Welcome to TIM's second quarter 2026 results presentation. Following today's presentation, Alberto Griselli, CEO, Andrea Viegas, CFO, and the investor relations team will be available for the live Q&A session.

Before we begin, please note that this presentation may contain forward-looking statements, which are subject to risks and uncertainties. Now, I'll hand it over to Alberto.

Hello, everyone. The second quarter was marked by solid execution.

We delivered revenue growth, profitability expansion, and cash generation in a balanced way, while continuing to diversify our revenue profile and strengthen our operations. As our growth avenues diversify, we increase the resilience of the business and develop a sustainable path for value creation to our shareholders.

Let me walk you through the main highlights. Revenue continued to show a consistent dynamic, approaching R$7 billion in the quarter, with service revenues maintaining a solid pace.

In the first half of the year, service revenue increased around 6%, reflecting broader contribution across the business. This performance was accompanied by further profitability gains.

EBITDA grew around 7% in the first half, while EBITDA after lease increased close to 8%, supported by operational efficiency, cost discipline, and continued margin expansion. Net income surpassed R$1 billion in the quarter, increasing around 6% year-over-year.

In the first half, net income also grew despite a more challenging comparison base for the lines below EBITDA. Cash generation remained strong.

Operating cash flow surpassed R$3 billion in the first half, growing at a double-digit pace and reinforcing the consistency of our cash generation. Looking to the different areas of the business, we saw solid performance from our key growth platforms, with mobile remaining of course as the foundation of our performance, while Ultrafibra and B2B playing an increasingly more important role in our business evolution.

In mobile, results were supported by continued postpaid expansion, which now represents close to 70% of mobile service revenues. This reinforces a higher value and more resilient customer base.

During the first half, we focused on building a more dynamic and segmented portfolio, allowing us to better address customer needs while creating additional monetization opportunities. This includes expanding the usage of credit card as a payment method in annual and monthly options, materialized in TIM Controle Fit.

This launch expands our addressable market through more flexible propositions, strengthening value perception and engagement. Our streaming proposition is also evolving following the launch of TIM Play, a content aggregation platform, creating new opportunities for monetization while increasing customer stickiness.

In financial services, the partnership with PicPay represents another step in expanding our digital ecosystem and creating cross-selling opportunities through an integrated customer journey. In broadband, Ultrafibra maintained positive momentum, with customer expansion and consistent revenue growth, strengthening its relevance within our portfolio.

To propel this further, we just launched TIM Ultra Combo, our first truly convergent offer. It combines fiber, mobile, and content to strengthen our value proposition in selected markets, enabling TIM to target new pockets of growth while supporting LTV-oriented actions.

In B2B, we continue to build a strategic growth platform. Revenue is expanding and gaining relevance, now representing around 7% of our service revenues.

At the same time, we're advancing beyond connectivity with progress in IoT, private networks, and digital solutions. At the same time, artificial intelligence remains an important enabler of our transformation journey and a key lever for efficiency gains.

One example is collections, where artificial intelligence supports more proactive and personalized interactions with customers in debt collection and negotiating processes. Early results are encouraging, with more than 2 million customers engaged and a meaningful improvement in recovery rates through the artificial intelligence agents.

Together, these initiatives reinforce the evolution of TIM's business, supported by disciplined growth, a broader set of revenue drivers, and consistent execution. We also continue to strengthen the foundation of the company through our culture, recognized by Great Place to Work, and through solid governance practices.

Thank you, and now let's move to the live Q&A session.

Hi Alberto, Andrea, Vicente, and Luiza. Good morning, and thank you for the opportunity of making questions.

I have two questions from my side. The first one is about I-Systems and FTTH.

How's the I-Systems acquisition changed your FTTH build economics and homes passed ambition? What incremental CapEx commitment should we expect?

The second question is about the mobile base, which contracted in this quarter while the market share fell. Is this a deliberate value over volume decision, or has the competitive response, including the intermediate price offers now in the market, is started to cause you churns?

Thank you.

Hi Luis, good morning. Let me go quickly through the two questions.

