (e.g.
  predictive models to reduce JEC expenses - special court for small cases)

• Self-Provisioning(e.g.,

Naked SIM)

• Self-caring:Cognitive

IVR and WhatsApp services (e.g., second invoice, balance check and etc.)

• Self-healing(e.g.,

technical resolution for broadband services)

• Administrative

processes (e.g. ground leasing)

• Pay-rollmanagement IT Planning & Development

• Industrial

agreements (e.g. VIVO

MoU)

• Innovative

Technologies (Massive

MIMO)

• TIM Live's
  Transformation with partnership
• Cloudification (storage

as commodity)

Meeting with Investors | April 2020	34
TIM Participações - Investor Relations

Mobile: From Volume to Value	3

Innovation Positioning with Unique Assets to Leverage

Convergence

Premium price

P2

P3

2022

2019

P4 2014

Low price

• Ensuring execution and

customer satisfaction to

succeed.

Innovation

4G: Widest Coverage and Availability.

Regional Leadership: Solid presence in NorthEast and Paraná/Santa Catarina.

Financial Discipline: Positive performance over the last years, leanest Opex structure, capability of cash flow generation.

Meeting with Investors | April 2020	35
TIM Participações - Investor Relations

Mobile: From Volume to Value	3

Move from volume to value to sustain mobile business growth, leveraging CEX

Residual growth: churn management becomes more important

MOBILE UNIQUE USERS (mln)						POSTPAID CHURN RATE (% p.m.)
										3,5%	3,8%
				139	146				Reduce
	104							churn
												-0.6 p.p. until 2022

→ Eliminate pain points: discount

management

→ Lock in high propensity customers

→ Improve service level

Playing by opportunity, meeting clients true needs

CUSTOMER BASE MIX (mln)

167	185		Attack all
	117	Prepaid	segments
30	56
82	Postpaid

TIM MOBILE CUSTOMER BASE BY SEGMENT (mln)

36 33

20	21	Postpaid >45% in 2022

→ Prepaid: acceleration w/ regional +

smart promo, channel management

→ Postpaid: brand positioning, and

outstanding customer service level

→ SMB: consumerization

Increasing "share of wallet"

SIM PER UNIQUE USERS1 (mln)

1,9	1,7	1,4

2010

2015

2020

2022

ARPU increase

TIM MOBILE ARPU (R$/month)

23,7

22,5

CAGR 19-22:

low to mid single digit

2018

2020

2022

• Unlock upselling opportunities
• Price with "more for more" approach
• Boost big data, data analytics, NBA capabilities

Meeting with Investors | April 2020	36
TIM Participações - Investor Relations

Broadband: Acceleration	4

Broadband Revenues will be the Lever for Fixed Business Growth

FROM EVOLUTION…						+15	+42%
FIXED NET REVENUES (R$)				FTTx CUSTOMER BASE (mln)
							cities	households
							covered
		TIM Live >30%
		CAGR 19-22
								FTTH
TIM Live
Others								FTTC
2018	2019	2020	2021	2022	2018	2019	2020	2021	2022

Footprint expansion and operational improvement

Cherry picking deployment, Reduce early churn, Improve care and self-care, Reliable bill to cash processes

Differentiation: UBB + Content

OTT content friendly approach, Wi-Fi experience

Meeting with Investors | April 2020	37
TIM Participações - Investor Relations

Broadband: Acceleration

Smart Capex to Ensure Acceleration

BRAZIL'S BROADBAND MARKET

BROADBAND AND FIBER PENETRATION (on HH)

			FIBER PENETRATION TOP 5
			São Paulo	24%
			Santa Catarina	23%
			Minas Gerais	23%
Broadband				Paraná	21%
Penetration				Ceará	19%
0% - 20%
			Brasil	16%
20% - 40%
40% - 60%
> 60%
					CAGR
		29	31	33	+7%
	27
			+79%
	3	6	10
Fiber	2
CUSTOMER BASE BY
TECHONOLOGY (mln) Others	25	26	26	23	-3%
	2016	2017	2018	2019

4

…TO TRANSFORMATION

Strategic Partnership

Expanding TIM Live's services with the right balance between Sales and Capex, unlocking additional value of this asset

Create in partnership a neutral fiber infrastructure asset in Brazil

Market sound process with an advisor to find the right partner out of the telecom space

(1) Anatel (dec-19), internal analysis.

Meeting with Investors | April 2020	38
TIM Participações - Investor Relations

					Beyond Core: Leveraging our Assets with Strategic Partnerships	5
					Exploring B2B New Services
						IoT IN LATIN AMERICA			DEVELOP AT SCALE AND MONETIZE IOT
									VERTICALS

IoT MARKET SIZE1

Connections	6,0				Agriculture		4G TIM no Campo	Connected Car
			To	~750		agribusiness solutions based	in-car connectivity and
5,0
								Sole operator in the	First mover: agreement with
								initiative developing	car manufacturer to provide
					(2022)				on IoT.		automation.
	4,0
	3,0			Transport	From					>3	k
				360		~5
	2,0		To		(2018)			mln	cities with NB-IoT
			~400
			(2022)					acres with 4G
										major partners in agro
	1,0		From	184
			(2018)				st
	-							place in 4G coverage
							1 in Brazil
	0%	10%	20%	30%	40%	50%	60%
					Share of IoT Revenues
	= USD Revenues (mln)

(1) Global Data Market Opportunity Forecasts to 2023: Global IoT.

