0
Goldman Sachs Communacopia XVIII Conference
September 17th, 2009
TIM Participações S.A
1
TIM PARTICIPAÇÕES S.A. | Investor Relations
Agenda
Market Facts and Historical Data
Build a Solid Platform for the Long Term
2nd Quarter Results
Re-launch Plan: Key Actions and Results
2
TIM PARTICIPAÇÕES S.A. | Investor Relations
Re-launch Plan: Key Actions
Build a Solid Growth Platform for 2010
React to 2008’s inertia on revenues:
- minimizing impact on 2009…
- …and preserving profitability
Caring
Brand
Offering
Sales Force
Network
Efficiency
Selectivity and Multi-channelingServices improvement: better flow over demand Caring model evolution: service level vs. client value
Actions in Course
RepositioningShare of voice increaseNew format to increase recall and brand linkageCoherence and brand recognition
Distinctiveness and InnovationInfinity pre and post“Azul” (DDD = local)
“Back to Sales”Grow again on post-paid and on pre-paidSales Force development (rationalization / productivity) Value-based Commissioning
Focus on 2G Service Quality :2G: excellence on voice quality3G: “right on spot”
Structural RethinkingRevision of go-to-market models and processes Renegotiation with suppliersGrowth financing and sustain profitability
Shock offering: “Recarga Imperdível”“TIM Único”
1
4
5
3
2
6
7
3
TIM PARTICIPAÇÕES S.A. | Investor Relations
Brand: Share of Voice Increase; Growth of Recall, Appreciation and Brand Linkage
... with Good Campaign Results
2006 2007 2008
3º 3º 4ºRanking
TIM
-6 -13 -14
Greater Efforts in Communication...
TIMPlayer 1
Δ p.p.
20
Target% share of investment
7075
Manifesto Da Marca(Mar)
TIM TerraAzul (May)
Recall Appreciation Brand LinkageΔpp
vs. leader
Player 2Player 3
Source: Ibope Monitor/GRP, Data Folha, Synovate’s Image Research
Brand
30%32%
15% 16%
30%
24% 19%
17%
29%
31%
26%28% 28%
21%
16%
18%
5%
10%
15%
20%
25%
30%
35%
40%
0
1H‘09
1º
46
76 78
18
87
32
1
4
TIM PARTICIPAÇÕES S.A. | Investor Relations
Network: Improvement of Service and Network Quality2008 FY – Overall Service Quality Jan-Jun 2009 – Overall Service Quality
# 6 # 24Q ‘08: 90.2%
98.7% in June
Network Service Quality
% target achieved in overall service quality, TIM vs. competitors
Jan/09 Jun/09 Delta (p.p.)
TIM 84.1% 100.0% +15.9
Player 1 100.0% 100.0% 0.0
Player 2 95.7% 98.6% +2.9
Player 3 53.8% 50.0% -3.8
Main mobile operators
Source: Anatel
Network
% target achieved in overall service quality, TIM vs. competitors
% target achieved in network quality , TIM vs. competitors % target achieved in TIM network quality
99.5% 98.0% 97.7% 95.1% 93.4% 91.6%83.9%
Player 1 Player 2 Player 4 Player 5 Player 6 TIM Player 3
99.9% 97.3% 97.0% 96.0% 93.4% 90.7%
76.9%
Player 1 TIM Player 5 Player 6 Player 4 Player 2 Player 3
96.7%99.5% 99.5% 98.9% 100.0%
84.6% 84.1%84.1%
80,00%
82,00%
