Capital Market Day 2024

TIM Brasil

Alberto Griselli - CEO TIM Brasil

Classificado como Uso Interno

TIM Brasil Capital Market Day 2024

Improvement of macroeconomic conditions supports industry growth

Market outlook (1)

Brazil's encouraging macro-outlook reduces risks

and supports sector's positive momentum

GDP

Modest but steady growth for the next 3

years (+2% p.y. on average)

Inflation

Downward trend towards central bank

target at 3.5% p.y.

Interest

Cuts totaling 325 bps until '26 to reach

Rate

8.5% p.y.

Below 5 BRL in '24, around 5 BRL in '25

FX Rate

and '26

(1) 2024-2026 macroeconomic projection source: Focus BCB (02/23/2024)

Brazil's telecom sector offers great opportunities

for an agile player like TIM Brasil

5 3 players

rollout started with market

Mobile

market with a much more

balanced competitive

offering opportunities for data

stance

monetization

Fragmented market with

Migration to FTTH is still

Broadband

regional players increased

underway offering

competition levels

opportunities

A new market that needs to be

shaped offer huge opportunities as B2B IoT we close Brazil's infrastructure gap

Telecom market

2

Classificado como Uso Interno

TIM Brasil Capital Market Day 2024

TIM Brasil is enjoying the new environment, over-delivering the promises made to the market and outperforming LatAm peers

Service

Revenue (1)

EBITDA (1)

CAPEX (1)

OpFCF (1,2)

Shareholder

Remuneration

SHORT-TERM TARGETS (2023)

High single-digit

growth YoY

Low double-digit

growth YoY

  • 20% on net revenue

Double-digit

growth YoY

>R$ 2.9bn

2023 RESULTS

(ACHIEVED)

+10.7% YoY

+14.2% YoY

18.9%

+58.2% YoY

R$ 1.6bn as IoC

R$ 1.3bn as Dividends

  • Outperforming peers all around (3)
    • Fastest top line and service
  • revenues growth
    • Fastest EBITDA annual growth
  • and highest margin
    • Highest annual growth for
  • OpFCF
    • #Among LatAm Top Dividend
  • Yield players

All figures refer to TIM S.A

(1) Normalized Figures (2) EBITDA AL (after the payment of leases) minus CAPEX (3) Peers: Vivo, AMX, Millicom, Entel

3

Classificado como Uso Interno

TIM Brasil Capital Market Day 2024

Crafting the next generation TIM with a well-defined strategy

MOBILE

B2B

BROADBAND

EFFICIENCY

Most preferred operator

Shaping a new market

Profitable growth

Intrinsic for the business

Cash cow with

Exponential growth

Selective approach,

Strict discipline in capital

increasing returns

opportunity

keeping our options open

allocation and expenditure

PEOPLE, SOCIETY AND ENVIRONMENT

We develop our business, driven by People, Society and Environment

4

Classificado como Uso Interno

TIM Brasil Capital Market Day 2024

Brazilian mobile market is healthier than ever before supporting a more for more strategy

New market dynamics

Valued-based competition increasingly more relevant than volume-based

One of the few large

markets with 5 to 3

consolidation

Market rationality with valued-based competition

Quality perception is the # 1 attribute (1) used to

choose a mobile operator

Service essentiality

High penetration with enrooted impact in daily lives

97% of internet users access it via a mobile device

79% of banking transactions done through mobile (2)

Usage opportunity

Low data usage compared to other countries

GB/month per connection, 2023 (3)

5

6

11 12

17

17

33

Price affordability

Local cost of 1GB mobile data vs. 1 Big Mac (2022)

Percentage of 1GB of mobile data per 1 Big Mac in local currency (4,5)

4% 11%

15%

17%

32%

86%

109%

(1) Internal image survey, Q2 '23 (2) Banking Economics Report 2022, Brazilian Central Bank (3) GSMA Data Traffic, Mobile Connection, 2023

(4) McKinsey data base

5

(5) The Economist

Classificado como Uso Interno

TIM Brasil Capital Market Day 2024

Uniquely positioned to become the most preferred operator

The best value proposition in a

value driven

Best Service

+8.1pp

providing the

best customer

Improving clients

experience

Digital Interactions (1)

YoY in 2023

Best in class in all resolution rankings

(PROCON-SP,

Reclame Aqui and

Anatel) (2)

+43%

Improvement of Human

Interaction NPS in Call

Center YoY in Q4 '23

market

Best Network

1st

from structural

gap to

Operator to cover all

competitive

5,570 cities in Brazil

advantage

with 4G

The MOST

The BEST 5G

awarded(3) network:

Coverage

1. Network Consistency

#1 in 5G (4): 7.8k

Quality Index (ECQ)

sites in 209 cities

2. 1st place in 7 of the 13

covered (Dec. '23)

items evaluated

Best Offer innovative

offerings and

First and only

1st in LatAm to launch a

Strategic partnership

Offering health

partnerships

operator in Brazil

trial offer, encouraging

where recharges gives

services through

to embed Apple

the usage of the best 5G

cashback to be used in

"Cartão de Todos"

One on its plans

network

"Zé Delivery" app

partnership

(1) Includes interactions in app and bot (2) Sources: Procon-SP (Click here), Reclame Aqui (Click here) and Anatel (Click here) (3) Sources: Teletime (Click here) and Tudocelular (Click here)

6

(4) Source: Teleco 2023 (Click here)

Classificado como Uso Interno

TIM Brasil Capital Market Day 2024

Shaping a new B2B market, leveraging our pioneer stance enabling the next wave of productivity for key industries

Brazil's infrastructure

Our B2B strategy focuses

gap offers a compelling

on IoT, while upholding

business opportunity

traditional services

<20%

IoT

On-going

Connectivity Solutions

(HW, SW and services)

of the territory with

network coverage (1)

Starting

>90%

4x

2022

2027

of population covered (1)

IoT revenue growth in

Under

Construction

the next five years (2)

Examples of mapped use-cases

1. IoT Connectivity

Mobile Coverage

Private Network

2A. IoT Solutions beyond Connectivity

Smart Precision Herd

lighting agriculture management

2B. IoT Solutions beyond Connectivity

(5G based)

Autonomous

Video surveillance

Operations

& Analytics

(1) Source: ANATEL (Click here) (2) OMIDIA Cellular IoT Market Tracker H1 '22, 2022-2027

7

Classificado como Uso Interno

TIM Brasil Capital Market Day 2024

Our expansion is being fueled by the significant market growth

potential to be unlocked across key verticals

Our achievements

Market potential to explore

16.6m ha

350m ha

Agribusiness

Current planted area

Total planted and

with TIM connectivity

farming area (1)

>4.7k km

55k km

Logistics

Roads under concession

Highways being auctioned

with TIM connectivity

for mandatory connectivity

in a total of 1.7m km of roads

150K

>15m

Utilities

Installed smart light

poles in PPP(2) for street

poles from TIM

lighting until 2026

B2B contracted

~R$ 425m

Accumulated over the last 2 years

revenues

As pioneers, we have compelling reasons to persist in this direction,

molding this emerging market

…generating growth with incremental OpFCF margin and positive social impact to the countryside of Brazil

Projects' social impacts:

Coverage of 349 public schools,

101 health units, 1.3m rural residents

(1) Source: IBGE, press clipping, CNI

(2) Public-private partnership

8

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TIM Brasil Capital Market Day 2024

There is a noteworthy potential for broadband expansion, with TIM having the best value proposition

Market opportunity

~2% share (1) of ~R$ 40bn market

~2% share (2) of ~47m clients' market

~11% CAGR (3) Growing at the same pace of other large Telcos

TIM Brasil has ROOM to accelerate growth if the conditions are right

Best value proposition

Best offer with the highest speed and best streaming content

Best service with NPS leadership (4) and #1 in OpenSignal consistent quality index

Distinct positioning driving to the highest ARPU (5)

TIM Brasil is READY to accelerate at the right moment

(1) Internal Data (2) Teleco, Dec. '23 (3) All figures refer to TIM S.A (4) Anatel, 2023 (5) Internal Analysis considering main operators Vivo, Claro and Oi

9

Classificado como Uso Interno

TIM Brasil Capital Market Day 2024

Broadband market still fragmented and competitive with convergence never becoming a killer application

Fragmented 8k market with

formal regional players

Incentives for regional

players results in over 26 different market share leaders in Brazilian area codes…(1)

…triggering strong pressure on price per Mbps

and driving a declining trend for FTTH ARPU (2)

Broadband market share:

Non-integrated

Integrated

players: 63%

players: 37%

3-play offer cost:

Average Income representation

Broadband Mobile

TV

of the convergent offer price (%) (3)

+

+

=

R$ 270

16.6% share

of income (3)

Convergence helps churn,

but so does content add-ons

(1) Source: TELECO ("Líderes em Banda Larga Fixa", Aug'23 - Click here) (2) Considering past 6 months (3) Considering the entire population, without filtering by age or work situation

10

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Disclaimer

TIM SA published this content on 07 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 14:55:02 UTC.