When it comes to I-Systems, I-Systems for us, it's some kind of accelerator of our broadband strategy because now we control the network, the experience of the client, and to a better extent, the financial profile of broadband. Therefore, once we have acquired and we own back our network, this is one of the growth vector of our company going forward on a own network, besides the agreement that we have with V.tal.

When it comes to the additional CapEx, basically, we already discussed in previous quarters that we saw some kind of upside risks on our CapEx profile, meaning that we are optimizing our CapEx base through a number of different mechanisms, and therefore there shouldn't be any material impact of I-Systems CapEx in our CapEx profile. We are able to absorb it, basically.

When it comes to the revenue growth, and the mobile revenue growth, it is important to say that we look at the revenue growth in a portfolio way. We got two business lines growing double digit, and we have mobile growing at a single digit at around 4.7%.

This slowdown was somewhat expected, because if you look at our revenue evolution quarter-by-quarter, once we do the price-up, then it tends to slow down. That was also accompanied by a slower or softer customer base dynamics in the first half.

The net additions results of a mixture of gross and churn has been softer in this first half versus last year, and the second half last year. That's the reason why we put together on the ground a number of evolution of our value proposition, the new offerings that have been launched, to give more dynamisms to the customer base dynamics.

When you look at the customer base dynamics, also remember that we executed a price-up in the first quarter, and therefore churn is a bit pressure in the first quarter and the second quarter, and so this also impacted our net addition dynamics. Was it clear, Luis?

Yes, very clear. Thank you, Alberto.

Hi Alberto, Andrea, Vicente, and Luiza. Thanks a lot for the opportunity.

I have a couple here. The first one on revenue growth, excluding M&A, revenue grew just slightly below inflation, mainly as the core client-generated business is growing at 3.1% year-over-year.

My question is, is there any plan to address growth in the core mobile line and reaccelerate its pace? If you could please share with us your thoughts on that.

Also the second question, a follow-up from the first one, could you please walk through the competitive environment, if there is any unusual discount from other players, and also if TIM is planning to increase control plans' front-booking prices this year? Thank you so much.

Let's go to the revenue growth slowdown, building up on the previous answers to Luis. The main driver behind the slowdown is the dilution effect of the price-ups, plus the customer base dynamics.

Do we have plan to give more dynamisms to the mobile revenue growth? Yes.

As a matter of fact, we restructure a number of our offerings just this quarter or at the end of the previous quarter. There is a wide portfolio review, and the objective is to give a push or a boost to the customer base dynamics in a number of different ways.

If you look, we have four main areas of interest. The first one is the Ultra Combo, which is the convergent offering that we just launched.

This would help primarily the broadband, but it also has a positive effect on the churn of our customer base. Then we launched the TIM Play portfolio.

This is an evolution of the way we go to market with streaming products. It's a paid product, and therefore this will support monetize our own customer base, it's an ARPU driver.

Of course, this also supports the optimization of the cost related to the acquisition of this content. Then we have the third one, which is TIM Fit, which is a new Controle plans that is payable via credit card.

This is a double objectives. The first one is to feed our prepaid to Controle migration with a lower credit risk.

The other one is to fill a gap that we have in our portfolio related to the let's say digital or BTL offering that our competitors already had. The last one is a new go-to-market, which is the one related to the partnership with PicPay, basically it's a go-to-market whereby we will have another leg or another platform to grow our customer base.

These different value proposition have complementary business objectives, both in terms of ARPU growth, migration, internal migration, on our customer base, and more attractiveness on the market itself. When you go to your second question, which is related to the competitive dynamics, I think that it's important to step back for a while and just recap what has been going on in this last quarters.

Let me go directly to the end. The end is that there is more predominancy of what we call BTL offering or pricing.

That in the market, we have what we name and what we call ATL, above-the-line offering, this is our general postpaid, pure postpaid, and prepay pricing, the front-book offering that you see in shops, in the e-commerce. Then you have a number of offerings that we label below-the-line offering that are generally used to migrate customers from prepaid to Controle.

One of our competitor at the end of last year made one of this offer available through an MVNO agreement, and so something that is, let's say, more contained became a bit more widespread. If you look at the way the market responded, then we saw the other competitor that launched this BTL offering that already had in a more widespread fashion.