84,00%
86,00%
88,00%
90,00%
92,00%
94,00%
96,00%
98,00%
100,00%
nov/08 dec/08 jan/09 feb/09 mar/09 apr/09 may/09 jun/09
2
5
TIM PARTICIPAÇÕES S.A. | Investor Relations
Caring: Improvement in Customer Satisfaction
7,6
7,8
8
8,2
8,4
8,6
mai/06 ju l/06 set/06 nov /0 jan/07 mar/07 mai/07 jul/07 set/07 nov /0 jan/08 mar/08 mai/08 ju l/08 set/08 nov /0 jan/09 mar/09 mai/09
Customer Satisfaction Evolution
May06
Oct06
May07
Oct07
May08
Oct08
May09
8.4
8.18.1
8.0
8.6
7.87.8
8.0
Evidences: . Reduction of # Lines / frequency of problems . Strong recovery in historically critical areas: SP, RJ and Mid-West
Offering: . Improving on competitiveness in handset. Increase media presence. Launch of Infinity pre-paid plan
CRM: . Pro-active replacement of handset based on value. Expansion of Premium cell
Coverage: . Focus on areas with high concentration of high-value clients
TIMPlayer 1
Player 2Player 3
Source: Customer Satisfaction Monitoring (Bridge Research)
Caring
TIM: recovery of client satisfaction after a negative 2008
3
Costumer Care Index - Anatel
Jan09 Feb09 Mar09 Apr09 May09 Jul09
Player 1
TIM
Player 2
Player 3
Player 4
Jun09
6
TIM PARTICIPAÇÕES S.A. | Investor Relations
Offering: Inversion of Market Share Erosion TrendOffering
TIM Net Adds and Net Share TIM Market Share
000’s lines, %
Clean-up:
~1Mln lines
2008 2009
2008 2009
Mln lines
28.4 29.8 29.9Pre
Post 6.8 6.6 6.2
TIM Customer Base
2300%
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
31.6
6.2
Jun
% of market share
Rankingin net share
2Q 2Q
2008 2009
1,282
1,729
0
500
1.000
1.500
2.000
29.1%
NetAdds
% NetShare
17.4%
2300%
2350%
2400%
Apr09
May09
Jun09
Net share%
#1 #2 #1
37.7% 24.1% 32.2%
0
0
0
0
0
0
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunQoQ Speed up:
•Net addtion: 1.7mi 2Q vs. 0.7*mi in 1Q09
•ARPU: R$26.6 2Q vs. R$26.0 in 1Q09
*excluding clean-up base
4
25.3 25.1 25.024.7
24.524.2 24.1
23.5 23.5 23.6 23.6 23.7 23.8
Jul
34.2 34.7 35.2 35.8 36.1 36.4 36.635.7 36.1 36.5 37.2 37.8 38.5
Jul
7
TIM PARTICIPAÇÕES S.A. | Investor Relations
Infinity
Other plans
Offering: Infinity Offer ResultsOffering
2009 Infinity pre-paid base (000’s lines)
Pre
Post
Infinity
100%
34%
66%
~0%
May Jun
% Infinity in gross post voice consumer
5
~2.500
~1.600
~650
Mar Apr May Jun
4
8
TIM PARTICIPAÇÕES S.A. | Investor Relations
000’s lines, 2009
Apr May
Gross adds
Churn
Net AddsReported
- + ++
NetAdds
- - - +Net Adds
+ + ++
Gross Adds
Churn
2009
2009
Jun
++
+
++
5
Churn
Gross Adds
1Q*
1Q*
1Q*
Sales Force: Stop-loss of Value Customers Base (Post-paid)
Excluding ~1Mln lines clean-up
Total Base
“Back to Sales”
Post-paidPost-paid Sales
Re-launch
Pre-paid
Pre-paid Growth Speed
up
Excluding ~0,3Mln lines clean-up
Excluding ~0,7Mln lines clean-up
* monthly average in 1Q
Sales Force
Apr May Jun