Meeting with Investors | April 2020	39
TIM Participações - Investor Relations

Beyond Core: Leveraging our Assets with Strategic Partnerships

The Mobile Advertising Opportunity

5

VALUE

POOL

5%

50%	DMP

1

2

3

4

5

Brands

Ad agency

Demand side

Platform

Connection mechanisms

Supply side

Platform

R$ 24.2 bln

digital ad market in 20221

R$ 19 bln

delivered through mobile

>2x upside

for TIM

in 2022

45%	6 Publisher

TIM Ads addressable environment

(1) Latin America Digital Ad Spending 2019 eMarketer, internal analysis.

Meeting with Investors | April 2020	40
TIM Participações - Investor Relations

Beyond Core: Leveraging our Assets with Strategic Partnerships

TIM's Positioning as Publisher and Ad-Tech Player

As is

To be

5

TIM AS PUBLISHER

Exploring owned touch-points (digital and physical) to advertise 3rd parties.

TIM AS AD TECH PLAYER

Leveraging on customer data and ownership to enhance advertisers knowledge.

MOBILE ADS REVENUE (R$ mln)

Opportunistic approach

• SMS to any 3rd parties
• ~R$ 190 mln already generated in mobile ads products

Close the gap

• Exploring Captive Portal interactions to display 3rd parties ads
• New trial contracts signed in the past 2 months
• Fine-tuningand new products development

Becoming a front runner

• Data monetization: enhancing 3rd parties campaigns assertiveness with customer knowledge
• Operators cooperation
• Aligned with LGPD for scoring and new economy

2019 ~190

+35%

2020

+70%

2022

Meeting with Investors | April 2020	41
TIM Participações - Investor Relations

Beyond Core: Leveraging our Assets with Strategic Partnerships	5

FinTech's Playing Field is Moving Fast and We Have a Unique Window of Opportunity

FINANCIAL SERVICES IN BRAZIL

OWNERSHIP PENETRATION OF… (% population)

EXPLORING PARTNERSHIP OPPORTUNITIES

1	HIGH-END
Convenience and
	simplicity.

2	LOW-END
Access to banking
	services.

Mobile Unique

Users79%

2

1	59%
Debit Card

1	27%
Credit Card

mln

45 Brazilians have no bank account3

R$ 817bln

annual transactions of unbanked population in Brazilian economy3

• Full bank offer
• Commercial partnership
• Value generated by commissions in fees + equity

First mover in telecom +

• Symbiotic partnership (JV like)
• Value generated by profit sharing

83%

top 5 banks' market share

EOP 2020

BCB expects to launch its instant payment system: PIX.

digital banking services.

Exclusive agreement with

Bank C6.

Partners short list under

analysis.

(1) Population > 15 years old (Global Findex Database 2017); (2) Population > 10 years old; (3) Population > 16 years old (Locomotiva).

Meeting with Investors | April 2020	42
TIM Participações - Investor Relations

Beyond Core: Leveraging our Assets with Strategic Partnerships	5

Confirming Innovation Leadership in Telecom Through a Hybrid High-end Partnership with C6 Bank

DESCRIPTION	TIM	C6 BANK
Role	Sales channel	Provider of banking licenses,
technology and infrastructure
	TIM customer base: increase attractiveness on client acquisition
Target clients	within a differentiated onboarding experience
	(potential 'VIP' experience for high-end costumers)
Offer	Bank and Telecom account, making life easier for consumer
Business structure	Hybrid partnership model combining fees and equity

REDUCE CHURN

Distinguished offer through MFS and increased engagement with the clients have a potential to reduce churn in the core telco business.

LOWER COLLECTION COST

The bonus is only guaranteed when the customer pays their invoice or recharge through the

App C6, lowering the cost of collection.

Meeting with Investors | April 2020	43
TIM Participações - Investor Relations

TIM Brasil plans to improve its ESG practices based on its materiality matrix

ESG: TIM's commitment with a positive transformation to all stakeholders

6

Environmental

We want to be green.

Social

New capabilities are a key factor to maintain leadership.

Governance

Efficient mechanisms to fairly balance the interests of all stakeholders, while improving transparency and controls.

