#1INNOVATION NEVER STOPS. 2020-2022 Strategic Plan March 16, 2020 tim.com.br ■TIM#2Disclaimer ווה This presentation contains declarations that constitute forward looking statements regarding the intent, belief or current expectations of the customer base, estimates regarding future financial results and other aspects of the activities. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected as a result of various factors. TIM Analysts and investors are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this presentation. TIM Part undertakes no obligation to release publicly the results of any revisions to these forward looking statements. Financial results are presented considering impacts from IFRS 9 & IFRS 15 adoption, disconsidering impacts from IFRS 16 adoption, except otherwise indicated. TIM Brasil | Investor Relations Strategic Plan 2020-22 2#3TIM Brasil 2019-'21 Recap Solid Achievements Delivered Despite Challenges Net Service Revenues 1,2 R$ 16.6 bln (+2.4% YoY) Net Service Revenues Growth² (% YoY) Mobile ARPU² (R$) до 3.2% 3.0% 23.7 2.4% 22.5 +5.6% 1.0% TIM Live 1,2 R$ 491 mln (+30.6% YoY) 1Q19 2Q19 3Q19 4Q19 2018 2019 ( Network evolution supported by innovation: 5G trials, massive- MIMO, refarming, MOU with Vivo Improved network customer (((p))) experience recognized by independent measures Assertive adjustment in offers' portfolio, back to the right pace of go-to-market EBITDA 1,2 EBITDA Margin³ EBITDA - CAPEX³ R$ 6.8 bln (+6.7% YoY) (% on Revenues; R$ bln) 36.6% 38.5% 39.8% 15.6% 16.9% เจ 31.5% 33.5% 11.1% 6 consecutive years of EBITDA growth (CAGR 15-19: 6,5%) TIM 2015 2016 2017 2018 2019 The year 2019 confirms the company's transformation in the last 5 years. (1) In 2019; (2) KPIs ex-IFRS 16 impacts; (3) Adjusted, pro-forma basis (excluding IFRS 9, 15 and 16 impacts). 3.7% 4.7% 1.8 2.7 2.9 0.6 0.7 -> 2015 2016 2017 2018 2019 Image recovery in all segments Record high organization climate results TIM Brasil | Investor Relations Strategic Plan 2020-22 3#4Strategic Pillars It is Time to Move Forward: Evolution Plan to Further Develop Initiatives Already in Place. Transformation Plan to Reshape Company's Skills Over the Next 3 Years EVOLVE → Move from volume to value to sustain mobile business growth → Grow on broadband with financial discipline TRANSFORM → New operating model to address current and future challenges → Additional growth through adjacent markets TIM 3. MOBILE (PREPAID, POSTPAID AND B2B) 1. INFRASTRUCTURE 2. DISRUPTIVE EFFICIENCY 4.UBB (B2C, B2B) 5. NEW REVENUE SOURCES 6. ESG TIM Brasil | Investor Relations Strategic Plan 2020-22 4#5Infrastructure Summary Act Today to Be Ready for the Future IT to the next level in 18-24 months Big data evolution NBA roll-out Cognitive systems Application and Catalogue architecture review creation Network 5 key pillars Data Growth (13) 5G ready TIM New initiatives ((‹³)) IoT Fixed Broadband Benefits: Customers' Integrated view Time-to- market New capabilities Automation of processes and efficiency increase Fixed Decommissioning Wireless Access Savings New loT businesses opportunities Densification and innovative solutions Convergent architecture Evolution Transformation TIM Brasil | Investor Relations Strategic Plan 2020-22 5 1#6IT Short-Term: Supporting Efficiency while Improving Customer Experience Back to the Basics with Short-Term Initiatives SA Operation stabilization IT costs control Tuning service creation process по ΔΟ New sourcing model حلام A Delivery process monitoring IT functions consolidation Improve IT operations, increase level of reliability, assess main weaknesses, monitoring E2E business processes Speed up system decommissioning and architecture simplification, complete existing projects Streamline the