Results Presentation3rd quarter | TIM Participações S.A.

0Rio de Janeiro, 31st October 2011

Agenda

3Q11: Main AchievementsQ

3Q11: Financial Results

Conclusions & Outlook

1

Q3 Main Achieviments

Growth Acceleration

Net Revenues +18.9% YoY(confirming Q2 +19.5%)

Customer Base: +26.1% YoY(confirming Q2; Post-paid accelerating)

Voice Outgoing: +21% YoY1 Growth AccelerationNet Services Revenues +13.7% YoY(accelerating vs. Q2 +11.8%)

(confirming Q2 )

Data: +47.6% YoY(accelerating vs. Q2 +33% )

1

#2: volume and valueARPU stabilized (QoQ) Internet users >2 2 mln daily

Solid KPIs2Incremental Market Share 36.8%ARPM stabilizedSmartphone penetration at 19 5%Internet users >2.2 mln daily

EBITDA: +11.3 YoY (+18.7%

Smartphone penetration at 19.5%

SAC/ARPU: 1.7x (vs 2 3 3Q10)

Profitability Normalized)EBIT: +83% YoY (513 mln)Net Income: +116% YoY (317 mln)

3SAC/ARPU: 1.7x (vs. 2.3 3Q10)

Bad Debt: 0.95% (vs. 1.34% 3Q10)

Subscriber retention cost increased

Strengthening the Capex :R$ 0.84 billion in 3Q114

AES Deal: closedAuCap R$ 1.7 Bln: fully funded to

2

foundations R$ 1.9 billion YTD (Sept) support business growth

Able to combine growth and profitability

R$ mln, IFRS

9MYoY1Q11 2Q11 3Q11 9M11YoY 3Q11C t B 9MYoY

+26%

1Q11

52.8

2Q11

55.5

3Q11

59.2

9M11

59.2

26.1%

Customer Base (Mln)

QCustomer Base

(MKT Share)

+17.5%

+11.6%

3,752

3,463

4,252

3,744

4,371

3,887

12,375

11,09413 7%

18.9%Revenues

ServiceRevenues

Revenues

Service

+11.1%

+103 0%

1,033

350

1,138

529

1,152

513

3,323

1 39211.3%

13.7% Revenues

EBITDA

EBIT

ServiceRevenues

EBITDANormalized:

3Q11 +18 7% +103.0%

+169.1%

350

213

529

350

513

317

1,392

880

11.3% EBIT

Net Income

EBITDA

EBIT

3Q11: +18.7%

83%

EBITDA -CAPEX

+17.0%736 421 314 1,471

EBIT

Net Income 116%

3

Net Debt 1,671 1,998 1,458 -29.9%1,458-10,0% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0%

3 waves of growth

3.7123 130

16

Mln users Min, Billion minutes, Gross Revenue R$ Bln %, Gross Mobile Revenue, R$ Mln

+46% +5%

% YoY % YoY % YoY

Customer Base Voice Data

39.646.9

59.21.8

2.590

123

10.516.9

22.4 12 13

16

3 4

MoU

Net Adds

565

834

% Data/Service

+46% +5%+300 Bps

TotalTraffic

+33%

3.42.82.5

Revenues(Voice Out)

CustomerBase

496565

Data Revenues

+26% +47.6%+21%

Traffic

+19% +14% +14%

3Q09 3Q10 3Q11 3Q113Q103Q09 3Q113Q103Q09

+% Q3 YoYRevenues

Total Revenues

R$ Mln

3,466 3,677

4,371

3 4183,887

+18.9%

+% Q3 YoY

+6%

% YoY

Service Revenues

3,213 3,418

+13.7%DataTotal TrafficCustomer

Base

+26% +33% +48%

+6%

4

3Q113Q103Q09

+26% +33% +48%

CommunityExpansion

FMS(Voice)

Internet for everybodyStrategy

Customer Base: Community Expansion

Total Mobile MarketMln of lines

Vivo TIM Claro Oi

Total Mobile Market

Mln of lines

57,7 58,960,8 62,1 63,4

65,1 67,0

56,8 59,2

50 552,2 53,4 54,7

56 2 57 5

30,14% 29,80% 29,65% 29,48% 29,48% 29,53% 29,49%

25 78%

26,04%25,47% 25,55% 25,46% 25,39% 25,46% 25,51%

25 30%

46,949,2

51,8 52,854,548,8

50,5 56,2 57,5

37,438,3 39,6

41,4 41,7 41,5 42,8

24,52% 24,91% 25,26% 25,11% 25,34% 25,78% 25,30%

19,51% 19,38% 19,28% 19,69% 19,38% 18,85% 18,84%

Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11Sep‐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

