Tim S.a. · BMFBOVESPA:TIMS3
Tim — Q1 2021 Earnings Presentation
33 slides from Tim's earnings presentation, May 6, 2021
Slide 1: TIM S.A. Form 6-K
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: May 5, 2021 Commission File Number: 001-39570 TIM S.A. (Exact name of Registrant as specified
Slide 2: Earnings 1Q 2021
FARNINGS Me Ley Sir 15'QTR2021
Slide 3: 2021 First Quarter Results
2021 First Quarter Results (Including the effects of IFRS 9, 15 and 16) From volume to value: contributing to the recovery of commercial dynamics and generating operational resilience · Mobile ARPU posted strong growth of 6.6% YoY, reaching R$ 25.5; · TIM Live’s UBB customer base was up by 13.3% YoY
Slide 4: Financial Performance: Operating Revenue
Financial Performance (Including the effects of IFRS 9, 15 and 16) OPERATING REVENUE Breakdown of Mobile Segment (net of taxes and deductions): Mobile Service Revenues (MSR) totaled R$3,947 million, up by 2.8% compared to 1Q20, almost doubling growth pace when compared to 4Q20 figures (+1.5% YoY), d
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Slide 6: Postpaid segment recovery and ARPU
(ii) Postpaid segment’s recovery has been reinforced by continuous focus on a “Value” approach, emphasizing churn management and an offer portfolio geared towards ARPU increase. In 1Q21, human postpaid churn stood at 2.7% per month, contributing to positive net additions. Postpaid Revenues grew 3.9%
Slide 7: TIM Live ARPU and presence
At the end of the quarter, TIM Live was present in 27 cities and 7 administrative regions of the Federal District. TIM Live’s ARPU (Average Monthly Revenues per User) was up by 6.1% YoY. The performance is explained by the penetration of higher-value FTTH offers with faster speeds (connections over
Slide 8: Operating Costs and Expenses
OPERATING COSTS AND EXPENSES *Operating Costs normalized by adjustments to towers’ sale-leaseback contract (+R$ 2.6 million in 1Q20), legal and administrative services related to special projects (+R$ 27.2 in 4Q20). Reported Operating Costs and Expenses totaled R$ 2,319 million in 1Q21 (+1.5% YoY).
Slide 9: Cost of Goods Sold and Bad Debt
Cost of Goods Sold (COGS) totaled R$ 146 million in 1Q21 (-8.3% YoY), following the drop in Product Revenue due to a lower volume of handset sales, despite the increase in higher-value product mix. The performance mainly reflects the closing of TIM’s brick-and-mortar stores (the Company’s main hands
Slide 10: From EBITDA to Net Income
FROM EBITDA TO NET INCOME EBITDA2 (Earnings before Interest, Taxes, Depreciation and Amortization) 2 EBITDA normalized according to items in the Operating Costs and Expenses section. 8
Slide 11: Depreciation and Amortization / EBIT
DEPRECIATION AND AMORTIZATION (D&A) / EBIT In 1Q21, D&A was up by 1.4% YoY, explained by increased Depreciation of 4G equipment and right of use related to a larger lease agreement base, even though it was offset by lower software amortization. Normalized EBIT3 in 1Q21 grew 12.8% YoY, reflecting EBI
Slide 12: Cash Flow, Debt and Capex
CASH FLOW, DEBT AND CAPEX *EBITDA normalized according to the items in the Costs section (+R$ 2.6 million in 1Q20,- R$ 2.4 million in 4Q20). In 1Q21, EBITDA-Capex came to R$ 696 million, a decrease of 32.4% YoY, taking EBITDA-Capex over Net Revenues to 16.0% (vs 24.4% in 1Q20). In an exercise to exc
Slide 13: Debt and Cash
DEBT AND CASH Gross Debt ended 1Q21 at R$ 10,235 million, up by R$ 79 million YoY. The current balance includes (i) leasing recognition in the total amount of R$ 8,180 million (related to the sale of towers, the LT Amazonas project and lease contracts with terms exceeding 12 months pursuant to IFRS
Slide 14: Cash yield and Net Debt
The average cash yield was 2.4% p.y. in 1Q21, flat compared to the 1Q20, above the Selic rate performance. In 1Q21, Net Debt totaled R$ 5,917 million, down by R$ 2,644 million when compared to the same period of the prior year, when net debt was R$ 8,561 million. This reduction is explained by the g
Slide 15: Quarterly Events and Subsequent Events
QUARTERLY EVENTS AND SUBSEQUENT EVENTS CELEBRATION OF AGREEMENT WITH IHS OF SHAREHOLDING IN FIBERCO On May 5th, 2021, TIM S.A., informed its shareholders and the market in general that, at a meeting of the Company's Board of Directors held today, an agreement ("Agreement") was approved between TIM S
Slide 16: Credit Agreements with Foreign Banks; Tax Contingency