Apr May Jun
1Q Apr Mag Giu
Q1 Apr Mag Giu previa fechamento
Q1 Apr Mag Giu
9
TIM PARTICIPAÇÕES S.A. | Investor Relations
46%
62%44%
69%
107%
24%
25%14%
113%
145%
56%
22%
120%
78%
55%
26%
23%
40%
5%
25%
45%
65%
85%
105%
125%
145%
Sales Force: Positive Balance on Post-Paid MNP and Speed up in Acquisition Dynamics
Gap MNP Post-paid
Jan Feb Mar Apr Jun
% MNP Port In/ Port Out
Business
Post-paid
Consumer
Positive Balance on Consumer and Businesssegments
“Zero balance”
+
May
Note: Mobile NP
SalesForce5
Gross Adds Post-paid (voice)
-46%-34% +2% +13%
+42%
’08 vs. ’09“The Turnaround”
+29%
Jan Feb Mar Apr JunMay
10
TIM PARTICIPAÇÕES S.A. | Investor Relations
Efficiency: Self-financing Brand Repositioning Plan and Commercial Re-launch
Total Cost
1Q
2Q
YTD
Advertising &Promotions
Commercial*
Bad Debt
1Q
2Q
YTD
Leased Lines
Intercon-nection
1Q
2Q
YTD
Personnel
G&A
Δ% 09 vs. 08, BRGAAP
Breakdown Costs
+14%
+
+
+
-
+
Com-mercial
Indus-trial
HR, ITand G&A
Bad Debt Evolution % Net Services Revenue, BR GAAP
Improvement in acquisition quality
Efficiency
1Q
YTD
Note: Excludes non organic effects: Embratel dispute agreement: - R$64 Mln (Mar/09); São Paulo inventories stolen : -R$21Mln (2Q09)*Includes COGS, Selling, CRM and Marketing Expenses
-10%
-14%
-6%
-20%
-48%
26%
41%
-5%
-2%
2Q~0
-18%
-6%
8%
15%
1%
-5,00% 0,00% 5,00% 10,00% 15,00% 20,00%
-10%
-10%
-9%
-100,00% -50,00% 0,00%
6.8%
4.1% 4.8%3.6%
4.7%
9.6%
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
6
11
TIM PARTICIPAÇÕES S.A. | Investor Relations
237
228
243
Net Services Revenues
15%
16%
14%
1Q
2Q
1H
Net Total Revenues
EBITDA Growth EBITDA and EBITDA Margin
1Q
2Q
1H
1Q
2Q
1H
Δ% 09 vs. 08, BR GAAP
Δ% 09 vs. 08, BR GAAP Δ basis points 09 vs. 08, BR GAAP
1Q
2Q
1H
Δ% 09 vs. 08, BR GAAP
+
+
+
+
+
+
Financials: Flat Revenues with Structural Increase of Profitability
22.3%20.0%
2008 2009
Economics
-0.8%
-1.2%
-0.5%
-5,00%
Issue: neutralize 2008 negative
waves (post and pre-paid)
+ 230 Basis points YoY
0.6%
3.7%
2.2%
0,00%
7
12
TIM PARTICIPAÇÕES S.A. | Investor Relations
25.3
8Mln
6Mln
4MlnJun-08 Jun-09
6.86.2
30%
25%
15%
27%
21%2008
Post-paidRevenues
- 800K
25%
20%
15%
20%
16%
29.0Total market
Loss of active voice post-paid lines:
R$100ARPU/
post-paid active voice lines:
~ R$ 1 Bln
Delta base
2009 Inertial
Post-paidRevenues
Impact on Total Post-paid Revenues(FY 2009)
Economics
x
-6pp
-4pp
1st Wave 2008: Loss of Post-paid Voice Base
TIM Post-paid Base
(lines)
TIM Post-paid Mix(%)
TIM Post-paid MarketShare
Jun-08 Jun-09
Jun-08 Jun-09
∆ Jan 09 vs. Jan 08
-R$0.5 bn in 1H
7
13
TIM PARTICIPAÇÕES S.A. | Investor Relations
Promo Non-Promo
ARPU
ARPU Promo base vs. Non-Promo base
2008’sAverage
2008’s Average
- +
Bln R$
Economics
Mar2009
Mar2009
2nd Wave 2008: Reduction in Pre-paid Base with Promos