That's the reason why we also had to adapt our portfolio, and so we launched this TIM Fit proposition that basically complement this one as well the partnership with PicPay. Now, it is also important to say that when you go to the market rationality, let's put it this way, you always have ups and downs.

In the past already, we had moments where one of our competitors increased price and then afterwards decreased price. It's a sort of cycle.

There is a good moment and there is a moment that is not so good. Nowadays, the market is more competitive, or it looks more promotional, because these BTL offerings are more available and visible.

That doesn't mean that then after this period, we go back to a better period. When it comes to the front-book adjustment of our Controle price, we certainly want to do it, but in order for us to do it, we have two competitors with a higher postpaid market share, and so let's see what they do, and then we will move accordingly.

Okay. Thanks a lot for the clarification.

It's very helpful.

Hi, good morning. Thanks for taking my questions.

The first question, I wanted to double-click on these new plans that you launched on the hybrid. What is the risk of cannibalization of the higher-end Controle plans?

How do you control for that? The second question is an update on M&A.

How are you seeing the prospects? What is the current view of TIM in going to broadband?

If you could expand a bit on that, that would be great. Thank you very much.

If I understood correctly your second question, let me go to the first one. The risk of cannibalization, it's of course exists, and generally we mitigate this risk of cannibalization with a number of strategy, including the remuneration of our commercial networks.

When you look, for example, to TIM Fit, TIM Fit is a product that is available primarily for people that don't pass the credit score for Controle plans, so that won't be able to get along to buy a Controle plan because they don't have the credit profile. Therefore, they pay by credit card, the credit profile passes, and the customer is converted.

If you design the process and the remuneration in the right way, you mitigate the risk of cannibalization. It's the first question.

Marcelo, can you repeat your second one in terms of the prospect of broadband?

M&A, I was asking about merger and acquisitions, what's your appetite for M&A, how are you seeing this as a strategy to grow in broadband. Just wanted a refresher on your M&A plans and fixed strategy.

Thank you.

Right. When it comes to the fixed strategy, we already bought I-Systems back, and that was the first driver of faster growth in broadband that is related to the fact that we control the network, we can manage profitability and commercial push in a more controlled way, besides the customer experience.

That's one of the reason why we launched this TIM Ultra Combo plan. We launched a couple of weeks ago, the results are quite positive so far, we are happy with what we are seeing, and this is before we even go to the wider communication, we didn't launch any commercial advertising campaign yet.

When it comes to the M&A, you know that I think that the answer is similar to the answer of the previous quarters. Basically we profile and we analyze almost all targets, we know pros and cons, we know the way that they contribute commercially or industrially to our strategy.

We also think that given the overall environment, the pricing aspect is also important. The outlook ahead in terms of inflation and interest rate can create good conditions for us going forward.

We don't have any rush at this point in time, because we just launched an upgrade on our strategy after the acquisition with I-Systems. We think that we got a significant and material opportunities in front of us related to what we are doing, and therefore that on this one, as well on the B2B one, we can grow revenues at a faster pace while clearly we work on putting more dynamisms on the mobile side.

Perfect. Thank you very much.

Hi, everyone. Thanks for taking my questions.

Two questions. The first one on the margin dynamics.

We've seen a deceleration in client-generated revenue, but margins continue to expand. If you could provide color on the margins of the part of revenue that is not client-generated, and if it is what currently allows the consolidated margin to hold up, or this expansion is explained by other drivers.

My second question is on capital allocation. How do you balance the distribution to shareholders, considering the investments required to scale fiber and convergence, and especially following the increase in net debt after the I-Systems transaction?

Thank you.

Let me go on the margin dynamics. I think that you have different business lines with different margins.

Broadband has a high margin, B2B has a lower margin, mobile has a higher margin. We have quite a wide set of initiatives to increase the productivity of our operations, and that it's the opportunity lies ahead and the opportunity that is underpinning our margin expansion going forward.

If you look at the cost performance, you will see that there are some costs that are increasing, like bad debt is increasing a bit, but we are comfortable that we can manage this. There are a number of costs that are going down.

