TIM S.A.

Hello everyone and welcome to TNSA's Earnings Conference for the first quarter of 2024. Thank you for joining us. I'm Vicente Ferreira, Head of Investor Relations. Today we will share our highlights on video and then begin our live Q&A session with our CEO, Alberto Grizzelli, and our CFO, Andrea Viegas. Before we discuss our results, I remind you that management may make forward-looking statements and this presentation may contain them. Please refer to the disclaimer on the screen, which will also be available in our earnings materials and in our Investor Relations website. With that, we move to our results.

Hello to everyone, I'm Alberto Griselli, CEO of Team Brazil. I'm very satisfied that we started 2024 at a solid pace. We are reaping the benefits of a well-designed plan and a sharp execution. We continue to see a healthy mobile market supporting a more-for-more strategy. We are taking advantage of favorable market dynamics to develop our 3Bs approach further and deliver solid results across the board. we have a solid above-inflation expansion in service revenues growing above 7% year-on-year. With costs under control, our EBITDA grew double-digit and the margin expanded by more than 100 basis points. Our proxy for operating free cash flow reached a record high for the first quarter, growing approximately 60% year-over-year. These solid financial results are accompanied by consistent improvement in our services, offering innovation and a consistent development of our infrastructure. 5G rollout continues to be the main focus of our network strategy. As I mentioned, our best service, best network and best offer are at the core of our strategy and serve as the foundation for building the best value proposition. Consequently, we continue to work on these three fronts. Still, we also intensify the activities related to convincing clients and potential clients of the transformations we are implementing at the company. During the first quarter, in the best service category, we consolidated our efforts to improve customers' experience with several achievements, as, for example, the efficiency award from the Consumer Protection Agency of São Paulo, reminding you all that it is now almost a year that TIM is the only company in Brazil to have received such important recognition. In Best Network, we expanded our 5G coverage, increasing the number of cities and, more importantly, broadening the coverage inside the cities for a better experience. In March, we were recognized by OpenSignal as the operator with the best reliability experience in Brazil, besides consolidating our number one position in network quality. In best offer, we boosted our in-flight connectivity package, adding support for streaming services. We combine all these initiatives and others to deliver the best value proposition in the market to help change customer perception and improve brand recognition. This is a long process and it is challenging, but it is the only way to achieve our aspiration of becoming Brazil's preferred mobile operator. Gradually and consistently, things are moving in the right direction. In Mumbai, we saw improvements in postpaid churn with a rate of 0.8% per month in the first quarter, which reflects improved customer satisfaction and loyalty. At the same time, postpaid net additions totaled 415,000 new lines with a solid sequential improvement quarter by quarter, while migration for prepaid to postpaid increased by 11%. Total ARPU expanded close to 9% year-over-year, surpassing the 30 reais mark. Maintaining the value strategy with improvements in volume, we were able to possess solid growth in mobile service revenues of 7.4% in the quarter. Our B2B endeavors continue to evolve fast. We are now putting all our efforts under the umbrella of a team IoT solution brand. To start on the right foot, we launched the first offering partnership with CNHI, bundling our connectivity with CASE's smart machinery. We also closed a large partnership with BP Bunger. As for fixed broadband, we are performing well despite a very tough environment. Our revenues grew more than 9% year over year, while our base increased by more than 10%. We maintain the focus on the right balance between growth and profitability. And this is how we build the next generation team, bit by bit.

Hello, everyone. I'm Andrea Viega, CFO of TEAM. Alberto already pointed to solid and consistent results. The implementation of our plan is bearing fruit as the long-term benefits of the consolidation become increasingly clear. In the first quarter, the top line grew 7.3 year-on-year, with positive contributions from all revenue lines. With costs under control, our EBITDA grew by almost 11%, with the margin increasing by 140 base points to reach 47.4%. Regarding leases, EBITDA after lease grew even faster by 20% and amounted to R$ 2.2 billion. This performance continues to benefit from the decommissioning project. which has reduced recurring lease payments by R$100 million since Q1 2023. The beached-after-leases margin grew impressively by 400 base points due to efficiency in OPEX and leases. Despite the negative impact of financial expenses, our net income grew by 19%. Benefits from the tax shield provided by interest and on equity and a consistent performance in DNA. In addition, we record a strong increase in operation cash flow of almost 6%. Seasonality has a net negative impact on working capital and capex. but this is no cause for concern as they are developed in line with our plan and will improve as we move forward this year. In this scenario, we maintain a strong balance sheet while navigating the uncertainties of the Brazilian macro and political environment. Once again, I am pleased with the figures we are delivering, which makes me confident that we will achieve our guidance by the end of the year.