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0Cancun – January 12-14th , 2010
TIM Participações S.A(Bovespa: TCSL4, TCSL3; NYSE: TSU)
Santander14th Annual Latin American CEO Conference
1
TIM PARTICIPAÇÕES S.A. | Investor Relations
2008 Issues and Re-Launch Plan Update
New Commercial Approach and Portfolio
Next Challenges
Intelig Deal Concluded
Attachments - Market Facts and Historical Data
2
TIM PARTICIPAÇÕES S.A. | Investor Relations
2008 Issues…
Strategic Indecision:
- 2G or 3G? (slow 3G roll-out, 2G low quality)
- Fixed/Web or Core business - mobile?
- High Price with low quality
Offer obsolete:
- ‘TIM Brasil plans’ (Post-paid Consumer): since 2005
- ‘Nosso Modo plans’ (Post-paid Business): since 2002
- Pre-paid Promotion: Less Competitive (10x vs 20x/30x from peers; End of ‘7 cents’ promotion)
- Customer acquisition model “handset based”
Short-cuts to profitability:
- Price-up in the Q4 2008
- Exit from post-paid market
- Stop advertising and commercial efforts
3
TIM PARTICIPAÇÕES S.A. | Investor Relations
... with a loss of competitiveness and post-paid base
4,6
4,94,7
5,15,3
Pre-paid - Total Post-paid - Voice
Jan-08 Dec-08
Mn Lines
29,825,2 26,2
29,027,3
+4,6 -0,7
ARPM Outgoing
0,27
0,19 0,190,21
0,18
Share of Investment Quarterly Share of investments on TV
Dec-08Jan-08 Jul-08Apr-08 Oct-08
Increased Tariff Stop Advertising
Profitability in the short term
Loss of competitiveness
Marketshare 26,1% 24,2%
R$
Mn Lines
Dec-08Jan-08 Jul-08Apr-08 Oct-08
-1,9pp
17,5%19,9% 22,2%18,2%
1Q 2Q 3Q 4Q
Jul-08Apr-08 Oct-08
Post-paid base erosion
4
TIM PARTICIPAÇÕES S.A. | Investor Relations
TIM’s Strategic Guidelines
Vision:
- Short-term: Voice service will continue to be the killer application
- Voice is the mobile core business; Data is Fixed core business
- Fixed to Mobile substitution will happen in 2010; the process for data is more articulated
Mission:
- TIM is a company that thinks differently and seeks innovative ways for customers to talk more, spending less (MOU intensive strategy, community based concepts)
- The 2G Network is a competitive advantage to follow the MOU growth (capacity) and the Customer Base growth (cover)
- The data are not only brownsing: with microbrowsing it is possible to replicate the same voice’s path (anywhere, any time, for everybody), with consistency andsustainability
5
TIM PARTICIPAÇÕES S.A. | Investor Relations
Our Path in 2009
Customer Base and Market Share
2Q09
Launch of Infinity Plans (Pre and Post-paid)
Loyalty (Handset and Monthly Fee Discounts)
Push on Sales:
- Focused on Post-paid and MNP
- Network Rationalization
- New ways to encourage Usage
MOU
3Q09
Encourage Usage:
- Infinity (Pre and Post) and launch of “Blue”Concept (Local and LD)
- Quick-win of pre-paid clients
Push on Sales and CRM action
Clients migration to new plans (Pre)
Δ Post-paid Clients and SAC/ARPU
4Q09
Focusing on Post-paid:- Liberty- Infinity / ÚnicoGo-2-Market Model: Chip Only, as alternative to traditional modelAcceleration and Network Development: - 2G Capacity - 3G CoverageIntelig
Awareness and Quality
1Q09