You will see HR and G&A increasing a bit because we are consolidating V.tal and I-Systems, but at the end of the day, we have a wide set of initiatives to keep on increasing marginality going forward. That is underpinning the expansion that we are seeing and they will keep seeing.

When it comes to the capital allocation, and then I will hand over the word to Andrea, the acquisition of I-Systems, as I was saying, basically the I-Systems has a positive impact on OPEX and potentially a negative impact on CapEx. When it comes to the CapEx, we share with you guys that we have been optimizing our CapEx profile in terms of what we acquire, especially network systems, the swap and all these sorts of things, and therefore we're able to absorb this within our CapEx profile, maintaining the plan that we have in place for mobile.

Hi Gustavo. Related to the capital allocation, the way we think about capital allocation didn't change with the acquisition of I-Systems.

As Alberto mentioned, we have so many opportunity with I-Systems. They have an asset, an important asset that we have room to monetize, increase take-up, we are not considering increase our CapEx, the CapEx we already declared in our guidance, because of I-Systems.

What we will do is monetize the asset. Our capital allocation will continue with the same goal to invest in attractive returns and maximize the shareholders' remuneration.

We consider that we have enough cash for this, even with the increase of debt of I-Systems that we will work on. We are just announced an increase of capital of I-Systems, exactly to deal with this debt.

We have enough cash for support our dividends and the CapEx of the I-Systems.

Very clear. Thank you very much.

Good morning, Alberto, Andrea, Vicente, Luiza. Thanks for the opportunity.

I also have two questions. The first one is related to bad debt expenses.

We once again saw a small volatility in this line. You mentioned in the release that this has some relation with a non-recurring effect of in a specific client in the B2B market.

Just want to make sure whether if we were to adjust for this non-recurring event, if you would still see some pressure on bad debt expenses, and if that's the case, if does reflect maybe a tougher macro environment for your client base. This would be my first question.

The second one, also related to macro, if you believe that maybe some volatility in the macro environment could lead to some revision in your plans on growing on the B2B market, which may be a bit more sensitive to those dynamics. Just want to test this hypothesis with you guys.

Thank you very much.

Sorry, let me go with the second one and then I will leave the bad debt to Andrea. When it comes to B2B, we are not seeing so far a slowdown in our activity.

I will say, Gustavo, that one of the reasons is also that you see we disclosed in this report that our B2B revenues is 6.6% of our overall revenues, basically we are a small player and an attacker in this space through let's say a very specific business model that is related to the IoT solution and services and with V8 the digital and artificial intelligence solutions. We didn't see, or we're not experiencing, a slowdown in the verticals where we operate.

As a matter of fact, we have the best second quarter in the IoT solutions in our history, and when you look at V8 prospects and pipeline, it's quite rich. We're not seeing a deceleration yet.

Now, of course, there is a number of things that are happening in Brazil and outside of Brazil, the impact of the macro environment is a sort of volatile, but we don't see and we're not seeing a slowdown in the B2B line. For the bad debt, Andrea.

Hi, Gustavo. As I mentioned in the first quarter, we have this situation with our B2B customer, a partnership, that also impacted the second quarter, and this is a one-off situation.

Of course, we have expansion in our customer base and in our postpaid customer base that came with a slight increase in the bad debt, but we consider that we are achieving a plateau. We have this increase from the past two quarters, the first and the second quarter, but we consider that we have achieved a plateau and we expect a gradual stabilization in bad debt moving forward.

We are working hard in mitigate this impact, besides the one-off, of course, working with our credit scoring models and customer segmentation, and we are doing a collection initiatives now with AI that we expect to have to improve this line in the coming future.

That's very clear. Thanks, Andrea.

Thanks, Alberto.

Hi, everyone. Thanks for this opportunity.

My first question comes on the B2B. After the two first months of the incorporation of V8, can you please provide us how you feel about the asset?

What is your B2B strategy going forward? What should be the low-hanging fruits in terms of revenue growth ahead?

The second question comes on top of profitability. Andrea, you just mentioned about AI, could this be a lever in terms of operating efficiencies, especially when it comes to call centers expenses already in the short term?

Thank you.

Maria Clara, let me go with the B2B. We are already working very closely with the V8 guys, and the low-hanging fruits are basically the cross and upselling of our strategic verticals with V8 product portfolio.