• Increasing efficiency and taking advantage of green energy cost reduction
• Developing infrastructure and data center to give more to our customer with less impact from operations
• Improving internal workforce valorization and talent management
• Accessing Brazilian Top Employer ranking based on diversity issues
• Promote digital capabilities and ESG Culture among the employees
• Developing the digital education to support demand for connectivity
• TIM recognized as a company with highest level of commitment to sustainability and corporate governance
• Reinforcing and disseminating the ESG principles to the high risk suppliers
• Adopting best practices regarding compliance, information security and privacy protection ("LGPD")

Eco-efficiency in traffic
+75%
transmitted
Indirect emissions	-70%
Carbon neutral by 2030
Employees engagement	>MQ3
Employees trained on
>95%
ESG culture
Digital capability
1k people
development
Novo Mercado and ISE
Maintain
ISO 27001 and ISO 37001
Obtain

2025

2022

United Nations Agenda: 10 relevant goals for TIM Brasil

Meeting with Investors | April 2020	44
TIM Participações - Investor Relations

TIM Brasil 2020-'22 Targets

Key Performance Indicators (IFRS 15/9)

NET SERVICE REVENUES (% YoY)OPEX (R$ bln)

		TIM 4,7%												CAGR 2018-21:	CAGR 2018-22:
														~3%	~2%
							Mid Single Digit
			2,4%				CAGR 2019-22			10,8
									Old Plan 10,6
	Market	1,5%						New Plan 10,6	10,6
	0,4%
									2018	2019		2020	2021	2022
	2018	2019		2020	2021	2022

EBITDA AND MARGIN EXPANSION (R$ bln; %)			EBITDA - CAPEX (R$ bln; %)
				≥40%					≥20%
	39,1%					16,9%
37,5%					15,0%
6,4	6,8				2,5	2,9
2018	2019	2020	2021	2022	2018	2019	2020	2021	2022

(1) Released on March 10th, 2020.

Meeting with Investors | April 2020	45
TIM Participações - Investor Relations

TIM Brasil 2020-'22 Targets

Guidance

GOALS

Revenue Growth Sustainability

Improve

Profitability

Infrastructure Development

Expand Cash Generation

	DRIVERS	SHORT TERM TARGETS	LONG TERM TARGETS
	(2020)
→	Leverage mobile ARPU improve	Service Revenues Growth:	Service Revenues Growth:
→	Expand Residential UBB operations	Mid single digit	Mid single digit
→	Tap B2B opportunity	(YoY)	(CAGR '19-'22)
→	Accelerate digital transformation	EBITDA Growth:	EBITDA Margin:
→	Maintain zero-based budget approach	Mid single digit	≥40% in 2022
→	Reliable bill to cash process	(YoY)	(≥47% w/ IFRS 16)
		Capex on Net Revenues:	Capex:
→	Smart and selective Capex approach	R$ 12.0 - 12.5 bln
Low 20's
		(∑'20-'22)
→		EBITDA-Capex on Net	EBITDA-Capex on Net
Strict financial discipline	Revenues:	Revenues:
→	Continue debt and tax rate optimization	>16%	≥20% in 2022
		(>20% w/ IFRS 16)	(≥25% w/ IFRS 16)

(1) KPIs with IFRS 15/9, except when otherwise indicated; (2) Released on March 10th, 2020.

Meeting with Investors | April 2020	46
TIM Participações - Investor Relations

REGULATORY UPDATES

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Spectrum distribution reflects available capacity, though user experience will also depend on network management

Spectrum Distribution

(Average of MHz / population)

						177
			148	43
	117		44	20
2,500 MHz	21					25						93
2,100 MHz	22		29	13						20
1,800 MHz	35		26	29						24
					3
900 MHz									4
	5	21	18
850 MHz	11						43
700 MHz	20		20	20
							5
450 MHz	3		5	5
				1

Mobile	14 MHz	90 MHz	80 MHz	20 MHz	150 MHz		135 MHz	100 MHz	190 MHz
Total
		450 MHz	700 MHz	850 MHz	900 MHz	1,800 MHz		2,100 MHz	2,300 MHz		2,500 MHz
Spectrum Cap		<1 GHz = Coverage [35%l----l40%]			>1 GHz <3 GHz = Capacity [30%l----l40%]

Meeting with Investors | April 2020 TIM Participações - Investor Relations

New spectrum bands under discussion that should be auctioned in 2020

	Public Consultation Proposal.
Overview of Anatel Public Consultation Proposal for auction rules	Concluded on April 2nd, 2020.

Frequency

Spectrum Lot proposal		Comments

700 MHz

2.3 GHz

3.5 GHz

26 GHz

10+10 MHz (FDD)

90 MHz (TDD)

400 MHz (TDD)

3,2 GHz (TDD)

1st round: 1x 10+10 MHz (national)

2nd round: 2x 5+5 MHz (national)

1x 50 MHz (regional) + 1x 40 MHz (regional)

1st round: 2x100 and 1x80 MHz (national) + 2x60 MHz (regional) - 1 to

small providers or NewCo

2nd round: 01x20 and 01 x40 MHz (regional)

1st round: 05x400 MHz (national), 03x400 MHz (regional)

2nd round: up to 10x200 MHz (national)+ up to 06x200 MHz (regional)

