TIM S.A.

Hello everyone and welcome to TNSA's earnings conference for the second quarter of 2024. Thank you for joining us. I am Vicente Ferreira, Head of Investor Relations. Today we share our highlights on video and afterwards we'll have our live Q&A session with our CEO, Alberto Griseli, 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 is also available in our earnings materials and on our investor relations website. With that, let's move to our results.

Hello, everyone. I'm Alberto Griselli, CEO of Team Brazil, talking from our headquarters in Rio de Janeiro. I'm pleased to share the highlights of our solid second quarter 24 results. Despite some macro challenges, we are taking advantage of favorable market dynamics to develop further our three-breeze approach and deliver robust results across the board. In the second quarter, we maintained the pace, growing our service revenue high single-digit year-over-year, our EBITDA grew above our revenues, sustaining margin expansion despite tougher comparative phases. Our proxy for operating free cash flow reached a record high for the second quarter, growing approximately more than 20% year over year. These solid financial results are accompanied by improvements in our services, innovation in our offerings, and consistent infrastructure development. Our results are driven mainly by mobile services, with revenues growing by 7.3% compared to Q2 2023. Consequently, ARPU is expanding by 6.8% through more-for-more initiatives and migration strategies. Our customer base profile continues to improve with post-pay net addition accelerating to solid levels. In second quarter 24, we added 458,000 clients. We combine initiative to reduce churn and expand migration from prepaid to postpaid to support this performance. Behind these numbers is a sharp execution of our 3B strategy. Building the best offer in the market requires an innovative mindset, bringing novelties valued by the customers at the right price. In the coming weeks, we will showcase our new postpaid portfolio with the best control plans in the market. The best network combines excellent coverage with the best availability and quality. As you know, the team ranks number one in those metrics in 5G and overall. Building this while reducing capex pressure requires an innovative and efficient approach. An example is the new 4G and 5G integrated antenna we developed with one of our vendors, which increases capacity and coverage at reasonable prices. To deliver the best service, we are changing our portfolio of offers and improving how we serve our clients more effectively. We are increasing first call resolution rates and facilitating digital interactions, therefore call center MPS is improving and we continue to outperform the sector in resolution rankings. Moving to the other areas of our operation, our fixed broadband unit is performing well despite fierce competition. The focus remains to grow with profitability, so we kept revenue expansions at high single digit, while our FTTH base increased double digit. Our team IoT solution continues to evolve fast, winning new connectivity contracts while developing end-to-end solutions. In the last 12 months, we added close to 280 million reais in contracted revenues, growing in the three verticals we selected. Before Andrea joins us for this update, I'd like to remark on how effectively our 360-degree approach to productivity and efficiency It's helping teams reduce cash cost pressures while improving customer satisfaction with technology and discipline. We have done a great job with digitalization in the past years. However, there is room for additional improvement. Two examples. PIX is the new frontier for ePayments and MyTeamApp will contribute more to our digital interaction after its new version is released. In terms of our infrastructure, the network sharing with Vivo was resumed. We should accelerate more, but we are back working on the 2G shutdown and the single grid. On another front, we recently closed new agreements with vendors for our access network. We are bringing new 5G technology at an effective cost to improve the quality of our customers. Our AI initiatives are moving from pilot to full rollout. Two of the 10 use cases mapped to be tested in 2024 have completed their testing period and we are rolling them out until the end of this year. During the test, the Team AI X customer care co-pilot showed a decrease in average service time and increased satisfaction. For network predictive maintenance, the test showed that our system was able to predict failures and we were able to resolve them. Our hypothesis that generative AI could benefit Team by reducing cost and increasing customer experience is holding so far. We will keep you updated on this topic in the coming months. Now I will pass over to Andrea to talk more about our financial highlights.

Hello everyone, I'm Andrea Vieira, CFO of TIM. As Alberto mentioned, we delivered robust results across the board. The top line grew 7.5% year-on-year this quarter. with positive contributions from all revenue lines. Our EBITDA showed solid performance despite a tougher comparative basis. It grew more than 8%, with the margin reaching an all-time high of 50% for a second quarter. Considering the lease's effects, EBITDA after lease grew by almost 14%. This performance continues to benefit from the decommissioning project. which has reduced recurring lease payments by R$ 56 million versus second quarter 2023. The bid-after-lease margin grew notably by more than 2% points year-over-year. In this quarter, our net income grew by more than 20% year-over-year, benefiting from the overall operational performance and positive effects at the DNA line. In addition, we recorded a substantial increase in operation cash flow of almost 24%, with the margin expanding to 24.4%. As we explained last quarter, the seasonal negative impacts on working capital and CAPEX are reverting. CAPEX will close the year inside our guidance bands, with no material impact from FX. and working capital should be positive in the second half. 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, even with a more challenging comparison base in the second half. Now, back to Alberto.