Brand: new format and increasing Share of Investments
Network Quality:capacity, access, transportation (LD)
Costumers Satisfaction Recoveryin all Consumer Segments
KPIs
6
TIM PARTICIPAÇÕES S.A. | Investor Relations
Main Achievements
TIM reverses market share trend (net share of 27.3% in 3Q, after 29.1% in 2Q, vs. ~24% of market share)
Improving pre-paid customer base (Infinity Pre-paid: >11 million clients in 6 months)
End of post-paid base erosion, after 15 months (Infinity Post-paid and TIM Único)
Re-launch costs +R$ 0.5 Bln 9M YoYAdvertising, CRC, network quality and commissioning
Self-financing -R$ 0.7 Bln 9M YoYthrough Efficiency PlanInterconnection, Bad Debt and Personnel
ΔEBITDA +6.7% 9M YoYDespite -0.9% of revenues decrease
Brand: improve in Awareness and Top of Mind
Customer Satisfaction:
recovery quality level in all customer segments
Quality: confirmed #2 Anatel (with MOU +30% higher than 1Q09)
Subscriber’s base
Jul ‘08
7.41
Jan ’09
6.60
Jul ’09
7.47Overall
6.22 5.89 6.88Post-paid
Continuous improvement on KPIs QoQ
Sources: ABA (Associação Brasileira de Anunciantes)
Positioning(Brand and Quality)
Positioning(Brand and Quality) Subscriber Base GrowthSubscriber Base Growth Self-financingSelf-financing
7
TIM PARTICIPAÇÕES S.A. | Investor Relations
Brand: improving in Awareness and Top of Mind
Sources: Ibope Monitor, TIM Brasil - Pesquisa de imagem (Synovate – third-party survey institute) and weekly communication tracking* RJ and SP – last week of the month
Share of Investments
Share of Voice
2006 2007 2008 Jan-Aug ‘09
TV – GRP 15”+
2008 Jan-Aug ‘09
TIMPlayer 1
Player 2Player 3
Top of Mind
Oct-Nov07
May-Jun08
Oct-Nov08
Jun/09
•ABA: #1•Folha de SP: # 2
Awareness
May/09 Jun/09 Jul/09 Aug/09 Sep/09
30%32%
15% 16%
29%
24% 19%
17%
26%
31%
26%28% 28%
26%
15%
18%
5%
10%
15%
20%
25%
30%
35%
40%
21%
32%
25%
20%
29%
23%23%21%
41%
27%23%
31%
44%
30%
42%
53%
34%
29% 29%
20%
32% 33%33% 34%
33%
50%
22%
31%
31%29%
28%29%29%27%
30%
27%
22%22%21%20%
19%18%20%
22%
8
TIM PARTICIPAÇÕES S.A. | Investor Relations
Customer Satisfaction: quality level recovery in all customer segments
Customer Care SatisfactionCustomer satisfaction Index
Δ vs lastmeasure
Rankingoct/08 may/09
#1
#1
#1
#1
+0.44
+0.36
+0.72
+0.87
* Jul/09 and Aug/09Sources: TIM Brasil - 12nd Customer Satisfaction Monitoring - may-jun/09; CRC Monthly Satisfaction Research
CRC Average satisfaction, consumer segment
#3
#2
#4
#4
Client satisfaction recovery in all segments
From 0 (dissatisfied) to 10 (maximum satisfaction)
Pre-paid
Post-paid
8.43
8.50
8.06
7.96
Overall
Pre
Post
PostHigh
-0,5
+0,7
+0,5
7.57.4
7.07.1
7.5
6,7
6,9
7,1
7,3
7,5
7,7
7,9
3Q08 4Q08 1Q09 2Q09 3Q09*
6.76.6
6.3
6.06.1
5,7
5,9
6,1
6,3
6,5
6,7
6,9
7,1
3Q08 4Q08 1Q09 2Q09 3Q09*
9
TIM PARTICIPAÇÕES S.A. | Investor Relations
90.7%
97.8%
87.6%
94.0%96.4%
82,00%
84,00%
86,00%
88,00%
90,00%
92,00%
94,00%
96,00%
98,00%
100,00%
4Q08 1H09 jul/09 aug/09 nov/09
Quality: Improvement of Customer Care and NetworkOverall Service Quality – YTD’ 2009 Overall Service Quality – Sept’ 2009
# 2
Network Service Quality (*)
Jan/09 Set/09 Delta (p.p.)