CREDIT AGREEMENTS WITH FOREIGN BANKS In April 2021, the Company entered into two loan agreements with Banks BNP and Bank of Nova Scotia, in the total amount of R$ 1.1 billion. Those agreements are payable in three years. (Financial Statements, Note 20) TAX CONTINGENCY In March 2011, the Company rece
Slide 17: Operating and Marketing Performance
Operating and Marketing Performance MOBILE SEGMENT: GENERAL MARKET The mobile market reported a growth of 6.2% YoY in 1Q21, reinforcing the positive evolution of the base, observed for the first time since 2015, in the last quarter. In the past 12 months, postpaid net additions reached 12.0 million
Slide 18: 4G base and fixed segment
The 4G base ended the period with 44.0 million users, accelerating once again the pace and returning to the double-digit growth level (+12.6% YoY). The 4G handsets mix in the total human lines base reached its highest historical level, 92% (+12 p.p. YoY). FIXED SEGMENT: TIM Live ended the 1Q21 with
Slide 19: Quality and Network
Quality and Network QUALITY AND CUSTOMER EXPERIENCE For yet another quarter, efforts to simplify self-service and boost digital sales channels have generated positive results. In 1Q21, pure postpaid digital sales were up by 35.4% YoY, while Consumer Control increase by 23.7% YoY. TIM Live’s digital
Slide 20: Customer care and digital tools
Another fundamental factor is the simplification of caring processes. Therefore, in 1Q21, Meu TIM app continued to be an important tool to achieve this goal, offering customers greater transparency and control to manage their plans. The 15.0% YoY growth in the app’s monthly average of unique users,
Slide 21: Network Development
NETWORK DEVELOPMENT A key pillar in TIM’s strategic plans, expansion and improvement of network infrastructure is related to the continuous improvement of our services. In difficult times, “more than never, we need to be connected”, and, therefore, TIM reinforced even further its commitment to ensur
Slide 22: Fixed broadband coverage expansion
The expansion of fixed broadband coverage evolved positively throughout the quarter, surpassing 3.5 million homes passed with FTTH while FTTC ended March at 3.5 million HPs. This totals 6.4 million homes passed in 29 cities and 7 administrative regions of the Federal District (FTTH +FTTC)6. In trans
Slide 23: Environmental, Social & Governance
Environmental, Social & Governance 1Q21 ESG HIGHLIGHTS TIM has established a new and more ambitious plan named ESG Plan, for the 2021-23 three-year period. Based on the ambitions laid down in the previous Industrial Plan (2020-2022), the Company introduces new goals related to a set of initiatives,
Slide 24: Environmental
ENVIRONMENTAL o 64% of TIM’s energy matrix comes from renewable sources. In March 2021, 34 own power plants, including solar, hydroelectric and biogas plants were operational. By 2021, the company expects to reach 80% of its matrix from renewable sources. o TIM was the first operator to have 100% of
Slide 25: Disclaimer
Disclaimer The consolidated financial and operating information disclosed in this document, except where otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS) and in Brazilian Reais (R$), in compliance with the Brazilian Corporate Law (Law 6,404/
Slide 26: Investor Relations Contacts and Attachments
Investor Relations Contacts Telephone Number: (+55 21) 4109-3360 / 4112-6048 E-mail: ri@timbrasil.com.br Investor Relations Website: ri.tim.com.br Attachments Attachment 1: Balance Sheet Attachment 2: Income Statement Attachment 3: Cash Flow Statement Attachment 4: Operating Indicators The Complete
Slide 27: Attachment 1 Balance Sheet
Attachment 1 TIM S.A. Balance Sheet
Slide 28: Balance Sheet
DESCRIPT. 1Q21 R$ million ASSETS CURRENT ASSETS Cash and cash equivalents Short-term investments Accounts receivable Inventories Indirect recoverable taxes Direct recoverable taxes Prepaid expenses Derivative contracts Leasing Other assets NONCURRENT Noncurrent assets Long-term investments Accounts
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Slide 30: Attachment 2 Income Statement
Attachment 2 TIM S.A. Income Statement 26
Slide 31: Attachment 3 Cash Flow Statement
Attachment 3 TIM S.A. Cash Flow Statement 27
Slide 32: Attachment 4 Operating Ratios
Attachment 4 TIM S.A. Operating Ratios 28
Slide 33: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. TIM S.A. Date: May 5, 2021 By: /s/ Adrian Calaza Adrian Calaza Chief Financial Officer and Investor Rel