service creation process on the current architecture in order to decrease the time to market, waiting the boost offered by the future digital architecture Align the sourcing model with the business strategy, with an improved vendor accountability and an E2E management of the perimeter Put under control through metrics the delivery process, including budget spending, quality assurance, vendor rating, restore the internal competence center for the productivity monitoring Align the internal organization with the business strategy, increasing the accountability for each area and preparing for future organization TIM TIM Brasil | Investor Relations Strategic Plan 2020-22 6 1#7IT Long-Term: New Capabilities and Services, Reducing Complexity and Increasing Customer Satisfaction Transformational Projects to Build the Future Cognitive solution Enable new use cases integrated with NBA and Big Data ((:1) 1 0 7 8 OPEN Transformation programs harmonization 5G generation habilitation Journey to cloud New process and delivery Mobile payments Legacy vs Digital Market Place Harmonize the transformation programs already launched and align them with the TI architecture Prepare IT to support new business models enabled by 5G technology Create a journey to cloud strategy and a roadmap aligned with the TI architecture Enable the practice of managing two separate but coherent styles of work, one focused on digital/systems of engagement evolution and the other on the system of record evolution Introduction of IT capabilities to support new way of payment Create a "digital twin", able to attend the best Time2Market expectations strongly decoupled with the legacy architecture. Align with TI architecture Plug-in industrial consolidation, making possible new selling capabilities TIM TIM Brasil | Investor Relations Strategic Plan 2020-22 7 1#8Network Summary Transformation Initiatives to Thrive Efficiency and New Business Opportunities Data Growth JB 5G ready ((c)) Fixed Broadband IoT New initiatives 1 New services requirements: increasing efficiency to cope with data demand → Deep infra sharing → 80% of new sites will be Biosites → Indoor sites densification → Massive MIMO → IP/Optical convergence TIM Innovate with 5G, evaluating spectrum limitation vs new services to technology development → 5G spectrum Auction → Launch of main cities → Cluster approach (MAN) at 5G cities → Core evolution Support fixed BB growth with agnostic approach and consistent convergent architecture → Content distribution → Resilience improvement → FTTH vs FWA New opportunities becoming reality: "Network slices" for service optimization → Multi access edge computing → New loT services → NB-IoT expansion → Virtualization through SD-WAN Decommissioning and convergence of network to boost savings → E2E legacy decommissioning → Sky coverage → Partnerships (MOU Vivo) → 2G/3G consolidation TIM Brasil | Investor Relations Strategic Plan 2020-22 8#9Network Efficiency Mobile Shift to 4G Network Still in Progress as a Way to Improve Quality and Reduce Cost to Serve 4G COVERAGE (# cities) 3,520 3,272 >4k Total 700 / 850 MHz x; TRAFFIC MIX EVOLUTION 2,455 Better indoor experience. 1,426 2018 2019 2020 2021 2022 4G 76% 75% 92% ACCESS NETWORK ('000 SITES) TIM 19 17 ~22 2G/3G 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 TIM Brasil | Investor Relations Strategic Plan 2020-22 9 1#10Network Support and Acceleration Fiber Expansion to Support Business Continuity and Ultrabroadband Acceleration FTTH (# cities) HOME PASSED (mln) UBB Transport Network TIM 23 11 -70 2.3 1.1 ~5.5 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 FTTCity (# cities) 821 601 BACKBONE + BACKHAUL ('000 km) ~1.5 101 90 >130 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 