Left over from 2014 auction 7 different regional areas

There is a 10 MHz guard band at the end of the 2.3 GHz band

• Potential clean-up could be needed to solve coexistence w/ satellite. In the C band, the broadcast channels must be relocated
• The second option for regional lots could be acquired by the winners of the national blocks. Sub-cap: 140 MHz

200 MHz lots, only if 400MHz lots are unsold

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Law 13,879/2019 | The major change in TLC framework in 20 years

LGT (Law 9,472/1997)

Law 13,879/2019 - Amendments to LGT

Fixed	• Concessions expire in 2025
	• Reversible assets must return to the Federal
	Government
	• Universalization Obligations (PGMU III)
	• Payphones (TUP) - Locations with > 100 pop., max.
	distance 300m, min. density 4 Payphone/1k pop.
	• Individual access - Locations with > 300 pop. in max
	7 days
	PGMU IV (Dec./2018) - TUP reduction x FWA in ~1,4k
	secondary districts

• Concessions - subsequent renewals (not limited to 2025)
• Migration option from expiring Concessions to Authorizations with no deadline
• • Obligation to maintain service in non competitive areas
• Additional broadband investments plan based on
• • "NPV balance" expiring Concessions vs adapted Authorization
  • Reversible assets
  • Public policy areas (and network sharing)

National LD

R I

R II

Regional

Region I

Region II

Region III

Mobile	• Authorizations - Max. 20+20 years (limited to one-time	• Authorizations - Subsequent renewals (not limited to 2
Spectrum	renewal)		periods)
	•	Renewal fee - 2% net revenues biennial payment (cash)	•	Renewal fee - Could be converted into investments
	•	Tenure - RF assigned only by Anatel (not tradable	•	Tenure - RF transfer among operators (secondary
		among private players)		market)

25 MHz

50 MHz

(2020-24)

50 MHz

(2022-2024)

50 MHz

(2023)

Meeting with Investors | April 2020 TIM Participações - Investor Relations

APPENDIX

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Historical Data: P&L

R$ Thousand
Description		1Q19	2Q19	3Q19	4Q19	2019	1Q20	1Q20 vs 1Q19
	(%YoY)
Gross Revenues	6,104,071	6,264,065	6,281,682	6,533,015	25,182,832	6,091,893	-0.2%
Service Gross Revenues	5,833,801	5,930,275	5,964,999	6,091,269	23,820,344	5,850,561	0.3%
Mobile Service Gross Revenues	5,437,748	5,518,044	5,537,073	5,652,167	22,145,033	5,426,617	-0.2%
Fixed Services Gross Revenue	396,053	412,230	427,926	439,101	1,675,311	423,944	7.0%
Product Gross Revenues	270,269	333,790	316,683	441,746	1,362,488	241,332	-10.7%
Taxes and Discounts	(1,913,244)	(2,001,324)	(1,944,619)	(1,946,450)	(7,805,638)	(1,876,585)	-1.9%
Taxes and discounts on services	(1,809,384)	(1,866,890)	(1,813,087)	(1,733,828)	(7,223,189)	(1,759,265)	-2.8%
Taxes and discounts on product sales	(103,860)	(134,433)	(131,533)	(212,622)	(582,449)	(117,320)	13.0%
Total Net Revenues	4,190,826	4,262,741	4,337,063	4,586,564	17,377,194	4,215,308	0.6%
Net Revenues Services	4,024,417	4,063,385	4,151,912	4,357,441	16,597,155	4,091,296	1.7%
Mobile Service	3,795,195	3,833,492	3,918,446	4,101,100	15,648,232	3,840,444	1.2%
Client generated	3,506,024	3,503,994	3,575,665	3,786,475	14,372,159	3,553,013	1.3%
Interconnection	138,551	105,002	122,244	111,497	477,294	111,267	-19.7%
Other Revenues	150,620	224,495	220,537	203,128	798,779	176,165	17.0%
Fixed Service	229,222	229,893	233,466	256,341	948,922	250,852	9.4%
of which TIM Live	111,848	114,750	126,694	137,435	490,727	144,392	29.1%
Net Revenues Products	166,409	199,357	185,150	229,124	780,040	124,012	-25.5%
Operating Expenses (Normalized)	(2,406,489)	(2,301,676)	(2,279,645)	(2,275,647)	(9,263,457)	(2,288,994)	-4.9%
Personnel expenses	(249,027)	(254,237)	(247,090)	(255,090)	(1,005,444)	(260,807)	4.7%
Selling & marketing expenses	(893,124)	(841,230)	(824,667)	(797,725)	(3,356,746)	(802,052)	-10.2%
Network & interconnection	(658,307)	(557,624)	(543,287)	(557,081)	(2,316,298)	(627,460)	-4.7%
General & administrative	(133,865)	(135,872)	(147,535)	(159,843)	(577,114)	(162,398)	21.3%
Cost Of Goods Sold	(198,633)	(240,429)	(221,242)	(271,515)	(931,818)	(158,743)	-20.1%
Bad Debt	(172,610)	(188,234)	(200,611)	(186,836)	(748,291)	(188,588)	9.3%
Other operational revenues (expenses)	(100,924)	(84,050)	(95,214)	(47,559)	(327,746)	(88,947)	-11.9%
EBITDA (Normalized)	1,784,337	1,961,065	2,057,418	2,310,917	8,113,737	1,926,314	8.0%
EBITDA Margin (Normalized)	42.6%	46.0%	47.4%	50.4%	46.7%	45.7%	3.1 p.p.
Depreciation & Amortization	(1,334,210)	(1,297,772)	(1,436,718)	(1,060,281)	(5,128,981)	(1,408,605)	5.6%
Depreciation	(863,100)	(880,142)	(954,602)	(554,875)	(3,252,719)	(935,295)	8.4%
Amortization	(471,110)	(417,630)	(482,116)	(505,406)	(1,876,262)	(473,310)	0.5%
EBIT (Normalized)	450,127	663,293	620,700	1,250,636	2,984,756	517,709	15.0%
EBIT Margin (Normalized)		10.7%	15.6%	14.3%	27.3%	17.2%	12.3%	1.5 p.p.
Net Financial Results (Normalized)	(262,548)	(264,217)	(333,409)	(235,738)	(1,095,912)	(254,575)	-3.0%
Financial expenses	(316,877)	(308,867)	(416,212)	(254,464)	(1,296,421)	(325,690)	2.8%
Net exchange variance	526	(3,092)	2,476	(819)	(908)	7,220	1272.9%
Financial income	53,803	47,743	80,327	19,545	201,418	63,896	18.8%
Income Before Taxes (Normalized)	187,579	399,077	287,290	1,014,898	1,888,844	263,134	40.3%
Income Tax and Social Contribution (Normalized)	(35,787)	(56,828)	206,107	(96,586)	16,906	(98,707)	175.8%
Net Income (Normalized)	151,792	342,249	493,398	918,311	1,905,749	164,428	8.3%
Reported Figures		1Q19	2Q19	3Q19	4Q19	2019	1Q20	1Q20 vs 1Q19
	(%YoY)
Operating Expenses	(2,407,961)	(807,185)	(2,242,563)	(2,275,647)	(7,733,357)	(2,291,581)	-4.8%
EBITDA	1,782,865	3,455,556	2,094,500	2,310,917	9,643,838	1,923,727	7.9%
EBIT	448,655	2,157,784	657,782	1,250,636	4,514,857	515,122	14.8%
Net Financial Results	(262,548)	786,527	(267,031)	(235,738)	21,210	(254,575)	-3.0%
Income Tax and Social Contribution	(66,073)	(922,212)	170,931	(96,586)	(913,940)	(98,707)	49.4%
Net Income	120,034	2,022,100	561,681	918,311	3,622,127	161,841	34.8%