TIM 84.1% 97.3% +13.2
Player 1 100.0% 99.1% -0.9
Player 2 95.7% 96.5% +0.8
Player 3 53.8% 50.0% -3.8
MainMobileOperators
Fonte: Anatel(*) SMP Anatel 3, 5, 6, 7 and 12
86MOU 71 90
-0.2 +5.2 -0.9-7.8-5.1-1.2+2.1
% target achieved in overall service quality, TIM vs. competitors % target achieved in overall service quality, TIM vs. competitors
% target achieved in network quality , TIM vs. competitors % target achieved in TIM network quality
∆ppYTD 09vs. FY08
99.3%96.8% 95.5% 93.9% 92.6%
83.0%
90.2%
Player 1 TIM Player 6 Player 5 Player 4 Player 2 Player 3
99.2% 97.7% 95.5%90.9%
85.5% 81.8%
65.9%
Player 1 TIM Player 6 Player 4 Player 2 Player 5 Player 3
10
TIM PARTICIPAÇÕES S.A. | Investor Relations
Net Additions
-17.2% 34.9% 27.5%
Pre-paidPost-paid
Net Adds YoY Growth (%)
(000’s lines)
(1) (250) (397)
42 87
1,393 1,446
91
1,687 1,687
3Q08 4Q08 1Q09 2Q09 3Q09
1,7741,7291,392
(306)
1,196
N/A-42.9%
..Invert the trend
After four quarters of market share erosion…
… TIM confirmed trend reversal
Net Share (%)
MarketShare (%)
27.3%
23.7% 23.8%
29.1%
17.4% 18.3%
26.5%
12.1%-10.1%
25.9%
25.0%25.4%24.2% 23.5%
3Q08 4Q08 1Q09 2Q09 3Q092Q08
Subscriber Base Growth: Reverting negative trends
1Q08
Returning to increase in post-paid… …and market share
11
TIM PARTICIPAÇÕES S.A. | Investor Relations
Self-financing the Re-launch plan…
Interconnection
Bad Debt
G&A
EBITDA
+0.5
-0.7
8.9 8.8
0
-0.08
+0.59
+0.13
Set-09 YTD vs. YA
-0.9%
+10.0%
+6.7%
-0.9%
3.8 3.1
3.1 3.6
+6.7%
Bln R$
ServiceRevenues
ServiceMargin*
EBITDA
More quality in:•Traffic
(on-net)•Clients•Organization
• Brand Re-shaping
• Recovery Customer Base
• Improve in Margin despite of Revenues decrease
Net Service Revenues
Commercial Expenses
(Fixed and Variable)
Network
1.97 2.10
Sep´-08 YTD Sep´-09 YTD
12
TIM PARTICIPAÇÕES S.A. | Investor Relations
2008 Issues and Re-Launch Plan Update
New Commercial Approach and Portfolio
Next Challenges
Intelig Deal Concluded
Attachments - Market Facts and Historical Data
13
TIM PARTICIPAÇÕES S.A. | Investor Relations
Handset Revenue
SAC / ARPU
Innovative Commercial Approach
Segmented Offers Chip only (for all post-paid plans) Unique and distinctive
• Complete portfolio of plans with
segmented approach
• New Plans based on Community
concept (more than 40 million
clients nationwide)
• Community Free National
Roaming
• Exclusivity in devices (e.g.: Windows
Phone)
• Outsourcing of VAS platforms
multiplatform applications store:
music, games, adult (ex: Qualcomm)
• Presence of TIM in applications
store of main suppliers (e.g.:
“Brasileirão 2009” in Apple Store)
Subscriber Base and UsageMicrobrowsing
Infinity Pre Infinity Post Liberty
• Win-Win-Win:
- TIM: SAC/Bad Debt reduction,
competitive differentiation in
service vs. handset
- Sales: one more option for sales
- Client: flexibility
. Handset Benefit or
. Service Benefit
PlansPlans Business ModelBusiness Model Handsets and VASHandsets and VAS
14
TIM PARTICIPAÇÕES S.A. | Investor Relations
New segmented portfolio: based on Community Concept
SuperHigh
Da Vinci
Infinity Post-paid
Infinity Pre-paid
Infinity ControleInfinity Infinity ControleControle
Infinity 30Infinity 30Infinity 30
TIM LibertyTIM LibertyTIM Liberty
On-Net Off-Net
All Unlimited
Bundle of off-net minutes
Unlimited
Unlimited call
Unlimited Call
Infinity Benefit in Low plan
Cheapest Controle offer in the market and also includes Infinity benefit
Price / Minute