Promo Active BaseNon-PromoActive Base
Mln lines Mln lines
Promo Δ Base
2008Pre-paid Revenue
Non-PromoΔ Base
2009Inertial
Pre-paid Revenue
Impact on Total Pre-paid Revenues (FY 2009)
- +- +
Mainly in 2Q
7
14
TIM PARTICIPAÇÕES S.A. | Investor Relations
Agenda
Market Facts and Historical Data
Build a Solid Platform for the Future
2nd Quarter Results
Re-launch Plan: Key Actions and Results
15
TIM PARTICIPAÇÕES S.A. | Investor Relations
Subscribers base: +4.8% QoQ
Net Revenue growth: +3.7% YoY to R$ 3,304 Mln
Net Service Revenue:
• +4.0% QoQ (and +9.7% QoQ in Total Net Revenue)
• VAS: +12.5% QoQ e +21.7% YoY
• Stop ARPU and MOU erosion on a quarterly basis
Structural efficient growth:
• Bad Debt at -47.9% YoY (and 3.6% of Net Services Revenue)
• Interconnection & Network: -14.1% YoY
• Personnel and G&A: -9.0% YoY and Commercial: +24.6% YoY
Improving Profitability: EBITDA at R$ 736 Mln (+15.5% YoY) to a Margin of 22.3% (+230 bps YoY)
Net Loss reduction: -R$ 15 Mln vs. -R$144 Mln in 1Q09 and -R$66 Mln in 2Q08
Positive Operating Free Cash Flow: R$ 407 Mln, +10% YoY…
… with an improvement in the Net Financial Position: R$ 2,900 Mln, -R$117 Mln vs. 1Q09
2Q09’s Main Results
16
TIM PARTICIPAÇÕES S.A. | Investor Relations
% Penetration per total population
MobileMn lines
133.2 140.8 150.6 153.7 159.669%
73%78% 81%
83%
2Q08 3Q08 4Q08 1Q09 2Q09
Mobile lines
73% 73%76%
38.8 39.441.1
2007 2008 2Q09
% Penetration pertotal households Fixed Access
10%14%
19% 20%
2006 2007 2008 2Q09
Fixed Fixed Broadband
Industry Overview
5.6
7.7
10.0
10.8
2006
78%
41.8
FIXED
New players has brought competition
FIXED BROADBAND
ADSL/Fixed Lines ~25%
~42% of total access with speeds up to 500kps
MOBILE
Market growth continues to be fueled by intense commercial
activity from major players and SIM-card only sales
MOBILE BROADBAND
Mobile broadband base ~3 million (Jun09)
2009 YTD mobile net addition surpassing fixed broadband
17
TIM PARTICIPAÇÕES S.A. | Investor Relations
Net Adds(000’s)
Stop Market Share Erosion…
2Q08 1Q09 2Q09
Customer Base
CB YoY Growth (%)
Million lines
Pre-paid
23.1% 11.0%
Post-paid
11.9%
… through Revamp in Net Additions
2Q08 1Q09 2Q09
6.8 6.2 6.2
27.0 29.9 31.6
25.4%
23.5% 23.7%
1,282
1,729
(306)
17.4% 17.2*%
29.1%
~700*
Net Share (%)
6.2
* Excluding the impact of ~1MM clean-up
∆ Net Adds YoY: +35%QoQ: +149%*
Market Share (%)
+17.1%
-8.9%
+5.6%
+0,7%
ΔY/Y ΔQ/Q33.8
36.1 37.8
18
TIM PARTICIPAÇÕES S.A. | Investor Relations
Revenues & KPI’s
2Q08 1Q09 2Q09
Net Revenues
R$ Mln
215 189 368
2,9362,971 2,823
3,186 3,0123,304 +3.7%
-1.2%
+70.8%
Service Revenue KPI’s
ARPU
2Q08 1Q09 2Q09
29.8 26.0 26.6
R$
-13.8% -11.7% -11.0%YoY %
+1.2% -13.1% +2.1%QoQ %
∆ YoY ∆ QoQ
-27.1% +4.4%
ARPM
2Q08 1Q09 2Q09
10070 73
0.300.360.37
0,15
0,20
0,25
0,30
0,35
0,40
R$
MOU
∆ YoY
22.2%
∆ QoQ
-2.2%
Min.
