Hello, everyone. I'm Vicente Ferreira, Investor Relations Officer of TIM Brasil.

Welcome to our earnings conference for the fourth quarter of 2025. Today joining me to discuss the highlights of our results, I have the CEO Alberto Griselli and the CFO Andrea Viegas.

As usual, we close our call with a live Q&A session. Let's get started.

Alberto, great to have you here. What can you tell us about the main highlights of the 2025 results?

Thank you, Vicente. Hello, everybody.

It's a pleasure to share results that represent more than another solid quarter. They depict a consistent execution of our strategy and full delivery of our promises, confirming the track record of TIM Brasil in meeting its target.

From a financial standpoint, service revenue grew above inflation, with a year-on-year expansion of 5.2%. Check.

EBITDA margin expansion, reaching 51%, as EBITDA increased 7.5%. Check as well.

Capex was essentially flat versus 2024. Check.

Operating cash flow grew at double-digit, closing the year expanding at 16%. Check.

With the dividend anticipation, we closed the shareholder remuneration at R$4 billion in cash, plus R$750 million in share buyback. Check.

In all, guidance was delivered with a combination of strong cash generation and disciplined capital allocation.

Really impressive financial performance, Alberto. Beyond the numbers, what can you tell us in terms of operational results and other achievements that the company made during 2025?

Sure, Vicente. You're right.

We had many deliveries that go beyond financials. In 2025, we continued to reinforce our strategic positioning.

TIM remains the leader in 5G in Brazil, with coverage of more than 1,000 cities, 52% more cities than our second player. We, once again, the most awarded operator in Opensignal latest report, winning in key categories such as consistent quality and reliability.

In B2B, we surpassed R$1 billion in total contracted value across all verticals. For the third consecutive year, TIM was featured on the CDP A List, confirming our leadership in climate and ESG practices.

On top of that, we continued to capture productivity gains, applying digitalization, artificial intelligence, and strict discipline in capital allocation.

Great list of achievements. Alberto, what can you tell us in terms of the contribution of each area of the company and the support that those different areas were able to deliver for our results as a whole?

Vicente. When we look inside the business line, 2025 tells a coherent story.

In mobile, we strengthened the pillars that have been driving our performance in recent years. Net service revenues grew at a solid pace, supported mainly by mobile services, which increased 5.4% in the year.

Postpaid was again the central engine. Postpaid revenues grew 9.5% in the fourth quarter, and our base expanded by 8.4%, with another year of positive net additions.

ARPU in postpaid excluding machine-to-machine reached almost R$55, growing 3.1% year-on-year, which reflects our ability to combine volume and value, strengthening value capture across our customer, migrating them to higher-value offers while keeping churn under control. At the same time, the prepaid segment began to show more encouraging signs.

The revenue decline decelerated for the third consecutive quarter, indicating that our actions to stabilize this base through more targeted offer, better segmentation, and improved customer experience are starting to gain traction. The combination of robust postpaid expansion and more stable dynamic in prepaid supports a healthier, more balanced growth profile of our mobile business.

None of these achievements would have been possible without the strength of our network. Throughout 2025, we further consolidated what has become a structural advantage for TIM: our leadership in coverage and technical quality.

We maintained the broadest 4G and 5G footprint in Brazil and delivered tangible benefits for our customers. TIM's excellence was recognized in the latest Opensignal report, where we took home six national awards, demonstrating that our investments are not just expanding coverage, but actively enhancing customer experience.

One of the year's most significant milestones was the completion of our network modernization project in São Paulo, which has transformed the experience in the country's largest market. By modernizing every site in the state, we expanded 5G and 4G coverage, increased capacity, and improved overall quality performance.

We are now extending this modernization to other cities, with a plan that includes around 6,500 sites to be swapped in major capitals until 2027, establishing a new standard of quality and experience of our customers across Brazil. In fixed services, 2025 was a turning point for our broadband operation, TIM UltraFibra.