If you look at our strategy, basically on B2B, especially in IoT is where V8 provides value, we selected some verticals. These verticals are the agribusiness, the logistics business, the utility business, and the mining business.

We have important core customers that we've been serving for a while now and successfully. The idea is to identify the opportunities of cross-upselling our sort of coverage as a service portfolio with V8 digital and AI services.

A number of discussions are already in place. The cycles for selling these more complex projects, we know that they're not short because they're business critical, they got business impact, but the low-hanging fruits, basically it's upselling our strategic customers with a wider set of portfolio.

When it comes to profitability, I will leave it to Andrea to address this.

Hi, Maria Clara. Related to AI, we are continuing work with AI.

We have mentioned several times we're working in several fronts: network, of course customer care, now I just mentioned the collection, and we have in legal area also we are introduced AI. We consider that it's not a structure change, but we have several fronts where we work and increase the productivity, but we believe this is a combination: these AI's fronts, but also maintain our operation discipline, our focus in efficiency.

This combination will continue to increase our productivity, but not just a AI program. I don't know if you want to complete, Alberto.

I will put some additional color, Maria Clara. If you look at the last page of our presentation today, you will see on the right a number of use case categories that we're working on.

Some of them are already in the implementation and material impact, and I would say that network is one of them and IT is another one of them. What does it mean?

That the impact is already there, is material, and by the way, it's not completed. We implemented the first wave, where basically we achieved some kind of increase in productivity and increase in the quality of output.

There are others where basically we still need to get to the material impact, but we are getting there. When it comes to the call center, for example, that you mentioned, a number of activities are already fully digitalized.

Now we are working on the complex one. One of the complex one is, for example, that gets to the human operators, and they are related to the questions or complaints or explanation related to the bills.

Since there is a trade-off between the revenue that you trade off versus the customer satisfaction, this is a difficult one that is still managed and handled by human attendees. Now we are working on the complex part, and the idea clearly is get to the point whereby the system can handle this 100%, almost 100%, via artificial intelligence.

We're doing good progress, the first wave has been done on the easy part, and now we're getting to the complex one. It takes some time, but we have quite a wide set of portfolio of initiatives that will support us to increase productivity for a number of years ahead.

Very clear. Thank you.

Hi. Thank you for taking my questions.

The first one is on TIM Ultra Combo. What percentage of your mobile subscriber base is covered by TIM Ultra Combo?

Do you have plans to expand it? If you have plans, how do you plan to expand the coverage?

Is it by your M&A strategy, or do you have intentions of partnering with other fixed broadband operators to offer a converged product? Thank you.

Phani, let me try to rephrase it just to make sure that I understood it correctly. Did you ask what was our plan in terms of an expansion of TIM Ultra Combo?

Yes, basically, your fiber base is pretty low compared to other operators, some other big operators. What percentage of your mobile subscriber base is currently covered by TIM Ultra

Combo?

Then, do you have plans to expand it? Then, do you have plans to expand it by either going for a different M&A in fixed or doing product collaboration with other fixed broadband operators?

Right. Phani, let me go to the first one, and then to the plan to expand it.

On the first one, the product itself is already available nationwide. We basically operate via former I-Systems as it's our network, and our partner V.tal in the main capitals of Brazil.

The Ultra Combo has been launched across the board, it's already available on the entire footprint. Clearly, the business model is a bit different, and this reflects or may reflect in some way in the commercial value proposition, which is the price tag that we are putting in one region versus the others, remembering that the competition in broadband is regional, we can adapt it, our offering, regionally.

Basically, the product is available nationwide, and the only things that may change is the commercial terms in one region versus the other region. Therefore, the footprint is already our footprint.

The idea is to leverage our own customer base and our brand to accelerate broadband take-up. This is basically what we are going to see in the coming quarters, and with a positive fallback also on a longer term on churn on mobile services.

This will appear over time. This is the organic, let's put it this way, at this point it's the organic plan.

Then there is other organic plan where we can add to our portfolio additional technologies, we are looking into that also. That would be organic also, and then there is another plan that is related to potential M&A whereby basically we buy somebody, and with their fiber, and complement our footprint also through an acquisition.

