TIM S.A.

Good morning ladies and gentlemen. Welcome to Team SA 2026 first quarter results video conference call. We would like to inform you that this event is being recorded and all participants will be in a listen-only mode during the company's presentation. There will be a replay for this call on the company's website. After Team SA remarks are completed, There will be a question and answer session for participants. At that time, further instructions will be given.

Hello, I'm Vicente Ferreira, Investor Relations Officer of Team Brazil. Welcome to our earnings call. We will reveal our recent results and the evolution of our strategic plan, then open the floor for a Q&A with CEO Alberto Griselli and CFO Andrea Viegas. Before we begin, please note that management may make forward-looking statements, so please refer to the disclaimer on the screen and on our Investor Relations website. Now, let's review our results.

Hello everyone, I'm Alberto Gritelli, CEO of Team Brazil. In early 2026, we prioritized execution amid rising external volatility and increasingly unpredictable conditions in Brazilian Telecom. The year began with relevant M&A activities, preparation for a spectrum auction, and new below-the-line offers, among other minor news. Despite that, mobile remains rational in broad terms, so much so that operators were able to recover inflation during this first month of the year. For Tim, clearly uplining our priorities has been essential. We aim for disciplined growth and cash flow generation as we advise our strategic initiatives. To summarize, in first quarter 26, we finalized the agreement with V8, are close to completing the iSystem deal, rolled out our annual mobile offer updates, enhanced our new B2B approach, and consolidated our broadband recovery. On top of that, the first quarter confirms our consistency of our financial performance and strengthened BIM's long-term foundation. From first quarter 26 financials, I want to highlight service revenue growth of 6.5% year-over-year, driven mainly by mobile and supported by continued improvement in fixed. Mobile service revenues grew 5.6%, confirming the resilience of our core business. Profitability also evolved positively. A bid that grew at a solid pace and the bid after list increased 7.8%, reflecting efficient initiatives and disciplined cost management. At the same time, operational cash flow grew 16.8%, reinforcing the strength of our cash generation. These results reflect consistent choices around commercial discipline, cost control, and capital allocation. To provide further insights, let's discuss our recent mobile performance. Postpaid remains the main contributor to growth. In the quarter, post-paid revenues increased 7.5% year-over-year, supported by customer-based expansion and disciplined monetization. We continually adjust our go-to-market strategy to achieve balanced growth and profitability, attract suitable customers, manage earn, and offer sustainable propositions. Revenues are still contracting year over year, but since a part of this loss is self-inflicted by pre-to-post migrations, we see for now stabilization in the base of the client as the good news. We continue to work on prepaid offers to better monetize them while improving the customer journey. Our 3D strategy, by network, by offer and by service, continues to drive our consistent performance in mobile. In Best Network, we are advancing network shops in Brasilia and Belo Horizonte, modernizing over 1400 sites and benefiting 3 million customers with the upgraded 5G. These upgrades improve capacity, quality, operational efficiency, and strengthening the foundation of our mobile business under an AI-supported network. Under the software, our Big Brother Brazil sponsorship supported brand engagement and commercial traction during the quarter, translating visibility into tangible business impact. And in their service, the MyTeam app remains central to our digital strategy. The app reached 18.4 million monthly unique users and expanded its role in customer interaction, saves and recharges, contributing to a more efficient service model. Our 3B strategy will continue to be developed to deliver results in the mobile core while we also seek new revenue opportunities through partnerships. At the end of the quarter, we closed a partnership with PicPay the third largest digital bank in Brazil, marking our return to financial services through an ecosystem-based model. This partnership brings together two strong brands and massive rich platforms to build a unique value proposition for clients with the potential to create significant value for both companies. BigPay in green scale with 67 million accounts, 550 billion reais in consolidated TPV, and strong engagement in digital payments. By joining forces, we aim to enhance customer engagement, increase interaction frequency, and create cross-selling opportunities through simple, fully digital journeys, ultimately delivering a more complete and integrated experience. Next, I'd like to turn to broadband and share written developments. In first quarter 26, the 16th has continued to show operational improvement Revenues were up for the second consecutive quarter, supported by ARCO growth and by fourth consecutive quarter of positive net additions. These results reflect better execution, improved sales quality, and a more disciplined commercial approach in selected markets. If broadband is a game of consolidating our recovery, B2B is about acceleration and delivery. As you all know, B2B has become a key pillar of our strategy to diversify revenues and expand beyond traditional connectivity. Our focus continues to be on connectivity-led solutions, particularly networked services and IoT, across verticals such as agribusiness, utilities, logistics and industry. In the quarter, contractor revenues reached approximately 1.1 billion reais, representing 30% year-over-year growth. This performance reflects both new projects and the scaling of existing contracts, supported by our capillarity, technical expertise and disciplined execution. A relevant milestone this quarter was our partnership with Axia. Together, we will implement the first hydropower plant in Brazil with 5G connectivity. This project illustrates how advanced connectivity can support safer operations, higher efficiency, and new digital use cases in critical infrastructure, reinforcing our position in utilities and energy. Another strategic step was the acquisition of V8. This transaction has capabilities in cloud, data, analytics, and digital solutions, along with strong relationships across corporate accounts. By combining V8 expertise with in-scale and connectivity success, we expand our ability to deliver more integrated solutions and accelerate cross-selling opportunities. Since we are talking about technology, I want to give you an update on our artificial intelligence initially. Our AI program is becoming increasingly more transformative for the company, changing the way we do our daily activities, the way we hire and manage our people, and the way we plan and roll out our products. We are adopting agentic AI and other AI-based solutions across the organization to run a range of tasks with varying levels of complexity. Productivity gains are becoming more pronounced. Early results in areas such as IT show gains of above 20% in software development. Faster cycles, lower ET costs, and improved system performance are supporting the first phase of a long-term transformation. Additionally, we are expanding our partnership with Google and Microsoft to deploy AI solutions across the entire organization while managing token usage through the FinOps approach. Looking ahead, our priorities remain clear. We will continue to strengthen our mobile business by improving network quality, evolving our offers, enhancing service, while expanding our ecosystem through partnership. We will sustain operational improvements in broadband, and in B2B, we will continue scaling capabilities through connectivity, digital solutions, and V8 integrations. The first quarter of 2026 demonstrates our unwavering commitment to progress, innovation, and disciplined execution. We are building sustainable values step by step, and we are well positioned to seize future growth opportunities. Thank you for your continued trust and support. Now, let's move to the live Q&A session.