After a period of adjustment and portfolio optimization, broadband revenues returned to growth in the fourth quarter, supported by an improvement in net additions and nearly complete migration from FTTC to fiber. By the end of the year, we reached 850,000 customers and FTTH ARPU of roughly R$95.

TIM UltraFibra revenues grew 6.2% year-on-year in the fourth quarter. This shows that our strategy of focusing on quality, rationality, and operating efficiency is working, and we are building a more sustainable broadband business for the future.

Another significant milestone in 2025 is our progress in B2B. Our solutions have achieved meaningful impact across key industries.

In agribusiness, TIM coverage surpassed 26 million hectares, enabling precision agriculture, automation, and greater productivity across vast rural areas. In logistics, we expanded to more than 10,000 kilometers of highways, connecting major corridors and enabling monitoring, safety, and operational intelligence.

In utilities, we sold nearly 470,000 smart lighting points, helping cities modernize infrastructure at scale with efficiency and control. In mining, our advanced connectivity spanning 4G, 5G, and IoT supports safer and more automated operations.

These verticals combined allowed us to surpass an important milestone of R$1 billion in total contracted revenues since the beginning of this journey, confirming B2B as a structural growth engine for TIM, not a future possibility. It is already real, scaled, and part of our core.

Vicente, in sum, we saw relevant contribution and strong support from every single line at TIM Brasil.

Thank you, Alberto. We'll come back to you for your final remarks later on.

Now our CFO, Andrea, will walk us through the details of our financial performance. Andrea, thank you for joining us.

Thank you, Vicente. Hello, everyone.

We closed the year with another strong set of financial results, reflecting the disciplined execution of our strategy in 2025. This quarter reinforced a story that has been present all year long: cost optimization, expanding profitability, and a clear focus on sustainable value creation.

Over the last 12 months, our efficiency programs has continued to reshape our cost structuring. Operating costs again grew well below inflation, with opex rising just 1.8% year-on-year in 2025.

This reflects the structural initiatives underway across the company, showing that this approach is not a temporary effort, but a core part of how we operate. This strong execution contributes to another year of relevant improvement in productivity, with EBITDA increasing by 7.5% and our margin achieves 51%, making an important milestone.

We also advanced lease-related efficiency initiatives, already contributing to strong results in 2025. EBITDA after leases grew 8.3% year-on-year, supported by continuity optimization of our industrial cost structure and margin sustainability.

These operational [unclear] year-on-year. In total, we delivered what we committed: R$4 billion in dividends and IOC, plus R$750 million in buybacks, reaching 139% payout ratio.

This demonstrates not only our strong financial performance, but also [unclear] company delivered another quarter of double-digit expansion in operating cash flow, grew 15.7% year-on-year in 2025, and lifting the margin to 22.7%. Throughout the entire year, we maintained solid cash conversion, supported by margin expansion and well-management capex.

Finally, our balance sheet remains a source of stability and resilience. Our leverage remains highly comfortable, giving us the flexibility to continue investing with discipline while sustaining attractive shareholder returns.

These results give us confidence as we enter 2026, with TIM well-positioned to continue creating value for all stakeholders. Back to you, Alberto.

Thank you, Andrea. As we step back and look at 2025, the conclusion is clear.

It was a year of execution, consistency, and evolution. We delivered exactly what we promised and built a foundation for advancing our strategy in 2026.

Our direction is set. We will drive value creation through mobile, B2B, and broadband, supported by three key enablers that run across the entire company: artificial intelligence, efficiency, and ESG.

In mobile, our focus remains on strengthening profitability through a customer-first approach, continuously improving the experience, and reinforcing the values of our offers. In B2B, we are ready to capture a new wave of opportunities with a wider and more scalable portfolio that integrates connectivity, infrastructure, and digital services.

The acquisition of V8 was an important step to enhance our capabilities. In broadband, we enter 2026 with a more efficient operation, a more reliable service, and a portfolio aligned with sustainable expansion.

Supporting all this, artificial intelligence becomes a transformational layer in our operating model, helping us automate, simplify, and accelerate decisions across every area. Our efficiency agenda remains a hallmark of execution, ensuring discipline in capital allocation and allowing us to explore new growth avenues while protecting margins.