44.3 45.146 6

.48.5

50.6

25 3%

26.5%

27.2% Mln of lines

8.7

20.2%

20.7%

39.741.8 46.625.3%

7.2

7.721.2%

5

Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11Mkt Share

Infinity

Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11

Mkt Share

Voice Outgoing: Continues to push on FMS

Net Adds (000) YoYLiberty Net Adds (mln) Infinity

Voice Outgoing RevenuesPre-paidPost-paid

+303

+646

1Q11 17%

+1 6

+2.4

+3.1

+223303

3Q11 21%

2Q11 20%

1Q11 2Q11 3Q11

+1.6

1Q11 2Q11 3Q11

R$ centBln Minutes

1Q11 2Q11 3Q11

Total Outgoing Traffic ARPM = ARPU/MOU

24.022.0

19 125

30

1215

17 18 1820

R$ centBln Minutes

Reshaping Portfolio… …Portfolio Reshaped

(Stable)Europe Avg.:

R$ 0.2219.1 18.1

16.5 17.0 16.3

10

15

201012

~2X

( )

6

0

5

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q111Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

Data growth in accelerating mode

15 7%

Mobile Data revenues Unique users monthlyMln clientsGross Mobile Revenues After Infinity Web

12.0%13.0% 12.9%

13.6% 13.8%14.6%

15.7%

Post Paid

14.82x

+47.6%

Data /Service (%)

y

Pre Paid

7.5

YoY Growth

+12.7% +13.9% +14.0%

+31.4% +32.3% +33.5%

Daily Unique users Mln clients

Sep’11Sep’10

Infinity Web (Pre-Paid)Smartphone penetration% Internet enabling handsets on total CB

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

16.0%18.5% 19.5% ~7x

Daily Unique users, Mln clients

2.2

% Internet enabling handsets on total CB

8.0%10.0%

12.0%

MarFebJanDecNoOctSepA g

0.3

MaApr Jun SepAugJul

7

Sep'10 Dec'10 Mar'11 Jun'11 Aug'11 Sep'11 MarFebJanDecNovOctSepAug MayApr

2010 2011

Jun SepAugJul

Accelerating post-paid through efficient business model

Customer Base Post-Paid

0.3 0.3 0 2 0 20.3

0.6Mln lines

Bad Debt and SAC/ARPU% Gross revenues, months

B d 2 00% 1 83%0.20.3 0.2 0.2

6,615 6,956 7,236 7,476 7,701 8,004 8,651

Net Adds

3Q09: 6,316

Bad debt

2.00% 1.83%1.34% 1.04% 0.77% 1.08% 0.95%

3.12.6

2.31 8 1 7

CB

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

+20%YoY

SAC/ARPU

1.51.8 1.6 1.7

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

000 units handset sales

Handsets sold - volume

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

R$ Mln

Subsidy

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

+64%

+83%

3,507

000 units, handset sales

+49%

3,164

R$ Mln

380424 468 433

732 712ProductRevenues

Smart-phone

54%

1,915

28%

2,262

48%

1,383

19%

71%

29%

2,125286

380

115

8564 26 8 0 0

CapitalizedSubsidy

8

phone

1Q111Q10

19%

2Q112Q10 3Q113Q10

115

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

Agenda

3Q11: Main AchievementsQ

3Q11: Financial Results

Conclusions & Outlook

9

EBITDA & Efficiency Drivers

32.5% 32.6%R$ Mln 3Q11 vs. 3Q10:Reported: +11 3%

Lines (Mln)

EBITDA Service Margin improvement & CB Expansion

31.1%

1,035

1,138 1,152 EBITDA

Reported: +11.3%Normalized: +18.7%

0.30

0.65

EBITDA Service Margin

2.70

3.75

Post Paid

971 1,138 1,152

64

EBITDAnormalized 1,6

2,43,10.22

Net Adds

1.82

Pre Paid

3Q112Q113Q10

R$ Mln YoY %R$ Mln

1Q11 2Q11 3Q11

Network Efficiency Bad Debt

1.34%1.04%

0.77%1.08% 0.95%

R$ Mln, YoY %

Outgoing

+21.1%

% YoYR$ Mln

Bad Debt % Gross Rev

Total Traffic (min): +32.8% YoY

-39 Bps

% YoY

2 837

3,105 3,0613,294

3,435

OutgoingRevenues

Network and ITX costs

+11.9%

Bad Debt

69 58

42

66 61 -12.4%

1,075 1,085 1,109 1,147 1,203

2,837

10

3Q10 4Q10 1Q11 2Q11 3Q113Q10 4Q10 1Q11 2Q11 3Q11

Consistent EBITDA growth

From EBITDA to Net Income (in R$ Mln)EBITDA Evolution (in R$ Mln)

Revenues MarginCosts

Positive impacted by

2011

2010

Δ

485 (598) (113)

Handset Capitalized

l

259 (275) (16)

(97)

(64)

1,152 (639)

468 (97)(67) (127)

(60)

Zero subsidy policyFX & Volume (33)

Fistel (63)

513 (61)(135)

3171,035

(60)1,152

Margin % 26.4% 11.7%

7.2%

Ebitda Services Net Commercial Network + G&A + Ebitda

Ebitda Depreciation and

Amortization

Ebit Net Financial Expenses

Taxes and Others

Net Income

Ebitda 3Q10

ServicesRevenues

Net Handset

Commercial Costs

Network +ITX

G&A + Other

Expenses

Ebitda 3Q11

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%

11

28.2% 26.4%Ebitda Margin

Service Ebitda Margin30.8% 32.6%

Cash Generation

Operational Free Cash Flow in 3Q11 Net Debt 3Q 2011

370(838)

