TIM S.A.

Good morning, ladies and gentlemen, and welcome to ChinaSei 2024 Third Quarter Results video conference call. We would like to inform you that this event has been recorded and all participants will be in listen-only mode during the company's presentation. There will be a replay for this call on the company's website. After ChinaSei remarks are completed, there will be a question and answer section for participants. At that time, further instructions will be given.

Hello everyone and welcome to Team SA's Earnings Conference for the third quarter of 2024. Thank you for joining us. I'm Vicente Ferreira, Head of Investor Relations. This video shares the key highlights of our recent performance and the strategic initiatives we are implementing to continue our sustainable cash flow growth. Afterward, we will host a 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, also available on our Earnings Materials and Investor Relations websites. With that, let's move to our results.

Hello everyone, I'm Alberto Griselli, CEO of Team Brazil. Once again, we deliver solid financial and operational results in a quarter marked by cash flow generation. But before we discuss our results in detail, let me introduce a relevant part of our effort to improve our brand perception. In September this year, the Rock in Rio Festival took place. This is the biggest music festival in Latin America, lasting seven days and attended by more than 700,000 people. Tim is a master sponsor, which reinforces a connection between the company and music that dates back to 2003. Since then, we have kept this connection, but now we are expanding this as a platform to reshape clients' perceptions of our brand. Mobile network operates in extreme conditions during this type of event, so we used the music festival to showcase our 5G network strength and reliability while innovating in how we interact with our clients and prospects. This year's results were remarkable. Tim was the number one brand mentioned with enormous favorability and colossal brand exposure. We expect that investment like this will help us close the gap in brand perception and clear the way for future growth. Back to our financial results. In the third quarter, we achieved a 6.1% growth in service revenues, outpacing inflation and maintaining the sustainability of our revenue dynamics in face of already expected tougher second half of the year. Our revenues were driven mainly by mobile services, which expanded by 6.3% compared to Q3 2023. Mobile ARPU is an important lever, rising close to 5%, while postpaid customer base improved with migration and a new record low churn at 0.7%. Our EBITDA grew by 7.5% during the same period, with another quarter of margin expansion. After third quarter 2024, we have 13 quarters of expanding margins confirming our ability to push the boundaries of efficiency. Our proxy for operating cash flow reached a record high for a third quarter. growing above 20% year over year. As a percentage of revenues, we reached 25% in Q3 and more than 21% in the first nine months of 2024. We have the highest cash conversion in the industry. These solid financial results are accompanied by innovation in our offers, consistent infrastructure development, and improvements in our services. We continue to develop the 3B concept. So, to build the best offers, we focus on the best value proposition. As we promised last quarter, we launched the best control plans in the market. This comes as a part of a full revision of our post-paid portfolio, establishing new price points to facilitate upselling while reviewing benefits and smoothing customer journey. This proactive approach to managing our customer base is helping to increase loyalty and improve churn. Our post-paid customer base is sustaining a solid pace, growing close to 8% year-on-year and 2% quarterly. In prepaid, we launched a new proposition with adjustment to our go-to-market, aiming to improve our performance in this segment and to open opportunities for future growth. The second B of Best Network combines the largest coverage with the best quality and reliability. As you know, TIM is the only operator to cover all cities of Brazil with 4G and is also number one in cities with 5G, very close to 500 municipalities. We are widening our leadership in consistent quality and we ranked first in reliability, a key metric for customer experience and more important than download speeds. To deliver the best service, we work on addressing today's challenges while building an evolutionary path with artificial intelligence. TIM is increasing first call resolution rates and facilitating digital interaction to maintain service quality at the highest standards efficiently. Therefore, call center NPS is improving and we continue to outperform the sector in resolution rankings. Our AI initiatives continue to evolve. TIM AIX is 100% rolled out to more than 5,000 attendants. Speech and text analytics are producing insights into consumer complaints to improve and accelerate caring activities. Before Andrea joins us, I'd like to touch on an important topic for advancing our business. As we presented during our investor day a year ago, we have been working on expanding and developing new growth avenues, such as our digital ecosystem and our B2B. The expansion of this digital ecosystem is focused on verticals such as health, mobile ads, data monetization, and education, using partnership with consolidated companies. Through venture capital investments, we use our 5G funds with upload ventures to explore other segments with startups and scale-ups. Mobile ads and data monetization more than doubled the revenues in the past 12 months as we consolidate our position as a relevant player in these markets. In health, after the soft launch, we learned and adjusted the go-to market and now we are bringing roughly 20,000 new customers to our partner. In education, since the beginning of the partnership, more than 700,000 people subscribed to courses. Our fund now has two investees, with promising addressable markets to be explored. In the coming weeks, we will announce initiatives in a new vertical to open further opportunities for teams. Regarding B2B, we are accelerating our execution to develop new IoT markets in Brazil. We closed this quarter with more than 600 million reais in contracted revenues, with two very relevant new contracts signed. Additionally, we have a solid pipeline of potential clients for the coming months. Here we also expect to go beyond the already known agri, street lighting and highways vertical. Stay tuned for novelties before the year end. Now we move along to more financial details with our CFO Andrea.