TIM (TIMS3) investor relations material

Market overview and digital transformation

• Brazil's telecom market is highly dynamic, competitive, and essential for economic and social development, with high internet and smartphone penetration and intensive digital service usage across sectors like education, finance, retail, and health.

• Mobile penetration exceeds 127% with over 270 million accesses and a net service revenue of $17.0 billion in 2025, growing at an 8.3% CAGR from 2022-2025.

• Fixed broadband penetration reached 71% of households, with over 55 million accesses and $14.3 billion in net service revenue in 2025, growing at an 8.9% CAGR from 2022-2025.

Strategic positioning and business evolution

• The company is a leading telecom provider in Brazil, offering mobile, broadband, and digital services, with a focus on innovation and digital transformation.

• Historical evolution includes aggressive growth in voice and data, overcoming regulatory challenges, strategic M&A, and a shift to customer-centric and digital strategies.

• Strategic pillars include mobile leadership, B2B expansion, broadband growth, efficiency, and ESG integration.

Operational and financial performance

• Achieved R$26.6 billion in revenues in 2025 (92% from mobile), with a 51% EBITDA margin and R$6.0 billion in operating cash flow.

• 100% 4G coverage in Brazilian cities and leadership in 5G, recognized for network quality.

• Postpaid segment drives mobile revenue growth, with disciplined cost management and robust cash generation.

• Maintains a resilient financial structure, low leverage (Net Debt/LTM EBITDA at 0.82x), and strong shareholder returns, with R$4.7 billion remuneration and a 12% dividend yield in 2025.