FamilyFamilyFamily Free tariff among Family members
Including LD
Free bundle of minutes
Pre
Controle
Low
Mid
High
15
TIM PARTICIPAÇÕES S.A. | Investor Relations
Increasing LD market share of traffic
(+ 10pp)
~60% of Gross Adds are new Business clients
>11 million clients
Infinity Pós
+40% Post-paid Gross Adds (Voice) Consumer 3Q YoY
9070
1Q09 3Q09
MOU
Leveraging onTIM Community
~40 million clients(Local and DDD)
1Q09 3Q09
% MOU on-net
+8 pp
+30%
Infinity Pré
TIM Único
Mundo Azul
Competitive advantage of
TIM’s offer
New Offers: Fast market reaction
16
TIM PARTICIPAÇÕES S.A. | Investor Relations
2008 Issues and Re-Launch Plan Update
New Commercial Approach and Portfolio
Next Challenges
Intelig Deal Concluded
Attachments - Market Facts and Historical Data
17
TIM PARTICIPAÇÕES S.A. | Investor Relations
•Anytime, anywhere•Critical success factors:
3G Roll-out and smartphone
Microbrowsing
•Anywhere, HSDPA 7Mb/seg
•Critical success factors: spectrum and backhauling
Mobile Browsing
•Always Connect•Critical success factors:
capacity, last mile (fiber) and application
Browsing and connectivity
Kbit/seg
Last MileBackbone/backhaulingRadio Access
CapacityMobility
TIM World Intelig World
•F-M substitution•Critical success factors:
Radio Coverage
Voice
Telecommunication’s Evolution
18
TIM PARTICIPAÇÕES S.A. | Investor Relations
Three waves of growth for the mobile market Driver of growth for the mobile market
Brazilian MarketIn 2012
~216 Mi Lines
~130 MOU
~18% VAS/Revenues
Waves of TIM’s growth
Convergence
2-play (voice & data)
Post-paid - Voice
Customer Base Evolution
Fixed
Web
Post-paid - Voice
Pre-paid
20090.3
0.5
5.0
34.5
139% 117%99% 87%
120%
‘09 ‘12
Sept ‘09
249133
76
833130
‘09 ‘12
MOU, 2Q09
44%29% 24%
12% 18%
‘09 ‘12
% data/Net Service Revenues, 2Q09
A
B
C
Pre-paid
MM acessos
2009 H2 2010 2011 2012
More 15 millionClients
2012
2012
UsagePenetrationand voice access
A B
Today
Broadband
C
H2 2010
19
TIM PARTICIPAÇÕES S.A. | Investor Relations
“Breaking the Rules”
Service Offers:
- MOU intensive
- Community based
- Chip-only
- Differentiation and Segmentation per Area
Handset:
- Focusing on Microbrowsingexperience
Quality
QualityCapabilitiesCapabilities
Inno
vatio
n
Inno
vatio
n
“Best in class”
Network:
- “Close the gap” to “wide the gap” (Coverage)
- Voice Quality (Capacity)
Customer Care:
- Quality on E2E process, products and solutions
- New Caring model and simplifying internal process
“Focusing on Technology Infra-structure”
Push on 2G Capacity and Coverage
A consistency development of 3G Network
Efficiency: back-hauling and fast integration with Intelig Network
Improve IT capabilities
Next Challenges
20
TIM PARTICIPAÇÕES S.A. | Investor Relations
Market Trend
TIMStrategy
Post-paid Offer Pre-paid Offer
Low importanceof the phone number
SAC elevado nos canais vendas
tradicionais (ex: GDO)
Pressure on Promotion:- bonus to on-net local calls- discount on chip (4x1)
High SACLow Differentiation
High Churn
Chip only (Low SAC)Traffic Differentiation:- MOU intensive- Community based
From price per minute to price per call (ARPU accretion)“Azul”: F to M substitution on DDDPush alternative channels Low SACNew services to increase phone number importance
Handset based
High InterconnectionCosts
Low MOUflat para as diretrizes
Increase Customer BaseDecrease of ARPU
Innovation: “Breaking the Rules”
21
TIM PARTICIPAÇÕES S.A. | Investor Relations
Quality: “Best in Class”
Customer Satisfaction Index Consumer Customer Satisfaction Index Business