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Historical Data: Cash-Flow

R$ Million
Description	1Q19	2Q19	3Q19	4Q19	2019	1Q20	1Q20 vs 1Q19
(%YoY)
Initial Cash & Cash Equivalents	1,076	915	667	876	3,534	2,285	112.4%
Adjusted Earnings Berfore Taxes	188	399	287	1,015	1,889	263	40.3%
Non recurring operating items	(1)	2,545	103	-	2,647	(3)	75.7%
D&A	1,334	1,298	1,437	1,060	5,129	1,409	5.6%
Income from equity accounting	-	-	-	-	-	-	n.a.
Provision for legal and administrative proceedings	95	300	91	62	548	98	3.1%
Monetary adjustments to deposits, administrative and legal procee	43	132	53	(27)	200	58	35.1%
Interest, monetary and exchange variations of borrowings and othe	21	(1,075)	27	76	(951)	69	226.2%
Lease interest payable	210	197	207	207	821	166	-20.8%
Lease interest receivable	(6)	-	-	-	(6)	(5)	-23.1%
Provision for doubtful debts	173	188	201	187	748	189	9.3%
Others	8	10	7	11	36	3	-58.0%
Decrease (increase) in operating assets	(870)	(1,663)	(79)	365	(2,246)	(186)	-78.6%
Trade accounts receivable	(328)	(174)	(366)	(159)	(1,027)	(151)	-54.0%
Taxes and contributions recoverable	97	(1,750)	(29)	81	(1,601)	245	153.3%
Inventory	(32)	1	3	8	(20)	(65)	106.8%
Prepaid expenses	(635)	221	263	252	101	(229)	-63.9%
Judicial deposit	45	34	96	121	296	44	-1.1%
Other current assets	(17)	5	(46)	63	5	(30)	77.0%
Increase (decrease) in operating liabilities	(898)	(1,274)	(230)	650	(1,751)	(1,573)	75.2%
Payroll and related charges	34	(9)	5	(22)	7	35	4.5%
Suppliers	(541)	(892)	30	1,002	(401)	(1,302)	140.8%
Taxes, charges and contributions	(113)	(34)	124	62	40	(39)	-65.6%
Authorizations payable	8	(116)	(57)	65	(100)	-	-100.0%
Payments for legal and administrative proceedings	(157)	(160)	(182)	(216)	(715)	(117)	-25.4%
Deferred revenues	(77)	(51)	(48)	(28)	(204)	(81)	5.3%
Other current liabilities	(51)	(11)	(101)	(213)	(377)	(69)	34.3%
Net Cash (used in) from operations	296	1,059	2,104	3,606	7,065	488	64.8%
Capex	(650)	(945)	(924)	(1,335)	(3,853)	(904)	39.1%
Others	38	258	(283)	128	141	621	1542.4%
Net cash used in investment activities	(612)	(687)	(1,207)	(1,207)	(3,713)	(283)	-53.7%
New borrowing	1,000	-	-	-	1,000	800	-20.0%
Repayment of borrowing	(135)	(212)	(173)	(204)	(724)	(666)	394.5%
Interest paid - borrowing and financings	(15)	(21)	(45)	(16)	(97)	(33)	116.4%
Payment of financial lease	(152)	(210)	(210)	(229)	(801)	(213)	40.7%
Interest paid - leases	(200)	(199)	(199)	(187)	(785)	(211)	5.4%
Dividends and interest on shareholder's equity paid	(343)	(0)	(63)	(364)	(770)	(567)	65.4%
Others	1	22	1	9	33	(7)	n.a.
Net cash used in financing activities	156	(620)	(688)	(991)	(2,143)	(898)	n.a.
Cash Flow	(160)	(248)	209	1,409	1,209	(694)	332.4%
Final Cash & Cash Equivalents	915	667	876	2,285	4,743	1,591	73.9%