TIM Brasil | Investor Relations Strategic Plan 2020-22 10 1#11Holistic Efficiency Approach Disruptive Efficiency to Address Industry Challenges Process efficiency Digital & Automation Make vs buy Smart CAPEX 2 Gaps as opportunities: Close gaps and surpass the benchmark. → Bad Debt (e.g. new credit models, collections systems improvement) → Legal processes (e.g. predictive models to reduce JEC expenses - special court for small cases) TIM Brazilians are already digital: unique environment opportunity. → Self-Provisioning (e.g., Naked SIM) → Self-caring: Cognitive IVR and WhatsApp services (e.g., second invoice, balance check and etc.) → Self-healing (e.g., technical resolution for broadband services) Productivity: focus on the core. → Administrative processes (e.g. ground leasing) → Pay-roll management IT Planning & Development Being competitive: increase return on investment by focusing it where we can apply differentiation. → Industrial agreements (e.g. VIVO MoU) → Innovative Technologies (Massive MIMO) → TIM Live's Transformation with partnership → Cloudification (storage as commodity) TIM Brasil | Investor Relations Strategic Plan 2020-22 11#12Mobile: From Volume to Value Innovation Positioning with Unique Assets to Leverage Premium price Convergence P3 22 P2 TIM TIM 2019 TIM 2022 Innovation 4G: Widest Coverage and Availability. Regional Leadership: Solid presence in North- East and Paraná/Santa Catarina. 3 " TIM P4 2014 Low price Ensuring execution and customer satisfaction to succeed. Financial Discipline: Positive performance over the last years, leanest Opex structure, capability of cash flow generation. TIM Brasil | Investor Relations Strategic Plan 2020-22 12#13Mobile: From Volume to Value Move from volume to value to sustain mobile business growth, leveraging CEX Residual growth: churn management becomes more important MOBILE UNIQUE USERS (mln) 139 146 104 Reduce churn POSTPAID CHURN RATE (% p.m.) 3.5% 3.8% → Eliminate pain points: discount management -0.6 p.p. until 2022 → → Lock in high propensity customers Improve service level Playing by opportunity, meeting clients true needs CUSTOMER BASE MIX (min) TIM MOBILE CUSTOMER BASE BY SEGMENT (mln) 36 33 167 185 117 Prepaid 56 Attack all segments 30 82 Postpaid Postpaid >45% in 2022 20 21 Increasing "share of wallet" SIM PER UNIQUE USERS¹ (mln) 1.9 2010 TIM 1.7 1.4 2015 2020 2022 TIM MOBILE ARPU (R$/month) 23.7 ARPU increase 22.5 → Prepaid: acceleration w/ regional + smart promo, channel management → Postpaid: brand positioning, and outstanding customer service level → SMB: consumerization CAGR 19-22: low to mid single digit → Unlock upselling opportunities → Price with "more for more" approach → Boost big data, data analytics, NBA capabilities 2018 2020 2022 TIM Brasil | Investor Relations Strategic Plan 2020-22 13 3#14Broadband: Acceleration Broadband Revenues will be the Lever for Fixed Business Growth FROM EVOLUTION... FIXED NET REVENUES (R$) TIM Live Others TIM Live >30% CAGR 19-22 2018 2019 2020 2021 2022 TIM +15 +42% FTTX CUSTOMER BASE (mln) cities households covered 2018 2019 2020 2021 Footprint expansion and operational improvement Cherry picking deployment, Reduce early churn, Improve care and self-care, Reliable bill to cash processes Differentiation: UBB + Content OTT content friendly approach, Wi-Fi experience FTTH FTTC 2022 4 TIM Brasil | Investor Relations Strategic Plan 2020-22 14#15Broadband: Acceleration Smart Capex to Ensure Acceleration 4 ...TO TRANSFORMATION BRAZIL'S BROADBAND MARKET BROADBAND AND FIBER PENETRATION (on HH) Strategic Partnership Broadband Penetration 0%-20% 20%-40% 40%-60% > 60% FIBER PENETRATION TOP 5 São Paulo 24% Santa Catarina 23% Minas Gerais 23% Paraná 21% Ceará 19% Brasil 