ESG continues to be a structural component of who we are, shaping our culture and guiding long-term value creation. Confirming this long-term view, in 2025, after many years, we finally reached an important milestone for our shareholders and the financial community.

Our return on capital is higher than the consensus cost of capital. Now let's move to the live Q&A session, Vicente.

Thank you, Alberto. See you in a bit, guys.

Before proceeding to the Q&A session, I will pass the floor to Alberto Griselli. Please, Mr.

Alberto, the floor is yours.

An introductory note. Good morning, everybody.

Today, we took an important step in our broadband strategy by acquiring full control of I-Systems. This will allow us to improve the efficiency of our broadband operation, to deliver a better end-to-end customer experience, and position ourselves for future movements.

Now we can actually proceed to the live Q&A session. Thank you.

Hello. Good morning, everyone.

Congrats on the solid results again. Actually, I have two questions here.

The first one on margins and efficiency. You delivered strong margin expansion this quarter, with EBITDA growing much faster than revenues.

How much of this efficiency is structural, and how much was more temporary or specific to this quarter? If I may, the second one on I-Systems.

With the consolidation of the company, how should we read this strategic move? Does this suggest a stronger long-term commitment to the asset and a lower probability of a potential sale of the fiber business?

Looking ahead, what would be natural next step? Does it make sense to revisit M&A opportunities, maybe looking at regional fiber players, or is the focus now fully on organic growth?

Thank you.

Bernardo, let me go with the second one, and then I will pass to Andrea for the margin expansion. When you look at our broadband operation, I think that this quarter has been marked by a positive news on the industrial performance, because after the fine-tuning, we managed to get to a revenue growth, we are back on track on something that has been underperforming in the previous quarter for last year.

In the last quarter, we managed to return to a growth pattern and consolidate and optimize our model. At the same time, we need to recognize that the neutral model that we wanted to implement faced a number of challenges, and so the benefits of scale that were supposed to happen, as a matter of fact, they didn't happen.

The reacquisition of control of I-Systems provides us a number of benefits. The first one is that we get control of the end-to-end operation of our customers, and support one key indicator that is churn management and customer level of service.

The second one is that we'll be able to increase our efficiency of operations, this measure is going to be accretive on the margin expansion and a bit dilutive on capex, but overall, it's going to be neutral on free cash flow generation. The third and most strategic one is that it positions ourselves for our next step.

The question is what is our next step is, and we addressed this in previous calls, whereby we say that we are looking at a number of different options. As a matter of fact, the sale of our broadband operation has never been actually on the table, right?

We say that we have extreme opportunities, we are assessing them, but all of these opportunities have the intention to increase the value generation of our business. Sale was not there as an option, since you mentioned, I just want to clarify this.

Good morning, Bernardo. In reference to the margin efficiency, this is the consequence of the cost optimization that we are working for the past years.

This year, we mentioned several times we have an efficiency program that's in place, and the results is structural in the major part. This quarter, we have some effects that the first one is the Vistor, the interconnection cost for the Vistors.

This is a effect in this quarter. If you look in the first quarter, we have a increase in the Vistor interconnection, and this quarter, we have a decrease, remembering that the cost of interconnection refers to the full year, we have this balance between quarters.

Another effect in this quarter was in the reduction of taxation in the overtime pay. Again, these two effects affect this quarter specifically, the fourth quarter, but the results is the efficiency that we have in a structural way, and as a consequence, we are delivering what our commitment to expanding margin.

Very clear, Andrea and Alberto. Thank you.

To you, Bernardo.

Hi, everyone, Alberto and all the team. Thanks for taking my questions.

Two on my end as well. Congrats on the results.

My first question regarding margins. We saw a decrease in the network and interconnection expense, which was really a highlight to us.

If you could comment on the main drivers behind that, you mentioned in the release a cost optimization of digital content providers, and how to think about this line going forward. My second question is on mobile competition.

