TIM (TIMS3) investor relations material

Executive summary

• Net revenues reached R$6,806 million in 1Q26, up 6.5% year-over-year, driven by growth in mobile, fixed, and broadband services.

• EBITDA after lease grew 7.8% year-over-year, reflecting efficiency, cost management, and a stable margin of 48.3%.

• Operational cash flow increased 16.8% year-over-year, with margin up to 17.2%.

• Strategic partnerships and acquisitions, including V8.Tech and PicPay, expanded digital, B2B, and financial services capabilities.

• AI initiatives delivered productivity gains and are being rolled out across key verticals.

Financial highlights

• Service revenues rose 6.5% year-over-year, with mobile up 5.6% and fixed/Ultrafibra up 11.4%–22.8%.

• B2B contracted revenues reached BRL 1.1 billion, up 30% year-over-year, with strong IoT and vertical solutions momentum.

• EBITDA-AL margin rose to 37.1%, and net income increased 1.3% year-over-year to R$821 million.

• Capex totaled R$1.35 billion (19.9% of net revenue), mainly for network expansion.

• Cash and securities reached R$5,871 million, up 10.2% year-over-year.

Outlook and guidance

• Double-digit B2B growth expected to continue, with V8's contribution included in annual guidance.

• Margin expansion anticipated despite seasonal and macroeconomic pressures.

• Network expansion targets 15 state capitals and ~12 million customers by 2027.

• Shareholder remuneration guidance for 2026 is R$5.3–5.5 billion, reflecting increased returns.

• Long-term strategy focuses on digital transformation, B2B expansion, and ESG leadership.