This plan, it's a plan that whereby I commented before, we profile all the players, we know pros and cons, we know what they add to our strategy and where, clearly, and we're just waiting for the right condition to materialize, and we think that better condition can materialize going forward.

Great. Thank you.

Maybe one quick follow-up. In the comments, you said that price increases have led to some increased churn in 1Q and 2Q.

As you look through 2Q into different months, are you seeing better churn trends in June compared to April?

If I understood correctly, Phani, you're asking if I commented that we saw some kind of churn increasing in Q1 and Q2? The answer is yes.

This is normal in generally when we do price-up, that would be back-book price-up. The context was a bit more challenging because there was a bit of more of ATL offering around, and we didn't move like last year with front-book prices in the first and second quarter.

Having said that, when you look at our churn level, it goes up and then goes down. If you ask if June is better than April in terms of churn level, the answer is yes, June is better than April.

Okay. Yeah.

Thank you. Thanks a lot.

Good morning, everyone. Thank you very much for taking my questions.

The first one related to the platform revenue, that more than doubled in the second quarter. I would like to hear if you expect any kind of volatility in this line, or we should see this as a trend going forward, very high growth going forward.

Second question related to international roaming expenses, that seem to be very volatile, making much more difficult to read if EBITDA margin was good or not, if there's any mismatch between roaming revenue and cost. Any color here would be welcome.

Thank you. Hey,

let me address the first one and then I will leave the second one with Andrea. We have in our revenue profile different types of revenues.

We got the mobile core revenues, then we got the platform revenues, within then we got the advertising revenues, then we got the B2B revenues. Some of them are slightly more volatile versus the others, and therefore have been part of our strategy many, many years.

Therefore, once we close one deal with mobile advertising can be big or can be small, but overall, if you look in the year-end results, the numbers have been growing year after year. When you look at the platform strategy, we got some partnership that work better, some that they're not scale up.

They represent some volatility, but generally the trends, since this are part of our strategy, that if you look not on a quarterly basis, but on an annual basis, this are accretive. The larger the scale, the less the volatility.

If for example, take B2B also, or the IoT within the B2B, it's a smaller one, but is growing over time. Every now and then, we close a big deal, like the ones that have been closing in the last quarter, like CNH and CPFL, you see clearly a spike.

If you take this year versus last year, it's growing. Some of the revenues, even because of their size, they're more volatile, but the general trends, it's positive and it's part of our revenue portfolio growth whereby until some years ago, we just had mobile, and now we got mobile, we got broadband, we got B2B, and we got platform strategy, and all contribute to a better resilience of our top line.

Hi, Daniel. Related to the roaming costs, we have these agreements with the big carriers, and we close an amount for a year.

They send us the data and we send for them the data, this is the difference between the revenue and the cost. The revenue and the cost is not combined of each quarter.

When you see the full year, you see a combination between revenue and cost, but each quarter is not aligned. The first quarter, we have the peak of our cost of the interconnection roaming was one of the impacts that we had in our OPEX.

In the second quarter, as we mentioned in the previous quarter, we was expecting a decrease, and we're expecting this for the rest of the year. The revenue will occur during the year.

Only when you see the full year, you can see the combination between the revenue and the cost. I don't know if I addressed your question.

Yes. Yes.

Just one follow-up. The roaming costs, the bottom happens in the second quarter.

Is that correct?

The revenue occurred during the quarters.

The cost?

The cost, in this year, the major part occurring in the first quarter. In the next quarters, we'll see not a peak like we saw in the first quarter.

If you remember, if you see our results in the first quarter, we have a very high interconnection roaming. This quarter is normalized.

To make this simple, Daniel, generally, the cost tends to be higher in the first half and the revenues tend to be higher in the second half.

Yes.

Okay. Thank you very much.

This every year. Every year is the same.

Yes, every year is the same.

Okay. Thank you.

Thank you all for joining today's video call. The market continues to evolve, and we have been driving our strategy to capture the opportunities in broadband, B2B, and obviously mobile.

Our team is working relentlessly, I want to thank them for the effort and results, and I look forward to meeting you in the coming days. Ciao.