We've been seeing some less positive figures on mobile portability in Q4 based on data from the regulator compared to past periods for TIM. How do you see this competition, especially given this mobile portability numbers we have been seeing lately?

If you think this comes from any NuCell impacts? Thank you.

Gustavo. Let me take, again, the second, and then I will pass the word to Andrea for the first one.

When it comes to the dynamics of portability, when you look at our report, you see that our churn level is almost stable all the quarters. Therefore, the increase of portability means, as a matter of fact, that the share of portability within our churn is increasing.

This depends on a number of things, one of them being the commercial practices of our competitors. Our churn level is fairly stable during the quarters of last year.

When we are looking forward, you will see that in the first quarter, we are executing our price adjustments, and this tends to pressure a bit the churn level, as normal. We are executing it.

As a matter of we started with messaging and informing our customers in December, and as a consequence, churn is going to be a bit higher in the first quarter, resulting in softer net additions. When you go through the NuCell impact in market dynamics, I would say that if you look from a general perspective, I believe that the market is pretty rational and keep on being rational, and that our ability to attract customers remain as it was, as a matter of fact.

Unfortunately, Anatel stopped sharing the number of NuCell subscribers, and therefore, we cannot rely on an independent source to measure the growth of their numbers. What we see, it's our internal view, and our internal view is based on a number of KPIs that we use, and the impact is not material at this stage.

Hi,

Gustavo. Related to the network and interconnection, we have some items there that are increasing and others that are decreasing.

One that is decreasing is the Vistors that I just mentioned. What is increasing is, for example, the content provides that is related the offers that we launched next year last year, where we put streaming for our customers, we have an increase in this item.

You also have an increase in the network related to the expansion of the 5G.

Hello. Good morning to all.

Thanks for taking our questions. I just wanted to zoom in a bit more on the personal expenses, the tax over the overtime hours.

Was there any retroactive recognition of this gain? I just wanted to understand better this understanding is this something that's going to change going forward?

Did the fourth quarter include changes that were let's say retroactive to previous periods, just to understand the sustainability of these gains over time or how one-off-ish they are? I think that's the first question we have.

The second question is there was an improvement in broadband ARPU. Does this signal a more rational market in your view, or is more TIM-specific effect?

Thank you.

I start I start, Marcelo, with the with the second one, the ARPU dynamics. I think this is as a matter of fact, in our numbers, a bit more our our doing in terms of ARPU expansion.

We optimized throughout 2025 a number of things in order to serve better our customer and increase the efficiency of our operations. As we discussed in previous quarters, one of the things that we did is was to evolve our commercial distribution in a way that is today more pull and less push, and the results of this is beneficial in a number of ways because at the end of the day but at the end of the day, the quality of the customer that we're getting in is better.

This is one driver. Then there is a second benefit that the pull customer the pull channels tend to be less expensive than the push channels.

This is one driver. The other driver is more related to the what we call below-the-marketing activities, whereby we manage our customer base, move it, easy mobile, from one plan to other plan, or when they call to renegotiate.

It's a it's a number of commercial activities related to customer management, and we have been tweaking things in the right direction, and these results, it's a positive effect on the ARPU. It's more our doing than the overall market dynamic, that remains competitive.

Thank you.

Marcelo?

Thank you.

Hi, Marcelo. The impact of the overtime pay is affect past and future, but in the fourth quarter, the entire impact is higher because concentrate the past a few years.

In the future, we'll continue with this impact, but will be a small amount considered the fourth quarter. In my these gains are not that sizable in our overall opex.

Okay? Perfect.

Very clear. Thank you very much.

Hey. Hi, everyone.

Thanks for the opportunity. I have a couple here.

First on tower leases, if you could mention how the negotiations are evolving with lessors. Are you renegotiating terms ahead of maturities or mainly upon renewals?

Also, incentives stepped up in the 4Q. What has driven that, and how should we think about incentive trajectory in upcoming quarters?

Last on tower leases, what is your latest view on lease expenses as a percentage of revenue over the next 2 to 3 years? Can ongoing renegotiations offset incremental 5G and tower needs?