397 430 483Gross VAS Rev.
9.8% 11.2% 12.3%% VAS/ Service Rev.
+9.7%
+4.0%
+95.0%
+21.7% +12.5%
+2.5pp +1.1pp
ΔY/Y ΔQ/Q
ΔY/Y ΔQ/Q
Increased penetration of micro-browsing over total
customers base
Net Service Revenue
Net Handset Revenue
19
TIM PARTICIPAÇÕES S.A. | Investor Relations
Commercial Efforts Maintained…
R$ Mln
COGS
R$ Mln
Selling Expenses
2Q08 1Q09 2Q09
325 324
467
+43.7%+43.9%
Margin %
R$ Mln
20.2%
1Q09
609
20.0%
2Q08
637
22.3%
2Q09
EBITDA
.. delivering EBITDA Growth…While Efficiency Plan Gets Traction...
2Q08 1Q09 2Q09
2Q08 1Q09 2Q09
2Q08
134
1Q09
106
2Q09
277 261 252
1,073 985 921
143
60*
Bad Debt
Personnel and G&A Costs
-47.9%-21.2%
-9.0%-3.7%
-6.5%
6.8%* 4.8% 3.6%
% ofNet Serv.Revenues
Interconnection & Network Costs
736R$ Mln
R$ Mln
R$ Mln
99
-14.1%
+20.8%+15.5%
2Q08 1Q09 2Q09
666 709829
+16.9%+24.6%
Advertising =1.4 x84 115 119
∆ YoY
Gross AddsYoY: +20%QoQ: +27%
* Telesales Impact
20
TIM PARTICIPAÇÕES S.A. | Investor Relations
R$ Million
EBITDA and Bottom Line performance
* Other Expenses include: G&A, Personnel and Net Other Operating Expenses/Revenues
Margin %
Δ YoY -1.2% +70.8%
+24.6%
-14.1
%
-47.9
%
-13.1
%
EBITDA2Q08
ServiceRevenues
HandsetsRevenues
Advertising & Sales
NetworkExpenses
+43.7%
COGS Bad DebtOther
Expenses*EBITDA2Q09
22.3%20.0%
637.2
(34.4)
152.6
(163.4)
(141.9)
151.7
97.436.9
736.0
+15.5%
Investments on Growth
Savings
~300 (~10% Serv. Rev.)
~290(~10% Serv. Rev.)
+R$99 Mln
EBITDA to Bottom Line performanceEBITDA Structurally Improve – Financing the Growth
and the Repositioning
EBITDA 2Q09
Depreciation & Amortization
EBIT Net FinancialExpenses
Taxes and Others
Net Result
736.0
88.6 (65.9)(15.2)(38.0)
(647.5)
+15.5% +8.6% +116.9% -27.9% +141.1% -77.0%YOY %
2Q08 637.2 (596.3) 40.8 (91.4) (15.7) (66.3)
1.2x 2.2x 0.2x2Q09 vs. 2Q08
R$ Million
21
TIM PARTICIPAÇÕES S.A. | Investor Relations
Gross DebtR$ 3.67 billion (of which 68% long term)
~33% of total debt is denominated in foreign currency (fully hedged)
Average annual cost 10.95% in 2Q09 vs.11.64% in 2Q08 (and 12.47% in 1Q09)
Net Financial Position and Operating Free Cash Flow – 2Q09
R$ Million
Net Debt
R$ Million
Operating Free Cash Flow
* Excluding 3G license
Operating FCFR$ Million
EBITDA ΔWork. Cap.