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Historical Data: Financial Indicators

Description	1Q19	2Q19	3Q19	4Q19	2019	1Q20	1Q20 vs 1Q19
(%YoY)
Mobile ARPU (R$)	22.8	23.2	23.9	25.1	23.7	23.9	4.8%
Prepaid	11.6	11.6	12.0	12.9	12.0	12.1	4.6%
Postpaid	38.2	37.1	37.5	39.4	38.0	37.2	-2.6%
Postpaid (ex-M2M)	42.6	42.8	44.1	47.0	44.1	44.5	4.3%
SAC/Gross Adds (R$)	62.9	51.1	50.1	44.1	51.7	59.6	-5.2%
TIM Live ARPU (R$)	79.6	78.0	81.8	83.8	80.8	84.5	6.1%
CAPEX (R$ Mln)	650	945	924	1,334	3,853	904	39.1%
CAPEX ex-licenses (R$Mln)	650	945	924	1,334	3,853	904	39.1%

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Historical Data: Operational Indicators

Description	1Q19	2Q19	3Q19	4Q19	2019	1Q20	1Q20 vs 1Q19
(%YoY)
Brazilian Wireless Subscriber Base (million)	228.1	228.3	228.4	226.7	226.7	226.3	-0.8%
Estimated Total Penetration	99.6%	98.9%	98.4%	96.9%	96.9%	96.2%	-3.4 p.p.
Mobile Customer Base ('000)	55,083	54,972	54,527	54,447	54,447	52,826	-4.1%
Prepaid	34,507	33,648	33,284	32,984	32,984	31,153	-9.7%
Postpaid	20,576	21,324	21,243	21,463	21,463	21,673	5.3%
Postpaid ex-M2M	18,207	18,059	17,770	17,820	17,820	17,880	-1.8%
M2M	2,368	3,265	3,474	3,643	3,643	3,792	60.1%
4G Users ('000)	35,672	36,430	37,340	38,641	38,641	38,620	8.3%
Market Share	24.1%	24.1%	23.9%	24.0%	24.0%	23.35%	-0.8 p.p.
Prepaid	27.2%	27.2%	27.4%	28.2%	28.2%	27.31%	0.1 p.p.
Postpaid	20.3%	20.4%	19.9%	19.5%	19.5%	19.31%	-1.0 p.p.
Gross Additions (000's)	5,626	6,213	5,934	6,476	24,249	5,357	-4.8%
Net Additions (000's)	-840	-111	-444	-80	-1,476	-1,621	93.1%
Monthly Churn (%)	3.9%	3.8%	3.9%	4.0%	3.9%	4.3%	0.5 p.p.
Fixed Telephopny Customer Base ('000)	946	1,006	1,051	1,079	1,079	1,101	16.4%
TIM Live Customer Base ('000)	486	507	537	566	566	584	20.2%
FTTH Customer Base ('000)	71	98	132	167	167	196	174.7%
FTTC Customer Base ('000)	414	408	404	398	398	388	-6.3%
Handsets sold ('000)	246	244	234	277	1,000	174	-29.4%
Smartphone Penetration (%)	85.7%	86.8%	86.2%	87.2%	87.2%	87.5%	1.8 p.p.
BOU	2,660	2,808	3,154	3,412	3,009	3,592	35.0%
MOU	124	124	125	122	124	119	-3.9%
Employees	9,411	9,414	9,540	9,700	9,700	9,588	1.9%

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Brazilian Telcos: Financial X-Ray