8,07,58,5
‘09 H1 ‘10 YE ‘10
5,7 6,5 7,0
‘09 H1 ‘10 YE ‘10
Index Index
Target:
#1 on AnatelRanking in
terms of CSI
Offer: simplifying portfolio (focusing on business segment)
Push on clients’ loyalty (focusing on consumer segment)
In sourcing Customer Care to PME segment in 2010
Internal Caring to post-paid high-end (in-house)
Outsourcing Customer Care to consumer segment low-end:
- Focusing on quality in partnerships
- Focusing on process and efficiency
- Responsible for Clients E2E
Process revision on Business segment (sales, after-sales e caring)
Actions to improve
Customer Satisfaction
Churn Rate reduction in all segments
22
TIM PARTICIPAÇÕES S.A. | Investor Relations
North and Northeast Regions
2G Capacity
3G innovation
2G Capacity
Efficiency
Efficiency 3G innovation
Capabilities: “Focusing on Technology Infra-structure”
‘000 Microwaves ~9K MW em 3 anos
6,2
2009 2010 2011 2012
>4.,1K Node B em 3 anos
# Node B
3,9
2009 2010 2011 2012
TRX
>50K TRX em 3 anos
‘000 TRX
92,2
2009 2010 2011 2012
23
TIM PARTICIPAÇÕES S.A. | Investor Relations
2008 Issues and Re-Launch Plan Update
New Commercial Approach and Portfolio
Next Challenges
Intelig Deal Concluded
Attachments - Market Facts and Historical Data
24
TIM PARTICIPAÇÕES S.A. | Investor Relations
Network Footprint
Central
Rede em Fibra Óptica
Estação satelital terrestre Central ATM/IP
Cabo submarino
MANPOP
Central
Rede em Fibra Óptica
Estação satelital terrestre Central ATM/IP
Cabo submarino
MANPOP
Rio Branco
Manaus
Goiás
Campo Grande
Florianópolis
São Paulo
Belo HorizonteVitória
Goiânia
MacapáBoa Vista
Porto Velho
Salvador
Uruguaiana
Joinville
Rib. PretoCampinas
JuizFora
Atlantis 2(Argentina)
Atlantis 2 (Europa)
Globnet (New York e Miami)Américas II (Florida)
Curitiba
Aracaju
Maceió
Recife
Fortaleza
Belém
Uberlândia
BrasíliaDF
JundiaíRio de Janeiro
PortoAlegre
Barueri
Rio Branco
Manaus
Goiás
Campo Grande
Florianópolis
São Paulo
Belo HorizonteVitória
Goiânia
MacapáBoa Vista
Porto Velho
Salvador
Uruguaiana
Joinville
Rib. PretoCampinas
JuizFora
Atlantis 2(Argentina)
Atlantis 2 (Europa)
Globnet (New York e Miami)Américas II (Florida)
Curitiba
Aracaju
Maceió
Recife
Fortaleza
Belém
Uberlândia
BrasíliaDF
JundiaíRio de Janeiro
PortoAlegre
Barueri
% of net revenue
Brief Description
Established in 1999 during the privatization process, being an alternative player (“mirror company”) to compete with incumbent operators
~ 500 employees
Since Jan/08, owned by Docas Investimento(Brazilian Media and Publishing Group)
National and international LD (Code 23)
Voice, data and images transmission nationwide. In 2003, launched a local fixed telecommunication service
Backbone: 14.500 km of fiber optic cables
Fiber optic cables length: ~500.000 km
Metropolitan Network: 18 capitals
Network Asset
Corporate – 100k clients
- LD (national and international)- Data solution for business segment
Wholesale - Data transmission (leased lines)
Retail - Local service (~260k lines)
- ISP (Internet service provider)- LD (national and international)
Business line
~50%
~35%
~15%
Intelig Deal Concluded
25
TIM PARTICIPAÇÕES S.A. | Investor Relations
Before Intelig After Intelig
TIM Brasil Serv. e Part. S.A.
T : 69.86%ON: 81.32%PN: 63.94%
100%
100%
TIM Cel. S.A.
TIM Nord. S.A.
Free Float
T : 30.14%ON: 18.68%PN: 36.06%
TIM Brasil Serv. e Part. S.A.
T : 66.27%ON: 77.14%PN: 60.65%
100%
100% 100%
TIM Cel. S.A.
TIM Nord. S.A.