CAPEX Operating FCF
2Q091Q09Non
Op. FCF
73693 (422)
407
(3,017) (289)407 (2,900)
~R$ 168 Mlnof dividends
-117
2Q08
371 *
+10%
% total revenues
12.3% 11.6%
22
TIM PARTICIPAÇÕES S.A. | Investor Relations
Agenda
Market Facts and Historical Data
Build a Solid Platform for the Future
2nd Quarter Results
Re-launch Plan: Key Actions and Results
23
TIM PARTICIPAÇÕES S.A. | Investor Relations
2008 2009
Posiziona-mento mark
Market Share
Economics
R$ Bln R$ Bln
Keep growing in revenue and profitability
Source: TIM internal data
Reshaping TIM Brasil: Build a Solid Growth Platform
Brand Positioning
Loss of Preference (-7 pp) and Top of Mind (-1 pp)
Ranking #6 in Quality (Anatel)
Customer Satisfaction Index decrease (ranking #3)
Recovery in - Preference- Top of Mind - Quality of Services (ranking Anatel)- Customer Satisfaction
MS Total
Net adds pre
Net adds post voice
Net TotalRevenues
EBITDA Margin
- 6 pp only at post24.2%25.0%25.4%25.9%
1Q08 2Q08 3Q08 4Q08
-20,00%
-10,00%
0,00%
10,00%
20,00%
30,00%
18% 20%24%
26%
1Q08 2Q08 3Q08 4Q08
20%22%
1Q09 2Q09 3Q09 E 4Q09 E
23.5% 23.7%
1Q09 2Q09 3Q09 E 4Q09 E
-20,00%
0,00%
20,00%
30,00%
Reversal post-paid base erosion trend (value base)
10,00%
+6% +5% +6% +10%
24
TIM PARTICIPAÇÕES S.A. | Investor Relations
The Path for 20091Q09 2Q09 3Q09 4Q09
+ ++
--
Target: restructure the company, recovering strong positioning, sustaining profitability and cash flow
Network and Brand recover Back to Sale Back to Talk Back to Growth
Net ServicesRevenue Δ YoY
Strategy: Pure Mobile
Organization: new
management Team
Advertising: new format
and greater presence in
media
Network Quality
New portfolio Offers:
- April (Infinity Pre, Da Vinci)
- June (Infinity Post, “Único”)
Sales channels Push :- Back-to Post-paid- MNP Focus
Recovery of Customer Satisfaction
Usage stimulus, MOU growth. Ex:- “Recarga Imperdível”- LD Infinity
Market share Increase :- Post-paid Voice (BU/CO)- Infinity Pre-paid Push
New Offers (July)- 4 in 1- New “Imperdível”
Commercial Push on New
Offer
Closing Intelig and
capturing early synergies
Recovery of Top of Mind
and Preference
25
TIM PARTICIPAÇÕES S.A. | Investor Relations
* 2009 Estimate
Improving Structural Efficiency of the Company2009, BRGAAP
Commercial
HR, IT and G&A
Industrial (Network)
08 vs 07 09* vs 08
08 vs 07 09* vs 08
Δ YoY
% Net Service Revenue
Δ YoY
Δ YoY ITX Leased Lines
08 vs 07
09* vs 08
Δ YoY+
+
++
-
+
+
+ +
-
-
Strict Rigor in Bad Debt
Industrial Costs Variation
2008
2009
We do not sacrifice growth to increase profitabilityWe do not “buy" growth by destroying value
08 vs 07 09* vs 08
Intelig
4%5%
10%
7%
3.6%
4.8%
1Q 2Q 3Q* 4Q*
26
TIM PARTICIPAÇÕES S.A. | Investor Relations
Repositioning on track:
• Brand
• Quality
• Satisfaction
Growth of net additions with ARPU increase