To be released

		TIM			Vivo			Claro			Oi
	1Q20	1Q19	% YoY	1Q20	1Q19	% YoY	1Q20	1Q19	% YoY	4Q19	4Q18	% YoY
Total Net Revenues	4.215	4.191	0,6%	10.825	10.975	-1,4%	9.791	9.485	3,2%	4.862	5.317	-8,6%
Service Revenues	4.091	4.024	1,7%	10.244	10.376	-1,3%	9.522	9.198	3,5%	4.828	5.255	-8,1%
Mobile Service Revenues	3.840	3.795	1,2%	6.489	6.482	0,1%	4.082	3.566	14,5%	1.860	1.879	-1,0%
Fixed Service Revenues	251	229	9,4%	3.754	3.894	-3,6%	5.440	5.632	-3,4%	2.969	3.375	-12,1%
Products Revenues	124	166	-25,5%	581	598	-2,9%	259	274	-5,5%	34	62	-45,4%
Organic EBITDA	1.926	1.784	8,0%	4.431	4.360	1,6%	3.709	3.450	7,5%	1.056	1.287	-17,9%
Organic EBITDA Margin	45,7%	42,6%	3,1 p.p.	40,9%	39,7%	1,2 p.p.	37,9%	36,4%	1,5 p.p.	21,7%	24,2%	-2,5 p.p.
Capex	904	650	39,1%	1.648	1.696	-2,8%	n.a.	n.a.	n.a.	1.979	2.085	-5,1%
Capex/Net Revenues	21,5%	15,5%	5,9 p.p.	15,2%	15,5%	-0,2 p.p.	n.a.	n.a.	n.a.	40,7%	39,2%	1,5 p.p.
EBITDA - Capex	1.022	1.134	-9,9%	2.784	2.665	4,5%	n.a.	n.a.	n.a.	-922	-798	15,6%
Net Debt	8.526	7.477	14,0%	7.402	9.581	-22,7%	n.a.	n.a.	n.a.	15.927	11.826	34,7%
Net Debt / EBITDA 12M	1,03	1,11	-7,0%	0,41	0,59	-30,8%	n.a.	n.a.	n.a.	3,5	2,0	75,1%
ARPU	23,9	22,8	4,8%	29,0	29,5	-1,7%	24,0	18,0	20,5%	16,6	16,5	0,4%
Prepaid	12,1	11,6	4,6%	12,5	12,1	5,0%	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Postpaid (ex-M2M)	44,5	42,6	4,3%	51,3	53,2	-3,6%	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.

(1) Vivo = Capex ex-IFRS 16 (it does not consider permanent assets from leasing).

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Brazilian Telcos: Operational X-Ray

		TIM				Vivo				Claro				Oi
	1Q20	1Q19	% YoY		1Q20	1Q19	% YoY		1Q20	1Q19	% YoY		4Q19	4Q18	% YoY
Mobile Customer Base (MM)	52.8	55.1	-4.1%	74.7	73.5	1.7%	55.1	56.4	-2.2%	36.8	37.7	-2.4%
Market Share	23.3%	24.1%	-0.8 p.p.	33.0%	32.2%	0.8 p.p.	24.4%	24.7%	-0.4 p.p.	16.2%	16.4%	-0.2 p.p.
Human Postpaid Customer Base ex-M2M	17.9	18.2	-1.8%	33.3	32.3	3.0%	20.3	17.7	14.6%	10.2	8.6	19.0%
(MM)
Market Share	20.7%	22.5%	-1.8 p.p.	38.5%	39.9%	-1.4 p.p.	23.5%	21.9%	1.6 p.p.	12.0%	10.8%	1.3 p.p.
Mix Postpaid	33.8%	33.1%	0.8 p.p.	44.6%	44.0%	0.6 p.p.	36.9%	31.4%	5.4 p.p.	27.8%	22.8%	5.0 p.p.
4G Customer Base (MM)	38.6	35.7	8.3%	50.0	42.9	16.5%	37.2	32.3	15.1%	24.8	21.3	16.4%
Market Share	24.8%	26.0%	-1.2 p.p.	32.1%	31.2%	0.8 p.p.	23.8%	23.5%	0.3 p.p.	16.3%	16.4%	-0.1 p.p.
Mix 4G	73%	65%	8.3 p.p.	67%	58%	8.5 p.p.	67%	57%	10.1 p.p.	67%	57%	10.9 p.p.
Banda Larga >34 Mbps1	576,423	478,727	20.4%	2,953,910	2,320,663	27.3%	6,573,107	4,952,816	32.7%	731,564	157,989	363.0%
Market Share	3.8%	5.1%	-1.3 p.p.	19.5%	24.9%	-5.3 p.p.	43.5%	53.1%	-9.6 p.p.	5.5%	1.9%	3.6 p.p.