16% Expanding TIM Live's services with the right balance between Sales and Capex, unlocking additional value of this asset Create in partnership a neutral fiber infrastructure asset in Brazil CAGR 31 33 +7% 27 29 Fiber 2 3 6 10 +79% 0 CUSTOMER BASE BY TECHONOLOGY (mln) Others 25 26 26 23 -3% 2016 2017 2018 2019 TIM (1) Anatel (dec-19), internal analysis. Market sound process with an advisor to find the right partner out of the telecom space To be completed by the end of 2020. TIM Brasil Investor Relations Strategic Plan 2020-22 15#16Beyond Core: Leveraging our Assets with Strategic Partnerships Exploring B2B New Services IoT MARKET SIZE¹ Connections 6.0 5.0 40 4.0 3.0 20 2.0 10 1.0 0% = USD Revenues (mln) TIM IOT IN LATIN AMERICA DEVELOP AT SCALE AND MONETIZE IOT VERTICALS 4G TIM no Campo Agriculture To (2022) ~750 Sole operator in the initiative developing agribusiness solutions based on loT. conectar4GRO Connected Car First mover: agreement with car manufacturer to provide in-car connectivity and automation. Transport From (2018) 360 To (2022) -400 ~5 mln acres with 4G From 184 (2018) 20% 40% >3 k cities with NB-IoT 1 st 60% place in 4G coverage in Brazil major partners in agro citrosuco AMAGG SLC Agrícola adecoagro JALLES MACHADO Share of loT Revenues (1) Global Data Market Opportunity Forecasts to 2023: Global IoT. 5 I I TIM Brasil | Investor Relations Strategic Plan 2020-22 16#17Beyond Core: Leveraging our Assets with Strategic Partnerships The Mobile Advertising Opportunity VALUE POOL 1 Brands BRITISH AIRWAYS 5% 2 Ad agency MEDIACOM 50% DMP Demand side 3 Platform MediaMath Connection 4 mechanisms 5 Supply side Platform 45% 6 Publisher TIM OpenX Google amazon Coca-Cola R$ 24.2 bln digital ad market in 20221 ZENITH www. Google amazon _ f R$ 19 bln delivered through mobile Google rubicon f amazon SEALECT >2x upside for TIM in 2022 FT FINANCIAL TIMPS f amazon - Google TIM Ads addressable environment (1) Latin America Digital Ad Spending 2019 eMarketer, internal analysis. TIM Brasil | Investor Relations Strategic Plan 2020-22 17 5#18Beyond Core: Leveraging our Assets with Strategic Partnerships TIM's Positioning as Publisher and Ad-Tech Player As is TIM AS PUBLISHER To be TIM AS AD TECH PLAYER MOBILE ADS REVENUE (R$ mln) Exploring owned touch-points (digital and physical) to advertise 3rd parties. Leveraging on customer data and ownership to enhance advertisers knowledge. Opportunistic approach Close the gap Becoming a front 2019 -190 runner TIM A-A-2 Acompanhe seu consumo no MEU TIM → SMS to any 3rd parties → ~R$ 190 mln already generated in mobile ads products → Exploring Captive Portal interactions to display 3rd parties ads → New trial contracts signed in the past 2 months → Fine-tuning and new products development TIM 300BFON R$ 0,41 TIM A Quer 10MD de bonus? ponda e Ganhe TOP (D DA → Data monetization: enhancing 3rd parties campaigns assertiveness with customer knowledge danuncio asma de compieta → Operators Ao clicar no video, você concorda com os termos de cooperation → Aligned with LGPD for scoring and new economy 2020 2022 +35% +70% TIM Brasil | Investor Relations Strategic Plan 2020-22 18 5#195 Beyond Core: Leveraging our Assets with Strategic Partnerships FinTech's Playing Field is Moving Fast and We Have a Unique Window of Opportunity FINANCIAL SERVICES IN BRAZIL EXPLORING PARTNERSHIP OPPORTUNITIES OWNERSHIP PENETRATION OF... (% population) Mobile Unique 79% Users 2 45 Debit Card 1 59% Credit Card 27% R$ mln Brazilians have no bank account³ 817 bln annual transactions of unbanked population in Brazilian economy³ 1 HIGH-END Convenience and simplicity. →Full bank offer → Commercial partnership → Value generated by commissions in fees + equity 2 LOW-END Access to banking