JVCO
T : 5.14%ON: 5.14%PN: 5.14%
T : 28.59%ON: 17.72%PN: 34.21%
New Shareholder Structure
Free Float
26
TIM PARTICIPAÇÕES S.A. | Investor Relations
Rational behind the Deal
Grow current business New markets
Support long distance traffic growth to
mobile and fixed
Development of own network for data
transmission and 3G coverage
Deploying a network to support the data
traffic sudden increase
Growth in the Fixed residential market :
Revamp of long distance share
Convergent offers: multiple-play
Performance in the Corporate segment:
Convergent solutions (voice and data, F-M)
Custom applications
Gain of Efficiency
Integration of backbone network and
backhauling with leased lines migration
System integration (billing, customer care,
provisioning, processes, commercial)
27
TIM PARTICIPAÇÕES S.A. | Investor Relations
Expected benefits: further profitability, further growth
Reduction of up to 50% of the inertial leased lines costs and structural growth in profitability
Integration completed in April
Saving from Q1 '10, under the Q4 '10
TIM’s Revenue growth driven by the strong growth in Intelig Fixed Business
Expected Costs
Inertial Costs
2009 2010 2011 20122008
~ -50%
Wholesale
Business
Residential
2009 2010 2011 20122008
Efficiency Gains Addressing new markets
Intelig RevenuesLeased Lines Cost
0
200
400
600
800
1000
1200
28
TIM PARTICIPAÇÕES S.A. | Investor Relations
2008 Issues and Re-Launch Plan Update
New Commercial Approach and Portfolio
Next Challenges
Intelig Deal Concluded
Attachments - Market Facts and Historical Data
29
TIM PARTICIPAÇÕES S.A. | Investor Relations
TIM Part. Total Control Free Float
Common 843,281,477 650,537,118 192,744,359
Preferred 1,632,453,583 990,098,811 642,354,772
Total 2,475,735,059 1,640,635,929 835,099,130
100%
100%
77%
61%
23%
39%
100% 100%
(%) (%) (%)
100%
*Jan, 2010
*All Market Panel data refer to Dec 30, 2009.*All Market Panel data refer to Dec 30, 2009.
TIM ParticipaçõesTIM Participações
TIM CelularTIM Celular
TIM Brasil
100%
ON: 77%PN: 61%
Total: 66%
100%
Telecom Italia
Stock Exchange: : BOVESPA
Ticker Symbol: TCSL4 (Preferred)
Price: R$ 5,12
52 Week Price Range:
High – R$ 5.20
Low – R$ 2.64
Stock Exchange: : BOVESPA
Ticker Symbol: TCSL4 (Preferred)
Price: R$ 5,12
52 Week Price Range:
High – R$ 5.20
Low – R$ 2.64
Stock Exchange: : BOVESPA
Ticker Symbol: TCSL3 (Common)
Price: R$ 7,15
52 Week Price Range:
High – R$ 7.95
Low – R$ 4.91
Stock Exchange: : BOVESPA
Ticker Symbol: TCSL3 (Common)
Price: R$ 7,15
52 Week Price Range:
High – R$ 7.95
Low – R$ 4.91
Market Panel*Market Panel*Market Panel*
Stock Exchange: : NYSE
Ticker Symbol: TSU (ADR)
Price: US$ 29,76
52 Week Price Range:
High – US$ 30.13
Low – US$ 11.99
Stock Exchange: : NYSE
Ticker Symbol: TSU (ADR)
Price: US$ 29,76
52 Week Price Range:
High – US$ 30.13
Low – US$ 11.99
Market Capitalization: R$ 13.00 BillionMarket Capitalization: R$ 13.00 Billion Market Capitalization: US$ 7,47 BillionMarket Capitalization: US$ 7,47 Billion
TCLS4 TCSL3 IBOV
Market Facts
New Shareholders StructureStock Performance
(20,0)
-
20,0
40,0
60,0
80,0
100,0
Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
30
TIM PARTICIPAÇÕES S.A. | Investor Relations
Historical indicators: operational results
QoQ YoY% %
3Q09 2Q09 3Q08
Brazilian Wireless Subscriber Base (million) 166.1 159.6 140.8 4.1% 18.0%Estimated Total Penetration 86.7% 83.5% 73.3% 3.2 p.p. 13.4 p.p.Municipalities Served - TIM GSM 2,958 2,944 2,765 0.5% 7.0%Market Share 23.8% 23.7% 25.0% 0.1 p.p. -1.2 p.p.Total Lines ('000) 39,600 37,826 35,206 4.7% 12.5%
Prepaid 33,297 31,610 28,386 5.3% 17.3%Postpaid 6,303 6,216 6,820 1.4% -7.6%
Gross Additions ('000) 5,930 4,855 4,573 22.1% 29.7%Net Additions ('000) 1,774 1,729 1,392 2.6% 27.5%Churn 10.9% 8.6% 9.4% 2.3 p.p 1.5 p.pARPU (R$) 26.5 26.6 30.1 -0.2% -12.0%MOU 90 73 101 23.2% -10.7%ARPM (R$) 0.29 0.36 0.30 -19.0% -1.5%SAC (R$) 113 120 110 -6.2% 2.1%Investment (R$ million) 535.9 422.5 510.7 26.8% 4.9%Employees 9,351 10,174 10,173 -8.1% -8.1%
Numbers are according to previously published earnings release, and therefore, may differ from the subsequent publishing due to rounding and re-classification.