Profitability preserve through efficiency
QoQ improvement in all metrics
2Q Achievements
Main Takeaways
•Stimulate Usage (MOU)
3Q Priorities
• Positioning
•Profitability and cash generation
•Post-paid
Build a Solid Growth Platform for 2010
27
TIM PARTICIPAÇÕES S.A. | Investor Relations
Market Facts and Historical Data
Build a Solid Platform for the Future
2nd Quarter Results
Re-launch Plan: Key Actions and Results
28
TIM PARTICIPAÇÕES S.A. | Investor Relations
Market Facts
TIM Part. Total Control Free float
Common 799,924,805 650,537,118 149,387,687
Preferred 1,548,522,231 990,098,811 558,423,420
Total 2,348,447,036 1,640,635,929 707,811,107
34%
66%
40%
60%
21%
79%
100% 100%
(%) (%) (%)
100%
*in Aug 31, 2009
*All Market Panel data refer to Aug 31th, 2009*All Market Panel data refer to Aug 31th, 2009
Shareholders StructureStock Performance
TIM ParticipaçõesTIM Participações
TIM CelularTIM Celular
TIM NordesteTIM Nordeste
100%
TIM Brasil
100%
ON: 81%PN: 64%Total: 70%
100%
Telecom Italia
Stock Exchange: BOVESPA
Ticker Symbol: TCSL4 (Preferred)Price: R$ 3.96
52 Week Price Range:High – R$ 4.50
Low – R$ 2.42
Stock Exchange: BOVESPA
Ticker Symbol: TCSL4 (Preferred)Price: R$ 3.96
52 Week Price Range:High – R$ 4.50
Low – R$ 2.42
Stock Exchange: BOVESPA
Ticker Symbol: TCSL3 (Common)Price: R$ 5.45
52 Week Price Range:High – R$ 7.95
Low – R$ 4.49
Stock Exchange: BOVESPA
Ticker Symbol: TCSL3 (Common)Price: R$ 5.45
52 Week Price Range:High – R$ 7.95
Low – R$ 4.49
Market Panel*Market Panel*Market Panel*
Stock Exchange: NYSE
Ticker Symbol: TSU (ADR)Price: US$ 21.26
52 Week Price Range:High – US$ 23.68
Low – US$ 11.44
Stock Exchange: NYSE
Ticker Symbol: TSU (ADR)Price: US$ 21.26
52 Week Price Range:High – US$ 23.68
Low – US$ 11.44
Market Capitalization: R$ 10.49 BillionMarket Capitalization: R$ 10.49 Billion Market Capitalization: US$ 5.80 BillionMarket Capitalization: US$ 5.80 Billion
TCLS4 TCSL3 IBOV
Aug08 Sep08 Oct08 Nov08 Dec08 Jan09 Feb09 Mar09 Apr09 May09 Jun09 Jul09 Aug09
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TIM PARTICIPAÇÕES S.A. | Investor Relations
Numbers may differ from the previous publishing due to rounding
Historical indicators: operational results
Brazilian Wireless Subscriber Base (million) 159,6 153,7 133,2 3,9% 19,9%Estimated Total Penetration 83,5% 80,6% 69,5% 2,9 p.p. 14,0 p.p.Municipalities Served - TIM GSM 2.944 2.772 2.733 6,2% 7,7%Market Share 23,7% 23,5% 25,4% 0,2 p.p. -1,7 p.p.Total Lines ('000) 37.826 36.096 33.815 4,8% 11,9% Prepaid 31.610 29.923 26.993 5,6% 17,1% Postpaid 6.216 6.174 6.821 0,7% -8,9%Gross Additions ('000) 4.855 3.836 4.046 26,6% 20,0%Net Additions ('000) 1.729 -306 1.282 n.m. 34,9%Churn 8,6% 11,4% 8,4% -2,8 p.p 0,2 p.pARPU (R$) 26,6 26,0 29,8 2,1% -11,0%MOU 73 70 100 4,4% -27,1%ARPM (R$) 0,36 0,37 0,30 -2,2% 22,2%SAC (R$) 120 135 119 -10,7% 0,9%Investment (R$ million) 422,5 194,4 1.706,3 117,3% -75,2%Employees 10.174 10.212 10.253 -0,4% -0,8%