services. → Symbiotic partnership (JV like) → Value generated by profit sharing 83 % top 5 banks' market share EOP 2020 BCB expects to launch its instant payment system: PIX. Telecom + digital banking services. Agreement with a digital bank to be announced in the coming weeks. TIM (1) Population > 15 years old (Global Findex Database 2017); (2) Population > 10 years old; (3) Population > 16 years old (Locomotiva). I Partners short list under analysis. TIM Brasil | Investor Relations Strategic Plan 2020-22 19#206 TIM Brasil plans to improve its ESG practices based on its materiality matrix ESG: TIM's commitment with a positive transformation to all stakeholders Environme nvironmental We want to be green. → Increasing efficiency and taking advantage of green energy cost reduction → Developing infrastructure and data center to give more to our customer with less impact from operations Eco-efficiency in traffic transmitted +75% 2025 -70% Indirect emissions Social New capabilities are a key factor to maintain leadership. → Improving internal workforce valorization and talent management → Accessing Brazilian Top Employer ranking based on diversity issues Promote digital capabilities and ESG Culture among the employees → Developing the digital education to support demand for connectivity → Carbon neutral by 2030 Employees engagement >MQ3 Employees trained on ESG culture >95% 1k people 2022 Governance Efficient mechanisms to fairly balance the interests of all stakeholders, while improving transparency and controls. → TIM recognized as a company with highest level of commitment to sustainability and corporate governance → Reinforcing and disseminating the ESG principles to the high risk suppliers → Adopting best practices regarding compliance, information security and privacy protection ("LGPD") Digital capability development Novo Mercado and ISE ISO 27001 and ISO 37001 United Nations Agenda: 10 relevant goals for TIM Brasil TIM Programa Brasileiro 1 TEY 4 EDUCATION С DECENT WORK AND NOMIC STATH TIMP3 NOVO MERCADO ISEB3 ISO CDP GHG Protocol Mitt SAN MATE 11ECENASIES 12 DAGMETIN 13 ABET Q 15 Maintain Obtain 16 PINGE JURGE TIM Brasil | Investor Relations Strategic Plan 2020-22 20#21TIM Brasil 2020-'22 Targets Key Performance Indicators (IFRS 15/9) NET SERVICE REVENUES (% YoY) TIM 4.7% OPEX (R$ bln) CAGR 2018-21: CAGR 2018-22: ~3% ~2% Mid Single Digit 2.4% CAGR 2019-22 10.8 Old Plan 10.6 Market 0.4% 1.5% New Plan 10.6 10.6 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 EBITDA AND MARGIN EXPANSION (R$ bln; %) 39.1% 37.5% 6.4 6.8 2018 TIM ≥40% EBITDA - CAPEX (R$ bln; %) 16.9% 15.0% 2.9 2.5 2019 2020 2021 2022 2018 2019 2020 2021 ≥20% 2022 TIM Brasil | Investor Relations Strategic Plan 2020-22 21#22TIM Brasil 2020-'22 Targets Guidance GOALS Revenue Growth Sustainability Improve Profitability Infrastructure Development DRIVERS -> Leverage mobile ARPU improve -> -> Expand Residential UBB operations Tap B2B opportunity -> Accelerate digital transformation -> Maintain zero-based budget approach -> Reliable bill to cash process -> Smart and selective Capex approach Expand Cash Generation -> Strict financial discipline →> Continue debt and tax rate optimization TIM (1) KPIs with IFRS 15/9, except when otherwise indicated. SHORT TERM TARGETS (2020) LONG TERM TARGETS Service Revenues Growth: Mid single digit (YoY) Service Revenues Growth: Mid single digit (CAGR '19-'22) EBITDA Growth: Mid single digit (YoY) EBITDA Margin: ≥40% in 2022 (≥47% w/ IFRS 16) Capex on Net Revenues: Low 20's EBITDA-Capex on Net Revenues: >16% (>20% w/ IFRS 16) Capex: R$ 12.0 12.5 bln (Σ'20-'22) EBITDA-Capex on Net Revenues: ≥20% in 2022 (≥25% w/ IFRS 16) TIM Brasil | Investor Relations Strategic Plan 2020-22 22#23IIII