TIM S.A. Q1 FY2026 earnings call

• Prioritized execution in early 2026 amid external volatility. • Finalized agreement with V8, close to completing iSystem deal, rolled out mobile offer updates, enhanced B2B approach, consolidated broadband recovery. • Mobile postpaid revenues up 7.5% y-o-y, working on prepaid offers. • 3D strategy driving mobile performance, network upgrades in Brasilia and Belo Horizonte. • Big Brother Brazil sponsorship and MyTeam app part of digital strategy. • B2B contractor revenues up 30% y-o-y, partnership with Axia and acquisition of V8 as strategic steps. • AI program transformative, productivity gains in IT, expanding partnerships with Google and Microsoft.

Service revenue grew 6.5% year-over-year, driven mainly by mobile and supported by fixed. Mobile service revenues grew 5.6%. Postpaid revenues increased 7.5% year-over-year. Broadband revenues up for second consecutive quarter with positive net additions. B2B contractor revenues reached ~1.1 billion reais, 30% year-over-year growth. Mobile: Postpaid is main growth contributor, working on prepaid offers. 3D strategy (by network, by offer, by service) drives performance. Best Network advancing network shops, modernizing sites, benefiting 3 million customers with upgraded 5G. Software: Big Brother Brazil sponsorship supported brand engagement. Service: MyTeam app reached 18.4 million monthly unique users. B2B: Focus on connectivity-led solutions, partnership with Axia for 5G in hydropower plant, acquisition of V8 expands solutions and cross-selling opportunities.

• Continue to strengthen mobile business by improving network quality, evolving offers, enhancing service, expanding ecosystem through partnerships. • Sustain operational improvements in broadband. • Continue scaling B2B capabilities through connectivity, digital solutions, and V8 integrations. • B2B expansion expected to continue at double-digit rate with V8 contribution starting in February included in guidance.

• Interconnection costs have seasonal and provider-related impacts. • Bad debt pressure related to macro environment, expected to continue in second quarter. • Leases have various impacts from renegotiations, including deferred revenue and incentive changes. • Voluntary churn increased due to price up, though expected to phase down. • Uncertainty around outcomes of regulatory matters like Fistel discussion at STF. • Energy costs and inflation volatility with some unpredictability.

Q: About VA tech and B2B growth, inclusion in guidance, and B2B growth outlook.

A: B2B vertical growing double-digit, V8 contribution included in guidance.

Q: Comment on margins, OPEX headwinds.

A: Interconnection has seasonal and provider impacts, bad debt pressure, renegotiation with American Tower has multiple impacts.

Q: Perception of mobile competitive landscape.

A: Competitive landscape constructive, price up in postpaid, considering hybrid plan implementation.

Q: Fiber growth, M&A for fiber.

A: Priority is closing iSystem deal, assessing non-organic opportunities.

Q: AI opportunities, Kickstarter partnership.

A: AI improving productivity, Kickstarter partnership to create value proposition.

Q: Other operating expenses, leases recurrency.

A: Incremental provisions, leases have multiple negotiation and make vs lease approaches.

Q: Customer reaction to price increase, 700 megahertz auction impact.

A: Voluntary churn increased, 700 megahertz frequencies already in use with legal proceedings.

Q: Energy costs, leases inflation caps, D2D in Brazil.

A: Energy plants protect from volatility, leases have inflation rates, D2D niche but cost-benefit to be analyzed.

Q: Higher delinquency impact, deferred revenue.

A: Cautious credit analysis, deferred revenue impacted by ATC renegotiation.

Q: Fistel STF outcome competition.

A: Strong legal case, discussion to take months.