TIM S.A.

Hello everyone and welcome to TSA's Earnings Conference for the fourth quarter and full year 2023. Thank you for joining us. I'm Vicente Ferreira, Head of Investor Relations. Today we'll share our highlights on video and then we'll begin our live Q&A session with our CEO, Alberto Grizzelli, and our CFO, Andrea Viegas. Before we can discuss our results and new guidance, I remind you that management may make, and this presentation may contain, forward-looking statements. So, please refer to the disclaimer on the screen, which will also be available in our earnings materials and our investor relations website. With that, we move to our results.

Hi to everyone. I'm Alberto Griselli, CEO of Team in Brazil. I'm very pleased that 2023 was an outstanding year with great achievements and record high results. As we explained during our investor day in November, the Brazilian mobile market is healthier than ever, supporting a more formal strategy. New market dynamics and favorable demand are driving our results to improve across the board. Our service revenues grew in 2023 10.7% year-on-year, totaling more than 23 billion reais. With costs under control, our EBITDA grew more than 14% to reach the highest number in our history, 11.7 billion reais. In this context, our 2023 margin expanded to almost 49%, the highest among the large telcos in Brazil and Latin America. Another metric that measures our efficiency in allocating resources is the capex-to-sale ratio. We closed 2023 with the best result ever, just below 19%, contributing to our operating free cash flow growing more than 58% year-on-year, summing to R4.2 billion. To complete this small summary, our net income rose to R2.7 billion after expanding more than 50% year-over-year. These results explain why we were confident in November in raising our shareholder remuneration target to 2.9 billion reais. To generate such strong numbers, we are developing the best value proposition based on the three B's strategy. Best service, best network and best offer. During 2023, we work extensively to deliver improvements in customer experience. We seek the best service by digitalizing the interaction to accelerate and improve demand resolution. And we are best in class in all resolution rankings of Brazil. At the same time, if a human attendant services a client, the satisfaction with this interaction must be best in class. And we can deliver that. Call center NPS improved more than 40% in the fourth quarter. Meanwhile, we are consolidating our leadership in network coverage and quality in Brazil. We have the largest 4G and 5G coverage, being the only operator to cover all the cities of Brazil. Our network was also the most awarded among the Brazilian operators. We ranked number one in consistent quality, the most relevant KPI to measure a customer's actual experience. To complete, we are innovating to create the best offer, leveraging new concepts and partnerships to generate novelty and distinctiveness. We have launched the first trial offer in Latin America to encourage customers to test our service. We expect this tool to be relevant in changing clients' perception of our quality. We just launched commercially our partnership with Ambev. We are expanding the benefits for prepaid customers using the cashback in the ZDelivery app as a loyalty tool. and it is working. Today, we have the highest blended ARPU in the industry, close to 30 reais and growing nearly 13% year over year. We saw a similar performance in postpaid and prepaid ARPUs, which expanded at mid-teen space in 2023. At the same time, we are improving churn in postpaid, increasing upsell results with upward migrations, and seeing a rise in prepaid spending. Behind these financial and operational numbers is a clear strategy though to craft the next generation team. Under this framework the four pillars mobile, B2B, broadband and efficiency are developed integrating our people, society and the environment into our business strategy. Examples of that are the project in business B2B where we develop a new growth avenue and bring connectivity to countryside of Brazil also produce positive social and environmental impacts. The partnership with Cartão de Todos helps us differentiate our offer to telco customers while providing access to affordable health services. This integration prepares our ESG practices to be recognized as one of the most developed in the country. Team ranked 12th among the best companies to work for in Brazil in the Great Place to Work selection. Sustainalytics also awarded us as ESG industry top rated. Standard & Poor's lists a team among the most sustainable telco companies in the world. And last but not least, we are the most diverse and inclusive company in Latin America and the number one telco in the world ranked by Refinitiv. Our CFO Andrea will now provide additional details on our financial performance.

Hello to all, I'm Andreia Viega, CFO of TIM in Brazil. To reach some numbers and go above our original target for 2023, we closed the year at an excellent pace. In the fourth quarter, sales revenue grew more than 7% year-on-year, with mobile raising 7.6%. while Broadbent expanded 9.5%. With costs under control and reaping the benefits of the M&A transaction, our EBITDA grew in the quarter by 7.5% to reach R$ 3.2 billion, with the margin expanding to 50.2%. Accounting for the leases, EBITDA after lease grew even faster, at a 15% pace, amounting to R$ 2.5 billion. This performance benefited massively from the sharp execution of our decommissioned projects. We ended the year with 4.4 thousand sites decommissioned and 3.8 with contracts canceled. As a consequence of a better depreciation number due to lease reduction and the tax shield generated by the interest on capital, our net income presents a robust expansion of more than 50% year-over-year. With this, net profits reached one of the highest results in TIN's history, summing R$ 900 million in the fourth quarter. Additionally, we saw a vigorous cash generation in the fourth quarter, with operation free cash flow growing more than 50%. year over year, and margin expanding to nearly 19%. For the full year, EBITDA after leasing minus CAPEX over revenues stood close to 18%. With a strong cash position, our net debt fell to R$ 11.6 billion, taking our leverage ratio to one-time EBITDA. All those numbers confirm what a remarkable year we had in 2023. To wrap up this results discussion, I hand it back to Alberto.