QoQ YoY% %2Q09 1Q09 2Q08
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TIM PARTICIPAÇÕES S.A. | Investor Relations
Numbers may differ from the previous publishing due to rounding
Historical indicators: financial results
R$ (Thousands) 2007 1Q08 2Q08 3Q08 4Q08 2008 1Q09 2Q09 QoQ % YoY %
Net Revenues 12,441,643 2,992,957 3,186,075 3,357,794 3,544,138 13,080,965 3,011,668 3,304,252 9.7% 3.7%
Services 11,421,037 2,837,663 2,970,664 3,065,744 3,222,737 12,096,808 2,822,979 2,936,240 4.0% -1.2%
Handset Revenue 1,020,606 155,294 215,411 292,051 321,401 984,157 188,689 368,012 95.0% 70.8%
Operating Expenses (9,601,330) (2,460,169) (2,548,906) (2,559,338) (2,613,134) (10,181,547) (2,402,216) (2,568,235) 6.9% 0.8%
Personal Expenses (625,398) (162,625) (168,697) (152,654) (164,186) (648,162) (157,959) (138,181) -12.5% -18.1%
Selling and Marketing Expenses (2,512,078) (598,141) (665,621) (715,019) (708,347) (2,687,128) (709,130) (829,036) 16.9% 24.6%
Network & Interconnection (3,865,089) (1,044,547) (1,072,570) (1,077,171) (1,048,241) (4,242,530) (984,633) (920,902) -6.5% -14.1%
General & Administrative (429,699) (123,779) (107,984) (101,496) (118,883) (452,143) (103,488) (113,542) 9.7% 5.1%
Cost of Goods Sold (1,434,431) (263,235) (324,831) (378,072) (439,650) (1,405,788) (324,451) (466,727) 43.9% 43.7%
Bad Debt (714,571) (271,701) (203,327) (143,250) (130,554) (748,833) (134,453) (105,949) -21.2% -47.9%
Other operational revenues (expenses) (20,065) 3,859 (5,876) 8,325 (3,272) 3,036 11,897 6,102 -48.7% -203.8%
EBITDA 2,840,313 532,788 637,169 798,456 931,004 2,899,418 609,451 736,016 20.8% 15.5%
EBITDA - Margin over total net revenues 22.8% 17.8% 20.0% 23.8% 26.3% 22.2% 20.2% 22.3% 2.1 p.p. 2.3 p.p.
Depreciation & Amortization (2,323,674) (572,033) (596,338) (617,988) (622,185) (2,408,545) (641,222) (647,451) 1.0% 8.6%
EBIT 516,639 (39,245) 40,831 180,468 308,818 490,872 (31,771) 88,565 -378.8% 116.9%
Net Financial Results (281,500) (73,609) (91,382) (152,943) (57,041) (374,974) (69,314) (65,857) -5.0% -27.9%
Income (loss) before taxes and Minorities 235,139 (112,854) (50,552) 27,526 251,778 115,898 (101,085) 22,708 -122.5% -144.9%
Income tax and social contribution (166,837) (12,613) (15,743) (39,579) 132,188 64,254 (42,929) (37,956) -11.6% 141.1%
Net Income (Loss) 68,302 (125,466) (66,295) (12,053) 383,966 180,152 (144,014) (15,247) -89.4% -77.0%
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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/ri
“Safe Harbor” statements
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TIM PARTICIPAÇÕES S.A. | Investor Relations