This is the first one. The second on Brazil's tax reform, do you have any early estimates to share with us about the impacts of the effective sales tax from 2027 onwards?

Also, if an increase is expected, how much of that do you believe is passed through to consumers versus absorbed by the company? Thank you so much.

Hi, Rogério. Let's talk about the tower lease.

The tower lease is the in the end, reflects is what the results reflect what we are doing in the past years. We are working very hard in several efficiency levels in the lease.

We this year was a challenge because we have the impact in the increased towers and also impact inflation. Saying that, we delivered an expansion of a margin in EBITDA after lease.

Moving this efficiency continues. We have a lot of agreements doing with the tower co.

We announced one of them a few weeks ago. What we expect about the ration between the lease and revenues is maintains with a slight decreasing, considering that we are continue to expanding our network related to 5G.

Moving to the tax... Andrea,

just a few complements, Rogério, on the tower. When you look at our lease cost, there are a number of things inside, you have the big chunk is clearly the network cost, but there are other elements.

Complementing Andrea's, we finalized the negotiation with American Tower last year. When we look forward and so challenges and objectives for this year, we have another ongoing negotiation that is in our on the table that is quite important, and there is as is part of our plan.

There is, as the network-sharing discussions that are proceeding, where I see that there is the opportunity in the future to do more. These initiatives are part of the overall portfolio besides the buying initiatives that we put together.

When you look at our guidance and what we share with the market is that besides the network deployment that is a pressure on our cost, besides the inflation that is a pressure on our cost, we're going to manage to keep these leases growing at maximum with inflations, and so slower than revenues. When it comes to the share of this cost versus revenues, this is the answer looking forward.

That's what we have been sharing and implementing over the last years, and we plan to do this in 2026 as well. For the tax, I will hand it back to Andrea again.

Regarding to tax reform, what we can say now is 2026 has no impact, and 2027, that's the year that we already put in our guidance, is a neutral in free cash flow.

Okay. Thank you.

Can you share maybe, after all the transition period by 2033 if there is any early estimates on the impact?

Rogério, we didn't announce yet our guidance, we are talking only about the numbers the years that we already announced, and that's 2025 to 2026 2027.

Sure, fair enough. Thank you so much, Alberto and Andrea.

Hi. Good morning, everyone.

Thank you very much for taking my questions, and congrats for the strong results. The first one is just if you could provide more color on the price increases in the first Q, if it's front book, back book, and the magnitude, if possible.

The second question regarding capex. Capex end up a little bit closer to the top of the range, any update in terms of capex demands, requirement, pressure from FX?

It's helpful. Thank you.

Daniel. Let me go to the price increase first, and then we'll hand it over to Andrea for the capex one.

When you look at the more-for-more strategy, just recapping generally what we do, we upgrade our back book prices and front book prices. The back book prices for postpaid is happening as we speak, it's the one that I mentioned in the previous answer, it's underway as it was last year, we're executing it, and the magnitude is fairly similar to the one that we had last year.

Of course, it's not 100% of the customer base. We discussed it happens in a couple of phases throughout the year, but the mechanics and the practice is fairly similar to the one that we executed last year.

We are also discussing internally the front book prices adjustment. In Controle, we executed this June last year, we're planning to follow a similar pattern this year, and we are pretty confident that we can do something on postpaid as well this year.

For the capex, Andrea.

Hi, Daniel. We are on track in capex.

We maintain the capex that we announced in the guidance. The point here is when we see an opportunity to anticipate capex, we have if we generate some efficiency and we have an opportunity to anticipate capex, we are going to, but, again, 2025 was exactly what we expect in the investments.

I don't know if I answer all your question. We also we are always controlling capex with focus in the free cash flow.

I don't know if I answered your...

Yes, yes, very clear. Very clear.

Thank you, Andrea. Alberto, thank you.

Thank you all for joining today's video call. I would like to share a big thanks to the restless effort to our entire team for the great results that we achieved together in 2025.

Now we are [unclear] Ciao a tutti.