R$ Mln R$ Mln

2,079 in 3Q10

684

1,152 684(144)1,998

1,458

3Q10

Ebitda Δ Working Capital

CAPEX Oper. FCF

•Income Tax•Financial Results

% on Net Revenues

26.4% 19.2% 15.6%

+11.3% +13.4%% YoY

2Q11 Oper FCF Non-Oper FCF 3Q11

+59.4%+4x

8,5%

12

Strengthening Infrastructure

CAPEXR$ Bn 32.319

TBR – TRX AccumulativeActivations

2011

+38%R$ Bn

1.91.7

0.51,5

2011EEoP 10EoP 09 SepAugJulJunMayAprMarFebJan Oct Nov Dec

0.3+25%

+38%

-40%

TRX - NNEActivations

Subsidy& Commercial

1 6

0.615.431

52% 48%

Rest ofBrazil

-17%

Network & IT

1.6

1.3

0.9

52%

Node BActivations

North andNortheastSepAugJulJunMayAprMarFebJan Oct Nov Dec

+23%

+44%

YTD Set’11YTD Set’10YTD Set’09

3Q09 3Q10 3Q11

1.214

+74%

+21%

Subsidy& Commercial 0.2 0.1 0.1

0.4 0.4 0.8Network & IT

3Q09 3Q10 3Q11

MWActivations

1572

SepAugJulJunMayAprMarFebJan Oct Nov Dec 2011EEoP 10EoP 09

+59%

13SepAugJulJunMayAprMarFebJan Oct Nov Dec 2011EEoP 10EoP 09

+5x

Agenda

3Q11: Main AchievementsQ

3Q11: Financial Results

Conclusions & Outlook

14

Delivery on Promises

+% YoYQ3 Results

Waves of Growth

DataTotal Traffic

+33% +48%+26%

Customer Base

Guidance 2011-2013CB Expansion

+33% +48%

Community Expansion FMS (Voice) Internet for everybody

+26%

9M11

Market Share>25%

Revenue growth

CB ExpansionMln lines

46,9 59,2

Serv Rev : +11 6% (YTD)

>26%

ProfitabilityEBITDA 2011 > R$4.5 bln

g% High Single Digit

MOU increase

123 130Min/month

set/10 set/11Serv. Rev.: +11.6% (YTD)

Total Rev.: +17.5% (YTD)

R$ 3.3 billions (YTD)

CAPEX3 Years CAPEX R$ 8.5 blnSmartphone Penetration

set/10 set/11

~20%Smartphone, % CB

R$ 1.9 billion (YTD)

15

EBITDA - CAPEX> R$ 6.6 bln (’11-13)

8%20%

set/10 set/11R$ 1.5 billion (YTD)

31st October: Atimus deal closed, ready for a new phase

4 reasons behindAtimus Acqusition

Architecture: Rio de Janeiro/São Paulo

Opex & Corporate

Atimus Acqusition*

pCapex

Savings

CorporateBroadband

Mobile Data A l ti

Residencial B db d

Copper or Fiber Drop

300 Mb Acceleration Broadband64/200 ports

300 Mb

Creating value for shareholders

16

The ultimate urbanmobile network

shareholders

*EV = R$1.6 Bln / Cash out = R$ 1.5 Bln

Ready to catch the Brazilian FMS opportunity

+3 1

FMS VoiceFixed Ultra Broadband

InfinityTIM Fiber

+646

+1.6

+2.4+3.1

Wireline Brazilian Market

% Total Fixed BB Fixed Liberty

InfinityNet Adds

21 cities in metro SP/Rio8 mln householdsR$ 30 bln TLC market

+223+303

19%

>2Mbps

lines accesses”

BB Fixed Market

Net Adds

1Q11 2Q11 3Q11

550,000 corporate clients

0

ARPM (R$/min)Mobile 79%

81%21%

Voice Only Broadband

<2Mbps

>2Mbps

Negative Mobility Price Premium

0

0

0

0

( $/ )

2X

40%

FMS Data

Data Daily Unique users, Mln clients

0

0

0

2006 2007 2008 2009 2010 2011

-40%Fixed 2.2

Wireline Accesses (example incumbent A)

% YoY 3Q09 3Q10 3Q11

17

MarFebJan MayApr2011

Jun SepAugJul‐3% ‐4.8% ‐6.5%

Capital Increase & Corporate Structure

Number of Shares ‘000 Ne Corporate Str ct reNumber of Shares 000 New Corporate Structure

200CEO

2,2172,417

Before Follow-On After Follow-OnFollo

w-O

n

CFO IRO

Follow-On ‘000 Reais Number of Shares

Base 1 640 853 190 796 858Base 1,640,853Greenshoe 81,369

1,722,222 200,258,368

190,796,8589,461,510 • One single class of shares (Novo Mercado)

• Strengthening commitment with the Financial Community

18