31
TIM PARTICIPAÇÕES S.A. | Investor Relations
Thousands R$
Numbers are according to previously published earnings release, and therefore, may differ from the subsequent publishing due to rounding and re-classification.
3Q08 2Q09 3Q09 QoQ % YoY %
Net Revenues 3.406.923 3.304.252 3.337.481 1,0% -2,0%Services 3.114.872 2.936.240 3.083.348 5,0% -1,0%
Handset Revenue 292.051 368.012 254.133 -30,9% -13,0%
Operating Expenses (2.608.467) (2.568.235) (2.578.700) 0,4% -1,1%Personal Expenses (152.654) (138.181) (144.695) 4,7% -5,2%
Selling and Marketing Expenses (715.019) (829.036) (873.341) 5,3% 22,1%
Network & Interconnection (1.077.171) (920.902) (964.315) 4,7% -10,5%
General & Administrative (101.496) (113.542) (100.954) -11,1% -0,5%
Cost of Goods Sold (378.072) (466.727) (335.308) -28,2% -11,3%
Bad Debt (143.250) (105.949) (99.552) -6,0% -30,5%
Other operational revenues (expenses) (40.804) 6.102 (60.534) - 48,4%
EBITDA 798.456 736.016 758.781 3,1% -5,0%
EBITDA - Margin over total net revenues 23,4% 22,3% 22,7% 0,5 p.p. -0,7 p.p.
Depreciation & Amortization (617.988) (647.451) (663.684) 2,5% 7,4%
EBIT 180.468 88.565 95.097 7,4% -47,3%
Net Financial Results (152.943) (65.857) (61.865) -6,1% -59,5%
Income (loss) before taxes and Minorities 27.526 22.708 33.232 46,3% 20,7%
Income tax and social contribution (39.579) (37.956) 27.579 - -
Net Income (Loss) (12.053) (15.247) 60.811 - -
Historical indicators: financial results
32
TIM PARTICIPAÇÕES S.A. | Investor Relations
Statements in this presentation, as well as oral statements made by the management of TIM Participações S.A. (the “Company”, or “TIM”), that are not historical fact constitute “forward looking statements” that involve factors that could cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward looking statements. The Company cautions users of this presentation not to place undue reliance on forward looking statements, which may be based on assumptions and anticipated events that do not materialize.
Statements in this presentation, as well as oral statements made by the management of TIM Participações S.A. (the “Company”, or “TIM”), that are not historical fact constitute “forward looking statements” that involve factors that could cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward looking statements. The Company cautions users of this presentation not to place undue reliance on forward looking statements, which may be based on assumptions and anticipated events that do not materialize.
Investor Relations
Avenida das Américas, 3434 - Bloco 016° andar – Barra da Tijuca22640-102 Rio de Janeiro, RJPhone: +55 21 4009-3742 / 4009-3446 / 4009-4017Fax: +55 21 4009-3990
Investor Relations
Avenida das Américas, 3434 - Bloco 016° andar – Barra da Tijuca22640-102 Rio de Janeiro, RJPhone: +55 21 4009-3742 / 4009-3446 / 4009-4017Fax: +55 21 4009-3990
Visit our Website
http://www.tim.com.br/ir
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