Meeting with Investors | April 2020 TIM Participações - Investor Relations

TIM has different opportunities in terms of regionality

				NO
(Market Share | Mar-20)			36.1%
BRASIL	Pen: 96.2%			24.6%
	33.0%	-1.7 p.p	19.8%
			19.3%
	25.9%
	23.3%	-0.8 p.p.	CO
	16.2%			37.2%

34.6%

16.0%

			-0.2 p.p	11.7%
						PR/SC
			-1.5 p.p
				51.7%
TIM's Position
			20.3%
		Leader						16.9%
		2nd						10.4%
		3rd
		4th
									RS
YoY p.p.
												47.0%
															31.6%
															12.8%
						0.0 p.p.									8.3%

(1) Claro considering Nextel customer base. Source: Anatel.

NE

		32.2%		-1.2 p.p.
				BA/SE
		30.3%
							36.2%
		25.4%
							24.8%
		12.1%
					20.0%

18.8% -0.6 p.p.

MG

		42.8%
		21.8%
-1.9 p.p.	RJ/ES
		19.0%
	36.0%
		10.8%
				33.0%

16.9% +1.4 p.p.

13.8%

						SP Capital
							41.7%
							23.7%
	SP Interior						-2.4 p.p.
				23.5%
		34.3%					9.3%
		32.0%
			+1.1 p.p.
		22.1%
		8.1%					Meeting with Investors | April 2020
							TIM Participações - Investor Relations

TIM & VIVO Network Infrastructure Sharing Agreement

Following the MoU signed in Jul/19, TIM and Vivo reported in Dec/19 the implementation of three different workstreams, on two separate contracts, considering two phases

The Infrastructure Sharing Agreement is mainly focused in capex and opex saving, as well as better frequency usage, especially in cities below 30k inhabitants (approx. 4.400 cities out of 5.570). Finally new coverage opportunities are explored leveraging on cities where only one out the two Operators is present

Approved without restrictions by CADE in Apr/20 (still pending decision on Claro's appeal) and by Anatel in May/20

ContractsDescription

Main expected impacts

Step 11

Step 2

I

2G SWITCH-OFF

(national level)

II

Expansion and

additional

coverage

(4G and 3G)

SINGLE
GRID	III
(less than
30k pop.)

Consolidation

in one Single

Network

• One of the two Operators to switch-off its 2G network, where both Operators are currently present
• The remaining Operator to provide services for both Customer Base
• Full Single Grid approach where one of the two Operators is currently providing 4G/3G technologies
• Possibility to use Spectrum of both Operators to maximize efficiency (MOCN approach) and to reduce investments
• Full Single Grid approach in cases where both Operators are currently providing 4G/3G technologies
• One of the two Operators fully switch-off its network, while the remaining Operator is expected to provide services for both Customer Bases
• Possibility to use Spectrum of both Operators to maximize efficiency (MOCN approach) and to reduce investments

• Opex saving (mainly energy) and limited tower dismount
• Possible reuse of 850 MHz in refarming
• Footprint expansion in 4G/3G with Revenues opportunities in currently unserved markets
• Limited additional investments are expected to open new cities to the other operator
• Mutual usage of available frequencies
• Important Opex saving, due to the possibility to dismount full sites
• Investment saving for higher available capacity, considering the full sharing of available frequencies of both Operators and possible refarming of 3G frequencies
• Mutual usage of available frequencies

• 40% of scope
• 40% of scope

• 25+25 cities

• 100% of scope (≈ 2.700 cities)
• 100% of scope (> 800 cities)
• Perimeter to be extended up to 100% (>1.600 cities) in case of fulfillment of technical conditions

(1) Up to 180 days: after all conditions precedent are fulfilled.

Meeting with Investors | April 2020 TIM Participações - Investor Relations

Recoverable Tax over PIS/COFINS: R$ 3.4 bln from three lawsuits

In 2017 Brazilian Supreme Court stated that ICMS (State Tax) can not be included in the calculation basis of PIS and COFINS (Federal Tax). PIS/COFINS are levied on revenues and the Supreme Court stated that ICMS can not be considered a revenue. Any tax credit generated by this decision when booked incurs in payment of income tax (IR/CSLL).

Leading Case: Favorable	R$ 353mn	R$ 2.876 mn	R$ 148mn
decision	Gross Tax credits of:
				R$ 3,377 mln1
APR/2017	4Q18	2Q19	3Q19	To be used in ~3/4 years2
	Booked after final	Booked after final	Final court decision.
	court decision: TIM	court decision: TIM	To be booked: TIM
	NE	CEL	S.A

Meeting with Investors | April 2020 TIM Participações - Investor Relations

For further information

Vicente Ferreira

E-mail: [e-mail]

Phone: [phone]

Bernardo Guttmann

E-mail: [e-mail]

Phone: [phone]

Camila Assano

E-mail: [e-mail]

Phone: [phone]

Lucas Carneiro

E-mail: [e-mail]

Phone: [phone]

Guilherme Kopke

E-mail: [e-mail]

Phone: [phone]

Visit our Website ri.tim.com.br

E-mail: [e-mail]

850 João Cabral de Melo Neto Avenue South Tower - 12th floor

Barra da Tijuca - 22775-057 - Rio de Janeiro, RJ