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 |
Classificado como Uso Interno
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 |
Classificado como Uso Interno
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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 14:47:07 UTC.