Slide 1: Classificado como Uso Interno
Classificado como Uso Interno
Slide 2: Disclaimer
DISCLAIMER This presentation contains Analysts and investors are Such forward looking Financial figures are declarations that cautioned not to place undue statements are not presented constitute forward-looking reliance on those forward-looking guarantees of future considering impacts statements reg
Slide 3: 2023 Highlights: Record-High Numbers Across the Board
2023 Highlights RECORD-HIGH NUMBERS ACROSS THE BOARD Highest Service Revenues¹ Best Capex on Revenues¹ Ratio R$ 23.1 Bln (+10.7% YoY in 2023) 18.9% Highest EBITDA¹ Highest Net Income¹ R$ 11.7 Bln R$ 2.7 Bln (+14.2% YoY in 2023) (+50.4% YoY in 2023) Highest EBITDA¹ Margin Highest OpFCF² 48.9% R$ 4.2
Slide 4: 2023 Highlights: Best Value Proposition to Our Customers
2023 Highlights SUPPORTED BY THE BEST VALUE PROPOSITION TO OUR CUSTOMERS… BEST SERVICE BEST NETWORK BEST OFFER Delivering improvements towards Consolidating our leadership in network Leveraging innovation through new customer experience excellence quality in Brazil partnerships +8.1p.p. 1st Operator
Slide 5: 2023 Highlights: Social Impact and Acknowledgements
2023 Highlights OUR BUSINESS ENABLING NEW NATIONAL AND INTERNATIONAL POSSIBILITIES FOR SOCIETY ACKNOWLEDGEMENTS NEW INITIATIVES PROVIDING ECONOMIC AND A Great Place to Work Brasil (12th place) SOCIAL IMPACTS +4.7k km +1.3 MIn >120k Only Telco in Latin America in CDP’s A List (Maximum Score) of highw
Slide 6: A Solid Performance in the Quarter Ensured a Strong Performance for the Year
4Q & FY Results A SOLID PERFORMANCE IN THE QUARTER ENSURED A STRONG PERFORMANCE FOR THE YEAR TOTAL NET REVENUE WITH SOUND GROWTH BOOSTED BY MOBILE (Normalized¹ Net Revenue in R$ Mln; %YoY) Net Revenue¹ +10.6% YoY in 2023 6,275 6.8% 5,874 241 Products 246 329 Service Fixed 323 Revenue¹ +10.7% YoY in
Slide 7: The Best Value Proposition Is Boosting Mobile Performance in All Fronts
4Q & FY Results THE BEST VALUE PROPOSITION IS BOOSTING MOBILE PERFORMANCE IN ALL FRONTS POSTPAID: 4th Quarter confirms one of the best organic PREPAID: Growth sustained by offer evolution performances ARPU ARPU (EX-M2M) (R$/mo) (R$/mo) 52.2 15.6 15.5% +15.4% 14.5% +12.5% 45.2 Postpaid ARPU 13.7 Prep
Slide 8: Our Selective Approach Enables the Consistent Growth Pace
4Q & FY Results OUR SELECTIVE APPROACH ENABLES THE CONSISTENT GROWTH PACE SUSTAINING THE PACE… DRIVEN BY A FTTH-CENTERED STRATEGY PERFORMANCE MAINTENANCE (Revenue in R$ Mln; %YoY) (Customer Base in ‘000; %YoY) More than 800K Customers (+12.1% 227 growth YoY in 4Q23) 9.5% 12.1% 802 207 716 Presence i
Slide 9: Solid Execution Drove a Robust EBITDA Growth with Margin Evolution
4Q & FY Results STRONG REVENUE PERFORMANCE SUPPORTING ANOTHER OUTSTANDING MARGIN RESULT (Normalized¹ EBITDA in R$ Mln; %YoY) 3,150 7.5% 4Q23 Opex: +6.2% YoY, driven by: 2,930 • higher international roaming costs, with the inclusion of new SOLID package offers for post-paid plans; EXECUTION • higher
Slide 10: Accelerated Execution of Towers Decommissioning Boosts EBITDA-AL Expansion
4Q & FY Results EBITDA-AL CONTINUES IN A HIGH-SPEED PACE (Normalized¹ EBITDA-AL in R$ Mln; %YoY) 2,461 15.1% ACCELERATED 2,137 Decommissioning penalties totaled R$ 83 Mln in 4Q23 and R$ EXECUTION OF 238 Mln in 2023. TOWERS DECOMMISSIONING 4Q22 4Q23 Lease Costs decreased R$ 104 Mln YoY in 4Q23 and in
Slide 11: Strong Net Income and the Highest Shareholder Remuneration Ever
4Q & FY Results A SMART OPERATIONAL EXECUTION LED TO A STRONG NET INCOME AND THE HIGHEST SHAREHOLDER REMUNERATION EVER ROBUST NET INCOME GROWTH PERFORMANCE A NEW LEVEL OF SHAREHOLDERS (Normalized1 Net Income in R$ Mln) REMUNERATION (Annual announced shareholders remuneration in R$ Mln) 900 Following
Slide 12: Robust OpFCF Growth Sustained a Solid Cash Position
4Q & FY Results ROBUST OpFCF GROWTH, DRIVEN BY DISCIPLINED CAPITAL ALLOCATION, SUSTAINED A SOLID CASH POSITION OUTSTANDING OpFCF PERFORMANCE… …AS A KEY DRIVER OF CASH POSITION GROWTH (EBTDA1 After Lease Minus CAPEX in R$ Mln; %YoY) (Cash³ in R$ Mln; %YoY) 1,169 53.4% 277 319 238 2,995 762 7,182 1,43
Slide 13: Year Guidance Over-Delivered, Achieving the Best Performance in Recent History
4Q & FY Results YEAR GUIDANCE OVER-DELIVERED, ACHIEVING THE BEST PERFORMANCE IN RECENT HISTORY SHORT-TERM TARGETS 2023 RESULTS GOALS (2023) (ACHIEVED) Service Revenue1 Growth: Revenue1 High single-digit YoY + 10.7% YoY EBITDA1 Growth: EBITDA1 Low double-digit YoY + 14.2% YoY Capex on Revenue¹: Capex
Slide 14: Recap of How Our Strategy Supports Our Journey to Become the Best Operator
Guidance Update RECAP OF HOW OUR STRATEGY SUPPORTS OUR JOURNEY TO BECOME THE BEST OPERATOR… MOBILE B2B BROADBAND EFFICIENCY Most preferred operator Shaping a new market Profitable growth Intrinsic for the business Cash cow with Exponential growth Selective approach, Strict discipline in capital incr
Slide 15: Delivering Cash Flow Growth and the Most Compelling Value Proposition
Guidance Update …DELIVERING CASH FLOW GROWTH AND LEADING TO THE MOST COMPELLING VALUE PROPOSITION FOR INVESTORS Cash Cost Revenue Efficiency Growth Initiatives Improving FCF Reinvesting in and shareholders growth avenues remuneration TIM S.A. – Investor Relations Classificado como Uso Interno Result
Slide 16: Driving New Possibilities, Updated Plan (2024-2026)
Guidance Update DRIVING NEW POSSIBILITIES, UPDATED PLAN (2024-2026): SHORT-TERM TARGETS MID-TERM TARGETS GOALS (2024) (Until 2026) Service Revenue Growth Accelerating growth Service Revenue Growth: pace as market conditions Revenue¹ (CAGR 23-26): 5% - 7% YoY improve and best value 5% - 6% propositio